Original source: The Atlanta Progressive News
(APN) ATLANTA – Once again, this year's General Assembly was a tremendous disappointment across a wide range of issues concerning working families.
As previously reported by Atlanta Progressive News, the Assembly failed to pass a transportation funding bill, all the while giving Gov. Sonny Perdue the transportation governance overhaul he wanted and leaving MARTA out of luck.
Meanwhile, the Assembly passed steep tax cuts that analysts say will primarily benefit wealthy individuals and large corporations, while costing the state hundreds of millions in revenue.
Lawmakers were able to stave off further disaster by using federal stimulus dollars to fill gaps in the state's budget, but still had to make $1 billion in cuts.
To top it all off, lawmakers punished immigrants; squashed the sale of alcohol on Sundays; punted the environmental football while giving Georgia Power a sweetheart deal; and failed to increase the state minimum wage.
MIDDLE CLASS HOMEOWNERS PAY FOR TAX CUTS BENEFITTING CORPORATIONS, AFFLUENT
The Assembly also partially paid for its latest round of vast tax cuts with the elimination of tax credits which had previously benefitted middle class homeowners, Atlanta Progressive News has learned.
The Republican leadership was very proud of their two tax cut bills, which were purportedly intended to create jobs.
'House Bills 481 and 482 were introduced by Rep. Tom Graves (R-Ranger) and House Leadership earlier this year as a package of legislation to create, expand and attract jobs for Georgians,' the House communications office wrote in a statement obtained by APN.
Potential benefits to small businesses include:
-Eliminating the corporate net worth tax. (Previously, businesses with zero or negative worth still had to pay a baseline tax of $10.00 each year. Clearly, however, the majority of the benefits of this cut will go to big businesses.)
-A $2,400 temporary tax credit for employers hiring certain unemployed workers.
-A business registration holiday. ($100 filing fee will be waived for new businesses this next fiscal year).
However, the majority of the benefits go to wealthy individuals and corporations, Sarah Beth Gehl, Deputy Director of Georgia Budget and Policy Institute, told APN in an interview.
According to GBPI, HB 481 also 'Reduces the long-term capital gains tax by 50 percent, resulting in approximately $300 million of lost revenue to the state.'
GBPI notes: 'According to analysis by the Institute on Taxation and Economic Policy, the cut in capital gains taxes will cost hundreds of millions of dollars annually, while 99 percent of the benefits will flow to people who are in the top 20% of income levels.'
The benefits of the capital gains tax cuts are estimated to be split as follows: 1% to the bottom 80% of the income bracket; 99% to the top 20%. Of this, 92% of benefits will go to the top 5% earners, and 77% will go to the top 1% earners.
'The expense will be paid for in budget cuts for things like education and health care. There's a complete disconnect,' Gehl said.
'To help pay for this handout to the rich, the Assembly chose to repeal the Homeowner Tax Relief Grant - a major source of much-needed tax relief to low- and middle-income Georgians,' the ITEP said in a press release obtained by APN.
STATE BUDGET
The Assembly passed an $18.6 billion budget on the final day, using $1.3 billion in federal stimulus money to keep it in balance.
It includes $1.2 billion in borrowing for construction projects mainly centered on schools and libraries. Stimulus dollars helped fill gaps in Medicaid, the state program that provides health care to the poor and disabled.
There will also be no new health insurance premium increases for 225,000 teachers and state employees.
TRANSPORTATION
Please see APN's recent coverage of the Assembly's failure to fund MARTA.
DEATH PENALTY
For one small victory, please see APN's recent coverage of the Assembly's passage of a law which may reduce instances in which the death penalty is sought in Georgia.
ENVIRONMENTAL
Perhaps the most significant environmental bill this Session was SB 31. The bill, which the Assembly passed, allows Georgia Power to begin charging ratepayers in 2011 for construction costs for two new nuclear generating units at Plant Vogtle, slated for completion in 2016 and 2017. Stay tuned to APN for more, in our ongoing coverage of this issue.
Old rules dictated that Georgia Power could only charge for construction after completion of a project. Critics saw the measure as an end run around the Georgia Public Service Commission, which gave Georgia Power certification in March to begin construction of the new units. They also argued that it is wrong to ask customers to pay for a project that will not yield benefits for years to come.
