lunsford weekly

Under the Gold Dome

State Representative John Lunsford's

Weekly Capitol Update

March 14, 2009

 

This legislative week ended with Cross-Over Day on Thursday, legislative day number 30, which is one of the longest days of session.  It is the responsibility of the legislature to enact new laws and legislative day 30 plays a key role in the law making process.  This day is significant in that it is the last day that legislation must pass one chamber in order to be heard by the other.  The House voted on more than 70 measures on day 30 which was Thursday into the night. The Georgia General Assembly meets for up to 40 session days, so only ten legislative days remain.

 

Every year on our birthdays, the one thing we dread is the so called birthday tax on our vehicles.  As legislators, we realize that all of us do not look forward to having to pay the ad valorem tax on our vehicles yearly.  For the second year in a row, we are trying to tackle the issue of the ad valorem tax paid on vehicles.  HB 480 passed out of the House on Cross-Over Day by a vote of 133 to 39.  This Bill would replace the sales tax and annual ad valorem tax on our motor vehicles with a one-time title fee.  Another benefit of this bill is that the excess funds could be dedicated to help partially fund trauma care in the state of Georgia; but, will still be subjected to the appropriations process.  If passed by the Senate, this would take affect on or after January 1, 2010. The total of the one time state and local title fees on the vehicle would be the lesser amount of $2,000 or 7% of the value of the vehicle.  This bill is essential as it means that instead of paying the yearly ad valorem tax, a one time state and local title fee would be paid when the vehicle is titled.

 

Several tax bills were on the minds of the General Assembly this week.  Two GOP proposals, HB 481 and HB 482 passed out of the House on Thursday.  The Jobs, Opportunity, and Business Success Act of 2009 (HB 481), passed by a vote of 164 to 4.  Both of these bills make changes to the tax code while both promoting and encouraging businesses and employment in Georgia.  HB 481 would provide a $2,400 credit to businesses that keep people employed for at least two years, gives a $500 credit per employee to employers for hiring people that are unemployed and receive unemployment benefits, and also gives refunds for sales tax deposits.  HB 482 passed unanimously.  This bill would provide an exemption on all business inventories from the state’s 0.25 mill ad valorem tax.  This is subject to the approval of voters on the 2010 ballot.  Also included in this bill is a business sales tax day which would waive the $100 state filing fee for businesses in Georgia.  In Georgia, job create and increasing business is essential during economic times like we are in and these tax break proposals help to accomplish both of those needs.  Unfortunately one measure that would have helped, failed that was HR 22 a constitutional amendment protected the right to secret ballots for union elections. The democrat party took an official position against this bill. The outcome could be disastrous for business across this nation.

 

One bill that many of us are watching is SB 169. The Ethical Treatment of Human Embryos Act passed out of the Senate on Cross-Over Day after much debate. 

This bill declares an embryo to be a living person and the current version which passed out of the Senate by a vote of 34 to 22 would limit at least one form of embryonic stem cell research.  Although initially intended to restrict multiple births through invitro fertilization, the bill was given an in-dept look once debate opened up on the Senate floor.  The current version of the bill would restrict researchers from mixing human and animal genes.  Also, it mandates that embryos be created for the purpose of making babies.  This bill will now come to the House for consideration. 

 

The Insurance Delivery Enactment Act of 2009, HB 321, passed the House with bipartisan support on Thursday with 171 members voting for the bill.  This bill amends the Georgia Code by changing the definitions of group accident, sickness insurance, and true association.  Also, the bill reduces the number of people required for an association from 25 to 10 people.  This bill now requires that spouses be included under a policy issued to a legal entity providing a multiple employer welfare arrangement.  Other changes relate to the amount of insurance under the policy and makes changes in the required number of years in existence from 5 to 3 years.  We want to help our small businesses in Georgia to be able to continue to grow and offer group health insurance to their employees at reduced costs. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov

 

 

 

lunsford weekly update

Under the Gold Dome

State Representative John Lunsford's

Weekly Capitol Update

March 8, 2009

 

As the 27th day of the legislative session ends, the legislature is in full swing. As we become closer to legislative Day 30, Cross-over day, bills are moving fast as we are trying to get bills out of committee and onto the House floor for a vote so it can be sent to the Senate for consideration.

