State budget slash cutting into jobs

Georgia agencies are preparing for sharp budget cuts by freezing open positions, slashing travel expenses, delaying new hiring and even ordering state employees to take time off without pay.

The cuts are a reflection of Georgia's mounting $1.6 billion budget deficit, which forced Gov. Sonny Perdue to order most state agencies to cut their budgets by six percent. Perdue also warned the agencies to prepare for broader cuts if tax collections continue to plummet.

The reduced budgets are due next month and agencies are still scrambling to prepare their reductions. But some have already started notifying employees of their plans, and they give a bleak glimpse at the state's financial woes.

Most state agencies are already putting plans in place to freeze new hiring and restrict travel expenses. Many will also have to cut programs to meet the reductions.

Schools Superintendent Kathy Cox is preparing to slash roughly $153 million, which could sap funding for a teacher mentoring program, new charter schools and graduation coaches aimed at reducing dropout rates.

The Department of Human Resources has already asked some employees to take a day off without pay each month, said spokeswoman Taka Wiley. So has Insurance Commissioner John Oxendine, who said he might be forced to ask staffers to take up to three furlough days each month.

"It's spreading the cost," he said. "Do you put it all on the backs of a few people, or do you have everybody equally contribute? We thought it was more equitable to have everyone equally contribute."

Agency heads have also launched more inventive ways to slash spending.

Human resources officials have staved off new vehicle purchases. Oxendine is restricting printing and purchasing to manilla folders instead of more expensive colored ones. And parks supervisors are considering closing parks and hiking fees.

"We're going to have to do more than freeze positions and cut travel to get there," said Beth Brown, a spokeswoman for the Department of Natural Resources.

Perdue said he has had little choice but to order the cuts, which also include a 5 percent reduction in Medicaid funding and 2 percent cuts to education funding for local schools.

Lagging tax collections have already forced Perdue to use $600 million in reserve funds to make ends meet, and there's little hope the fiscal tide is turning: Georgia's revenues fell another 6.6 percent for the month of July.

He's also under increasing pressure from legislators - and some department heads - to call for a special legislative session.

Agriculture Commissioner Tommy Irvin, a Democrat, said legislators need to reconvene to erase the hundreds of new employees approved in the latest budget.

"If we didn't have them before, why do we have to have them now," said Irvin, who has already cut the three new positions his department was expected to receive.

As the sluggish economy continues to lag, though, this may just be the first round of budget cuts.

"The things we're talking about now are the easy things," said Alan Essig, director of the nonpartisan Georgia Budget and Policy Institute. "They are not the more sweeping cuts that are most likely inevitable."

The institute is among the loudest supporters of a special session to raise state funds. Among its suggestions: Hiking the cigarette tax or eliminating a new $428 million property tax credit program.

"If revenue is off the table," Essig said, "it's going to get a lot worse before it gets better."

Click here for more GPB News coverage about the budget.

(The Associated Press)

Budget cuts take toll on Ga. crisis centers

Phones are ringing off the hook at Georgia's violence crisis centers as the tough economy translates into more reports of abuse in cash-strapped homes.

But even as domestic violence and rape crisis centers struggle to serve a rising number of victims, they have been hit with crippling state budget cuts that have forced them to slash programs and staff.

As part of Gov. Sonny Perdue's mandate for 6 percent budget cuts for most state agencies, the Department of Human Resources wiped out budget increases that would have gone to centers that help victims of rape and domestic violence.

It has sparked a concern for victims advocates who worry that violence crisis centers with already tight budgets are shouldering a disproportionate share of the budget burden.

"More victims are calling because we are getting the word out that these services are available," said attorney Shelley Senterfitt, a lobbyist for the centers. "But now what if someone calls and no one answers the phone? It sets up a false expectations for victims."

Commissioner B.J. Walker declined several requests for an interview, but spokeswoman Taka Wiley said the department had little choice.

"A lot of agencies are just tightening their belts and this is just something that we have to do," she said.

The cuts come at a time when the services are most needed, said violence crisis center leaders.

"Since the economy has been down, our shelters are almost always full now, and we have noticed a remarkable rise in the amount of calls coming in," said Beck Dunn, executive director of the Georgia Coalition Against Domestic Violence.

Dunn said the domestic violence center cuts, which amount to $815,000, is forcing centers to lay off staff, cancel benefit plans and cut prevention programs.

"The unfortunate part is that I have seen several shelters remove full time staff to part time because they can't give them benefits anymore," Dunn said. "Centers have to worry about providing food and clothing."

The Liberty House in Albany once sent three staff members each week to 17 counties in southwest Georgia to help women get protection orders. But now it can only afford to travel when a victim calls.

