Musings from the Dome

Some goings on at the Dome that have local relevance:

• Heard from a source at the Dome yesterday who assured me that the House Leadership and others are working aggressively to break the logjam on transportation. It gives me a little more hope than I had on Tuesday that something may happen. My friend said that he has never seen the spirit of cooperation down there the way it is right now, and that's great. But cooperation alone ain't gonna cut it -- someone is going to have to seriously budge to make something happen in the waning days of the session, as the Governor is using his SRTA/GRTA act as a litmus test for passing the funding bills. My big wish is that the Governor hadn't thrown the "new governance" stink bomb into the mix this year, as transportation reform was complicated enough with competing funding bills. My opinion: we should tackle funding this year (recognizing it will be voted on in 2010 and a lot of voter education will be necessary for either TSPLOST or a statewide sales tax) and reform governance next year. My preference is still the statewide bill, which will help quickly implement some of the major improvements (rail, freight, ports, highways, transit) that we need, but I could live with any reasonable compromise that provides dedicated funding, and I think most Georgians could too. Opponents are attempting to use references to underground tunnels and the northern arc in the statewide bill to gin up opposition, but it is important to note that these are proposed as public-private ventures, not paid for with the sales tax funds. Note also this op-ed on transportation from the Rome News Tribune, always one of the state's more thoughtful publications.
  
• One has to wonder if the Governor has an axe to grind against hospitals after yesterday's announcement and his earlier attempt to increase taxes on their revenues. Is there some sort of massive largess in our system that I am missing? This whole discussion hearkens back to my earlier point about cutting the state budget -- in my opinion, cutting around the edges just makes everything weaker. Look, we all know this is a TOUGH budget year. However, as I said in January, I wish we could cut off entire portions of the government instead and retain funding for transportation, healthcare, and education -- the things Georgians and local governments can't fund themselves. David Shafer, I might be coming around to your way of thinking on the budget process.
  
• I am pleased that Austin Scott is talking sense to his Republican colleagues in the House. Why do they keep trying to tell local governments how to do business? How would Georgia Republicans respond if the Feds told them how much they could tax, what they could spend it on, and where their employees need to live? It makes no sense, and the Brunswick News agrees (story at left -- wish I could link to their editorials) -- I just wish Jerry Keen and Chip Rogers (see comments below) would listen to them.

SPLOST in the OC

The Oconee County SPLOST vote is approaching on March 17, exactly two weeks from today. Some background on SPLOST: it stands for Special Purpose Local Option Sales Tax. It is pronounced suh-plah-st; only in Athens-Clarke do they use the SPEE-lost pronounciation, which struck me as weird when we moved back to Oconee in 2002. SPLOST dollars can be used for capital improvements, but not ongoing government expenses.

At any rate, the run-up to this SPLOST has been very quiet. The first SPLOST vote I can remember in Oconee was when I was a kid, and it was anything but quiet. Although I was too young to vote, I was certainly a lobbyist on behalf of the county. I cared because it was to pay for the John T. Brannen building, aka the "New Gym," at Herman C. Michael Park.

You see, Oconee didn't generate nearly as many sales tax dollars then (our big retailers were Bell's, Oconee Sporting Goods, our four Golden Pantries, and A.J.'s), so there was a big campaign to get folks to vote for the extra 1% sales tax that SPLOST entails. I made significant contributions to the cause with daily purchases of Mountain Dew ($.39 per can) and Skittles ($.33 on sale) at the old Golden Pantry at the "4-way stop." I typically rode my bike up there or walked in the summer, or walked over there from OCHS -- now Oconee Middle -- during the school year.

So anyway, the SPLOST passed, and all of us amateur basketball players reaped the benefits as we moved from the "Booster Club Gym" in downtown Watkinsville -- now dubbed "Rocket Hall" -- to a shiny new gym at Herman C. Michael Park. The person in charge of herding the teens at the "New Gym" was Dan Matthews, who was known to jump into a full court game every now and then to teach us kids a lesson. Since then, many notable county projects have been funded with SPLOST dollars, including the new Veteran's Memorial Park.

So recently the ABH, Lee Becker and Wendell Dawson have taken a hard look at upcoming the 6-year, $40 million SPLOST referendum, and you can read the blogs for their perspective on the county's priorities. Overall, SPLOST is a valuable tool that removes significant burdens from property owners, particularly if it isn't used to fund projects that require significant ongoing general fund dollars. These kinds of "legacy" projects can be tempting for governments, but should be avoided as SPLOST investments as they create a significant ongoing operating cost that cannot be funded with future SPLOST dollars. Most of the stuff on the list passes the smell test.

