Under the Gold Dome

The final bell rang Friday, April 4 under the Gold Dome, signaling the end of Georgia’s 2008 legislative session. There were several political dust-ups among Georgia’s Republican leadership – but they were more border skirmishes than duel-to-the-death battles.

Many bills still require gubernatorial action, meaning a stroke of Gov. Sonny Perdue’s quill could be the equivilant of a gloved slap to the face in coming weeks. Under the state constitution, the governor may sign, veto or choose to do nothing on a bill.

For the second year in a row, state leaders did not deliver on any meaningful tax cut measures. They spent a good deal of time talking about tax reform and grabbing headlines for ideas, but there will be nothing new jingling in voters pockets when they go to the polls in November.
The state also failed to pass any meaningful transportation fixes or provide much-needed support for the state’s failing trauma health care systems.

With five minutes to go until midnight on the 40th legislative day, the House released a conference committee report on a major transportation funding initiative called “T-SPLOST.” But the senate voted against its own measure because it could not agree with the House changes.

Some political insiders say Lt. Gov. Casey Cagle was not quick enough with his last-day leadership style. Back in the day of Lt. Gov Pierre Howard (circa 1992), the final day’s bills, which are mostly conference committee reports, could be heard on the floor every 15 seconds. Not so under Cagle, say sources, who reportedly took a full minute on each measure. Sounds fast – but not fast enough for the final day of the session, say sources.

State legislators managed to pass a bunch of bills that might leave many voters scratching their heads in wonderment come election time (see legislative wrap-up below).

Same Bat Taxes, Same Bat Channel
A much talked about, much-debated, and much-maligned tax overhaul debate began last year when Speaker of the House Glenn Richardson (R-Hiram) traveled around Georgia talking about his plan to create a flat tax.

Richardson had hired Reagan financial guru Arthur Laffer to provide a top-to-bottom tax analysis of state taxing methods and what emerged from that look-see was a plan realign the tax authority from local governments to the state.

Richardson’s flat tax would have replaced property tax with taxes on goods and services. Instead of paying your house tax bill in the fall, for example, you would be taxed by your accountant in April, your lawyer in May and so on.

Dubbed the GREAT Plan (Georgians for the Repeal of Every Ad Valorem Tax) Richardson’s idea didn’t go over well. He angered local governments, school boards, tax gurus and Republican loyalists who believed that redistribution of wealth might be the philosophy of some political party – but not theirs.

Last month, Richardson converted his not-so-GREAT tax plan to a much more palpable initiative that would have eliminated ad valorm taxes only from cars, trucks and motorcycles. Popular with voters, the “birthday tax,” as it has been dubbed since it comes due annually, was conceived and supported by Speaker Pro Tem Mark Burkhalter (R-Johns Creek).

Like Reality TV or a Train Wreck, You Just Can’t Look Away
The birthday tax measure passed the House with bi-partisan support, but Richardson’s name on the bill, along with a lingering power struggle between the House, Senate and Governor from last year’s session, made the measure a target for last minute legislative hostage-taking – a political maneuver used by both chambers in order to get their own initiatives passed.

In addition, House leaders never said (or may have been unwilling to say) how they would reconcile the $700 million state revenue shortfall created by the ad valorem tax elimination.
Lt. Gov. Cagle introduced his own tax-savings plan late in the session. The Lite Guv’s plan called for reducing income tax by 10 percent over a five-year period and he had a number of mechanisms for making up for the lost revenue – something the House plan lacked.

“This [plan] is consistent with conservative principals,” Cagle said during a telephone interview. “The responsible thing to do is to find those cuts.”

In this last week of negotiations, no compromise was reached on the tax bills. Bottom line: in fighting doomed any real tax reform.

Also biting the legislative dust this week was a bill that would have prevented counties from backdating billboard permits in newly incorporated areas ala Fulton County and Johns Creek. The measure, authored by Burkhalter, stalled in the Senate. Some accused Cagle of holding the bill hostage; others said the billboard lobby, a large contributor to Cagle’s election war chest won out.

