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.

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.

Is it a recession or a depression?

Analysts say to tell if we're in a recession, there must first be two consecutive quarters of economic slowdown. Basically, it means consumers don't spend money for six straight months. The key here says Dr. Hashem Dezhbakhsh of Emory University's Economics Department is the word "consecutive."

But there's more to it says Dezhbakhsh.

"Assume that the value of the homes have gone down, the stock market is not doing well, when the amount of goods and services that we have in the economy declines, the amount that is produced, employment rate increases, the economy slows down."

So, what makes a depression rather than a recession? Dezhbaksh likens a recession to the common cold. A depression he says is more like the flu.

"Depression is first of all a very serious illness for the economy, and it can last long and it affects a larger number of people."

Third quarter numbers are just out and they don't look so good for some Georgia companies. Delta Airlines blames its 50 million dollar loss on rising fuel costs. Coca-Cola did well overseas, but not so well domestically. And, earnings for Newell Rubbermaid are down, again blame petroleum prices. And, experts say we should be concerned. But this year there haven't been two consecutive quarters of economic slowdown.

So, to immediately kick start the economy, pick up the latest Hannah Montana CD. For long term investment, Dezhbaksh says stop by your bank and invest in another kind of CD.

Georgia Senators vote 'yes' to bailout

Georgia’s two Senators voted ‘yes’ to the revised bailout bill Wednesday night in Washington. Republican Johnny Isakson calls the new plan "without question the most important vote and most challenging vote I’ve ever been asked to cast in 30 years as an elected official". Both Isakson and fellow GOP colleague Saxby Chambliss will lobby Republican House colleagues before its vote, possibly tomorrow.

Chambliss released this statement following the vote:

Our country is facing the most serious and critical domestic issue I have dealt with in my 14 years in Congress. We have been betrayed by many people, and greedy Wall Street executives have abused the system, leaving taxpayers to feel the pain.

Today, I had a significant choice to make between two very different courses of action – do nothing at all or do what I truly believe is best for America. I believe to the core of my being that doing nothing will devastate our economy, destroy the financial security of millions of Americans and could possibly force our nation into a depression. I just as strongly believe the bill as it has been negotiated, and that I just voted for, will provide stability during this crisis and will begin to turn our economy around.

Let me be clear – this is not a bailout. This bill has been carefully crafted to arrest our current financial crisis, restore security for the American taxpayer and ensure that our nation is the strongest economic power in the world.

And every citizen can know with confidence that any individual who engaged in illegal activity – whether they are the executive of a financial institution or a member of Congress – if their illegal actions forced our nation in to this crisis - then they will be prosecuted to the full extent of the law.

I know that my vote in favor of this package was not the politically popular thing to do, but this is not a popularity contest. This is about the future of our country and the future that my children and grandchildren will inherit. I have absolutely no doubt in my mind or my heart that my vote tonight in support of this measure was the right thing for our economy, for Georgians and for our country.

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.

Lawmakers get economic warning

State lawmakers got a tough projections today on the economy in Georgia. They are meeting at the UGA Carl Vinson Institute of Government for an annual legislative workshop.

The economy will rule almost everything lawmakers will decide when they meet for their 40-day session in January.

They heard from Standard and Poor’s Economic Forecaster David Wyss. He said like the nations economy Georgia will have a tough ride.

“We are seeing signs that the stock market is stabilizing,” Wyss says.

“The housing market will stabilize," he added, "but not for another year. Wealth is continue to be weak.”

To balance the shrinking state budget leaders in the Republican controlled legislature favor favors cuts in spending rather than raising taxes.

Those cuts are likely to be felt hardest in health care and education, which make up the bulk of the state budget.

Developers Could See Looser Regulations

Georgia House members are considering loosening regulations for builders as a way of stimulating the economy.


With the housing market in the gutter, and unemployment rates following the nose dive of the construction industry, state lawmakers like Rome Republican Representative Katie Dempsey say looser building regulations could aid the economy. Dempsey says the key would be to make construction guidelines uniform throughout the state.

"Just one area in particular, buffers. Different counties sometimes create different amount of buffers. Even just your fencing and landscaping can be added on and can be cost prohibitive for development," Dempsey says.


Buffers are generally no-build areas designed to protect the environment and are often costly to developers.

Meanwhile, the national public is opposed to reduced economic regulations, according to recent polling. Last month an LA Times/Bloomberg poll showed half of all respondents blamed the economic fallout on lax governmental regulations throughout the economy.

"Stabilized" state revenue figures come with concern

New state revenue figures show improvement out of October. But that good news comes wrapped with strong concern for the coming months.

Georgia tax collections dipped only slightly over a year’s time, down 0.1 percent--or just over a million dollars. It follows good revenue figures out of September.

But those numbers mostly reflect the state’s economy BEFORE the bulk of the national market-meltdown struck and resulting trickle-down effect. Kenneth Heaghney is Governor Sonny Perdue’s fiscal economist:

"We’ve seen the national economy show signs of entering this significant recession, and that certainly creates concerns that Georgia will follow, and that revenues will follow as well."

Heaghney points out sectors within the construction industry had begun to moderate, but that again was before the market collapse.

The state has lost about $1.1 million dollars since the new fiscal year began July 1st. Perdue already has directed state agencies to tighten belts by six-percent, but that could increase if the economy worsens.

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.

Governor Not Counting on Federal Money

During budget hearings at the capitol today Governor Perdue said he went through his budget like a surgeon cutting out everything that's not needed. He says he is not banking on extra federal help to balance the budget.

"There's a lot of rumors out there now," he said, "but nobody is cutting any check."

