As we prepare for the Thanksgiving holiday, some may travel great distances to spend time with family and friends. This Thanksgiving, my husband, daughter, and I will stay in Georgia and settle in for a simple quiet meal and think about all the things for which we are thankful. While we model an attitude of gratitude for our daughter, we will also think about the stark reality many children and families in Georgia are facing this year. Whatever your experience or tradition, what I hope is common across them all is that we pause and offer prayers of thanksgiving.

Where I used to find people oblivious to the plight of disadvantaged and struggling families, I find much more empathy and understanding because so many more of our neighbors or family members have been touched by the economic downturn.  Whether it’s the friend who lost their job, neighbor who lost their house, aunt with medical bills she can’t afford, or the parents struggling to feed their kids, we know of someone. The problem has faces and more importantly names. For years I have witnessed the homelessness of many unnamed men, women, and children in Georgia’s capitol city. Every morning during my commute, I see a line of hungry, breakfast-seeking homeless Georgians wrapped around Central Presbyterian Church, ironically, just one block from the Capitol and Atlanta City Hall. Don’t our policymakers and leaders see this too?

I know it’s a work in progress, but how long will it take for relief. Unfortunately, report after report tells us that Georgia faces serious challenges in health, education, and family well-being.  For more than 10 years, I traveled the state, spoke with the media, and shared somber news about the state of Georgia’s children and families. Georgia has made gains over time; however, at a snail’s pace.

This year’s State of Working Georgia demonstrates that Georgia’s economy has tanked. Thanks to the Great Recession and the months of “non-recovery”— more than 350,000 Georgians have lost work in the past five years. Georgia is now among the bottom states in job growth.  Recent reports also show us that more Georgians are suffering from food insecurity and are dependent upon public programs to feed their children. Despite the stark realities, I’m reminded to be optimistic. Just last week Governor Deal announced a collaborative effort to end child hunger in Georgia for the more than 700,000 children at risk. Thank you! Thank you!

I am thankful for the forward-thinking elected leaders at the state and local level—wish there were more—who look at these reports, see the data in their communities, and act to make things better. I am also thankful for the leaders who acknowledge these challenges and work collaboratively, across party lines, county lines, community lines, to solve them. We need to work together more than ever before and remain committed to advancing the policies that will improve the quality of life for Georgians.

We value partnership at the Georgia Budget and Policy Institute and we are thankful for the opportunity to work alongside policymakers, advocates, and concerned citizens to raise awareness and serve as a voice for children, families, and millions of low- to moderate-income working Georgians in the public policy debate. We’re committed to sounding the alarm for Georgia to take a balanced approach to addressing the fiscal challenges and invest in education, transportation, workforce development, public health, and safety—our infrastructure—to ensure real economic development and growth for Georgia’s future.

We have a great deal of work to do; but, I am thankful that we’re doing it with you.

Related materials:

State of Working Georgia

Georgia at a Crossroads: Keep Sliding Backwards with Status Quo or Move Forward with Balanced Approach

November 23rd, 2011 Posted to Blog, Economic Security, Taifa Smith Butler | Comments (1)

GBPI’s new report, State of Working Georgia 2011, paints a troubling picture of how everyday Georgians are faring in today’s economy. Over the past decade and especially since the downturn of 2007, working Georgians have faced massive job loss, rising unemployment and persistent inequality—and things appear to be getting worse.

As outlined in the report, Georgia fell from the 7^th highest rate of job growth in the ‘90s to the 36^th lowest in the ‘00s, a trend made worse by the Great Recession and jobless recovery. More than a quarter million Georgians lost their jobs between December 2007 and June 2009, with another 80,000 disappearing during the so-called “recovery.” All in all Georgia has lost 351,400 jobs – third most nationwide – since the crisis began, and ranks dead last in job growth since the official start of the recovery in June 2009.

Despite consistently lagging behind on social indicators like poverty and educational attainment,Georgia has long taken solace in our robust growth and job creation. We’ve rightly been pleased with our (mostly) consistent economic expansion, evidenced by trends like healthy job growth in the ‘90s and rapid population growth to date. The hope has always been that eventually the rising tide would benefit everyone, collectively lifting every Georgian’s boat to greater prosperity and economic security.

