Biomass Plants to Boost Rural Georgia

A power company that serves four million Georgians is investing in renewable energy by building two biomass plants in the state. For two rural communities in south Georgia, it's a boost to the

Oglethorpe Power plans to build biomass plants in Appling and Warren Counties. The company hopes to break ground by 2011 pending state permits. Officials estimate it will create 250 temporary construction jobs at each site.

Once built, each plant would be fueled by wood and employ about 40 people. It would have a ripple effect on the local economy, says Dale Atkins with the Appling County Development Authority. "It's going to have a tremendous impact on our forest industry. Timber land is 70 percent in the county... this will create 500 jobs in the forest industry."

These counties were chosen in part because they are wood baskets. Company officials say the plants should come on line by 2015, and they're considering a third site in Echols County..

Economist: Effect of Stimulus Dollars Months Off

Federal stimulus dollars are starting to roll into Georgia. But it could be a while until the money helps the state’s economy. Funds from the American Recovery and Reinvestment Act are ramping up state projects like making buildings more energy efficient to building roads.

They’re creating jobs and that means more tax dollars. But it could be months until we see its effect on revenues.

"Part of it is the lag when the cash comes in and it shows up in paychecks and spending," said professor of Economics at Mercer University Roger Tutterow, "and then of course there’s a lag between when that occurs and the state actually gets their cuts and reflects it in their tax revenue collections."

Case in point, the Department of Transportation. It got $62 million in May, and the first of 41 projects just started last week--- workers began repaving a road south of Atlanta. The project allowed a state contractor to keep 25 employees and create 3 new jobs. DOT officials do expect the remaining 40 projects to begin this month.

Officials Get First Road Stimulus Project Rolling

The first of hundreds of road projects injected by federal stimulus dollars got rolling today in Georgia.

A four-mile stretch of highway in Hapeville near Atlanta’s airport is the inaugural project. The resurfacing work represents more than $900,000 of the state’s transportation stimulus share. Once all projects are allocated, over $900-million will be used in work across the state.

State and federal transportation officials at Tuesday’s press conference trumpeted the creation or preservation of hundreds of jobs with the stimulus. But Governor Sonny Perdue says the state needs to have a long-view plan on managing budget issues once the well of stimulus money runs dry:

"If you become dependent on them, there are going to be tough decisions in the future. So we’re trying to manage state government in a way of transition—using these federal stimulus funds, but hopeful that our state economy will recover soon."

The rollout of additional road projects continues over the next few weeks and into the fall. Thus far, a combined $119-million in work has been awarded.
State officials say another $250 million will soon be certified to round-out Phase One of money from the American Recovery and Reinvestment Act. By fall, it's expected Phase Two money to be awarded will total $370 million.

Expos Aim To Spur Georgia Business, Housing Industries

Navigating a tough economy in the world of small business and the housing industry is the focus of a series of expos running through Saturday.

The events are designed as a type of one-stop shopping for entrepreneurs, realtors and bankers, among others. Organized by the Georgia Department of Community Affairs, the aim is to connect those groups with the latest information and tools from the local, state, and federal levels.

Yancey Gulley is with Athens Technical College, one of several schools hosting the expos:

"There will be booths from small business, government to government assistance, and housing assistance. And then throughout the day, we’ll have workshops going on as well."

Athens Tech, along with tech schools in Atlanta and Calhoun are staging expos Saturday from 9-to-5. Events are wrapping-up today in Warner Robins, Hinesville, and Albany.

The Drought is Finally Over!

The state's worst dry spell in the last century has finally ended. Thanks to the second wettest spring in more than a hundred and ten years, the drought which has gripped parts of Georgia since summer 2006 has is finally over.

But more importantly say state officials, Georgia has returned to rainfall patterns recorded in the early part of the century. However, even with rivers flowing and reservoirs at or near capacity, all that good news is tempered with a bit of caution.

State climatologist David Stooksbury.

