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| | | Cagle (click for larger version) | |
October 01, 2008
www.northfulton.com
ALPHARETTA - Georgia's cities and counties need to worry more about lower property values and foreclosures cutting into their budgets than the freezing of a fund that reimburses counties for tax relief provided by the state, said Lt. Gov. Casey Cagle.
A $1.6 billion state budget shortfall, which Cagle told Alpharetta Rotarians Sept. 26 might grow to $2 billion or more, prompted Gov. Sonny Perdue to freeze funds designated in the Homeowners Tax Relief Act.
Alpharetta Councilman John Monson had asked Cagle if he thought legislators would be able to follow through on their promise to return funding for the tax relief in the next legislative session.
The lieutenant governor said property taxes have been rising faster than inflation.
"Now this market we are in is about to correct that," he said.
Cagle said he is committed to support funding the tax relief act, but it is going to be very difficult. Every state agency will have to make major cuts because of the revenue deficit.
"Many of you are in the real estate market and you have seen the tremendous decline that we have seen. The spigot has been turned off," Cagle said. "Most people don't realize that construction has fueled this economy for so long."
The economic challenges being discussed in Washington, including failures of banks and bailouts, will have a tremendous impact on the economy "like never seen before," Cagle said.
"We've got to correct this marketplace. I don't see this as just an economic bailout from Washington," he said.
Georgia has its own work to do. Cagle sees inefficiencies in state government, and believes the Department of Transportation could see efficiencies increase by 30 percent or more.
An example he gave was construction of the fifth runway at Hartsfield-Jackson Airport. The DOT prepared a cost estimate deemed too high by airport leaders, who put the runway construction out to bid. The runway cost $75 million less than the DOT estimate, and was completed months ahead of schedule.
Cagle also stressed metro Atlanta's infamous traffic — the second worst congestion problem in the country — is costing Georgia money and jobs.
"We cannot afford to put our heads in the sand when it comes to transportation," he said.
Cagle wants the state to use design-build contracts that he said would prevent cost overruns. Other techniques, such as reversing lanes on Ga. 400 during peak times, could move traffic faster. When most traffic is southbound in the morning, some northbound lanes could be reversed for southbound traffic, he said.
He also decried the delay of action on public-private initiatives submitted to the state. A "hot lane" project for Ga. 400 has been on the table for four or five years with no action by the state.
With the need for 4,000 lane miles, a lot of infrastructure needs to be built, Cagle said.
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