General Assembly Opens to Veto Overrides
and W.E.T.T.T. Priorities

Veto Overrides
   Not long after the General Assembly convened the second half of the 2007-2008 session, the House of Representatives overwhelmingly voted to override 12 of the 41 bills that were passed by the General Assembly last year but vetoed by the Governor. The last time that act occurred was more than 30 years ago. Among the veto overrides was House Bill 451, a measure supported by the Cobb Chamber that provides sales tax rebates for the construction of tourism developments. The Senate will consider the House overrides as early as today. 

Parking Lot Gun Bill Passes Watered-Down
   After a two year fight between the Georgia Chamber of Commerce and the NRA, the Senate passed a watered-down version of HB 89, which would have prohibited most employers from adopting policies that restrict employees from storing firearms in vehicles on company property. As passed by the Senate, employers cannot prohibit employees from carrying a weapon in their car on company property when the employee has a permit to carry a concealed weapon. Even if an employee has a permit to carry a concealed weapon, an employer may still adopt policies to restrict firearms in company parking lots under certain exceptions, such as 1) if the parking area is secured and not accessible to the general public, and 2) if the employer owns the property. The bill will return to the House where they will agree or disagree with the changes made by the Senate.

(W.E.T.T.T.) Priorities
   In a pre-session fly around across the state by the Governor, Lieutenant Governor and Speaker, each talked of their priorities for the session as being W.E.T.T.T (pronounced “wet”), an acronym for Water, Education, Transportation, Taxes and Trauma Care.

Water
   Both the House and Senate have introduced resolutions (HR 1022 and SR 701) to approve a Statewide Water Plan crafted by the Georgia Department of Natural Resources and other government entities, business coalitions, development interests, farmers and local officials. If the plan is ratified, data will be gathered to determine how much water is available in Georgia’s lakes, rivers and aquifers. Forecasts will then be made to determine how much is needed to meet future needs. The plan would create water planning districts to assist in allocating the water. The Governor earmarked $11 million in federal and state funds to finance the plan for the first year.
   In Governor Perdue’s proposed budget, he proposes $120 million to help local communities to plan and build new drinking water reservoirs. Legislation is also being drafted to shorten the permitting process associated with new reservoirs.

Education
   In their pre-session tour, the Governor, Lieutenant Governor and Speaker made a pledge to work on initiatives that will increase Georgia’s graduation rate to at least 80 percent by 2010. Tougher curriculum standards will be considered as well as innovative approaches to charter schools and special needs scholarships.
   Governor Perdue’s proposed budget includes $14 million for what he calls a “Very Important Parent” VIP recruiter program. Seen as an extension to the graduation coach concept, the VIP Recruiter would target 551 Georgia elementary, middle and high schools with high truancy levels. The program will provide a grant for a recruiter in each school to ensure that parents, who might otherwise not be involved, become engaged in their child’s education. The recruiter will aid parents in navigating the educational system, foster connections between teachers and parents and provide resources for parents to use with their children to raise academic achievement (Office of the Governor, Jan. 15 Press Announcement).   

Transportation
   In transportation, Georgia continues to be ranked among the worst in traffic congestion and among the lowest in per capita spending. Transportation advocates continue to push for new funding mechanisms such as a regional transportation tax, which would require a Constitutional Referendum. With a U.S. Senate and gubernatorial election to be held in 2010, advocates fear that politically the General Election in 2008 is the last chance until 2012 to consider such a ballot measure. Fortunately, the Governor, Lieutenant Governor and Speaker are each actively engaged on the issue and reviewing the details of funding proposals.

Taxes
   Hearings on the Speaker’s GREAT Plan (Georgians Repeal of Every Ad Valorem Tax) got underway last week. An updated version of Resolution 900 was filed last week along with the enabling legislation.  The bill now would only eliminate the school portion of taxes associated with residential homesteads and car taxes. The state would issue a homestead credit paid for by a broader state sales tax on more goods and services on individual consumers, but not businesses. A freeze would be put in place on local property assessments on homes, and values could only increase one percent per year unless improvements are made or the property is sold.  A section by section summary has been provided in the left-hand margin of this email.  Phase two of the GREAT Plan – eliminating all ad valorem tax - would happen at a later session.
   Senate Pro Tem Eric Johnson (R-Savannah) also has proposed a Constitutional Amendment (SR 686) that would freeze existing residential property taxes at the time the owner buys the property. Any increase would be subject to limitations, and the homestead exemption would accompany tax increases in most cases, limiting the effect. Several counties, including Johnson's Chatham County, have similar rules in place.
   Senate Majority Whip Mitch Seabaugh (R-Sharpsburg) also has legislation remaining from last year (SR 687) that would propose a constitutional amendment to allow local tax jurisdictions anywhere in the state -- school districts, cities and counties -- to hold referendums on cutting or eliminating property taxes and replace the revenue with a sales tax increase.  
   Also, look for efforts to phase out the state income tax. According to a recent legislative update issued by Senator Chip Rogers: “This would occur by limiting surplus spending to just education and reserve funds and applying any additional surplus to reducing the income tax.”
   Governor Perdue has offered his own tax plan. In his state of the state address, Governor Perdue advocated elimination of the state’s .25 mill property tax that is assessed through county bills. The assessment collects approximately $94 million per year for the state. Abolishing this tax would result in approximate savings of $30 per year for the average homeowner. 

Trauma Care
   During the Georgia Chamber of Commerce’s Eggs & Issues Breakfast, Speaker Glenn Richardson repeated his plan to levy a $10 annual fee on vehicle registrations to directly fund and grow the state’s fourteen trauma hospitals. Governor Perdue, who has allocated $53 million in the mid-year budget, proposes paying for it through added fines for speeding. Combined, the two sources could raise about $100 million annually.

Cobb Legislative Agenda
   The Chamber’s 2007-2008 legislative priorities continues to include a transportation funding mechanism, funding for water planning, abolishment of the business inventory tax, equalization of funding for our technical colleges and economic development incentives. This session we will advocate strongly for legislation that eases the permitting of reservoir construction and for the passage of a transportation funding mechanism.