One thing that hasn't received a lot of focus is that this is the first SPLOST in which Oconee County's four municipalities are participating. Watkinsville will recieve 7.99% of the proceeds, or approximately $3.2 million. Most of these funds will be used for sidewalks, greenspace and roads, which will require limited ongoing maintenance funds, but are in much demand from our citizens. Potential sidewalk locations include Harden Hill Road, Simonton Bridge, and/or VFW drive. Playground improvements, new sewer lines (not sexy, but very necessary to improve our industrial park), and greenspace acquisition are also on the table.

Bogart will get $1.6 million, New High Shoals $668,000, and Bishop $220,000. For our small cities, this funding boost is truly a game changer, allowing some flexibility with tight budgets and the ability to better serve citizens.

As alluded to by Dawson and Becker, there are likely other issues at play in the background, but in my mind, a vote in favor of this SPLOST is a no-brainer. While we may all quibble over details, the good far outweighs the bad in this proposal.

This and That

Some interesting tidbits from the day:

• Big news for the alma mater as Berry scores a $4 million donation for new residence halls and the Cage Center, as well as endowing a new scholarship program that gets Berry back to its roots. Berry also picked up two wins over archrival Shorter on the hardwood the other night, which always brings a smile to my face.
  
• Are we trying to do too much too fast when it comes to transportation? So far this session, we have at least three bills that will dramatically change transportation in Georgia. Will any of them pass? See this story for the Governor's plan to reorganize transportation governance. Wasn't this what GRTA was supposed to do? Lets keep our fingers crossed that something gets accomplished this session.
• This is really impressive. Perhaps Clarke should consider something similar as it seeks to expand its landfill. $250,000 per year is nothing to sneeze at either.
  
• Georgia Power has been pushing a bill in the legislature that will allow the company to stretch the charges for a planned nuclear plant over a number of years, basically, effective immediately, despite the plant won't be on line for many years. This appears to make a lot of financial sense for Georgia Power, and perhaps for their rate payers. Initial opposition came from usual suspects -- Democratic interest groups, anti-nuclear activists, environmentalists. Things seemed to be moving along smoothly, and they even fended off an unusually strong challenge from Clark Howard and announced polling results that show Georgians on their side. But now the battle is truly joined. Conservatives at Peach Pundit have decided it is not a good idea, and are making a fight of this thing. This will be an interesting test to see how strong the new media movement is and if it can impact policy, and also an interesting clash of social networks and old fashioned networking. Georgia Power is perhaps the state's best and most prominent corporate citizen, investing heavily in local communities all over the state and building a lot of goodwill. Will be interesting to see if Erick Erickson and his crew slow things down for Georgia Power.
• We're about to get to work identifying historic homes and properties in Watkinsville. We are particularly focused on preventing "demolition by neglect" which has already occurred to at least two Main Street properties in the past five years. Let me know if you have any suggestions.
  
• I just don't understand how we're thinking about cutting revenue in Georgia right now. While I'm not as vehement as JMac, one of the big problems with our state's tax policy right now is a lot of well intentioned tax breaks that add up to a lot of $$$$. This is one reason Rep. Bob Smith had a point when he called for a constitutional convention (an idea which appears to have disappeared, by the way).
  
• Interesting post from Maria Saporta on the challenges facing Metro Atlanta. This is right on target, and the rest of the state needs to pay attention. As Atlanta goes, so goes Georgia.
• I'm sorry Coach, but you can coach attitude and effort. Sometimes you have to. In fact, I would argue at many levels in many sports, it isn't the X's and O's that make coaches great, but it is the coach's ability to get the most out of his or her players. Exhibit 1. Exhibit 2. Exhibit 3.
  
• Be sure you read this story. Sportsmanship still lives, and it's a very good thing.

Watkinsville Council and Other Updates

Good city council meeting tonight. We approved changes to our land use code that will allow recreational facilities -- everything from tennis courts to swim centers to climbing walls to places like Pump it Up -- in the Employment Center and Commercial Corridor areas. This will allow Zion Skate Park -- a privately run skateboarding and rollerblading facility -- to set up off of Morrison Street. Hopefully this will give kids and teens who want to skate a safe, supervised place to do so, and allow future recreational facilities in areas that have the infrastructure for traffic or the type of buildings that allow for indoor recreation.

We also approved several business licenses and discussed an updated solid waste ordinance for the city, which will likely be adopted next month once we work through some issues on concrete pads and screening for dumpsters at businesses (exciting, I know). Budget wise we are on track but next month we should know more based on Local Option Sales Tax Revenues. We are also going to check into voluntary recycling options for city residents as part of trash pick up (likely with a fee).

