Latest Revenue Numbers Won't Prompt Special Session--Yet

Governor Sonny Perdue’s office says state lawmakers are "willing and able" to come back for a special session, should the economic downturn extend beyond what’s been projected.

Georgia revenue numbers released this week show collections in March fell more than 14-percent, or $167 million, compared to the same month a year ago.

But Perdue spokesman Bert Brantley says the key factor in determining whether a special session might be called is the current fiscal year statistic. For that, the state is down about 8-percent:

"For the 2009 and the 2010 budget, we passed them assuming tough times. So just the revenues dipping themselves, won’t require that(a special session)."

Brantley does say a prolonged downturn into the next fiscal year beginning July 1st, could prompt serious consideration of a special session.

Perdue: Special Session Not Best Option

In the wake of lawmakers’ failure to pass transportation funding legislation, there’s a push by metro Atlanta’s transit authority to bring them back to the Capitol.

That’s because MARTA is trying to dig its way out of a deep budget shortfall of $24 million. Without immediate help, the agency says it may have to consider shutting service one day a week to save money.

Because state law dictates MARTA must use half its income for capital expenses, it can’t use that money for operating costs. But its hope for help from lawmakers, along with other transportation funding legislation, died at the General Assembly's close Friday.

Governor Sonny Perdue was asked Tuesday whether he’d consider pulling lawmakers back to the Gold Dome:

"We’ll have to look at a lot of things. Special sessions are something in Georgia that we shy away from, and we’ll do our best frankly not to call a special session."

Perdue says MARTA never approached him during the General Assembly to discuss the shortfall--only speaking to their officials this morning a first time. Concerning the bigger picture of transportation in the state, Perdue hinted we may be moving toward more of a toll environment in future years.

Special session for Genarlow Wilson?

Black state lawmakers are calling for a special session to help free Genarlow Wilson. The three state senators say Wilson’s 10-year prison sentence for having consensual oral sex as a teenager with another teen is too harsh. Today they sent a letter to Governor Sonny Perdue urging him to bring lawmakers back for a special session to change the law keeping Wilson behind bars. A spokesperson for the Governor says since Mr. Perdue just left for a two-week trade mission to Europe, he probably won’t be able to do anything until he returns.

Perdue doubts lawmakers would call special session

Some state lawmakers want to call a special session to override Gov. Sonny Perdue's recent vetoes, but Perdue says he is not worried.

Republican leaders in the state legislature are angry that Perdue struck $140 million from the budget for the fiscal year that starts next month. Perdue also directed state agencies to ignore lawmakers' instructions over how to spend their money.

"This was an unusual session and emotions were fragile," Perdue says. "People may assume these were emotional decisions. They were not emotional decisions. They were decisions of process and methodology and principle that I'm happy to defend to anyone and I'd be happy to visit with any legislator about that."

Perdue says he doubts many lawmakers want to return to the Capitol this summer for something, he says, is not an "extreme situation."

Lawmakers who feel otherwise say it's their role to finalize a budget, and they want the ability to direct how agencies spend the money they appropriate.

Cagle cool toward special session

Today Lieutenant Governor Casey Cagle threw cold water on the idea of a special session aimed at restoring some of the spending vetoed by Governor Sonny Perdue. Many House leaders are bitter over some of the items Perdue vetoed from the 2008 budget. Some have suggested summoning themselves back to Atlanta to try to override some of those vetoes. But Lieutenant Governor Cagle says House leaders haven’t made the case to make such a rare move. Under Georgia law, only the governor may officially call a special session.

GOP lawmakers angry with Perdue over budget

State lawmakers are still mad that Gov. Sonny Perdue vetoed some of their favorite budget projects last month. Some want to call a special session to override his vetoes.

House members were already seething over Perdue's veto of a property tax cut. Then, the governor nixed some local projects, or pork, depending on your viewpoint. Senate Majority Leader Tommie Williams (R-Lyons) says even his chamber is upset with what came next: Perdue told state agencies to ignore lawmakers' instructions on how to spend public funds.

"If we don't have that privilege, then we become insignificant in the budget process and, frankly, we don't want to be there," he said.

Williams says he will try to work with Perdue to iron out differences soon. They have scheduled a meeting.

On the other hand, Clelia Davis, the spokeswoman for House leaders, says the lower chamber is seriously considering calling themselves back to the Capitol for a historic special session. Davis says representatives will not go out on a limb to do that without Senate backing, however.

A footnote:

When Gov. Sonny Perdue vetoed a property tax cut last month, he said the state could not afford it, and pointed to declining revenue numbers for April. But Georgia has bounced back stronger than before, with a 28 percent increase in May tax collections compared over last year.

Revenue Commissioner Bart Graham says the late tax deadline of April 17 caused a delay.

"The two days, and people who owed money filing on the deadline, contributed to a big swing between April and May," he said.

Graham says the department did not manipulate the numbers to bolster Perdue's case for a veto.

