Senate approves FY '09 budget, income tax reform
By STATE SEN. CHIP PEARSON

Chip Pearson

With four days remaining in the 2008 legislative session, the pace was lightning quick last week, as members make their final push of the year. This is the time of the session when you'll see members running from committee room to committee room, trying to get their bills moving. The big news at the Capitol this week was the passage of the Fiscal Year 2009 Budget in the Senate. The only bill that our state Constitution requires members of the Georgia General Assembly to pass during the legislative session is a state budget. This year's budget places an emphasis on education, healthcare, economic development, transportation and more. The FY 09 budget is a $21.4 billion package that funds the most critical services our state provides to citizens. Here are some of the highlights of the FY 09 budget:

Education

* $56 million to repay austerity cuts to education. When coupled with the $53 million from FY 08, this means over $100 million in new funding for education this year.

* $22 million in bonds for low wealth school districts

* $83 million in general school construction money

Healthcare

* $98 million in state funds and $341 million total to fully fund PeachCare

* $9.2 million to improve access to rural health

* $3 million for public health clinics across the state

* $6.2 million in state funds/$17.3 million in total funds for trauma care providers

Economic Development/ Transportation

* $2 million in additional funds for regional business assistance

* $7 million in community improvement district grants for a congestion relief fund

* $50 million for a state transportation infrastructure bank to make loans for transportation projects

* $9.8 million in airport aid

* $30 million in bonds for reservoirs

The FY 09 budget (HB 990) will now go to a committee comprised of Senate and House negotiators to come to a final agreement on the state spending plan.

The Senate tax reform plan was also approved this week. The plan will reduce income taxes 10 percent across the board for every citizen who pays income tax. The cuts would be phased in over five years in annual installments, beginning this year on July 1. Our plan is broadbased, immediate and fair, and it will help Georgia's economy by putting money back into the pockets of taxpayers. The Senate plan would set forth the biggest tax cut in Georgia history at around $1 billion when fully phased in. At this point, I am hopeful we'll see real tax reform this year through a Senate/House agreement.

In other news, the House approved a measure that could be the solution to our future transportation needs. As you know, I am vice chairman of the Transportation Committee, so I've worked on Senate Resolution 845, which is supported by many in the business community. If approved by voters, the bill would establish a voluntary one-cent TSPLOST, or transportation special purpose localoption sales tax. For this TSPLOST to happen, a statewide referendum would be held to establish transportation regions and give them authority to enact a one percent transportation sales

tax. This is the best option to present to voters, because it gives them a choice on whether to pay for new transportation infrastructure, rather than mandating a new fee. SR 845 will also go to Conference Committee for final negotiation.

Finally, I am pleased to report the passage of a bill that I've been working on this session, SB 463. SB 463 will allow Georgia homeowners to use recycled gray water more freely in an effort to conserve. The measure received final passage this week and now moves to the Governor's desk for his signature.

Please feel free to contact Sen. Chip Pearson at his office in Atlanta at 404.656.9221 or by email at chip.pearson@senate. ga.gov.