published Tuesday, September 20th, 2011

Georgia reduces its borrowing

So far as we can tell from Tennessee, our neighbors to the south in Georgia made a sound decision in selecting Republican former U.S. Rep. Nathan Deal as their governor in the last election. He has led Georgia ably and conservatively on matters ranging from illegal immigration to fiscal management.

Most recently, we were gratified to read that Deal is going in the opposite direction from our federal government on the issue of borrowing and spending.

He cut the state's bonding almost in half in his first budget, The Associated Press noted in an article under the headline, "Georgia borrowing dips under Deal's tenure." For instance, he vetoed more than $40 million worth of borrowing for a range of projects in higher education -- including an $18 million marine biology building at Savannah State University.

Deal is not "anti-education," but he realizes that in a time of crisis, when government revenue is down, there has to be belt tightening, not only in the private sector but in government, too.

The pain of big debt is especially clear when you consider that because of spending prior to Deal's administration, Georgia has $9.2 billion in outstanding bonds -- and pays about $1.2 billion annually to service that debt.

The governor is commendably resisting calls for Georgia to borrow more money as a form of "stimulus." He recognizes that the artificial priming of the jobs pump by government is no substitute for real jobs generated by free enterprisers in response to real market demand.

Applauding Deal's wise stewardship, Kelly McCutchen, the head of the Georgia Public Policy Foundation, told The Associated Press, "States are not in the business of borrowing money to stimulate the economy."

That's true, and it's a lesson that we wish our deeply indebted federal government would learn.

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JustOneWoman said...

So, what exactly is the purpose of the state of Georgia, if not to provide for the commonwealth? Shouldn't the citizens of the state be a more important investment?
Sorry kids, If I owe the bank for the house or the car, we just can't afford to eat. It IS the business of the state of Georgia to stimulate the economy. The fact that they are not doing it, or that you dont understand, doesn't change that fact. Who wrote this article?

September 20, 2011 at 3:18 p.m.
annie1 said...

JustOneWoman: Sorry kids, I have to buy you food and put a roof over your head so we won't be able to by a new car -- we'll just get our old one repaired!

There are plenty of places to cut the budget back without taking food out of anyone's mouth!

September 20, 2011 at 4:09 p.m.
JustOneWoman said...

Costs money to get repaired too. Money that people do not have. A car repair could be the difference in being homeless when you live week to week. It is amazing how people do not understand that there are those bringing home as little as $250 per week, if they are lucky enough to have a job. How long would that last you? Does that cover your rent or mortgage?, much less the car payment? I will agree with you that there are better ways, but good luck on getting any of that in this political environment. The political staturing is only driving wages down, which was what the plan was to start with. This country is being torn apart from within. And the greedy ones have fooled quite a few of you.

People should come first. In Georgia they do not. I will stay out of Georgia as much as I can, and I was born there.

September 20, 2011 at 4:51 p.m.
claytonsilas said...

The type of uninformed comment i would expect from this section.Billions of dollars lost by fruit rotting on the ground,education funds slanted so that only rich kids get aid and of course,like this state,Georgia has made it more difficult for the elderly and non-drivers to vote.I fought in Vietnam for freedom,I thought,but the draft dodgers from the 60's are still looking out for those big corporations that keep them supplied with campaign funds.Nothing changes.

September 20, 2011 at 8:55 p.m.
SomeAreIgnorant said...

Good for Gov. Neal. As to JustOneWoman-- Please read the consitution of the state of Georgia. It is pretty easy to find with Google, or any search engine. The purpose of the state "is to perpetuate the principles of free government, insure justice to all, preserve peace, promote the interest and happiness of the people and the family, and to transmit to posterity the enjoyment of liberty, we the people of Georgia, relying on the protection and guidance of ALMIGHTY GOD, do ordain and establish this constitution" It does not say ANYTHING about providing for the commonwealth as the purpose of the state of Georgia!!

September 20, 2011 at 10:58 p.m.
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