Due to the state’s budget crisis, our public school educators and other state employees have had to take unpaid furlough days as a cost-saving measure. Three additional furlough days between now and June 30 are proposed in Gov. Perdue’s budget recommendation.
Lt. Gov. Casey Cagle and House Speaker David Ralston have announced a plan for members of the Senate and House of Representatives to take additional furlough days, which would save the state an estimated $2.7 million.
I support this plan because as elected officials in the legislative branch of government we must lead by example. We are not and should not be excused from giving up part of our legislative salaries to help in the very difficult task of balancing this year’s budget.
By the end of fiscal year 2010, lawmakers will have taken 11 unpaid furlough days, including one day a month from August through December last year. Other state agences have each taken between three and 12 furlough days.
Budget Hearings: A series of Appropriations Committee hearings Jan. 19-21 began the legislative process for amending the state budget for the remainder of fiscal year 2010, which ends June 30, and the budget for fiscal year 2011, which begins July 1. Gov. Sonny Perdue released his budget recommendations, which propose reducing the current year’s budget from $18.6 billion to $17.4 billion to reflect severe declines in state revenue collections. The governor is also reintroducing his plan for a 1.6 percent tax increase on hospitals and other health care providers to partially make up for an estimated $506 million deficit in the Medicaid program. Lawmakers rejected the governor’s so-called “sick tax” last year out of concern the extra costs would be passed on to patients’ health care bills and/or force some already-struggling rural hospitals to close their doors. For the FY 2011 budget, the governor is forecasting a 4.2 percent increase in state revenues and proposing $901 million in additional state debt to pay for construction and other capital outlay projects. I am among the legislators and economic observers who are concerned that growth rate is unrealistically optimistic, with the state not expected to reach 2007 revenue levels again until 2014. If we instead planned on flat growth, it might prevent so many cuts and the need for deep budget adjustments next year.
Lost Revenue: Also during the budget hearings, state Revenue Commissioner Bart Graham admitted as much as 5 to 10 percent of sales tax proceeds is going uncollected. Just 5 percent of the sales tax revenue would amount to $250 million.
Jobless Rate Increases: Statewide, the unemployment rate jumped to 10.3 percent in December, matching the record high jobless level registered last July. The percentage of Georgians without jobs was significantly higher than the 7.5 percent recorded in December 2008, with the number of payroll jobs down by about 175,000.
Health Insurance Reform: The issue of healthcare reform has been at the top of the political agenda at the federal level for most of the past year. This week, legislation was introduced in the Georgia Senate that would provide consumers with some health insurance protections at the state level. SB 330 would prohibit insurers from imposing a cap on the amount of lifetime benefits a policy holder can receive and would prohibit insurers from canceling a policy because of a misstatement or omission by the policy holder in the original application, unless the misstatement directly relates to the illness that produced the claim. SB 331 would enable parents to keep their dependents on their health insurance plan up to age 25, even if the dependents are not full-time students, and would make it easier for small businesses to offer group health insurance to employees by allowing them to pool their resources with other businesses to lower the cost of coverage.
Racial Profiling Ban: I have co-sponsored SB 325, which would address the issue of racial profiling by requiring law enforcement officers to record the age, gender, race and ethnicity of every motorist they pull over. That data would be analyzed later to detect trends on whether racial profiling is occurring. The bill also provides for annual officer training. Sixteen other states currently prevent racial profiling of motorists and pedestrians.