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The 2011 Georgia Legislature in Review |
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FY 2012 State Budget
The Conference Committee report on the FY 2012 budget ( HB 78) was approved on April 12 (39th legislative day). The governor has 40 days from the last day of the legislative session to sign HB 78 and to issue his line item vetoes.
GBPI analysis of the health care, education, and human services portions of the FY 2012 budget will be forthcoming. |
| Fiscal and Tax Policy
Several Tax Bills Make It Through to Final Passage
- HB 168: Conforms the Georgia tax code to the federal tax code at a cost of $65 million in FY 2012.
- HB 234: Extends the sunset date for the sales tax exemption on aircraft parts at a state revenue loss of $7.5 million in FY 2012. The bill also creates a new tax break for tourist attractions. The governor has sole discretion to allow new tourist attractions to keep a portion of the sales taxes generated on site. The attractions can recoup up to 25 percent of their construction costs. The cost of this new tax break is unknown since it depends on the governor's approval of projects and the projects' costs. A $1 billion tourist attraction, for example, would keep up to $250 million in sales taxes paid by customers.
- HB 322: Extends the sunset for the jet fuel sales tax exemption at a cost of $20 million in FY 2012.
- HB 325: Expands the cap for tax credits for donations to private school scholarships. The cap will grow by the rate of inflation each year until 2018.
- HB 346: Extends the sunset date for the Clean Energy Facilities Tax Credit and raises the cap on the credits from $2.5 million to $5 million.
Tax Reform Dead for Now
The Special Joint Committee on Revenue Structure passed another version of the tax reform plan during the final week of session, but the House never called the bill up for a vote. The bills (HB 385-388) remain viable for next legislative session. |
Education Bills that Have Passed the House and Senate
HB 192 - Establishes State Education Finance Study Commission
House agreed to Senate substitute as House amended for HB 192. HB 192 establishes a State Education Finance Study Commission to evaluate the Quality Basic Education (QBE) formula and other funding for public schools (i.e. teacher pay, transportation, capital outlay). The commission will comprise of 20 members representing K-12 education, higher education, business community, and the House and Senate. Recommendations, a timeline for implementation and estimated costs are due by December 31, 2012.
In addition, HB 192 extends the deadline for which each local school system has to notify the Georgia Department of Education of its intention to request for various flexible measures (i.e. budget expenditures, maximum class size, teacher contract offers) to June 30, 2015. The original flexibility request deadline was June 30, 2013.
Furthermore, HB 192 revises the definition of a middle school program to include schools that house grads six, seven or eight, or any combination of these grades.
Finally, local boards of education are no longer mandated to include remedial academic instruction in the required minimum five hours of instruction in various academic subjects determined by the State Board of Education.
HB 325 - Enhances provisions for Student Scholarship Organization (SSO) Program
Senate agreed to House amendment to a Senate substitute version of HB 325. HB 325 requires student scholarship organizations to obligate at least 90 percent of annual revenue received from donations to scholarships or tuition grants. HB 325 expands the phrase "qualified school or program" to include private pre-K programs. Once a student is deemed eligible, s/he remains eligible until s/he graduates, reaches the age of 20, or returns to a public school.
The maximum scholarship amount awarded to a student in any given year cannot exceed the total expenditure per student for fall enrollment in public elementary and secondary education in Georgia. Furthermore, the SSO program is capped at $50 million per year, but may be adjusted to reflect annual percentage change in inflation each year until 2018. Finally, SSOs are required to report the total number and dollar value of individual and corporate contributions, respectively, as well as total number and dollar value of scholarships awarded. |
HB 500 Employment Readiness Program for Georgia's unemployed
HB 500 included a legislative fix needed to continue federally funded unemployment extended benefits for 22,000 Georgians each month. Georgia's unemployed currently receives $29 million per month from the federal government. Federal authorizing legislation changed the qualifying formula to determine which states meet the high unemployment threshold, providing a more generous three year lookback in place of the two year lookback. By adopting this new formula before the end of the session, Georgia's unemployed will gain approximately $175 million from July through December 2011.
HB 292 - Employment security; extend rates and credits; change certain provisions
Georgia's unemployment trust fund is insolvent in part due to continued employer state unemployment insurance (UI) tax breaks. Read GBPI's brief for more background information: Georgia's Unemployment Trust Fund: More than $600 Million Owed to the Federal Government. Following a three year tax holiday, from 2002 forward, Georgia policymakers passed legislation to suppress employer state UI tax increases that would have built back the unemployment trust fund. HB 292 continues to suppress the automatic overall rate increase through 2012, but gives the DOL commissioner discretion to increase the overall rate by a maximum of 50 percent (an increase over last year's maximum of 35 percent), a discretion which the former DOL commissioner never exercised. HB 292 also contains provisions that suppress the scheduled increases in new employer and standard employer state UI tax rates until after December 31, 2016. Suppressing the surcharge and keeping employer state UI tax rates level for five years will not move the unemployment reserve to solvency. |
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Health Care Legislation
Several health care bills were introduced in the 2011 session that sought to address a wide variety of health care issues. Many of these bills failed to win final passage. Below are a few bills GBPI followed closely during the session.
Private Insurance Regulation
HB 47 passed to allow insurance companies in Georgia to sell health insurance policies they currently offer in other states, even if those policies do not cover services required under Georgia law. In general, the law requires the Georgia Insurance Commissioner to approve any insurance policy from another state that applies under the new law; however, the bill was amended late in the session to give the Insurance Commissioner greater discretion in approving such plans.
SB 17 passed to create a Special Advisory Commission on Mandated Health Insurance Benefits, effective in 2012. The Commission would be charged with a variety of duties, including developing a system to assess the effect of mandated benefits taking into account the costs and impact of treatment and the cost savings to the health care system.
State Health Care Programs
HB 214 passed to establish a new state Department of Public Health as a separate cabinet-level agency reporting directly to the governor. This bill implements a recommendation by a special commission created to help guide the long-term structure of the state's public health activities. The final FY 2012 budget also separates the appropriations for the new department from the Department of Community Health.
SB 63 originally sought to require Medicaid recipients to submit to fingerprinting to prove their identify when seeking medical care. The bill underwent several changes during the session, but failed to win final passage in the House. The bill will remain in committee when the 2012 Legislative Session commences in January.
Affordable Care Act
Several bills were introduced that dealt with the state's role in implementing the Affordable Care Act.
One notable bill that did not survive was HB 476, which would have created the Georgia Health Insurance Exchange Authority as the governing body for the state health insurance exchange required under the Affordable Care Act. The governor has indicated that he will use executive authority to create an advisory committee to study the issue and make recommendations to the state on how to proceed. |
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GBPI in the News
ADL Declares Immigration Bill Will Drive Away Business
Atlanta Journal-Constitution
Georgia Set to Eliminate All State Funds to Fight Domestic Violence
Atlanta Journal-Constitution
State Budget Leans on County Purses
Georgia Daily News
Airplane Tax Break Awaits Gov.'s OK
Georgia Public Broadcasting
Legislators pass fewer tax breaks this year
Savannah Morning News
Atlanta Journal-Constitution
Savannah Morning News
Ledger Enquirer
Atlanta Journal-Constitution
Macon Telegraph
Athens Banner-Herald
Atlanta Journal-Constitution
Atlanta Journal-Constitution
Times Herald |
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