Stormwater schemes appetite outpaces revenue

Regrettably, my February 2008 comedic blog on Snellville’s implementation of a Stormwater Utility has come true and more horrific than I had anticipated. This horror story became worse at 7 p.m. on Friday night, June 29, when the City met to adopt a new budget fueling the monster’s appetite to greater heights of taxpayer carnage.

With the news from the U.S. Supreme Court this week that mandated health care coverage is indeed a tax, not a penalty or fee, we readily understand, as we always have, that mandated stormwater is also a tax, not a fee. So, the politicians that set up this segregated fund, established the tax, while promising not to raise your taxes treated you little better than the Feds. At least the Feds don’t threaten to lien your home, as the city does, if you fail to buy health insurance – at least not yet.

As anticipated at inception and suggested in my prior article on this subject, administrative costs are excessive, yet the City bureaucracy fails to efficiently execute the improvement program presented to justify the tax in the first place. The scare tactics used to justify this monstrosity packaged as an immediate need for $1.9 million in repairs have not been completed, nor has the City crumbled as a result. As feared, the program is growing as evident by the City's planned transfer of nearly $100,000 more from the General Fund in addition to the $530,000+ per year collected in the Stormwater Utility fund this year to feed the growing monster. [More reasonable heads prevailed and prevented the transfer, not the growth.]

Even more frightening is my prediction for where this monster will feed four years from now. I firmly believe the next sequel to this horror story will be a stand-alone Stormwater Department in the City with a Director level bureaucrat and full-time staff focused solely on spending those tax dollars funneled needlessly into their department. The Department will require more people, more benefits, more equipment, more fuel [Interestingly, staff nearly failed to budget fuel for the growth in equipment acquired this year.], more overhead, more office space, more tools, and much, much more of your money. Unfortunately, you’ll realize little difference in benefit as the result.

February 2008 article reprinted below:

SATURDAY, FEBRUARY 23, 2008

Stormwater scheme spreads to Snellville

Our city fathers (and mothers) are set to adopt a Stormwater Utility Ordinance on Monday, February 25, 2008 at 7:30 p.m. at City Hall. The consultant that prepared the research in support of the tax [I apologize, it is a fee. Well that certainly feels much better to my wallet.], will make a presentation at 5:30 p.m. in advance of the meeting.

I have many issues with these so-called stormwater fees and I've voiced my concerns to elected, staff, and consultants. Rather than rant on my philosophical objections to such a revenue scheme, I'll address a few issues specific to Snellville's proposal. My comments are in response to details contained in three documents available at the City of Snellville website titled Stormwater part 1, Stormwater part 2, and Stormwater part 3. They're quite similar to a horror movie with increasingly frightening sequels.

In Stormwater part 1, the monster first appears in the grotesque form of stormwater runoff. Our hero, the City responds, however, not by attacking runoff, rather by taxing [darn it, sorry again, levying a fee on] impervious surface (that's the roof above your head). What is really scary is that the fee is determined by adding up staff time (the City Manager will spend three times as much time on stormwater issues than the Public Works Director if you believe the research - I don't), administration and regulatory costs, operations and maintenance, and capital investment (that doesn't increase a cent from existing investment according to the initial proposal). Stormwater part 1 concludes with a most frightening scene claiming 55% of fees go to capital investment, operations and maintenance. The remaining 45% of fees going to overhead, regulatory compliance, and bureaucracy that sustains the creature to terrorize again.

And terrorize he does. In Stormwater part 2, we are frantically attempting to escape failing pipes, damaged catch basin lids, sinkholes, and illegal dumping. This monster we've created requires an estimated$1.9 million in immediate repair or replacement. See, isn't it getting scarier?

As our terrorizing trilogy ends, Stormwater part 3, scares the beejeebees out of me and I haven't gotten beyond the title yet, "Future SWMP Funding Strategy". This monster is planning future expenditures that will mandate future fee increases [I did not say tax increases - I'm catching on to the lingo now]. Most horrific is that the scheme raises only $271,000 more than current revenues to address the immediate needs as it dangerously replaces existing general fund investment in public works with the new stormwater utility fund thereby increasing the monster's appetite by over$400,000 for new general fund spending on as yet unaware victims.

