Early Voting Reminder from Sen. Chance

The 2010 Republican Primary General Election is underway as Early Voting has commenced statewide. I encourage each of you to take advantage of Early Voting and avoid the congestion of Election Day on July 20th. Please see below details on Early Voting for your county.

I also hope you will please take the time to visit the campaign websites of two of my former Senate colleagues who are now pursuing statewide office. I have served with both Brian Kemp and John Douglas in the Georgia State Senate and am endorsing their respective candidacies. Secretary of State Kemp has done an outstanding job since his appointment by Governor Perdue in January and deserves a full term in office. Senator Douglas and I served together since 2004, and I know firsthand his work ethic. He will make an outstanding Public Service Commissioner.

I hope you will consider supporting both of these outstanding leaders as you cast your ballot in the Republican Primary.

EARLY VOTING DETAILS:

Fayette County
06/07/2010 to 07/16/2010
Days: Monday through Friday
Fayette County Administration Complex
140 Stonewall Avenue West, Suite 209
Fayetteville, GA
8:00AM - 5:00 PM

Lamar County
06/07/2010 to 07/16/2010
Days: Monday through Friday
Lamar County Board of Elections and Registration Office
408 Thomaston Street, Suite D (second floor)
Barnesville, GA
8:00AM - 5:00 PM

Monroe County
06/04/2010 to 07/09/2010
Days: Monday through Friday
Board of Registrars Office
550 North Lee Street
Forsyth, GA
8:30AM - 4:30 PM

Pike County
06/07/2010 to 07/16/2010
Days: Monday through Friday
Pike County Registrars Office
16001 Barnesville Street
Zebulon, GA
8:00AM - 5:00 PM

Spalding County
06/07/2010 to 07/16/2010
Days: Monday through Friday
Memorial Drive Plaza
819 Memorial Drive
Griffin, GA
8:30AM-5:30 PM

Please take the time to view these websites to learn more about the candidates.

SECRETARY OF STATE
Brian Kemp
http://votebriankemp.com/

PUBLIC SERVICE COMMISSIONER
John Douglas
http://www.senatorjohndouglas.com/

Thank you for your continued support. Please contact me if I may be of assistance at (770) 969 - 9155 or at ronnie@chanceforsenate.com.

Governor's Vetoes - From Separation of Powers to Philosophy

Part One

Governor Perdue's vetoes of legislation and of Appropriations line items were yet another message that he intends to be relevant to the end of his term.

Of the 21 pieces of General Legislation he vetoed, all were passed in either body by huge majority votes.  So, legislative intent was clear.  For example, the 13 House bills vetoed passed the House by a total of 1916 yeas to only 158 nays or an average vote of 147 to 12.  Those same bills passed the Senate by 578 to 28 or an average vote of 44 to 2.

The 8 Senate General bills vetoed passed the Senate by a total vote of 357 to 19 or an average vote of 44 to 2.  These same Senate bills passed the House by a total of 1118 to 127 or an average of 139 to 15.

Many states routinely consider veto overrides and in fact some have a regularly scheduled post session just to consider overrides.  This might be the year that that consideration gains momentum.

The Governor divided some vetoes into categories.  The first category is "Indemnification Bills."  He vetoed HB 827 and SB 414 which expanded coverage by the state indemnification policies which pay when certain categories of state or local employees like firemen or policemen are killed or permanently disabled in the line of duty. Both bills broadened the definition of "dependent".  HB 827 added state highway employees killed or injured to the list of eligible occupations covered by indemnification.  SB 414 allowed parents or other close relatives to receive indemnification benefits if the member was unmarried.

 The second category of vetoes was what he termed "Separation of Powers."  The Governor asserted that 4 bills diminished the powers of the Executive branch- SB 1, SB 148, SB 374 and SB 480.

SB 1 - "Zero-Based Budgeting" is a concept that has passed the Senate several times but only passed the House this year.   Basically each area of the budget on a 4 year rotating basis must be rejustified.  The Governor asserted that this legislation "unnecessarily imposes new bureaucracy and restrictions on the Executive Branch."

SB 148 - The Governor objected to the language from HB 236 that was added during the process.  The addition created the "Legislative Sunset Advisory Subcommittee" of the Legislature whose intent would be to review all state regulatory entities to determine their continued existence and provided for automatic elimination if not specifically renewed by the Legislature.  The Governor asserts that the Legislature already has the powers to accomplish this...but of course specific legislation would be subject to the Governor's veto as well.

