Georgia House adds construction wish list to Gov. Kemp’s bond package

Evergreen Conference Center and Resort at Stone Mountain

ATLANTA – Georgia lawmakers don’t have as much money at their disposal as usual in a tight budget year to load up Gov. Brian Kemp’s bond package with tens of millions of dollars in additional construction projects.

But the state House of Representatives still found room in the $28.1 billion fiscal 2021 budget the chamber adopted Tuesday for a menu of projects around the state the governor didn’t request.

The list of House adds is highlighted by $10.2 million in bonds to finance a second phase of improvements to Stone Mountain’s Evergreen Conference Center and Resort. The General Assembly put up $12.5 million two years ago for renovations at both the conference center and the Stone Mountain Inn.

Another $3.5 million in the new budget would go toward renovating the campground at Stone Mountain Park.

As usual, the largest number of projects the House added to the budget would be built on Georgia’s public college and university campuses.

The University System of Georgia’s capital budget would be increased by $4.8 million in bonds for a dental hygiene teaching lab on Georgia State University’s Dunwoody campus, $2.5 million for the third phase of renovations to the  University of Georgia’s Driftmier Engineering Center, $2.45 million to continue a multi-year renovation project at Augusta University’s Robert B. Greenblatt Library, and $2.4 million for renovations at the Dublin Center Library Building on the Middle Georgia State University campus in Dublin.

The House also added $3 million in bonds to pay for a Georgia College and Career Academies building to serve Appling, Bacon, Jeff Davis and Pierce counties and $2.95 million to finance a campground expansion on Jekyll Island.

To help pay for the projects House budget writers added, lawmakers also zeroed out $54.5 million in bond funding to replace the Georgia Department of Public Safety’s headquarters building in Atlanta. The House opted to delay the work until fiscal 2022.

The budget now moves to the Senate, which likely will add projects of its own to Kemp’s bond package.

Georgia tax collections up for second straight month

ATLANTA – If short-term indications are to be taken seriously, Republican leaders in the Georgia House of Representatives have some new ammunition in their fight for another state income tax cut.

State tax collections rose 4.2% last month compared to February of last year, Gov. Brian Kemp’s office announced Wednesday. February marked the second consecutive month tax revenues have gone up in Georgia, following January’s 4.5% increase.

Georgia Rep. Brett Harrell, chairman of the House Ways and Means Committee, cited a positive trend in state revenues when he argued on the House floor Tuesday in support of his bill that would reduce the state income tax rate from 5.75% to 5.375%, effective Jan. 1. The House passed the measure virtually along party lines.

Harrell, R-Snellville, said Georgia income tax revenues for the first seven months of the current fiscal year were up over the same seven months in fiscal 2019.

However, tax collections overall were flat or declining for much of calendar 2019, a trend that has prompted Kemp and some Senate Republican leaders to express reservations about reducing taxes beyond the income tax cut lawmakers enacted two years ago, which sent the income tax rate from 6% to 5.75%.

Lawmakers advocating a cautious approach to further tax relief also argue the state can’t afford it at the same time the General Assembly is being asked to approve deep spending cuts in the budget.

The revenue report released Wednesday showed income tax collections in Georgia rose 15.4% last month, driven by a slight decrease in refunds issued and a larger hike in payments to the state Department of Revenue.

On the other hand, net sales taxes were down 1.8% in February compared to the same month a year ago.

Corporate income tax revenues rose 44.1% last month. As with income taxes, refunds were down slightly while tax payments showed a large jump.

Georgia House taking coronavirus precautions

ATLANTA – The Georgia House of Representatives is taking note of coronavirus.

House Speaker David Ralston announced Tuesday that the chamber will limit who can be on the House floor starting Thursday, the next day the General Assembly is in session.

Until further notice, there will be no House pages, the school-age young people who carry messages back and forth to lawmakers. Also, the House will not bring guests to the floor for “invite resolutions,” which honor Georgians from around the state for accomplishments from high school sports champions to beauty pageant winners.

“Out of an abundance of caution … the floor of the House will be limited to members, authorized staff and the media subject to the House rules,” said Ralston, R-Blue Ridge.

The speaker said the visitors gallery above the House floor will remain open to the public. But he urged those who want to follow the progress of the House to do so online.

“We’re not trying to be alarmist,” Ralston said. “We’re trying to be cautious and protect the people who need to be here so we can continue our work.”

The Georgia Senate is taking a different approach. Lt. Gov. Geoff Duncan, who presides over the upper legislative chamber, announced Tuesday the Senate will remain open for public access while monitoring the situation.

“We are in Phase 1 of this virus,” Duncan wrote in a letter to the senators and their staffs. “At this stage, we should be using good common sense to protect ourselves, the staff and visitors to the Capitol.”

Duncan reiterated the precautions against coronavirus that are being echoed around the world, including frequent handwashing, staying home when sick and avoiding handshakes.

“This is an evolving situation, and the [Georgia Department of Public Health] and the governor’s task force [on COVID-19] are working hard to stay ahead of it,” Duncan wrote.

