State Revenue Numbers Continue to Plummet

Friday, July 24, 2009

Brock Clay Weekly Report

State Revenue Numbers Continue to Plummet

Last Friday, Governor Sonny Perdue announced Georgia's revenue figures in the month of June, and they weren't positive. Net collections for the month of June were $1,364,350,000, or 15.7 percent less than June's collections a year ago. Total collections for FY2009 are 10.5 percent less than FY2008.

Congratulations to Donna Sheldon, Jeff May, and Allen Peake

Last week, the Georgia House Republican Caucus elected Rep. Donna Sheldon (R - Duluth) as Caucus Chair, Rep. Jeff May (R - Marietta) as Caucus Vice Chair, and Rep. Allen Peake (R - Macon) as Caucus Treasurer.

Governor Perdue Cuts Funds to Schools and Furloughs Teachers

This week Governor Sonny Perdue announced plans to furlough the state’s public school teachers for three days. While not legally allowed to actually furlough teachers since they are contracted with each individual school system, the governor will deduct the amount it would cost to furlough teachers for three days from each system’s state allotment of education funds. School systems will be able decide whether to go ahead and furlough teachers, or whether to make cuts somewhere else.

Gwinnett and Forsyth County school systems have already announced they will furlough teachers during three scheduled planning days. The Cobb County School District has said they will not furlough teachers. Instead, Cobb will make up for the loss of state funds by using reserves to pay their teachers.

The State Board of Education has also called a meeting for this coming Monday to discuss issues school systems will face regarding this announcement.

Phoebe Putney Documentary

In 2003, a controversy began to swirl around Albany's Phoebe Putney Health System . It just so happens that Phoebe Putney is South Georgia's largest hospital, and a local surgeon and a local accountant began to distribute information about the system that the two felt was contrary to their mission and legal structure. Phoebe Putney immediately filed a civil suit against the two whistle blowers, and criminal charges of harassment, and burglary soon followed. The two have now become the object of a short film called "Do No Harm," filmed by a crew from Chicago, and their story became the basis for a series of lawsuits filed across the country. The criminal charges were later dropped as was the suit by Phoebe Putney, and a counter suit by the "Albany Two" was settled out of court.

Interestingly, the film was set to debut a screening in Atlanta last week. But GeorgiaWatch, the group sponsoring the showing, received a cease-and-desist order from Phoebe Putney, alleging that certain terms used in the promotion of the event were objectionable. Rebecca Schanburg, the producer of the film, also received a cease-and-desist order from Albany's NBC affiliate, WALB-TV on the basis that the film contains clips of WALB's reporters that had not be approved.

South Georgia RDCs Merge

Effective July 1, two of the largest Regional Development Centers in Georgia combined. The nine-county South Georgia RDC (headquartered in Valdosta) and the nine-county Southeast Georgia RDC (headquartered in Waycross) combined to form a new 18-county region called the Southern Georgia Regional Commission. The 59 member governing board of the RDC appointed John Leonard as the executive director. The merge took place under the new rules established by House Bill 1216, which was passed by the General Assembly in 2008.

State Lawmakers Accept Pay Cut

Last week, Lt. Governor Casey Cagle and House Speaker Glenn Richardson (R - Dallas) announced that they, along with the members of the State House and State Senate, would take one day pay cut each month for at least the next year. Both legislative leaders agreed that in the midst of severe budget cuts across the state, it was only fitting for the General Assembly to bear part of the financial burden. The average annual pay for a Georgia legislator is $17,000.

Notes from July Georgia Department of Transportation Board Meeting

On Thursday, July 16, the Georgia Department of Transportation held it's July Board meeting. The meeting took place at GDOT's office in Atlanta, and was the first meeting of the Board since former state representative Vance Smith, Jr. was installed as Commissioner. The following actions took place:

- The Board recognized the work of Gerald Ross, who served as interim commissioner for several months between Gena Evans and the current Commissioner, Vance Smith Jr. The Board unanimously approved a resolution of recognition for Ross' contributions.

