Homebuyers Could Get Thousands in Tax Breaks

State Senators passed a bill Thursday that's designed to get the real estate market moving in Georgia.

The measure would give taxpayers who buy an existing home up to a $3,600 credit. But the incentive would only apply for six months after becoming law.

Republican Senator Chip Pearson says he wants to lure people into the housing market to kick-start Georgia's ailing economy.

"It's really a double-edged sword in that if we do not stabilize the housing prices and values and then start a recovery in those values, we will continue to stay in this depressed situation that we're in..."

But opponents of the bill say tax break will do more harm than good to the state's budget. And Senate leaders are already worried that by 2010, revenues could be in the hole by $3.5 billion.

Federal Money May Nullify Plan to Raise Hospital Taxes

The federal stimulus package may nullify a state plan to charge hospitals and insurers new fees.

The addition of 1.73 billion dollars in federal money for Georgia’s Medicaid has almost certainly killed the proposed levy on hospital revenues, according to legislative leaders and health care industry officials.

A similar tax on health insurer revenues may die as well.

Governor Perdue proposed the fees to fill a projected 200 million dollar shortfall in Medicaid and to help fund the state’s trauma network.

However, Perdue’s spokesperson said earlier this week… the fate of the two taxes is still not finalized.

(The Atlanta Journal Constitution)

DOT's Evans Pleads For Help

State Department of Transportation commissioner Gena Evans had her turn in front of budget writers Thursday, pleading for help in trying to shore-up her agency’s shortfall.

"We’ve done everything that I know to do without hitting our personal services budget, and to be frank, I think my clock is pretty well cleaned at this point."

Evans says those cutbacks have included everything from equipment, to computer hardware, to landscaping contracts. Those cuts were combined with a pair of accounting moves to trim down from an original 456-million dollar deficit.

Still, Evans says she needs help. She asked lawmakers today to move a DOT debt-load off their books to the general treasury. Also, a request to move an additional one-percent of the state’s gas tax from the general fund, directly to the DOT.

"With no new taxes, those two things could generate almost 400-million dollars to the department without a single new tax."

The DOT has already had to push numerous projects back to future years in dealing with its budget.

State Budget Meetings Begin

Georgia legislative leaders roll-up their sleeves today, as three days of budget committee meetings begin. Lawmakers will dive into the tough work of figuring-out how to fill a two-billion-dollar-plus shortfall in the budget. Governor Sonny Perdue will open today's proceedings with an address to the House and Senate Appropriations Committees. Following Perdue, the Governor’s state fiscal economist will weigh-in with his forecast for Georgia in the coming year.

You can get all the latest on news from the State Capitol anytime, by going to our website and accessing Georgia News, at gpb.org

Perdue Delivers State of the State

Governor Sonny Perdue was welcomed by the full General Assembly to the State Capitol’s House chambers this morning. He delivered his annual State of the State address to outline where Georgia goes from here, in the face of a massive budget shortfall topping $2 billion.

Perdue said "we must not allow ourselves to be trapped in a short-term mindset where rash decisions result in dire long-term consequences."

Perdue in his 33-minute address told lawmakers some of the budget-pain could be relieved by tapping the state’s reserves for $50-million now, and another $408-million next fiscal year.

While light on specifics in certain areas, he gave particulars on some others, such as Georgia’s Medicaid funding gap. While some federal help could come in a stimulus package proposed by the incoming Obama-adminstration, Perdue said waiting is not an option:

"For those of you who would like to sit back and wait for Washington--we’ve waited before if you remember. And while I’m hopeful we’ll receive additional funds from the federal government, when I had the obligation of putting this budget together, I did not have the option to budget for money that may never materialize."

To that end, Perdue introduced legislation designed for Georgia’s healthcare system to share the burden in replenishing Medicaid:

"My budget will reflect in an accompanying bill that we will propose...a 1.6-percent fee on hospitals and health insurance providers to fill the hole in Medicaid and to do what the health care community has asked of us to do for so long."

Another centerpiece of Perdue’s budget proposal would fund critical new infrastructure and further support Work Ready programs in the state to spur 20,000 new jobs. The Governor says the $1.2 billion construction borrowing package would be backed by Georgia’s AAA bond rating:

"In the past, we’ve often funded the design-phase of a project one year and the construction at a later date. This year’s package will fast-track some of those. We'll feature many projects in which both design and construction are funded in the same year, ensuring a more timely completion.”

Other points of highlight and proposals from the Governor's address:

- Transportation: Perdue says he shares a vision with Lieutenant Governor Casey Cagle and House Speaker Glenn Richardson to devise a plan to improve the state's needs. Perdue would back the right funding plan. He also is committed to reform of the Department of Transportation.

- Education: Legislation to ensure local school boards act properly. Perdue also wants lawmakers to pass legislation to reward principals of improving schools with bonuses, and award merit pay to top teachers.

- Trauma care: In conjunction with Medicaid fee proposal, the Super Speeder legislation would provide $60 million for the sustaining and enhancement of trauma care in Georgia.

- Perdue's budget proposal calls for no pay raises for state employees and teachers next year ; $428 million in property tax grants would be eliminated, possibly leading to property tax increases for Georgians.

School Board Considers Class Size Increase

More crowded classrooms could be in the future for students in Georgia public schools. The state’s school board is scheduled to vote today on a plan that would temporarily raise the state-mandated limit on class size by two students per class. Schools superintendent Kathy Cox wants the limit hiked to help Georgia’s 180 school districts save $200-million. That would be the cost of hiring new teachers in the face of historic budget shortfalls in Georgia.