"We are losing access to people," said executive director Silke Deeley. "And victims are losing access to services and educational information."

She has scaled back on fresh produce, turned to powder milk and eliminated outreach programs. In January, Deeley said she will likely have to fire at least two staffers. Already, she said, the 21-bed center has a waiting list of four families.

"If they can't come in the shelter, what other options do they have?" Deeley said.

Shawn Paul, president of the Georgia Network to End Sexual Violence, said sexual assault centers were expecting $635,000 from the state this year. Instead they have had trouble finding the staff to operate 24-hour help hot lines and can no longer travel to victims, Paul said.

"I am very concerned about whether we can even keep all 25 rape crisis centers open," he said. "It is criminal how we expect our nonprofits to survive and provide like this."

There are 46 domestic violence shelters in Georgia which cover all 159 counties. The state does not have comprehensive coverage for rape crisis -- 25 centers for 129 counties.

State Sen. Nan Orrock said she and other female legislators will push for more funding for the centers when the legislative session convenes in January.

"There will be women who die or suffer critical injuries because the state of Georgia is failing to invest in programs proven to help," said Orrock, an Atlanta Democrat.

(The Associated Press)

Click here for more GPB News coverage of the economic crisis.

Budget Cuts Could Mean Lawsuit for Perdue

The state's courts could become the latest victims of the down economy. Governor Sonny Perdue is slashing state spending by 25% this month, because tax revenues are down. This latest round of budget cuts follows those ordered earlier this year by the Governor that all state agencies slash the bottom line up to ten percent. In his most recent call for departments to dig even deeper, the Governor included the state's courts.

However, Supreme Court Chief Justice Leah Ward Sears questions whether the Governor has that budget authority over the judicial branch.

"There is this question of power. The issue is whether or not the executive branch and the executive can change our budget. The judicial branch of government is not a state agency. We are a third branch. And that makes it a constitutional issue."

Later this week, the 202-member Council of Superior Court Judges will decide if it will ask the Chief Judge to sue Governor Perdue over the proposed cuts. It's a step the state's top judge hopes to avoid.

"This doesn't have to be hot headed. It doesn't have to be nasty. It's just a question that we need answered."

In the meantime, Fulton County Superior Court Judge Melvin K. Westmoreland fears if the court's are ordered to furlough employees, it would leave the state open to lawsuits from defendants, claiming violation of constitutional rights.

"It's a significant concern. We will not be able to keep the court's open and if we can't try that case because we don't have a district attorney or a public defender in front of us, than that defendant will be released."

The Governor wrote the Chief Justice, saying that after consulting with the fiscal officer of the state attorney general's office, he believes he has the power to withhold money from any state agency, including the two other branches of state government.

Bert Brantley is the Governor's spokesperson.

"There is a constitutional responsibility to balance the budget. And, then there's a statutory authority that the governor has to withhold spending from agencies in tines of sharp revenue decline. That statutory authority says that the withholding has to be equal."

Georgia and its courts, just like states and courts around the nations are all facing tough economic decisions. Including the nation's highest court. Here's US Supreme Court Justice Clarence Thomas testifying before a joint US House Senate subcommittee on finance.

"We recognize that in these difficult times, all budgets are to be looked at in a very disciplined way and we have done that. In the years that I have appeared before you, we have always requested only what is necessary for the court's operations. And, it is no different this year."

Although the US government can roll over its budget deficit from one fiscal year to the next, Georgia is constitutionally obligated to produce a balanced budget each fiscal year.

Cagle: Expect a 'Painful Session' Over Recession

Show us the money.

That'll be the refrain when Georgia's Legislature returns to Atlanta on Monday and lawmakers will grapple with a massive budget shortfall that will color nearly every decision that's made under the Gold Dome.

Gov. Sonny Perdue has already ordered most state agencies to slash their budgets by 8 percent. State workers have been furloughed. Fees at public colleges are rising. Health benefits for the poor are being scaled back.

And the cuts could go deeper if the economy continues to worsen. Tumbling state revenues have ripped a deficit in the budget that's expected to top $2 billion for the current fiscal year. It comes as the recession pumps up the demand for government services like Medicaid, food stamps and unemployment benefits.

At the same time, Georgia is wrestling with vexing - and costly - infrastructure needs to keep up with booming growth in metro Atlanta. Roadways are clogged with traffic. Additional reservoirs are needed to quench the region's fast-growing thirst.

"It's going to be a painful session," predicted Lt. Gov. Casey Cagle.

Tax increases to fill the budget gap appear to be off the table. Republican legislative leaders have been cool to proposals that would slap new levies on strip club patrons, cigarettes or groceries.