One thing is for sure, this Stormwater Utility Ordinance is scary stuff and not for the "little ones."

2011 Session Highlights

Key bills passed this year:

I voted in support of each of these bills that passed and have been sent to the Governor for his signature.

HB 78 the State Budget adopted and signed by the Governor at approximately $18.1 billion is less than the previous year and at about 2001 spending levels.

HB 200, Anti-Human Trafficking is a cooperative effort of the legislature, Attorney General, and Georgia Commission on Family Violence to address a terrible scourge in our state and especially metro area.

HB 326, HOPE Scholarship preserves at 90% the tuition program for students maintaining a 3.0 GPA and establishes the new Zell Miller Scholarship at 100% tuition for exceptional students earning a 3.7 GPA.

HB 87, Illegal Immigration Reform requires employers to use the E-Verfiy system for new hires, provides law enforcement tools and assurances needed to combat illegal immigration, and preserves human dignity.

SB 36, Pill Mills - provides a Georgia drug registry to attack the exploding problem of prescription drug abuse.

SB 184, Last Hired - First Fired for Educators - prohibits local school systems from considering seniority as the only factor in determining terminations when a system is facing a reduction in work force.

SB 10, Sunday Sales permits local jurisdictions to hold a referendum on whether or not package sales of alcohol are allowed within their community.

HB 47, Insurance Across State Lines permits Georgia residents to purchase certain accident and health policies offered in other states.

HB 461, Health Insurance Compact allows Georgia to enter into agreements with other states to address the rising cost of healthcare.

What's Next?
Key bills pending for the 2012 Session:

I support each of these bills and will work for passage next year.

HB 33, Zero-Based Budgeting would provide that each state department or agency justify every expenditure once every six years. The House version also saves taxpayers approximately $1 million a year by combining the House and Senate Budget Offices.

HB 291, Property Tax Billing would provide that property taxes and only property taxes appear on your property tax bill. Approximately 25% of Georgia's counties include non-tax fees on property tax bills that result in the filing of erroneous tax returns, increased mortgage payments, and liens on homes.

HB 456, Government Accountability Act would provide for establishment of the Legislative Sunset Advisory Committee to review state agencies, policies, practices, and laws for continuation, modification, or abolishment.

Budget and Taxes

The legislature returns for the final three days Monday, Tuesday, and Thursday, April 11, 12, and 14 with significant issues before us.

Most important, House Bill 78, the Fiscal Year 2012 (FY 2012) state budget, directs state spending from July 1, 2011 through June 30, 2012 and totals $18.1 billion in state funds. While state funds have experienced a net increase of 2 percent as a result of improving economic conditions, total spending for FY 2012 has decreased by over 4 percent due to expiring federal stimulus funds. Not accounting for inflation, this puts us per capita below 2001 budget levels.

Finally, after thorough public input and numerous revisions, it appears the House will proceed with the first significant revision to the state's tax code in over 50 years. HB 388, based on recommendations made by The Special Council on Tax Reform, will begin, I repeat, begin, the process of moving Georgia's tax code away from taxing income and productivity and toward taxing consumption. It will NOT tax groceries, Girl Scout cookies, Boy Scout popcorn, veterinarian services, AAA memberships, haircuts, lawn care, or club memberships. [Thanks for your calls and emails about taxing services!]

HB 388 will reduce the state income tax rate from 6% to 4.6% - a 23% state income tax rate cut; increase the child dependent exemption from $3,000 to $5,300 per child for families with Georgia adjusted gross incomes (GAJI) up to $60,000; preserve itemized deductions of up to $30,000 for married filing joint households with GAJI up to $75,000 phasing out at GAJI over $177,000; and maintains the $35,000 per year retirement income exclusion. The overall income tax savings for Georgia's taxpayers will be $319 million in FY 2012.

