House Budget Passes

The house version of the budget totals out at about 18.5 billion dollars.

1.4 billion of that comes from the federal stimulus spending. That federal money will keep school nurses employed, and help balance the state’s Medicaid budget. And while 18.5 billion dollars might sound like a lot of money, it’s a pretty steep drop off from the past two years where spending came in over the 20 billion dollar mark.

In short, as Republican Ben Harbin explains, there were deep cuts to spending.

"We've had to make some tough decisions, and those tough decisions didn't come with just a willy-nilly reaction to what we thought was way a to get this budget balanced..."

For example, this bill does not fund homeowner tax relief grants. That’s means some property owners and municipalities will have to make up that shortfall. Democrats like House leader Dubose Porter, voted against the bill, calling the gutting of the tax grants unacceptable.

“We, by passing this bill are authorizing the largest tax increase in Georgia History.”

While technically not a tax increase, the decision to cut the grants could end up costing individual homeowners hundreds, and in some cases, thousands of dollars next year. Normally the state has pays a portion of each homeowners tax bill. Republicans say the choices are tough when state revenues are shrinking, layoffs are increasing and consumer spending is way down. The House budget now goes to the Senate for approval.

Property Tax Grants Approved for This Year, Doubtful for Next

Governor Sonny Perdue signed House Bill 143 Tuesday, which funds the $428 million in homeowners' tax relief grants for this year. The grant is worth around $200 to $300 per household.

The governor said cash from the federal stimulus package will help fund the program.

But House Bill 143 also ties future grants to the state's revenue figures. Next year's grants will likely not be funded, especially with Perdue's announcement today that he's telling state agencies to cut another 1% from their budgets.

In signing the bill, Perdue says, "We cannot budget based on the unknown."

Perdue also lowered this year's revenue estimates by an additional $450 million. This puts Georgias budget deficit close to $2.7 billion.

Fate of Homeowners' Tax Grants Hangs in Limbo

State lawmakers are holding back a bill from governor's desk that keeps homeowners' tax grants for this year. But Governor Sonny Perdue says finding the money to fund the grants will come at a price.

The grants would be worth $200-$300 to homeowners. But Perdue told county commissioners Tuesday the grants just don't work. Speaking at a luncheon for the Association of County Commissioners in Georgia, Perdue says the original intent of the grants was to entice counties to keep property taxes low. And that, he says, hasn't happened.

If the state does find the $428 million to fund the grants, Perdue says everyone would feel the cuts.

"And the end result will be less money for education, healthcare, public safety, and other programs vital to your communities. That's not a threat in any way. I'm just telling you. There's not a spare $428 million in this budget I've submitted."

County commissioners say they were promised the money for the grants last year, and the governor should follow through.

Homeowners Could Get Tax Relief... For Now

The state House passed a bill today that would prevent homeowners from receiving delinquent tax notices for now… But it almost ensures higher property tax bills in the future.

Governor Sonny Perdue wants to cut $428 million in Homeowners' Tax Relief Grants this year to help fill a $2.2 billion budget shortfall.

But in a vote mostly along party lines, House Republicans want to make sure the state makes good on its promise to fund the grants... for now.

House Bill 143 also ties the relief grant to the state’s budget in the future. If the state has a deficit, there wouldn't be a grant to homeowners.

Republican House Majority Leader Jerry Keen says the bill will fix the homeowners' tax grant problem once and for all.

“We are trying for the first time to bring some reason, some common sense, but more importantly accountability and predictability to this system.”

But Democratic Representative Doug McKillip says the state should make good on its word to continue to provide the grants, which range from $200-$300.

“Ladies and gentlemen, a promise made is a debt unpaid… We owe the $265 to every one of them for ‘08, we must give it to them for ‘09… It is what we need to do…"

The bill now goes to the Senate for consideration.