"There's been this perception that we've had this tremendous amount of rainfall over the last six months. In reality, we've had near normal rainfall over much of north Georgia. I think the fact that it’s been so dry, we have forgotten what normal rainfall is like. Now, South Georgia has been extremely wet and there are allot of fields sitting in water still in South Georgia. But here in North Georgia, the Athens area, the Atlanta area, near normal for the last six months."

At the height of the drought, lawmakers passed House Bill 1281, enacting tough water restrictions. Residents exceeded expectations cutting back water consumption by 10 percent. Five percent more than was called for.

Carol Couch heads Georgia Environmental Protection Division.

"Georgians did more than simply follow some state rule. At the end of the day, we cannot simply explain this consistent decrease in water use through this period by regulation alone. To me, it is a tribute to every Georgian in the 55 county area that chose to do the right thing."

The timing of the drought happened at the same time the country's economy hit the skids. And that hit Georgia's 8 billion landscape industry squarely in the pocket.

Sherry Loudermilk is executive director of Georgia's Green Industry Association.

"We lost about thirty five percent of our industry. And it’s been very difficult. There have been many who have hung on and some have just gone out of business this past spring. its been very difficult in most of our industry is still family oriented and if there were employees there, they were like family and having to terminate those people has been very difficult."

With the recent drenching things may be looking up for nurseries.

Jeff Hunter is a spokesperson for one of the nation’s largest …. Pike Nurseries. He’s says the slow economy has more people looking to save water and money.

"There's been an upturn in the past couple of years of rain harvesting, you know rain barrels, drip irrigation and more conservation of water. So it’s helped with new techniques anyway."

Last year, the Georgia legislature passed a measure establishing a study committee dedicated to formulating a statewide water plan.

Former Lt. Governor Pier Howard says now it’s up to the next administration to develop a long range conservation plan Georgians can live with. Howard now heads The Georgia Conservancy.

"I think what Georgia needs going forwards is an overall policy. We need input from all the different sectors. We need all the voices at the table, but we need a new policy in Georgia for water efficiency and water conservation."

Georgia Gazette Monday, June 8, 2009

Join host Rickey Bevington tonight for Georgia Gazette. On tonight's show… Luring businesses like tech giant NCR to the state via tax incentives… does it work in the long run? And most Georgians can say so long to the electric meter reader, and hello 21st century… A technology that could help people save energy. The art of tattooing... a boon in Augusta despite the economy. Plus, your chance to win free parking at state parks. These stories and more tonight on Georgia Gazette at 6, 7 in Athens, re-broadcast at 11, hear our show any time at www.gpb.org/georgiagazette , and download a free podcast on iTunes.

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.

Athens One Of Best In U.S. To Live

There is more national recognition for a northeast Georgia city. Athens has been rated as the 5th-best place to live in the U.S. Kiplinger’s Personal Finance magazine compiled the list, noting that while southern charm clings to the streets, the air is charged with change. The magazine also points to the city’s relatively low unemployment rate of 6.3 percent in this tough economy. Last month Athens took a ranking of #7 nationally by Forbes magazine as one of the best cities for jobs.

UGA Foundations Absorb Financial Hit

Student scholarships are among the programs targeted for cutbacks at the University of Georgia given the school’s financial losses in its private foundations.

The UGA Foundation and Arch Foundation have lost a combined 180-million dollars in one year’s time due to the weak economy. That represents a decline of about 25-percent of the combined worth of the foundations from June of last year.

A UGA-official says the university will have to cut dozens of scholarships, research support and other programs to make up the shortfall in funding.

Athens Regional Looks To Cut Millions

One of the bigger hospitals in the state needs to cut millions of dollars from its budget in order to stay afloat. The financial struggles of Athens Regional Medical Center are much like other health care facilities across Georgia trying to hang-on.

Officials with Athens Regional are considering all options in trying to reduce costs, but yet spur new revenue. The Athens Banner-Herald says the hospital needs to cut $14-million from its budget, and layoffs may have to be part of the plan. The hospital employs 2,500 people full-time, with another 500 part-time.

The weak economy has affected hospitals and health care centers everywhere in Georgia, whether in large urban, or small rural areas.