This week, one of the large accomplishments was an effort to fund transportation.  Accompanying House Bill 277 is House Resolution 206 and both passed out of the House this week.  HB 277, the Georgia 2020 Transportation Act, passed out of the House on March 3rd by a vote of 149-18 and HR 206, to establish a Transportation Trust Fund, passed by 151 to 15.  This bill and resolution would create a transportation trust fund, establish an oversight committee, and allow an authority to administer and disperse the fund. Voters will have the opportunity to approve a Constitutional Amendment on the ballot in the general election in 2010 which would allow a 1% sales tax for state wide transportation projects and improvements. The major transportation initiatives are detailed in the legislation and it includes specific transportation projects across the state.  Also, the fourth penny of sales tax currently collected on motor fuel would be redirected from the general fund to transportation.  It would raise approximately $25 Billion during the next decade.  Transportation is a priority and we are trying to come up with a solution.

The House and Senate have differing legislative solutions to try and solve our transportation needs. The main difference is the Senate version would make the sales tax regional. The different versions for funding transportation will hopefully be worked out in Conference Committee.

As I have described in the previous weeks, our economy in the state and across the nation is struggling. We are faced with decreasing state revenues and we, as legislators, are facing more budget cuts than we ever have in previous years.  Federal stimulus funds will help to offset some of the cuts; however, with state revenues now estimated at $1.6 billion less for the fiscal year that begins July 1st, even more cuts are going to have to be implemented. 

As I have stated already, we have never experienced cuts to this extent in the state of Georgia and difficult decisions have to be made, none of which are easy. From the Federal Stimulus Package, we are going to accept approximately $1.1 billion which will help to soften the cuts, but many more cuts will have to be made. From the stimulus funds, $467 million will be used for the revised 2009 budget, to help fill some of the gaps. The rest of the Federal Stimulus money will be used to help cover some of the shortages in the 2010 budget.

Some have argued that we should accept all federal money that we are offered; however, as legislators in Georgia, we somewhat disagree.  For some of the Federal Stimulus funds we could accept, there are strings attached. As your elected officials, we are trying to figure out what the strings are and what federal money we are willing to accept. We have to do what is most beneficial to the people we represent and to the state of Georgia. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov

 

lunsford weekly update

Under the Gold Dome

State Representative John Lunsford's

Weekly Capitol Update

Your State’s Business

February 28th, 2009

 

As the sixth week (24^th legislative day) of Georgia’s legislative session wraps up, many necessary items on the agenda were accomplished.  The Georgia House passed out the mid-year budget this week, which was a sigh of relief for some.  Overall, the bills that were passed covered a wide variety of issues. 

 

The budget is always the number one item on the agenda for the legislative session.  The supplemental appropriations bill for fiscal year beginning July 1, 2008 and ending June 30^th, 2009 was passed out of the House on Thursday by 168 to 5.  The $18.9 billion midyear budget includes funding for the operation of State government, its departments, boards, bureaus, commissions, institutions, and other agencies.  With the aid of federal money (around $145 million), we were able to avoid some of the difficult cuts; however, we still had to cut back.  Given the challenges and constraints of these economic times, the budget we passed was very reasonable.  We tried to keep from hurting those that are most vulnerable in our society.  As I’ve mentioned in previous reports, the economic situation we are in makes detailing the budget for the state of Georgia a very difficult task.  We had to make approximately $2.6 billion in cuts and it was not an easy choice.  We realize that we are in hard times right now and we tried to restore funding that was necessary for the people.  For instance, we funded the Homeowner’s Tax Relief Grants and other various programs, such as the Meals on Wheels, which many of our seniors rely on. 

 

Education is a priority and in the budget we tried to restore some of the funding for education.  We realize how essential our local school systems are and how budget cuts can have drastic effects on our communities.  Now we will have to focus our attention to the next fiscal year which begins July 1^st. 

 

SB 31, the Nuclear Energy Financing Act passed the House on Thursday by a vote of 107 to 66.  This Bill will allow Georgia Power to charge customers early to expand nuclear power reactors, a savings of approximately $300 million.  The average increase will be around $1.30 on each customer’s power bill.  By allowing Georgia Power to pre-bill, it will save customers money.  It will allow Georgia Power to raise customer rates in increments over seven years, instead of raising rates at the time of construction, which would have been around 12.4%. This bill will provide Georgia’s citizens with low cost and clean energy and in return will reduce the state’s reliance on coal and natural gas.  We are fortunate to have companies that are willing to invest in Georgia.  Since this bill has been passed by the House and Senate, it will now go to Governor Perdue. 