Instead, they're talking about capping the rate at which home assessments can rise, a move that would hobble the ability of cash-strapped local governments to raise revenue.

Conservative Republicans cast the budget woes as an opportunity to "right-size" state government and get back to basics.

"It gives us the chance to really prioritize and figure out what government is here for," said Kelly McCutchen, vice president of the Georgia Public Policy Foundation, an Atlanta-based conservative think tank.

The first salvo in the budget battle will come Wednesday when Perdue unveils his spending plan. He's pledged to include an aggressive bond package to kick start the state's economy by borrowing to fund road projects and school construction.

Legislators will be able to tinker with how the money is spent. But they won't be able to change the overall amount the state may spend. The governor has the sole authority to set that figure and the state is constitutionally prohibited from running a deficit.

The latest news from state money managers was bleak. On Friday, they reported that tax collections plunged 8.9 percent for December from the same month the year before. For the fiscal year that began July 1 revenues slumped by 2.7 percent, dragged down by sluggish sales and income taxes.

Already, advocates are jockeying to shield their pet issues.

"We are extremely concerned about how these budget cuts will affect Georgia's children," said Pat Willis, executive director of Voices for Georgia's Children.

David Blanchard, who lobbies for Georgians with developmental disabilities, summed it up this way: "We're bracing for the worst."

"The state is not meeting the needs (of the developmentally disabled) today. The idea that we would go backward really does make so many people nervous," Blanchard said.

The focus on the budget meltdown is likely to mean other legislation will take a back seat this session.

"I think everyone is so focused on the budget, that I really don't expect this to be a banner year for new legislation," said state Sen. Cecil Staton, a Macon Republican. "I don't hear a lot of people talking about lots of new bills."

Of course, there will be some exceptions.

A plan to fund transportation improvements could move quickly this session after falling just short of the needed votes last year. The plan would likely allow local governments to band together to assess a one-cent sales tax to fund road improvements.

School vouchers could also emerge as a politically charged brawl. State Sen. Eric Johnson, a Savannah Republican, has said he wants to give parents in failing school districts more options.

But the top Democrat in the state Senate predicted "the nuclear fight over universal vouchers will be more explosive than the Republican budget crisis."

"After years of deliberate underfunding, Republicans have severely weakened our public schools," said state Sen. Robert Brown, of Macon. "Now, they are aiming to drive a stake in the heart of our children's future with universal vouchers."

But for the most part, it will be a session focused on the state's pocketbook.

"It's going to be a legislative session of making cuts where it hurts the least," said state Sen. Don Thomas, a Dalton Republican.

Click here for more GPB News coverage about the Georgia Legislature.

(AP)

State health agency slashes budget

The Department of Community Health, or DCH, has released its revised 2009 budget. The move comes following Governor Sonny Perdue’s order that all state departments trim administrative costs and present new budgets reflecting cuts of six, eight and ten percent. That's because Georgia’s revenue shortfall this fiscal year is expected to be at least one point six billion dollars.

DCH has an annual budget of 12-billion dollars. On the administrative side, cuts at 6, 8 and 10 percent would amount to 7 million, 9 million and 12 million dollars respectively. Hardest hit will be new programs such as the Safety Net Program for new clinics.

The Governor has also ordered DCH to reduce its Medicaid and PeachCare budgets as well, by five percent each.

DCH Commissioner Dr. Rhonda Meadows did NOT recommend the cuts come from eligibility and benefits for Medicaid and PeachCare members. Instead the cuts will come by delaying payment increases to hospitals and medical providers, as well as delaying capital improvements at nursing homes.

"This was our hardest challenge. As you know, these are the programs that care of those vulnerable populations that I described earlier. With respect to Medicaid and PeachCare, the reduction direction was that we reduce the benefit budget by 5 percent which amounts to a reduction of $113.8 million dollars each year."

For years, DCH has run a budget surplus and returned money to the general treasury. And, the agency says it has been able to recover money by going after fraudulent payments. However, with the proposed cuts, the agency expects Medicaid will have a budget deficit of $224 million dollars at the start of fiscal year 2010. PeachCare’s budget surplus is expected to fall from $14 million dollars in fiscal year 2009 to $1.7 million in 2010.

Judge Says Budget Cuts Could Deny Justice

The state's next top chief justice is warning that more budget cuts to the judicial branch would mean more delays in an array of legal cases. Justice Carol Hunstein said Tuesday it is crucial for the courts to have the financial resources to operate efficiently. Hunstein said the adage "justice delayed is justice denied" is apt. She said justice is being denied to some residents because of the sharp budget cuts. Hunstein takes over as Georgia's top judge on July 1. Chief Justice Leah Ward Sears is stepping down at the end of this month.

