By Lori Yount

Staff Writer

Gov. Sonny Perdue recommended in his annual State of the State address Wednesday that lawmakers fully fund the initial costs of implementing the water management plan that is awaiting their approval.

He said there is $11 million in existing federal and state resources to kick off the water assessment process, and the governor proposed $120 million, mostly in bonds, to help local governments pay for water infrastructure and building reservoirs.

"I want to caution that this is not a silver bullet: More room for storage will not make the rains come," he told the joint session of the House and Senate.

In his more than 30-minute speech, Gov. Perdue also proposed tax reforms, an infrastructure bank to help local governments fund transportation projects, money for 200 more state troopers and several education programs.

His proposed $21 billion budget, however, cuts education funding by $141.5 million.

On tax reform, Gov. Perdue asked for a constitutional amendment to end the state property taxes on homes and vehicles, providing a total of $94 million in tax relief.

Rep. John Meadows, R-Calhoun, who has been torn on the water management plan that his House Natural Resources Committee is considering, said he would like to know more about the $11 million to fund the implementation of the plan. It has been estimated to cost the state more than $30 million in three years.

"I don't know what it's coming from," Rep. Meadows said.

Lawmakers said they expect votes on the water plan in both chambers Friday. The Environmental Protection Division has been developing the plan since 2004, and drought focused the spotlight on it in this legislative session that began Monday.

Transportation programs also were on Gov. Perdue's list of priorites.

"We must bring transportation and our system of infrastructure into the future," he said.

Sen. Jeff Mulls, R-Chickamauga, said he was "very pleased" the governor proposed $50 million to begin the state Transportation Infrastructure Bank that would provide low-interest loans to local governments for transportation projects.

Sen. Mullis said the bank was one recommendation of the Joint Study Committee on Transportation Funding, which he helped lead this summer and which is expected to announce its final proposals next week. He said he didn't know whether the governor's proposed budget will fund fully the panel's recommendations.

"We're not sure what we'll need in the future," Sen. Mullis said.

Rep. Jay Neal, R-LaFayette, said he was struck by the governor's recommendation of $65 million for transportation and technology in schools, including upgrading school buses.

"I used to drive a school bus, and we desperately need that," he said.

Rep. Barbara Massey Reece, D-Menlo, said the school systems in her rural district could use the money for both buses and technology

"I'm just not sure how far $65 million is going to go," she said.

And although she said she thought the governor gave the best speech she has heard from him, Rep. Reece said she questioned the details of the budget proposal.

She said the addition of 200 state troopers alone won't be effective when in the past, Gov. Perdue has been reluctant to give salary increases, and the State Patrol cannot fill trooper classes with recruits now.

Also, she said Gov. Perdue's $94 million in tax relief by ending state property tax on homes and cars was not "a great deal of savings" for Georgians.

"(State ad valorem taxes) don't cost you and me much," she said, adding she pays about $10 on her car and $13 on her house per year. "It's not a large amount of savings per person."

The largestad valorem taxes Georgians pay is the school portion of local property taxes.

That is the tax targeted in a proposed constitutional amendment by House Speaker Glenn Richardson. His plan is to cut the local school property tax on homes and replace the revenue with an expanded state sales tax.

That bill is being considered by a House Ways and Means subcommittee.

"Hopefully, we get all the ideas on the table and come out with a comprehensive plan that's both practical and good public policy that will lead to economic prosperity for all Georgians," said Rep. Martin Scott, R-Rossville, who is a member of the subcommittee.

Democratic leaders, in response to the governor's speech, announced they would propose tax reforms next week.

They said they would deal with fully funding Georgia's Quality Basic Education formula, which would take some burden off local school systems to keep raising property taxes.

Gov. Perdue proposed another "temporary QBE reduction" of $141.5 million, bringing the total to $1.5 billion in such cuts in the past five years.

"Just this afternoon, he said one thing and has done another in education," said Rep. Kathy Ashe, D-Atlanta.

E-mail Lori Yount at lyount@timesfreepress.com