Prospect of layoffs sends a shudder through rural Georgia
The anti-tax rally at the state Capitol had just finished.
Grover Norquist, who has made a career out of campaigning for stripped-down government, had come from Washington to warn state lawmakers that they must shun any talk of tax increases.
The thoroughly Republican crowd cheered, then scattered.
State Rep. Chuck Sims, who comes from a speck of a community named Ambrose down in south Georgia, was at a nearby snack bar, fortifying himself. He is a funeral director, conservative and Republican.
State Rep. Chuck Sims (R-Ambrose)
But at the mention of the anti-tax rally, Sims rolled his eyes and invited a reporter to come talk in his office.
GOP lawmakers are struggling to cobble together a budget that takes effect in July. With tax revenues from jobless Georgians plunging, legislators need to fill a $1 billion hole. Or maybe a $2 billion hole.
Lawmakers are currently planning $100 million in increased charges for government services — inspections or licenses — that haven’t been updated for decades.
But two Republicans want the Legislature to abandon the semantic games, and have called for outright tax increases. One is state Rep. Ron Stephens of Savannah, who says a $1-a-pack increase in the tax on cigarettes would raise $350 million annually.
Sims is the other. “We’ve got enough heart and enough hide to say, ‘Listen. This is what we’ve got to do,’” he said.
But Sims is thinking bigger. He wants to repeal the state’s 14-year-old exemption of food from the sales tax.
A food tax would generate as much as $1 billion a year. Refunds could be offered to the elderly or the poor. He’s willing to make the tax temporary — just long enough to get the state through the Great Recession.
“There would be no furloughs for teachers, there would be no statewide furloughs for workers. We wouldn’t have to close the crime labs. We wouldn’t have to close state patrol posts. Those are core missions. We wouldn’t have to go up on tuition, either,” Sims said.
The House caucus has refused to entertain either tax increase. But Sims’ bill in particular, HB 67, underscores the behind-the-scenes dynamic that is shaping budget discussions.
The tension is between suburban Republicans and their rural counterparts. And the topic is jobs.
From outside the Capitol, GOP candidate for governor Karen Handel has called for the layoff of nearly 8,000 state workers. Most lawmakers aren’t ready to go that far. Yet they have used the word “massive” to describe the downsizing that will be needed.
But when layoffs come, rural Georgia — where government employment plays a larger part in local economies — is likely to suffer far more than places like suburban Atlanta.
“All these jobs they’re talking about cutting? That’s somebody’s livelihood out where I live,” Sims said. “There ain’t another job out there, okay? You cut that corrections worker in my district — he doesn’t have another opportunity.”
Sims said he understands that some layoffs of state workers will be necessary. But he can’t support wholesale reductions.
“I can’t vote for a budget that would do that. I just can’t. Not going to, and I’ve told them that. I can’t go home and look at my people,” Sims said. “Because they’re not going to knock off the folks up here [in Atlanta] making salaries above $70,000. They’re going to get my folks down there, making $35,000 and $25,000.”
Doug Bachtel at the University of Georgia, one of the state’s leading demographers, faxed over some startling statistics on Wednesday afternoon.
In suburban counties such as Cobb, Gwinnett and DeKalb, roughly 10 percent of the workforce has a government job — teaching school, patrolling streets, pushing paper.
In Coffee County, where Sims lives, nearly 20 percent depend on state, county or city jobs for salaries, insurance and pensions. In Hancock County, in east Georgia, nearly two-thirds of the workforce receives a government paycheck.
“They have no alternative,” Bachtel said. The farther from Atlanta, the greater the dependence on government jobs. South Georgia is more government-dependent than north Georgia.
Republicans in Atlanta and Washington say that the job of government in the current downturn is to get out of the way — or even to shrink, so as to lessen the burden it imposes on taxpayers.
But it’s worth remembering that there are other opinions among GOP voters, opinions that sometimes sound Rooseveltian.