 

In 2008 we passed HB 1133 which provided an income tax credit to donations made to Student Scholarship Organizations (SSO).  These organizations provide scholarships for those attending public schools to attend private schools.  HB 100 passed out of the House on Tuesday and it modifies the legislation previously passed.  We authorized the Student Scholarship Organizations to allow private school students to also be able to receive scholarships and tuition grants. HB 100 requires the Student Scholarship Organization (SSO) to obligate 90% of its annual revenue for scholarships and tuition grants.  This ensures that multi-year scholarships will be funded.  The SSO will have to verify this obligation.  To simplify the tax credit, we also changed the taxpayer’s contribution limit to the amount expended or 75% of the taxpayer’s income tax liability, whichever is less.  Also included in this bill were requirements regarding privacy protection for donors and the organization.  As legislators, we want to ensure that we clarify and perfect any previous legislation so we have the best, most comprehensive legislation that affects the people we represent. I will keep you informed as the legislative session proceeds. Every legislator is accountable to the people he or she represents and I welcome your comments and input. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov

 

 

 

 

 

 

 

 

lunsford weekly update

Under the Gold Dome

State Representative John Lunsford's

Weekly Capitol Update

The State’s Budget and Homestead Tax Relief Grants  

February 22nd, 2009

 

As the fifth week (the 21^st Legislative Day) of Georgia’s legislative session comes to an end, numerous pieces of legislation were discussed.  Activity has picked up significantly as the budget requirements were made clearer with the addition of $465 million in federal funding for Medicaid.  This additional funding has taken some of the pressure off the Medicaid funding parts of the budget which have federally-mandated requirements.

 

The first bill was passed out of the General Assembly this week and signed by the Governor would fund the Homeowner Tax Relief Grants for 2008.  This legislation, in place for almost a decade, provides state funding to local government taxing districts to help keep property taxes lower. By passing this legislation and the Governor signing it, we make good on our commitment to homeowners to continue to fight for lower property taxes thus keeping citizens in their homes, especially during this economic crisis.  For this legislative session, House Bill 143 was the first bill to be passed out of the Georgia General Assembly and signed by the Governor.  Citizens will not receive additional property tax bills for 2008 and this bill further states how the funding will be appropriated in future years.

 

In a Press Conference, top leadership in the General Assembly unveiled their plans for the Transforming Transportation Investment Act.  Transportation is a statewide issue that comes up every legislative session.  In a joint effort to try and improve transportation projects, Governor Perdue, Lt. Governor Cagle, and Speaker Richardson introduced the Transforming Transportation Investment Act.  The transportation plan would create a new State Transportation Authority (STA) composed of an eleven member board with five members chosen by the Governor, three by the Speaker, and the other three chosen by the Lieutenant Governor.  It would incorporate the Georgia Regional Transportation Authority and the State Road and Tollway Authority into a new State Transportation Authority responsible for overseeing state and road project funding.  Once this piece of legislation comes to the House, we will take an in-depth look at it and will make an informed decision on whether or not it is the most effective solution for our transportation needs.   

 

Legislation this week that also was passed by the House includes HB 59.  This bill would exempt the sales tax on free drug samples provided by physicians and also on the samples used in clinical trials and research.  As legislators, we want to encourage physicians to continue to provide free drug samples to their patients, especially those that might be unable to pay for a prescription.  During hard economic times, people often cut back on medications and we need to ensure that the option of being able to use free drug samples is available and that the physicians continue to disperse it to the people.  This bill now goes to the Senate for consideration.  In addition we passed HB 217, a bill that will allow pharmacists and nurses to administer flu shots through the use of a written protocol formed between a doctor and either the pharmacist or nurse.  This is extremely important in rural and inner-city areas where doctors are less prevalent.  The legislation passed 160-3.