Kevin Bloye is with the Georgia Hospital Association, which represents 170 hospitals and health care systems:

"We did a survey among our membership the first part of the year and we found three out of four hospitals in the state are experiencing pretty severe increases in bad debt and charity care since October of '08."

A spike in un-insured patients, and dramatic fall in money-generators like elective procedures are part of the equation.

Bloye says federal stimulus dollars in the state budget propping-up Medicaid is helping.

JOBS Act Threatened by Declining Revenue

Although Federal Reserve Chairman Ben Bernanke predicts the nation's economy could begin to improve sometime later this year, here in Georgia state revenue is still on the decline. And, that could mean trouble for a proposal to give tax credits to some businesses.

Earlier this year, the state legislature approved a measure intended to put Georgians back to work. The so-called Job Opportunity and Business Success Act includes a tax credit for hiring and keeping someone twenty-four months.

It sounded like a good idea, considering Georgia's unemployment rate currently stands at 9.3 percent. But, at the last minute lawmakers added a provision that removes the capital gains tax on investments. And, that’s why Governor Perdue is hesitant to sign the bill into law, because he says the state is already running a deficit.

"Georgia is a balanced budget state. And, it's very difficult to do the stimulus type bills in a state that's starved for revenue and cash at the same time. That kinda destroys a supply side theory within a state government because you can't afford that period of time before the supplies kicks in."

The Governor has until May 13 to veto or sign the legislation. Meanwhile, officials April revenue numbers aren't in yet, but Perdue says things don't look good.

Tourism up in Columbus

The bad economy didn't prevent a banner year for tourism in Columbus. WGPB's John Sepulvado explains.

One point one million visitors came to Columbus in 2008, according to a Columbus State University study. on average, the visitors spent almost 365 dollars ---It is the first time the area has cracked the million visitor threshold.

Peter Bowden, with the Columbus Convention and Visitors Bureau says local leaders were able to see the poor economy coming and adjust it's strategy.

"I think one of the key things we did is getting out in front of gas prices," says Bowden. "We were doing staycations before anyone knew what a stay cation was. "

Tourism is the second largest industry in Georgia, key to keep arts and cultural and even recreational enties strong as a way to draw people.

Many other caluclations around the state are not out yet. As for Bowden, he says if the same number of visitors come to Columbus this year, he'll be happy. After all, he adds---in this economy flat is the new up.

Miley Cyrus Heading to Georgia

Governor Sonny Perdue announced today that Savannah will be the filming location for the upcoming Disney film, The Last Song. The movie is expected to bring approximately 250 jobs to the state.

“I signed the 2008 Entertainment Industry Investment Act in support of our efforts to recruit film, music and digital entertainment projects to Georgia,” said Governor Perdue. “These industries are thriving and growing, boosting the state’s economy and employing thousands of Georgians.”

The script was written by noted author Nicholas Sparks. The production of the film will take place in Savannah and other nearby coastal locales. Julie Anne Robinson will direct The Last Song which is expected to start production in Georgia in mid-June and be completed by mid-August, 2009. Producer Dara Weintraub also produced another film in Savannah called The Clearing, which starred Robert Redford, Willem Dafoe and Helen Mirren.

Georgia’s new, more competitive incentives offer a 20 percent tax credit for qualified productions, which are then eligible for an additional 10 percent tax credit if they include an animated Georgia promotional logo within the finished product. The incentive covers more than just the film and television industries. The program also offers credits for commercials and music videos, as well as the first incentive in the nation to cover other areas of development including animation, interactive entertainment and video game development.

Nine feature films, two television series and one television pilot were produced in Georgia in the first quarter of 2009. A Sony Pictures produced television series began production in Georgia in April and three feature films are currently in production. Seven more feature films are slated for the state in the coming months.

The Film, Music and Digital Entertainment office, a division of the Georgia Department of Economic Development, assists local, national and international entertainment industries with expertise and resources. The staff points movie production companies to Georgia’s highly-trained crews, state-of-the-art facilities, and diverse locations. Georgia’s temperate climate and easy access afforded by Atlanta’s Hartsfield-Jackson International Airport, are also factors that attract the industry’s interest.