Proponents argued the move will save ratepayers money in the long run in reduced financing costs.
Meanwhile, SB 147, to increase the proportion of renewable energy resources in Georgia, died in committee. Sponsors included State Sens. David Adelman, Lester Jackson, Steve Henson, Doug Stoner, and Curt Thompson.
HB 276, prohibiting the practice of mountaintop coal removal and prohibiting the state from purchasing coal extracted using such means, died in committee. Sponsors included State Reps. Mary Oliver, Brian Thomas, Debbie Buckner, Kathy Ashe, Pat Gardner, and Stephanie Benfield.
HR 10, to create the Joint Study Committee for Clean Energy Technology, died in committee. Sponsors included State Rep. Billy Mitchell.
HEALTH
HR 120, a resolution urging US Congress to pass HR 676, single-payer universal health care, died in committee. Sponsors were State Reps. Stephanie Benfield, Debbie Buckner, Pat Gardner, Alisha Morgan, Karla Drenner, and Elly Dobbs.
SR 187, the Senate's version of HR 120, died in committee. Sponsors were State Sens. Nan Orrock, Gloria Butler, Horacena Tate, Curt Thompson, Valencia Seay, and Vincent Fort.
Legislation finally passed that will create a mechanism to provide dedicated funding to Georgia's trauma hospitals. But another bill that likely would have generated more money for trauma care did not pass.
HB 148, which would have placed a $10 fee on all car tags to generate annual funding for Georgia's trauma centers, over $80 million, died in committee.
HB 160, Gov. Perdue's super-speeder legislation, will impose an additional $200 fine on all speeders caught traveling over 75 M.P.H. on two lane roads and 85 M.P.H. on highways. This bill, which is expected to generate over $20 million annually, passed Assembly.
HB 39, would have raised the state excise tax on all tobacco products, but it died in committee.
HB 388, which provides for the adoption of human embryos, passed Assembly. It includes language changing the definition of child in the context of adoption law, to include human embryos.
SB 169, which would restrict embryonic stem cell research, passed the Senate, but died in House committee.
Meanwhile, some of the funding for family planning that had been previously cut was restored. As previously reported by APN, Planned Parenthood of Georgia had been cutting staff and increasing fees due to lost state revenue.
'This fall Governor Perdue required that all state programs be cut by 6% and family planning funding was disproportionately slashed by a whopping 30% or $7.5 million!' PPGA wrote in an email obtained by APN. 'These cuts were implemented in October and the Governor's proposed FY 2010 budget included an additional $2.5 million family planning funding cut.'
'By the time the FY 2010 budget was passed, and with help from federal stimulus funds, a good portion of family planning and other public health cuts had been restored. Of the $10 million cut to family planning, we are estimating that $6.1 million was restored for family planning and teen pregnancy prevention initiatives,' the email said.
'The Senate added language that would have prohibited minors from receiving contraceptives from publicly funded clinics without parental consent. After much advocacy opposing such language, it was removed in conference,' the email added.
IMMIGRATION
SB 86, a highly controversial bill which requires proof of citizenship to register to vote, passed Assembly. This bill will likely face court challenges because it creates even more obstacles to voting in Georgia, on top of the recent Voter ID laws.
HB 2, to deny state road building money to local governments that do not check to make sure new employees are not illegal immigrants or that those who receive public benefits are in the country legally, passed assembly.
SB 67, which requires English to be the only language for exams of permanent driver's licenses, died in the House.
OTHER BILLS
SB 16 and HB 138, which would allow the sale of alcohol on Sundays, died in committee.
HB 290, providing for a minimum wage increase that would keep up with the cost of living, died in committee.
SB 168, which requires the Georgia Department of Revenue to disclose the names of lawmakers who fail to pay state income taxes, passed Assembly.
--Jonathan Springston is a Senior Staff Writer for The Atlanta Progressive News and is reachable at jonathan@atlantaprogressivenews.com. Matthew Cardinale is the News Editor for The Atlanta Progressive News and is reachable at matthew@atlantaprogressivenews.com.
