By allowing ads to appear on this site, you support the local businesses who, in turn, support great journalism.
Misery has company
Placeholder Image

The heavy dependence on the housing market and construction in Georgia appears to be deepening the economic downturn. Unemployment applications jumped in September, the second highest in the nation, and Georgia suffered the sixth straight month of job loss. At the same time, Georgia’s unemployment rate at 6.5 percent is above the national rate of 6.1 percent. As readers might suspect, the current situation in the housing and financial markets has exacerbated the budget crunch that other southeastern states were already feeling.

The state, after three months, is 2.6 percent behind last year. Although this figure includes the 1 percent reduction, the projected budget cuts of 6, 8, and 10 percent that departments are being required to put on the table are beginning to look more and more as not a projection but as the next stage of reality. And some doomsdayers are concerned we are approaching a slowdown of mythic proportions, perhaps to the pre-2002 levels.  

A previous July column titled “Misery Loves Company” could use some updating to judge how other states are faring in relation to Georgia. At this time, 21 states and the District of Columbia are facing budget shortfalls in their FY09 budgets. Other sources such as The Center on Budget and Policy Priorities report that 25 states have shortfalls ranging from 22 percent in California to 1.3 percent in Colorado. Georgia is 11th at 8.7 percent.  

Around the Southeast
North Carolina

North Carolina missed its revenue goal by $230 million in the first quarter of FY09.  Last month, Gov. Mike Easley indicated that he would be withholding 2 percent of agencies’ budgets and putting the money in a reserve. More recently, given the worsening fiscal situation, the governor has said that he might increase withholdings to 3 percent of agencies’ budgets. The governor wants to reduce the state’s budget by $600 million dollars; however, the governor is exempting funding for public education, student loans or Medicaid from the proposed cuts. In North Carolina, K-12 education accounts for $7.8 billion, which is over one third of the state’s budget.  

South Carolina
This week, South Carolina legislators have convened in a special session to cut nearly $500 million from the state budget or 6-7 percent of the state’s $7 billion budget. The current version of the budget being debated does not substantially cut classroom spending, but does reduce the Department of Education’s payroll expenses at its headquarters by 15 percent.  Higher education overall will face $100 million in reductions. South Carolina’s Health and Human Services department will be cut by $76.7 million and the Department of Mental Health will be cut by $23.6 million. Aid to local governments will be decreased by $19.5 million and the Department of Disabilities and Special Needs will decrease by $21.5 million.

Virginia
Virginia faces a budget shortfall of $2.5 billion over the course of their 2009-2010 biennial budget. To provide for a little over $1 billion of this amount, this month, the state’s governor, Tim Kaine, proposed laying off around 570 state employees and reducing funding for colleges by 5-7 percent. In addition, over 800 vacant jobs would be left unfilled, pay raises for public employees would be postponed, and $250 million in construction projects originally funded in cash would be funded through state-issued bonds. Gov. Kaine also wants to use $400 million from the state’s rainy day fund to cover the shortfall.  

Florida
The state’s FY09 budget was $6 billion less than the budget for FY08.  The FY09 budget resulted in 200 job losses, tuition increases for university students, cuts to nursing homes and the closing of 13 driver licensing offices. Despite the cuts already taken, the state is seeing its current year revenues come up short.  Florida’s governor, Charlie Christ, has told state agencies to prepare for 10 percent across the board budget cut. Gov. Christ has launched a plan called “Accelerate Florida,” which fast tracks $30 billion in infrastructure and public works projects. The idea is to stimulate the state’s economy by fast tracking construction projects that will pick up the state’s construction industry and reduce unemployment.

Another state of interest
California

California’s situation is unique, as the state is actually facing a cash flow crisis. California normally borrows between $1 billion and $12 billion in short term loans (called commercial paper) per year to fund operations prior to receiving tax payments. Because credit markets have frozen up, California expected to run out of cash at the end of October. Gov. Arnold Schwarzenegger has said that he will have to turn to the federal government for the $7 billion if the credit crisis prevents the state from getting a commercial paper loan.  

Continued focus on retirement funds
This column will continue to provide information on the State Retirement System and the Teacher Retirement System and look at other state’s handling of retirement funds as information on the market losses becomes available. This much is undeniable; we have already entered into a “Twilight Zone” of financial uncertainty that is unprecedented in modern times. 

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.