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."

Kia Plant an Example of Jobs, Job Losses

Kia Motors assembly plant and new access road, along I-85 between West Point and LaGrange, Ga., December, 2008. (Dave Bender/file)

As state unemployment rates soar to the highest in a quarter-century, west Georgia is seeing both business development -- and recession over the new Kia auto plant under construction at West Point.

KIA and state officials unveil Now Hiring! sign at ceremony at West Georgia Technical College, Jan. 8, 2008. (Dave Bender/file)

The Latest Georgia Department of Labor statistics say almost 400,000 Georgians are looking for work.

Jobless numbers for December doubled to over eight percent since the same period the previous year.

In Columbus, a prospective Kia supplier is canceling a planned facility after changing owners. That plant would have brought 350 jobs to the city to make car parts.

Despite the gloomy figures, Mike Gaymon of the Columbus Chamber of Commerce says west Georgia will weather the recession better than much of Georgia:

"Within the next couple of quarters, you'll see the economy in our region start to come out quicker than the state; which will probably be followed sometime later on in 0-10. So, based upon all the primary jobs that will be coming into play, over the next several months, and within the next six months to a year, our economy we think is poised to be a bright spot in our state and in our region."

One signpost of that recovery is the announcement by another Kia supplier, who plans to open a seat-belt plant in West Point, that will employ 50 people.

Kia officials say the assembly line is scheduled to open in the fourth quarter of '09.
Signs of the times in west Georgia. (Dave Bender)


Click here for more GPB News coverage about Georgia's economy.

Dire economy led Georgia news in '08

The vast economic crisis has left scores of Georgia's houses empty, its banks shuttered and sent thousands of its residents searching for jobs even as its unemployment rate balloons to heights not seen since Ronald Reagan was president.

The nationwide recession was the top Georgia news story of 2008, according to state editors and news directors voting in The Associated Press' annual survey.

Other stories high on most lists included an energy crisis that sent gas prices on a roller-coaster ride, the U.S. Senate runoff that thwarted Democratic plans for a super-majority in the Senate and the months-long trial of courthouse gunman Brian Nichols.

Yet the economic doldrums was the top choice for seven of 12 Georgia AP members participating in the news cooperative's survey.

Georgia residents began feeling the economic fallout early this year as a growing number of homes remained unsold and credit grew tighter. Firms fired workers, governments furloughed staffers, foreclosures spiked and the state unemployment rate soared to 7.5 percent - the highest in 25 years.

The bleak economy forced regulators to close down five state banks, and led Gov. Sonny Perdue to order spending cuts of at least 6 percent to narrow a deficit that could top $2 billion in 2009.

The new year is unlikely to bring much relief. State economists warn unemployment will climb higher and housing prices will continue to plummet through the first half of 2009.

Volatile energy prices were the No. 2 story of the year. The topsy-turvy fuel market sent the price of crude soaring to as high as $150 a barrel in July before crashing to $33 this month.

The jump in prices, which soared after Hurricanes Gustav and Ike shuttered Gulf Coast refineries, sparked panic among Georgia drivers. Gas stations advertised fuel at $8 a gallon, while some drivers camped out at gas stations to be first in line for new deliveries.

Georgia's seemingly endless U.S. Senate campaign notched the No. 3 spot.

Residents headed to the polls four times to vote on the Senate contest, beginning with the July primaries and ending with a Dec. 2 runoff when Saxby Chambliss was elected to a second Senate term. The Republican's victory over Jim Martin deprived Democrats of a 60-seat filibuster-proof majority.

The conviction and sentencing of Brian Nichols for a deadly shooting spree that began in the Fulton County Courthouse was the year's No. 4 story.

After more than three years and a tangled trail of legal delays, a jury found Nichols guilty of murder. But it deadlocked over whether he deserves the death penalty, forcing a judge to sentence him to life in prison without parole. Now some legislators are intent on changing the state's death penalty rules.

The stubborn drought still squeezing parts of the state emerged as the No. 5 story of the year. While a soggy December helped elevate most of the region from the epic conditions, much of north Georgia - including devastated Lake Lanier - remains in a "severe" drought.

