The 2008 session of the Georgia General Assembly has come to an end. State lawmakers wrapped up the session at midnight on April 4.

Overall, the session will be remembered for what did not get done and that is unfortunate. The leadership of the House and Senate failed to reach agreement on a plan to cut taxes, to make major reforms in transportation improvements, and address critical weaknesses in the state’s trauma care network.
Lawmakers did accomplish the one task which is essential each session by adopting a state budget. 

Georgia’s budget for fiscal year 2009 will be a total of $21.1 billion. The final version of the budget reflects a decrease in the revenue estimate by $245 million resulting from a downturn in the state’s economy.

Although there is always room for further cuts, this year’s budget is one of the leanest in years. Lawmakers, more than in the past, refrained from unnecessary spending in order to meet the needs and priorities of Georgia’s citizens.

The final version of the budget emphasizes the importance of education. $50 million in austerity cuts to education in 2003 and 2004 were restored, and $210 million in funds for enrollment growth were included in the budget. In addition, teachers received a pay increase of 2.5% and $1.3 million was added for the math mentoring program in Georgia.

In addition to teachers, all state employees received a 2.5% pay increase and pay hikes were included for state-paid law enforcement officers.

Even though lawmakers failed to reach agreement on an on-going solution to the state’s inadequate trauma care system, the FY09 budget does include $60 million in funding to assist this network.

The Georgia House of Representatives made tax relief its number one priority this session. Led by Speaker Glenn Richardson, House leadership went to work a year ago on a plan to abolish all property taxes in Georgia. In response to concerns about the proposal, it was scaled back significantly. Finally, the House passed overwhelmingly a tax cut package that abolished the car tag tax, froze assessments on real estate at 2008 values, and abolished the state portion of the property tax.

Late in the session, the leadership of the State Senate proposed an alternative tax relief plan which would cut the state income tax rate.

Both plans had merit. Compromise was not only possible, but should have been reached. However, the leadership of both chambers, for whatever reasons, were not able to reach agreement. While the “blame game” has been played out, the big loser is Georgia’s taxpayers. This type of stalemate should never be allowed to happen ever again.

In next week’s capitol report, we will look at some of the bills which did pass this session and we will look ahead.

In the meantime, if you should have questions about any issue in this year’s session or if I may be of assistance to you, please contact me at (404) 656-5943 or by e-mail at dralston1@etcmail.com.