SB 374 - created a "Legislative Economic Development Council" made up mostly of General Assembly members that would provide direction and oversight to the state's economic development efforts.  The Governor asserted that the powers conveyed in the bill violated the Constitutional separation of powers.

SB 480 - would have created a Council of Economic Advisors to produce the revenue estimate that is the basis of the Governor's budget proposal.  The main difference is that the collaborative estimate would be published and presented to the Speaker and Lt. Governor who would have had appointees to the Council.  The Governor asserted that the power to produce the revenue estimate is rooted in the State Constitution and this bill would infringe on those powers.  Nationally, most states have some sort of collaborative process for producing the revenue estimate.  Georgia hasn't had an accurate estimate in three years or so.

Other vetoes included:

HB 1407 - would have required the Department of Community Health to contract with a single administrator to provide dental services to Medicaid and PeachCare recipients.  The Governor asserted that this bill would circumvent the managed care administration of those programs and possibly raise costs.

HB 1023 - The "Jobs" bill provided tax credits for employment of unemployed persons, tax credits for "Angel Investors" (start-up investors) and reduced the corporate and individual capital gains taxes when the state shortfall reserve reached $1 billion.  The Governor vetoed the bill because he stated that the Tax Reform Commission, due to produce a report this year, would provide better direction.

Next Week:  Part Two plus May Revenues

More info?  Go to www.legis.ga.gov  - you can enter the bill numbers. The last version of the bill reads AP (As passed). 

Thank you for your interest.  Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.

3/27/10 Notes from the Senate by Sen Ronnie Chance

Friday, March 26, 2010 marked the 30th legislative day of the 2010 Session, otherwise known as "Crossover Day." Crossover is the last legislative day in which a bill can successfully pass through its original house of origin and still be considered by the other Chamber. Of course, legislation can still be amended to other legislation if it deals with the same subject area. Still to be accomplished in the 10 legislative days remaining are the conference and final passage of the FY2010 Amended budget and House and Senate versions of the FY2011 Budget.

Clarifies Where Weapons Can Be Carried

SB 308 provides that driveways and roads near weapons free zones are not automatically prohibited. Allows the Board of Regents and colleges to make rules prohibiting weapons. Provides that a person is guilty of a misdemeanor for carrying a weapon in an unauthorized location if he/she carries a weapon in a: government building; courthouse; jail or prison; any elementary or secondary school (If the school is in a place of worship, these restrictions will apply only during school hours or during school events); any athletic facility during an event for which the Board of Regents of the University System has prohibited carrying weapons; place of worship unless all or designated licensees are permitted by presiding official; state mental health facility; bar, unless permitted by the owner; on the premises of a nuclear power facility; or within 150 feet of any polling place.

Senate Action This Week

The following legislation has passed the Senate:

• SB 373: Requires an employer to disclose employment related information to an investigating law enforcement agency when an investigation is conducted for the purpose of hiring, certifying, or continuing the certification of a peace officer.
• SB 380: Current law grants the Georgia Environmental Facilities Authority's Water Supply Division (WSD) certain powers with respect to the development of reservoirs in the state. This legislation allows WSD to make loans and grants local governments to pay for expanding and increasing the capacity of existing reservoirs.
• SB 385: Under a Homeland Security program, counties who identify prisoners who are illegal aliens qualify for Federal funds for housing. SB 385 would qualify these counties for an enhanced state housing rate of 110%. Subject to appropriations.
• SB 414: Provides that in the case of death or organic brain damage suffered in the line of duty by law enforcement officers, who are not married, parents or siblings are eligible for indemnification benefits.
• SB 418: Requires the State Board of Pharmacy to establish an electronic database of information on controlled substance prescriptions dispensed in this State.
• SB 419: Allows members of the armed services and veterans who have been diagnosed with post traumatic stress disorder to request to have a notation of such diagnosis placed on his or her driver's license.
• SB 421: Increases the ceiling on the Revenue Shortfall Reserve from 10% to 15% of the previous year's net revenue. Will build a larger reserve fund.
• SB 423: Creates a new statute defining the offense of smash and grab burglary, the intentional and without authority entering of a retail establishment with the intent to commit theft. Would become a felony punishable by 2 to 20 years in prison and/or a $100,000 fine.
• SB 447: Requires that state contracts give preference to GA businesses when purchasing materials or choosing contractors and builders, when such preference does not impair on quality and cost considerations.
• SB 454: Allows veterans organizations to sell pull tab games with winnings that are limited to $500.00 per person per 24 hour time period.
• SB 458: Expands the seatbelt law to include pickup trucks while excluding farm vehicles.
• SB 478: Requires the State Accounting Officer to contract for an audit of inadvertent overpayments by state agencies to vendors due to pricing errors, neglected rebates and discounts, miscalculated freight charges, unclaimed refunds, and erroneously paid excise taxes.
• SB 480: Creates the State Council of Economic Advisors composed of five members. The Governor would appoint three members, and the Speaker of the House of Representatives and the President of the Senate one member each. The group would produce the Revenue Estimate which is the basis for the Governor's budget recommendations.
• SB 496: Establishes the HOPE College Opportunity Grant. Students must meet residency requirements, must be Pell Grant recipients, must meet enrollment standards and maintain satisfactory academic progress to be eligible for this grant. Would be a small grant focused on the most needy students. Funded subject to appropriation.
• SB 505: Limits membership on the State Transportation Board to one five-year term.
• SB 512: Authorizes the State Revenue Commissioner to provide for the collection of uncollected sales and use taxes that businesses may otherwise not be obligated to collect and remit. Authorizes the Dept. of Revenue to offer an incentive of higher commission to out of state internet retailers in order for them to begin collecting use taxes.

