In this issue...
  • New budget continues assault on local school funding
  • Arts Council funding needs to be restored
  • Lee's Legislation

  • State Representative Lee Thompson
    GEORGIA LEGISLATIVE REPORT
    April 19, 2010

    Rep. Lee Thompson 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

    State Capitol 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.


    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.


    Lee's Legislation

    Click here to review 2009-2010 legislation sponsored or co-sponsored by Rep. Lee Thompson.

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  • Representative Lee Thompson
    Representative Lee Thompson represents the 104th District (Gwinnett County) in the Georgia House of Representatives. Contact him at 511 Coverdell Office Building, Atlanta, Ga. 30334; by phone at 404-656-6372; or by e-mail at lee.thompson@house.ga.gov.
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    Rep. Lee Thompson | 511 Coverdell Office Building | Atlanta | GA | 30334