 

We unanimously passed HB 237, legislation that provides financial assistance for adoptive parents who adopt children classified as “hard-to-place.”  The legislation expands financial assistance to families that adopt hard-to-place children through private adoption agencies.  This includes children with mental, physical or emotional disabilities.  This legislation is designed to make Georgia more adoption-friendly. Every legislator is accountable to the people he or she represents and I welcome your comments and input. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov

 

 

 

 

 

 

 

weekly update Feb 13th 2009

Under the Gold Dome

State Representative John Lunsford's

Weekly Capitol Update

The State’s Budget and Legislation

February 13th, 2009

 

As your elected State Representative, it’s my duty to be honest and truthful to the people I represent.  Today, I want to explain and clarify the current economic situation in Georgia.  Like the majority of states across our nation, Georgia is experiencing an economic crisis and I want to forewarn the people in my district that there is no easy solution and we may have to take drastic steps in order to balance the budget including  the difficult task of deciding what cuts will be made. 

 

A balanced budget means that the amount of money spent during the fiscal year cannot exceed the amount of money collected.  This makes the budget process very complex, but ensures that the state of Georgia does not operate with a deficit.  Budget cuts of 10 % or more have already been enforced and additional cuts are expected.  The state revenue for January of this year dropped over 14%, a decline of around $260 million compared to January of last year.  But it’s evident that further budget cuts will have to be made.  The state of Georgia is now looking at close to $3 billion in cuts which will undoubtedly affect everyone in our state. 

 

This week, several important pieces of legislation were voted on in the House.  HR1 failed to obtain a constitutional majority by a vote of 105-67.  This Resolution would have allowed the citizens to vote on limiting the Property Tax Reassessment Caps on residential and commercial property.  The vote failed mainly because of the Democrats who voted against it, but it will be up for reconsideration. Most legislators realize that it’s important to have greater accountability of taxing authorities and transparency for the citizens in Georgia, so when this legislation comes up again, it’s my hope it will pass. 

 

Another bill relating to property tax reform, HB 233, passed the House on Friday by a vote of 110-63.  This Bill creates a two-year moratorium on property reassessment increases and requires that each parcel of property be reassessed at least once during that time. The property reassessment can be decreased during this time, but not increased.  Legislators are working together on this in an effort to keep property taxes down and make sure that reassessments are fair.  

 

As the economy worsens, unfortunately crime in Georgia is increasing.  HB 140 relates to the Georgia Bureau of Investigation and would create a state-wide blue alert system to increase the apprehension of violent criminals who kill or seriously injure local, state, or federal law enforcement officers.  This bill is in the House Rules Committee and if passed would ensure the protection of our officers in Georgia and would help make certain that violent criminals are apprehended.  

 

This past week in the House was one of serious scrutiny as we carefully consider the best avenues for balancing our budget. Just as every family in Georgia is facing tough decisions about paying bills with less income, as legislators we must be responsible and methodical in our approach to making decisions regarding our state. My responsibility to you is my concern and I will keep you informed as the legislative session proceeds. Every legislator is accountable to the people he or she represents and I welcome your comments and input. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov

 

lunsford weekly update 2-6-2009

Under the Gold Dome

State Representative John Lunsford's

Weekly Capitol Update

The Budget Shortfall is on everyone’s mind

February 6th, 2009

 

The 2009 General Assembly session has slowed down due to the current economic crisis and the looming $2 billion revenue to the state.  This critical shortage has forced the entire membership to first stop and understand that there isn’t any money for special projects, and worse yet, most current programs will face reductions in funding or outright elimination.  There is a very good reason why there hasn’t been much legislation looked at, because we are all looking at the budget, and determining how it affects us.

 

The schedule for the General Assembly has been modified by the leadership of the House and Senate.  This was done to slow the pace down of the constitutionally-mandated, no more than forty day session of which as of this past Friday, came to 15 days.  We are waiting to see what the federal stimulus package does for education and Medicaid funding which consumes a majority of the roughly $19 billion annual budget total.  The General Assembly will meet on Tuesday through Thursday of each week until the end of March, hoping to finish in 35 days.  It also will leave five days for a brief session should the economic crisis worsen and adjustment needed for the Fiscal Year 2010 budget.

 

The House has passed several meaningful pieces of legislation including House Bill 141, a bill that further updates our state banking code.  This includes amending the definition of “net assets” and “financial institutions”, reestablishes what a credit union is and is not, as well as other house-keeping rules.  This bill passed easily, 162-5.  We also modified the threshold requirements to purchase corporate owned life insurance from 10 employees to 2 employees.  H.B. 80 passed unanimously.