The crash of Georgia’s jobs market has put that hope to rest.Georgia’s now not only a relatively impoverished and poorly educated state, it’s a slow growth state too. It’s clear that our leaders must act, but the question is, how?

Georgia is at a crossroads. Down one path lies our outdated model of the past, which at its core says that if you cut taxes as low as they’ll go and slash state services to their bare bones – while occasionally luring new companies through expensive, taxpayer-funded subsidies – your state will explode with jobs and growth. The problem, unfortunately, is that model simply doesn’t work. It’s a model that’s contradicted by the overwhelming body of evidence on what makes state economies thrive: a balanced mix of strong public services, high quality of life, an educated workforce and a competitive, equitable tax system. As a U.S. Chamber of Commerce report recently put it, “A state can neither cut nor tax itself into prosperity. Weak public infrastructure combined with low taxes has failed through history to create strong state economies, as was long the case in the Southeast.”

Of course that hasn’t stopped Georgia from trying, especially recently. It hasn’t stopped policymakers from endlessly obsessing over tax cuts while ignoring the core building blocks of growth.

But there is another path, one that Georgia’s leaders could easily take—investments in infrastructure that create new jobs and drive future growth; support for entities like technical schools and the Georgia Research Alliance that foster innovation, entrepreneurship and a 21^st century workforce; renewed commitment to world-class education from pre-K through college. And leadership that puts aside the distracting ideological fights like immigration “reform” in favor of bipartisan action on jobs. 

A hurdle to that approach, however, is Georgia’s significant lack of revenue (the PeachStateranks 49^th nationally in how much revenue it collects per resident). That’s why comprehensive tax reform should remain high on the state’s agenda, though special care must be given to getting that reform right.  New revenue may sound scary to some, but if done reasonably a reformed tax system would minimally impact the majority ofGeorgia taxpayers, while providing the revenue we desperately need for investment and growth.

State of Working Georgia 2011 paints a startling picture, but come January lawmakers have a chance to act. They should do so decisively, but also sensibly. They should acknowledge not only the task we face, but also the areas whereGeorgia’s taken the wrong road. If we want to grow for the future, then we need to accept the lessons of the past and chart a stronger, balanced course toward renewed prosperity for all.

November 17th, 2011 Posted to Blog, Economic Security, Wesley Tharpe | Comments (4)

State of Working Georgia uses data on wages, jobs, unemployment and poverty to closely examine the effect of the economy on everyday Georgians. The report is produced annually, and is part of the State of Working America project from the nonpartisan Economic Policy Institute.

This year’s State of Working Georgia focuses on the impact of the Great Recession and so-called recovery such as extreme job loss and high unemployment, as well as more persistent problems like stagnant wages and rising inequality. According to the report, Georgia has lost a greater number of jobs than all but two other states since the recession started in December 2007, and unlike the vast majority of states, has continued losing jobs at an alarming pace. Georgia’s unemployment rate has nearly doubled from 5.2 to 10.3 percent; September 2011 marked the 50th consecutive month that Georgia’s rate outpaced the national average.

State of Working Georgia 2011 takes a deeper look at some of these numbers, exploring how different industries and demographic groups have fared. It also provides a comprehensive discussion on the data’s policy implications, including recommendations for short- and long-term action. Download the PDF. 

Related Materials:

State of Working Georgia: Jobs Count
State of Working Georgia 2011: Georgia’s Job Crisis at a Glance
State of Working Georgia 2011: Georgia’s Labor Market Deteriorates, While Inequality Persists
Beyond the Numbers: “Georgia at a Crossroads: Keep Sliding Backwards with Status Quo or Move Forward with Balanced Approach”

November 17th, 2011 Posted to Economic Security, Home Tab 3, Library, Policy Areas, Reports | Comments (4)

Vital state services may face further budget cuts. Most state agencies have seen their budgets cut by an average 14 percent, and many more by 20 percent or higher. So while the state’s revenue growth (6.8 percent) through October is ahead of the 4 percent growth needed for the FY 2012 budget, Georgia’s budget crunch is far from over.