Pedue says he doesn't have the money to fund the Homeowners tax relief grant which costs the state over $420 million each year. That means local governments may be forced to raise property taxes and homeowners could see their bills go up by $200 to $300 in some places. Perdue says he turned over every stone but couldn't find the money.

"If you can find a rock we haven't looked under," he told lawmakers, "then let's open it up together and I will rejoice with you."

Georgia faces a $2.2 billion budget shortfall this year and state economist Kenneth Heaghney warned lawmakers that things may not look up until later this year. He used words like skyrocketing unemployment, deteriorating labor market and sharply falling corporate growth, to describe Georgia's economy. Heaghney says Georgia, like the nation is in a deep recession.

"The average recession in the post World War II era is 10 months. We're already in it for 13," Heaghney testified before the joint house and senate appropriations committee.

Heaghney says the federal stimulus package and monetary policy on the federal level could help Georgia's economy later in the year. But he warned that any recovery would be weak.

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.

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."

Business booming at state's ports

Business is brisk at the state's four ports, as record-setting numbers reflect their growing contribution to the state's economy.

The Georgia Ports Authority says records are being set at each of the state's four port terminals. Last year, the ports of Savannah, Brunswick, Bainbridge and Columbus collectively handled more than 21 million tons of cargo. At the Port of Savannah, business is up nearly 15 percent for the fiscal year ending 2007, with more than 2 million containers going through Savannah during the same period.

Robert Morris is with the Georgia Ports Authority. Fueling Savannah's growth says Morris, is a weak U-S dollar coupled with a growing international demand for Georgia made products. But, there are other reasons as well.

"The port of Savannah has been able to have the labor and infrastructure needed to make more international shippers want to come in and out of Georgia."

Savannah is now the fourth busiest and fastest growing container terminal in the United States. And, it's the east coast entry point for such major names as Target and Ikea. The state's ports and terminals provide nearly 300-hundred thousand jobs and contribute nearly 15 million dollars to the state's economy.

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.

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.

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)

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)

Technical colleges increase enrollment

Enrollment at Georgia's technical colleges is climbing, and officials say the economy has everything to do with it.
This comes at a time when some of the state's technical colleges are merging. There is also a proposal to make Georgia's two year colleges a part of the technical college system.
When Central Georgia Technical College in Macon opened its winter quarter this week, enrollment was up 14-percent over last year. Officials say there's a marked increase in most of the 33 technical colleges across the state.
James Harvey is with Central Georgia Tech. He says in an economic downturn you see people heading back to the classroom.

"This is an interesting situation where so many people are being laid off, if you look at the national economy, that now is a good time for people to come back and brush up on new skills, maybe focus on a new career."

Harvey says many of the new students are gravitating towards careers in the health sciences where jobs are still available. Technical schools are able to train workers and return them to the job market quickly.

Economy slump could slash state worker raises

Raises for teachers and state employees are at risk as the slumping economy could have lawmakers reconsidering the state budget.

Drops in tax collections and a predicted budget shortfall of up to 2 billion don’t add up to the 700 million dollars in new spending approved last legislative session, said one think tank yesterday.

The Georgia Budget and Policy Institute recommends budgets cuts in non-vital areas, and if need be, putting the January 1st raises expected for state and Board of Regents employees on the chopping block.

The think tank's director Allen Essig said education programs and Medicaid and Peachcare should be kept safe. "It's really important we don't balance the budget on the backs of children and the elderly, those who can least afford it and that we spread the responsibility throughout the state."

Spreading responsibility includes a recommendation to raise cigarette taxes and rethinking special interest tax breaks.

A special session for lawmakers to retool the state budget could be on the horizon.

Savannah Property Crimes Spike

Police officials in Savannah today took responsibility for a sharp rise in property crime. Savannah-Chatham Metro Police Chief Michael Berkow released preliminary crime numbers for 2008. And they show that while the economy tanked, thieves and burglars had a good year

Property crimes in Savannah jumped an eye-popping 14% last year. Chief Berkow went before microphones and senior staff and didn't even try to downplay the numbers in year-end crime statistics.

"I can't and I won't sugar-coat the property crimes," he says. "We got our butt kicked this year."

Car thefts, purse snatchings and that bicycle that someone took from your yard in broad daylight -- they're all up. Even while violent crimes decreased about 3%, Chatham County residents lost all types of things to criminals who refuse to get their own. Michael Shortt's laptop and camera were stolen from a locked car in two-separate burglaries.

"It's the same problem that Savannah's always had," Shortt says. "It's property crimes."

Shortt is an anti-crime activist who hosts a local television show on legal issues. He admits, he virtually invited the thief to take his stuff by leaving it in plain sight, a common complaint by police.

"By the same token, you can't help but feel violated," he says. "I mean, your car's parked in your neighborhood and you went to the trouble to lock your car and you can't leave the tiniest thing in there."

Other crimes showed better numbers. Homicides remained relatively steady at 26, rapes decreased by more than half to 37 and a five-year trend showed all violent crimes going down, even while population increased. Rolfe Glover is a money manager who leads a city crime task force. He credits Chief Berkow for improving police operations since he came to office about two-years-ago, but says he's withholding judgement on the property crime numbers.

"What we have seen recently of this police force is that it seems to be organized in a way that can react and be responsive to crime trends," Glover says. "And it'll be a test for this new organization to see if they can react quickly and deal with this issue."

For his part, Chief Berkow is both stopping and passing the buck.

"We accept responsibility for that. We're addressing that. We're attacking it," he says. "But, we're part of the criminal justice system. And we are dramatically impacted by the reality that over 40% of the individuals we've arrested for burglary are still out on the street.

Berkow blames increased property crimes on the down economy and budget cut backs in state crime labs, parole offices, federal grants and the corrections department. He says, the real eye-popping figure is the number of repeat offenders being let loose.