House committee puts back spending cuts in mid-year state budget

ATLANTA – Budget writers in the Georgia House of Representatives Tuesday restored some of the spending cuts Gov. Brian Kemp has requested in his mid-year state budget to help offset sluggish tax revenues.

The $27.4 billion fiscal 2020 mid-year budget members of the House Appropriations Committee adopted puts back funding for food safety, mental health services, Georgia’s public defenders and the state’s accountability courts.

Since receiving Kemp’s budget proposals last month, lawmakers have expressed concerns that the depth of some of the cuts would hit state agencies that have yet to recover from the spending cuts they were forced to absorb during the Great Recession more than a decade ago.

Those fears were reinforced when state agency heads warned during budget hearings of the impacts the cuts would have on programs and services.

The list of worried department heads included Commissioner of Agriculture Gary Black, who asked lawmakers not to reduce his food safety workforce. On Tuesday, the appropriations panel added back five food safety inspectors who had been cut from the mid-year budget.

In the criminal justice arena, the House committee transferred $1.5 million from the Georgia Prosecuting Attorney’s Council to the state Public Defender Council to avoid job losses among Georgia’s public defenders.

The popular accountability courts then-Gov. Nathan Deal launched several years would see a $1.3 million cut restored.

Rep. Terry England, chairman of the Appropriations Committee, said depriving the accountability courts of the funding they need would send more criminal defendants to prison rather than managing them through a less costly alternative.

“They would certainly wind up with a less cost-effective method of dealing with what they’ve done,” said England, R-Auburn.

The Department of Natural Resources, in charge of state parks and environmental compliance, had funds added back for maintenance and law enforcement following concerns its budget had not recovered yet from the recession. The DNR was hit particularly hard when the economic downturn sent tax collections plummeting in 2008.

“We’re trying to keep them still fully in play,” said Rep. Sam Watson, R-Moultrie, chairman of the House Appropriations General Government Subcommittee.

Lawmakers have been particularly worried about the potential impacts of cuts to mental health services. On Tuesday, the Appropriations Committee reduced proposed reductions to the number of residential treatment beds and added $2.8 million for behavioral “ health core” services.

“We’re able to make some improvements,” said Rep. Katie Dempsey, R-Rome, chairman of the Appropriations Human Resources Subcommittee. “It’s a very, very good day for this part of the budget.”

The committee also added $44,111 to the $200,000 the governor recommended for the Georgia Access to Medical Cannabis Commission. The General Assembly created the commission last year to oversee the growth, production and sale of cannabis oil in Georgia for treatment of a variety of diseases, but it is off to a slow start.

The full House is expected to take up the mid-year budget on Wednesday.

Staff writer Beau Evans contributed to this report.

Georgia schools turnaround chief sues to block release of damaging audit

Georgia Chief Turnaround Officer Eric Thomas resigned last month amid completion of an audit into his performance. (Photo credit: Georgia Department of Education)

ATLANTA – After resigning last month, the head of efforts to turnaround struggling schools in Georgia has filed a lawsuit against the state Department of Education to block public release of a damaging audit the agency completed that led to his resignation.

The lawsuit was filed two days after the education agency notified Chief Turnaround Office Eric Thomas last Friday that the 64-page audit of his office might soon be released publicly, though that has not happened yet.

The agency refused to provide Capitol Beat News Service with a copy of the audit following an open-records request last week.

The audit probed allegations of bid-rigging in Thomas’ office, issues with travel expenses and workplace harassment, according to a letter last month from Georgia Inspector General Deborah Wallace.

“Overall, it appears that the chief turnaround office was mismanaged and that policies and procedures in place were routinely ignored by Dr. Thomas,” the letter says.

But Thomas claims the audit’s findings were flawed from the start since he was never interviewed as part of an internal investigation by the agency. The lawsuit calls the audit “a retaliatory sham,” disclosure of which would violate Georgia’s Whistleblower Protection Act.

Thomas also claims the audit’s release would damage his reputation and chances for future employment. The lawsuit describes his experience as “extremely marketable” after years of work in public school systems including a stint as the turnaround chief for the University of Virginia.