The General Assembly will be back under the Gold Dome on Thursday for the typically lengthy annual Crossover Day, the deadline for bills to make it through at least one legislative chamber in order to remain alive for the current session.

Georgia House passes income tax cut

Georgia Rep. Brett Harrell

ATLANTA – The second phase of a state income tax cut Georgia Republicans launched two years ago cleared the state House of Representatives Tuesday.

Lawmakers voted 100-68 nearly along party lines to reduce Georgia’s individual income tax rate from 5.75% to 5.375%, effective next Jan. 1. The General Assembly approved the first phase of the tax cut in 2018, reducing the rate from 6% to 5.75%.

This year’s bill, which now moves to the Senate, also would offer a new earned income tax credit for income-eligible Georgians and triple the state’s tax credit for foster parents from $2,000 to $6,000 a year.

While Gov. Brian Kemp has expressed reservations about doing another tax cut this year because of the state’s tight finances, House Republican leaders have supported the reduction as fulfilling a promise they made to voters.

“It’s important that we keep our promises,” said House Ways and Means Committee Chairman Brett Harrell, R-Snellville, the bill’s chief sponsor.

House Democrats argued the state can’t afford another tax cut that would primarily benefit upper-income taxpayers. They also accused Republicans of low-balling the hit the tax cut would inflict on the state budget.

House Minority Leader Bob Trammell said the tax cut would eventually cost the state $600 million a year, not Harrell’s estimate of $98 million during its first year in effect and $250 million annually in the out years.

“This bill as is creates a hole in terms of revenue,” said Trammell, D-Luthersville. “We should go very slowly before we go into a change of this significant a nature.”

But Harrell said other legislation that would increase state revenues would help offset the impact of the tax cut. He pointed to a bill the General Assembly passed in January imposing the state sales tax on purchases Georgians make through third-party market facilitators including Amazon, and pending legislation that would prohibit taxpayers who itemize from deducting federal income tax payments from their state tax bill.

“We are not going to put the state, the citizens of Georgia and our valuable programs at risk,” Harrell said.

The income tax cut would apply not only to individual Georgians but to small business organizations including S-corporations, LLCs, partnerships and sole proprietorships. However, Georgia’s corporate income tax rate would remain at 5.75%.

Georgia House signs off on fiscal 2021 state budget

ATLANTA – The Georgia House of Representatives adopted a $28.1 billion state budget Tuesday that would restore many of the spending cuts Gov. Brian Kemp proposed in January.

The fiscal 2021 budget, which passed 134-35 and now heads to the state Senate, would soften the impact of spending reductions to state education, health-care programs and public safety services House Republican leaders argued are vital to Georgia taxpayers.

“There may be more changes in this document than any budget you’ve ever seen,” House Appropriations Committee Chairman Terry England told lawmakers before Tuesday’s vote.

To achieve the budget savings needed to restore the spending cuts, the House among other things cut in half the teacher pay raise the governor recommended, from $2,000 per teacher to $1,000. But House lawmakers still found enough money in the budget for 2% merit pay raises for all state employees and targeted increases of 2%, 4% and 5% for workers in state agencies suffering high turnover rates.

However, the House was only able to restore 236 of 1,212 vacant positions in state government the governor proposed eliminating.

“State employees are being asked to carry more of the load,” said England, R-Auburn. “There should be some financial recognition of that.”

Key additions the House made to the budget include $19.7 million to expand Medicaid coverage to low-income mothers for up to six months after the birth of their babies, a proposal prompted by Georgia’s high maternal mortality rate.

“This is a major step in taking care of our Medicaid mothers,” said Rep. Sharon Cooper, R-Marietta, chairman of the House Health and Human Services Committee.

The House also put money back into the budget to help the Georgia Bureau of Investigation reduce a rape test kit backlog that has long plagued the agency, funding for local accountability courts aimed at reducing the state’s prison population, funding for grants to county boards of health and money to hire two environmental engineers to monitor the disposal of coal ash at Georgia landfills.

Besides the teacher pay raise, the House budget adds 1,000 slots for children to attend pre-kindergarten and funds counselors in Georgia schools to the full allotment of one counselor for every 450 students.

The Department of Behavioral Health and Developmental Disabilities would receive an influx of funds for “personal services” to help families caring for disabled relatives lead more normal lives.

“Many of these services allow parents and caretakers to go out and work a job,” England said. “It gives them a respite as well.”

But the budget’s Democratic opponents argued Republicans didn’t restore enough of the governor’s spending cuts in areas including personal services, criminal justice reform, veterans services and maternal mortality. A legislative study committee recommended late last year expanding Medicaid coverage for new mothers for a full year.

Rep. David Dreyer, D-Atlanta, blamed the income tax cut then-Gov. Nathan Deal pushed through the General Assembly two years ago for the revenue crunch that prompted the spending cuts.

“We have made a policy decision with this budget that we would rather cut taxes than adequately serve many of our Georgia residents,” he said.

But Rep. David Knight, R-Griffin, who chairs one of the appropriations subcommittees, said House Republicans did the best they could with the hand they were dealt.

“We came in here with reduced revenues, faced with cuts,” he said. “We rolled up our sleeves and went to work to figure out how to allocate the resources we had.”