The No. 6 story was the deadly explosion at the Imperial Sugar refinery in February near Savannah that killed 14 workers and injured dozens more. Investigators determined the blast was caused by sugar dust that ignited like gunpowder in the plant's storage silos.

The presidential election, which dominated national headlines, was voted the No. 7 story in Georgia. Democrat Barack Obama's campaign recruited thousands of volunteers focused on turning the state blue, but Republican John McCain managed to claim Georgia's 15 electoral votes.

The No. 8 story of the year broke just hours after New Year's Day.

Meredith Emerson was abducted while walking with her dog that day in the north Georgia mountains, and police later found her body. Authorities soon arrested Gary Michael Hilton, who is now serving a life sentence after pleading guilty to her murder.

The Delta Air Lines merger with Northwest Airlines took the No. 9 slot, as the combination made the Atlanta-based carrier the world's largest airline. It completed a remarkable turnaround for Delta, which had filed for bankruptcy in 2005.

Clayton County's education woes was the year's tenth-ranked story. The Southern Association of Colleges and Schools revoked the county's accreditation after it failed to meet a range of recommendations. More than 3,200 students have since bolted.

Stories close to making the list included convicted murderer Troy Davis' efforts to get a new trial and avoid execution, a legislative session that again ended in gridlock and an explosion at a Dalton law firm that killed the person responsible and injured four others.

(AP)

Obama evokes MLK , seeks 'mandate for change' in Georgia

Democratic presidential hopeful Barack Obama said Monday he doesn't just want to win the White House -- he wants a mandate. And that includes competing in Georgia, a state that hasn't awarded its delegates to a Democrat in 16 years.

"I intend to win right here in the great state of Georgia," Obama told some 300 donors.

They had paid a minimum of $2,300 apiece and crowded into the upscale Atlanta restaurant 103 West to hear him speak. It was the first of two Atlanta fundraisers the Illinois senator headlined Monday night to stock his campaign warchest for the coming general election battle with Republican John McCain.

Obama evoked the Rev. Martin Luther King Jr. in his hometown, warning Democrats not to forget "the fierce urgency of now."

"We want a mandate for change and we're not just going to run in the same old states and have just everything hinge on Florida," Obama said.

"We're going to try and transform this political map."

He will host a town hall meeting today on the economy in the GOP stronghold of Cobb County.

Georgia Republicans went on the attack against Obama before he'd even arrived in the state. In a conference call with reporters, Georgia's two U.S. senators -- both Republicans -- blasted the Illinois senator on taxes, gas prices and the war in Iraq.

Saxby Chambliss and Johnny Isakson said Georgians need to know about Obama's voting record, which they allege is out of step with many of the state's conservative voters. The Georgia Republican Party also issued a blistering press release taking aim at Obama's decision to forgo public financing for his campaign, among other things.

There's been talk that Georgia could be up for grabs in the November general election. And in South Carolina, two of Obama's top supporters said Monday he would put paid staff on the ground there, in another break with the recent Democratic strategy of bypassing a GOP-dominated state in the general election.

Isakson predicted Monday that Republican candidate John McCain would carry Georgia. He said the Obama camp is touching down in the state in what will be a futile attempt to engineer a win in Dixie.

"I think they would like nothing better than to crack a Southern state," Isakson said.

Chambliss, who's running for re-election this year, praised Obama for bringing new voters into the process.

"I have to commend him for that," Chambliss said. "But we want to make sure that people understand really how this guy has voted and what he stands for."

A spokesman for the Georgia Democratic Party said it was telling that Republicans launched such a coordinated offensive against Obama.

"Don't let our senators fool you -- Georgia is not as red as they would have you believe," Martin Matheny said.

Obama on Monday also received a plug from Georgia Democratic U.S. Senate candidate Vernon Jones on Monday who praised him for battling in the state unlike some previous Democratic presidential candidates "who wrote the South off."

The last Democrat to carry Georgia in a presidential contest was Bill Clinton in 1992.

