ATLANTA – The money deposited in nine state-run trust funds could be used for no other purpose under legislation that cleared the Georgia House Appropriations Committee Friday.
House Bill 511 is the follow-up to a constitutional amendment Georgia voters ratified overwhelmingly last fall requiring all revenues the state’s dedicated trust funds collect to remain inside those programs rather than be diverted into the general fund budget.
The late Georgia Rep. Jay Powell, R-Camilla, championed the constitutional amendment for years to prevent Georgia governors and legislative leaders from raiding the state’s Solid Waste and Hazardous Waste trust funds during economic downturns when money is tight.
The constitutional amendment finally gained passage last year following the unexpected death of Powell in November 2019 at age 67.
“When we in this General Assembly create and pass a dedicated fee to go to a certain purpose … it should go to the purpose it was intended for,” Rep. Bert Reeves, R-Marietta, who has shepherded the legislation since Powell’s death, told committee members Friday.
While Powell developed the proposal with the Solid Waste and Hazardous Waste trust funds in mind, the bill the committee adopted Friday also would apply to the following:
State Children’s Trust Fund, which goes to the Georgia Division of Family and Children Services.
Wildlife Endowment Trust Fund, a tax on hunting and fishing licenses that supports state wildlife programs.
Georgia Trauma Care Network, which funds trauma care services through a fine on “super speeders.”
Transportation Trust Fund, which supports road projects through the state’s motor fuels tax.
Georgia Agricultural Trust Fund, which goes toward marketing the state’s farm products and state-run farmers’ markets.
Fireworks Trust Fund, a sales tax on fireworks that goes toward trauma care and firefighter training.
Georgia Transit Trust Fund, a per-ride tax on ride-sharing services that helps fund public transit improvements.
The constitutional amendment ratified last fall includes a 10-year sunset date to give lawmakers a chance to review each trust fund and ensure the services it helps pay for are still needed.
It allows governors and legislatures to suspend the dedication of trust fund revenues during economic emergencies to free up those funds for general spending needs.
Also, the total amount dedicated to the trust funds during a given fiscal year could not exceed 1% of the state’s budget from the previous fiscal year.
Rep. Calvin Smyre, D-Columbus, said the transit trust fund is particularly significant because it represents the first dedicated source of state funding for transit projects. The General Assembly earmarked $75 million in one-shot bond financing for transit in 2015.
“Transit has been neglected,” Smyre said. “This is a great step.”
The bill now moves to the House Rules Committee to schedule a floor vote.
ATLANTA – The federal government is stepping up with $1.5 billion to replenish Georgia’s depleted Unemployment Insurance Trust Fund, Gov. Brian Kemp announced Wednesday.
The money, which will come through the Coronavirus Aid, Relief and Economic Security (CARES) Act, will repay funds the state has borrowed to provide unemployment benefits to Georgians who lost their jobs during the pandemic.
“COVID-19 has brought unprecedented challenges to nearly every business – large and small – and upended the lives of millions of Georgians,” Kemp said. “Through no fault of their own, thousands of people became unemployed overnight, businesses were shut down, and countless families suffered.
“Today’s announcement will save Georgia employers millions of dollars in state and federal unemployment taxes, prevent significant layoffs, and save the state millions of dollars in interest payments.”
By allocating up to $1.5 billion in coronavirus relief funds to avoid raising state and federal unemployment taxes, the average Georgia employer will save about $350 per year for each employed worker.
But the state still won’t be out of the woods. With benefit payments projected to outpace tax revenue, Georgia will have to continue to borrow federal funds to pay benefits.
After the Great Recession of 2008-2009, it took three years until tax revenue outpaced benefit payments.
Unless the state raises employers’ tax rates for unemployment insurance or provides an injection of capital through another means, Georgia would have to borrow an additional $1 billion by 2023 to keep up with benefits payments, according to state Department of Labor estimates.
“Without the transfer of funds, the state will have to increase unemployment tax rates for employers between 300% and 400% to make headway on paying off the loan,” Georgia Commissioner of Labor Mark Butler said Wednesday. “This reallocation of federal funds will allow more employers across the state to focus on the growth and success of their businesses without having the additional pressure of a rising unemployment tax.”
ATLANTA — Among Gov. Brian Kemp’s $300 million worth of vetoes this week were money for reforestation, land conservation, historic building restoration, the arts and live performances and short-line railroads.
The reason he gave in most instances: “The General Assembly failed to account for this loss of revenue in the appropriations process, instead prioritizing general taxpayer relief.”
He had called for a reduction of the state income tax to 4.99% from 5.19% this year, building that into the budget. But the General Assembly went further.
House Bill 463 not only drops the rate to 4.99% this year but will continue dropping it an eighth of a percentage point each year for eight years, if state revenues continue to grow.
The new law, which Kemp supported despite the impact on the budget, also increased standard deductions. They rise 25% this year and are scheduled to go up an eighth as much each year over the next eight years. The law also waived some overtime pay and cash tips and increased the amount of retirement income excluded from taxation for Georgians 65 and older.
All of this affected the budget lawmakers passed for the fiscal year that starts in July. They wanted to spend at least $1 billion more than the state is expecting to collect.
So on Tuesday Kemp used his line-item veto authority to cut $300 million in new spending.
“We had to do a little fine-tuning to make sure that we can pay for all those tax cuts,” he said before he signed the 156-page budgeton Tuesday.