No special session: Perdue strikes property tax cut before signing budget

Gov. Sonny Perdue used his line-item veto power Tuesday to strike a tax cut before signing the 2007 amended budget, which contains emergency funding for education and the Peachcare child health plan.

Perdue's action reverses his earlier veto of the entire budget, which dictates state spending until July. He said this was not what he had wanted to do. He had hoped to call lawmakers back to the Capitol for a special session on the midyear budget, but ruled it out after meeting resistance from House leaders.

"It would've been tough on the members of the House and Senate, who are citizen-legislators, to come back not knowing how long that would be," Perdue said. "It would've been a show of power. It would've been futile."

Perdue denies his decision is a personal rebuke to House Speaker Glenn Richardson, who accused Perdue of showing lawmakers "his backside" by vetoing the budget. Richardson, who was once Perdue’s House floor leader, now uses softer words.

"Sometimes friends disagree, but the House will not compromise when it comes to defending the taxpayers of Georgia," he said in a written statement. He expressed disappointment that Perdue has vetoed $142 million one-time tax credit for property owners.

"The House still believes that if we can't all agree on how to spend the money, the best thing to do is to return it to the people who sent it to us," he said. "We would rather have it go back to the taxpayers than be hoarded for the government to spend another day."

But by striking the tax cut from the budget, Perdue says the money will enable the state to prop up its reserves at a time when economic growth is slowing.

"I think it's prudent at this time to be fiscally conservative," he said.

House leaders contend the reserves are in good shape now. Speaker Pro Tem Mark Burkhalter says he can't support the governor's decision.

"Aside from the fact that it's vetoing a tax cut, trying to understand how you can veto legislation, after sending out a press release and line-item veto something that’s a portion of what you already vetoed."

Burkhalter says House members are considering their next move, and they still want a tax cut.
Perdue's decision won praise from Lt. Gov. Casey Cagle, who presides over the State Senate.

"Leadership is about stepping forward with solutions in situations where compromise seems beyond reach. The Governor exercised strong character and courageous leadership today," said Cagle. "Every Georgian should be proud of the outcome of this process."

But Perdue was not as proud.

"Who said I felt positive about it?" Perdue asked. "It's the only option I believe that takes care of Peachcare and midyear educational reserves, but it still leaves some needs unmet."

Perdue says state workers-including prosecutors and public defenders-could face furloughs.

He has not decided yet whether to sign the 2008 budget lawmakers approved. He says he will take "corrective action" if necessary.

Still no special session date

There’s still no date for a special session. Governor Sonny Perdue’s press office says more than half of lawmakers have responded to yesterday’s e-mail asking for input on several upcoming dates. But there is no clear preference among lawmakers. Right now, the Governor’s office says Monday is most likely out of the question, but Mr. Perdue could schedule the special session to start on Monday the 14th or Monday the 21st. The special session is necessary because lawmakers can’t agree on a midyear budget. It’s expected to last five days.

About that special session

It has been nearly two weeks since Gov. Sonny Perdue vetoed the midyear budget passed by the state legislature, citing lack of funding for basic services and a controversial property tax cut championed by House Speaker Glenn Richardson.

On April 20, his office released a statement saying "he would make an announcement next week calling for a special session of the legislature to pass a balanced 2007 amended budget that meets the needs of Georgia's citizens."

But that week has come and gone, and Perdue has kept mum.

Meanwhile, schools that were counting on the midyear budget for money to ease overcrowding and pay nurses are digging into their rainy-day funds.

"Some are quite worried," says Department of Education Spokesman Dana Tofig. "They haven't hit crisis mode yet, but some are spending their own money—either surpluses or redirecting other funds. That's not ideal at all."

State leaders who say they want the special session to be as swift and painless as possible might be trying to get their ducks in a row before lawmakers return to the Capitol. That won't be a small feat, judging from the end of the regular session.

At that time, Richardson vowed the House would override Perdue's veto of the budget "again and again and again" in a special session. Richardson continues to insist on including a tax cut in the budget.

Tempers have cooled somewhat in the interim, but Richardson's spokeswoman, Clelia Davis, says the speaker has not met with Perdue.

"We're willing to work on it," said Davis. "We're willing to talk, but we have not heard from the governor's office."

Lt. Gov. Casey Cagle says he has met separately with both men. "I wish you could take the politics out of the equation that we're in," he told reporters last week. "Unfortunately, that does not exist."

On vetoes, overrides, tax cuts and egos at the State Capitol

Georgia lawmakers are stuck in a logjam over the midyear budget, but they're trying to reach a deal before going into a costly special session.

As of a few days ago, House Speaker Glenn Richardson (R-Hiram) was vowing to override Gov. Sonny Perdue's veto of the 2007 midyear budget "again and again and again" when lawmakers return to Atlanta.

But Lt. Gov. Casey Cagle dismissed Thursday the override as a "non-starter."