(Associated Press)

Legislative Day 36 ... from the Senate

The state Senate today passed a 21 billion dollar budget package for fiscal year 2009.
Highlights include a 2-1/2 percent cost of living for increase for teachers and employees.

Republican Jack Hill, Chair of the Senate Appropriations Committee --- calls it a people focused budget.

“The people who work for the state of Georgia. Who keep us safe, who keep us healthy. Who care for our children and grandchildren. Who care for those in need. This budget focuses on those are our partners as well. And, who provide the services for those in need.”

The budget restores 56 million in education austerity cuts, as well as 83 million for school construction. However, Hill took House leaders to task for cutting funding to the state’s ports.
He says the money could have been used to further fund austerity cuts to schools systems across the state.

“I don’t understand really why you would want to cut the one economic engine that’s continuing to purr along at double digit increases even during a slowdown in the economy. Now we will work with the House to ensure we get the highest possible number for the austerity cut, but they’re gonna have to look at the costs that we had to look at as well.”

The budget includes money for math mentors, and virtual language classes for students enrolled in the Georgia Virtual Academy. Ninety eight million in the Senate version 09 budget will fully fund Peachcare. There’s also 9 million to improve to rural health across Georgia, as well as $20 million for mental health hospitals.

Tourism and economic develop got a big boost in the 09 budget, with the Senate recommending 4-1/2 million dollars.

“This is a critical time in our state. It’s not a time to turn back in our investment in these important job producing areas. We don’t skimp right now on deal making funds. We need to get new job that we can,” says Hill.

What the budget does not include is revenue funding for trauma care. Senate lawmakers hope to do that by adding a ten dollar car tag fee.

Recently, Governor Sonny Perdue has expressed concerns about decreasing revenue, saying it might be necessary to tap into the state’s reserve fund during the coming fiscal year.

The budget now goes to a joint Senate/House appropriations committee before heading to the Governor for his signature.

SENATE APPROVES TAX RELIEF PLAN

By a vote of 46 to 7, the state Senate today approved a pair of bills aimed at providing tax relief to Georgians. The first would cut state income tax by ten percent. However, Governor Sonny Perdue has said he doesn’t like the income tax reduction plan, because it means decreased revenue at a time the state can least afford it.

From the senate floor, Republican Chip Rogers championed the measure, saying state lawmakers have two choices.

“Either we going to allow the people who earn the money to take care of their problems, or we are going to take it from them by force at a time when they can least afford it.”

A competing tax relief bill in the state House would eliminate the car tag fee.

If voters approve the tax reduction plan, it cuts 1.2 billion in state revenues.

Finally, the second tax relief bill approved by the Senate, would cap the rate by which property assessments could rise. It would also eliminate the state portion of property taxes.

Both measures require a constitutional amendment which voters would have to approve this November.

Salmonella Outbreak Highlights Inspector Shortage

Tight state budgets have led some of the biggest farm states to leave dozens of food inspection jobs vacant at a time when hundreds have been sickened by a nationwide salmonella outbreak tied to a filthy peanut processing plant.

Georgia, the site of the plant, has about 60 inspectors for some 16,000 sites, while budget cuts have forced the state agriculture department to keep 15 inspector positions vacant.

California, Texas and Florida are among other states facing the same problems while food experts say the federal government relies increasingly on states to monitor the nation's food supply.

"You can only shift the pawns on the table so many times before the game catches up with you," Georgia deputy Agriculture Commissioner Oscar Garrison told legislators earlier this month while asking for more money to hire inspectors.

The salmonella outbreak linked to Peanut Corp. of America has sickened hundreds, may have caused nine deaths and prompted one of the largest food recalls in the nation's history. Federal investigators have launched a criminal investigation, and Virginia-based Peanut Corp. faces mounting lawsuits and a bankruptcy filing.

Food safety experts warn each loss of an inspector increases the possibility that food problems could elude detection.

In the Georgia salmonella case, a state inspector found only minor problems when she probed the Blakely plant in October for less than two hours; less than three months later federal agents found roaches, mold, a leaking roof and other problems.

Almost every state legislature in the country is staring down budget deficits and scraping funds for schools, roads and other public safety areas, like prisons and police. Food safety is a tough sell.

"It's getting pretty dire out there," said Doug Farquhar, an analyst with the National Conference of State Legislatures. "With the salmonella scare, you'd think that now would be the time they'd say we need to invest in food safety. But the opposite is going on."

The belt-tightening comes at an inconvenient time.