Kemp’s budget team expects increasing revenue collections to close some part of the rest of the gap. If not, Georgia’s next governor and Legislature will have to balance the budget with cuts or by spending down some of the billions in remaining reserves.
That’s a worry for down the road.
But there was an immediate impact of those income tax cuts in the newly passed tax credits and exemptions that Kemp vetoed.
House Bill 376 would have doubled to $60 million the cap in tax credits for restoring historic buildings.
House Bill 1070 would have increased the tax credit for maintenance of short-line railroads that connect industrial sites with major railways. The current $3,500 credit per mile of track expires at year’s end, and the legislation Kemp deleted would have extended it through 2027 while increasing it to $5,000.
Efficient railways drive shipping costs, so deferred maintenance could eventually affect consumers.
House Bill 1077 would have extended for five years the existing sales tax exemptions for fine arts performances and museum exhibitions that expire at the end of 2027.
This could affect ticket prices for the symphony, art exhibits and other events, including the Georgia National Fair at the Georgia National Fairgrounds and Agricenter, which the bill sought to include in the exemption.
Senate Bill 478 would have increased to 60% from the current 40% the amount of sales tax revenue from outdoor recreational equipment sales that go to the Georgia Outdoor Stewardship Trust Fund.
Money from the fund helps to acquire lands that are critical to wildlife and clean water and for outdoor recreation. And it pays for parks and trails.
Kemp also vetoed House Bill 14, which would have established a Georgia Music Office to promote the growth of the industry. And he struck out House Bill 519, which would have created a $10 million annual taxpayer credit to match the federal Work Opportunity Tax Credit. Kemp wrote that the federal tax credit does not yet exist, so Georgia does not need HB 519.
Among the large line items he vetoed was Senate Bill 59. The measure sought to further buttress the state’s efforts to address timber lost from Hurricane Helene in 2024.
Georgia had allocated $200 million toward that project, but timber producers have already absorbed the money. SB 59 would have added another $50 million for them, raising the cap to $250 million.
ATLANTA – Former Hall County Solicitor General Stephanie Woodard pleaded guilty Friday to unlawfully using funds from the county and the Prosecuting Attorneys’ Council of Georgia (PAC) to cover personal expenditures.
Woodard was charged with one count of unprofessional conduct for claiming a number of travel expenditures for which she was not entitled and misusing Local Victim Assistance Program funds.
“Mrs. Woodard took advantage of our state by violating the same laws that she was elected to uphold,” Georgia Attorney General Chris Carr said. “She has now been held accountable for her actions.”
“Hall County citizens entrusted Solicitor General Stephanie Woodard to serve the community with honesty and integrity,” added Chris Hosey, director of the Georgia Bureau of Investigation. “However, Woodard betrayed that trust for her personal gain.”
Woodard was sentenced under the First Offender Act to 12 months of probation and ordered to pay $1,190.48 in restitution to the PAC and $1,028.80 to Hall County. As part of her plea, she was also required to resign as Hall County solicitor general, backdated to Aug. 9.
The case was investigated by the GBI and prosecuted by Senior Assistant Attorney General Laura Pfister, who head the attorney general’s White Collar and Cyber Crime Unit.
ATLANTA – The Georgia Board of Natural Resources put its stamp of approval Tuesday on funding for 13 land conservation, restoration and parks projects across the state.
More than $21.4 million to pay for the projects will come from the Georgia Outdoor Stewardship Fund, raised from a sales tax on sporting goods the state’s voters overwhelmingly approved as a constitutional amendment in 2018.
In four previous cycles of funding going back to 2020, the fund has allocated more than $97 million to projects in 54 counties, Soheila Naji, the program’s coordinator, told board members before Tuesday’s unanimous vote. Those state funds were accompanied by $175 million in matching money put up by the state and local government agencies, recreation authorities, and nonprofit groups that applied for grants, Naji said.
Six of the 13 grants are going to the state Department of Natural Resources (DNR), with the rest going to cities, counties, the Jekyll Island Authority, and the Trust for Public Land.
Here is the list of projects funded through the 2023-24 round of grants:
City of Ringgold Slabtown Park and South Chickamauga Blueway $811,500.00 City of St. Marys Tabby Trail for Eco-tourism and Stewardship $1,735,400.00 GADNR, Coastal Resources Division Noyes Cut Ecosystem Restoration Project, Phase II $1,321,500.00 GADNR, Wildlife Resources Division Mocama Tract addition to Ceylon Wildlife Management Area $2,100,000.00 GADNR, Wildlife Resources Division Dugdown Mountain Corridor-Treat Mountain Expansion $2,100,000.00 GADNR, Wildlife Resources Division Conasauga Wildlife Management Area – Springbank Tract $550,000.00 GADNR, Wildlife Resources Division Habitat Restoration on State Lands, Phase 3 $629,500.00 GADNR, Wildlife Resources Division Outdoor Recreation Enhancements on State Public Fishing Areas $1,600,000.00 Glynn County Coast Guard Beach Park $3,000,000.00 Jekyll Island State Park Authority From Golf to Wildlife Corridor Recreational Park $1,602,300.00 Lanier County Improving Recreation & Water Quality $1,491,057.00 Pike County Parks and Recreation Authority Pike County Recreation Complex Improvements $1,500,000.00 Trust for Public Land Chattahoochee RiverLands Regional Trailhead $3,000,000.00
The project list heads next to the Georgia House and Senate budget subcommittees with jurisdiction over the DNR for final approval.
