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State Representative Lee Thompson
GEORGIA LEGISLATIVE REPORT
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April 19, 2010
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Dear Constituent,
Tuesday, April 20, will be the 37th legislative day of
the 2010 session of the General Assembly.
Please contact
me with your views on any issue that needs to
be addressed or whenever I can be of service.
Lee Thompson
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New budget continues assault on local school funding
A majority of the House of Representatives voted this
week to approve a $17.8 billion state budget for fiscal
year 2011. I was among the 52 House members
voting against the spending plan because it is a
continuation of the misplaced priorities and fiscal
irresponsibility that have plagued Georgia for the last
eight years.
Public education should always be the state's top
budget priority, but HB 948 proposes to reduce another $527
million in Quality Basic Education formula funding to
local school systems. This brings the total reduction
in public school funding under the Perdue
administration to more than $2.1 billion, hurting our
children and shifting the tax burden from the state
level to local property owners.
During the budget debate on the House floor, I
reminded my colleagues that the state is funding a tax
break on fuel for Delta Air Lines, but no money was
set aside to fulfill a pledge of a 10 percent salary
increase for the state's 2,033 National Board Certified
teachers, a reflection of this administration's poor
budget priorities. HB 948 now goes to the
Senate for its consideration.
Before the budget vote, House leaders maneuvered to
pass a tax increase totaling more than $250 million by
amending the legislation to include two relatively
insignificant tax cuts. HB 1055 was originally a proposal to
increase registration, licensing and user fees on
more than 80 services provided by the state, bringing
in approximately $96 million. The increased costs to
citizens affect a broad range of fees, including civil
court filings, business registrations, specialty car tags
and numerous annual license fees charged by the
Department of Agriculture.
As passed, HB 1055 also includes a 1.45 percent tax
increase on hospitals and their patients, which will
generate approximately $169 million. The
infamous "sick tax" was actually approved earlier in
the session, but differences between the House and
Senate versions led to a compromise under which it
would be rolled into HB 1055.
House leaders attempted to make the measure more
politically palatable with the addition of two minor tax
cuts. One would phase out the state's 0.25-mill
property tax over time, an almost insignificant gesture
considering how much of the tax burden the state has
shifted to local property owners over the past eight
years.
The other tax cut would gradually eliminate the income
tax on retirement income for Georgians 65 and older
between now and 2016. Because retirement income
of up to $35,000 for individuals and $70,000 for
couples is already exempt, this action would actually
help only the wealthiest retirees in the state.
The likely impact of these two tax cuts is to
cost taxpayers more in increased county property
taxes than they receive from the cuts themselves.
Cutting state funding for local government and for our
schools tends to have costly unintended
consequences.
There is an additional concern over whether the
legislation is even legal because it combines tax code
changes with fee increases. Sadly, those in power
have chosen once again to balance the state budget
on those already suffering: sick hospital patients,
underfunded public schools and overburdened
property tax payers.
GEFA Loan Sell-Off: Also this week, a slim
majority of House members voted to approve an
amended version of HB 244, which includes the governor's
proposal to sell a portion of the Georgia
Environmental Facilities Authority (GEFA) loans on
Wall Street in order to raise some $290 million to help
balance the budget. Because these loans are valued
at $676 million, it makes no sense to sell off these
assets at less than 50 cents on the dollar for a one-
time budget fix. GEFA loans are made by the state to
local governments at low interest rates to finance
infrastructure projects across the state. Selling off this
revolving revenue source will likely destroy the
program, ruin Georgia's AAA bond rating and force
more expensive borrowing by local governments.
In other action this week, the House approved the
following legislation:
HB 194, which as amended would require
a
pharmacist who substitutes a generic drug for a
brand-name prescription to include on the
prescription label that the substitution has occurred.
SB 355, which addresses the issue of
who has the right to handle the disposition of the body
of a deceased U.S. service member, utilizing a form
that allows service members to designate an
authorized person to handle their bodies in the event
of their death.
SB 374, which would create the
Legislative Economic Development Council to
evaluate the state's overall economic development
strategy, including tax breaks aimed at job creation,
and report its findings to the governor and legislature.
SB 397, which would create a "Blue Alert"
system to assist in the apprehension of violent
criminals who have killed or seriously injured a law
enforcement officer.
HB 903, which would extend Atlanta's
hotel-motel tax to generate funding for a new domed
stadium or renovation of the Georgia Dome to keep
the Atlanta Falcons in downtown Atlanta.
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Arts Council funding needs to be restored
There are many victims of Georgia's budget problems,
one of which at this stage is the Georgia Council for
the Arts. If the state budget for fiscal year 2011 as
passed by the House of Representatives remains
intact, Georgia will be the only state in the U.S. without
a statewide arts agency.
The only arts funding of any sort left in the budget is
$250,000 in grants that would be transferred to the
Georgia Department of Community Affairs to distribute
to arts programs around the state. This is one of the
reasons I voted against the House budget.
The elimination of the Arts Council would have many
negative long-term effects. The nonprofit arts industry
generates $166.2 billion in economic activity across
the country every year. Spending by arts organizations
and their audiences totaled $274.8 million in the
Atlanta area during the 2005 fiscal year.
It's hard to say exactly how much of the economic
benefits of having a thriving arts scene - or an arts
scene of any sort - might be lost across the state, but
there will certainly be a negative impact. Eliminating
the state's arts agency would certainly impact larger
economic development by sending conflicting
messages about the quality of life that a business
could expect for its employees here.
It's one thing to cut spending on arts, but completely
eliminating the state's arts agency is short-sighted
and unacceptable. Hopefully, funding for the Arts
Council can be restored in the Senate version of the
budget and remain there when the final budget
legislation is approved at the end of the session.
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Lee's Legislation
Click here to review
2009-2010 legislation sponsored or co-sponsored by
Rep.
Lee Thompson.
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