- Commissioner Vance Smith announced that Gerald Ross would retain his position as Chief Engineer and be appointed Deputy Commissioner. Commissioner Smith also announced that Sandra Burgess would be promoted to Chief Counsel for GDOT. During his presentation to the Board, Commissioner Smith updated the Board of motor fuel revenues for FY2009, which were down 13 percent. He also said that GDOT currently retains 5,336 employees.

- The Finance Committee reported that within two weeks, GDOT should close out their books for FY2009. The final budget numbers should be in full compliance. Projected numbers for 2010 motor fuel revenues are approximately $913 million. GDOT intends to continue with its current furloughs and hiring freeze, which will save approximately $9.8 million a year.

- Newly appointed Chief Counsel Sandra Burgess reported a successful meeting between GDOT's representatives and the Attorney General's office. The Attorney General's office has worked towards affirming an opinion rendered in 2001 holding that GDOT can legally operate their budget on an accrual method. Discussions with the Attorney General's office will continue until all of the final details are worked out.

- The August letting includes 31 projects totaling approximately $99.9 million. Sixteen of the projects will be funded through the American Recovery and Reinvestment Act. One project is a local letting, and the remaining 30 are GDOT lettings. The complete project letting presentation can be found on the GDOT website.

Michael Thurmond offered United States Department of Labor Post

Last week, rumors began flying around the Georgia political scene that Georgia's Labor Commissioner Michael Thurmond had been offered a position within the Obama administration. Ostensibly, that position would be somewhere within the United States Department of Labor. This makes Georgia's 2010 election politics interesting because Thurmond had been the object of much speculation as a potential Democratic candidate to challenge Lt. Governor Casey Cagle.

Disclosure Numbers in for Georgia's 9th

This week, Congressional candidates in Georgia filed their first campaign disclosure reports. In Georgia's 9th Congressional District (an open seat being vacated by Republican Congressman Nathan Deal, who is running for Governor), three candidates announced their opening numbers: Mike Evans leads the field with $150,000, Rep. Tom Graves came in second with $116,000, and former state Senator Bill Stephens came in a distant third with $40,000.

Georgia Loses in Water Ruling

Last week, United States District Court Judge Paul Magnussen issued a ruling that placed the decision over the "Tri - State Water Wars" in the hands of Congress. Georgia has spent the last several years in a court battle with Florida and Alabama over rights to access a massive federal reservoir. The ruling established that Atlanta area municipalities must cease withdrawing water from that reservoir within three years unless they could obtain approval from Congress. Of course, officials in Alabama and Florida hailed the ruling, despite the fact that Judge Magnussen himself admitted that his decision was "draconian" in nature. Georgia's Governor Sonny Perdue issued a statement affirming his intention for Georgia to appeal the decision, work with Congress, and pursue an agreeable arrangement between the three states involved before the three year timeline is up.

Rep. Ed Rynders (R - Albany) Appointed Chair of Planning Director Confirmation Hearings

The 2009 Legislative session brought to Georgia numerous changes in transportation law, policy, and politics, not the least interesting of which came in the form of Senate Bill 200. As we've previously discussed, Senate Bill 200 began as an effort to completely strip the Georgia Department of Transportation Board of their myriad powers and responsibilities. When Governor Sonny Perdue finally signed the legislation into law, it was far less sweeping. Among other changes, the legislation left in question who was in control of Georgia's public private partnerships (now known as P3) and established within GDOT the position of Planning Director. Shortly after former Rep. Vance Smith, Jr. became Georgia's newest GDOT commissioner, Governor Sonny Perdue appointed Todd Long to the new post of Planning Director. Interestingly enough, however, the law provided that the Governor's appointee MUST be confirmed by the Transportation Committee of the Georgia House of Representatives (chaired in the 2009 session by former Rep. Smith and now chaired by Speaker Richardson's ally Jay Roberts (R - Camilla). The Senate has no say in this process. Ironically, this particular provision was slipped in by lawmakers in an attempt to kill the legislation. However, the legislation passed, the Governor has appointed a Planning Director, and now, Transportation Chair Jay Roberts (R - Camilla) has appointed Rep. Ed Rynders (R - Albany) to chair the confirmation hearing in the House Transportation Committee. Rynders has established a reputation as a tough questioner, a strong proponent of Georgia's rural interests, and made it very clear in his press release he intends to make sure that Long will approach transportation from a "statewide perspective...and create a seamless transportation system throughout Georgia."