“As a result, publication of the investigative report would result in publication of irreparably damaging information about Dr. Thomas based on an investigation that was not undertaken in good faith, and which would invade his privacy by defaming him,” the lawsuit says.

Thomas gave the agency a 35-page response to the audit last week, according to the lawsuit. He may address the Board of Education at a meeting Wednesday.

The dispute centers on control over a branch of the state education agency tasked with improving the worst-performing schools in Georgia. Thomas alleges in the lawsuit that state School Superintendent Richard Woods sabotaged the turnaround office in order to bring its functions under his administrative control.

A Savannah native, Thomas has headed up the turnaround office since state lawmakers passed legislation creating it in 2017. He tendered his resigned last month amid the audit’s completion and is poised to step down May 30.

Now, the chief turnaround office will be folded into a different arm of the education department run by Stephanie Johnson, the deputy superintendent for school improvement. Woods told lawmakers last month the change should not cause any hiccups for 13 low-performing schools the office was supporting.

Exiting break, Georgia lawmakers take a stab at budget cuts

ATLANTA – Georgia lawmakers capped a hiatus week at the state Capitol by pulling back on some of Gov. Brian Kemp’s ordered budget cuts, which have dominated talks so far in the 2020 legislative session.

The governor’s proposed cuts – rounding out to $557 million through the 2021 fiscal year – inspired the General Assembly to set aside bill-wrangling for 10 days and focus almost exclusively on the budget.

Lawmakers held a fresh round of hearings to dive deeper into the budget. Dozens of state agency heads explained to members of the House and Senate Appropriations committees how they’ll manage the cuts.

Changes to the governor’s budget began Thursday, when members of the House Economic Development Appropriations Subcommittee voted to restore funding for nearly half of 13 vacant food-safety inspector positions slated to remain unfilled because of the cuts.

The subcommittee’s chairwoman, Rep. Penny Houston, previously had said she felt wary of shortchanging food inspectors amid a proliferation of Dollar General stores opening in Georgia that now sell prepared food – and thus ought to face more scrutiny.

“It’s not really a glamorous thing when you go to a convenience store and you see rats everywhere,” said Houston, R-Nashville. “I mean, it’s tough.”

More budget tweaks likely ahead could set up head-butting between lawmakers and Kemp, who has veto power over spending items that the legislature passes.

The House version of the amended $27.4-billion budget for the current fiscal year is headed for a floor vote Wednesday that will likely see more cuts rolled back, said House Appropriations Committee Chairman Terry England, R-Auburn.

“You’ll probably see more restorations,” England said, declining to elaborate further Thursday. “That’s the way this process is supposed to work.”

With the cuts, Kemp aims to stave off a budget shortfall amid sluggish tax revenue collections while leaving wiggle room to give public school teachers a $2,000 raise.

Revenues picked up last month but still lag far behind the roughly $800 million boost officials originally projected.

Kemp’s budget director, Kelly Farr, told lawmakers Wednesday the agency belt-tightening was carefully calibrated to minimize impacts on everyday Georgians. He highlighted a total of $140 million in savings achieved by leaving vacant staff positions unfilled, plus millions more by eliminating landline phones and travel.

Many agencies are poised to have their budgets stay largely the same by trimming proposed increases in spending last year rather than cuts to existing services, Farr said.

“We tried to be very diligent about things that we consider to be public-facing [and] service-impacting,” Farr said. “This was not done haphazardly.”

But some lawmakers argued that kind of budget-crafting could dampen the rebuilding process those agencies have undergone since the 2008 economic recession, which spurred deep cuts throughout state government.

“We’ve tried to make sure over the last couple of years that we paid attention to those agencies that took extraordinarily harsh, harsh cuts over the recession,” said Rep. David Knight, R-Griffin. “All of a sudden we come back down and there’s a drastic change.”

Concerns have continued to mount from social workers, doctors and others worried the proposed cuts would hit Georgia’s most vulnerable populations the hardest.

State mental health services face around $80 million in cuts through June 2021 that would largely affect programs meant to prevent crisis situations that could land someone in jail or a psychiatric ward.