Since the inception of the office in 1973, more than 600 major motion pictures, independent films, television series and pilots, and TV movies have filmed on location in the state. As a result, over $5 billion dollars has been generated for the state’s economy.

Miley Cyrus is expected to star in the film.

(Governor's office news release)

More Furloughs For Savannah's Gulfstream

Gulfstream in Savannah says another 170 workers are being furloughed amid down sales in the struggling economy. A spokesman for the Georgia business jet maker says those furloughs will run through April 19th. Back in March, Gulfstream announced it would furlough at least 1,500 workers for five weeks starting in July.

6 Georgia dams getting fixed in stimulus plan

The federal stimulus is shoring-up some East Georgia dams. U.S. Agriculture Secretary Tom Vilsak said Monday, his Department will spend about $6 million from the recovery package to fix six dams, three each in Jackson and Madison Counties, near Athens.

"Many dams and important flood control structures across the country are in a race against time when it comes to their ability to protect people and property from flooding," Vilsak said. "This funding is going to projects to avoid the risk of infrastruce failure and the threat that would represent to life and property."

The dams in question include those on the Sandy, Little Sandy and Marbury Creeks and on the South River. Vilsak says, the projects will create 168 jobs, protect 216residents and pump $14 million into the economy. In total, 11 states are getting $45 million in stimulus funds to rehabilitate aging dams. The state of Georgia is kicking in about $3 million for the Georgia projects.

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Legislative Round-up: Bills Passed Final Day

The 40-day session came to a close, Friday. Here's some bills that passed the finish line before the gavel came down.

Georgia Budget 2010

The $18.6 billion state budget slashes about $1 billion in spending because of the lagging economy. The Senate's top budget writer said agencies will see an average cut of about eight percent. The plan voids increasing health insurance costs for state workers by tapping federal stimulus dollars to pay for Medicaid, the health program for the poor that's seeing enrollment soar as the economy worsens. The budget covers the fiscal year beginning July 1st.

Transportation

Lawmakers agreed on a separate transportation overhaul that would give state politicians vast new control over infrastructure dollars. The transportation makeover, which passed the Senate
33-22, comes after heavy lobbying from Republican leaders who argued that granting the governor and lawmakers new powers over transportation funding would help transform a dysfunctional bureaucracy into one that is more accountable to voters. However, no new funds for transportation were passed.

Tax Breaks

Lawmakers approved a sweeping new tax break that cuts the state's capital gains tax in half over two years. A capital gain is the difference between what you paid for an investment and what received when you sold that investment. Investments include mutual funds, bonds, stocks, options, precious metals, real estate, and collectibles.

The measure also doles out a $2,400 income tax credit to any business that hires someone who has been unemployed for at least four weeks. It creates a one-year "new business holiday" that waives the $100 filing fee for new businesses. Those efforst are aimed at encouraging businesses to hire new employees, but critics say the capital gains cuts would rip an even greater hole in the recession-ravaged budget and would benefit only the wealthiest Georgians.

Tax Delinquent Lawmakers

Georgia lawmakers who fail to pay taxes could soon face sanctions from a legislative committee.
The House and Senate each overwhelmingly passed measures late Friday that would allow their chambers' respective ethics committees to investigate and sanction legislators who fail to pay
their taxes.

The vote comes after the state Department of Revenue revealed that 22 state lawmakers - about 10 percent of the General Assembly - are delinquent on their taxes. Only three of those lawmakers' names have been made public. Legislators said they cannot consider sanctions unless they know who they are.

Voting Checks

Georgia lawmakers voted Friday to require prospective voters to prove they are U.S. citizens before they cast their ballots. Georgia would become the second state with such requirements. Only Arizona requires its residents to prove they are U.S. citizens to register to vote.

The measure, which passed the House by a 104-67 vote, would require voters to prove their citizenship using a passport, a driver's license or other documents. It now goes to Gov. Sonny
Perdue.