“If we can create new jobs or hold these jobs — hold a position, keep the thing rolling, and get people through a bad time,” Sims said, “it’s what government’s been doing all along.”
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107 comments Add your comment
What happened to?
March 10th, 2010
6:38 pm
What happened to the idea that the people close to retirement in the state go ahead and give them early retirement? It make too much sense to the GOVT?
Bo Doodley
March 10th, 2010
6:43 pm
I’d be more than willing for a temporary repeal of the food exemption, with the caveat that it will be re-instated after 1-2 years. BUT, I would also expect the state to spend it responsibly, which we all know wouldn’t happen.
OTP
March 10th, 2010
6:55 pm
For once a Republican in the Georgia legislature is saying something that makes sense and I can agree with. These legislators all talk about these being tough times and everyone has to tighten their belts and it’s going to be painful, etc. What they really mean is that some people will have to suffer – lose their jobs and possibly their homes, so that our legislators can all get re-elected because they didn’t raise taxes.
Cliff
March 10th, 2010
7:19 pm
This could present an interesting realignment where the urban Democrats join with rural Republicans for a majority on an issue. That doesn’t seem to happen very often in Georgia politics.
Kimball
March 10th, 2010
7:45 pm
I think perhaps the 11 mill would be best spent determining who is sleeping with whom, and getting new assignments at the Georgia Public Service Commission… Aren’t you depending on “government jobs” if you will do what is necessary to keep your position …. i.e. promote your lover to keep supervisory postition?
Rural Georgian
March 10th, 2010
7:50 pm
I like the way Rep. Sims is thinking. I’m as conservative as they come. But we’ve cut the budget and taxes enough. It is time to look seriously at reinstating the tax on groceries, axing the sales tax holidays, and raising tax on cigarettes. Heck – throw in a tax on booze as well.
twinkletoes
March 10th, 2010
7:55 pm
I agree that I could tolerate reinstating the food tax. IF they also write it as a sunset law. Say for 2 years so that the government doesn’t get used to that income and we can all then have the relief of no taxes on our edibles!
Grover Norquist is simply wrong. Period.
March 10th, 2010
7:59 pm
Of all the dangerous ideas and wrongheaded Washington insiders, Grover Norquist clearly takes the cake. I know he’s from Washington and he’s here to “help” (I’ve heard that scary statement before) but the state government is NOTHING like the federal government.
Our spending here has been cut to the bone and our revenue is down to dangerously low levels. Mr. Norquist, please take your carpet bag back to whence you came (meanwhile we have our won scalawags with which deal).
Grover Norquist is simply wrong. Period.
March 10th, 2010
8:00 pm
that should read, our “own” scalawags.
Not in TRS
March 10th, 2010
8:03 pm
In regards to early retirement. Employees of the Board of Regents have sought to have a change in their retirement plan that allows them to transfer (at their own cost) from the Optional Retirement Plan (ORP) to State Teachers (TRS). For employees in TRS, the State could pass laws that would allow for early retirement. For those in ORP, that is not possible.
Why? Ask your representatives. As stated, this was a bill last year that didn’t go past committee. So, I will probably work until I am 74 (30 more years). Rather, if I was able to buy out my time in TRS and the State was willing to pitch in a year or two of incentive for early retirement, I’d be gone in 8-9 more years.
What’s the incentive? Age and guaranteed annuity income.
The finances sound crazy. But, I truly believe that getting State employees into TRS (at their own expense) is probably cheaper than making them work until they know they can retire financially secure. In my case, the difference is about 20 years.
n
March 10th, 2010
8:10 pm
The idealogues in the legislature want to demolish state government. They hate it. This is their big chance to finish sending Georgia down the tubes. They get to punish all their favorite victims in a big way: public education, DFACS, mental health, the courts and public defenders, etc., etc.