Those cuts have unsettled many lawmakers and mental health advocates who support pumping more money into services for people with mental and physical disabilities, rather than keeping the budget flat.

“There are ways we can cut back,” said Pauline Shaw, executive director for the nonprofit special-needs group Effingham County Navigator Team. “But it should not come on the backs of people who are the most vulnerable.”

Critics have also homed in on cuts that could affect some law enforcement and criminal justice reform initiatives like alternative sentencing programs, public defenders and a huge backlog of forensic lab tests needed for rape investigations.

Elsewhere in the budget, Kemp has taken especially fierce heat for proposed cuts to county health boards and physician training programs in rural areas – a key voter base for the governor and many lawmakers from both parties.

“We do not want to see a greater burden placed on our rural hospitals because of budget cuts,” said Damien Scott, CEO of Emanuel Medical Center in Swainsboro. “When you’re barely making ends meet, even $15,000 to $20,000 can be significant.”

Rep. Clay Pirkle agreed, noting many underserved health boards in rural counties might be in a serious bind without full state funding.

“If we are cutting in an area, the unintended consequence is we are cramming down to the local level,” said Pirkle, R-Ashburn. “And a lot of them can’t afford it.”

Some officials pointed out the full extent of the cuts can be deceptive since state funds are often paired with federal dollars.

For instance, the state medical director for the Georgia Poison Center, Robert Geller, said an estimated $50,000 cut to his office could swell to more than $150,000 with the loss of matching federal funds.

Rep. Butch Parrish, who chairs the House Health Appropriations Subcommittee, said he wants to steer clear of small cuts that could lead to inadvertently larger costs down the road.

“Let’s continue to talk about the consequences of some of these cuts,” Parrish, R-Swainsboro, said at a hearing Wednesday. “And maybe if we look at it in a different light, we can come up with a better solution that we can all be happy about.”

Mass timber construction technology holds promise for Georgia forestry

The Kendeda Building on the Georgia Tech campus. Photo by The Miller Hull Partnership

ATLANTA – Georgia’s timber industry, which already tops the nation in a number of categories, may get a boost from new technology that lets developers construct mid-rise office buildings made mostly of wood.

The General Assembly is considering legislation asking the state Department of Community Affairs to recommend whether Georgia should adopt a provision in the International Building Code that allows buildings constructed of “mass timber” to rise as high as 18 stories. The state building code limits wood office buildings to six stories.

Other countries and some states already are taking advantage of the international provision to put up mid-rise office buildings well above Georgia’s height limit, said Rep. John Corbett, R-Lake Park, chief sponsor of House Bill 777 and a timber farmer.

“Out on the West Coast, Washington and Oregon have done it. Canada has been using it for some time,” he said. “It’s going to be a good fit for our Southern yellow pine. It’s a good opportunity for us.”

Georgia already is the No. 1 state in commercially available timberland, with 22 million acres of privately owned forests. The Peach State also is tops in the nation in exports of pulp, paper, wood fuel and wood pellets.

Forestry generates an annual economic impact of $36.3 billion and is Georgia’s second largest industry, accounting for 148,414 direct and indirect jobs, according to the Forsyth-based Georgia Forestry Association.

Andy Barrs, president and CEO of Watkinsville-based Barrs Industries, which owns stretches of timberland throughout the Southeast, said the science of building with mass timber has existed for decades. But the market for mid-rise office buildings made mostly of wood is still emerging, he said.

Builders glue cross-laminated timbers together to create a strong material that can be used for floors, ceilings and load-bearing walls, Barrs said.

“They can cut the pieces exactly, so the preciseness is very high,” he said. “It allows buildings to occur in urban areas with a smaller footprint. It’s a very efficient way to build, kind of like Lincoln Logs.”

Bill de St. Aubin, CEO of Sizemore Group, an architectural firm based in Atlanta, said concerns over fire protection have prompted some hesitation to use wood in mid-rise office buildings. But mass timber – unlike the wood used in stick-built residential construction – is actually more fire resistant than steel, he said.

