In This Issue:
· Legislative Report
· In Other News
· Energy, A Renewable Resource
· In Other News
· Editorial: House Stance

Legislative Report

March 23rd at 10:00 am. The General Assembly will be back in session on Monday, March 30th at 10:00 am for the 38th legislative day. Sine Die is scheduled for Friday, April 3rd. There are three days remaining in the 2009 session of the General Assembly. The state’s Constitution says the General Assembly can be in session for no more than 40 legislative days beginning on the second Monday in January.

SR 294 today by a vote of 157-1
SR 294 authorizes the conveyance of certain state owned property in Baldwin, Bibb, Camden, Cherokee, Athens-Clarke, Emanuel, Fulton, Gordon, Gwinnett, Hancock, McDuffie, Telfair and Wilkinson counties. The State properties Commission has deemed these conveyances to be in the best interest of the State of Georgia.
Georgia Retiree Health Benefit Fund– To help with
federal compliance along with transparency and accounting, the
house adopted SB 122 on Monday, March 23rd. The legislation repeals
the Georgia Retiree Health Benefit Fund and puts in its place two new
funds, the Georgia School Personnel Post-employment Health
Benefit Fund and the Georgia State Employees Post-employment
Health Benefit Fund. The reason for the news funds is because the
Federal Accounting Standards
Board issued new regulations for
states to report all future post-
employment benefit liabilities.
Furthermore, the legislation says
that when the $140 million trust is
divvied up each fund will receive
the amount its respective employers
contributed. These newly-created funds will continue to provide for
the costs of post-employment health
insurance benefits for their
beneficiaries. The Department of
Community Health will be
responsible for both funds. SB 122
passed 161-1.

House passed SB 13 by a vote of 144-0. The measure allows District Attorneys to seek a sentence of life in prison without parole without having to seek the death penalty. The hope is to allow DAs to be able to put murders away for life and give them another tool use instead of having to prosecute using the death penalty, which can be very costly.
Sex Offenders — The House passed SB
14 on Wednesday, March 25th. The
legislation says that no person who is on
the national or state sex offender registry
shall be eligible for election to or service
on a local board of education. SB 14 was
approved 161-1.
Home Schooled Students – SB 210,
which passed, March 25th 157-0 allows
home schooled students to participate in
the Governor’s Honor Program.

Food and beverages in train stations – SB 89, which passed on Thursday,
March 26th by a vote of 165-0
allows transit companies, such
as MARTA, to sell food and
beverages at their transit
stations.
Additionally, the legislation
allows for people riding trains
and buses to have non-
alcoholic drinks if they are in
a re-sealable plastic bottle.
Medicaid and PeachCare–In an effort
to prevent fraud in Medicaid
and PeachCare the House
passed SB 165 on Thursday,
March 26th by a vote of 155-7.
The legislation authorizes the
Department of Community
Health to obtain income
eligibility verification from the
Department of Revenue for
applicants for Medicaid and
the PeachCare for Kids
Program. The legislation is
revenue neutral and an
amendment was passed for the
bill to allow the state to get out
of the program if it is slowing
down the application process.
Ephemeral Stream– On Thursday, March 26th
the House passed SB 155 that adds “ephemeral stream” to
the list of state waters that require a 25 foot buffer. In the
legislation, “Ephemeral
stream” is defined as a stream,
that under normal
circumstances has water
flowing only during and for a
short duration after precipitation events; that has
the channel located above the
ground-water table year round;
for which ground water is not
a source of water; and for which runoff from
precipitation is the primary
source of water flow. Many
opposed believe the legislation
is not needed because the
federal government does not
define an “ephemeral stream”
They also say it creates a
loophole with such a loose
definition.
Darfur–On Thursday, March
26th the House passed SB 170,
160-0. SB 170 is in regards to
the genocide in the Darfur
region in the African country
of Sudan. The legislation
prohibits certain companies
that have certain business
operations in Sudan to bid on
or submit a proposal for a
Georgia state contract. The
legislation does not impact
any current or existing
contracts. Because of the
ongoing crisis, 2.7 million
people have been displaced
and 10,000 die each month in
the Darfur region

