LETTER: Fuse has been lit; Georgia budget is in a state of chaos

State department heads met with the committee members for discussions on more cuts to the $18.2 billion spending plan proposed by Gov. Perdue, who is forecasting a 4.2 percent growth in revenue for next year, despite the fact that state tax collections have fallen 14 months in a row and are down by 13 percent so far in fiscal year 2010.

The decline in revenues is so steep that the current year’s budget, already cut by $1.2 billion, will have to be reduced by another $210 million. It has been reported that federal stimulus/bailout funds budgeted in FY 2011 will have to be transferred into the 2010 budget to make up for that shortfall between now and the end of the current fiscal year, which is June 30.

That transfer will contribute to, as I have predicted, a $1 billion to $1.5 billion shortfall in the 2011 budget. When stimulus/bailout funds run out next year, we could be looking at a deficit of $3 billion to $4 billion for fiscal year 2012, a problem for the legislature and a new governor to deal with after Gov. Perdue has left office.

The fact of the matter is that Georgia’s budget is now a ticking time bomb. The fuse has been lit by the economic recession, but the mechanics of the bomb were put in place by eight years of fiscal irresponsibility and systemic problems within the state’s budgeting process.

I take no joy in saying “I told you so,” but I have been voting against the out-of-control budget policies of this administration for seven years, each time with a public warning that disaster was just around the corner. The numbers we are seeing at these Appropriations Committee meetings are not pretty, and the reports we are hearing from department heads are not easy listening.

The citizens of Georgia are now facing the consequences of fiscal irresponsibility, and everything is on the table for discussion.

The current legislative leaders have indicated they are considering more personnel cuts. Department heads are being asked for lists of employees who are fully vested in state pension benefits, with the thinking being they could be encouraged to retire early. The Senate Majority Leader said there will be “massive layoffs” of thousands of state employees.

Severe budget cuts to law enforcement and our criminal justice system are now threatening public safety in our communities. Across the state, Georgia Bureau of Investigation Crime Labs are scheduled for closing. The traveling public will be less safe due to the proposed closing of two Georgia State Patrol posts. Despite our growing population, the number of State Troopers on our roadways has decreased from nearly 1,000 to approximately 700 in recent years.

Further cuts in Quality Basic Education funding to our local school systems will simply pass the buck once again to local property owners in the form of tax shifts. These cuts over the past eight years now total nearly $2.5 billion, the major reason I have consistently voted against the budget plans of recent years.

The University System of Georgia has already cut $360 million from its budget since July 1, 2008, and is being told to cut another $300 million for next year. The result will be massive tuition increases for students, thousands of personnel layoffs and place Georgia’s public colleges and universities into what the University System Chancellor said is the educational equivalent of “bankruptcy.”

These are just a few of the consequences we expect to hear about as budget meetings are continuing this week before the full legislature reconvenes on Monday, March 8. Truly, we are in a state of chaos regarding the state budget.

As I told the Hart County “Eggs and Issues” breakfast gathering on Saturday, Georgia has gone several years without a truly balanced budget as mandated by the state Constitution. Revenues did not match revenue projections, and we have had to fix the unbalance in midyear. The past two budgets were bailed out by federal stimulus dollars, but we cannot count on that funding in the future.

The current leadership has gone beyond looking at spending cuts and now is considering other means of raising revenues. The governor has proposed a hospital tax increase, and a tobacco tax increase is also under consideration. Legislation has been introduced to bring pari-mutuel betting to Georgia in the form of horse racing, and one Perdue administration official has raised the idea of bringing back video gaming with a tax of $250 on each machine going to the state treasury.

I value your opinion. As the state government starts to look “outside the box” for ways of dealing with the budget crisis, I would like to know your views and ideas. Please call or e-mail me at the contact information below, so that your voice is heard in this process.

Rep. Alan Powell (D-Hartwell) represents the 29th District (Franklin, Hart and Madison counties) in the Georgia House of Representatives. Contact him at 507 Coverdell Office Building, Atlanta, GA 30334; by phone at 404-656-0202 or by e-mail at alanpowell23@hotmail.com. For more information, visit www.alanpowell.net.