GOP Killing Perdue Budget

So it seems.

tate legislators are proposing deep cuts to Gov. Sonny Perdue’s key initiatives in order to set aside money to keep the state’s embattled health insurance program for poor children afloat.

And lawmakers say a new worry has them pinching pennies: damage from the tornadoes that plowed through South Georgia late last week.

“We don’t know how much that will be but it could be substantial,” Rep. Ben Harbin, chairman of the budget-writing House Appropriations Committee, said in an interview.

Perdue’s proposals have emerged as early casualties of the twin budget pressures.

10 comments

  1. Bull Moose says:

    In terms of priorities, health care for kids is more important than boat ramps for fishing.

    Republicans really need to get serious about addressing issues surrounding health care and health insurance or it will be the crux that drives them from office.

  2. Bull Moose says:

    I will be the broken record, I have no problem.

    To paraphrase James Carvel, “It’s healthcare, stupid.”

    I think that with the looming crisis of Peach Care, the way the cancer vaccine is playing, and a number of other undlerlying issues surrounding health care issues are playing out, health care is one of the most wide open territories where Republicans are vulnerable.

  3. Demonbeck says:

    This isn’t a slight to Perdue. Wasn’t there an article in InsiderAdvantage a couple of weeks ago on the Governor suggesting the scrapping of his new initiatives in favor of PeachCare?

    The Macon Telegraph is just looking to create a wedge between the Gov and the GOP Legislators that isn’t even there.

    This is a non-story.

  4. Alan Essig, Exec. Director
    http://www.gbpi.org

    March 7, 2007

    “GBPI Releases Report Calling for Greater Openness and Transparency in Regards to Tax “Expenditures”

    Atlanta – The Georgia Budget and Policy Institute (GBPI) has released “Show Us the Money: Transparency Needed on Tax Breaks.”

    This report is an update of a report released in 2004. This report discusses other states’ experiences with tax expenditure reports and highlights what a tax expenditure report should contain.

    Tax expenditures are tax law provisions that exempt certain individuals, income, goods, services or property from being taxed. Tax expenditures reduce Georgia’s revenue collections and are therefore a form of government spending through the tax system.

    Every dollar “spent” through tax expenditures is a dollar not available for government services or for a lower tax rate. Unlike direct appropriations, tax expenditures enacted without sunset provisions are rarely reviewed by policymakers nor included in the public budget process. Today 39 states conduct some form of tax expenditure report, which provide data on all tax expenditures annually or biennially.

    The intention of these reports is to provide state legislators and the public with data required to make sound fiscal policy decisions.

    “Sound budget and fiscal policy demands that policymakers thoroughly examine Georgia’s broad scope of government spending. This can only be accomplished when direct spending and tax expenditures are fully disclosed and reviewed simultaneously,” said Alan Essig, executive director of GBPI. “To facilitate this cost-benefit analysis, Georgia should require by law the inclusion of a tax expenditure report in the Governor’s annual budget,“ said Essig.

    As Georgia decides how to respond to the growing needs of the state, all sources of spending must be on the table. Policymakers must assure Georgians that tax expenditures on the books make as much sense for Georgia today as they did when first enacted. Cuts in education and health care are not Georgia’s only choices. Elimination of ineffective tax expenditures and closing of significant tax loopholes are viable sources of revenue. A recent report by the Georgia Department of Audits recommended that “consideration should be given to collecting, reporting, and evaluating activity data related to tax incentive expenditures and outputs.”

    To achieve a full disclosure on all spending (appropriation or tax expenditure), to facilitate an informed budget process, and ultimately to ensure a fair and equitable tax system, Georgia should:

    Include a Tax Expenditure Report in the Governor’s Budget Report that includes, for each tax expenditure, an overview, summary analysis, sunset provision analysis, five-year estimated revenue loss, and descriptive list of expenditures by tax program.

    Perform cost/benefit analysis of tax expenditures. Every dollar “spent” through tax expenditures is a dollar not available through appropriations or an inflated tax rate. Do tax incentives work?

    Conduct mandatory periodic review of all tax expenditures. Every tax expenditure should include a sunset of anywhere between 2 and 10 years depending on the tax expenditure’s purpose, beneficiaries, fiscal impact, and the economic conditions.

    Develop a report on foregone revenue sources such as services not covered by the sales tax.
    Perform tax incidence analysis. Georgians deserve to know the distributional impact of tax burdens, or “who pays” state taxes. Ten states have developed the capacity to analyze how proposed changes in their tax laws would affect the amount of taxes owed by different income groups. Policymakers should consider the “winners” and “losers” in all major tax proposals.

    “In light of funding shortages in PeachCare and continued austerity cuts in education, it is vitally important that tax expenditures be examined with the same scrutiny as budget expenditures,” said Essig. “A tax expenditure report assures accountability and transparency within the policy making process.”

    Mr. Essig is available to answer questions regarding the GBPI report and can be reached at 404-420-1324 (office)

    All of GBPI’s research reports are available on its web site at http://www.gbpi.org.

    ABOUT GBPI

    The Georgia Budget and Policy Institute (GBPI) is the state’s leading independent, nonprofit, nonpartisan organization engaged in research and education on the fiscal and economic health of the state of Georgia. The Institute provides reliable and timely analysis of Georgia’s budget and tax policies and promotes greater state government fiscal accountability, improved services and enhanced quality of life for all Georgians.
    ————————————————————

  5. JasonW says:

    I seriously doubt healthcare will be the crux of the Republican party. I really don’t think it’s that powerful of a voting issue. Especially at the state level.

  6. http://www.washingtontimes.com/business/20070307-095221-5029r.htm

    Senate focuses on importing medication
    By Gregory Lopes
    THE WASHINGTON TIMES
    March 8, 2007

    The Bush administration yesterday favored keeping the ban on importing prescription drugs despite a new Democratic majority in Congress that supports allowing lower-priced medications from countries such as Canada.

    The Senate Commerce, Science and Transportation Committee yesterday debated legislation introduced by Sen. Byron L. Dorgan, North Dakota Democrat, that would establish safeguards designed to ensure prescription drugs brought into the United States from Canada are not harmful. For instance, the bill directs the Food and Drug Administration to inspect Canadian drug exporters 12 times a year, far more frequently than U.S. drug makers.

    more at link above…

Comments are closed.