Jones' comments came a few days after a mailer from his campaign made waves with the Obama camp. The flier featured a composite picture of Jones and Obama under Obama's signature slogan: "Yes We Can!

The Obama campaign issued a statement which said "despite what this mailer inaccurately suggests, Sen. Obama will not endorse a candidate in the U.S. Senate primary in Georgia." Jones brushed aside such criticism on Monday and said the flier merely shows that he's supporting Obama.

Jones volunteered that he can help Obama.

"For Sen. Obama to win Georgia he's going to need conservative Democrats like myself, obviously that's the great need," Jones said.

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)

Governor bullish on GA economy

Governor Sonny Perdue was decidedly optimistic about the economic health of the state, as he addressed business leaders at the 25th annual Economic Forecast Luncheon in Atlanta today. And, although UGA economists predict a rocky start to the new year, the state's chief executive officer says he's bullish on Georgia's economy.

However, Perdue was careful to balance his optimism with a bit of caution.

"We cannot stick our heads in the sands and assume that the housing troubles may not affect Georgia. We'll always have challenges in the airline industry. But our economy is dynamic, it will follow and lead the national economy in many ways."

Experts at UGA's Terry College of Business say despite this year's record breaking - and costly -- drought, the state's economy will continue to outpace the national average. Just not by as much as in previous years. A spokesperson for UGA's business school, says the state can expect an economic growth rate of 1.1 percent in 2008 versus a 1.3 percent growth rate for 2007.

State University System is strong economic engine

A new report shows the state’s university and college system is a strong and growing force in Georgia’s economy.

The study indicates that Georgia’s 35 public colleges and universities have an 11-billion dollar impact on the state’s economy. Of that amount, the University of Georgia in Athens contributes 2.1 billion, or 19-percent of that figure.

The report was released by UGA’s Selig Center for Economic Growth.

What’s more, living in or near a college town in Georgia can be good for your financial situation. Jeff Humphreys is director of UGA’s Selig Center:

"Our universities and colleges tend to be very stable sources of economic impact and sources of employment. They tend to do fairly well even during periods of economic recession, so it’s a very good economic stabilizer to be a college town".

For example, in Athens, Humphreys says more than half of nearly 20-thousand university-related jobs are off-campus.

The report reveals that more than 106-thousand people are employed by the University System, representing about 1 of every 39 jobs in Georgia.

The study was commissioned by the Georgia Board of Regents.

Study says dropouts cost Georgia billions

A new study shows Georgia is losing over $24 billion and 200,000 jobs a year because of its high school drop-out rate. The study conducted by Georgia Southern University's Bureau of Business Research and Economic Development shows just how much it hurts the state's economy that over 17% of residents 25-and-older don't have a high school education.

The study's author Jeremy Hill says, if Georgia's graduation rate were the same as the nation's, Georgia's economy would gain about $2,000 for every man, woman and child in the state.

"If we were able to do that not only could we get more people employed and in better paying jobs directly, creating wealth, it would create other jobs indirectly," he said.

Study figures are from 2005 and do reflect an improvement over previous years, when drop-out rates were higher. This year, the state is hiring graduation coaches for every high school to boost graduation rates.

Georgia economic forecast not so rosy

A leading economic forecaster says Georgia’s economy will continue to misfire just like the rest of the nation for the near future.

Rising gas prices...the credit crunch...the housing downturn...it’s all part of the lethal mix of factors in what Rajeev Dhawan is calling a recession for Georgia and the nation.

The director of Georgia State University’s Economic Forecasting Center compares where the state is hurting to other areas of the country:

"If you look at the job losses, they’re not terrible like the national. The loss in home prices is not as terrible as in Florida and California. But when you look at the revenue growth turnaround…that’s been a drastic one. It’s gone from a positive 5-6 percent to a negative 5-6 percent in a span of 6-8 months".

And the state’s revenue drain is being felt in university towns. Dhawan says as schools experience cutbacks, the trickle-down seeps into the communities.

Dhawan says only west Georgia is feeling an upswing in its local economy, given the construction of the KIA plant and its related business. Other regions of the state are in a holding pattern, such as ports and tourism along the coast.

