The Ashe Advocate – January 25, 2008

Governor’s budget plan ignores economic warnings

By Rep. Kathy Ashe

This week, during joint House and Senate budget hearings, the heads of various state agencies appeared before committee members to make the case for their budget requests for the remainder of the current fiscal year as well as fiscal year 2009, which begins July 1, 2008.

Gov. Sonny Perdue had outlined his record $21.4 billion state budget proposal to legislators during the first week of the session. In his briefing to Appropriations Committee members, the governor expressed an optimistic view of the state’s economic future in the midst of nationwide concern about a recession.

State economist Kenneth Heaghney reported that the near-term risk of a national recession is significant, acknowledging the turmoil in financial markets, the sharp downturn in the housing market, the slowdown in consumer spending and growing unemployment numbers. But he also reported Georgia’s economy is probably better than that of the U.S. as a whole, and he expects a recovery period to begin in the second half of this year.

Despite the rosy forecast, the sentiment among legislative budget writers is a bit more cautious, because state revenues would have to cover $1 billion more in state spending for FY 2009 over the current year under the governor’s proposal.

Concern is being expressed by a growing number of lawmakers and education officials over the governor’s proposal to cut additional $141.5 million in state funding to local school systems. Although it is the responsibility of the state government to provide public education, more than $1.5 billion in local school funding has been cut since 2003, shifting the burden to local school boards and local taxpayers.

When the governor first proposed “austerity cuts” five years ago, it was understandable because the state was suffering an economic downturn and revenues were tight. But with the governor’s overall spending plan increasing by $1 billion over last year, there are more questions as to why it is necessary to continue these tax shifts on local schools, even from the governor’s own political party.

House Appropriations Committee Chairman Ben Harbin (R-Evans) pointed out during our budget hearings: “It’s forcing districts to make changes, either raising taxes or cutting programs they have been funding locally.”

State School Superintendent Kathy Cox added, “That cut is a disappointment to me as well. I am very concerned about that.”

Please click here for an excellent overview by the League of Women Voters of Georgia of the budget plan, and check the site on a weekly basis for updates.

As a member of the House Children and Youth Committee, I want to share with you “A Snapshot of PeachCare for Kids,” a report on Georgia’s children’s health insurance program presented by the Georgia Department of Community Health. Please click here to read the latest report on PeachCare.

I hope you will exercise your right to vote in the upcoming Georgia presidential preference primaries on Feb. 5. The league of Women Voters of Georgia has put together an excellent package of voter information, and I am pleased to forward it to you here:

• Rep. Kathy Ashe (D-Atlanta) represents the 56th District (Fulton County) in the Georgia House of Representatives. Contact her at 409 Coverdell Office Building, Atlanta, GA  30334; by phone at 404-656-0116 or by e-mail at kathyashe56@mindspring.com.