He says he’s conferred with both Richardson and Perdue. The feud, he says, is not really about policy.

"I wish you could take the politics out of the equation that we're in," Cagle says. "Unfortunately, that doesn’t exist. It's time for us to rise up and be statesmen."

When the governor vetoed the midyear budget, he singled out a $142 million property tax break. Although Cagle was one of the tax break's architects, he now says, "The deal that was presented that night was not the actual deal that has manifested. First it was a $100 check that was going to be given to every property owner in the state of Georgia and we were sure that due diligence had been done and, in effect, that has not transpired."

Local governments warned that it would be costly and difficult to send checks to homeowners, and that the value of each check would vary between $106 and $23, depending on the county.

Cagle now says he prefers Perdue's idea of expanding the existing retirees' tax cut. House leaders, however, say that would benefit only wealthy retirees. Nonetheless, the tax plan is expected to be on the table, along with the midyear budget, when lawmakers go into a special session.

In a written statement, House Majority Leader Jerry Keen says "The House fully supports and stands behind the $142 million tax refund to homeowners that we and the Senate unanimously voted for just 13 days ago. This is simply a policy dispute over what to do with excess revenue, and it is time to stand up for our conservative principles and do the fiscally conservative thing for Georgia. The House will not accept an '07 Amended Budget that does not include a tax break for Georgians."

Lawmakers expect the session to begin in a couple of weeks and last at least five days—at a cost of more than $240,000 dollars.

Special session looms for state lawmakers

A special session to call lawmakers back to the Capitol appears on the horizon. Governor Sonny Perdue is expected to announce this week when legislators should return to hammer-out a solution for the final two months of the fiscal 2007 budget. Perdue on Thursday had vetoed the 700-million dollar mid-year plan. On Friday, the Senate passed on joining the House in an over-ride of Perdue’s veto. At issue for the Governor is a property tax-cut of 142 million.

Lawmakers late Friday did get the budget done for next year. The 20.2 billion dollar plan includes funding for several of the Governor’s requested projects, and a three-percent pay raise for teachers and state employees.

Governor to announce Special Session

Governor Sonny Perdue says he is prepared to summon lawmakers to a special session next week to settle a budget dispute. The divided Legislature ended one of its longest-running sessions yesterday unable to overcome Perdue's Thursday night veto of the midyear spending plan, which included a one-time $142 million dollar tax break to Georgia homeowners.

The plan also contained badly needed cash to bail out the PeachCare health insurance program for poor children and to pay for public defenders, but Perdue argued it failed to fund other critical needs.

On Friday the House voted 163-to-5 to override the veto, but Senate leaders refused to follow suit by claiming the move was unconstitutional. The two chambers managed to approve a late agreement on the larger $20.2 billion dollar budget for the next fiscal year, which begins July 1st. Yet the stalemate over the $700 million dollar plan that funds state operations for the rest of the fiscal year ultimately threw the chamber into a special session.

House Speaker Glenn Richardson said he was irritated at the governor's call for lawmakers to return to Atlanta. He said, "This is a sad day for Georgia. Apparently hunting season is over and he's got time to hang out at the state Capitol."

Perdue said late yesterday he would announce the special session's dates next week.

Democrats protest Peachcare reforms

Democratic lawmakers walked out of the House of Representatives today to show their opposition to attempts to limit the Peachcare child health plan.

"The House and Senate are both making it harder for working families to find health care for their kids," says House Minority Leader DuBose Porter (D-Dublin). He says his party had to walk out because it could support neither the House version nor the Senate version of a bill to change Peachcare eligibility requirements, and lawmakers were being asked to choose between them.

Rep. Earl Ehrhart (R-Powder Springs) shrugged off the Democrats' action as "childish."

The move came after House Speaker Glenn Richardson (R-Hiram) asked representatives to disagree to changes the Senate had made to his original bill. Richardson wants to limit future Peachcare enrollment to families that make under 200 percent of the federal poverty level, or $40,000 for a family of four. The current limit is 235 percent, or $47,000 for the same family.

"Peachcare is not a constitutional right," Richardson said. "Health insurance is not a God-given, inherent constitutional right that you take money from one taxpayer and give to another."

Richardson's bill passed the House mostly along party lines. Then, senators swapped it for their own version of Peachcare limits. They would expand Medicaid to include the poorest Peachcare recipients, raise premiums for some Peachcare families, and create an "extended" program for families that make a little more, for a cost. Senators passed their version on Tuesday, again mostly along party lines.

After the House disagreed with the Senate bill, Porter met reporters in the hallway. He contends that both versions are unnecessary because Peachcare is part of a federal program currently undergoing review in Congress. He further questioned GOP budget negotiators' decision to send property taxpayers rebates of $101 or less, rather than spend that $142 million on healthcare.

Gov. Sonny Perdue has also questioned the proposed tax break, which raises suspicions that he might call lawmakers back to the Capitol for a special session on the 2007 midyear budget.