Update to Proposed EPD Idling Rule
October 10, 2008
As many of you may be aware, the Georgia EPD has proposed an idling rule that would not permit trucks and heavy machinery from idling for more than 5 minutes. GCAA has been heavily involved with a stakeholder group that is working with EPD in an effort to potentially extend some of the idling periods or possibly be granted some exemptions. Following the link below, you will find an update on the latest proposed revision and comments from the idling rule stakeholders’ meeting on October 7th.
If you have any additional questions, please contact us at the GCAA office.
Stakeholder Meeting Review October 7, 2008
GDOT Budget Issues – Board and Legislative Recommendations
October 9, 2008
The report below was written by and represents the outcome of both the GDOT Board meeting on Tuesday, October 7 in the morning and the Transportation Sub Committee of the Senate Appropriations Committee later that afternoon. You will note that there were differences of opinions on how to make cuts in the FY2009 budget. Ultimately, the GDOT Board will be the ones who ultimately have the authority to approve the Department’s Budget.
I attended yesterday’s (October 7, 2008) GDOT’s Special Called Board meeting for the purpose of voting on budget recommendations for the purpose of balancing GDOT’s FY 2009 budget. Later in the day, Scott attended the Senate Appropriations Transportation Subcommittee meeting held at the Capitol. The following is a summary of both meetings.
GDOT Board Meeting
GDOT Commissioner Evans placed various options on the table for the Board’s consideration to find the $189 million in reductions necessary to balance the FY2009 budget.
The Board voted to adopt the following reductions, without little discussion.
They accounted for $75 million in savings and include:
1. $2 million from eliminating computer equipment purchases,
2. $3 million from eliminating equipment purchases,
3. $1.5 million from eliminating motor vehicle purchase,
4. $1.5 million from canceling IT consulting contracts,
5. $2.4 million from canceling landscape contracts,
6. $5.2 million from eliminating employee pay raises,
7. $1.4 million from reducing the employer’s portion of employee health insurance,
8. $7.8 million from eliminating 269 vacant positions, and
9. $50 million from a commercial paper loan (not sure what this is)
This left the GDOT Board to find another $114 million in savings.
The Board adopted the following reductions that require approval by the legislature in the 2009 legislative session for the cuts to become effective.
They account for an additional $54.5 million in savings and include:
1. $28 million from a re-direct from the State Infrastructure Bank
Program,
2. $5 million from a re-direct of the Community Improvement
District appropriation,
3. $ 5 million from a re-direct of the GHA appropriation, and
4. $16.5 from an adjustment to the 2009 GO Bond Debt Service
With these reductions, the GDOT Board considered another $60 million in savings.
Last, the following five recommendations were offered up by Commissioner Evans to the GDOT Board to achieve the remaining reductions necessary to balance the FY 2009 budget.
1. $6.4 million from a one day furlough for all employees,
2. $4 million from 2009 Project 107 Reductions,
3. $28 million from LARP Reductions for 2009,
4. $24 million from Off System / Most Needed Reductions for 2009,
5. $31.3 million from reduction in Work Force by 10% (eliminating 566 positions)
Board Member Sam Wellborn made the motion to eliminate LARP and Off System / Most Needed, which accounted for $52 million. Wellborn’s motion was adopted. The remaining three options were never acted on.
This reduction brought the budget within $3 million of being balanced and Commissioner Evans said that she could find the remaining $3 million somewhere in the budget.
Clearly, the GDOT Board made the decision it would rather cut funding for local road projects than lay off or furlough department employees as they attempt to balance their budget.
Senate Appropriations Transportation Subcommittee Meeting
The Senate Appropriations Transportation Subcommittee met later in the day and the GDOT Board policy was already generating some static among legislators who don’t want to see funding reduced for the paving of roads back in their districts – and lawmakers will ultimately have the final word on the matter.
Commissioner Evans appeared before the Subcommittee and presented the recommendations to the committee. In polite terms, the senators told her that cutting local road funds was an idea that wouldn’t even make it out of the garage. “I’m for saving money and cutting programs, just not in my district,” offered Senator Bill Hamrick.