In an effort to help those who work in the state’s largest business, agriculture, we have ratified the Governor’s executive order which provides a state sales tax exemption for the sale of dyed fuel oils which are used exclusively for agriculture, timber growing, harvesting, and mining or construction purposes.  This bill, H.B. 121 passed unanimously also.  We also passed H.B. 69, a bill that would allow for the change in criteria for determining “candidate for non-resuscitation” from needing two physicians to only one.  The bill also clarified that 2 physicians were required to concur on an order not to resuscitate.  This bill easily passed 153-4.  We unanimously passed H.B. 128, a bill that would exempt from occupation taxes, administration fees, and regulatory fees, those self-employed individuals that are also disabled veterans or blind.

 

One bill that has received and will receive continued attention is Governor Sonny Perdue’s plan to create a “hospital tax.”  The bill, H.B. 307, was introduced this week as a way to overcome the $423 million shortfall in the state’s Department of Community Health’s budget.  The bill would require hospitals to pay the state a 1.6 percent “provider-fee” out of their net patient revenues.  The taxes collected will allow the DCH to leverage those funds for additional Medicaid funding from the federal government.  At this point in time, the legislation faces an uphill battle as many in the legislature don’t understand Hospital finance and worse yet don’t have time to learn it.

I will keep you informed through weekly updates. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov      

 

lunsford weekly update

Under the Gold Dome

State Representative John Lunsford's Weekly Capitol Update

Beginning of session

 

January 30, 2009

 

During this week of the legislative session, several bills were on the agenda.  Although the session has just begun, we, as legislators, are already in full swing deciding on numerous important pieces of legislation.  Governor Sonny Perdue gave his State of the State address two weeks ago and included his budget recommendations for the amended 2009 budget and the 2010 fiscal year budget.  Two major tax bills were on the calendar for debate on Friday, only one of which was voted upon. The House passed HB 143 on Friday, the Homeowners Tax Relief Grant legislation (HTRG), and it has been sent to the Senate for consideration.  Next week, members of the House of Representatives will vote on HR1 which will decide the fate of Property Reassessment Caps. 

 

In this current budget climate, what we are dealing with is the same thing every individual family in Georgia has to deal with.  Our income is down and some tough choices and decisions have to be made.  When times get tough, we have to cut back.  Families all across Georgia are making some similar decisions that we as lawmakers are facing with our budget.  In this climate, with such a severe economic downtown, we have to look at our options concerning the budget and cut back on nonessential and some essential items.  It is a challenging and sometimes heart wrenching task.

 

With a $2.2 billion budget deficit, the Governor had tough choices to make in his proposal.  The issue is revenue.  By using some of the money in the Revenue Shortfall Reserve (RSR), also known as Georgia’s rainy day fund, the Governor is hoping to get through the difficult economic times Georgians are facing.  In the Governor’s recommended 2009 Amended Budget, $187 million was used from the Midyear Adjustment Reserve and $50 million from the RSR.  For the 2010 budget, $408 million was included from the reserve. 

 

The Governor’s proposal is the recommendations for the budget.  We are in the process of budget hearings to determine our version of the budget, as is the Senate.  Using the Governor’s revenue estimate, set at around $19.2 billion for the rest of 2009 and $20.2 billion for fiscal year 2010, the members of the House will decide how we believe the money in the budget should be spent.  The House and Senate will then come to an agreement on a budget proposal to be voted on by both chambers.

 

The Governor’s proposal would eliminate the Homeowner’s Property Tax Relief Grants, essentially saving the state $428 million.  The problem that arises is that if it is not funded, this amount is placed onto the property owners in Georgia, another bill for $200-300.  With many families facing dire economic times, this could become a burden on families in our communities.  The legislature promised this money last year and the House plans on fulfilling the promise they made to property owners.  The members of the House are struggling with the idea of how to fund the grant this year and on Friday we passed HB 143 by a 117-55 margin.  This Homeowners Tax Relief Grant legislation commits us to pay for the grant covering the 2009 budget and sets the rules for how the grant program will be administered in the future.  This program is intended to be a mechanism to send back surplus funds to homeowners and the legislation we passed outlines how and when these grants will be distributed and will also make it easier for local governments to plan their budgets.  I am honored to be your representative. I will keep you informed through weekly updates. Your opinions and concerns are important to me and I consider it an honor to serve you at the state capitol and in our district. If you would like to reach me, please call me at (404) 656-7573 or write me at: State Rep. John Lunsford, 401, State Capitol, Atlanta, GA  30334 or e-mail me at    john.lunsford@house.ga.gov