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Governor Sonny Perdue Releases April Revenue Numbers
Last week, Governor Sonny Perdue released April's revenue numbers, showing a slight decline from March's numbers, which showed the first positive gain in state revenue numbers in more than a year. April's number dropped 4.2% over a year ago to $1.34 billion. The positive news is that sales tax revenues are up 12% ($450.6 million), corporate income taxes are up 13.9% ($91.6 million), motor fuel revenues are up 29.9% ($80.4 million), and individual income tax collections are down 16.4% ($657 million). Year-to-date collections are down 10.7% to $11.6 billion.
Governor Sonny Perdue Signs Legislation
This week, Governor Sonny Perdue signed a controversial piece of legislation that includes a tax on hospitals, eliminates taxes on retirement income on seniors, and eliminates the state's portion of property taxes. HB 1055 established a 1.45% tax on hospitals that allows the state to draw down enough federal matching Medicaid dollars to fill the gaping hole in the state's healthcare budget. The two tax cuts will be in full effect in 2017, and will ultimately result in $400 million in tax cuts to Georgians.
Governor Sonny Perdue Appoints Counsel
This week, Governor Sonny Perdue appointed a special counsel to sue President Barack Obama's Justice Department to gain approval for Georgia's newest voting integrity procedures. Recently, Georgia enacted a law that requires an individual's citizenship to be verified before that individual is allowed to register to vote. After Attorney General Thurbert Baker refused to pursue the case at the request of Secretary of State Brian Kemp, Perdue appointed Anne Lewis of Strickland Brockington & Lewis LLP, a veteran of numerous election law cases, to pursue the effort on behalf of the State of Georgia. After a similar process, Perdue also recently appointed a special counsel to sue the Obama administration over the recently passed healthcare overhaul. Kemp defended the action, stating clearly that Georgia is required to verify citizenship in order to comply with the federal Help America Vote Act.
Perdue also appointed Lewis's partner Frank Strickland and associate Bryan Tyson as special attorney generals.
Rep. Kevin Levitas Won't Run for Re-election
After qualifying closed, popular DeKalb County Democrat Kevin Levitas (House District 82) announced that he would not seek re-election to the Georgia State House of Representatives. Levitas, a popular Democrat who had demonstrated leadership on issues dealing with transportation, and MARTA in particular, was a two-term legislator who apparently changed his mind after qualifying, referencing a wealth of talent in his district. He expressed confidence that a capable replacement would be selected.
Scott Holcomb, a 2006 Democratic candidate for Secretary of State, was the only person to qualify when the Democratic primary was re-opened.
Allan Williamson, a member of the Georgia Young Republicans, has stated his intentions to run for the office as an Independent.
State School Superintendent Kathy Cox Resigns Office
This week, Georgia's State School Superintendent Kathy Cox, a Republican that was elected with Governor Sonny Perdue in 2002, announced that she would resign her office in order to become the founding CEO of the U.S. Education Delivery Institute. Her resignation is effective on July 1. As required by the Georgia Constitution, Governor Sonny Perdue will appoint a new superintendent to fulfill her term. The Education Delivery Institute is a Washington, D.C.-based think tank.
Grady Hospital Finally Turns a Profit
Last week, Grady Hospital's CEO Michael Young told reporters at the Atlanta Journal-Constitution that a 2009 audit showed the previously struggling medical center at approximately $34 million in the black. Young noted, however, that part of that money came from one-time cash infusions. The audit, conducted by KPMG, showed that the $740 million organization spent $10 million less than they brought in. Grady serves a population that is dominated by those who are indigent, and two years ago, was carrying a $50 million operating deficit. Young indicated that part of the surplus would be used to provide pay raises for Grady employees, who haven't received a pay increase in more than three years.
Tom Price Changes Endorsement in Governor's Race
Things got a little interesting last week when Congressman Tom Price, an extremely popular Republican from Roswell, changed his endorsement in the gubernatorial race. Previously, Price, a physician, had placed his name behind fellow Congressman Nathan Deal. Since that time, however, Deal's campaign has experienced several image setbacks, while former Secretary of State Karen Handel has continued to rise in the polls. Price cited her rise in the polls, as well as her demonstration of leadership and courage in business and politics, as his reason for switching his endorsement.
Former State Senator John Douglas Earns First Major Endorsement in PSC Race
In the race to replace Bobby Baker, the outgoing Public Service Commissioner, John Douglas, the former chairman of the Senate Veterans and Military Affairs Committee, has earned the first major endorsement of the race. Former Congressman Mac Collins acknowledged Douglas' leadership and conservative approach to protecting consumers in the state Senate, and expressed his confidence that Douglas would continue that same leadership at the Public Service Commission. Douglas is facing a primary race against former State Representative Jeff May, former State Senator Joey Brush and Tim Echols , a former John Oxendine political staffer and founder of TeenPact.