The federal government increasingly relies on food safety inspections performed by states, where budgets for inspections have remained stagnant and overburdened officials have less training than their federal counterparts.

For officials in Georgia, the deadly outbreak has led to some soul searching.

Legislators have floated proposals to deputize county health officials so they can quickly pursue food safety tips.

And Georgia Agriculture Commissioner Tommy Irvin said his department will focus more on food safety inspections and less on other duties, such as monitoring out-of-date foods. Leading lawmakers say they hope to boost inspections, despite budget cuts.

Inspectors are "referees of the food game," said Joseph Hotchkiss, a food science professor at Cornell University who once worked for the U.S. Food and Drug Administration.

"There's no way for us as individuals to know much about our food — how it's manufactured and prepared — without these people we hire. And with fewer of those people, that could in general result in an increased risk."

(AP)

Click here for more GPB News coverage about the effects of the salmonella outbreak in Georgia.

Homestead, Furloughs and a Budget Crunch

Lt. Governor Casey Cagle says state employees may have to take work furloughs to make up a budget shortfall of 2 billion dollars. That is one option being considered as lawmakers consider cutting a property tax grant.

Cutting that grant would save the state about half a billion dollars. But Lt. Governor Cagle, who controls the state Senate, says he doesn’t like the idea of passing off the budget short fall to homeowners. He says all options, including agency cuts and furloughed workers, are possibilities.

"Quite candidly, it’s going to be very difficult to cut an additional 428 billion dollars out of the supplemental budget is not going to be easy…It’s going to be very difficult, but it’s something that we’re committed to doing. "

Some lawmakers are banking on the federal stimulus package to help the state through the shortfall. But other say until the money is in, they 're working with budget cuts.

DHR Commissioner Details Budget Pain

State budget writers today heard from the heads of Georgia's social services and health care.

B.J. Walker addressed lawmakers this morning. She’s in charge of the largest state agency , the Department of Human Resources. And it’s where the state budget crisis might be felt the most.

Walker has to manage an agency budget of around $3.8 billion. Her department was hit by the budget-ax last summer, and it’s bracing for more in the Governor’s recommendations for the next fiscal year.

"Given the times we’re in and what we have to work with, I’m comfortable the Governor put us through a rigorous enough process that what he has put on the table, is something I can figure out how to make work."

But, Walker did admit to lawmakers Friday the challenge of "making it work" will be tougher with heavier across-the-board cuts to come in fiscal budget year 2010.

Last summer, DHR began one-day-a-month furloughs for a bulk of its 19,000 employees. The state hopes the move saves more than $100-million. And more furloughs could be on the way. Cutbacks are everywhere in the department, with money being pulled from all services, such as children and family services, and programs for the elderly.

Mental health services are in the firing line also. The state just recently signed an agreement with federal officials promising the troubled system will be vastly improved in the next five years. The obvious question today to Walker--how to do that, given budget cutbacks?

"We know that we’ll probably need some sort of resources at some point. But we have not fully calculated what that need is at this time...we’re working that through right now, and I’m sure we’ll be bringing some ideas about that at some point."

Walker did say the option of privatizing at least a portion of the mental health system is still an option--if it makes sense fiscally.

As budget committee hearings concluded at the Capitol today, Walker may have delivered the best line in summing-up how she’s trying to manage her department’s budget.

"It is my intent to go through these times not worrying about is it raining, or worrying about how to get out of the rain, but it’s my intent to figure out how you can dance in it."

Legislative Day 38 ... from the Senate

TRANSPORTATION FUNDING
Dueling legislations have created one of this session’s most contention issues, as lawmakers try to find a middle ground on funding local transportation projects. On the House side, lawmakers suggest allowing local communities to come up with a list of priority projects for the DOT. From the Senate, the proposal calls for either a county or regional voter referendum so residents can decide if a t-splost is needed for a specific project. Republican Jeff Mullis chairs the Senate Transportation Committee. He says it appears House leaders brushed aside the Senate’s concerns. “We feel the House hasn’t taken us seriously at this moment, because they put their entire language back on to our offer. Well, they’ve got to move to middle before we can agree on anything.” If the two sides can come to an agreement, Georgians will vote this fall whether or not to amend the state’s Constitution for a one cent tax to vote to fund local transportation projects.

CONTROVERSARY OVER GRADY HOSPITAL
A bill that would have prohibited vendors or competitors from serving on Grady Hospital’s governing board passed in the senate on Tuesday. It does not apply to the current board of directors, but would to any future board members. The measure also strips away any oversight committee provision, for the financially trouble hospital. Democratic Senator Vincent Fort co-chairs the Grady Coalition. Fort accused other senate leaders of backing away from earlier commitments calling for an oversight committee. “Senator Shafer had made a commitment back in January when Grady was controlled by a predominantly African American board to create an oversight committee for Grady. Unfortunately, he’s backed away from that now that the board is dominated by wealthy, white businessman.” The measure also provoked heated discussion as a last minute floor amendment was added, prohibiting Grady from performing abortions on any paying patients.