Thank you for your interest. Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.
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Sen. Chance Honored by Metro Atlanta Chamber for Enhancing State’s Economic Development

Sen. Ronnie Chance (R-Tyrone) has been honored by the Metro Atlanta Chamber (MAC) for his efforts to cultivate a stronger economic climate in Georgia. He was recognized by Richard F. (Rick) Smith, chairman and CEO of Equifax Inc. and 2009 Metro Atlanta Chamber chairman at the board meeting earlier this month.

“As Georgia families, businesses, and local governments continue to face financial hardship, the legislature is constantly exploring solutions to enhance our economic climate in order to bring jobs, revenue and sustainability to our state,” said Chance. “Through our partnership with the Metro Atlanta Chamber, we can position Georgia to emerge from this downturn as the economic engine of the South. I am honored to be recognized by this outstanding organization, and I look forward to working with them in continuing to move our state forward.”

Sen. Chance was named chairman of the Senate Finance Committee during the 2009 Legislative Session, where he sponsored legislation to update language to the Business Expansion Support (BEST) Act to expand eligibility for businesses that previously would not have qualified. NCR's decision to relocate their headquarters to Georgia in June was partially based on this legislation. The move by the ATM manufacturer resulted in creating over 2,000 jobs in the state.

Sen. Chip Pearson (R-Dawsonville), who serves as the Senate Economic Development Committee chairman, was also recognized for his efforts in enhancing economic development and helping pass the legislation to update the BEST Act.

Upon recognizing Sen. Chance, MAC Chairman Smith remarked, “Your outstanding contributions have certainly promoted economic development in metro Atlanta and Georgia.”
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Notes from the Senate by Senator Ronnie Chance, 16th District

Furloughs Won't Affect Retirement

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 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% 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%, 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%, with local and state collections down by about 12.5% 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 minus 1%. 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%. Actually excise taxes, by the gallon, were slightly up at plus 2.8%, but sales tax collections, based on a lower retail price compared to a year ago, were down by 27%. 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%. 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 towards, some $900 million.

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

Fuel tax collections are down 15% with excise taxes actually positive by 4.1% but sales taxes for reasons mentioned earlier are off by 32.6%. 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.

Thank you for your interest. Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.
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July 1 Brings New Laws

A number of new laws go into effect July 1 and here is a brief review.

SB 14 - Prohibits Superintendent or School Board Members from serving with an immediate family member as principal, assistant principal or central staff.

HB 149 - Allows high school juniors and seniors to attend college and receive high school credit. ("Move on When Ready")

HB 243 - Sunsets National Board Certification program, grandfathers in those already awarded or in pipeline

HB 193 - Allows local school boards to use total hours instead of total days in meeting the 180 day mandatory attendance.

HB 280 - Increases step pay for beginning and existing science and math teachers.

HB 86 - Requires proof of citizenship in registering to vote

HB 228 - Creates new department of Behavioral Health and moves Public Health to Dept. of Community Health

SB 196 - Creates a misdemeanor when a driver has a collision caused by a right of way violation involving bicycles, motorcyclists

HB 160 - Increased driver's license reinstatement fees, but "Super Speeder" provisions begin Jan. 1, 2010.

EDUCATION FUNDING HURTS SOME MORE THAN OTHERS - FORMULA DRIVEN K-12 EDUCATION AND HIGHER EDUCATION GROW DESPITE BUDGET CUTS--GAINS FOR GROWING SYSTEMS

Although education makes up a large part of the state budget, the cuts to K-12 education have been significantly less than cuts to other agencies. Fast growing systems have been the main recipient of the new funds.

