Perdue proposes $20.2 billion budget

ATLANTA - Gov. Sonny Perdue, fresh off his resounding re-election win, proposed a $20.2 billion budget plan on Wednesday which boosts salaries for teachers, pours money into land preservation and begins to make good on a campaign pledge to eliminate the state income tax on retirees.

In his annual State of the State address, Perdue told a joint session of the state Legislature that Georgia ``is poised for greatness.''

He painted the state's economy as strong.

``Georgia is a changing, dynamic action video that is moving at the speed of a NASCAR race,'' Perdue said.

Perdue offered no sweeping new government programs in his half-hour speech. Some of the loudest applause from legislators came when he unveiled a $19 million program to encourage bass fishing in the state's rivers and reservoirs.

Perdue's budget blueprint boosts spending by 8 percent from the current year's $18.6 billion. His amended budget proposal for the current fiscal year would increase spending by $711 million to $19.3 million.

State revenues have been anemic in the last six months. Alan Essig, executive director of the nonpartisan Georgia Budget and Policy Institute, said tax collections will need to pick up in the coming months to meet the governor's projections.

``This is a highly optimistic state budget,'' Essig said. ``It's out of character (for Perdue).''

Perdue continued to focus on education, the cornerstone of his re-election win.

``Education the single most important factor in the future prosperity of our state,'' Perdue said.

He is recommending a 3 percent pay raise for teachers and another round of $100 gift cards for educators. Librarians would also be eligible for the gift cards, which can be used for classroom supplies.

Perdue repeated his campaign pledge to add graduation coaches to the state's middle schools at a cost of $21.3 million.

Officials with the Georgia Association of Educators praised the governor's speech as good news for teachers. But after seeing the state budget they noted that Perdue was still not fully funding the state formula for schools, shortchanging it in the coming fiscal year by almost $140 million.

``You show what your priorities are by at least fully funding the formula,'' GAE lobbyist Jody Grogan said.

State employees would also see a 3 percent raise under the spending plan. And the state would pour $176 million into health insurance for state workers to keep health care premiums down.

The budget begins the five-year phase in of the $142 million retirement income tax cut Perdue has promised for senior citizens.

Perdue's plan makes good on another campaign pledge to add more law enforcement officers to combat methamphetamine and Internet sex predators. It would also call for roughly $15 million to build more than 1,200 new prison beds to house the state's swelling inmate population.

Perdue on Wednesday called on the federal government to come up with funds for the Peach Care health insurance program for children. The state is set to face a $131 million shortfall in federal funds and state health officials have warned that the popular program might end in March unless Congress steps up.

``Hear me, Georgia stands ready, willing and able to play our part but we need our federal partners to meet their share of the responsibility,'' Perdue said.

Perdue said he will set aside $100 million to begin to fund the future costs of retiree health care benefits. But the governor has not yet said whether retirees will see their premiums rise or their benefits cut as the state grapples with the mounting healthcare costs coming to light because of a new federal accounting standard.

On the environmental front, Perdue said he will request another $50 million toward the purchase of undeveloped land for protection. In the last fiscal year, Perdue set aside $100 million for land preservation.

Still, Mark Woodall, a lobbyist for the Georgia Sierra Club, said the group is encouraged by Perdue's proposal.

``We're losing Georgia's special places on about a daily basis,'' Woodall said. ``Now is the time to do something about it.''

Perdue also said he wants to set aside $16 million to purchase extra doses of antivirals to protect against pandemic flu.

Fishermen will have something to celebrate. Perdue's $19 million ``Go Fish'' initiative would add ramps and other improvements in 15 sites along the state's waterways to lure large bass tournaments to the state.

``We will turn Georgia into a fishermen's paradise,'' Perdue said.

The speech was also notable for what it did not include.

House Democratic Leader DuBose Porter complained that nothing was mentioned about transportation. ``We think mass transit should be part of any state transportation plan,'' he said.

The state is facing a mounting price tag for a laundry list of transportation projects.

The state Ethics Commission, which is considering several complaints against Perdue as well as state legislators, saw its budget shrink by $550,000 under the budget proposal.

Perdue's budget contains $417 million in bonds for school construction and another $228 million to expand college campuses.

Perdue is not expected to face much opposition pushing his budget plan through. Both chambers of the state Legislature are controlled by Republicans who have overwhelmingly embraced his agenda. He was interrupted over and over again by applause from Republican lawmakers.

The state's fiscal year runs from July 1 to June 30.

Associated Press Writers Doug Gross and Greg Bluestein contributed to this report.

(Copyright 2007 by The Associated Press. All Rights Reserved.)