“I’d have to say automatically the LARP reduction is not going to be acceptable to the Legislature,” said Chairman Senator Jeff Mullis, “I hope the board will reconsider that decision.” “I understand completely,” Commissioner Evans said.
“When times are tough, just like at home, we have to tighten our belts,”
Mullis emphasized. “LARP is extremely crucial for local governments. I’d like you to ask your board to reconsider some other options and keep LARP coming to the local governments.”
“I concur,” said Senator Chip Pearson. He further said, “Well the DOT Board is elected by members of the legislature. I think we should all write to our Board members about LARP.”
Lawmakers were also leery of Commissioner Evans’ plan to borrow $50 million in the form of a “commercial paper loan” that would be converted to a GARVEE bond. That money would be borrowed by DOT in case of cash flow problems, Evans explained.
“With the current state of our economy, will you even be able to get a $50 million commercial paper loan?” Sen. Greg Goggans. “It’s going to be very expensive, to be frank about it,” Commissioner Evans acknowledged.
The DOT situation, of course, is one of many budget problems that legislators will have to work through as they try to come to terms with an overall deficit in the state budget that will likely exceed $2 billion.
Please let me know if you have questions or comments. And, there will surely be more to come on this budget matter.
Regards,
Terry
Terry Mathews
Mathews & Maxwell
Georgia Department of Revenue Solicits Comments on Integrated Plant Theory
October 9, 2008
In the 2008 Legislative session, the Georgia General Assembly passed what is know as Integrated Plant Theory. It deals with tax exemptions for manufacturing machinery and equipment. As DOR drafts the regulations, they are seeking comments from any and all affected industries. Please see the release below and the subsequent links for instructions on how to comment and view the legislation. Please contact the GCAA office if you plan on submitting any comments.
October 9, 2008
To All Interested Parties:
The Department of Revenue’s Tax Law and Policy section is currently drafting regulation(s) to implement the “Integrated Plant Theory” for the manufacturing machinery and equipment exemption. As part of House Bill 237 (link attached below), this change was passed by the General Assembly during the 2008 Session, and will be effective January 1, 2009.
Due to the complexity of this regulation, the Department is taking the unusual step of soliciting written suggestions/recommendations from all interested parties prior to our proposed regulation(s) being issued for public comment. The Department hopes to receive comments from all affected industries, in particular to help identify any industry-specific issues. In addition, the Department has reviewed similar regulations from other states, and welcomes opinions on what industry sees as positive or negative features of other states’ regulatory schemes.
The Department will review and consider written suggestions/recommendations that are received prior to October 31, 2008. Please submit written communications to: Commissioner, Georgia Department of Revenue, 1800 Century Blvd. N.E., Suite 15300, Atlanta, GA 30345-3205. Electronic communications may be sent to regcomments@dor.ga.gov and facsimile communications should be sent to (404) 417-6651.
Please reference “Integrated Plant Theory” on all communications submitted.
http://www.legis.state.ga.us/legis/2007_08/pdf/hb237.pdf
Results From GCAA Golf Tournament
October 2, 2008
Results are in for the annual GCAA Golf Tournament at Windermere Golf Club in Cumming, Georgia. It was a beautiful day for golf and fun was had by all. Check back next week as pictures will be added to the website. Below are the winning teams as well as the skill competition winners.
1st Place
Matt Allen
Gabby Edwards
Greg Fussell
Mark Williams
2nd Place
Roy Brooks
Wanda Greenway
Dale Hawbaker
Cass Moore
3rd Place
Ross McGee
Jason Russell
Donnie Walker
Eddie Wood
4th Place
David Dukes
Kip Wilbanks
Chris Wilbanks
Bud Wilfore
Longest/Straightest Drive on Hole 9
Jon Cox
Closest to the Pin
Hole 2 – Darrell Erwin
Hole 5 – Tom Evans
Hole 7 – Guy Milliken
Hole 11 – Mickey Chadwick
Hole 17 – Allen Cruikshank
Special congratulations are in order for Ross McGee who made a hole in one…on par 4!! Ross aced the par 4 8th hole. Unfortunately, the 2008 Lexus RX 350 was only available to a player who could manage a hole in one on the 17th hole, a mere par 3.
