Policy Update
Legislators Mum on 2006 Agenda
6/10/2005
On June 7, 2005, the Georgia Chamber of Commerce convened its Governmental Affairs Council at the King and Prince Hotel on St. Simons Island for its spring meeting.
A number of Legislators attended the event. Among the topics discussed were HB 48 (Governor Perdue’s ethics’ reform package); development plans before the Department of Economic Development; and a question/answer session with a Legislative Panel. By far, the highlight of the two-day event was the Legislative Panel discussion.
Legislators on the Panel included: Sen. Tim Golden (D-Valdosta); Sen. Judson Hill (R-Marietta); Sen. Preston Smith (R-Rome); Sen. Bill Stephens (R-Canton); Sen. Eric Johnson (R-Savannah); Sen. Jeff Chapman (R-Brunswick); Rep. Glenn Richardson (R-Hiram); Rep. Mark Burkhalter (R-Alpharetta); Rep. Jerry Keen (R-St. Simons Island); Rep. Earl Ehrhart (R-Powder Springs); Rep. Ben Harbin (R-Evans); Rep. Sharon Cooper (R-Marietta); Rep. Barry Fleming (R-Harlem); and Rep. Lynn Smith (R-Newnan).
Speaker Richardson noted, at the spring 2004 Governmental Affairs Council Meeting, he had predicted elections would yield a lead of 94 to 86 lead of Republicans over Democrats in the House. In fact, the election yielded 96 to 84.
Legislators still seem to be unwilling to publicly discuss an agenda for 2006.
Earl Rogers opened the question session with an inquiry as to whether Speaker Richardson worried about anything in particular during the Session. Speaker Richardson indicated he was too tired to worry, but he did wish to “not mess up” his leadership for the House Republicans.
Another question posed dealt with whether the Legislature again intended to complete its business prior to the close of the 40 days permitted by law. This year’s conclusion on Day 39 was a symbolic gesture according to Sen. Johnson. The intention was to get finished before April.
This year, Legislators stuck to a fairly regular schedule (beginning on Mondays at 1:00 and concluding on Fridays around noon) in an effort to be more family-friendly.
School funding was also a point of inquiry. Rep. Keen noted that the lawsuits regarding the rural versus the urban school systems are pending. Funding is the primary issue in the lawsuits. A new lawsuit has been filed in Florida and judgments have been rendered in actions pending in New York and Kansas.
If a mandate is issued on a funding formula by a court, then it will cause the General Assembly to convene a Special Session, which will place other programs needing State funds at risk. There are five hearings slated to hash out the funding issue beginning in August – the question is how to achieve a “fair and equal” funding basis.
One lobbyist asked if Legislators felt that there would be anything done on “judicial activism.” According to Sen. Smith, the recent appointment of Justice Harold Melton was a positive step. Supreme Court appointments were “appointments for life.” The Legislative branch does not need to be involved in partisan efforts within the judiciary branch.
Legislators were also asked about the Appropriations’ process implemented this year. Rep. Harbin, Chair of the House Appropriations Committee, fielded the question and stated that the Appropriations’ process moved relatively quickly this year. In fact, the Legislators’ schedule was based around the Budget. There are no plans to speed up the process in 2006.
Lobbyist Boyd Pettit inquired about the study committees which these panelists intend to participate over the interim.
Rep. Lynn Smith indicated that there were three natural resources-related Studies she would participate in over the interim. These include one dealing with salt-water intrusion; forestry; and a statewide water plan (for a plan to be put forth in 2008).
Rep. Cooper stated she intended to work on a housing study for the elderly. This is the Governor’s Conference to Rebalance Long-Term Care for Aging Citizens (those 65 plus). She also mentioned a Certificate of Need Study Committee.
Rep. Ehrhart stated he would be working on the Child Support Commission (where a development of tables would be initiated). Two such meetings of this Commission have already been held. Additionally, he plans to participate in the Study Committee on Prescription Drugs created in SB 140 (this will address drug formularies and use of prior-approval process). SB 140 Study will commence in July.
Rep. Keen mentioned that he would participate in an Educational Sales Tax Study Committee.
Rep. Burkhalter identified a liquid natural gas Study (which will look at receiving facilities of this gas).
Sen. Johnson mentioned that he would be participating in a Jasper Port Study (which could potentially take away business from the Savannah and Charleston Ports).
Sen. Stephens stated he would begin work on a Transportation Study looking at public-private initiatives. Additionally, he would participate in a tree ordinance Study as well as look at reverse condemnation. Sen. Stephens also mentioned healthcare spending and looking at the Certificate of Need process.
Sen. Smith will work on the Juvenile Code Re-Write Initiative as well as another Committee looking at Capital Punishment.
Sen. Judson Hill stated that one Study he would focus on during the interim would deal with emergency room standards (care and physicians). Additionally, he will participate in a Study looking at Insurance Reform (as proposed by Sen. Emanuel Jones).
He also will participate in an Emerging Technologies Committee looking at the impact on the venture capital market. He will also participate in the natural gas Study.
Sen. Chapman will work on a Study of courthouse security (in the wake of the Fulton County Superior Court killings) as well as participate in the Jasper Port and Salt Water Intrusion Studies.
