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November 21st, 2009
Beacon Staff /

Georgia's Recession Continues


That’s the word from the director of Georgia State University’s Economic Forecasting Center...

That’s the word from the director of Georgia State University’s Economic Forecasting Center. Rajeev Dhawan said job losses continue to plague the Peach State. The third quarter of 2009 saw more than 50,000 jobs lost in Georgia, the fourth dismal quarter in a row.


Tax collections in the state also continue to plummet. Dhawan said that’s because unemployed Georgians are spending less.


Dhawan says that hospitality and airline industries will continue to suffer from cutbacks in business travel and other corporate belt-tightening. But the Kia plant opening in west Georgia is good news for the state.


Dhawan said he sees the state’s fiscal picture should improve in 2011.


FLOOD MONEY


Federal officials say time is running out for almost 20,000 Georgia flood victims who picked up applications for low-interest loans but have not returned them. The loans are available for victims of the record September rains that caused heavy flooding.


Richard Daigle, spokesman for the Small Business Administration, says applications must be postmarked by Monday, Nov. 23.


The loans cover losses not covered by flood insurance or federal grants. So far, the SBA has approved more than $40 million in disaster loans related to the flood.


If the SBA does not approve a homeowner or renter for a loan, the person could get more Federal Emergency Management Agency grant money. The maximum FEMA grant is $30,300.


GEORGIA JOBS SCARCE


Georgia officials say the state’s unemployment rate has risen slightly and now stands at 10.2 percent.


The state Department of Labor says the rate rose by one-tenth of a point in October, and the seasonally adjusted rate now matches the national average.


Labor Commissioner Michael Thurmond says the state’s unemployment rate was 6.9 percent a year ago, and the state’s labor force decreased by about 139,000 while the number of payroll jobs fell by more than 200,000.


WATER WHEEL


Georgia has a new attorney handling its appeal of a devastating water decision that could limit Atlanta‘s access to its main water supply.


Seth Waxman, a former U.S. solicitor general, will head the state’s appeal of the judge’s July ruling. That decision concluded it is illegal for Atlanta to draw drinking water from Lake Lanier and gave the state three years to work out a deal.


Waxman replaces Paul Clement, another former U.S. solicitor general. It turns out that Clement was the attorney of record for the U.S. Army Corps of Engineers in an appeal to the Supreme Court in the case.


That forced him to step down because of a possible conflict of interest.


DEPORT DEPOT


Law enforcement agencies in three Georgia counties are set to receive new technology to identify and deport illegal immigrants who are considered dangerous criminals.


Law enforcement agencies in Gwinnett, Clayton and DeKalb counties will participate in the U.S. Immigration and Customs Enforcement agency’s Secure Communities program.


The program allows arrestee fingerprint information to be checked against FBI criminal history records and biometrics-based immigration records kept by the Department of Homeland Security.


Previously fingerprints were just checked against the Department of Justice biometric system kept by the FBI.


The Secure Communities technology is now available in more than 100 jurisdictions in 13 states. Nationwide coverage is expected by the end of 2013.


CAN YOU HEAR ME NOW?


A federal judge on Wednesday denied a request by AT&T Inc. to force competitor Verizon Wireless to pull its “There’s a Map for That’‘ commercials.


But the judge scheduled a Dec. 16 hearing to give the AT&T attorneys another chance to make their case.


AT&T filed the lawsuit in federal court in Atlanta earlier this month and asked for a temporary restraining order and a permanent injunction to stop the ads. It contends they are misleading and amount to deceptive trade practices.


Verizon argues that the commercials are valid and truthful.


The ads show maps of the United States with areas highlighted to depict where third generation “3G’‘ network coverage is available. A map of the country nearly covered with red dots is shown to depict Verizon’s coverage, while a map with some blue areas and a lot of blank space is shown to ostensibly display AT&T’s 3G coverage.


AT&T says those maps are misleading because there is still regular coverage in areas where 3G service is not offered. The 3G networks allow users to access data faster.


The Verizon commercials mock Apple Inc.’s popular  “There’s an App for That’‘ spots touting the thousands of applications that can be used on the iPhone. AT&T provides coverage for the iPhone.


