2010 Legislative Session, Week 5

Different Pace in 2010

The buzz in the halls of the Capitol this week began to change as new and veteran lobbyists, staffers and legislators alike began to compare notes as the 2010 legislative session nears the halfway mark. The general consensus among many was that the pace of this session is different than the most recent sessions. Most view this difference as a definite improvement, as bills and issues seem to be advancing on a far steadier and more measured pace.

State Revenue Numbers...Still Down

On Tuesday, Governor Sonny Perdue released Georgia's revenue numbers for the month of January 2010. The only good news is that the negative numbers were no longer in the double digits. Revenues were down a total of $1.4 million from a year ago, a decrease of 8.7%. The percentage decrease year to date FY2010 over FY2009 is 12.9%.

Transportation 1.0

Before we update you on where the transportation issue stands this week, we'd like to provide you a brief, three-year recap for your reading pleasure:

2007

The Joint Transportation Improvement Study Committee met during the Fall of 2007 and came up with one conclusion: gas tax revenues are rapidly shrinking, and Georgia is already second to last in the nation in per capita spending on transportation. If Georgia's economic development is to stay competitive, a source of supplemental transportation funding must be created.

2008

The Georgia General Assembly was unable to come to a consensus on a T-SPLOST proposal that would create a regional transportation plan across the state. The House passed the bill, but the legislation failed by three votes in the Senate with literally 5 minutes left on the clock. At the same time, the Georgia Department of Transportation (GDOT) Board entered a period of turmoil with Gena Evans as the GDOT Commissioner, sparking strained relations between GDOT and the General Assembly.

2009

The House and Senate came out with competing transportation funding proposals. The House pushed a statewide plan that would institute a statewide one cent sales tax to fund a specific list of transportation projects. The Senate's proposal was a far more segmented proposal, focusing on a regional arrangement with project lists developed by each region, with a strong focus on local control and with explicit opt-out provisions. The two bodies are unable to come to a consensus with both sides walking away from a conference committee report on the last night of the session.

At the same time, the House, Senate, Governor Perdue, and the GDOT Board continued strained relations over the governor's proposed Senate Bill 200. Greatly modified from its original form, Senate Bill 200 restructured the P(3) process and created the position of Director of Planning at GDOT (a position appointed by the governor and approved by the House Transportation Committee). Shortly after the conclusion of the legislative session, House Transportation Chairman Vance Smith was appointed the Commissioner of GDOT. That position had been vacated during the legislative session when the GDOT Board voted to fire Gena Evans.

2010

Two weeks ago, the GDOT Board voted to require the Department of Transportation to change their accounting methods from a cash to accrual basis. This decision prompted vociferous backlash from both Governor Sonny Perdue and the General Assembly, prompting the Board to rescind their motion last week.

There are currently a number of different decisions/pieces of legislation facing the Georgia General Assembly that affect the transportation picture:

- Sen. David Shafer (R - Duluth) has introduced Senate Resolution 821, a constitutional amendment that will clarify GDOT's ability to use accrual accounting principles. The legislation currently sits in the Senate Transportation Committee awaiting a hearing.

- House Transportation Chairman Jay Roberts (R - Camilla) has introduced House Bill 1135 seeking to change GDOT's accounting methods. Rep. Roberts legislation is in the form of a general statute rather than a constitutional amendment.

- Rep. Ed Setzler (R - Acworth), Rep. Mark Hamilton (R-Cumming), Majority Caucus Chair Donna Sheldon (R - Dacula) and others introduced House Bill 1358, which would divert 25% of the state's sales and use tax proceeds for general transportation purposes.

- Sen. Doug Stoner (D - Smyrna) has introduced a constitutional amendment and an accompanying general statute, Senate Resolution 972 and Senate Bill 366 , that would create a T-SPLOST within newly defined tax districts, requiring 50% of the funds raised to be spent on transit within the metro Atlanta region. An exception is included for DeKalb and Fulton counties, who currently have a one-cent sales tax to fund MARTA. The legislation includes an opt-out mechanism, and would phase the remaining "fourth penny" of the gas tax, which currently goes to the state's general fund, into a special transportation fund for appropriation by the General Assembly. This would all take place in 25% increments during a four-year period.

- Rep. Tim Bearden's (R - Villa Rica) proposed transportation plan, not yet introduced, creates 159 special tax districts that can pass T-SPLOSTs either individually or as groups. The unique aspect of the bill transfers the state’s portion of the 1/4 cent of the motor fuel tax back to the county in which it was collected to be used on local transportation priorities.

On Thursday, Speaker David Ralston (R - Blue Ridge) announced that he would be introducing legislation to place term limits on GDOT Board members. Ralston's proposal would give House members the choice between two, two-year terms or one five-year term. GDOT Board members currently serve five-year terms without term limits.