All the disenfranchised, demoralized, demonized, laid-off state employees need to VOTE THEM OUT OF OFFICE NEXT ELECTION. Let them earn an honest living outside of government, which they profess to despise anyway. Many/most of them sought public (government) office just to line their pockets at taxpayer expense.
Ronnie
March 10th, 2010
8:10 pm
Cut all gubment jobs including the politicians and the problem will be solved.
catlady
March 10th, 2010
8:14 pm
Ask Doug to give you the numbers including those who get any federal or state transfer payments. In our county, due in part to the elderly Floridiots who come here because it is peaceful (or was till they moved here).
catlady
March 10th, 2010
8:15 pm
In some ways governmental transfer payments function as government jobs.
n
March 10th, 2010
8:15 pm
Make that “ideologues”
Mid Ga Retiree
March 10th, 2010
8:20 pm
It’s a pity that Rep. Sims doesn’t get camera time to say the same, common-sense, things he told the Political Insider. I’m also a conservative Republican, and I think that a temporary suspension of sales tax exemptions for food, school tax holidays, increases on cigarette taxes, and the ability for local communities to decide on Sunday liquor sales, are just good, common sense, ideas that might just help the State get through this down-turn. Rep. Sims is one of the few that seems to have guts enough to face facts.
retiredds
March 10th, 2010
8:23 pm
I don’t know if Karen Handel will read this, but Jim maybe you could pass it on to her. If the state lays off 8,000 workers and let’s say they earn $30,000 a year that’s an expense to the state of $240 million. Lets say that these folks are in the 20% tax bracket. That means $48 million of taxes is being forgone. Let’s say that the 8,000 folks apply and are granted unemployment insurance. I don’t know what that cost would be but it would be on top of the loss of tax revenue. So now you have taken 8,000 tax paying citizens off the tax rolls and moved them over to the unemployment insurance rolls, a tax payer expense. I wonder if she has done the math. Maybe she could look at a less tax payer onerous solution. It seems that some under the dome are beginning to figure this equation out. As a matter of fact it could just be like falling dominoes, push the first domino and the rest begin to fall and where does it stop? How many more layoffs would it take? How many more can the state afford to move to the unemployment insurance rolls?
Tax bibles
March 10th, 2010
8:34 pm
Why not tax bibles? Double on Sunday?
norman bates
March 10th, 2010
8:34 pm
Finally, a republican I like.
Jim Jr
March 10th, 2010
8:49 pm
Anyone who has had to go to a state office has witnessed the over abundance of workers with nothing to do but watch another worker work (supervise). Cut 1/2 of all state workes and tell the remaing 1/2 to start earning their pay. Better service AND no budge problem.
Mike Smith
March 10th, 2010
9:04 pm
Not many folks are dying from reading their Bibles too much.
blah
March 10th, 2010
9:07 pm
Ronnie and especially Jim Jr. Try WORKING in a state office and serving the state of Georgia. Get back to me in 6 mo and tell me how easy your life is. BS.
KP
March 10th, 2010
9:10 pm
This is one of the most reasonable, common sense solution, I’ve heard come out of either party to help us through our budget crisis. Especially if they make it temporary by repealing the exemption for two years. I will send Rep. Sims an E-mail to let him know that I support his proposal, and I will send an e-mail to my representative to lend their support to Rep. Sims
Thomas
March 10th, 2010
9:11 pm
Cut spending, Reduce waste, Reward ideas! Oh no it is “Government” trying to fix it. We are in store for trouble.
ConservoBerry
March 10th, 2010
9:24 pm
I consider myself a conservative, but I’ve been telling anyone who would listen that it’s time for the cowards under the gold dome to grow up and do what’s reasonable – increase tax revenue. A one cent sales tax increase would be a “user” tax and fairly distributed to all. Or I could live with a temporary tax on food; however, I think I’d modify it. Tax all non-staple goods. I think by taxing soda pop, coffee, Little Debbie snack cakes, any type of food that could remotely be considered “junk food” would probably increase revenues enough. That way the elderly and the poor wouldn’t take such a beating by paying tax on macaroni, potatoes, bread, and those items needed to exist.
