Opinion: Governor Perdue Should Veto HB 1055 and Demand Lawmakers Pass A Clean Version

In order for Governor Perdue to maintain his record of fiscal responsibility, he should veto House Bill 1055. The legislature combined permanent tax cuts with much-needed revenue increases in HB 1055, turning the governor's fiscally responsible proposal into a last minute tax giveaway.

The final version, which passed April 14, adds to the alarming and long-term structural deficit in Georgia. In addition, this bill along with HB 1023 - which has permanent tax cuts of $380 million - could have serious negative implications for Georgia's AAA bond rating.

There is another option- an option that would allow the governor to achieve his original proposals of a temporary hospital fee and updates to user fees. House Bill 307, which contains the temporary hospital provider fee, is still viable. The governor still has an opportunity for the clean bill he desires, if lawmakers revise HB 307 to contain both revenue measures.

Lawmakers of both parties should vote for an amended version of HB 307 that contains two things - the temporary hospital provider fee and updates to user fees. However, lawmakers are not likely to pursue this sensible alternative unless the governor immediately vetoes HB 1055.

Alan Essig
Georgia Budget & Policy Institute


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Pelosi Statement on Senate Passage of Pay-As-You-Go Legislation

/PRNewswire/ -- Speaker Nancy Pelosi issued the following statement today after the Senate voted to approve pay-as-you-go legislation:

"Today the Senate joined the House in taking a critical step toward ensuring fiscal discipline for the long term by passing pay-as-you-go budget rules into law.

"Strict pay-as-you-go budget rules created record surpluses in the late 1990s. And when this standard was abandoned under President Bush, it created record deficits. One of the first actions Democrats took when we assumed the majority in 2007 was to make pay-as-you-go fiscal discipline the rule of the House. Now it will be the law of the land, and our future generations will benefit. Like every American family, Congress cannot make spending commitments it cannot afford.

"As the President made clear last night, we must make tough decisions to get our fiscal house in order after a decade of failing to do so. We can strengthen our nation without undermining our future; with pay-as-you-go spending rules, we will."

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