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May revenues skyrocket
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Much has been written about the Department of Revenue’s May revenue report and the fact that total revenues (hard-earned taxpayers dollars) were up 27.9 percent over the previous year following April’s negative month report. Probably the best thing to do is to wait on June’s report and look at the last quarter and the entire year in total.

Just for the record, individual income taxes for May were up 45.4 percent or $453 million dollars. Actually sales taxes were negative for the month at -4 percent or (-$20 million) following a troubling trend for this year. Again, a look at the end of the fiscal year will lead to some conclusions. Fuel taxes continued the upward trend, increasing 18.2 percent or $11 million.  What is most interesting is that the excise tax, which is collected by the gallon, continues to increase (up 20 percent in May), and has risen to record levels again.  This may reflect growth in the state:  

Year to date, revenues (taxpayers hard-earned dollars) are up 7.6 percent, with personal income taxes up 9.9 percent and sales taxes up 3.7 percent. So far the state has taken in $17.8 billion including tobacco and lottery funds, an increase of $1.1 billion. Fuel taxes are up 21.6 percent or $157 million YTD.

Is a “redirect” a constitutionally-valid veto?

The governor, in addition to vetoing specific appropriations and bond projects, has redirected appropriations from the language in the appropriations bill to other uses.  This action muddies the water on gubernatorial authority when you read an earlier Attorney General’s opinion dated Feb.11, 2000. While the opinion deals with a veto of part of an appropriation and not with re-directing appropriations, it does shed light on the strict interpretation of “veto” and leaves little doubt as to the veto parameters provided for in the Georgia Constitution after the Legislature has passed the Appropriations Bill.

Then-Gov. Roy Barnes had vetoed the amount that exceeded his original budget request for regional economic development grants. This was not a veto of the entire amount but an attempt to veto a part of the appropriation as listed in the appropriations bill. (“I veto any amount above $617,500).  As a non-lawyer, I was glad to read in that opinion the use of the dictionary to define words like “veto” and “approve.”

The opinion quotes the American Heritage Dictionary 1346 (2 d Coll. Ed. 1991).  The opinion concluded that the Constitution strictly uses only the words, “approve,” “veto” and “appropriation” and that those two choices, “approve” and “veto” are the only two choices a governor has under the line-item authority granted by the Constitution. And that “veto” only means, per the dictionary definition, to “forbid or prevent, authoritatively prohibit” and when viewed versus the action defined in the term “approve” leaves the only choice “to consent or to refuse consent,” again from the dictionary definition.

To a non-lawyer, it seems clear that this interpretation is consistent and correctly quotes earlier A.G.’s opinions “the appropriations veto limits the power to accepting or rejecting a whole appropriation.....”

So for those reasons, legislators disagree with re-directing specific appropriations as opposed to vetoeing or approving.

Listed below are the budget re-direct vetoes by department. Note the funds are not vetoed but just re-directed to other uses. Many are dismissive rather than redirections.

Budget Re-directs

Department of Community Affairs re-directs
• $100,000 for 16 regional development centers was re-directed to prepare for the local update of census addresses initiative.

• $250,000 from the Downtown Development Revolving Loan Fund to the city of Richland for an emergency water system was re-directed back to the fund.

Department of Community Health re-direct
• $300,000 to implement a regional health information technology pilot partnership with the Medical College of Georgia was re-directed to partnership with the federal government for the pilot.

Department of Corrections re-directs
• $1,422,224 to increase the county jail subsidy from $20 to $25 per day was re-directed to pay for the current rate.  A subsequent agreement will raise the rate to $22.

• $500,000 for the expansion of County Correctional Institutions to house state inmates in rural Georgia was reduced to $278,784 with the remaining funds for operations.

• $100,000 to purchase equipment for the inmate construction program was re-directed to pay for utilities.

Department of Early Care and Learning re-direct
• $11,872,902 to reduce funds for 225 slots to provide for an increase in operating expenses was re-directed and increased for additional slots.

Department of Economic Development re-directs
• $2,000,000 for the City of Gainesville for the demolition and renovation of a parking deck was re-directed to international marketing and recruitment.

• $2,500,000 for the Cobb Energy Performing Arts Center was re-directed to the tourism projects.

Department of Education re-directs
• $625,000 to the Dropout Prevention program and $500,000 for three new performance learning centers was re-directed to provide alternative education programs statewide.

• $1,590,857 to provide foreign language media materials for elementary schools students statewide was re-directed to provide approximately $1,200 to each school for foreign language media materials.

• $354,075 to Advanced Placement exams for private school students was re-directed back to public schools.

Next week – Human Resources and other departments

Visit the Legislature’s home page at www.legis.state.ga.us
To view the FY2008 budget in its entirety: www.senate.ga.gov  - Tab - Budget Reports
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E-mail at Jack.Hill@senate.ga.gov
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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.