The economy was the talk of the hour at the Capitol Connection legislative breakfast at GMA’s Mayors’ Day, where Governor Nathan Deal, Lt. Governor Casey Cagle and House Speaker David Ralston all discussed the state’s economic future. Deal, in particular, talked about the state’s need to become more competitive and his proposal to eliminate the sales tax on energy used in manufacturing. And the governor indicated that local governments would have the choice in eliminating local sales taxes on energy.

“I just think that will be a decision that communities will have the right to make with regard to their own share of taxes in that same category,” said Deal. “We think it is a competitiveness issue, and our state is behind the ball that we still have that tax in place when many of our competitor states do not.”

During policy committee meetings during Mayors’ Day, cities were split on the issue of exempting the sales tax on energy. Some communities indicated they would be more competitive to manufacturers if the tax were eliminated, while others said the elimination of the tax on energy would leave gaping holes in their budgets.

“We’re encouraged by Governor Deal’s remarks,” said GMA Governmental Relations Director Tom Gehl. “GMA appreciates this principled endorsement of the judgment of local officials to make decisions that best suit their individual communities.”

Deal also discussed other state initiatives to boost Georgia’s economy, including extending job tax credits to small- and medium-sized businesses. He also encouraged passage of the regional Transportation Investment Act votes taking place later this year, noting the significance of transportation in the state economy. 

Deal: Sales Tax on Energy Used in Manufacturing

• Length: 40 sec    Download audio (MP3)

Deal: T-SPLOST

• Length: 1 min, 26 sec   Download audio (MP3)

Deal: Strong Cities

• Length: 1 min, 9 sec Download audio (MP3)

Deal praised city and county leaders for coming together to develop the lists of projects that will be on the ballots. “I think, more than anything else, the fact that we have demonstrated in this process that you can think beyond your own municipal boundaries is a significant thing.”

The governor predicted there would be many more opportunities for city, county and state leaders to work together regionally, and encouraged the continued cooperation of government leaders.

“I understand the importance of us holding hands as we move into the future,” he said. “We are not always going to agree on things. That’s okay; we’ll work out our differences. But if we are in constant battle with each other, the message we send to the taxpayers . . . will be that we just can not make government work. In a day and a time when that theory is under significant scrutiny, I want the state of Georgia, its municipalities, its counties, its school boards and every other facet of state and local government to show the people of the state that we value the money you give us, we will spend it wisely and we will not squander it by squabbling with each other.”

Lt. Governor Cagle also encouraged cooperation among governments and passage of the transportation sales tax referendums, noting, “If Savannah succeeds, Georgia succeeds. If Albany succeeds, Georgia succeeds. We’re all tied together.”

Cagle said the economy is changing, and Georgia will have to change with it to be competitive. “That is really where our focus lies. It’s in making sure the government stays small, the taxes are low, the regulations are fair and limited and that we create within our state a government that is the most economically viable state to do business in in the nation. I think that is critical as we move forward.”

Cagle: Focus is on Economic Development

• Length: 35 sec  Download audio (MP3)

Cagle: T-SPLOST

• Length: 1 min  Download audio (MP3)

Speaker Ralston said cooperation between the General Assembly and local leaders will continue. “We represent and serve the same people, and I thought we had too much in common to let that which might divide us tear us apart. So we are going to continue this year to have the kind of dialogue that we have had with cities and counties because I think that’s in the interest of those that we both serve. And we serve the same people.”

Ralston: State-Local Cooperation

• Length: 52 sec   Download audio (MP3)

Ralston: Importance of Former Local Officials in House of Representatives

• Length: 59 sec   Download audio (MP3)

Ralston predicted that the groundwork being laid by state and local leaders in this new economy is going to pay off for Georgia. “I truly believe our brightest days are still ahead,” he said. “I think Georgia is on the verge of greatness, the likes of which we have never seen.”