On Thursday afternoon, Governor Sonny Perdue held a press conference to announce his transportation plan, legislation that will institute a one-cent sales tax for transportation statewide across the next 8 years. The vote would take place on project lists in each of the 12 different regional commissions in 2012. All of those projects, however, would have to be approved by the Director of Planning, a position appointed by the governor. The funds would be spent in the regions in which they are collected with no county opt-out. The legislation would send all new revenues to the State Road and Tollway Authority for management and disbursement. Finally, the legislation suspends the 50/50 restriction on MARTA's budget for three years. The bill also calls for $300 million in bonds as previously announced by the governor's office.

Change in Governor's Race

Insider Advantage, in coordination with Rosetta Stone Communications, released a poll this week that showed significant movement in the race for the Republican nomination for governor. Insurance Commissioner John Oxendine still leads the field with 25% (down 10% from a Rasmussen tracking poll publicized in August 2009). Former Secretary of State Karen Handel received 10%, Congressman Nathan Deal with 9%, former Senate President Pro Tempore Eric Johnson with 7%, Congressman Nathan Deal, Rep. Austin Scott (R-Ashburn) at 3%, and Ray McBerry at 1%. 45% of those polled were undecided, and the poll has a margin of error of plus or minus 4 percentage points.

Reforming Property Taxes

On Wednesday afternoon, the Senate Finance Committee met to consider Senate Majority Leader Chip Rogers' (R-Woodstock) Senate Bill 346 , legislation to reform Georgia's property tax system. Sen. Rogers opened his presentation to the committee by apologizing for bringing such a long, complicated piece of legislation, but stated that a 48-page bill wouldn't be necessary if Georgia's property tax system wasn't so convoluted. Sen. Rogers stated that his legislation had two primary purposes: first, to ensure that when a owner's property taxes are calculated, that the assessment is tied as closely as possible to the fair market value of the property; and second, to make sure that every taxpayer had the option and clear opportunity to appeal his assessment.

Senate Bill 346 alters the taxing and appeals process in favor of the taxpayer, while also streamlining the process for local taxing authorities. One of the most concerning portions of the bill to those representing local governments was a year round appeal for taxpayers. Sen. Rogers' substitute will replace that provision with a 45 day time period to appeal upon receiving an assessment notice. One of the other interesting portions of the bill is the re-defining of an arms length transaction, which in the past has not included homes sales at auctions.

While this bill will have some further changes, and some parties will still have concerns, everyone is able to acknowledge the tremendous amount of work that went into this legislation over the last year. A complicated issue is rarely addressed with the level of craftsmanship and consideration that Sen. Rogers and every interested stakeholder has brought to this effort on property tax reform.

Education

Senate Bill 84, legislation to reform the governance of local school boards, passed out of the House Education Committee on Thursday. Pushed by the governor and the Georgia and Metro Atlanta Chambers of Commerce, the legislation reforms training requirements for school board members, requires codes of ethics for every school board, and provides the state the power to remove a school board if they are put on probation by an accrediting agency.

The bill previously allowed the governor sole power to remove a school board if put on a probationary level that preceded the loss of accreditation for a school district or school. However, the House Education Committee chose to amend the bill and have the State Board of Education hold a hearing after a the probation period is initiated, and then recommend to the governor whether or not to remove a school board. The committee also removed a provision that would allow school board members to remove a fellow member, and instead allows a board to sanction another member of the same board.

In other education news, the House passed House Bill 908. House Bill 908 provides local school districts the flexibility from state expenditure controls on education programs. In other words, funds that the state provides that must be used for certain purposes can now be used by school districts (for the next 3 year), for other purposes. The goal is to allow school systems much needed flexibility with their budgets in these lean economic times.

The Senate Education Committee held hearings on two major pieces of legislation. Senate Bill 386 would implement a performance pay structure for new teachers and those teachers wishing to opt in, as opposed to the current salary schedule used for teachers. Senate Bill 352 would create a grading system for schools that would be based on an A-F scale, with those schools receiving an F facing penalties for low performance. The legislation would also eliminate the High School Graduation Test and replace it with the current end of course tests.

Texting While Driving?

State Representatives Allen Peake (R - Macon) and Amos Amerson (R - Dahlonega), have introduced legislation that will ban the practice of texting while driving, effective July 1 (House Bill 938 and House Bill 944 ). Georgia would be the 20th state to outlaw the practice, with one study claiming that California's ban has led to a 70% reduction of texting while driving. A subcommittee of the House Public Safety & Homeland Security Committee has combined both bills into House Bill 944 . The subcommittee passed the legislation under the guidance of Chairman Billy Maddox (R-Zebulon). The full committee is expected to hear the bill this upcoming week.

Today in History

February 12, 1542: Catherine Howard, the fifth wife of Henry VIII, is executed for adultery.

February 12, 1668: Spain recognizes Portugal as an independent nation.

February 12, 1880: Thomas Edison observes the Edison Effect, the flow of a current in a vacuum between two metal wires, one of which is heated.

February 12, 1945: The Siege of Budapest ends with the surrender of the German and Hungarian forces to the Red Army.

February 12, 1960: France tests its first atomic bomb.

February 12, 2000: The last original Peanuts comic strip appears the day after Charles M. Schultz passes away.

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.”