Recession not slowing economic development push

Georgia like the rest of the nation is suffering through the recession. But a group of state economic development leaders on Tuesday said Georgia is well positioned to weather the storm while still expanding its global reach.

That’s because they say key ingredients remain strong in Georgia. They point to workforce training, ability to attract a young population, and Georgia’s transportation infrastructure.

Ken Stewart with Georgia’s Department of Economic Development acknowledges the state’s construction and textile sectors have taken hard hits in the ailing economy. But he says for the past six months, the state has been pushing its aerospace, life-science and agriculture industries worldwide.

"What we do is we go sell what we know is sustainable. We’re selling our strategic industries in a proactive and focused way. It’s a simple process. We say which industry segments to we want to grow--where are the companies throughout the world within those industry segments that are leaders and need to have access to this marketplace."

In their trips to bring new business to Georgia, officials say it’s what they cannot control that’s been the problem--the general global economic malaise postponing company expansion plans. Sam Williams is president of metro Atlanta’s Chamber of Commerce:

"They’re not saying we don’t want to come to metro Atlanta or Georgia...they’re saying we still want to come, but we’re having problems borrowing money and arranging our capital financing to accommodate growth and expansion there. So they’re saying ‘let’s keep in touch, we still want to do this, but let’s talk in March, let’s talk in June’."

Williams is hopeful that a proposed economic stimulus package by the incoming Obama-administration to target the nation’s infrastructure might benefit Georgia. Williams says investment in the state’s transportation grid can quickly open the door to new jobs.

Economic development officials plan to push Georgia lawmakers in January on issues such as transportation funding and rolling back tax rates on businesses.

War of words continues over dueling tax reform plans

Governor Sonny Perdue had harsh words for leaders of both legislative chambers today, after Tuesday's announcement from the Senate of a proposal to reduced state income tax.  And,  although both Senate and House leaders have expressed their willingness to work together on tax reform, each seemed to hint the other isn't cooperating.  

Lt. Governor Casey Cagle appeared to challenge House leaders who weren't willing to reduce state spending to bring about a tax cut. 

"If the House is serious about reigning in state spending, then the best way to do is through revenue reduction and the best way to do that is through tax cuts." 

In response, House Majority Leader Jerry Keene shot back, questioning the late hour of Cagle's proposal. 

"The Senate has come to the table on day 32, late in day 32, with a tax reform plan that candidly comes no where near the amount of relief that we're proposing for Georgians."  

All this back and forth has Governor Sonny Perdue comparing the tax reform debate to a card game. 

"Sadly, all of the tax plans are more about politics than policy.  The sad thing is the fiscal health, the financial health of Georgia going forward is what's being played with.  And, its unfortunate when people on both side here feel like they have to trump one another in this." 

 

The Governor also wasted no time assigning responsibility for the current impasse.

"The action of the house beginning this policy was dangerous. And then, in political life, you have others feel like they have to put a higher trump card down. This is what you get. The sad fact is ... it's playing with the fiscal health of Georgia's future. And, it's sad to watch."

The Senate tax proposal calls for cutting state income tax ten percent, in a five year phased in plan, keeping about 260 millions in the pockets of working Georgians, in the first year alone. And, late week the House passed its own plan to reduce taxes about 760 million a year by eliminating the car tag tax along with the state's quarter mill homeowners property tax. 

The problem with those plans, says Perdue, is that less taxes means less revenue for the state to pay for things education, transportation and health care.

Finally, the Governor says he's puzzled why Georgia lawmakers would talk about tax cuts as if the state were run like the federal government.

Because  while the federal government may run a budget deficit, Georgia's Constitution requires that lawmakers pass a balanced budget each year. 

With Georgia's economy mirroring that of national trends, Governor Perdue has asked lawmakers to find a way to trim 245 million dollars from next year's budget.  But that may not be enough.  Perdue says he expects the state may be forced to tap into its reserve fund this year and possibly next.

HOUSE LEADERSHIP RESPONDS TO TONGUE LASHING

In a press release late Wednesday afternoon, Majority Leader Jerry Keen responded to the Governor's comments saying, the since the Governor does like the reform plan of either chamber, the Senate should sign on the the House plan to eliminate the car tag tax.

