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Published Wednesday, September 03, 2008 in Local

Higgins: Perdue plan 'unconscionable'

By Sarah Fay Campbell

The Newnan Times-Herald

Gov. Sonny Perdue's actions in holding back the homeowner tax relief grant are "unconscionable," said Coweta Commission Chairman Tim Higgins Tuesday night.

"I believe it is unconscionable that the governor would try a back-door tax increase for citizens without a public hearing, without going through anything publicly," Higgins said.

"I think if all the citizens will call and let him know, let our delegations know -- this isn't fair. They need to do something about it -- today."

To help fill the state's projected $1.6 billion budget hole, Perdue has decided to keep the $428 million that is supposed to go to city and county governments and school systems as part of the homeowner tax relief grant.

Perdue has the power to temporarily hold the money -- but only until the Georgia General Assembly passes the supplemental budget, usually in February.

But Coweta and other governments are ready to send out tax bills.

Coweta will be sending out bills as if the grant credits will be in place, along with a letter explaining the situation.

The grant covers between $250 and $350 in county taxes for each homestead, and roughly double that amount for school taxes.

In the letter, county officials also note that "local governments set budgets based on the commitment," County Administrator Theron Gay said.

Coweta County stands to lose $2 million; the school system almost $4 million.

"Can we absorb almost $6 million? I would be very surprised that we could," Gay said. "Or we will have to turn around and re-bill. Which we certainly don't want to do."

Gay said the letter will recommend that residents contact their legislators and "talk to them about the need to continue this."

All three members of Coweta's state legislative delegation said they plan to vote to restore the money for this year.

Perdue made his announcement the same day that counties presented their tax digests to the state for approval, Gay said.

"You guys have already set the millage rate, the school set their millage rate," Gay told the Coweta commissioners Tuesday.

"If we had known about this in January, that would be one thing," Gay said.

The program may go away in the future, but "if it does, the state needs to tell us at the beginning of the year," Gay said.

"Before we set the millage rate. Before it's too late."

Local governments have tried to keep their budgets low, Gay said.

The county cut the millage rate and "cut our budget to the bone," Gay said. "Most of the increases we've seen are state-mandated programs."

"I think sometimes the finger is pointed unfairly at local governments," Gay added.

"I think we do try to control spending. With some of these things that are passed down to us, it may look like the state is saving money.

"But it's coming out of the same pockets."

"It looks like they're trying to give us the short end of the stick," said Commissioner Paul Poole.

The commissioners discussed the tax bill issue after a brief presentation on the 2009 budget.

The general fund budget is $60,428,215. There are some funds that are separate from the general fund.

Additionally, staff is still working on a budget for the proposed new fire district. The new fire district, and some $20 million in bonds, will be on the ballot for approval in November.

A public hearing on the budget will be held Sept. 16 at 6 p.m. The budget must be approved by Oct. 1, the start of the new fiscal year.

Gay said the county "has taken an aggressive approach" in the 2009 budget.

Top priority was keeping the existing levels of service, Gay said, as well as a 2.5 percent cost-of-living adjustment for county employees.

Gay laid out various budget requests and what finance department staff supported.

Only a small percentage of personnel requests were supported by staff, Gay said.

The road department requested $14 million for road work, but the budget recommends $5.5 million.

The planning department had requested $197,295 in matching funds for the Brown's Mill Battlefield Park. The money was the required local match for a state grant that would help pay for walking trails, a pavilion and other items to allow the park to begin operation.

The request was not supported by staff, Gay said.

Gay said hopes are that the DOT will allow the grant money to roll into next year. "Maybe the economy will be better at that time and we can fund it," he said.

County staff also removed all employee training from the budget.

Any essential equipment purchases can be paid for out of the county's "fund balance," Gay said. Using some of the rainy day surplus for equipment purchases shouldn't bring the balance down much because "we actually ended up with a few dollars" excess in the 2008 budget.

Work on the budget began in June.

"It's been a pretty tedious project. We worked on it a lot of long, hard hours," Gay said.

"Of course it's never easy to cut. But we want to be sure in these hard economic times we continue in the service we've been providing."