Special Edition
Governor Announces 25 Percent Spending Cuts
Greetings from the Gold Dome!
Governor Perdue announced today that all State departments and agencies must cut their spending by 25 percent. This announcement comes in light of the continuing decline in State revenues. Earlier this month, Governor Perdue announced the April revenue figures which showed revenue amounts for April 2009 (FY 2009) totaling $1,399,047,000 compared to $1,761,180,000 for April 2008 (FY 2008). This amount is a decrease of $362,133,000 or 20.6 percent in State revenues. In today's announcement, the Department of Education's K-12 programs will not be affected by this reduction requirement as federal stimulus money will ensure the needs of those programs.
The Department of Natural Resources announced more park closures this week. In addition, some parks will see a decrease in hours of operation and the Department also intends to lay off additional workers, including park rangers in an effort to reduce costs.
Also today in more local news, while Gwinnett County has been embroiled in a proposal to increase property taxes, DeKalb County announced an increase to property owners in the amount of 3.73% for unincorporated DeKalb County (which is the majority of the county). It seems that there is no good news regarding financial status. Newton County did not raise its millage rate this week after a large "tea party" was held, at the historic courthouse, where property owners forcefully opposed the increase; Commissioners for Newton County approved the County's Budget without the increase.
House Consumer Protection Investigation and Oversight Subcommittee
It was announced that there are many critical needs facing agriculture in Georgia with the need for more funding being first and foremost. The Department of Agriculture stated on Wednesday that it cannot make up needs with furloughs of employees. This shortfall issue is being reviewed by Reps. Levitas (D-Atlanta), Black (D-Valdosta), England (R-Auburn), and McCall (R-Elberton). The Department also announced that there will be no pay raise request, as the Department needs money to fund those jobs they have now. However, the Department will require staff to take another furlough day this fiscal year. Fourteen people lost their jobs in the last quarter. Retiring individuals are not being replaced; thus, those positions are being "frozen.
Regarding salmonella outbreaks, like the one linked to the South Georgia Plant operated by Peanut Corp. of America, Terry Coleman is overseeing that such activity does not happen again. Currently, there are 163 vacant positions within the Department. No purchases are being made for much needed vehicles. Currently, a 70 vehicle shortfall has forced employees to use personal cars for travel, which is essential to food inspectors. However, the use of these personal cars is costing the State $.58 per mile. The Department did obtain 28 cars from the Georgia Tollway Authority.
Homeland security continues to be a big problem for the Department as food sources and bottled water are both at risk of being violated or contaminated. Monies coming from the USDA are funneled through the State's university system requiring the Department to work closely with University Presidents on this issue.
The Department acknowledged that its employees are currently being cross-trained to do other jobs. Livestock specialists work sale barns, under the supervision of a federal employee, to monitor prices. Theses specialist know the market as well and look for diseased animals. In all, there are 22 livestock barns in Georgia.
The "Commodity Commission" language limited to ornamental plants was passed this Session. This language was included in SB 152 which became Act No. 100 on May 1, 2009.
However, the country of origin on labeling is another very important matter, which remains to be addressed.
SB 80, which also was passed this Session, addressed food labeling of products. Two of the major components of that Bill was defining the term "food processing plant" and permitting the Department of Agriculture inspectors free access to inspect any factory, warehouse, or establishment in which food is manufactured, processed, packed, or held for introduction into commerce and any vehicle being used to transport or hold such foods to commerce. Governor Perdue also signed this legislation into law as Act No. 98 on May 1, 2009.
Organic certification has also become an issue for Department due to the fact that organic markets are emerging all over the State. Kroger and other brands have started "fresh markets" which carry "Georgia Grown" products. Georgia farmers are also running into problems relating to federal certification of "organic" products. Federal requirements relating to "organic products" require that there be "crop rotation." Organic crops require crop rotation to meet a three-pronged test: 1) does it control pests; 2) does it help control erosion of soil; and 3) does it replenish soil nutrients. Non-genetically altered products are problematic though, especially when imported from China and the Middle East, as they use contaminated water for irrigation
Rep. Levitas (D-Atlanta) strongly advised the Department to not furlough food inspectors.
Please contact Stanley S. Jones, Jr., Helen Sloat or April Morgan at 404.322.6000 for further information on legislative happenings. Gold Dome Reports will be available daily during the Session at www.nelsonmullins.com.
The articles published in this newsletter are intended only to provide general information on the subjects covered. The contents should not be construed as legal advice or a legal opinion. Readers should consult with legal counsel to obtain specific legal advice based on particular situations.