Access to Flu Vaccines

Pharmacists would be able to continue administering flu vaccines under legislation that cleared the Georgia Legislature. The "Access to Flu Vaccines Act" received final passage on Friday.

It allows doctors to enter into agreements with pharmacists and registered nurses to order and dispense the shots without each one needing a separate prescription.

Governor Sonny Perdue said the bill was needed to prevent confusion among pharmacists about whether they could dispense the shots. Perdue said the bill makes it easier for Georgians to receive their yearly flu shots.

(The Associated Press)

Top Army Brass Tell Hinesville To Get Ready

All over Southeast Georgia, you can find housing developments and subdivisions that never quite materialized as planned. Call them the empty shelves of the recession. Today, officials from the U.S. Army came to Hinesville to tell local officials and business leaders that their shelves will be stocked.

"I'm telling you, it's happening," says Maj. Gen. Tony Cucolo, commander of the Ft. Stewart-based 3rd Infantry Division. "It's coming."

It was two years ago when the Army announced plans to add another Brigade Combat Team to Ft. Stewart. That means 3,400 new soldiers and about 7,000 new civilians. Yesterday and today, top Army officials, 3-star generals, came to Ft. Stewart to get progress and share details about the expansion.

Maj. Gen. Cucolo also wanted to use the presense of high-ranking Army officials to reassure locals. "One of the outcomes of today for me was to just double check that the 5th Brigade Combat Team is on track to happen as we have been saying it's going to happen," says Cucolo. "And it is."

The reassurance could be important to banks, who are anxious about lending, and builders, who are anxious about building, in the current economic downturn. Army officials say, only 20% of the new combat team's soldiers will be housed on post.

So, the new soldiers will need off-post housing. And then there are the new schools to build, the new roads to fund and the new doctors to attract.

The base already is adding new on-post facilities, including day care centers, recreation centers and shops. "I mean, by the first of October, we will have executed or be in the middle of executing almost a half a billion dollars worth of construction," says Maj. Gen. Cucolo. "I know people are looking at the economy across the nation. In Southeast Georgia, this is a growth industry."

About 70% of the new brigade should be in place by October.

"I think what you've seen today is a commitment from the Army leadership with the decisions that have been made and the money that's into this institution as we speak," says Dave Tindall, the Army's top Southeast region infrastructure official. "And what you're going to see in the years forthcoming, you're going to see a lot of that place to maintain it as an enduring installation."

The arrival Fifth Brigade Combat Team, to be complete by 2011, won't be the first time coastal Georgia has boomed with the military. Area businesses and surrounding communities experience a boost every time 3rd Infantry Division soldiers return from overseas.

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Lawmakers Approve Sudan Punishments

The Georgia Legislature has signed off on a proposal that seeks to hinder Sudan's economy. The House unanimously passed a measure Thursday that would ban state and local governments from contracting with companies that work in Sudan's oil, military and energy sectors. Supporters say it would send a strong message to the government of Sudan, where more than 200,000 people have died and millions have been chased from their homes in Darfur amid conflict between ethnic African rebels and the Arab-dominated Sudanese government. The proposal now goes to Gov. Sonny Perdue.

(Associated Press)

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.

More Stimulus Money Coming to Georgia

Millions in additional stimulus dollars are heading to Georgia. The Department of defense received close to 6-billion dollars to fund construction projects here at homes as part of the American Recovery and Reinvestment Act. Georgia's military bases will share in close to 130-million dollars of that money.

The money is separate from the stimulus funds the state is getting. Bert Brantley is with Governor Sonny Perdue's office. He says the money will flow directly to federal installations.

"Those funds will obviously be spent in the economy. They will improve federal buildings. They will go to improving the way the efficiency of some of those buildings, some energy projects, and be spent on defense projects as well, which is good for our economy."

Many of the projects are focused on making the military more energy independent. DOD construction planned in Georgia includes a 10-million dollar barracks renovation at Ft. Benning, 14-million for a new utility building at Ft. Gordon, and a 4-million dollar runway at Robins Air Force Base.