Also, if you catch a hard copy of the Oconee Enterprise this week, be sure to read the story on residential property values. It appears that the Tax Commissioner's office is beginning its annual "campaign to justify increasing property values" a few months early this year. I'm sorry, but the premise -- that if you hold on to your house long enough you can get a return -- doesn't hold water. There is a cost to holding onto your home, especially if you have to or need to move. Anyone with any sense in Oconee County knows that we are overbuilt, that the vast majority of property values are flat or down. So lets not hide from that fact. We've all benefited from pretty aggressive increases in property values over the past 5-10 years. See my previous rant on property assessments here.

It's a little bit far afield for me, but if you ever wonder what is wrong in Atlanta, here's an indicator from the AJC:

Franklin has estimated it would cost at least $20 million to hire, train and equip 200 officers. The police department currently has 1,633 sworn police officers and 79 recruits who are on track to becoming officers, said Sgt. Lisa Keyes, a police spokeswoman.

What???? That is $100,000 per officer -- is that normal? Seems unbelievable. They should already be trained. And they can share vehicles. I still own a rental unit in Atlanta, and believe me, they need more police, but this explains why they have budget problems.

Back to the local scene, there is also a front page story in the OE about the demise of Creekside as well as significant coverage in the Athens Banner Herald earlier this week. Folks, whether you call it Green Hills or Creekside, the only question about this course is how in the world it made it so long. For most of its history, it was poorly maintained and has always been 15 minutes from civilization in any direction. There are too many quality and affordable golf options in this area for it to make it. Having financing with the now defunct The Community Bank out of Loganville did not help either. Moving ahead, Creekside would make a great passive recreation area if it could be picked up cheaply by Oconee -- install some horse, running, mountain bike trails that requires minimal maintenance but mostly let it return to the wild. There are beautiful woods and great terrain out there. There is also lot of history in that area that is disappearing (see item below) so it might be neat to preserve some space out there. And if you are looking for outstanding local public golf courses, start with newly renovated UGA and Lane Creek and the Georgia Club. There are many more.


Last thing -- two fascinating stories and photos in the Athens Banner-Herald's Oconee section today about Barnett Shoals Dam (wonder if Georgia Power is renewing its lease on the Dam next year?). This was a mile or two upstream from the old wire bridge (pictured) that connected Oconee and Oglethorpe Counties that is the namesake of Wire Bridge Road. Roy Ward -- his art and his knowledge -- is a gem in our community that should be recognized more often.

Photo credit: Vanishing Georgia, Georgia Division of Archives and History, Office of Secretary of State

City Council Update

Had a relatively short city council meeting tonight. Interestingly, we had 4 new business permits on the docket despite the down economy, including two new small businesses on the main street corridor. One of those stores will offer a variety of green and natural products, including cleaning products, at Town Center.

We are voted to drop the fee for sign permits through the end of the year in an effort to help small businesses limit start up costs -- our own mini-incentive program, I suppose.

In other items, we also discussed potential impacts of LOST revenue drops on the city, but overall the financial picture in Watkinsville is strong. Other items discussed included a new pick up truck the city purchased for the Oconee County fire department, the delay of the Mars Hill Road expansion, and some controversial fire wood selling along VFW Drive. We had a typical crowd there, and no huge issues.

We also had a called meeting on Monday night where we tackled recommended allocations for the city's percentage of potential SPLOST revenues. This will be Watkinsville's first time participating. We are considering allocating these funds -- an estimated total of nearly $3.2 million over six years -- towards sewer lines in the industrial park, sidewalks, road improvements, greenspace acquisition, recreational facilities, and public safety (new vehicles and technology). We are also still taking public feedback on these options, so feel free to weigh in here, send me a note, or send an e-mail to city hall.

Failout

This is why people are so jaded about politics. The Senate has the courage to actually pass the bill, and then we learn it is full of crap like tax breaks for makers of wooden arrows and rum producers in Puerto Rico and the Virgin Islands. Unbelievable.

Land of the SPLOST

At our last city council meeting, we discussed the potential impact of SPLOST revenues on the city. Unlike many other communities, in past SPLOST issues, Oconee County's municipalities have not received any of these sales tax revenues. That is all set to change if the next SPLOST passes, where Oconee's municipalities will get a share of the revenue based on their percentage of the overall county population.

The city of Watkinsville would be slated to receive more than $3 million over the life of the penny tax -- a solid infusion that would make a world of difference to our community. Projects being considered -- but not finalized -- include additional sewer lines in the Watkinsville industrial park, greenspace acquisition, significant improvements in our existing parks, new sidewalks, necessary road repavings, police vehicles, and other capital equipment costs.

