Dahlonega-Lumpkin County Chamber of Commerce

Senate Cultivates Climate of Business and Job Growth

ATLANTA(April 8, 2010) - The legislature's primary goal this session is to cultivate an environment that revitalizes Georgia's job and economic sector.  The Senate has taken significant steps toward that goal by passing legislation centered on less spending, lower taxes, providing business growth incentives and finding government efficiencies to spur economic development.  Here's a look at some of the key solutions the Senate has passed so far that will drive Georgia's recovery.

Job Growth (HB 1023): Now awaiting final approval from the governor, the Jobs, Opportunity, and Business Success Act of 2010(JOBS Act of 2010) is a shot in the arm to Georgia's sluggish job sector.  The Senate made quick work of passing this legislation that is designed specifically to encourage and reward those who invest in Georgia and create jobs.  First, employers will receive credit against the unemployment tax if they hire someone currently receiving unemployment benefits.  Three other key elements of the bill include the creation of an "angel investor" tax credit, which will reward those who invest in Georgia start-up companies that create jobs.  The bill also updates Georgia tax code by eliminating the state's "net worth" tax, a 1930's relic that punishes companies that accumulate wealth.  Finally, there will be a 25 percent reduction in the long-term capital gains rate once the state's reserve fund reaches $1 billion, followed by a 50 percent reduction the next year. By recognizing that free-markets, investment, and the private sector are the key to job recovery, we're giving Georgia a competitive edge in creating economic growth.

Property Taxes (SB 346 & SB 517): Senate Bill 346 is the most sweeping overhaul of the Georgia property tax system in decades and achieved unanimous approval in the Senate.  The Property Tax Assessment and Appeals reform bill is aimed at ensuring all Georgia properties are properly assessed at Fair Market Value and that property owners have guaranteed rights to appeal.

Senate Bill 517 eliminates the state's portion of a tax on the American Dream, which is home ownership.  Homeowners need as much financial relief as possible and should not be over-taxed.  The State of Georgia currently levies an ad valorem tax on all property, and is a component of local property tax bills.  The state millage rate is a quarter mil (.25/$1,000 assessed value).  Counties argue that the state requires them to do property assessments and to collect ad valorem tax.  This is a major step in allowing local governments to have more control over property taxation.  Removing the state ad valorem tax will have no effect on counties, cities and school funding.  The prohibition of the tax begins once state reserve funds reach $500 million.

Health Care Protection (SB 317): Georgians deserve the right to choose their own health care.   The actions by the President and the Democratic-controlled Congress were clearly out of touch with the American people and the people of Georgia.  Therefore, the Senate passed the Health Care Freedom of Choice bill, which prohibits any federal mandate from compelling Georgia citizens, employers, or health care providers to participate in any health care system. The bill does not affect current health care services provided in Georgia.

Affordable options for Health Insurance (SB 407):  This bill allows Georgia health care customers to buy approved out-of-state health care insurance plans.  The Georgia state insurance commissioner will have the authority to identify at least five states with health insurance laws and regulations substantially consistent with Georgia law.  The state could then approve individual health insurance policies for sale in Georgia.  This ensures consumer protection with the states coming together to approve quality, highly-respected insurance providers.  Out-of-state companies offering health benefit plans will be subject to regulation by the Georgia insurance commissioner.

Government Efficiency (SR 510 & SR 1231): SR 510 will save millions in taxpayer dollars and allow Georgians to have a greater voice in how their money is spent.  Through an amendment to the State Constitution, the resolution allows the General Assembly to authorize the State Properties Commission (SPC), the Board of Regents of the University System of Georgia, or both to enter into multi-year rental agreements.  By allowing the state to enter into multi-year leases, we could save an estimated $37 million over 10 years.

SR 1231 allows Energy Saving Performance Contracts (ESPC) if approved by Georgia citizens on the November 2010 ballot.  Performance contracts would allow state agencies to divert funds that would normally be spent on utility bills into building improvements that lower energy consumptions.  This would create jobs and lower energy costs at the same time.  If Georgians authorize ESPCs via a question on the November 2010 ballot, then Georgia could see a substantial amount of economic activity beginning in early 2011, with total numbers easily reaching the hundreds of millions.

Transparency in Government Act (SB 389): The public information website open.georgia.gov will be expanded to include all three branches of government, any regional education service agency, all local boards of education, federal pass through dollars and contracts and expenditures made by the General Assembly.  With this legislation, the General Assembly will be included in the auditing and tracking functions of open.georgia.gov, run by the Department of Audits and Accounts.  This bill ensures all fiscal actions of the entire legislative arm of state government are available for the general public to find.

Public-Private Partnerships along Highways: Georgia's rest areas and service to travelers along interstate highways will greatly improve if Georgia is allowed to establish partnerships with private companies and franchises.  Senate Resolution 822 urges the Georgia Department of Transportation to obtain a waiver from the Federal Highway Administration that would allow commercial operations in rest areas along the interstates in Georgia.  The goal is to partner with the private sector to help save money, maintain our rest areas, keep them open later, serve more people, and help local economies.

Sincerely,
Chip Pearson, State Senate 51, Chairman of Economic Development