Amy Hughes, with Memorial Health, inquired about the Legislature’s intent to look at a more formal approach to a Statewide Trauma Network. Ms. Hughes mentioned that if Georgia could dictate that technical schools had to be within a thirty-minute drive of all Georgians then surely it was worthy of addressing establishment of a trauma network to help Georgians get care within the “golden hour.”
Rep. Fleming stated that unfortunately “Rome” was not built in a day and that many protections are provided in SB 3 (the tort reform bill passed) for Emergency Rooms. Rep. Cooper indicated that looking at CON and passage of tort reform were two big steps – but healthcare is very complex.
Another inquiry dealt with open records and specifically HB 218. Sen. Johnson noted that conversations were ongoing with the media on this issue. The intent was to hold negotiations confidential but the media misinterpreted HB 218. Sen. Johnson noted he was not certain if there were enough votes to pass the bill next Session.
Andy Galloway, with the Medical Center of Central Georgia, inquired about the revitalization of Medicaid. With the expectation of the roll out of the Managed Care Initiative on Medicaid, it was a shock to providers to learn that Governor Perdue had “shopped” an 1115 waiver in Washington on the Medicaid program in an effort for Georgia to be more flexible in the services it provides.
Providers are somewhat torn as to the Governor’s intentions and find it difficult to see how both programs can co-exist. Sen. Johnson stated that he had not been briefed by Governor Perdue on the significant reforms, but the Medicaid system is going to crash or there will be a need to move towards socialized medicine.
Currently, there are no accountability provisions or incentives for persons who get care in the Medicaid program. Georgia is the fourteenth state to apply for this 1115 waiver; providers will thus need to cooperate or get left behind. Rep. Cooper noted that the Medicaid changes were about preventive medicine.
However, she mentioned too that dealing with the federal government was an arduous process, but this was Governor Perdue’s attempt for innovative ideas. Allowing Georgia to address issues pertaining to its sickest population and other areas of flexibility will be helpful.
Speaker Richardson noted that “necessity is the mother of invention” and that, currently, healthcare costs are driving the State’s Budget. The current Medicaid system is not working and this is an effort to help stem costs. Sen. Stephens stated that all the discussion had been about the symptoms and not the cause. Georgia is the eighth-most populated State (tying with New Jersey), and it was necessary to look at all the costs.
With the next elections, panelists were asked about Republicans which would be defending seats. Rep. Keen replied that the Republicans would sustain their numbers and will increase their number of House seats. He said the most important upcoming election will be the re-election of Governor Perdue.
There was also some talk about what would be done to help enhance revenue for transportation and what would be done specifically on the toll road initiative. SB 4 was one potential solution. Additionally, as for toll roads, there will be a review of what is being done in Texas and Florida. Increasing gasoline taxes will not happen.
As for eminent domain, while the media had a field day with the issue, this matter according to Sen. Stephens needs to be clarified.
Earl Rogers asked Rep. Fleming and Sen. Smith what types of hostile comments each had received relating to SB 3, tort reform. Both stated that they had heard from the Plaintiffs’ Bar. There might be some “tweaks” to SB 3 next Session.
The Plaintiffs’ Bar is still focused on ideological opposition to reform; however, tort reform has already passed. As for possible changes, those might deal with making clarifications to the offer of judgment portion of SB 3; looking at the ambiguity in the joint and several liability portion of the bill; and addressing the section on structured settlements and annuities.
Both Legislators indicated that each had paid costs – including threats made to their families. The Plaintiffs’ Bar also has some bills pending which may actually undermine SB 3. Additionally, the venue statute has already received a court challenge.
Speaker Richardson offered that the trial bar had spent millions on elections. He pointed specifically to Colorado’s use of 527s. There will be no “wedge” issue in Georgia. He also noted that the Republicans will outspend Democrats. Rep. Fleming mentioned too that Republican freshmen would be targeted in the next elections.
Michael Wardrip inquired about Georgia’s premium tax. There has been some discussion on whether to eliminate the State portion of this tax for an economic development issue. With little or no premium taxes, more insurers might be attracted to domicile in Georgia. Rep. Ehrhart mentioned that the legislation Mr. Wardrip referred to regarding the elimination of the premium taxes was an “ALEC” model bill.
Georgia has one of the highest premium taxes in the nation; Nebraska, for instance, only has a 1% premium tax. Rep. Harbin also mentioned that the repeal of the premium tax had been discussed previously, but half of the tax collected goes to municipalities. Georgia’s portion is approximately $400 million.
In closing remarks at the end of this meeting, Georgia Israel, CEO for Georgia Chamber of Commerce, discussed the cost shifting in healthcare. Georgia, like other states, will need to determine how to handle its healthcare needs.
One proposal is moving to a single payer system. However, Hawaii’s proposal for healthcare has not gone as well as hoped. Mr. Israel encouraged dialog on this issue.
Currently, the Georgia Chamber of Commerce is working with the Georgia Public Policy Foundation to begin a “conversation” on healthcare in the fall. Mr. Israel asked that folks provide feedback to the Georgia Chamber of Commerce on what should be included in the dialog, who should participate, and what proposals folks have on how healthcare should be financed.
Please contact Stanley S. Jones, Jr. Jeffrey C. Baxter or Helen Sloat at 404-817-6000 for further information on legislative happenings.