“Our proposal is a resolution, which means the governor cannot veto it.  The proposition goes straight to the ballot for the people of Georgia to decide.  The Senate’s proposal is a bill, which means it must go to the governor, giving him the opportunity to veto it, as he implied today he will do.  The only way to give the people of Georgia tax relief is for the Senate to follow the House’s lead and vote to axe the birthday tax.”

Housing bust could to be a boom for some

First-time homebuyers could benefit from the down economy. Recent federal legislation proposes a 75-hundred tax credit for new homes purchased before 2009. And, experts say a spike in home sales could be just the economic stimulus needed to jump start Georgia's economy.

Roger Tutterow is a professor of economics at Mercer University. Addressing a group of real estate professionals in Atlanta today, Tutterow called the health of metro-Atlanta’s real estate market an economic indicator for the rest of the state.

“The housing is particularly important to the state of Georgia because we have a lot of industries in the building supply, wood products sector, that are all related to the housing industry. As goes housing goes the health of these industries, as well.”

In the meantime, Georgia remains among the top 10 states with the highest foreclosure rates. Realty-Trac … the website which tracks foreclosure rates nationwide … reports that year to date foreclosure filings in Georgia are up to nearly 53-thousand.

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.

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)

Columbus job-seekers swamp job fair

Roadside sign welcoming job applicants, and car buyers at the former Bill Heard dealership in Columbus, Georgia, on Dec. 10, 2008. (Dave Bender)

State Senator Emanuel Jones is reopening a flagship Bill Heard auto dealership in Columbus, as a controversial 15 billion dollar federal bailout for automakers hangs in the balance.

Jones hopes to welcome car buyers into his showroom by Christmas. To do that, he'll need staff and mechanics. On Wednesday, close to 1,000 job seekers packed the showroom.

Torrential rain pounds down on the giant marquee, that reads in moving red letters: "Come Back To Your Legacy – Job Fair Today!"


Close to a 1,000 applicants tried out for 100 positions at the former Bill Heard dealership in Columbus, Georgia, on Dec. 10, 2008. (Dave Bender)

10 job seekers for every spot at the dealership took that advice.

Department of Labor officials say they're expecting close to a thousand to show up, vying for 100 positions.

Scarlet Barker of Columbus has been out of work since August, but worked at Bill Heard in the past. She wonders, however, if that's to her benefit:

“I know almost all of them, because I worked here for years; I don't know if that's a good thing or a bad thing, but I know most of them that are in here."

Many of them were among the several hundred laid off when Heard shuttered its doors in September.

The chain was 11th largest in the country, with over a dozen lots scattered throughout the southeast, Arizona and Nevada.

But Heard filed bankruptcy after a quadruple whammy of high gas prices, poor sales, a credit crunch, and a state lawsuit charging Heard with 16-years of deceptive sales practices.

Emanuel Jones and Georgia Department of Labor team during the intake of new applicants at the former Bill Heard dealership in Columbus, Georgia, on Dec. 10, 2008. (Dave Bender)

Jones owns two other dealerships, and says he isn't fazed the prospect of General Motors going bankrupt:

"One thing that I know: General Motors is as big a part of America as any other corporate entity, and there's no doubt in my mind that Chevrolet and Cadillac as a brand will always be here."

Jim Hunsinger of the Georgia Department of Labor says he values Jone's optimism.

Georgia Department of Labor's Jim Hunsinger and staff signing in applicants at former Bill Heard dealership in Columbus, Georgia, on Dec. 10, 2008. (Dave Bender)

He's here with a team from the DOL streaming hundreds of applicants into private interviewing booths:

"We appreciate the senator taking that chance in a dire economy."

Jones says there'll be another wave of hiring before a grand opening on December 19th.

Meanwhile, as the line of applicants slowly snakes forward, the rain washes the dust off hundreds of still-unsold cars that fill the parking lot.

Click here for more GPB News coverage of unemployment issues in Georgia.

