Tag Archive for 'water'

Jason Pye on the Speaker’s Tax Proposal: Going Down in Flames!

Anyone who keeps up with politics in Georgia, keeps up with JasonPye.com. It’s always a pleasure to talk to Jason and get his take on issues and people.

In this interview, Jason discusses some of the details of Speaker Richardson’s proposal to eliminate the property tax and broaden the sales tax. Jason gives credit to Travis Fain for the details of what goods and services would be taxed under the plan. Jason says there is a need for clarification as to some of the things that will be taxed. For example, the plan would tax temporary lodging over 90 days. Does this refer only to the extended motel or hotel stay, or does it include your apartment rent. For a list of what exemptions will be eliminated, go here.

If the Speaker has his way, we will be paying sales tax on water bills, phone and long distance services, dental services, and haircuts, just to name a few. The state portion of the sales tax we pay is currently 4% and, as I understand it, would remain unchanged.

Of course, one of the most important issues is whether or not enough revenue can be generated from the expansion of the sales tax to make up the revenue lost through the elimination of the property tax. Jason said there was a study by Georgia State University which indicates there would be a significant shortfall. However, the Speaker insists there won’t be a short fall. The question is whether the Speaker’s optimism is merely blind faith or reliable economic analysis.

Jason points out that one of the problems with the Speaker’s plan is the manner in which it is being revealed and promoted. For example, Speaker Richardson has made it apparent that he is not receptive to any criticism of his plan, and generally avoids discussing it in public.

Politically, the unknown consequences of this battle over the Speaker’s tax proposal is the repercussions it will have on Republicans in the ’08 elections. The elimination of the property tax is a sticky local issue for two reasons: (1) every citizen is likely to jump up and salute the elimination of the property tax, and (2) the local city and county governments oppose its elimination since it is their main source of revenue. There is not, at least as far as Jason and I are aware, any city or county elected officials that support the Speaker’s plan. In fact, Jason said one mayor compared it to the centralized government proposed by Karl Marx. Next year in seeking re-election, Republican representatives are going to have to explain their support for the plan and that could make them vulnerable to significant criticism at home. And if they don’t support the plan, they are subject to criticism as well.

Everyone believes, thinks and assumes that Speaker Richardson controls the House Republicans with an iron rod. Jason thinks he is literally staking his political future on passing this plan. But, when all is said and done, Jason says the plan will go down in flames because it has no chance of passsing the Senate. And maybe that is part of the Speaker’s plan, too! Is this a strategy to build a platform to run for Governor in 2010? Trying to eliminate the property tax may get the vote of a lot of Georgians, regrdless of whether or not it is a bad idea. And what happens if an opponent in the Governor’s race, say one from the Senate or elsewhere, opposed eliminating the property tax?

I was disheatened when our discussion turned to the Atlanta Water Shortage. I thought Jason, smart guy that he is, would jump at my offer to rent my trailer to him when they run out of water in Atlanta. He seems oddly unconcerned, even though I was only charging two grand a week for hot water and 6 baths a day.

Jason says there is no sense of panic, at least not in the county where he lives, Newton. Its reservoir is full. Although no outside water use is allowed, he thinks people, generally, have a degree of blind faith that the problem will get resolved. No one seems to be laying blame for the situation getting this bad–other than whoever caused the drought. On top of that, the Governor is getting favorable approval ratings for the manner in which he is handling the problem.

Jason did say that if the optimism proves unfounded, he is coming to live with me. Fine Jason, but without a paid, advance reservation, the rate goes up!

We ended the interview with a few comments about Ron Paul and the libertarian philosophy. Ron Paul seems to be experiencing a spike in his campaign and support. He is one of those who says what he means and means what he says and to that extent he is refreshing. But then, you ask the next question and find out he thinks the Food and Drug Administration (or a dozen or so other federal agencies) should be eliminated, not reformed, eliminated. Jason seems to think that is a good idea and believes the drug companies and market forces will make sure dangerous drugs don’t stay on the market.

Me? I am not concerned about bad drugs staying on the market. I am concerned about them getting on the market in the first place. Apparently, Jason thinks a few deaths to test a drug out are well worth the costs savings in not having the FDA require proof a drug is safe.

Back to Ron Paul. Jason doesn’t think America is ready to support a strong, independent third party, whether Libertarian or otherwise. Neither do I–right now. But if any man can birth a viable political party, virtually overnight, its George Bush. Rarely, has one man done so much, so wrong, so faithfully.

Water and Property Taxes: Senator Tommie Williams Says…

I think he gets it.  I hope he gets it!  But only time will tell and it will take the 2008 session of the Georgia legislature to reveal just how Senator Williams and the rest of the Republican leadership are going to deal with the issue of water.   This interview focuses primarily on water, but near the end we discuss Glenn Richardson’s proposal to eliminate the property tax. 

