A balanced approach would move beyond cuts alone and include real solutions like:

• Eliminating narrow, ineffective tax breaks by requiring a cost-benefit analysis of each tax break that Georgia gives out;

• Modernizing the sales tax to cover selected services;

• Increasing the cigarette tax;

• Maintaining diversified revenue sources for stability; and

• Enacting a state earned income tax credit to support working families.

An outdated tax system, years of special tax breaks, and the recession have left the state unable to maintain our K-12 and higher education systems, health care, and other key public services.  We’ve gone through a few years with a cuts-only approach and have seen the consequences – closed parks, shorter school days, larger class sizes, closed libraries. We can’t keep going in this direction. Georgians understand that without tax reforms, there will be consequences for our schools, law enforcement, roads – and ultimately jobs and the economy. If Georgia puts college out of reach, if it fails to invest in economic development, education and good roads and bridges, then we won’t be positioned to have a skilled, healthy workforce and a strong economy when the next corporation comes looking to relocate.

Consequence:

The Department of Juvenile Justice (“DJJ”) provides education and job training for committed youth.  Helping youth obtain high school diplomas, GEDs, and job skills is key to lowering the recidivism rate of committed youth.   The proposed budget terminates 40 teacher and educational staff positions within the DJJ’s educational system.  Having fewer teachers not only negatively impacts the quality of education these youth receive, but the youth also will face a more difficult path in obtaining the necessary education and skills they need to succeed in society.

Consequence:

Every year Georgia misses out on more than $270 million in economic activity because almost 1 in 3 people eligible for food stamps are not receiving this federal economic support. Food stamps serve as a front-line defense against hunger, helping families to make ends meet and bringing federal dollars into local communities.  Food stamp cases have risen dramatically as Georgia faces high unemployment and stagnant wages, yet there are far fewer eligibility workers to assist eligible Georgians in accessing food stamps, TANF, and Medicaid. In 2004, the ratio was 379 cases per worker, and in 2011, the ratio had risen to 757 cases per worker. If the state office that administers the Food Stamp Program is forced to cut even more staff, we will lose precisely the people who ensure that food assistance reaches those who need it.

Consequence:

The past several years have been difficult ones for Georgia’s public schools. State funding reductions have left many schools with no options except to make significant reductions in the number of teachers and the length of the school year, as well as to increase the size of classes.  During the 2010-11 school year, some Georgia children attended school fewer than 150 days; meanwhile in many foreign countries, students attend school for more than 200 days. How can we expect Georgia students to compete internationally if they lack sufficient class time? Teachers, parents, and students know from experience that smaller classes improve discipline and safety, increase learning opportunities for students, and enhance class preparation and management.

Consequence:

Georgia’s Cancer Screening program is designed to provide breast and cervical cancer screenings to those with the highest need:  low income, uninsured, and underinsured women.  Due to lack of funding, women are being put on waiting lists, and even being turned away by clinics.  This results in later stage diagnosis of cancer, is more costly to treat and has poorer outcomes for the cancer patient.

Due to the continuing lagging economy there are so many new women seeking these screenings that the state cannot do the follow up calls to those already enrolled to see if they received their needed treatments.

Consequence:

Georgia reached an agreement with the US Dept. of Justice in 2011 to transition individuals with developmental disabilities and mental illness from state psychiatric hospitals to the community, and to provide supports in those communities so people can establish a real life. That agreement also requires some Medicaid waivers for people already living in the community, and crisis, respite and nursing services for people who are at risk of institutionalization. There were only 100 community waivers funded in each of the FY 2012 budget, and 100 proposed in FY 2013 budget. …but over 6,000 people are on waiting lists for home and community based support!  Additionally, there are 130 individuals needing independent care waivers to keep them from going to nursing homes.  Admissions to state hospitals ceased on July 1, 2011.  What will happen to people with disabilities if their caregiver becomes unable to support them? Without appropriate community support for people with disabilities, hard working families fall apart, and crisis is expensive.

Consequence:

Technical colleges serve a vital role in workforce development in Georgia by enhancing the skills of individuals and improving the quality of local workforces. Businesses look to technical colleges to train and refocus workers to meet their changing business demands, and graduates receive an average increase of $7,645 in pay.  However, for the past several years budget cuts and significant enrollment growth have left many colleges straining to adequately prepare their students for the demands of a modern workplace. Local businesses know that ensuring access to postsecondary education for Georgians pursuing technical training is critical

Consequence:

Children 1st identifies children who are at risk for poor health and developmental outcomes, so that needed interventions can be made to ensure the optimal health and development of the child.  It is the “Single Point of Entry” to a statewide system of numerous prevention-based services. Loss of Children 1st funds means that about 30,000 children with medical and /or developmental concerns will not be linked to the appropriate medical/developmental services and over 8500 low birth weight babies will not receive nurse home visits. This will significantly lessen the chance that those kids will grow up healthy and ready for school.  The loss of these dollars could also increase the demand and cost of special services by delaying treatment from a time when it would be most effective.

Consequence:

Stagnant state funding, along with substantial declines in charitable giving and increased demand for services, has stretched these centers to the brink, causing them to make significant reductions in staff and cuts to the services they provide.  Georgia ranks 6^th in the nation for the rate of women killed by men.  Meanwhile, Georgia’s domestic violence centers turned away 2,900 victims and their children due to lack of bed-space last year. Adult and child victims of rape and sexual assault in 57 of Georgia’s 159 counties did not have access to the services of a state-funded sexual assault center.  Ensuring that victims of these violent crimes have a safe place to go and receive services to help them rebuild their lives is a matter of public safety deserving of an increased investment of state funds.

Proposed Solution:

Pass House Bill 920! If passed, HB 920 would call for a review of the tax breaks that Georgia gives out.

HB 920 would give lawmakers an important tool for ensuring taxpayer dollars are spent efficiently and responsibly by providing:

• A description of the objective of the tax break;
• Information to determine if the tax break is meeting the stated objective;
• Analysis of zing the impact of the tax break on the tax system and who benefits from it.

HB 920 would help policymakers ensure that taxpayers are getting the biggest bang for their buck.