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Perdue pushes tax cuts for property and car owners

By The Associated Press
Posted 3:58PM on Wednesday 16th January 2008 ( 16 years ago )
ATLANTA - Gov. Sonny Perdue proposed a $21.4 billion budget plan Wednesday that would trim taxes for Georgians who own cars or property, place more state troopers on the highways and devote money to bolstering the drought-stricken state's water supply.

In his annual State of the State address to a joint session of the state Legislature, Perdue painted an optimistic portrait of a state brimming with possibility.

"That triumphant drumbeat of our progress proclaims a new anthem and a new era for Georgia," Perdue said. "Not just as the capital of the New South, not just another great American city - but an international leader - an economic, cultural, technological capital."

He made no mention of the economic downturn that has caused the state's revenues to sag.

Perdue wants to funnel $53 million into the state's struggling trauma care network, including cash-strapped Grady Memorial Hospital.

The tax plan Perdue unveiled on Wednesday would erase the state ad valorem tax that residents pay on their property and automobiles. County property taxes would continue in effect.

The $94 million tax cut would begin in 2009 and must be approved by voters at the ballot box as a constitutional amendment. First it must receive a two-thirds vote in both chambers of the state Legislature.

The property tax portion of the plan is expected to mean an average savings of about $30 per household.

"I believe in fiscal responsibility, and I believe in tax relief for the people of Georgia," Perdue told a joint session of the state House of Representatives and the Senate on Wednesday as part of his annual State of the State address.

The tax plan enters a crowded field. House Speaker Glenn Richardson is pushing to eliminate the school portion of property taxes. And state Senate President Pro Tem Eric Johnson is looking to cap home assessments.

The Republican governor said Wednesday he will also continue to push for his $142 million tax cut for upper income retirees. The plan - the centerpiece of Perdue's successful re-election bid in 2006 - failed to win approval last year.

Perdue's proposal includes $70 million to build reservoirs and improve the state's water systems. Another $42 million in bonds would go to fund water and sewer infrastructure loans for local communities. All told, the budget includes $120 million for reservoir development and water and sewer improvements.

"This is not a silver bullet - more room for storage will not make the rains come," Perdue said. "But investing in reservoirs is part of the formula for smart growth."

He added: "We will not allow others outside this state to hamper our progress by limiting our access to the waters that fall on our land. This will not happen on this governor's watch."

On the transportation front, Perdue proposes creating a $50 million fund to help local governments to speed up projects for roads, bridges, rail and airports.

Another $13.3 million is included in the fiscal year 2009 for the state to buy 28 clean fuel buses to expand bus routes, and $4.7 million would be used to build a park and ride lot for the Georgia Regional Transportation Authority.

Perdue proposed $52 million to deepen the Savannah Harbor from 42 feet to 48 feet to help handle the increased ship traffic.

Perdue hopes to increase the size of the Georgia State Patrol by sending $8.9 million to add three additional trooper schools with a goal of graduating 205 new officers. Another $11 million would go to help fund about 2,000 additional prison beds.

Perdue is looking for $17 million to help small businesses create health insurance programs. House Republicans have given that proposal a cool reception so far.

Some $30 million would go to pay for conservation efforts to buy and preserve large tracts of land.

Teachers would get a 2.5 percent pay increase starting in September, and employees of the executive and legislative branch would get a 2.5 percent pay increase by January. Teachers would also continue to receive $100 gift cards to help them purchase classroom supplies.

More than $14 million would go to fund Perdue's program to hire and fund graduation coaches in middle and high schools. Another $14 million would go to a new program that funds parent recruiters.

Although Perdue's budget restores some of the money that's been cut from the state's formula for funding schools, Democrats say it still falls roughly $141.5 million short of what's considered basic funding under the formula.

"We'd like to see the dollars go directly to education, to fund it totally," said state Rep. Calvin Smyre, D-Columbus.

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On The Net:

Gov.'s Office of Planning and Budget: http://opb.georgia.gov/


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