The General Assembly gaveled in for the fifth legislative day on Monday, January 25, after a week off for budget briefings from state agencies and departments. In meetings throughout that week, and in Appropriations subcommittee hearings last week, state department heads presented their strategies and budget requests for dealing with a $1.5 billion state revenue shortfall for this fiscal year. While legislators have devoted the lion's share of attention to the budget, several legislators have introduced  bills concerning jobs and the economy, education, and House rules in recent weeks.

            It should be a settled principle by now that the government, whether state or national, cannot create wealth. Governments get monies by taxing their citizens, through borrowing from future taxpayers through deficit spending, and by issuing debt in the form of bonds and other credit instruments. True wealth, however, comes from entrepreneurship and hard work, and to that end, the state's role is to promote a climate where those endeavors can take root and flourish. Measures that impose fees, taxes on inventory, and taxes on unrealized gains hinder the success of small businesses without redounding to the benefit of Georgians.

            Last year, Rep. Tom Graves and others sponsored the Jobs, Opportunity, and Business Success (JOBS) Act to enable small businesses to breath easier in the declining economy. By easing the state financial burdens on new businesses and providing incentives to hire employees, the JOBS Act of 2009 was a commonsense way of speeding up Georgia's economic recovery. Unfortunately, the only measure to survive a veto was HB 482, the elimination of state ad valorem taxation of business inventory. This year, Rep. Graves and others again introduced measures which will create a regulatory climate friendly to the creation and success of small businesses. House bills 1023 and 1024 together constitute the JOBS Act of 2010 and represent tremendous steps toward creating the jobs Georgians need by allowing small businesses to grow. These measures include waiving state fees for new businesses, rewarding investors with tax credits after two years of investing in businesses with less than 20 employees, and reducing the state capital gains tax by half. Other measures include gradually phasing out the sales tax deposit requirement for Georgia businesses and providing tax credits to businesses that hire Georgians receiving unemployment insurance benefits. To those that argue cutting taxes, waiving fees, and foregoing revenue streams will hurt the state, I state simply that businesses grow when they are allowed to do so. One cannot squeeze blood from a turnip, and a state cannot collect money from businesses and individuals that are strapped for cash—no matter how high the taxes rise. When states cut through the fees and taxes that burden small businesses and provide opportunities for growth, real wealth increases and tax revenues rise. I look forward to seeing the JOBS Act of 2010 succeed this session.

            Despite the promise contained in the JOBS Act and other bills to ease hurdles for small businesses, we are all having to tighten our belts in this tough economy. With the exception of a few recalcitrant legislators, the General Assembly is gladly adopting an additional six furlough days during the 2010 fiscal year. These additional days bring the total furlough days for the legislature to 11 for the year and together with an eight percent reduction in the budget for the General Assembly and the proposed salary reduction in HB 869, which presently sits on the general calendar. Other measures to curb state costs outside of the budget reductions, which will affect the amended FY2010 budget, include the controversial HB 908. This bill would temporarily suspend laws and requirements relating to school system spending controls, minimum classroom expenditures, class sizes, and salary schedules. I assure you that no one hears more about the problems in Georgia schools than I do, and my wife, a devoted Wayne County school teacher, does not mince words when it comes to the state and education. Despite the paramount importance of education, the bottom line is that the state has to cut the budget to meet declining revenues. HB 908 is not perfect, but it is a start for the debate about what changes are necessary for the educational spending in the state to reflect the cuts made elsewhere. In its current form, the bill simply provides school systems statewide with an exemption to several code sections relating to the above listed education areas. The bill is not a mandate for local school systems but instead provides local systems with greater flexibility. As of right now, HB 908 sits in the Education committee awaiting a vote.

            Lastly, with the change in House leadership came a change in House rules. Last Thursday, the House approved House Resolution 1168 and amended the chamber's rules. Two important changes were the elimination of the Hawk position, an office which allowed an ex officio vote on any committee. This position received widespread bipartisan criticism for concentrating power in House leadership and potentially undermining the democratic process. In keeping with his commitment to foster debate, Speaker Ralston has restricted the Rules committee's power to encumber legislation and its ability to substitute bills. In past sessions, bills could be encumbered by the Rules committee so as to restrict the process for amending legislation to certain methods. Some bills could only be amended by written proposals a certain time period before being called to the floor of the House, while others could not be amended once passed in Rules. This process created enormous frustration as bills could be altered significantly after being passed by their respective standing committees. Along with these measures, the rules changes allow for press to be on the floor of the House chamber after the close of the devotional to promote greater openness and accountability. I welcome these changes and look forward to the bipartisanship they will undoubtedly foster.

            As always, I am honored to represent the people of Brantley, Pierce, and Wayne counties, and I take this responsibility seriously. I welcome your thoughts and recommendations, and I know that with hard work and cooperation, we will persevere through the tough times ahead. Please visit www.markpwilliams.com, http://www.legis.state.ga.us/ , or contact my office at (404) 656-0188 for more information.