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Capitol Update – 2019 Week 2Week two of the General Assembly did not burn any of the 40 legislative days, but instead was devoted to the presentation of Governor Kemp’s FY2019 Amended Budget and his FY2020 Proposed Budget. Each of the Governor’s Department Heads and Commissioners offered an abbreviated preview of their budgets to a joint House Senate Committee. Full budget presentations to the committees of jurisdiction will occur this week where legislators will have their opportunity to weigh in on the Governor’s proposed changes.The Amended FY19 Budget showed an increase of $707M in revenue bringing the total FY19 Budget to $26.9B. The FY20 Budget projects revenue of $27.544B. Here is a link to the 392 page budget.Regardless of whether your business is focused on buildings, bridges, roads or water projects, we believe you will like what is in the Budget and the GO Bonds package. Together, the Amended FY19 and the Proposed FY20 budgets continue to make significant capital investments in Georgia’s infrastructure. As the recently released ASCE Infrastructure Report Card noted when assigning Georgia a (“C+”), up from a (“C”) in 2014, “The following state’s transportation categories, bridges (“C+”), roads (“C+”), and transit (“D+”), saw grade increases when compared to the 2014 Report Card. These improving grades were partially due to significant new investments such as?HB 170,?as well as improvements to regional cooperation, such as the Atlantic Transit Link Authority (ATL)…The grade in the ports category (“B-”) also increased, in part thanks to additional funding for the ambitious and forward-thinking Savannah Harbor Expansion Project.” Highlights from FY19 Amended Budget:EDUCATED GEORGIA:TCSG: $35M to Chattahoochee Tech to establish an Aviation Academy at the Paulding AirportGROWING GEORGIA:DCA:$500K for ATL operationsDNR:$14.3M for statewide water planning$5.6M Hazardous Waste Cleanup statewideMOBILE GEORGIA:DOT:As a result of HB170, Motor Fuel Funds were up an additional $65M and Hotel/Motel Fees were up $4.37M. These increases in revenue will allow for an additional $16.5M for Capital Maintenance, $6.49 for LMIG and $33M for Routine MaintenanceHighlights from FY20 Proposed Budget and GO Bonds Package:EDUCATED GEORGIA:K-12:$271M in Bonds for school construction. $2.8M for school improvementsUniversity:$202.8M in Bonds for new capital projects and repairsTCSG:$105.8M in Bonds for new capital projectsHEALTHY GEORGIA:Public Health:$2.3M in Bonds for repairs at Georgia Public Health Labs in Decatur and WaycrossVeterans Svs:$2.1M in Bonds for improvements at Veterans Nursing Home in MilledgevilleSAFE GEORGIA:Corrections:$13M in Bonds for improvements at Metro Reentry Facility in Atlanta$10.4M in Bonds for the Augusta State Medical PrisonDOD:$14.1M in Bonds to construct Fort Gordon Youth Challenge AcademyPublic Safety:$1.2M in Bonds to replace Post 33 in Milledgeville$2.9M in Bonds to replace Public Safety headquarters$2.57M to repair Public Safety Training CenterGROWING GEORGIA:Agriculture:$1.7M to repair Georgia National FairgroundsForestry:$1.57M to renovate District OfficesDCA:$2.5M to fund ATL operations$9.5M in Bonds for water supply (distributed through Georgia Environmental Finance Authority, GEFA)GWCC:$22M to complete the 2nd phase of constructing the pedestrian mall and bus depotDNR:$17M for facility improvements statewideMOBILE GEORGIA:DOT:$101M for transportation projects from motor fuel tax and hotel/motel fee$100M in Bonds for bridges As Sully mentioned in his Week 1 update, the Governor’s Budget also includes a $3,000 raise for teachers, fully funding QBE and a 2% raise for all qualified state employees. The Week AheadMonday, January 29 – Legislative Day 5: House Appropriations Subcommittee on General Government will hear the Department of Natural Resources Budget PresentationHouse Economic Development Committee will hear HB 22 and HB 23 which would expand eligible providers of broadband services to rural Georgia. Tuesday, January 29 – Legislative Day 6: House Appropriations Subcommittee on Economic Development will hear from GDEcD, Dept. of Agriculture and Dept. of Community AffairsJoint House and Senate Transportation Hearing for the 10 year plan presentation by GDOT.Wednesday, January 30 – Legislative Day 7:House Appropriations Subcommittee on TransportationLegislation that ACEC is actively working on:Professional Licensing Reform – ACEC is working with Rep. Brett Harrell (R-Snellville) to propose a Constitutional Amendment requiring that Professional Licensing Fees be returned to the Professional Licensing Division of the Secretary of State’s Office (PLD) to be spent on licensing, inspecting and enforcement for each profession. This Constitutional Amendment would not only apply to the 41 professions currently under the Secretary of State, but would also apply to the professions who have left the Secretary Of State’s Office and are housed under different agencies such as the Georgia Composite Medical Board, Board of Accounting among others. In FY19, fees generated by the PLD were $18M but only $8M was returned to the PLD for servicing, staffing and enforcement for each profession. Third Party Plan Review and Inspection – This issue was brought up last legislative session as SB 2. While much progress was made, it was unable to make it across the finish line. ACEC is working with AGC to craft a bill that will satisfy the concerns of GMA and ACCG on issues such as insurance thresholds, prequalification of private professionals and ability to randomly audit private professionals work.Procurement Registry – HB 489, passed last year, requires local governments to post on the state website for any procurement of goods or services valued at $10K or higher. We are working with AGC, GMA and ACCG to raise the threshold to $100K. Other items of interest:With the passage of HB 930 last session, all metro counties can decide to hold a referendum to allow for a 1 percent sales tax to fund transit. Gwinnett County will be the first County to have their referendum which is scheduled for March 19th. The passage of the referendum is crucial to the region not only for transportation expansion and regional cooperation, but it will send a message to Cobb County and North Fulton about voter appetites for transit expansion. If the Gwinnett referendum fails, Cobb and North Fulton would be unlikely to even schedule a vote. From a January 24th AJC article, “If the referendum is approved, that contract would be ratified and Gwinnett residents would pay a new 1 percent sales tax until 2057 to pay for transit improvements. Those improvements — which would follow a plan previously adopted by county leaders — would include an extension of MARTA’s passenger rail system from Doraville into the Norcross area; expanded local bus service; and several “bus rapid transit” lines, among other offerings.”“Go Gwinnett” is the pro-transit committee established to advocate for the passage of the referendum. Sully is on the committee and I urge you to reach out if your business is interested in expanded transit and economic development opportunities. ................
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