GAs poverty rate relatively unchanged in 4 years

Four years after a national study found nearly one-third third of Georgia's working families living at or below the federal poverty line, newly released data show little has changed. The updated study titled "Still Working Hard, Still Falling Short," was funded in part by the Annie E. Casey Foundation. Significant among its findings … thirty percent of working families in Georgia are low-income, putting Georgia in seventeenth place nationwide. Sarah Beth Gehl is Deputy Director of the Georgia Budget and Policy Institute. With Georgia experiencing a budget shortfall, Gehl says now is not the time to consider cutting services to the poor. "During an economic time like this, there are going to have to be budget cuts. We understand that. But, for us, we think all options should be on the table, such as raising some revenue, using the rainy day fund. We think those options should be on the table and currently they are not." The report also found that nearly 30 percent of Georgia's jobs pay below the federal poverty level for a family of four. Those states topping the list of low-income working families are New Mexico, Mississippi, Oklahoma, Texas, and Arkansas.

Lehman Collapse Felt from Wall St. to Peachtree St.

The bankruptcy of Lehman Brothers could further hurt Georgia's woeful economy.

Emily Sanders heads Norcross based Sanders Financial Management, and she calls the collapse a "crisis."

Sanders says ”The structure of the financial system in the United States has been shaken to the core. And things won't go back to where they were previously.”

Sanders believes the collapse-along with the sale of Merrill Lynch and liquidity problems with AIG-could hurt Georgia because the state is heavily dependent on the real estate sector. Several reports show lending has dipped, and the news from Wall Street could keep credit and new loans from being issued, although that could change if the Fed lowers interest rates.

Recent revenue reports from the state show new car and home sales have fallen dramatically the past five months. Georgia state revenues are short some one hundred eighty million dollars this year. State officials are counting on an economic pick up to lighten coming budget cuts.

However, with credit and liquidity troubles associated with this collapse, Alan Essig says it’s “almost impossible” to see Georgia pulling out of the current economic downturn without larger cuts to services. He heads the Georgia Budget and Policy Institute, and warns lawmakers that a special session is needed by the end of the month to address the growing fiscal problems.

Sanders warns even more job losses could come as major companies try to balance their budgets to compensate for losses related to the bankruptcy.

Georgia’s current unemployment rate of 6.2 percent is currently above the national average.

Report: state funds for child care dwindle

Poor families in Georgia need more subsidized child care, according to a new report. The Georgia Budget and Policy Institute says by 2010 the state will hit a five-year low in how many children are in subsidized childcare slots. That's just under 54,000 a month. Georgia's main programs are Child Care and Parent Services (CAPS), Georgia Pre-K, and Head Start/Early Head Start.

Economy slump could slash state worker raises

Raises for teachers and state employees are at risk as the slumping economy could have lawmakers reconsidering the state budget.

Drops in tax collections and a predicted budget shortfall of up to 2 billion don’t add up to the 700 million dollars in new spending approved last legislative session, said one think tank yesterday.

The Georgia Budget and Policy Institute recommends budgets cuts in non-vital areas, and if need be, putting the January 1st raises expected for state and Board of Regents employees on the chopping block.

The think tank's director Allen Essig said education programs and Medicaid and Peachcare should be kept safe. "It's really important we don't balance the budget on the backs of children and the elderly, those who can least afford it and that we spread the responsibility throughout the state."

Spreading responsibility includes a recommendation to raise cigarette taxes and rethinking special interest tax breaks.

A special session for lawmakers to retool the state budget could be on the horizon.

Perdue calls state house action irresponsible

Governor Perdue today accused the state house of being irresponsible in passing a tax reform ammendment. The tax cut amendment would leave the state 800 million dollars short in a few years if approved by voters.

That's the tally from the budget and policy institute and Governor Perdue Agrees.

The state house this week just barely passed the amendemnt which would cut car taxes and the state income tax portion of property taxes.

Governor Perdue says the state house actions were wreckless. "This is major tax policy of the state done on the fly" Perdue says, "I liken it to the Wright brothers jumping out of Kiddy Hawk and designing and airplane on the way down."

Perdue accuses house members of being motivated by election year politics and not the best interest of the state.

"We're gonna need resources to fund education, growth and transportation in the future, " Perdue said.

The ammenment is now in the State Senate. Today the Georgia Budget and Policy Institute called on Senators to halt the measure.

Because this is a constitutional ammendment, the Governor has no veto control.

Report: Prison costs unsustainable

A new study says Georgia’s prison system is heading toward financial disaster. The Georgia Budget and Policy Institute says the cost of housing inmates in Georgia will continue on an "unsustainable path" unless lawmakers intervene. The GBPI says lawmakers should focus on better differentiating between violent and non-violent offenders, because the rate of non-violent offenders living in the prison system is rising rapidly. The study finds that the number if inmates in jail or prison more than doubled from 1991 to 2007 to 52,000 people … at a cost of more than half a billion dollars. The researchers predict the number of inmates to rise by another 15,000 by the year 2015.

Opposing a taxing proposal

Opposing a taxing proposal from Dave Bender and Vimeo.

A statewide fiscal watchdog group is taking issue with a far-reaching tax-reform plan to impose a state sales tax instead of property taxes.

The Georgia Budget and Policy Institute (GBPI) is fronting a coalition of groups opposed to a plan by House Speaker Glenn Richardson to abolish property taxes. Instead, Richardson's proposal would tax all goods and services sold in Georgia.

Alan Essig, who heads the Atlanta-based think tank spoke at Columbus State University Tuesday. He says Richardson's plan is ill-advised:

“Right now it's all guesswork, and are we going to blow up the tax system based on guesswork? Again, it's something we really need to think about before we do it.”

Along with Essig, a panel of city, school and local hospital officials discussed the plan's pros and cons with close to 100 Columbus residents.


Essig addressing the audience at
Cunningham Center at CSU.
(Dave Bender)