When it comes to Speaker Richardson’s proposal, Tommie makes it clear that while it may pass the House, it will not pass the Senate, at least not in its original form.  I am not sure what that means, but Senator Wiliams is equally emphatic that the 2008 legislature is going to do something about property taxes.  According to Senator Williams, people are upset about their property taxes are going up. 

He points out that people on fixed incomes have to worry about their property taxes increasing to the point they can’t afford to pay them.  I don’t think anyone would argue with the idea that the elderly and people on fixed incomes need some protection, I don’t think this justifies a criticism of the property tax as an effective and fair tool for raising revenue.  There are two basic reasons the taxes of homeowners go up significantly:  (1) correcting years of under-stated property values because assessors did not do their jobs, or (2) the inflated value of real estate in this economy. 

I mentioned to Tommie that Warren Buffett, the billionaire, had recently announced that he paid 18% of his income in taxes and his secretary paid 33% of her income in taxes and had challenged members of Congress to disclose their tax rates.  I then asked Tommie if he thought the shifting of the tax burden from a wealth basis, such as the property tax, to a consumption basis, such as the sales tax, would result in his paying less taxes.  He readily admitted that he had already done the math and that he would pay less tax. 

And that, ladies and gentlemen, is the primary reason behind Glenn Richardson’s efforts to eliminate the property tax: less taxes for the rich, more taxes for consumers.

Water, is not an easy topic to discuss, since it seems that no one wants to talk specifics.  However, in light of Governor Perdue’s recent public confession of sin regarding the way the water problem has been handled, I really wanted to know what sins had been committed that may be affecting the delivery of water from the heavens.   I am still not sure what those sins are, but I still resent having my supply of water affected because of them.

It did not take long to establish that the water plan proposed by the Water Council is not going to receive the legislature’s approval.  The real question is what plan will pass, because some plan has to pass unless they change the law.

Tommie also pointed out that everybody is sick and tired of the hassles that come from too much growth and development in Metro Atlanta.  Too many cars.  Too much traffic.  Too little water.  However, I did not detect any real desire to curb the enthusiasm of developers for more. 

Tommie readily acknowledges that South Georgia is not going to stand for having its water sent to Atlanta.

He doesn’t think that building more reservoirs is a long term solution to the water shortage, mainly because he thinks the EPD and the Endangered Species Act would effectively prevent a reservoir being approved. 

He mentions the possibility of a desalinazation plant to pump water from the coast to Atlanta as a possibile means of providing more water to the Metro Atlanta.  That is certainly a possibility, but the costs is going to be a big issue.  Not only that, will Atlanta pay for it?  Can Atlanta pay for it?

I was surprised when he mentioned the Tennessee River, which he indicates Georgia owns half of.  Hmmm!  Never thought of that, but Tommie indicated that Georgia might claim a right to pump water from the Tennessee River to Metro Atlanta.  Of course, there are all sorts of issues with this, such as the power and control of the Tennessee Valley Authority over the Tennessee River, not to mention building the pipeline to Atlanta.

While these long term possibilities are interesting to discuss, I was more interested in finding out if anyone, including Tommie, had any idea what Atlanta was going to do in 250+ days, if and when the water ran out.  He indicated that the emergency managment agencies were working on that problem and I really did not get any idea what short term options were under consideration, other than, of course, hauling water to and fro.

The only thing that is still certain is that 2008 is going to be interesting, to say the least.

GriftDrift Says It All: Holy Water on a Vampire!

What do you not talk about when you talk to James Williams a/k/a GriftDrift? From water rationing to development to the ’08 Senate race to presidential politics, we cover the gamut, including holy water and vampires.

As you may know, Governor Perdue was in DC last week meeting with the Secretary of the Interior in an effort to resolve the water war with Alabama and Florida. As James points out, the farmers in South Georgia have known there was a water crisis for years. However, the farmers (developers) in Atlanta probably knew the problem existed and was much worse than the general public was aware. They just didn’t want to deal with the issue because any legitimate discussion of the future of water in Atlanta should include a discussion about controlling development. As James notes, talking about restricting development in Atlanta is like throwing holy water on a vampire.

The problem with the water crisis is the worst is yet to come! The economic impact of water rationing could impact North and South Georgia. Water restrictions have already had an impact on those businesses whose economic viability depends on water and plenty of it. The question is how long can they hold on before they go under, file bankruptcy or otherwise significantly impact employment levels. The sad truth is that there probably is no solution that can be put into effect in time to solve the problem unless the rain returns and soon.

A few comments about Rep. Jim Marshall (GA 8th) and his recent vote against SCHIP funding. Marshall is apparently confusing the Democrats with his Republican leaning votes. According to James, Marshall probably believes the program is a good one, but just doesn’t need the level of funding the Democrats are pushing. Either way he is confounding both parties.