Enrollment in K-12 education has continued to increase as Georgia's population has grown. Since 2001, Georgia's K-12 student population has grown by 14%, or 200,000 students, while K-12 funding has grown by 38%. In FY10, K-12 education overall makes up about 40% of the state funds in the budget. The FY10 budget appropriates $7.39 billion in state funds to the Department of Education, in addition to $413.1 million in federal stimulus budget stabilization funds. State funds appropriated to the Department of Education over the past five years are as follows:

FY06, $6.61 billion
FY07, $7.39 billion
FY08, $7.97 billion
FY09, $7.99 billion
FY10, $7.97 billion (including federal budget stabilization funds.)

So, in the last five years, funds going to K-12 have increased by $1.3 billion. In total, in FY10, the Department of Education and its component programs only received a 3% or $211 million cut from the original FY09 budget which would have funded Education at $8.2 billion and presumed that revenues would grow rather than shrink. By way of comparison, cuts to other agencies in the state averaged 11% below the original FY09 budget, not including statewide cuts such as withholding staff pay raises.

K-12 programs have also seen a substantial increase in funding from the federal government through the stimulus bill funding for Title I programs for disadvantaged students and funding for students with special needs. An additional $650 million will go directly to school systems for these programs in FY10.

Thank you for your interest. Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.
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Senate Update: I Haven't Recieved My Refund

Some have noted that they are experiencing delays this year in the receipt of refunds or even in the state cashing their payments. Georgians have the option to file their state tax returns either electronically (over the internet) or using traditional paper forms. When returns are filed electronically, they do not need to be physically opened, nor do they require data entry. For this reason, the time required to process and to issue refunds for returns filed electronically has stayed consistent - and quick - at 6 to 10 days. While the processing of electronic claims has stayed the same, working through this year's paper claims is taking longer.

In prior years, the Department of Revenue would process a paper return in 4 to 10 weeks. However, recent budget cuts have increased the time taken to process paper returns. In the amended FY09 budget, the state had to find around $2 billion in cuts because of the economic downturn and agencies were asked to submit proposals to reduce spending. The Department of Revenue proposed to reduce its budget by $2.4 million by eliminating two shifts of temporary workers that were used to process paper claims.

At the same time that capacity dropped, the number of claims filed has stayed roughly consistent. So, with an equal workload and less capacity, a backlog has developed. The date that a return was filed has a direct effect on when citizens can expect to receive their return. It is a given that everyone is more anxious to receive their refund this year because of the economy.

According to the Revenue Department, here are the turnaround times for paper returns based on the date the Department received them:

Prior to April 1st - 10 to 12 weeks
April 1st to 10th - 12 to 14 weeks
After April 10th - 14 to 20 weeks

MORE INSIGHT ON GEORGIA'S STATE REVENUE

INDIVIDUAL INCOME TAXES - "Incoming is down, Outgoing is Up"

Individual Income Taxes - In the 2009 Fiscal Year, only two months, September and November exceeded the previous years same month, and only by about $30 million each.

The other eight months total a decline of some $884 million in FY09 under FY08.

Individual Income Taxes are 50% of state revenues. Some categories making huge decreases were Estimated Payments - $353 million or 28.6% and individual returns down $177 million or 25.6%.

Conversely, refunds to individuals are up $71 million but only 3.8%. Individual income tax payments to the state are down by $145 million and refunds are up on over 200,000 returns totaling $70 million.

SALES TAXES

Sales tax revenues have declined 8.31% YTD. This is a shade better than the 9.83% that Individual Income Taxes have declined YTD.

The distribution to local governments has declined about the same amount as the overall decline, -7.8% which is somewhat of a surprise, because it shows that local sales tax revenues are declining at approximately the same rate as state sales taxes.

Within categories, home furnishings were up in May by about 9% and manufacturing sales tax collections were up about 10% for May. Automotive sales taxes were down 44% over May of 2008.

Motor Fuel continues to lag, down by 13.7% combined, with the drop in fuel prices decreasing the sales taxes by 19%. Additionally, usage by the gallon continues to decrease excise tax collections some 7.4% YTD.

Corporate Income Taxes are off 26.7%. Refunds are up 54.5%, estimated payments down 20%, S Corp income taxes down 36% but assessments were up 289% or $47 million.

Whether there are green shoots of recovery sprouting or just more weeds due to the rain is debatable.

Thank you for your interest. Please contact me if I may be of assistance at (404) 463-1366 or at ronnie.chance@senate.ga.gov.
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