The hearings are set to take place in August and promise to be nothing less than fascinating.

Governor Sonny Perdue Approves Water, Sewer Infrastructure Projects

On Tuesday, Governor Sonny Perdue and the Georgia Environmental Finance Authority announced the funding of 26 environmental infrastructure projects totaling $43.1 million. Twenty three of the projects were either totally or partially funded by the American Recovery and Reinvestment Act ($39 million). The water and sewer infrastructure projects will take place in 24 communities around Georgia including Blairesville, Byron, Commerce, Hinesville, Jefferson, LaGrange, Gwinnett County, Milledgeville, and Toccoa. The complete list of loans can be found on the Governor's website.

Know Your Lawmakers

Rep. Tom Graves (R - Ranger) has served in the Georgia House of Representatives since 2003, and represents parts of Bartow, Gordon, and Pickens counties. Tom was born in St. Petersburg, Florida, but recieved his B.B.A. in Finance from the University of Georgia. He's a devoted Bulldogs fan who enjoys listening to music, watching Lonesome Dove, and spending time with his family on their farm in Ranger, Georgia. They enjoy a variety of outdoor activities including fishing, camping, and riding horses.

Rep. Graves works in the multi - family housing industry and serves on the House Health and Human Services, Transportation, and Ways and Means committees. He currently serves as the Vice - Chairman of the House Motor Vehicles committee. In the past, he has served as Chief Deputy Whip and as a House Hawk. He's a member of the Gordon County Board of Elections and an active member of his local Chamber of Commerce. In 2009, he was named Legislator of the Year by the American Legislative Exchange Council. In 2008, the Georgia Municipal Association named him "Champion of Cities."

Rep. Graves places alot of value on honesty and integrity in one's political dealings, and he says one of his biggest pet peeves is a lobbyist who will say "I'm philosophically opposed to this bill, but I'm advocating against what I believe because that's what my client is paying me to do..." His favorite quote comes from Joshua 1:9, "Be strong and of good courage; be not afraid, neither be dismayed, for the Lord your God is with you wherever you go."

One of Rep. Graves favorite memories in the House involves Rep. Michael Harden, who, when he took to the well for his first time, deftly attempted to sidestep the traditional "roasting" that is awarded to freshmen during their first trip to the well. When Harden was asked if this was "his first trip to the well," he quickly responded "No. The first time was when my mother made me get my picture made here the first day."

Rep. Graves is currently running to replace Congressman Nathan Deal in Georgia's 9th Congressional District.

In Other News

Stuart Cink, a graduate of Georgia Institute of Technology, won his first major tournament victory in a four hole playoff victory against Tom Watson in the 138th British Open.

On July 19, after 113 remarkable years, World War I veteran Henry Allingham passed away at his home in Ovingdean, England. Mr. Allingham had just become the world's oldest man, and was the last surviving member of the Royal Naval Air Service. He is survived by five grandchildren, 12 great grandchildren, 14 great-great grandchildren, and one great-great-great grandchild.

The Iowa State Fair, known for it's annual butter cow, recently announced that they would also display a sculpture of pop king Michael Jackson at this year's event. In a stroke of brilliance, People for the Ethical Treatment of Animals has come forward suggesting that a non-dairy buttery spread called "Earth Balance" be used for the Jackson memorial.

Today in History

July 24, 1567: Mary Queen of Scots is deposed and replaced by her one year old son, James VI.

July 24, 1701: Detroit, Michigan begins as a trading post founded by Antoine de la Mothe Cadillac.

July 24, 1823: Slavery is abolished in Chile.

July 24, 1847: Brigham Young leads a group of 148 people to the end of a 17 month journey into the Salt Lake Valley, leading to the establishment of Salt Lake City.

July 24, 1866: Tennessee becomes the first state re-admitted to the Union after the Civil War.

July 24, 1950: Cape Canaveral Air Force Station begins operations.

July 24, 1983: George Brett's walk off homerun against the Yankees is nullified in the "Pine Tar Incident."

July 24, 2005: Lance Armstrong wins his seventh consecutive Tour de France.

Have a great weekend,

SM