To further improve Georgia's business competitiveness and encourage job creation, HB 388 eliminates, over a 3-year phase in beginning in 2013, the sales tax on energy used in manufacturing and consolidates all agricultural exemptions into a single exemption that will enhance fairness and equity. The value of these improvements is $110 million over three years.

To offset a portion of these tax cuts and exemptions, HB 388 streamlines a hodgepodge of state and local taxes and franchise fees on the retail sale of communications services with a single, flat 7% tax. Georgia will also join 44 other states that tax casual, person-to-person auto sales; however, sales among family members remain untaxed. HB 388 includes sales tax, as do at least 21 other states, on auto repair labor.

The net effect of HB 388 provides the citizens of Georgia with a $120 million tax cut in the first year of implementation.

I have listened to you carefully, the citizens of District 106, and I informed House leadership that I intended to vote NO on the previous versions of tax reform as the improvements did not result in significant, long-term savings for the average household in our area. I am so impressed with our Speaker and others in House leadership as they continued to work on the tax reform package to address your concerns and the concerns of other citizen's voiced through their Representatives.

After carefully reviewing the 71-page, HB 388 and running my own analysis, I believe this compromise tax reform package is a significant improvement over today's tax code and moves Georgia in a positive direction for both personal and business tax payers. Most importantly, I believe HB 388 is not simply "tax reform", but a "tax cut" and therefore, I intend to vote, as your Representative, in support of this thoroughly vetted legislation.

Capitol Update Week 9 - Budget, Insurance, Zero-Based Next

This week the House passed two key pieces of legislation. House Bill 47, that I co-signed, provides Georgians an option to purchase health insurance plans across state lines by allowing insurance companies licensed in Georgia to sell accident and health insurance policies that are approved for sale in other states. This simple change would create a more open insurance market with greater competition, ultimately resulting in less expensive health insurance options for Georgians.

The other key bill passed this week was House Bill 78, the Fiscal Year 2012 state budget. The 2012 Budget totals $18.1 billion and will direct spending from July 1, 2011 through June 30, 2012. While state funds increased 2 percent as a result of improving economic conditions, total spending for FY 2012 decreased by over 4 percent due to expiring federal stimulus funds. Our per capita spending, not adjusted for inflation, is below 2001 budget levels. We achieved these reductions by cutting spending an average of 7 percent in most state agencies and departments. Within the limited budget, however, we were able to provide some needed improvements that have statewide impact.

Using lottery funds, the House adjusted the Georgia Pre-K program so that it remains financially stable. Originally, the bi-partisan plan for preserving Pre-K would have reduced the program from six hours of daily instruction to just four hours of daily instruction. However, after consulting pre-K teachers and providers, a new decision was reached. Under this new plan, as implemented by HB 78, Georgia Pre-K will remain a full day, six hour instruction program. This ensures full nutritional and educational opportunities for 86,000 children next year.

Instead of reducing the number of daily hours, the new Pre-K plan will reduce the Pre-K year from 180 days to 160 days. Additionally, two more students will be added to each Pre-K class, moving the class size from 20 to 22. Since all Georgia Pre-K classes have a paraprofessional in the room, the student to teacher ratio will max out at 11 to 1. Further, Pre-K providers will receive 94 percent of the operating funds they currently receive, and Pre-K teachers will receive 90 percent of their current salaries.

Other noteworthy portions of the FY 2012 budget include restored Medicaid funding that allows low-income Georgians access to vision, dental, and podiatry services. We also restored funding for Alzheimer's Respite, Meals on Wheels, and Independent Care Waivers that serve aged, blind, and disabled Georgians. This budget also includes more than $19 million for economic development projects that will improve roads, bridges, and airports throughout the state as well as help bring jobs to out of work Georgians.

Next week our daily calendar is greatly expanded with 24 bills on the floor for consideration on Monday and a lengthy calendar expected for Crossover Day on Wednesday - Day 30.

As the end of session draws near, I encourage you to contact me with any comments or questions you have about the legislation being considered at the state capitol. You can reach me at my Capitol office at 404-656-7859 or on my cell at 404-966-5804 or via email at brett.harrell@house.ga.gov.

Thank you for allowing me to serve as your representative,

Brett Harrell