Dahlonega-Lumpkin County Chamber of Commerce

For immediate release -- April 9, 2010

Are March 2010 revenues good news or just wishful thinking?

Possible good news came out of Atlanta last week when the March 2010 net revenue collections were up $10.5 million or 1.0 percent over March 2009. This is the first monthly increase in revenues since November 2008.  Governor Perdue said. “Springtime in Georgia always brings us the Masters and the Braves’ opening day, and I am hopeful we are also seeing the first buds of economic recovery.”

As a former economics professor at NGCSU, I would suggest that you look at the collections and follow the money trail.  Sure, collections were up, but so were the number of tax returns and refund payments compared to March 2009.  The Department of Revenue has processed 2.03 million tax refunds since January. That’s 214,000 more than last year totaling an additional $156 million in refunds returned to taxpayers.

Gross sales tax collections reported an increase of $7 million, but once the local sales tax had been redistributed, net sales and use taxes were down over $46 million.  Corporate income tax experienced a net increase of $12 million, but individual income tax was off $9 million.  Georgians are still driving.  The motor fuel taxes were up $11 million.

When all of the ups and downs are added together, being up $10.5 million in today's economy isn't bad.  Our revenues for the year when compared to FY 2009 are down $1.3 billion or 11.5 percent, so any positive number is cause to celebrate.

The FY 2011 Budget is still in the House waiting for the Senate to pass the necessary revenue bills so the Budget can be balanced.  The General Assembly was not in session this past week, but we met Monday to vote the Budget out of the various subcommittees of Appropriations.  At this time I cannot predict when it will pass out of the full Committee and on to the House Floor for a vote.

With luck, we’ll finish the session before the end of April, just in time for me to qualify for the July Primary Election for my sixth consecutive term as your State Representative.  All statewide offices and every member of the General Assembly will be up for election this year.

Over the last year, the General Assembly has drastically cut state spending in order to maintain a constitutionally mandated balanced budget.  As a result of these cuts, if adjusted for population per capita, the FY 2011 budget will be near FY 2000 levels.  While these cuts have made for a leaner state government, they will not fill the budget gap alone.  For this reason, the Georgia House passed a series of bills to shore up our state’s Medicaid program and begin charging the fair market value on fees for services provided by the state.

The first of these bills was House Bill 307.  This legislation creates a partnership between Georgia’s hospitals and state government in an effort to close the Medicaid shortfall, which is almost seven hundred million dollars.  It will accomplish this by implementing a temporary provider fee on certain hospitals to provide funding for the most vulnerable among us.  The plan has the support of the Georgia Hospital Association, the Georgia Alliance of Community Health, and Hometown Health.  Together, these organizations represent hospitals throughout the state.  This voluntary, self-imposed payment agreement will allow the state to draw down federal Medicaid dollars by a three to one ratio, while also preventing a possible 10.25 percent Medicaid rate cut to physicians and hospitals.  A rate cut of that size could be devastating for many of Georgia’s hospitals.

House Bill 1055 is another bill that will help our state close the budget gap and prevent major cuts to education, public safety and other state programs.  This bill corrects inconsistencies in various fees that are charged by the state.  Currently, some fees cover the cost of their respective service, while other fees fall incredibly short of covering the cost.  Some state fees are regularly updated while others have not been adjusted in over 50 years.  HB 1055 corrects these loopholes and brings all fees in Georgia up-to-date.  Some examples of fees included in HB 1055 are an annual Lobbyist Registration fee and a DUI Administrative fee.  Updates like this will get the state of Georgia out of the business of subsidizing services that should not be paid for by state dollars.

As we work to cut spending and close the budget gap, we must also make efforts to encourage job growth and improve our state’s economy.  The Jobs, Opportunity, and Business Success Act of 2010 – House Bill 1023 – will spur business growth and generate jobs for Georgians by creating tax credits for investors and providing tax cut incentives for employers.  These measures will encourage entrepreneurship and investments in Georgia, resulting in business expansion and job growth. This will in turn drive our economic recovery.

All of these bills have passed the state House.  They are vitally necessary to closing our state’s budget shortfall and passing a balanced FY 2011 state budget.  I hope that my colleagues in the Senate will quickly see their need and work to get them to the Governor’s desk as soon as possible.

My last Saturday breakfast with constituents for this session will be at the Wagon Wheel Restaurant in Dahlonega at 8 am on April 17.  Come over and learn more about what we accomplished this term.

During the rest of the session, I can be reached at 401 Capitol Avenue, Atlanta, Georgia 30334; 404/657-8534; e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it .  Or contact Gerald Lewy, my Communications Director at 706/344-7788.  He’ll know how to get your message to me.  Remember, the secret of good government is a well-informed electorate.

For more information contact:      
Gerald Lewy         
Communications Director
House District 9 – Amerson
471 Cloudland Road
Dahlonega, Georgia 30533
Phone/Fax: 706/864-4613
E-mail: geraldlewy@ windstream.net