Brock Clay Capitol Report, Week 2

The General Assembly recessed for the entire week of January 19 - 23. Monday, January 19, was spent honoring the life and legacy of Dr. Martin Luther King, Jr.

After lunch on Wednesday, January 21, the General Assembly began it's work again with Governor Sonny Perdue addressing a joint gathering of the House and Senate Appropriations Committees as they gathered for three days of budget hearings. Governor Perdue warned, in no uncertain terms, that he had trimmed the budget almost to a breaking point, and that none of the traditional bargaining games would be tolerated. He stressed his regret at having to take steps as drastic as those he is proposing, but clearly feels he has no other option. Probably the most controversial of these proposals is the elimination of the Homeowners Tax Relief Grant (HTRG). This popular provision was created during the Roy Barnes' administration and saves the average homeowner in Georgia $200 - $300 per year. House and Senate budget crafters must also address proposals included in the Governor's budget to raise the state's tobacco sales tax by one dollar and a 1.6% tax increase on hospitals and HMOs. The latter continues to be vigorously opposed by both the Georgia Hospital Association and the Georgia Association of Health Plans. Americans for Prosperity and Americans for Tax Reform, two highly influential citizens' advocacy groups, are also opposing the increases. Actual budget documents from Governor Perdue's proposals can be accessed here.

These budget crises become somewhat more glaring in light of numerous proposals to reform both the budget and Georgia's property tax system. Senator David Shafer has introduced legislation to reform the process of continuation budgeting, and Senate Majority Leader Chip Rogers (R - Woodstock) has introduced a provision changing the manner in which the Supplemental Budget can be spent. Rep. Ed Lindsey has introduced H.R. 1, a proposal to freeze the current valuation of certain residential and nonresidential real property.

The fight to adequately fund Georgia's trauma care network continues. There are already three proposals to address this issue: a cell phone fee being proposed by Rep. Harry Geisinger (R – Roswell); a $10 add-on to car tags by Rep. Austin Scott (R – Tifton); and a proposal to divert the state's .25 mil of the property tax for trauma care by Rep. Fran Millar (R – Dunwoody). While it is still uncertain which proposal will prevail, the issue has strong advocates in both chambers with Speaker Richardson in the house and Chairman Sen. Cecil Staton (R - Macon) in the Senate.
The Get Georgia Moving Coalition has continued its efforts to ensure the passage of an adequate transportation funding package to address Georgia's current transportation infrastructure problems. Governor Sonny Perdue has made it clear that he intends to push a legislative package that restructures and improves the governance of the Georgia Department of Transportation. There have been a plethora of bills and concepts introduced that would radically alter the way Georgia's transportation system is currently governed. These proposals include moving the election of the Board of GDOT from positions elected by the General Assembly to positions appointed by the Governor, Lt. Governor, and Speaker of the House; and more recently, rumors that the Governor intends to roll MARTA into some other state managed transportation agency. This type of reform is rumored to be the price the Governor has placed on his support of any sort of transportation funding bill, and some speculate the "state managed transportation agency" in question may be GRTA. Stay tuned and keep in mind that any sort of constitutionally provided transportation funding cannot be voted on until the 2010 election, so that gives the General Assembly two years to accomplish such a goal.

Last week, Senator Jeff Mullis introduced both Senate Bill 39 and Senate Resolution 44. Senate Resolution 44 established a constitutional referendum to establish a TSPLOST and Senate Bill 39 is the accompanying legislation. The Senate Transportation Committee is scheduled to meet the afternoon of Monday, January 26th, the first day back from the budget recess. It is likely that the Senate Committee will consider this legislation before the end of next week. In the meantime, Chairman Vance Smith is preparing a piece of legislation that will present a constitutional amendment on a statewide model. His legislation is also expected to include a list of specific projects and programs that will be funded by the statewide SPLOST.

Through all of these developments, the Get Georgia Moving Coalition continues their posture of positive support for the funding efforts taking place on both sides of the Legislature. It is extremely encouraging to see positive movement this early in the legislative session on this important issue.

The powerful Georgia Food Industry Association has renewed it's fight, along with Senator Seth Harp (R – Midland), to give Georgians the choice of whether or not each county should allow the retail sale of alcohol on Sundays. In an interesting political twist, Lt. Governor Casey Cagle, who had previously expressed opposition to the concept, has said that he would allow the bill to come to the Senate Floor for debate. Rep. Roger Williams (R – Dalton) chairman of the House Regulated Industries Committee, has voiced his intention to introduce a companion bill in the House. While the Governor continues to voice his opposition in the form of a veto threat, there seems to be a bit less general opposition to the concept.

One new issue that has surfaced at the State level this week relates to a major fight brewing in Congress over whether or not trade unions are required to conduct their elections through secret ballots. Commonly referred to as the "card check" bill, the proposed Employee Free Choice Act, introduced in Congress in 2005 and again in 2007, the National Labor Relations Board would recognize a union's role as the official bargaining representative if a majority of employees have authorized that representation via card check without requiring a secret ballot election. Many conservatives and most, if not all, pro - business advocates adamantly oppose the Employee Free Choice Act. To that end, Rep. John Lunsford and Senator Eric Johnson will be introducing companion constitutional amendments in Georgia to guarantee the right of votes by secret ballots in all circumstances including "elections for public office or public votes on initiatives or referenda, or designations or authorizations of employee representation..." (taken from www.sosballot.com). This promises to be an interesting issue, if only because proponents of such a constitutional amendment will have to figure out how to do this in such a way that the state law is not preempted by any federal laws that may pass. Should that happen, however, those carrying this legislation would find themselves quite popular in the business community.

In conclusion, rumors continue to swirl that regardless of their respective stances on transportation, taxes, trauma funding, and labor laws, the major leaders of the Georgia General Assembly and executive branch agree on one thing: it costs the state roughly $65,000 each day that the Legislature is in session. In today's economy and budget crisis, a quick legislative session is in the best interest of everyone involved. Some hope that the legislature will Sine Die by mid - March, a rumor that causes those of a more realistic mindset to hope we may leave Atlanta by April 1.


Seth Millican, Brock Clay GPA