Governor's budget plan reflects economic optimism
By REP. CHARLES JENKINS

Charles Jenkins

During joint House and Senate budget hearings Jan. 22- 25, the heads of various state agencies appeared before committee members to make the case for their budget requests for the remainder of the current fiscal year as well as fiscal year 2009, which begins July 1, 2008.

Gov. Sonny Perdue had outlined his record $21.4 billion state budget proposal to legislators during the first week of the session. In his briefing to Appropriations Committee members, the governor expressed an optimistic view of the state's economic future in the midst of nationwide concern about a recession.

State economist Kenneth Heaghney reported that the nearterm risk of a national recession is significant, acknowledging the turmoil in financial markets, the sharp downturn in the housing market, the slowdown in consumer spending and growing unemployment numbers. But he also reported Georgia's economy is probably better than that of the U.S. as a whole, and he expects a recovery period to begin in the second half of this year.

Despite the rosy forecast, the sentiment among legislative budget writers is a bit

more cautious, because state revenues would have to cover $1 billion more in state spending for FY 2009 over the current year under the governor's proposal.

Concern is being expressed by a growing number of lawmakers and education officials over the governor's proposal to cut additional $141.5 million in state funding to local school systems. Although it is the responsibility of the state government to provide public education, more than $1.5 billion in local school funding has been cut since 2003, shifting the burden to local school boards and local taxpayers.

When the governor first proposed "austerity cuts" five years ago, it was understandable because the state was suffering an economic downturn and revenues were tight. But with the governor's overall spending plan increasing by $1 billion over last year, there are more questions as to why it is necessary to continue these tax shifts on local schools, even from the governor's own political party.

House Appropriations Committee Chairman Ben Harbin (R-Evans) pointed out during budget hearings: "It's forcing districts to make changes, either raising taxes or cutting programs they have been funding locally."

State School Superintendent Kathy Cox added, "That cut is a disappointment to me as well. I am very concerned about that."

Another area of concern regarding the budget is the funding of transportation projects. Over the next five years, the state is facing a funding shortfall of up to $8 billion to simply maintain the status quo. Realistically, though, the shortfall is about $20 billion when you consider the transportation improvements that are currently proposed for Georgia to keep up with the needs of our growing population.

Georgia is now paving less than 4 percent of its roads each year. Traditionally, the state has been able to pave 10 percent annually so that every road would be resurfaced at least once per decade. Currently, that frequency has fallen to once every 25 years or more. In addition, many of our bridges have not been replaced or upgraded in the past 40 years.

In his budget plan, the governor proposes a modest revolving loan fund to help local governments finish road projects. The governor has stated that the state Department of Transportation needs to become more efficient before revenues are addressed.

House Speaker Glenn Richardson and others, however, are on record as insisting the state cannot wait another year to close the revenue gap. The need for transportation improvements is growing by the day in Georgia, and now is the time to act.

Rep. Charles Jenkins (DBlairsville) represents the 8th District (Rabun, Towns, Union and No. White counties) in the Georgia House of Representatives. Contact him at 411 Coverdell Office Building, Atlanta, GA 30334; by phone at 404-656-0126 or by e-mail at charles.jenkins@house.ga.gov.