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Hill: Retirement wont be affected
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When furloughs for state employees became widespread this year, one of the questions raised was how that reduction might affect those nearing retirement. The retirement benefit for teachers and state employees is based on a calculation of the average of the two highest years of salary, which are typically the last two years but do not have to be.

The question became whether furloughs, and the resulting reduction in salary, reduce the average pay and therefore reduce the retirement benefits that employees are locked in on for the entirety of their retirement.

Based on the advice of the state attorney general and his interpretation of the law, retirement officials have ruled that furloughs will not affect an employee’s retirement calculation. The answer lies in the definition of “salary.” A furlough does not count as a reduction in salary so the calculation of an employee’s two highest years of salary is not changed due to a furlough.

Conversely, a pay cut, or reduction in pay, would in fact constitute a reduction in salary and would reduce the average for anyone within the two-year calculation window. If an agency or school system actually reduces the pay or contracted time of employees or teachers, this would be a permanent change and would affect the two-year calculation if the final years are the highest years of salary.

August revenues — hard to find a sign, but looking anyway

August revenue figures don’t show much relief until you consider the $132 million in tax refunds included in the state pay-outs for the month.

Total revenues were down 16.4 percent for the month. August, like July, is a relatively low revenue month and this August was no exception, coming in at $1.052 billion for the month.

Individual income tax collections were off by 20.8 percent, totaling only $505.9 million, or down by $132 million, exactly the same amount reported to have been paid out in income tax refunds. If that is correct, then individual income taxes were even with last year for the month.

Total sales tax collections were down by 12.6 percent, with local and state collections down by about 12.5 percent each. The state collected only $402.9 million in sales taxes in August.

Corporate income taxes fluctuate during a particular quarter, but in August were flat at a -1 percent. Georgia took in only $17 million in corporate income taxes in August.

Fuel taxes continued to reflect the lower gasoline price of this year, with total collections down by 13.1 percent. Actually excise taxes, by the gallon, were slightly up at plus 2.8 percent, but sales tax collections, based on a lower retail price compared to a year ago, were down by 27 percent. The state collected about $65 million in fuel taxes in August.

Georgia collected about $60 million in other taxes and fees in August.

Year to Date-July and August

Two months into the year, the state has collected a total of $2.1 billion in total revenues. Compared to July-August of 2008, this is some $324 million less than the same two months last year. Of course this includes $166 million, the two-month total of tax refunds paid out. So the actual normal comparable difference is about -$160 million.

YTD, individual income taxes are down $180 million, about –20 percent. Taking off the refunds, the total collections are down only $32 million. Saying this, though, does not change the shortfall amount the state is working toward, some $900 million.

YTD, local sales tax collections are off by 17.8 percent and the state portion by –11 percent. Corporate collections after two months are up 3.8 percent.

Fuel tax collections are down 15 percent with excise taxes actually positive by 4.1 percent but sales taxes for reasons mentioned earlier are off by 32.6 percent. The small increase in taxes by the gallon may be explained by more driving vacations with cheaper fuel this year.

A winding road ahead

The next three months are challenging when compared to revenue collections from 2008.  Those totals, Sept. $1.6 billion, Oct. $1.4 billion and Nov. $1.4 billion will be difficult to match unless substantial improvements in economic activity occur.

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.