Program such as Medicaid and PeachCare are facing a $210 million shortfall in FY 2012 because of previous years of underfunding. The governor’s preliminary revenue estimate for the amended FY 2012 budget calls for a 1.2 percent increase, which should cover the immediate Medicaid shortfall. Unfortunately, the increase is not quite enough, and leaves little to no money for anything else. Beyond filling the shortfalls, the governor must be conservative in his revenue estimate in order to plan for an end of the year surplus that will be needed to re-build Georgia’s Rainy Day Fund.

As we enter into the 2012 legislative session, we can expect continued budget pressures in the FY 2013 budget. According to Senate Appropriations Chair Jack Hill, Georgia will need almost $1 billion in new funds for:

• shortfalls in Medicaid, PeachCare and the State Health Benefit Plan;
• enrollment growth in K-12 and Board of Regents;
•  annual required contribution to the retirement systems;
• agreement with Department of Justice regarding behavioral health; and,
•  the phase-in of tax cuts.

The governor’s preliminary FY 2013 revenue estimate calls for 5 percent revenue growth, or approximately $850 million, leaving a potential shortfall of several hundred million dollars. 

As Georgia continues to wrestle with the state budget crisis, the governor and General Assembly must remain focused on both the short- and long-term needs of the state. Georgia’s economic and job growth depends on an educated and trained workforce; an adequate health, safety and regulatory infrastructure; and, especially in these tough economic times, a social safety net without holes.

Our policymakers must take a balanced approach to the state budget crisis­­—one that includes additional revenues. Comprehensive tax reform done right would keep our overall tax structure economically competitive. It would give tax cuts to those Georgians most in need, and raise additional revenues to not only avoid additional cuts to services but begin the process of rebuilding the state infrastructure so vital for economic growth. GBPI’s report, Advancing Georgia’s Tax System to the Modern Day, gives such a road map. 

November 15th, 2011 Posted to Alan Essig, Blog, State Budget | Comments (2)

The state budget is more than just a list of numbers. It is perhaps one of the single most important documents created by policymakers. From our education system to criminal justice to human services, the state budget decides what services Georgians receive and the quality of those services. In the presentation, FY 2012 Budget Overview, GBPI provides an overview of the governor’s 2012 budget, including a breakdown of state spending and revenue sources as well as the impact of budget cuts on critical state services such as education.

 Related Materials:

• Georgia’s Budget Primer 2012

The Special Council on Tax Reform & Fairness for Georgians, the Public Service Commission, legislative leaders, and the governor have all come out in support of the proposal to eliminate the sales tax on energy for manufacturers.  Such an exemption would cost the state treasury $137 million when fully implemented.  Although there is a strong public policy and economic development case to be made for this exemption, with the state facing hundreds of millions of dollars of additional deficits next year, the state cannot afford to take the revenue hit.

That does not mean we should not pass legislation implementing the exemption. The Great Recession has forced a prioritization of spending as almost $3 billion has been cut out of the state budget. It is time that we begin to treat the tax side of the budget the same way we treat the spending side by requiring that exemptions and credits face the same scrutiny and prioritization as budget proposals.  If the sales tax exemption on energy for manufacturers truly is an economic development imperative, then the business community should look at existing business exemptions and credits and recommend inefficient or lower priority ones for elimination.

We can and should eliminate the sales tax on energy for manufacturers, but it should be paid for through eliminating less important tax breaks and not through further cuts to education and health care.

November 8th, 2011 Posted to Alan Essig, Blog, State Taxes | Comments (1)

Taxes are essential to ensuring Georgia can provide important services for its residents and to make strategic investments that promote job growth. Georgia’s tax system has proven inadequate in meeting the needs of a growing, modern state. Now more than ever, policymakers must take a comprehensive approach to tax reform that is both fair and adequate.  In the presentation, Advancing Georgia’s 1930s Tax System to the Modern Day, GBPI offers an a brief historical account of the state’s antiquated tax system and suggestions for reform.