December 23, 2010
Budget, taxes stand out as top issues for 2011 session
The 2011 legislative session of the Georgia General Assembly will convene Monday, Jan. 10, the same day the new Governor, Nathan Deal, will be inaugurated. Economic issues - including how to balance next year's state budget and action on forthcoming recommendations from a special tax reform council - are expected to dominate the agenda at the Capitol.
Annual State Budget: Although state revenues have increased by 7.4 percent through the first five months of fiscal year 2011, balancing next year's budget will be more difficult because Georgia will not be able to take advantage of federal stimulus funding as we have the past two years. Gov.-Elect Deal, who is proposing a tax cut for corporations, has already put local public school systems on notice to brace for further funding cuts. Over the past eight years, the state has already slashed more than $3 billion in funding to local schools, causing larger class sizes, fewer school days, teacher furloughs and layoffs and higher local property taxes.
Tax Reform: Last session, the legislative majority created a new Special Council on Tax Reform and Fairness, which is charged with conducting a thorough study of the state's current revenue structure and then recommending changes to the Governor and the General Assembly. A special legislative committee will then consider the recommendations, with any legislation approved by that committee going directly to the floor of the House of Representatives and the Senate for a vote - bypassing the regular committee process. Among the items reportedly under consideration by the council are ending or reducing certain special-interest tax breaks, reinstituting the state sales tax on food, increasing the tobacco tax and imposing a new tax on some professional services.
Immigration Issues: Legislation that has already been introduced (HB 25) would prohibit Georgia's public colleges and universities from accepting illegal immigrants as students. It is also expected that the newly increased Republican majority will propose an "Arizona-style" law cracking down on illegal immigrants. But the Georgia Farm Bureau is among the groups opposed to such a proposal, calling immigration a federal issue and citing the $65 billion Georgia agricultural industry's reliance on migrant workers. The Farm Bureau adopted a policy opposing "any immigration law that discriminates against the farm worker and puts the farmers of Georgia at a disadvantage to farmers in other states."
Reapportionment: As it does every decade, the state will redraw its district boundaries for the state House and Senate as well as our seats in the U.S. House of Representatives, based on the population data reported by the 2010 Census. Georgia will pick up one additional congressional seat for a total of 14. The reapportionment process will begin during the 2011 session, and the new legislative and congressional districts will be in place for the 2012 election.
Other Issues: Increases in college tuition have outpaced growth in Lottery sales, causing a deficit in the HOPE Scholarship fund. Gov.-Elect Deal has signaled that he might propose changes in HOPE eligibility criteria to address the shortfall. The Sunday alcohol sales debate is also expected to be revived. Some legislators are advocating a change in the Constitution to allow pari-mutuel wagering on horse racing to promote tourism in Georgia and boost state revenues.
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