What's Coming Up in the 2008 Georgia Legislature

Politics

by Loretta Lepore , McKenna Long & Aldridge LLP

January 29, 2008

Watch out Grey’s Anatomy. Watch out Desperate Housewives. The 2008 legislative session premieres this month, and it’s expected to capture unprecedented viewership. Although it’s a loose analogy,
there are a number of similarities between what will occur this season under the Gold Dome and what’s playing out at Seattle Grace. For instance, this year’s session will witness an unfolding of several compelling
storylines, a colorful ensemble cast, and dialogue permeated with quick barbs, impassioned pleas and the power of persuasion.

The major issues at hand — tax reform, transportation, water, health care and education — will affect Georgians in every corner of the state and will transcend the dynamics that have historically pitted rural interests against urban concerns, big business versus small, and Republicans versus Democrats. With all 236 lawmakers up for re-election this fall, the impetus of accomplishment is likely to breed the proverbial strange bedfellows.

Tax reform
Capturing the lion’s share of attention this session will be a controversial tax reform plan being put forth by House Speaker Glenn Richardson. The GREAT plan (Georgia’s Repeal of Every Ad Valorem Tax) would replace property taxes with a broad sales tax on personal and business-to-business services. In essence, the proposed sales tax would apply to everything from a haircut to legal and accounting services. Proponents of the measure, which ultimately would require a constitutional amendment to become effective, cite continually increasing property taxes and citizens’ lack of control of the process. Under the plan, the state would collect revenue and distribute funds back to local governing authorities through an established formula. Cities, counties and school boards across the state derive most of their funding from property taxes and stand opposed to the constitutional amendment on the grounds it usurps local control. In addition to issues of autonomy, other concerns are about replacing a reliable revenue source with an unpredictable funding stream and contentions that the financial burden is being shifted to business.

Although few believe the GREAT plan will be put as it is before voters on the November ballot, many agree Georgia will benefit from the debate of this and other tax reform initiatives pending from the previous session.

Transportation
Transportation is a behemoth few have been willing to tackle in years past. However, recognizing the state’s critical infrastructure is at risk and that the state’s future prosperity is at stake, the leadership is committing to the effort. Although traffic congestion is an impediment to Atlanta’s daily commute, it’s also turning away corporate relocations that otherwise would result in direct investment, jobs, and ultimately new revenue to fund essential programs such as education and health care.
The dramatic tension will surface as lawmakers address the Department of Transportation’s $7 billion dollar shortfall for future road building and maintenance while also attempting to satisfy a competing from a joint House-Senate study committee as well as commissioned audits of DOT spending, project management and road building processes will factor into policy-making discussions. Mass transit, railas well as the concept of public-private partnerships, is expected to play into the debate. It is also interesting to note that for the first time in its history, the DOT is being led by a woman. Gena Abraham joins a number of female leaders influencing the future course of transportation policy in Georgia.

Water
Georgia’s drought is certainly raising awareness about the state’s vital and limited natural resources. However, well before water rationing became top of mind, Environmental Protection Division Director Carol Couch was drafting a statewide water management plan. “Georgia’s Water Resources: A Blueprint for the Future”\ attempts to support the state’s economic growth while also managing its water resources in a sustainable manner. It remains to be seen how interest groups will align on the proposed plan, which must take into account political, economic and natural watershed issues in determining how water resources are divvied up. Legislators not only will need to approve the plan,
they also will be asked to appropriate $30 million to begin its implementation.

Health care
Tuning in for debate on comprehensive health care reform may prove disappointing this year. Instead, lawmakers will be focusing on individual proposals to curtail the growing ranks of uninsured Georgians. Currently, 1.7 million Georgians lack health insurance and rely primarily on emergency room personnel as their primary caregivers, a phenomenon that is draining state coffers. One solution Governor Perdue intends to fund in his budget is the Health Insurance Partnership, an option for businesses with fewer than 50 employees. Essentially, businesses would fall under a joint