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Are revenues bottoming out?
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The Department of Revenue reported a decrease of nearly $87 million, or -5.8 percent, in monthly net revenue collections compared to those reported in December 2008. With January marking the halfway point for fiscal year 2010, Georgia’s overall total revenue collection shortfall now stands at $1.148 billion, or -13.7 percent.  

December numbers
For the first time in many months, individual income taxes actually increased by some $47.3 million, or 6.3 percent. State sales tax revenues were down by 20.2 percent, and corporate income taxes declined 23.1 percent. Motor fuel taxes overall declined 15.5 percent, although excise taxes continue to be positive.  

Year-to-date revenue– after 6 months:
Individual income taxes are down $493million, or -11.5 percent.
Net sales and use tax collections stand at minus $449 million, or -16.2 percent.
Corporate income tax collections show a negative $87.6 million, or -24.4 percent.
Total motor fuel tax collections have declined by $73 million, or -15.5 percent although excise taxes (by the gallon) are slightly positive at 2.1 percent.  

As I mentioned in a previous column, Georgia’s current estimated shortfall is $1.26 billion, which means the state has budgeted $1.26 billion more than it expects to raise in taxes and fees. As of December, Georgia has now surpassed the $1.5 billion shortfall mark, which is what policy makers and department heads are budgeting to. This figure, though, presupposes that revenues will not decline any more over the balance of the fiscal year — what are the odds?  

Reserve fund status
Currently, the state has $271 million in reserves that have not been committed in the FY10 budget. Excluding the midyear adjustment of $167.7 million, this is the equivalent of about two days of state operations. In FY09 the state had 19 days of operations in reserves and in FY08, 31 days.

The governor’s teacher pay initiative
Gov. Sonny Perdue, during his final State of the State Address, expressed his plans to introduce legislation this session which would give current teachers the option of entering into a performance-based pay structure and require it of new hires. The specific details of his proposal are not entirely clear or complete at this time and once the legislation is filed, we will review for this column.

Bills introduced
in the Senate last week
SB 308:  The “Common Sense Lawful Carry Act,” introduced by Sen. Mitch Seabaugh, would clearly define carry areas and grant individual business and private property owners the right to choose whether or not to permit lawfully carried weapons in/on their establishment. This legislation also would transfer all rules, regulations and licensing to the Secretary of State’s office.   
SB 309: Would allow individuals to purchase health care plans across state lines. Health insurance policies which have been approved for sale in other states would be made available for all Georgia residents.    
SB 298: Would require all high school students to be certified in basic first aid as a condition of their graduation.   
SB 306: Would prohibit the use of cell phones or texting devices while operating a vehicle. Hands free devices would be allowed.  
SB 305: Increases the percentage of design-build construction projects the Department of Transportation can award in a fiscal year from 15 percent to 30 percent.

I may be reached at
234 State Capitol, Atlanta, GA 30334
(404) 656-5038 (phone)
(404) 657-7094 (fax)
E-mail at Jack.Hill@senate.ga.gov
Or call toll-free at
1-800-367-3334 day or night
 Reidsville office: (912) 557-3811

In Effingham County, Progress Starts With a Plan
Guest Editorial by Susan Kraut, President/CEO of Effingham County Chamber of Commerce
Susan Kraut column
A sold-out crowd of more than 150 business and community leaders gathered at Effingham’s New Ebenezer Retreat Center Sept. 24 for the Chamber of Commerce’s annual State of the County Luncheon, hearing updates on economic growth, education, and infrastructure across Effingham County. (Submitted photo)

At last Wednesday’s sold-out State of the County luncheon, more than 150 business and community leaders heard a message that resonated throughout the program: We have a plan, and we’re sticking to it.

Effingham County City Manager Tim Callanan opened his remarks with that thought. It was simple, but powerful. In an era when news feeds churn with controversy and change, it served as a reminder that behind the scenes, steady planning is happening – and those plans are beginning to bear fruit.

Businesses and residents often express frustration about roads, zoning, parks, schools or economic development, feeling that growth is outpacing action. The truth, as Callanan underscored, is that many of those actions are already underway, rooted in master plans that cover everything from transportation and stormwater to parks, communications and public safety.

The challenge is that plans only matter if people know they exist. Too often, businesses and citizens forget these plans are in place, don’t know where to find them or don’t realize how to weigh in at the right moments. When that happens, the community loses the chance to shape its own future and to express the value of those plans – why they matter and why they’re worth supporting.

Planning delivers progress

Last week’s luncheon highlighted how “plans” translate into progress. Mayor Kevin Exley shared Rincon’s ranking as one of Georgia’s safest cities and the city’s launch of the Citizen Central app – a small but meaningful step toward accessible local government. Springfield’s new city manager, Lauren Eargle, outlined a capital improvement plan that includes sidewalks, drainage and playgrounds, along with the less glamorous but vital work of a $35 million wastewater plant upgrade. Guyton’s city manager, Bill Lindsey, discussed contracting with planning consultants, winning grants for sidewalks, and reinvesting in Bazemore Park and downtown revitalization. These aren’t random acts; they’re evidence of intentional planning.

The school district provided another example when Superintendent Yancy Ford noted that Effingham now serves nearly 14,500 students speaking 33 languages. That diversity is an asset – but it also requires careful, proactive investment to maintain the high standards families expect. His most powerful point concerned ESPLOST, the 1-cent Education Special Purpose Local Option Sales Tax. Thanks to community support over the years, ESPLOST has built classrooms, purchased buses, enhanced safety measures, provided Chromebooks to all students, added security cameras and access-control systems, created inclusive playgrounds and athletic facilities open to the community, supported hands-on learning spaces like Honey Ridge, and established the College & Career Academy – a facility credited by Ford as helping lift the district’s graduation rate above 90% and expanding career pathways for a rapidly diversifying student body. And it has done so without incurring long-term debt.

Why ESPLOST matters

Among these examples of planning, none is clearer than ESPLOST — a long-term, voter-approved blueprint for funding education, renewed every five years to stay ahead of growth. The November ballot will again include the ESPLOST renewal, giving voters the opportunity to continue this proven approach to funding school facilities, technology, safety, transportation, inclusive playgrounds and community-accessible athletic fields. Renewing ESPLOST does not create a new tax; it simply extends the existing 1-cent sales tax, allowing residents, visitors and businesses to contribute to improvements that benefit every student. Without it, many of the projects parents and community members count on – such as new buses, safer schools, modern classrooms, career pathways and accessible playgrounds – would stall or require long-term debt.

Renewing ESPLOST is about more than bricks and mortar. It is not a reactionary measure but part of an intentional, ongoing plan to manage growth and maintain education – reinforcing the theme that plans become progress. As the district’s population becomes increasingly diverse and enrollment continues to rise, sustained ESPLOST funding is crucial to scaling programs, expanding facilities and maintaining the high graduation rates and opportunities that families expect. It is about protecting Effingham County’s tradition of educational excellence, maintaining property values and ensuring the workforce being prepared in our schools is ready to meet the needs of local employers. It is an investment in students, families and the future of our communities.

A call to the community

Effingham County is growing. Growth brings challenges, but it also brings opportunities. As the luncheon demonstrated, leaders at every level are working to guide that growth thoughtfully. The next step belongs to business owners, parents and neighbors – to lean in, stay informed and participate.

When hearing about a master plan, a referendum or a public meeting, don’t assume it is someone else’s job. Look up the plan, attend the forum, ask questions and cast a vote. That is how plans become progress – and how a yes vote on ESPLOST reaffirms and continues the community’s long-term plan for educational excellence, reinvesting in Effingham County’s future.