WEEKLY LEGISLATIVE REPORT—March 21, 2008
House approves $21 billion state budget for FY 2009
By Rep. Hugh Floyd
The House of Representatives voted Thursday to approve a $21.2 billion annual state budget for fiscal year 2009, which begins July 1. The total spending plan reflects a reduction of about $245 million from Gov. Sonny Perdue’s original proposal due to lower revenues caused by the state’s recent economic downturn.
As sent to the Senate, HB 990 would restore $90 million of the $141.5 million the governor proposed to cut from funding to local school systems. House members are reacting to the results of approximately $1.5 billion in such cuts over the past six years, which have forced local school boards to cut needed education programs or raise local property taxes, or both. The House version also preserves 2.5 percent pay raises for state teachers and employees, which the governor had wanted to reduce to 2 percent.
The plan includes $50 million for the construction of drinking water reservoirs, $15 million for Georgia’s airports, $10 million to fully fund equalization grants that go to low-income schools throughout the state, $7.3 million for charter schools, $2.9 million for salary increases for law enforcement officers in the Department of Natural Resources and $1 million for the Meals on Wheels program.
Earlier in the day, House members agreed to final changes to the midyear supplemental budget for the remainder of fiscal year 2008, which ends June 30. The $330 million adjustment includes $53 million for much-needed trauma care funding, $210 million for new school construction, $40 million for reservoirs and $2.7 million for the state’s indigent defense system. School equalization grant funding of $20 million is also restored.
The Senate also agreed to the final version of HB 989, immediately transmitting the supplemental budget to the governor, who signed it into law the next day.
The issue of tax relief continues to dominate attention at the State Capitol, but with only six days remaining in the 2008 session, there is growing skepticism over whether the House and Senate can agree on a single tax-cut method. On March 11, House members approved HR 1246, which would eliminate all ad valorem taxes on automobiles, after Speaker Glenn Richardson removed provisions that took local revenue control away from local governments.
However, the Senate Finance Committee has rejected that plan and is instead moving forward on a proposed 10 percent reduction in state income tax rates over the next five years. The governor, meanwhile, has announced his opposition to both proposals for tax relief for Georgians this session. Whether the car tax is eliminated or the income tax is cut will likely depend on conference committee negotiations at the very end of the session.
The House also approved SB 359, which would create a “Made in Georgia” program, to be administered through the Department of Economic Development, for promoting the sale of products manufactured in our state.
If the governor signs the bill into law, Georgia manufacturers can give their products the “Made in Georgia” stamp of certification as soon as possible. This initiative was approved 161-1 in the House and is supported by numerous business and labor organizations that see the benefit of promoting Georgia-made products.
In other action this week, House members voted 99-68 to approve legislation that would stiffen the penalties for driving without a license. Under SB 350, a person driving without a valid license could face from two days to 12 months in jail and pay a fine of $500 to $1,000. A fourth offense of driving without a license would be classified as a felony.
- Rep. Hugh Floyd (D-Norcross) represents the 99th District (Gwinnett County) in the Georgia House of Representatives. Contact him at 611 Coverdell Office Building, Atlanta, GA 30334; by phone at 404-656-0314 or by e-mail at hughfloyd@mindspring.com.