“The new law recognizes wood is a protective material,” he said. “Mass timber doesn’t light easily. … Mass timber is very thick. It’s a really strong material.”

Mass timber has yet to make significant inroads in Georgia. Some cities passed ordinances in recent years limiting the height of buildings made of wood, but the General Assembly passed a bill in 2018 prohibiting local governments from imposing height restrictions below what the state code provides.

Use of the technology currently is limited to two buildings in Atlanta. The recently completed T3 West Midtown building at Atlantic Station consists of a concrete ground floor and six stories made of wood.

 The recently opened 47,000-square-foot Kendeda Living Building on the campus of Georgia Tech won last year’s top prize for innovative sustainable design from the Atlanta Regional Commission.

Sizemore Group currently is building a new church for Our Lady of Lourdes in Atlanta’s Old Fourth Ward, the city’s oldest African American Catholic church.

“Every project I do now, I look at mass timber first,” Aubin said.

Andres Villegas, president and CEO of the Georgia Forestry Association, said the ability to construction mid-rise office buildings from wood would go a long way toward sustaining the state’s timber industry.

“It will give landowners a reason to continue planting trees,” he said. “It’s a great opportunity for us, especially in Atlanta where we have so much construction this can be applied to.”

The House bill calls for the Department of Community Affairs to begin its review of the International Building Code this summer and complete its work before July 1, 2021.

Villegas said he’s not surprised by the length of the process.

“It takes a little time for new technology to be accepted,” he said. “There’s a lag time that occurs with the international building codes being adopted at the state level.”

House Bill 777 passed the House Agriculture & Consumer Affairs Committee unanimously early this month and is expected to before the full House soon.

Atlanta pro sports executives talk up sports betting

ATLANTA – The top executives of the Atlanta Braves, Falcons and Hawks pitched legislation to legalize sports betting in Georgia Thursday at a luncheon sponsored by the Atlanta Press Club.

Derek Schiller of the Braves, Rich McKay of the Falcons and Steve Koonin of the Hawks said sports betting wouldn’t spur a direct windfall of revenue for their teams. Rather, the benefit would come from increasing fan engagement, they said.

“Somebody who bets on a game is 19 times more likely to watch it,” said Koonin, the Hawks’ president and CEO.

Sports betting is a relatively recent arrival on the legalized gambling scene. It wasn’t possible until a U.S. Supreme Court ruling in 2018 struck down a federal law that banned commercial sports betting in most states.

Since then, 11 states have legalized sports betting, seven others have approved  but are yet to launch sports betting and 24 states – including Georgia – are considering legalization legislation.

State Rep. Craig Gordon, D-Savannah, has introduced a constitutional amendment asking Georgia voters to decide in a statewide referendum whether to legalize sports betting.

A separate “enabling” bill sponsored by Rep. Ron Stephens, R-Savannah, one of the biggest supporters of legalizing gambling in the General Assembly, contains specifics on how sports betting would operate in Georgia. For one thing, betting would be conducted through cellphones and other mobile devices, since Georgia has no brick-and-mortar betting facilities such as casinos.

“The phone is where a lot of consumption is going on in the digital world,” said McKay, the Falcons’ president and CEO

Stephens’ bill also would prohibit betting on amateur sports, including college games. A portion of gambling proceeds would go toward education in Georgia.

The prospects for getting sports betting through the General Assembly this year are not encouraging. Georgia Senate Majority Leader Mike Dugan, R-Carrollton, said last month that legalizing gambling is not a priority in his caucus.

Lobbyists for religious groups oppose legalized gambling in any form – sports betting, casinos or pari-mutuel betting on horse racing – as an immoral activity that carries hidden social costs including increased crime and gambling addictions.

But Schiller, the Braves’ president and CEO, said gambling is already going on in Georgia.

“Sports betting is happening today illegally, and the state of Georgia is receiving no tax dollars for it,” he said. “It’s really found money that’s not happening today.”

Schiller also argued that legalizing sports betting rather than allowing it to go on illegally would give the state the tools to regulate the activity, including setting age limits and putting restrictions on the use of credit cards.