Georgia Chamber of Commerce Legislative Update: March 15

Monday, March 15, 2010

Tomorrow marks the 25th day of the General Assembly's 40-day session.  Only five days remain until "crossover day," or day 30, after which no bill can be considered that has not yet been passed by either the full House or Senate.  The budget continues to be the dominant issue for 2010.
Budget

• Governor Perdue held a press conference last Thursday, during which he lowered the revenue estimate for fiscal year 2011 by nearly $450 million, announced that over $340 million in federal stimulus funds would be used to bridge an anticipated fiscal year 2010 budget gap, and charged state agencies with cutting another 3 percent from their budgets.  The Governor also proposed that sales tax holidays for school supplies and water or energy efficient products, long supported by the Georgia Chamber, be eliminated.
• As part of this announcement, Governor Perdue proposed a 10.25 percent cut in Medicaid reimbursements for health care providers and the elimination of the state sales tax exemption for non-profit hospitals. While the Georgia Chamber understands the severity of the state's budget challenge, we are concerned that a reduction in Medicaid reimbursement rates would ultimately drive up costs for Georgians with private insurance and their employers and would reduce the number of doctors and hospitals throughout the state.  The Georgia Chamber is working to find an alternate solution to the budget needs.

Water

• The House and Senate passed companion bills (HB1094, SB370) last week targeted at encouraging conservation, reducing water loss, and identifying new ways to increase Georgia's water supply.  Based on the recommendations of the Water Contingency Planning Task Force, on which many Georgia Chamber members participated last year, the provisions in these bills will ensure sound stewardship of this precious and limited resource. 
• Last week, the River Basin Protection Act (HB1301, SB462) was introduced in both chambers.  This bill would modify the current criteria and process for inter- and intra-basin transfers and add new regulations for the use of groundwater.  Dozens of communities across Georgia successfully use both of these methods to obtain water today.  The Georgia Chamber opposes this legislation because it would interfere in local communities' efforts to effectively manage water resources throughout the state.

Economic Development

• HR178, which would bring needed clarity to Georgia's employment covenant laws, will hopefully be brought to the full House for a vote this week.  This bill would ensure that employers and employees in this state enjoy the same certainty with regard to their agreements as they would in other states by allowing judges to make decisions reflective of the original intent of employment contracts.
• HB1097, which would have instituted a statewide standard for school start dates of no earlier than the third week of August, failed to pass in committee last week, effectively ending its chances for passage this year. The Georgia Chamber supported this measure due to the positive impact on tourism experienced in other states that have implemented uniform, late summer start dates.

Education

• The Georgia Work Ready program - a partnership between the Georgia Chamber and the Governor's office - is making a positive impact on communities throughout the state by certifying employees for today's jobs and connecting them with employers in all sectors of the economy.  HB1195 would ensure the future of this successful program, originally created by executive order, by codifying its mission and governance.  This bill is expected to receive a committee hearing this week.