LIMITED SUNDAY LIQUOR SALES
Lawmakers voted to boost local economic development by allowing some businesses sell alcohol on Sundays. One immediate beneficiary of the measure ... the proposed Triple-A Braves stadium in Gwinnett County set to open in summer 2009. Senator Renee Unterman represents part of the county. Her floor amendment – which the Senate adopted -- allows alcohol to be sold at the stadium on Sunday. However, Unterman stopped short of endorsing a repeal of the state’s blue laws. “My bill was in no connection to Sunday sales. Unfortunately, in the House, they connected the two. And, that was against my wishes. I said that mine was single issue and I wanted it to stay a single issue.” Under the bill, operators of approved regional economic assistance projects, or REAPS will be permitted to sell alcohol for consumption on site. Projects like golf courses and conference centers. The measure does not however circumvent the power of local governments to prohibit such sales.

WATER WARS, PART DUEX
Competition at the capitol on Tuesday over who should control local water resources in light of Georgia’s on-going drought. One bill proposed by the House would prohibit local governments from imposing tighter water restrictions than those called for by the state. The other --- a Senate bill -- would give local governments the power to impose or lessen additional restrictions over state regulations if a compelling reason exists. Republican John Bulloch chairs the Senate Agriculture and Consumer Affairs Committee. He says water restrictions fail to take local differences into account. “In a lot of cases, EPD has had a one size fit all for a large area. We have a lot of counties and water authorities that have adequate water and that’s not being considered.” The bill also requires the state’s Department of Natural Resources adopt regulations relating to drought management, which must be updated every five years.

TAX MEASURE PING-PONGS
(from the Associated Press)
House Republican leaders say they've found a way to settle the debate between two dueling tax plans: Adopt them both. House Speaker Glenn Richardson unveiled new versions of the two competing plans today, saying the state could afford the 2 billion dollars that the combined cuts would slash from the state budget. Richardson's plan to eliminate the car tag tax and freeze property taxes remains largely unchanged, although the newrevisions allow only Georgia residents to enjoy the tax breaks. It also removes a tax break sought by Governor Perdue that would have eliminated the state portion of property taxes, worth about 30 dollars a household. But House leaders for the first time signed onto a separate tax break pushed by Senate leaders that reduces the state income tax over five years. Under the new version, the cuts would not start until 2011. And the tax break could not be enacted unless the bill to eliminate the car tag tax is adopted. The two cuts would cost the state 2 billion dollars when they are fully implemented in 2015. There was no immediate comment from Senate leaders and the governor, who is on a weeklong trade mission in China. But Perdue has said the cash-strapped state can't afford either one of the plans. He's pushing for more than 300 million dollars in budget cuts to keep Georgia afloat as state tax collections slow to a trickle. He's accused his fellow Republicans of playing politics with the state's fiscal health.

Perdue Asks For More Budget Cuts In July

Governor Sonny Perdue is calling on state agencies to continue tightening their belts into the next fiscal year.

State revenue numbers are not expected to show much—if any—improvement into July. Because of that, Perdue spokesman Bert Brantley says a letter sent to agencies today is asking for voluntary cutbacks in budgets next month:

"The check they receive so to speak from the state for their July operations will be the full amount. We’re just asking them to continue doing the things they’ve been doing...hold back spending where possible. The hope is we will achieve a 3-percent reduction in July."

Brantley says in order to balance the end of this fiscal year, officials may have to tap up to $400-million of the state’s rainy day funds. That would leave little into going into fiscal 2010.

He says additional state budget cuts through 2010 are likely.

Martin says he's ready to take on Chambliss

When Jim Martin took over Georgia's Department of Human Resources in 2001, some friends were surprised. Running the state's unwieldy social services bureaucracy is seen as a sure ticket to political oblivion.

But for Martin it was a no-brainer.

"I've always taken the hard jobs where I thought I could make a difference," Martin said.

Labeled "a nice guy" by friends and foes alike, the bespectacled Martin is soft-spoken and almost professorial. Even supporters quietly worry he lacks the fire to make a serious run at Republican Saxby Chambliss in November. Martin, 62, already lost one statewide race - the 2006 contest for lieutenant governor - to Republican Casey Cagle.

Still, Martin insists that he's the best Democrat to defeat Chambliss and that he's up for the fight.