Chuckie D
March 10th, 2010
9:25 pm
Hey State Workers close to retirement:
Get a grip—tell me what private sector company offers what, 60% of your earnings as retirement after 30 years. And for the teachers in the crowd: what private sector company offers the number of days off during the course of the year that you enjoy? I know, I’ve heard for years that teachers don’t earn as much as those in the private sector? I think that is a bunch of “Hooey”—when we have “Graduation Coaches” in middle schools making $55K and principals much more, you tell me how you come to that conclusion. Also, with the “Zero Tolerance” regulations, you have principals/administrators that can’t/or won’t use common, logical thinking processes—-Remember the case of the “Tweety Bird keychain” or when little Johnny draws a picture of his uncle in his US Army uniform holding a rifle and Lil Johnny is kicked out of schoolf for the “Zero Weapons” policy? ~~~~~~Give me a break~~~~~~
Gator Nation
March 10th, 2010
9:32 pm
I like what Rural Georgian said.
Yes to short term food tax.
No to tax holidays
Yes to cigarette tax
Yes to booze tax….if necessary
Why not a casino at the underground atlanta site? Jobs and tax revenue a double win…..and please spare the crime argument….its unproven.
blah
March 10th, 2010
9:44 pm
Chuckie D, challenge extends to you too. Just try doing the job that teachers and educators do, that is if you have the education to back it up. Aside from that your tirade is filled with tired stereotypes with little or no basis in reality. Boo-hoo to you poo-poo.
smart move
March 10th, 2010
9:48 pm
Rural Georgian got it right: “It is time to look seriously at reinstating the tax on groceries, axing the sales tax holidays, and raising tax on cigarettes. Heck – throw in a tax on booze as well.”
The negative externalities of laying off 8,000 or 5,000 or 3,000 state employees – many of whom will likely be unemployed for 6 mo. to a 1 yr. – will create further downward pressure on tax revenues, and perpetuate a bad situation.
Sims and Stephens have the gumption to call it “like it is” and I believe their bravery will be rewarded in November. They recognize that rural Georgians are not (currently) getting a fair shake in this debate.
TLC
March 10th, 2010
9:51 pm
I have worked for corrections for 20 years. Our dept has closed over 20 facilities (prisons, pdc’s, etc.) the last two years. Furloughs have also been enforced with more to come. The bill has now come due on the 7 deadly sins, 3 strikes and your out tougher sentencing guidelines set forth over 10 years ago. Our dept has been cut to the bare bone, but also has been very proactive in cutting cost. IT’s time to raise taxes to fix the problems, as bad as I hate to say it. We need to start calling for the “fair tax”, so ALL will pay their fair share.
Red
March 10th, 2010
9:54 pm
So in order to protect some state jobs we want to make already tight budgets in homes even tighter. People barely have enough money as it is and the government wants to take more of your hard earned and thin money to ensure government can dish out some jobs, keep a building open, have a truck driving, etc. So the few benefit from the hardships of the many.
WAW
March 10th, 2010
9:55 pm
Reading your responses about the Rep. Sims article, and today especially, I can’t help but wonder, “What would Mr. Tom do”. I can’t help but believe that Rep. Sims wouldn’t have any problem getting his bill to the floor because man like Tom Murphy had been at this state government business long enough to know that platitudes don’t take care of people. Another person that has the experience to do something is Roy Barnes but he and Mr Tom were too … what was that term? I’m sure we are not seeing the results of the white washing… or are we?
ScienceTeacher671
March 10th, 2010
9:55 pm
Chuckie D. and all your friends who think teachers have it made…why aren’t you teachers too?
Oh, I bet you’re one those people who, when you find out what I do, says, “Oh, I could NEVER do that!” or “I don’t know how you do that. I couldn’t put up with all them bad kids!”
