Last minute debt deal a day late and $4 trillion short

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February 13th, 2010
BBN Staff /

House cuts another $1.2 Billion


A billion here and a billon there, and all of a sudden you’re talking about saving some real money.

A billion here and a billon there, and all of a sudden you’re talking about saving some real money.


The House has approved a midyear budget which slashes another $1.2 billion in spending and includes six more unpaid furlough days for state employees.


The House voted 122-44 on Thursday to adopt the $17.4 billion spending plan.


Most state agencies are facing cuts of about 8 percent as the state wrestles with tax collections that have tumbled for 14 consecutive months.


One of the only spending increases is for mental hospitals, which are under fire from the U.S. Department of Justice.


State employees and teachers are facing three more unpaid furlough days before the June 30 end of the fiscal year.


Some Democrats voted against the budget arguing it shortchanges education.


The budget now moves to the state Senate for negotiation or ratification.


SCHOOL DAZE


The Georgia House approved legislation that would give schools more flexibility in how they spend their state dollars for the next three years. The measure passed 137-34. State Rep. David Casas argued the measure will help school districts make it through tough economic times. But House Minority Leader DuBose Porter said three years is too long to waive state rules.


ILLEGALS BE GONE


A Republican lawmaker wants to provide financial incentives to encourage local law enforcement to use a federal program aimed at identifying illegal immigrants arrested in Georgia. The bill sponsored by Sen. John Wiles would provide a 20 percent bonus from the state to local governments that use a federal program that helps them identify illegal immigrants in custody.


QUOTE OF THE WEEK


“It’s shameful...the integrity of these assessments and tests has to be beyond reproach’’ -Gov. Sonny Perdue commenting on a state report which found that cheating may have occurred on standardized tests


PERDUE: A PENNEY FOR YOUR ROADS


Georgians voting in the 2012 presidential primary will be able to decide whether to increase the sales tax by one penny to pay for transportation projects, under a deal announced Thursday by Gov. Sonny Perdue (R) and legislative leaders.


Under the plan, which must still be approved by the Legislature, regions that approve the tax increase would have money to spend on local road and infrastructure projects. Others could reject the increase and would not see any additional funding.


The proposal would also give MARTA flexibility to tap millions of dollars in its reserve fund to stay afloat. Atlanta‘s public transit system is staggering under a huge funding shortfall.


Perdue made the announcement Thursday with fellow Republicans, Lt. Gov. Casey Cagle and House Speaker David Ralston. Lawmakers have been tantalizingly close to a deal on transportation for the past few years but have come up short in the final hours of the legislative session each time.


The logjam broke this year after Perdue finally threw his support behind the regional sales tax proposal. He explained that after pushing through a bill to overhaul the state Department of Transportation’s troubled bureaucracy he now has confidence any additional money would be spent wisely.


That’s another way of saying he has more control over where the money goes.


Democrats have pushed for a vote this year — rather than 2012 —  saying the cash is needed immediately to improve the state’s ailing roads, rails and airports.


But Perdue said the economy needs to improve for the plan to stand a chance of winning voter approval.


“I do believe that our economy will be well on the way of recovering at that time,’’ Perdue said.


Perdue said it would also give officials another two years to make their case to voters.


The governor’s budget plan also calls for an additional $300 million in bonds for transportation projects that could begin flowing sooner, he said.


TRANSPORTATION DIVORCE COURT 


Metro Atlanta suffers from some of the worst commute times in the nation and business leaders have complained that the region’s notorious gridlock has made it difficult to recruit and keep companies.


Spending on transportation in Georgia has lagged well behind the state’s explosive population growth. Georgia spends the second lowest per capita in the country on transportation, ahead of only Tennessee.


Road projects in Georgia are funded mostly with money from the state’s gasoline tax. But those revenues have tumbled due to the recession.


The MARTA plan would help out the Atlanta‘s struggling mass transit system by easing spending restrictions for three years. MARTA Chief Executive Officer Beverly Scott said it was not a cure all for the funding ills. The proposal would give MARTA access to about $39 million now earmarked for capital improvements. But MARTA is facing a steep $120 million shortfall.


“This is a very positive step forward but it is not a panacea,’’ Scott said Thursday.


While Perdue expressed confidence in the state Department of Transportation on Thursday, its board remains something of a problem child to him. Just weeks ago Perdue blasted the board for using an accounting method he said violated the law.


Ralston said that House Republicans would put forward a proposal next week to shorten the terms of state transportation board members. The board members currently serve five-year terms. He wants them to serve two-year terms or one five-year term.


Speaking at the Atlanta Press Club, Ralston promised legislation will be introduced in the House on this coming Tuesday that would limit board terms. Ralston said that while the state has worked to overhaul the Department of Transportation to provide more accountability he is “concerned we haven’t gone as far as we need to go.”


The DOT board controls an annual budget of roughly $2 billion.


“You’ve got a board over there that’s defying the law and continuing to resist change, continuing to resist our efforts to bring a planning component over there. The majority seems to be totally resistant to that,’’ Ralston told reporters after his remarks.


But DOT board member David Doss blasted the plan, and claimed that “some of the criticism“ is misdirected.


“Since 1962, Gov. Carl Sanders moved the highway department out of the governors’ office and created an independent constitutionally-created board and I think that model has served us well for almost 50 years,’’ Doss said.


Doss said any effort to diminish the board’s independence “is a dangerous path to go down.’’


Members of the DOT board are elected by state legislators to represent congressional districts. Perdue has been at war with them for most of his eight years in office.


District Six DOT board member Brandon Breach, who represents North Fulton, questioned Perdue’s motives. “Its all about power and control,” Beach said. “He wants the power to control the funds. It’s that simple.”

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