First he'll have to get past DeKalb County Chief Executive Officer Vernon Jones in Tuesday's runoff. Martin pulled 34 percent of the vote in the five-man Democratic primary held July 15. Jones earned 40 percent of the vote.

Martin has been portrayed as the hand-picked candidate of the Democratic leaders in Washington. He only entered the Senate race in April after being lobbied by party leaders who also pledged financial backing.

But Martin said he's no reluctant campaigner. He held out, he said, because he figured former Democratic Gov. Roy Barnes might enter the field.

"I knew what it was going to take to run statewide and I was willing to take that on because Saxby Chambliss needs to be defeated," Martin said in an interview with The Associated Press. "If someone with the stature of Roy Barnes had decided to get into the race there was no sense in me getting in."

He won his first campaign for the statehouse in 1982 - a 10-way race for a legislative seat representing parts of Atlanta. He went on to spend the next 18 years in the Legislature, rising to chair a key legal committee, while also maintaining a private law practice.

In 2001, his political track changed when then-Gov. Barnes called Martin to tell him that the state human resources commissioner had resigned.

"I said well, governor you need to do a national search but I want to apply. And the line sort of went dead he got so quiet," Martin recalled. "It was seen as a political dead end. But I had a passion for all of those programs."

He took over the department in September 2001 and soon had to implement deep budget cuts as the nation's economy struggled in the aftermath of the terror attacks.

Martin said he worked to streamline department operations, such as child support collections, to save money and help alleviate the impact of budget cuts on the children the department served.

But Jones and other political opponents have criticized Martin for heading the department at a time when children died under his watch.

Martin responded by saying those figures stayed flat while he was commissioner, and that he worked to make the investigations more transparent.

Normer Adams, executive director of the Georgia Association of Homes and Services for Children, praised Martin's leadership of the department.

"He was instrumental in moving DHR into the modern era when it came to child welfare," Adams said.

Still, Martin resigned under pressure following the beating deaths of two young children in state care. The deaths came after child welfare officials had received repeated complaints. He said he has no ill feelings about his departure and is proud of his tenure.

He said it's that experience - combined with his campaign for lieutenant governor - that prepared him for the Senate bid.

"I am plenty tough enough to take on Saxby Chambliss, make no mistake about it," he said.

(The Associated Press)

Click here for more GPB election coverage.

Lawmaker suggests merging black public schools

A state lawmaker told Georgia college leaders today they need to look at merging public historically black colleges with nearby white-majority schools to help meet budget cuts. Midland Republican Seth Harp suggested combining historically black Savannah State University with nearby Armstrong Atlantic University, and historically black Albany State University would merge with Darton College. Like most state agencies and departments, Georgia's public colleges are facing budget cuts of up to 10 percent this year. University system Chancellor Erroll Davis told lawmakers that such move would face strong opposition.

(Associated Press)

Lawmakers leave Capitol Armed with Budget Numbers.

State Lawmakers are heading home for a long weekend. They'll spend part of it combing through Governor Perdue's budget recommendations while fielding calls from worried constituents.

House Majority Leader Jerry Keen from St. Simons says he's already heard from his grandson's school nurse and his tax commissioner. They're not happy with proposed budget cuts to education and the elimination of the homeowner tax relief grants to local governments.

Without those grants some homeowners could pay 2 to 300 dollars more in property taxes. Keen says he wants to find a way to preserve the grants but warns that it will not be easy.

"It has to be a cooperative effort between both the legislative and the executive branch," he says. "Without that I don't know how to get there unless we have wholesale closure and shut down of departments."

Keen warns that Georgia's more than 2 billion dollar budget shortfall will be felt throughout the state. One lawmaker warned that if the budget were a patient it would not be a question of whether to amputate, but rather which limb to cut off. Lawmakers will begin Budget hearing next Wednesday.

GDOT cuts road repairs, instead of jobs

TV monitor at budget hearings showing page of proposed 2009 draft budget, Tuesday, Oct. 7, 2008. (Dave Bender)

Georgia Department of Transportation Commissioner Gena Evans today laid out proposals for recouping her department’s $456 million dollar deficit – in part.

GDOT has to cut that sum from the 2009 fiscal year, to make up for that sum in the '08 budget.

GDOT Commissioner Gena Evans holds up a folder containing the 2009 budget, at a meeting with the transportation board on Tuesday, Oct. 7, 2008 where she put forth budget-cutting proposals. (Dave Bender)

Among the tough proposals Evans offered the board was slashing over 500 jobs – a road not taken by the transportation board:

“Oh, we’re ecstatic. We’re really thrilled. I mean, to me, every time you saw a list from us, the last thing we wanted to do was lay off employees. It’s a very difficulty decision for the board between those state aid projects, that are local, community-driven projects versus laying off employees.”