DEAR KELLOGG: LEGGO MY EGGO!


Kellogg Co. says there will be a nationwide shortage of its popular Eggo frozen waffles until next summer because of interruptions in production at two of the four plants that make them.


The company’s Atlanta plant was shut down for an undisclosed period by a September storm that dumped historic amounts of rain in the area. Meanwhile, several production lines at its largest bakery in Rossville, Tenn., are closed indefinitely for repairs, company spokeswoman Kris Charles said in an e-mail.


It will take until the middle of 2010 before shelves around the country are stocked at pre-shutdown levels, Charles said.


Already customers are noticing near-empty Eggo shelves on the freezer aisle at many grocery stores.


Stay-at-home mom Joey Resciniti says she bought one of the last two boxes of Eggos at a Walmart in Cranberry Township, Pa., on Monday. The frozen waffles are a favorite of her 4-year-old daughter, Julia.


“We have eight of them, and if we ration those, maybe have half an Eggo in one sitting, then it’ll last longer,’‘ said Resciniti, who blogs about being a mother.  “I told my husband that maybe I need to put them on eBay.’‘


Charles didn’t know how long the Atlanta plant was shut down, but said that it’s back at full production now.


The existing stock of Eggos will be distributed nationally based on stores’ sales histories of the waffles, Charles said.


“We are working around the clock to restore Eggo store inventories to normal levels as quickly as possible,’‘ she wrote in the e-mail.


Eggo first hit the shelves in 1960, and its cult following grew in the following years. Kellogg started using the famed slogan “Leggo my Eggo’‘ in 1972. For years, the waffles have been a staple for busy moms and college students looking for a quick breakfast.


This week, news of the shortage spread quickly on Twitter as shoppers reported not being able to find the breakfast food. Fans of Eggos lamented their scarcity on the waffle’s Facebook page, which has more than 400 members.


SHORT CIRCUIT


Georgia’s biggest court system warned Wednesday that a 2010 Fulton County proposal that cuts $53 million from the judicial budget could force them to shut down the courthouse, jeopardize death penalty cases and slash as many as 1,000 jobs.


Fulton County’s judicial leaders declared an “economic state of emergency’‘ and warned that the cuts, which amount to about a fourth of Fulton County’s judicial budget, would lead to drastic changes at the Fulton County Jail, the sheriff’s office along with prosecutors, judges and public defenders.


“This is not something you can adjust to,’‘ said Doris Downs, the county’s chief superior court judge.  “This is going to dismantle the justice system.’‘


The proposed cuts, which were released last week, are part of a spending plan that would slash the county’s funding by $148.2 million in 2010. Downs and other judicial leaders said the cuts came as a surprise to them and urged commissioners to rethink the spending plan before it plunges the legal system into a “crisis.’‘


Fulton County Commission Chair John Eaves said the spending plan is still tentative and that commissioners will approve final changes in January. But he said that the judicial system would have to shoulder a portion of the cuts along with other county agencies.


“We have to spread those costs around many departments that we fund, including the justice system,’‘ he said. “I wouldn’t say it’s a state of emergency, but there are tough decisions that have to be made and I’m hopeful we’ll work out something that’s reasonable given our financial shortfall.’‘


Courthouses around the nation have been squeezed by budget cuts, and Georgia judicial leaders hit hard by cuts have threatened to fight back. Faced with an order from the governor to slash spending by 25 percent in June, state judicial leaders warned it would launch a legal challenge to stave off the cuts before deciding against it.


Downs and District Attorney Paul Howard said they don’t expect to fight the cuts in court and that they’re hopeful they can broker a compromise. But Howard said the results would be “disastrous’‘ if the proposed cuts are left intact.


Among the possible aftershocks, said Downs, is a more aggressive early release program to lower jail expenses. She also said the cuts could slow the flow of criminal and civil caseloads.


Howard said the cuts would force the county judicial system to fire between 425 and 980 employees, a figure which Eaves disputed. Howard also said the cuts could force the county to shutter the courthouse a few days next year and force prosecutors to take a “second look’‘ at many capital cases to see if they are financially feasible.


“These are cuts,’‘ said Downs, “that we cannot withstand.’‘

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