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.

Contribution Reports Due Out Tuesday

All state, county, and local candidates for office must file financial disclosures Tuesday. These disclosures could give statewide candidates a boost heading into the fall.

None of the candidates for statewide office are expected to smash fundraising records this quarter, with the economy in a slump and a diverse field of politicians seeking various open seats, including the governorship. Yet, a strong surprise showing in contributions could boost a dark horse candidate into serious contention, while a poor showing by a front runner could cast doubt on their campaign. Also, lesser known candidates could be sunk early if they fail to show their ability to raise money to fund a statewide campaign. According to the State Ethics Commission, which tracks campaign contributions, Republicans have out raised Democrats so far this year by about a 2-1 margin, with the vast majority of the money collected by both parties coming from Fulton County.

Find a handy little map breaking this year's contributions here.

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.

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.

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.

UPS Ponders Cuts

UPS is seeking $40 million in cost savings this year from its pilots, and the pilots union is looking for alternatives to furloughs. UPS says the union is considering leaves of absence, early retirements, reduced-pay-guarantee routes and job sharing. About 300 pilots could be furloughed, or idled, if Atlanta-based UPS doesn't get the savings it says it needs. That's 10 percent of the 3,000 pilots represented by the union. The company says the severe downturn in the global economy has caused UPS package and freight volumes to decline. Company spokesman Michael Mangeot says UPS expects to know in early June if the volunteer effort at cost savings is successful.

(Associated Press)

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.

Job Cuts at Savannah Area Schools

The Savannah-Chatham County public school system has cut the jobs of 23 employees, and it expects to cut a total of 234 by June. School board chairman Joe Buck said Wednesday the cuts had to be made because of the economy. The 23 were certificated teachers filling administrative positions that the district does not expect to restore. The school board was legally required to notify them that their contracts will not be renewed before the state's Friday deadline. The bulk of the cuts - more than 200 teachers and non-contract employees - are expected to occur in June. Wednesday's cuts included four assistant principals.

(Associated Press)

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.

MARTA Threatens Service Cuts

Atlanta's transit agency is considering eliminating service by one day a week to meet a $24 million budget shortfall. MARTA's board met Monday to discuss the budget crunch. The state Legislature wrapped up its 2009 legislative session on Friday without passing a bill that would have given MARTA more freedom in how it spends its own money. MARTA has a $65 million reserve for capital projects but is prevented by state law from dipping into that fund to help offset a $20 million shortfall. Most of MARTA's funding comes from a sales tax in Fulton and DeKalb counties. But those revenues have plummeted in the current weak economy. MARTA's board is expected to vote on the cutbacks later this spring.

(Associated Press)

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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