Evans explains a point in the draft budget proposal to reporters after the GDOT transportation board session on Tuesday, Oct. 7, 2008. (Dave Bender)

Evans says a one-day employee furlough program was also ruled out.

GDOT spokesman David Spears, however, says the Local Assistance Road Program (LARP), which funds local and county road repairs, including pot holes, was among the major cutbacks the board agreed to:

“It’s a total of 52 million dollars that we’ll be unable to distribute to local governments in the coming year. We’re hoping we’re going to be able to identify new funding sources or new savings as we go from month to month in our budget process, and be able to redirect some of that money back into local assistance.”

Evans faced tough questioning from the board members during the morning session, including issues of protocol.

Board Member Dana Lemon, who represents the 13th Congressional District, chided Evans over forwarding the draft directly to the Office of Planning and Budget, without the board getting a look at it first:

Evans: “Ms. Lemon, I’m not sure when we would have possibly been able to get any more information…”

Lemon: “Gina, we get inundated all the time with stuff from you guys, so we could have seen it; we might not have been able to address it at a meeting, but we all could have at least looked at it, reviewed it…”

Officials say that rocky interchange is but a verbal example of the bumpy road drivers can expect on Georgia’s highways and interchanges in the coming fiscal year.

Click here for more GPB News coverage of GDOT and other transportation issues.

Proposed cuts to social services, higher ed

Georgia's social services programs face deep cuts. Today the board of the Department of Human Resources approved the cuts following a directive from Gov. Sonny Perdue to slash spending. Georgia is facing a 1.6-billion-dollar budget shortfall. Among the programs that could be cut are waivers for mentally disabled adults which allow them to move from institutional settings into home care. There would also be cuts to the state's mental health system and substance abuse programs.

Also today the state Board of Regents approved its budget cut proposals. They include lay-offs and a hiring freeze, hiking student fees and health insurance premiums for employees, and revoking guaranteed tuition rates. The Governor will look over all agencies’ proposals and make final budget cut decisions this fall.

Perdue Slashes State Budget -- Again

Georgia's state agencies will get about 25 percent less money in June so the state can balance its budget for the year. Governor Perdue lowered the budget estimate for the fiscal year by 247 million dollars. Education will not be effected by the cuts. Instead, the state will use stimulus money intended for 2011 to fill the gap. Bert Brantley is Governor Perdue's spokesperson.

"This is the fourth time that we've reduced the 2009 revenue estimates. As you can see, it's been a really unprecedented economic time. The hit to revenues has been tough and has been the pit that we weren't fully expecting. We had projected certainly a dip but not to this level."

Brantley says most state agencies have been preparing for the cuts already. Governor Perdue sent a letter to state lawmakers to inform them of the cuts as Georgia continues to grapple with plummeting tax collections. The Governor lowered the amount the state may spend to keep from running over budget for the fiscal year set to conclude June 30.

Millions cut from state schools' pockets

Georgia's 35 public colleges and universities can expect to share $135 million in budget cuts. The state Board of Regents approved the 6 percent reduction plan at a Tuesday meeting. The cuts are part of a statewide strategy to deal with an estimate $1.6 billion budget shortfall in the fiscal year that began July 1. For colleges and universities, the cuts mean freezing hiring and travel, not replacing old equipment, cutting the number of books and magazines in libraries and delaying new academic programs.

(Associated Press)

School Board in Augusta Set to Furlough Employees and Cut Teacher Pay

The Richmond County school board has passed a $225 million budget for the upcoming fiscal year, making up for a projected $24.5 million shortfall with employee furloughs, cuts in teachers' pay and reductions in teaching staff.

Many of the system's employees will face a furlough of four days -- and therefore cuts in pay. Teachers, who by state law cannot be furloughed, will still take a pay cut in local salary supplements they receive from the school board.

Dr. Dana Bedden, Richmond County schools superintendent:

"Please accept my apologies for any difficulties and hardships the furlough may create. While the furloughs were not something I would preferred, I really believed they were better than layoffs."

Bedden noted that about 90 percent of the school system's budget is personnel costs.

Despite the furloughs and pay cuts, many teachers and employees will still receive pay raises mandated by the state. The raises, known as step increases, will cover a portion of their incomes that they would otherwise lose with the furloughs.

The board is also eliminating several teaching positions through attrition and the non-renewal of some teacher contracts.

The budget comes as school systems across the state grapple with major funding issues due to the troubled economy and significant losses in revenue.

For more information about the budget, click here.