Kia Training Center Opens

Perdue, Kia and state officials inaugurate the training center at West Point. (Robin Trimarchi/Columbus Ledger-Enquirer)

Governor Sonny Perdue, Kia Motors President Euisun Chung, and state and local officials gathered at a ceremonial ribbon-cutting for on Tuesday for the opening of Kia Motors' training center in West Point.

“This center is the linchpin in providing both an opportunity for Georgia’s citizens and a quality workforce for Kia that will guarantee the success of this project,” Perdue said.

“The state of Georgia and especially Georgia Quick Start have provided exceptional support for our project,” said President Chung.

The center, which houses robotics, welding and electronics labs, classrooms, and related equipment, will train teams for car making.

The Kia facility, its first in the U.S., will eventually produce 300,000 vehicles a year, and impact Georgia's economy to the tune of some $4 billion per year, according to a Georgia Tech study commissioned by the Georgia Department of Economic Development.

The plant is set to open in 2009.

Click here for more GPB coverage of the KIA plant, and its effect on the area.

Planning board offers new way to boost region

A so-called mega-region concept would help spur business development and lead to solving major problems in Georgia and neighboring states--so says a regional planning commission.

The proposal pushes the idea that different cities and communities can find more economic and problem-solving success by selling themselves as a group instead of individually. The Piedmont Atlantic MegaRegion would include communities from North Carolina through parts of Georgia into Alabama.

The concept comes from the Atlanta Regional Commission, a planning group for the metro Atlanta area. ARC chairman Sam Olens says this approach can make it easier to attract international business. And with a down economy, it’s even more critical.

"When you’re in a bad economy, instead of sulking about the economy, let’s make the plans so when the economy improves we’re in fifth gear maximizing that potential strength. So now’s the time to in fact create those partnerships so you get out of the starting gate faster."

Olens says a good example of an area with name recognition is Raleigh-Durham’s Research Triangle.

He says the mega-region concept could also lead to solutions for Georgia’s transportation and water resource problems.

Obama campaigns in suburban Atlanta

Senator Barack Obama was in Georgia for a fundraiser and a town hall meeting to highlight his plans to spur the US economy.

A crowd of 2700 supporters greeted the Senator at a suburban Atlanta highschool before he launched into a speech about a failing US economy that is squeezing middle class America.

He laid out his plan to rebuild what he calls the American dream: working hard for a living wage with healthcare and retirement.

"That’s what we’re fighting for that’s the choice in this election and Georgia," he said. "If you stand up with me and vote for me I promise you we will not just win here in Georgia, we’ll win this gernal election."

While in Georgia, Obama also held a $2300 a plate fundraiser. The state has been staunchly Republican for the past three presidential elections. Analysts say it’s too early to tell whether Obama has a chance to carry Georgia.

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)

State House GOP proposes more tech ed in high school

State House Republicans say a new program is needed to boost Georgia's high school graduation rate.

"We spend $10 billion in this state on education," says Rep. Fran Millar (R-Dunwoody) "Where 15 to 20 percent ever get a college diploma. We're kidding ourselves. We're kidding our parents and it's time for us to be honest with ourselves."

Millar joined House Speaker Glenn Richardson at a charter high school in Atlanta where seniors take aviation courses. They want high schools across the state to offer similar job training courses for students at risk of dropping out.

"We're not just failing Georgia's children, we're killing Georgia's economy," says House Speaker Glenn Richardson.

For less than $20 million, Richardson says, the state can create a new twist on an old idea that encourages kids to stay in school. It would work like this: In eighth grade, students could choose the job-prep track. Through high school, they would train at their local tech college while fulfilling the requirements needed to graduate. Students could be ready to jump into their local job markets, whether by running the machines at a Dalton carpet mill, or working in a metro Atlanta legal office. While some high schools offer similar programs, the lawmakers want a new law that would codify the programs and put them in every high school.

"This will be a bonanza for everybody," says Millar. "We're helping the kids. We're helping the economy. We're doing the right thing."

Meanwhile, the state department of education wants to drop its traditional vocational track and require all high school students to complete four years of math and science. Millar says the proposal does not conflict with those plans.