Day 32 - March 18, 2008

Last weekend’s tornadoes are continuing to cause a storm under the Gold Dome. Final budget decisions may be delayed as legislators wait to receive an accounting of the restoration needs for the Georgia World Congress Center and other sites.  We anticipate that the current calendar will be changed to reflect this new reality.
 
The Capital was also abuzz with the news that Representative Ron Sailor pled guilty today to money laundering charges and has promised to resign within 24 hours. Sailor has held office since 2001. He holds the District 93 seat, which includes parts of DeKalb and Rockdale County.
 
Both the House and Senate had short calendars today in order to allow committees time to consider bills. 
 
Senator Thomas introduced SR 1187 today to create the Senate Children's Mental Health in Georgia Study Committee looking at the increasing incidence of mental health problems in children and adolescents.   This Study will consider issues including the educational needs of these children, available resources, and the availability of professionals to treat them.  This Study Committee would be required to conclude its work on or before December 15, 2008.
 
The Speaker presented his tax reform proposal to the Senate Finance Committee today. Speaker Richardson stated that he has travelled around Georgia and confirmed that although Georgians hate all taxes, the taxes that they hate most are property taxes. Under the HR 1246, there would be an end what is known as the "birthday tax" on autos and a freeze on property tax assessments. The General Assembly would have the responsibility to find a mechanism to reimburse localities.  The Speaker spoke passionately about his support for the bill and his belief that the legislator should trust Georgia’s voters and allow them to vote on the constitutional amendment. The Committee showed concern about the gap that this cut would create in the State's budget. Speaker Richardson pointed out that in 1996 when the grocery tax was eliminated, that the fiscal impacts of that cut were far more extensive and sweeping than in this plan. Other concerns regarded why the speaker included both personal and other property taxes as well as concerns about whether the legislature would be required to reimburse localities.
 
A Committee Substitute was introduced, LC 1887474S, by Chairman Rogers . The substitute eliminates the birthday tax cut and adds spending caps.  The Speaker indicated extreme unhappiness over the fact that he had not been given advance notice of the introduction of a Committee Substitute and expressed his belief that the substitute  is an “embarrasement” that does not reflect a real tax cut for the people of Georgia. The Speaker asked for time to look over the new draft. Sen. Rogers agreed that the Committee should have more time to look over the Legislation and called for a vote to be taken on Wednesday, March 19, 2008.
 
Immediately after the Finance Committee adjourned, the Lt. Governor held a press conference.  Flanked by members of the Senate leadership, Lt. Gov. Cagle announced a Senate proposal to cut state income taxes for all tax payers by 10 percent.  The tax cut would be phased in over 5 years.  The Lt. Governor characterized the plan as “Broad. Immediate. Fair.”