The effect of the current budget crisis is nothing less than catastrophic. Since this “great recession” started, tax revenues have plummeted, state government has been working leaner and meaner every month and Georgia has all but exhausted its rainy day fund, which was recently as much as $1 billion. All departments have been furloughing employees, eliminating non-essential travel and other expenses, all while continuing to provide services to an ever-growing number of Georgians. As I write this article, revenues are still in a free-fall. The state spends 55 percent of its budget on education, with another 30 percent spent on health and human services and public safety. In all fairness, education, health care and public safety are the General Assembly’s top priorities. Nevertheless, the proposed cuts to these basic governmental services are becoming draconian. The revenue level in the state will not support these government functions, and we must begin to consider modest tax increases to make up the difference. By way of example, I serve on the Higher Education subcommittee of Appropriations. If no additional revenue is generated, we have to cut the budget for the University System of Georgia (the Board of Regents) by an additional $300+ million for fiscal year 2011. This is in addition to substantial cuts that were made in the supplemental budget for fiscal year 2010. Just to keep this in perspective, we are being asked to cut an amount of money from the Board of Regents’ appropriation that would be equal to eliminating 23 of the 35 universities in the state. Not cutting their budget some—eliminating them! We are already falling behind on higher education salaries, with many of our University of Georgia professors being recruited to schools in states that are willing to make the smart academic investment. Cuts of this magnitude cannot be accomplished by eliminating inefficiencies in the system, by furloughing teachers or by making fewer photocopies. In order to save education in Georgia, and to make the kind of investment in education that is necessary to be a leader in the Southeast, I believe we will have to supplement our education budget with modest tax increases. I have been a proponent—for years—of adding an additional dollar per pack of cigarettes, of adding an extra 1 percent to the income tax for households making over $400,000 per year, of eliminating the special-interest tax exemptions, and of modernizing our tax code to reflect today’s income and expense levels. I believe with modest changes to our tax structure, which will result in increased revenue of between $1 billion and $2 billion, we can significantly lessen the effects of the budget crisis on education. As bad as things feel now, remember that the $1 billion shortfall that we face for fiscal year 2011 will be a $2.6 billion shortfall for 2012 (no more stimulus dollars). Also, the problems that I have detailed for education can likewise be set forth for transportation, the failing water system infrastructure in the state (including the court ordered termination of the use of Lake Lanier as a drinking water reservoir), and a—shall we say—distressed mental health system. Georgia is at the crossroads of politics and leadership, and its success will, I believe, be determined by what we do in the next few months.

Doug McKillip

State Representative, District 115, Athens