Judge Rules Charter Schools Constitutional
Last week, Fulton County Superior Court Judge Wendy Shoop ruled that charter schools in Georgia can be legally approved by a state commission. After nearly three hours of oral arguments, Judge Shoop ruled against seven school systems that sued that state. The systems alleged that the state Charter Schools Commission had overstepped its bounds in approving and funding charter schools that had been previously rejected by local governments. Mike Bowers, attorney for Gwinnett County Schools, said that while he hadn't been instructed to do so, his instinct is to appeal the decision.
Report from May Meeting of the Georgia Transportation Board
Yesterday, the Board of the Georgia Department of Transportation (GDOT) conducted their regularly scheduled monthly board meeting. The meeting opened with a project update on the conversion of Interstate 85's HOV (high occupancy vehicles) lanes to high occupancy toll (HOT) lanes. Genetha Rice-Singleton then presented the Board with a project letting update. Year-to-date, GDOT has let a total of 287 projects with a total worth of $839 million. The April letting included a total of 448 projects, seven of which were GDOT let, two of which were local let, and 439 of which were state aid projects. Of those projects, 401 were awarded for a total value of $91 million.
The June letting includes 43 projects, only one of which is funded with funds from the American Recovery and Reinvestment Act (ARRA). The remaining 42 projects are regular program lettings. The vast majority of the projects approved by the Board are resurfacing, repair, bike path and other miscellaneous road improvements. The total letting is valued at $116 million -- $587,000 of which were ARRA funds. Twenty nine (29) of those projects were GDOT let (28 total proposed contracts), 13 were local let, and one was let through the Georgia State Finance and Investment Commission (GISFIC). The project letting was approved unanimously, with the exception of the project involving conversion of Interstate 85's HOV lanes to HOT lanes. The Board will re-examine the Interstate 85 HOT lane project next month with an updated memorandum of understanding on the project.
Board member David Doss provided the Board with an update on Georgia's largest P3 project, the West by Northwest Project, which "proposes adding reversible managed lanes to portions of Interstates 75 and 575. It will include the addition of approximately 18 miles of new lanes along Interstate 75 (from Akers Mill Road to just north of Hickory Grove Road) and approximately 11 miles along Interstate 575 (from I-75 to Sixes Road). Two new managed lanes are proposed along the West side of Interstate 75 on the stretch running between Interstates 285 and 575. A single reversible lane is proposed along both Interstates 75 and 575 north of the I-75/I-575 interchange."
This project is currently proceeding through the environmental process, even as the GDOT Board, P3 steering committee and alternative finance department at GDOT go through the process of selecting a team to build the project. Three teams met the statement of qualifications, as approved by the P3 steering committee on May 18. The teams include:
• Northwest Atlanta Development Group (C.W. Matthews Contracting, Inc. / ACS / Dragados USA, Inc. / PBS&J)
• Georgia Mobility Partners (Grupo Soares de Costa S.G.P.A, S.A. / Cintra / MINA USA, LLC / Ferrovial Agroman / Prince Contracting / AECOM Technical Services)
• West by Northwest Development Partners (VINCI - OHL / Hubbard Construction Company / Archer Western / Parsons Transportation Group)
The alternative finance committee will make a short list recommendation to the P3 steering committee on May 27, and it will be announced on June 1.
GDOT Commissioner Vance Smith presented a brief report. For FY 2010, motor fuel tax collections are currently 4.2% below budget at $678 million, a decrease of 10.2% over last year. However, last month's collections were significantly higher, the first month of more than $80 million in motor fuel collections since June 2009. Since last June, GDOT has lost 309 employees, or 6%, and had a total of 5,022 employees on April 30. Finally, Commissioner Smith reported that Georgia's "511" program is experiencing excellent usage, receiving an average of 5,600 calls per month.
This Date in History
May 21, 996: Otto III, at 16 years old, is crowned Holy Roman Emporer.
May 21, 1851: Slavery is abolished in Colombia, South America.
May 21, 1881: Clara Barton establishes the American Red Cross.
May 21, 1917: The Great Atlanta Fire of 1917 is ignited.
May 21, 1927: Charles Lindburg completes the world's first solo, non-stop flight across the Atlantic Ocean.
May 21, 1990: The Republic of Yemen and North Yemen formally agree to become one nation, Yemen.
Have a great weekend!
SM
There are no simple solutions to working with the public or government. At Brock Clay, we integrate our services across lobbying, grassroots and public relations in order to create comprehensive solutions to complex problems. Whether we need to set up a town hall meeting, start a letter-writing campaign, work the halls of the Capitol or create a press release, we will find the right way to meet the challenge. As Harry Truman said, “It is amazing what you can accomplish if you do not care who gets the credit.”
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