Showing posts with label Georgia Budget and Policy Institute. Show all posts
Showing posts with label Georgia Budget and Policy Institute. Show all posts

Friday, March 06, 2009

Georgia GOP: Cut Critical Services, Fund Huge Corporate Tax Cuts

Georgia Republicans would rather spend millions giving big tax breaks to corporations than pay for immunizations for babies. And, they're willing to spend that money without presenting a scrap of research supporting their "feeling" that such tax breaks will spur economic development and therefore increase other revenue streams. Who knew the GOP would end up being the touchy-feelly party? Well, except for that.

Yes, the GOP, with a few Democrats in tow, have led a remarkable legislative session. Remarkably ironic. In the face of an historic 3.1 billion dollar deficit, they hope to create new tax breaks for big corporations-tax breaks that stand to cost Georgia tens of millions, if not billions of dollars, and necessitating cuts to many critical services and jeopardizing future revenue. According to a must-read commentary by Sarah Beth Gehl with the Georgia Budget and Policy Institute,

In the coming days, the Georgia House of Representatives will debate and vote on whether to phase-out the state corporate income tax and create several temporary tax breaks for businesses. They will simultaneously work on passing a budget that provides fewer immunizations for infants and makes cuts to QuickStart, Georgia’s customized training program for economic development. These are just a few of the many cuts to vital services prompted by the precariously steep decline in state tax dollars.


The short story? Georgia Republicans favor cuts to children's health care, public schools and grassroots economic development programs (QuickStart) in order to fund tens of millions in tax breaks for big corporations.

Georgians who can't find jobs or afford to pay their mortgages, together with locally elected officials who can't keep police on the streets and teachers in the classrooms recognize this proposal for what it is: an irresponsible dereliction of duty.

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Thursday, August 07, 2008

Sonny Needs a "Don't List"

Governor Perdue needs a "don't list" and this goes at the top:

"Don't go to China for the Olympics when your state is facing a 1-2 billion dollar shortfall and schools systems across the state are scrambling to raise property taxes-if they can-to make ends meet in light of your most recent cuts."

And, yet, off he goes. Nero's got nothing on Sonny Perdue.

When they meet tomorrow, expect the Bibb County Board of Education to vote to raise the millage rate. They have no choice. Sonny's most recent cuts to education will cost Bibb County over 2 million dollars. And, we're the lucky ones. Some school systems, like Richmond County, are maxed out and can't raise the millage rate. One source said that some systems have hired business people to look at their budgets and answer the question: "How can we do what the law requires with the money we have available to us?" The answer? Typically, "close schools." Parents, of course, love that idea. Not.

Let's be clear. This crisis did not happen overnight. It was entirely preventable. Sure, the recent economic downturn has exacerbated the problem, but it is the Republican mismanagement of the finances of this state over the last six years, and the consistent effort to starve public education out of existence, that is to blame for this mess. And, Gov. Perdue, who with his fish fries and all has a 60+% approval rating-for doing what I can't tell you, slinks off to China instead of having the political kahunas to stay here and deal with the problem. What a COWARD. The only thing worse would've been passage of Richardson's "GREAT" plan-then school boards would've had to call for a referendum to ask for sales taxes to be raised. In the meantime, I suppose they could've given teachers IOU's.

Note to Jim Galloway: Here's a prediction for you. With school systems scrambling, and parents screaming, Sonny's going to come back from China and miraculously save the state by dipping into the reserves. He will do this because the last thing he wants to do before the November election is to call a special session. He will then put on his white hat, grab a fishing pole and hold a prayer service, hoping, probably correctly, that no one notices that he's responsible for this mess in the first place. Graduation coaches my ass. I think we would've been better off to hire governance coaches.

And, note to Erick Erickson: I know you're going for ratings on the radio, but when you, an elected official, somehow become omniscient and decide to use your airtime to declare that the Bibb school board members have their heads in the sand, think all is wonderful with our schools and that all the parents who send their kids to private school are racists-you're recklessly stereotyping other community leaders and painting an inflammatory, inaccurate picture of their position on the many, many challenges of a school system where more than 70% of the children qualify for free or reduced price lunch. No one on that board thinks things are great, and I suspect that if you had attended a few school board meetings, you'd know that. I think it's wonderful that you plan to send your child to a public elementary school. Why don't you go ahead NOW and volunteer some of your time to help make OUR public schools a better place for OUR children? There's plenty to do. By the way, did you know that when it comes to allocation of state resources for schools, Bibb is considered a high wealth county, while Houston is considered low wealth? Yes, you read that right. That means that part of the money designated for "rich" counties like Bibb is re-routed to "poor" counties like Houston. Sound a little "fishy" to you? Me, too. Oh, and the formula is based on what the tax digest "should be"-not what it is in a place like Bibb where we've not been able to get the valuation it right for the last two years, but what the state thinks it should be. So, between 1.6 billion in cuts and the bad revaluation, Bibb schools are between a rock and a hard place. I challenge you to get out your crowbar.

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Saturday, October 13, 2007

Stick a Fork in Glenn's Tax

Over the vehement opposition of almost everyone except a few colleagues to whom he can toss plumb committee assignments-or not, Speaker Richardson continues to push his not-so-great tax on everything-a plan that's changing faster than Richardson's moods. But, his latest desperate addition is the death knell for this hair-brained proposal. Stick a fork in it. It's all over but the shouting.

On Thursday, Georgia State released a report on the plan that showing what Alan Essig with the Georgia Budget and Policy Institute told us in January: the plan simply won't produce enough revenue. It's way short-like billions short, unless Richardson includes sales tax on business-to-business services, which he now, predictably says he will do.

The problem is, the experts, like the folks at Georgia State or Georgia Budget and Policy, never even considered that Richardson would propose taxing business-to-business transactions because doing so makes zero economic sense. Essig said that taxing business-to-business transactions would hurt the state's economy and that taxes should be charged only when a product is sold to a consumer. This new wrinkle will add cost at every step of the production process-cost that will ultimately be passed on to consumers (read: "you and me").

So, not only will we be paying increased sales tax, including a brand spankin' new tax on services, the goods we purchase will cost more because of increased cost to business to produce the products. In short, the cost of everything goes up, even before the new sales tax is applied.

Don't spend too much time thinking about it. I'm sure that Richardson will continue his dog and pony show, but the Glenntax is D.O.A.

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Thursday, August 23, 2007

Essig to Speak in Macon

The mere mention of the word "taxes" may make you either yawn, start looking for an exit or both, but next year, Georgians are going to wish they'd paid attention. Some of the tax proposals that are slated to be debated during next year's legislative session could dramatically impact your pocketbook-and not necessarily in a good way. Plus, if Speaker Richardson has his way, taxing authority will dramatically shift away from local governments to Atlanta. It's fair to point out that the person in Atlanta that holds the purse strings most firmly is the Speaker of the House, a position that will become even more powerful if Richardson gets his way. You can see where this is going.

Next Friday, you have an opportunity to learn more about these issues. On Friday, August 31 at noon, Alan Essig, executive director of The Georgia Budget and Policy Institute will be the guest speaker for Politics and Lunch, a monthly lunch and learn program in Macon. The luncheon will be held at The Power Station at 1015 Riverside Drive in Macon. Essig will address the various tax proposals that are likely to be debated in the legislature in 2008. The cost, including your lunch is $10.00. To make reservations, please contact Amy Morton at (478) 741-1138 or AmyMorton@aol.com .

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