ATLANTA — With today the last of the 40-day legislative session, Georgia lawmakers worked behind the scenes Thursday to broker deals and assure votes on key bills before they head home to campaign.
Senate President Pro Tem Eric Johnson said the fate of some measures rests on whether the House and Senate can agree on a tax cut package to put on the Nov. 4 ballot — the same ballot that will decide the re-election of many.
“Taxes is the deal that breaks everything loose,” Sen. Johnson said. “Taxes is the key to all of it.”
Specifically, he predicted lawmakers will be reluctant to ask voters to decide on creating a regional 1 percent sales tax for transportation or raise vehicle registration fees to fund trauma care, without also giving Georgians a vote on tax cuts and reform.
Senate and House leaders seemed confident negotiations on the $21.2 billion budget for fiscal year 2009 — the only thing the General Assembly legally is required to pass — will result in success today.
How much money to restore to the school funding formula is the main sticking point, especially after Gov. Sonny Perdue cut revenue estimates by $245 million last month because of the softer economy.
On Thursday the Governor’s Office reported revenues were down 1.6 percent last month compared to March 2007, but the state’s economy still had grown 1.6 percent in 2008 compared to the first quarter of last year.
It was too late in budget planning to adjust for the lower revenues and give immediate tax relief, too, Sen. Johnson said.
“We’re too far along in the budget to cut $200 million,” he said, referring to the plan senators passed earlier to reduce state income taxes by 10 percent over a five-year period starting this year.
House leaders want to eliminate the property tax on vehicles, a tax cut of some $500 million when fully implemented after two years. On Tuesday, the House also passed the income tax cut, which amounts to about $1.2 billion in five years.
House and Senate leaders have been negotiating — and posturing — for a week on their dueling plans, Sen. Johnson said.
Rank-and-file legislators said they simply want to vote on a tax cut.
“I don’t think they care (which plan),” Sen. Johnson said. “They expect us to work this out. They’ll be very disappointed if they can’t vote on it.”
He said negotiations are moving along well on a property value assessment and limits to state government spending, both of which he said voters likely will see as separate ballot questions in November.
Sen. Jeff Mullis, R-Chickamauga, has said a transportation special purpose local option sales tax probably still would be viable on the ballot if voters also are given a chance to limit the property assessments or other tax reform measures.
Sen. Mullis; House Transportation Committee Chairman Vance Smith, R-Pine Mountain; and other lawmakers continued negotiations Thursday on the measure to allow regions to levy a 1 percent sales tax for transportation, if voters approve.
Part of the debate is over what should be in the referendum going directly to voters, and what should be in enabling legislation that must be signed by Gov. Perdue, who has criticized the legislation.
Sen. Mullis said he had been contact with Gov. Perdue’s office and was “encouraged where discussions have led us.”
