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.