Scott
March 10th, 2010
9:59 pm
They wont hear of it because they are too busy passing laws that say your neighbours can have chickens and goats in the back yard…talk about a stereotype
The Mid-South Philosopher
March 10th, 2010
10:23 pm
These idiot politicians (look up the word; it doesn’t mean what you think) have gotten themselves into this mess. They have played the game for too many years and now to paraphrase the infamous Rev. Wright…the politicians’s chickens have come home to roost! I love to see them squirm. Don’t reelect anyone!
bart
March 10th, 2010
10:30 pm
Sims is exhibiting leadership which is something that is sadly lacking in our legislature.
td
March 10th, 2010
10:37 pm
I am a conservative and a state employee and I have witnessed 25 to 35% real cutes in my agency. It is time to raise some revenue. The short term reestablishment of the grocery tax. We also need to increase user fees and increase the tax on alcohol.
lem1970
March 10th, 2010
11:34 pm
The State of Georgia work force is bloated. Look at the number of employees per capita and it shows we are on the high side. Unfortunately, there are some Departments understaffed and some departments that should be eliminated. When 2/3 of workers in a county are on public payroll, there is a problem. Why not merge some of the smaller counties and eliminate almost half of the combined workforce. What have these rural counties done to bring in private jobs? Add taxes to processed foods (cakes, cookies, heat to serve, etc) but don’t tax my base food items. The problem with early retirement is the unfunded costs are huge because of the liberal retirement system. Increase the class size to 30 and get rid of the burdensome paperwork the usurps teaching time and quality, ie let em teach. The politicians always want to cut things that the voters say “NO” and leave their pet projects to squander needed tax funds.
Foghorn Langhorn
March 11th, 2010
12:16 am
And I thought it was only the thugs and welfare mothers in Atlanta and Clayton on the government teat. I do declare!
disgusted
March 11th, 2010
12:43 am
People that now earn what is considered the median average salary, which is less than $50,000 a year, are already struggling. Less than 25% of these people smoke. I have no idea how many drink. But the point is that a so-called sin tax isn’t going to get it done. because the people who smoke and drink will give that up when they can’t afford food, and on that salary groceries are already getting tough to buy. The only way to raise real revenue from taxes, and do it in a way that everyone shares the load is the Fair Tax way that applies to every citizen of the state. Do that, and people who share the common burden will b able to see each other through this. If you try to save the entire state on the backs of a small percentage of smokers and drinkers, you’re not going to get enough “dirt in the hole.”
uskickback
March 11th, 2010
1:03 am
1-stop in the inflow of non-working people moving to the area.They have food stamps and medicaid before they cross the state line.Taxes,there’s always the nail salons,booze,how about a 2 kid limit for welfare recipients,not fair us working taxpayers have to take care of all those little kids.
functioning government
March 11th, 2010
2:51 am
retireddds…..What kind of logic are you using….if you cut employees you lose their tax base…
This is reverse logic at its finest…lets start with the basic economics…
If a government or business has 1 million dollars in operating base….that number reflects the amount of money they have in reciepts for future work..this same company has 100 employees…
with me so far……now using the state numbers from 2008 to 2009 …revenues drop by 35%….now from 2009 to 2010 the revenue drops 10 % more…..now the amount of funds available are 550,000 dollars…..you have the same amount of people working with 45 percent less product to produce….
In the real world what happens…..you would cut staffing and any thing related to cost for employees.
Employees cost each company…or government approximated 2.5 times their salary…those are facts….
Who in their right mind would keep someone employeed because the reduction of the their tax contribution will hurt the community or state.. that is so backwards…
This is the logical self centered thinking of a Government employee….
as said by many people in many blogs…that job is owned by the tax payers…and that job is not the employees……
Do you realize without an infux of money from borrowed future revenues pullled out of the thin air in D.C. in 2009 that was used to keep government employees on the state dime these jobs would have been cut….