And In Other News

Unfunded Mandate from the State–For the second time this session the House failed to pass SB 83 on Wednesday, March 25th. SB 83 mandated a statewide increase in the homestead exemption from the current $2,000 to $3,000 in 2011 and to $4,000 in 2012. It was subject to approval by the voters on the 2010 November ballot and needed 120 votes for passage but failed by a vote of 109 to 63. House Democratic Leaders issued a press release after the vote stating:
“By the state mandating that local governments increase the homestead exemption they are attempting to pass another unfunded mandate down from the state and undermine public education,”said House Democratic Leader DuBose Porter (D-Dublin). “This is another attempt to cover up the fact that Republicans have passed the largest property tax increase in Georgia history by not providing $428 million for the Homeowner Tax Relief Grants in the 2010 budget. Homeowners throughout Georgia are now going to pay an additional $200 to $300 on their tax bills this November when they are worried about paying their mortgage, utility bills and putting food on the table.”
Democrats have offered a way to pay for the HTRGs with HB 356 which allows local governments to collect their own sales taxes instead of the state Department of Revenue. In Alabama, this brought in an additional $1 billion in revenue without raising any new taxes but Republican leadership has refused to allow a vote on this bill. In this economic crisis we must be willing to implement bold new ideas and think outside of the box if we are to move forward.
“According to House Democratic Caucus Chairman Calvin Smyre (D-Columbus), “The General Assembly is trying to make local governments take the hit under the cover of SB 83 which is another unfunded mandate from the state. SB 83 would be devastating to our schools that have already seen deep cuts this year. If SB 83 went into effect, cash strapped local governments would be forced into drastic action such as laying off teachers, cutting police patrols, and stopping trash pick up.”
In conclusion, Rep. Porter noted, “Republicans have already cut public education by $267 million this year bringing the total cuts to Georgia’s schools under Republican leadership to $2 billion since 2003. This is on top of not funding $428 million for the HTRGs that will further cripple local government’s ability to provide public education. Now, Republicans bring SB 83 which hurts our ability to attract quality industry to Georgia. This hurts economic development in the long run.”
Gwinnett County, the largest school district in the state, is a good example of how Republicans have cut public education this session. The FY 2009 budget that ends June 30th cuts $12.3 million from their school district and the House version of the FY 2010 budget which begins July 1st cuts $28.1 million. SB 83 would have hurt Gwinnett County schools, and all the other systems throughout the state, which have seen drastic funding cuts. Since 2003, Republicans have cut public education by $2 billion forcing local property taxes to rise all across Georgia.

DO GEORGIANS GAIN FROM PSC VOTE ON NUKE PLANTS? Two views (AJC)
Yes: Method means ratepayers will avoid a $300 million bill later
By STAN WISE
As we watch our nation mortgage our children’s future with more and more debt, here in Georgia we have instead instituted a pay-as-you-go approach to finance the expansion of nuclear power.
The Georgia Nuclear Energy Financing Act, passed by the Legislature and endorsed by the Public Service Commission, enables Georgia Power to use an accounting method called Construction Work In Progress, or CWIP, to finance new nuclear reactors. The measure retains the PSC’s authority to ensure only prudent costs are passed onto ratepayers.
Through CWIP, ratepayers avoid a future bill of $300 million in additional financing costs that pay the financing costs in construction. And by paying the $1.6 billion in ongoing finance costs during construction, the plant’s mortgage will be $2 billion less than it would be without CWIP, saving even more over time. CWIP also keeps rates low by insulating Georgia Power’s A-bond rating from downgrades that can lead to higher borrowing rates on other projects.
The concept isn’t new. It’s saved money for the customers of utilities throughout the country and here in Georgia.
Under traditional ratemaking consumers would still pay for the cost of the plant and the accrued finance costs during construction. However, those costs, which include bondholder interest and shareholders returns, were deferred until the plants went into service. This meant consumers paid the tab on hundreds of millions in financing costs for financing costs, which CWIP now avoids.
Why the opposition to CWIP? The staunchest opponents were the lobbyists of the consumer group Georgia Watch, which claims to be “neutral” on the issue of nuclear power. Their true interests are unknown because they do not disclose their donors or source of funding. But the group’s newest lobbyist, Angela Speir Phelps, is a former PSC member whose voting record might shed light on their agenda. She was the only commissioner who voted against a 2006 provision that provided funding for Georgia Power to study nuclear expansion.
Georgia Watch’s position on financing nuclear plants would actually make them cost more and produce rate shock. It is remarkable that in about seven years, when the new nuclear units go into service, a consumer group would support two back-to-back increases that total 12 percent — 3 percent more than they will be with the use of CWIP — as opposed to phasing in costs over seven years.
This group also claims CWIP produces prepaid profits. What they don’t acknowledge is that this is interest paid to bondholders and returns paid to investors — and it will be paid regardless of CWIP. Without CWIP, an additional $300 million would have to be raised from investors, which would actually make more money for investors.
Finally, Georgia Watch says it is not fair to start charging for a service some may never use. Under that logic, we should not plan for the future. No more new roads, water systems, schools or anything that benefits our residents in the near or long-term.