And in a move that made even my own 70-year-old conservative Republican mother blink in disbelief and ask for further explanation, the sales of alcohol on Sundays is still banned in Georgia. But the new Gwinnett arena folks, who were tied to the Sunday alcohol deal, will be able to sell beer in their facility on Sundays through a negotiated deal. Go figure.

Legislative Wrap-Up
It’s a Go

- The state’s $21 billion budget passed last week and included a 2.5 percent for teacher raises and $1 billion in new school construction costs. The passed budget also included $6 million in pet projects for some legislators. With shrinking state revenue projected for the coming year, expect Gov. Perdue to line item veto several items – including some pet projects from those who have opposed him.
- Veterans Day will be recognized as school holiday
- A new funding formula allows school systems to apply for waivers from state regulations that govern teacher salaries, classroom size and curriculum decisions.
- School tuition tax credit goes to the governor for his signature. The bill is aimed at the ailing Clayton County School system, but the tuition credit can apply to other public schools, too. A private school choice bill did not pass.
- A bill that will allow Georgians with concealed weapons permits to carry their firearms on MARTA and into restaurants (as long as they don’t drink) heads to Perdue for his signature. The senate tacked on a last minute provision that allows some Magistrate Court personnel to also carry weapons.
- Auto insurance rates will no longer require pre-approval from the Insurance Commissioner’s approval.
- Car seizure without a valid driver’s license is now permitted. If you can’t show your driver’s license, law enforcement officers can impound your car. Aimed at illegal aliens, the measure applies to everyone.
- Sex offender residence bill now heads to governor’s desk. A bill that reinstates a 1,000-foot barrier between sex offender residences and school bus stops passed both chambers. Found to be unconstitutional by the courts more than a year ago, it appears we are going to try it again. Maybe the court will change its mind.
- Willie Otis “Pete” Williams will received $1.2 million from the state for being wrongfully jailed for twenty years for a rape he did not commit. Williams will receive a lump sum payment of $100,000 and the balance over 20 years.
- The “Merlot to Go” bill has passed. Under the measure, uncorked and unfinished wines can be placed in a sealed bag or container and transported in a car trunk or glove compartment. The governor has previously vetoed similar legislation.
- In a related bill, the state legislature has voted to allow online/Internet wine sales. Georgians could order up to 12 cases of wine each year directly from wineries.
- A bill that requires tobacco manufacturers to create cigarettes that stop burning when smokers stop puffing on them has passed. The measure is aimed at reducing house fires and deaths as a resulting of still burning cigarettes.
- Senior voters can go to the front of the line in a measure that passed last week. People over 75 can go to head of the line for absentee ballots.
- A bill authored by Rep. Tom Knox (R-Cumming) that would allow for increased use of health savings account has passed. The bill also provides $146 million in tax breaks for insurers. The measure is meant to spark competition, while offering tax breaks for using medical savings plans.
- Consumers can “freeze” their credit records for $3. The measure headed to the governor for his signature, would require a copy of a police report and a payment of $3 to each consumer reporting credit agency.
- Early in the session, the legislature passed a comprehensive state water plan – a first of its kind and a very good thing for Georgia.

No-Go
- A no backdating of billboard permits bill petered out in the Senate. The battle to prevent nearly 31 billboards from being erected around North Fulton, after a settlement by the Fulton County Board of Commissioners, will not have state protection. The battle against billboards returns now to local lawyers and the courts.
- A childhood obesity bill, that would have required twice-yearly weigh-ins for school kids, was killed by the senate.
- Sunday alcohol sales in Georgia remains the same. Stock up before Sunday, says the senate and governor.
- Giving rights to unborn fetuses and outlawing “prenatal murder” did not pass. In the waning hours of the session, Rep. Bobby Franklin (R-Marietta) tried to attach his anti-abortion language to a bill aimed at dog fighting. Ruled out of order by Speaker Richardson, the tactic failed by a vote of 152-2. An earlier legislative measure that attempted to establish legal personhood in-utero was stopped in committee.
- State employees will not be held to new health standards. The failed bill would have imparted healthier lifestyle changes for state employees, but would not have applied to public officials, such as state lawmakers.
- No statewide tax overhaul passed this year, nor did any major transportation initiative.