Go ahead and return any tax you want …..however if the people of Ga. and the Citizens who are primarily responsible for supporting the tax codes of the State and Federal Govt willl soon find other ways to remove themselves from the responsiblity of providing their money to the Government without a fight….
Richard Bagge
March 11th, 2010
4:51 am
Ronnie, Jim Jr and the rest of the Neal Boortz crowd really need to get out of the suburbs and spend a weekday in a rural Georgia community. Just go down to Macon – where it ain’t pretty either – and then drive forty minutes in any direction but north. You’ll be in a community where practically half the workforce has a government job because **there are no other jobs available**. This is the fact that the libertarian anti-tax crowd has been blind to. You can’t say “move to where the jobs are” when the jobs have already moved to India.
As for raising revenue, just double the cigarette and booze taxes, and put a nickel on every 20 ounce bottle of soda. You’ll turn every RaceTrac in the suburbs into gigantic revenue machines.
mike
March 11th, 2010
4:58 am
This is getting good. You got the conservative retards blaming poor people, thugs and whomever else they can think of for the economy. You got some tea baggers and other conservatives finally realizing that maybe it might be necessary to raise taxes. That will be fight within itself. Maybe the next time I drive to Florida I can speed right through those hick towns since with a lack of funds maybe those city and county police won’t be out there patrolling their 1/4 mile of I-75.
mitch
March 11th, 2010
6:19 am
No new taxes until they fix the problems of current law such as proper collection from all businesses of sales taxes and correction of fees that have not been adjusted in years.
Ocean of Wisdom
March 11th, 2010
7:00 am
TAXING Churches and Synagogues would be a great way to raise a LOT of TAX money!
Retired State Employeed
March 11th, 2010
7:01 am
I agree wholeheartedly with removing the exemption on food sales tax. We got along just fine paying the tax years before and now in times like these we can get along with it again. This is THE only fair way to help balance the budget – do something that hits everyone – not just property owners. Our property taxes in our home county went up 50% – yes 50% this year. And, to anyone who still thinks working for the state is a “pie job”, I dare you to try to work in a county DFCS office for one month. You would sink. Their caseloads are totally unmanageable. Their phones are continuously ringing off the hook. They are putting in 12 hour days (not known to our legislators or higher ups in Atlanta as they are “forbidden” to do this) in order to get the work done. And – repeal the sales tax holiday. What a crock when the state is sinking financially to still have this in place. When you lay off or furlough state workers, dont forget that they are taxpayers, too and you lose the revenue from them.
state employee
March 11th, 2010
7:22 am
I agree with the poster about the ripple effects of laying off 8,000 state employees. Also see the article in the AJC about how in the rural areas up to 2/3 depend on the state job because there are no other jobs. I am a state employee who was eligible to retire a year and a-half ago, but I have a large house payment and a husband who has not been able to find a job in over a year, so I continue to work. After talking with some of my co-workers at or near retirement, I believe at least 10% would gladly accept early retirement with an incentive attached. Myself included. As Legislator Harp said, this is much more humane than more furloughs and layoffs.
Ken Thompson
March 11th, 2010
7:33 am
To “Not in TRS”, You should only be able to buy in if you pay your contribution, the states contribution and all the money that it would have earned during the time it would have been invested if you had made the smart choice in the first place
dmac
March 11th, 2010
7:40 am
Sims is right, we should just admit that we are going to have to raise taxes. However, it is a really bad idea to tax food. Everyone has to eat. Lower and middle income people spend a sizeable percentage of their incomes feeding their families. People in the higher income brackets don’t spend nearly as much (as a percentage of their income) on food. As such, a tax on food causes a greater burden on low and moderate income families.
Yes, raise taxes. Raise them on the people who can afford to pay a little more. State Senator Nan Orrock has proposed a 1% increase in the state income tax for those making over $400,000 per year. Heck, why not lower the threshold to $100,000 or $200,000?