In a city with a budget as small as ours, these funds could make a huge difference. For our other (and even smaller) cities in Oconee, it could be even more transformative. The City of Watkinsville will be holding a public hearing to discuss options for use of SPLOST funds in more detail and to hear from citizens what they want. Stay tuned for those dates and more information!

From City Council to Governor to VP?

Okay, it isn't local. But I have to say I really like McCain's VP choice for a number of reasons, and not just because she got her start on a small town local city council.

Sarah Palin is a Republican who actually has worked to shrink government, fight corruption, and have a common sense approach on energy, unlike most of our more national figures. She is also a refreshing change from the typical "two old white guys" approach of the Republican party.

She's a regular person who grew up playing high school basketball and running in road races with her family. She eloped with her husband because they did not have money for a wedding. She now has five kids, including a four month old. Indeed, up until she became pregnant she was still running 7 to 10 miles per day -- check out this story for more detail on her workout regimen! The real challenge for her won't be the vice presidency -- it will be keeping her fitness and raising healthy children in the D.C. environment!

All that said as a city councilman, a struggling off-and-on/ex-runner, and a parent, I can appreciate all that she seeks to balance in life and think that perspective is certainly helpful to have at the highest levels in D.C. I think this unexpected choice could be the boost McCain needs to make this into a real contest.

National Media Getting it Right

I don't usually do much worshiping at the altar of The New York Times or The Wall Street Journal. Frankly, I typically disagree with most writers at The Times and The WSJ is rarely local enough to suit me.

But today I stumbled across several stories that indeed are well thought out and very relevant to our local economy.

First, Wall Street Journal columnist Holman Jenkins makes the case for why congress should not get involved in bailing out residential real estate mortgagees, and by extension, the developers and banks who made poor choices. While many people instinctively oppose most bail out options -- including one proposed by Georgia Senator Johnny Isakson -- Jenkins' story puts a lot of meat on the bone. The fact is, widespread fraud was going on, according to my friends in the media. But does that fraud justify a national bail out? In my mind I still can't justify a bail out for an industry that made many of its own mistakes. The two issues have to be separated, or otherwise we wind up with a massive program that allows every person who made a poor real estate decision an exit strategy with our tax dollars. I'm sorry, but being underwater on a mortgage (or being unable to pay your mortgage) should not entitle you to a handout.

This issue is certainly relevant in Oconee, where dollars and speculation ran way ahead of reality, and now shuttered and empty subdivisions line once pastoral Hog Mountain Road and other areas. This excerpt says it all: "One sure way to guarantee bubbles without end is to institutionalize that one-way bet. That's what a bailout would end up doing for those ultimately responsible for directing a large chunk of the nation's savings into unwanted, uneconomic housing." Wow. Like I said, read the column.

Second, Tom Friedman and David Brooks at the New York Times really nail a couple of national issues in their columns (linked at their names). Friedman, one of my favorite authors and columnists, has long had my admiration due to his strong advocacy for energy independence -- and not just the "we need to drill in Alaska" type of independence currently espoused by the Sean Hannitys of the world. As I have said before, if this country can't lick its dependence on oil -- whether domestic or foreign -- we are hurting. Oil prices ripple through every part of our economy. Combine it with our debt to competitive nations, our lack of domestic manufacturing capacity, and a variety of other domestic issues, and we have major issues that ripple across the nation. Friedman's key point: the longer we wait to "unleash" American ingenuity and "energy" on the oil problem, the harder it will be to escape our addiction. See the chart for how preparation can help us overcome and plan for the rising prices of oil as supplies dwindle.

Brooks takes on another issue -- the "Christmas Tree" farm bill which bothers me the more I read about it. Legislators and big farmers love it -- "Something for everyone! Yay" -- but most good government advocates on both sides hate it. Barack Obama, despite his rhetoric about fighting special interests, supports the bill. John McCain opposes it. The more I learn about McCain, the more I like him, although I still wonder if he has a chance this fall against the charismatic senator from Illinois. Oconee farmers: what do you think about the bill? Am sure Paul "Mr. No Earmarks" Broun will oppose it. Perhaps the local media will take a look at the bill and see how or if it impacts this area.

Oconee's economy is closely tied to both cheap gas and agriculture. Not as much as other suburban counties -- which is a good thing -- but we need to take a hard look at how the oil issue in particular could impact us over time. What type of industry do we want? Is it realistic to expect people to commute to Atlanta? As food prices rise and land values decrease, should we take a harder look at crops in Oconee? Should we push harder for the brain train? Focus on industry besides real estate and growth-related industry for future jobs?

