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February refunds sink revenues
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On the February chart we all look at to follow revenues, the February number stands out since it is always a very low month, being only 28 days, and because it is well … February. In fact, the only really good thing about February is Valentine’s Day… but I digress.

Unfortunately, February’s revenues were even worse than the dismal February in 2009, falling some $62.1 million dollars and totaling only $567 million in revenues for the month. Taxpayer refund increases accounted for almost $50 million of the decline for the month. While the Revenue Department cites faster processing, there appears to be an increase in the number and amount of refunds, a fact that may not signal lower refunds nearer the end of the fiscal year.

Looking hard for that kernel of good news, we note some improvements in February.  Motor fuel taxes were up 10.4 percent and overall sales tax collections were only negative by -1.6 percent, although the state portion was negative at –12 percent. Within the sales tax categories, there were positive collections in food, 12.2 percent, automotive, 32 percent and home furnishings, 15.5 percent. Additionally, within the individual income tax category, (50 percent of revenues,) there were positives as well with individual withholding payments up $13 million or 2.1 percent and individual tax returns and other payments up $11 million.

Year to date, though, results continue to plummet. The DOR tax collections show a $1.348 billion deficit for the year thus far with four months to go. Individual income taxes are down 12.2 percent and gross sales taxes are down 10.6 percent with the state portion down 13.5 percent. Motor fuel tax collections are also down 13.8 percent. So, no good news yet.

Governor lowers FY2010
and FY11 revenue estimates
While the governor lowered the FY2010 Revenue by $342 million this week, this is still a fairly optimistic expectation for the balance of the year.

Taking into account Treasury numbers, the current shortfall is about $200 million and the state cannot fall short of revenue projections for March, April, May and June by a total of more than $142 million. That’s pretty optimistic given the increased refunds expected this year … and the fact that revenues a year ago for those last four months would have been lower but for the delay in processing refunds.

The prediction here is that the state does not see marked improvement until the refunds have run their course, or in July, whichever comes first.

Senate action last week
The following legislation has passed the Senate:  
• SB 346: Would establish statewide uniformity of assessment notices and appeal forms and require that every property owner receive a notice of assessment each year with an estimate of property tax. Property owner’s allotted time to appeal would be extended to 45 days and any increase in assessments would require a unanimous vote from the county Board of Equalization. The appraised value for a home sold through a standard, “arm’s-length” transaction could not be raised for a year after sale. Counties would be allowed to accept payment plans for property taxes that could include a discount for early payment. Tax assessors would be required to include all comparable sales, including foreclosures and bank sales, in determining property value. Would offer a streamlined appeal option for property in excess of $1 million in value. Allows for automatic taxpayer victory on appeal if government fails to respond within 45 days. Requires that only “current use of property” is used in determining fair market value. This legislation does not include any caps on assessments.  
• SB 340: The Student Finance Commission would be required to notify parents of ongoing HOPE eligibility from ninth grade on based on data from public and private schools.  
• SB 298: Adds basic first aid in health instruction in grades K-12.
• SB 334: Creates a new crime of medical fraud specific to theft of someone’s health care records.
• SB 370: Provides for programs and rules/regulations and incentives for voluntary water conservation and enhancement of the state’s water supply.
• SB 400: Provides that juveniles will receive credit for time served in secure detention before conviction.

Awaiting governor’s signature:
• HB 906: Allows local boards of education a one-month extension when offering a teacher employment contract.

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.