Bottom line: There are answers to all these questions, but they will require hard, courageous decisions by politicians. What usually forces politicians to make these decisions? Unfortunately, a lot of economic pain for American consumers and businesses, who then kick the bums out and force the new guys to find a solution.

Whatever Happened to the World's Fair (and more)

A few news items and takes from near and far:

• Whatever happened to Worlds Fairs? Remember them? If you were a kid in the late 1970s/early 1980s, you couldn't miss them, especially when one came south to Knoxville, Tenn. of all places. And who could forget the sunsphere (pictured right), which still stands in Knoxvegas? In my seven year old brain, a World's Fair was somewhat on par with the Olympics, until, well, ummm... I never heard of one again. Until today. Much to my surprise, the World's Fair is still going strong, just overseas. Coke is sponsoring one -- in China. Wikipedia edifies here. Sometimes I love the internet.
• Unfortunately, World's Fairs and other iconic 70s and 80s events in the South don't usually make "I Love the 80s." Maybe we need a special "I Love the 80s" Southern edition that would also include things like Dukes of Hazzard, airbrushed t-shirts, Fall Guy re-runs, the robotic voices in the trains at the Atlanta airport, Kenny Rogers, junkyard derbies, go carts, the Herschel Walker phenonmenon, the world of Sid and Marty Kroft, the Bo Jackson phenomenon, Power 99.7, etc. What would make your list?
• The Georgia Club Tour of Homes was a spectacular event. Wonderfully organized. More than 800 in attendance. And some gorgeous homes. Check out this article, which gives a pretty good overview of some of the homes. Personal highlights included some incredible basements (poker tables, media rooms, pool tables, bars galore), millions of dollars of original art, some great UGA football memorabilia, a train set suspended from the ceiling, and a gorgeous courtyard homes.
• Oconee County is spending $25,000 to replace 39 toilets and 6 urinals with low flow models. That's $555 apiece. Seems a bit pricey to me, although plumbing costs are a bit out of hand these days. Maybe just institute an every-other flush policy?
• Jim Wooten nails it in this column when it comes to taxes. If Republicans want to tax, just come out and do it. Don't hide behind bait and switch tactics. Don't tag on user fees. Just say what you need the money for and see if the electorate will pay for it.

Interesting Take on GREAT Plan

Bill Kinney of the Marietta Daily Journal pens an interesting piece on the GREAT tax. He does a great job of outlining some of the unexpected charges most Georgians will pay in this excerpt:

"Young parents with children in daycare, on the other hand, who now might be paying $145 a week for an infant would have to pay an extra $10.15 per week in taxes, which tallies to an extra $528 per year.

On the other end of the spectrum, basic care in an assisted-living facility is now about $2,400 per month. Under Richardson's plan, that would jump $168 per month, or an extra $2,016 in taxes.

"Home ownership would be more costly as well since the real estate commission and closing costs would be taxed, along with your cable, Internet and insurance bills and the cost of home repairs," Radford says.

And let's not forget about food. The average family in the South spends about $5,030 a year on food, according to the U.S. Census Bureau. Under Richardson's plan, that would mean an extra $353 per year in taxes."

The more you look at the speaker's plan, the worse it looks.

GREAT Tax Update

Glenn Richardson, Georgia Speaker of the House, announced earlier this week some of the items that conceivably would and wouldn't be taxed under his "GREAT" plan. Among those services that will now be taxed is rental property. Awesome news that should create major headaches for landlords in Athens and Watkinsville, and a major expense for those who rent (try adding 7% to your rent and see if you like what you get). Click here for more. However, Insider Advantage offers more detail, and says rental properties are not taxed as long as you are a legal Georgia citizen. IA gives lots more detail here (subscription required) as does Atlanta Business Chronicle (no subscription required); short story: lots of B2B services are taxed up to a point, and consumers will still be taxed on most of their purchases. It appears as if businesses have gotten some breaks.

A major problem with this whole plan (other than it being a bad idea in general) is that it is a moving target. Just 60 days before the session begins, and we are still adjusting some rather large details.

There is no doubt this plan is bad news for local governments, and I'm pleased the Governor came out against it. Nice to see him take a stand on this issue -- it's bad for business, bad for citizens, bad for local government -- that means its bad for Georgia. Only one group benefits -- the state government.

GREAT Plan Hurting?

The GREAT Plan is like a ship with the rats jumping off it. Even the guys at Peach Pundit are coming out against it. I thought the revelations in the Oct. 15 Atlanta Business Chronicle about the impact on businesses were the final nail in the coffin, but I suspect local elected officials will have to fight tooth and nail through the session to keep it off the ballot.