As for the Senate race, Chambliss is polling at 58% according to the most recent Strategic Vision poll. I wonder if the election will end up being a referendum on Chambliss’ unwavering support for Bush and the Iraq War.

As for the Democrats, of course, Vernon Jones, the DeKalb County CEO, is ahead of the pack in fund raising. Some people think he already has it sown up, but Josh Lanier from Statesboro, a Talmadge Democrat, has recently formed a committee to look into the possibility of making a run.

As for presidential politics, Hillary is the Democratic favorite in Georgia, Thompson the Republican. Hillary does appear to have sown up the Georgia vote recently getting Civil Rights leader Rep. John Lewis’ endorsement.

James thinks Romney will ultimately win the Republican nomination. If it ends up with two New Yorkers, Hillary and Rudy, opposing each other, the question may be how many Georgia voters will just stay home during the primary. None I hope. However, by the date of the Georgia primary on February 5th, the winner of both the Democratic and Republican nominations may be sown up.

Fred Thompson appears to be the dog that caught the car and now that he has it, doesn’t know what to do with it. While Thompson may still be the number one choice of Georgia Republicans, I think he has little chance of getting the nomination. One minute Fred sounds great and the next he looks old. As James points out, Fred is a good example of the difference between the type of politician we say we want and the type we will actually vote for. We don’t want Slick Willie until we see unslick Willie and then we prefer the slick one.

Let’s face it. In these days and times, politics makes little sense, but it is even more important to be involved.

At least capitalism is still alive, even if it is thirsty. James and I are both thinking about renting out our trailer (mine) and cabin (James) to people from North Georgia that might want to move someplace where they can take a bath 3 or 4 times a day and not worry about running out of water.

Tennessee and Florida and Georgia: Water and Development

I was in Tampa last Thursday and Friday and happened to pick up a regional newpaper to read at breakfast. What do you think is on the front page? Articles about water. The first one was about Tennessee. I am sure you have already heard about Orme, TN.

Orme has actually run out of water. Their water source was a mountain stream that is now dry and the mayor has the local fire engine make daily trips to Alabama (of all places) to haul water to the city’s tank. The mayor turns the value at 6 pm and the residents cook, wash, bath and save some water for the next day. At 9 pm he closes the valve and everyone waits to repeat the exercise 24 hours later.

But when it comes to Florida, it seems they are way ahead of us when it comes to being concerned about water. They seem to be seriously considering pumping water from rivers like the St. Johns, to the overdeveloped central Florida (Disney World). Ocala is talking about water.

I guess Florida still has water in its rivers and lakes!

But it appears that only Woodstock, GA, takes the water challenge seriously. Recently, it held a rain dance to end the drought, but a poor turnout apparently has doomed us to another 6 weeks of winter. (I guess that statement makes as much sense as a rain dance!)

I can’t figure out whether Atlanta has 250 days of water left or 81 or whatever. At least the Governors of the 3 states are talking.

But I am tired of Perdue and the rest blaming someone, whether Alabama’s Governor or the Army Corps of Engineers. I have not heard anyone offer a solution which leads me to believe that there may not be a solution other than the cessation of the drought. If that is the only real solution, we are probably in more trouble than they want us to know. If that is the only real solution, by the 2008 election we will know for sure whether we are lucky or whether we need to send a delegation to Orme, TN to study their techniques for hauling water to 3+ million people.

Reservoirs? Questions of Quality of Life!

For those who are trying to figure out whether or not there is an answer to the water problem, you might want to read this commentary by Greg Bluestein (AP) in the Macon Telegraph Online. Greg points out that reservoirs are not the answer to the water problems, neither in the long term or the short term. Why?

Short term: They take years to build. They are also very expensive. According to the article, a new reservoir costs about $4000 per 1000 gallons. Dang!

Long term: More reservoirs = More water = More buildings = More people = Same problem 30 years down the road.

Now, this may sound a little naive, but when you think about it, the real problem here is deciding what quality of life we want to have in Georgia 30 years down the road. Think about this. Why do you like

to go to Wyoming? It is the 10th largest state in land size and the least populated state, less than 500,000 per the 2000 census. As beautiful as it is, as nice as it is to visit, why the heck aren’t there more people in Wyoming?

I am not exactly sure when it was in vogue, seems like decades ago, but I remember when you heard a lot about zero population growth as a goal because the world had too many people.

I don’t know anyone that actually wants Atlanta to get bigger. I don’t know anyone that wants more concrete for roads and parking lots in Metro Atlanta. I don’t know anyone that has any idea how to solve the traffic jams and transportation nightmare that is Atlanta.

Could the answer actually be that we decide that Georgia is big enough? Can we decide we have had enough growth, enough population? Can we choose to slow down so that the Georgia we knew and loved when we were kids (open spaces, natural streams and stuff like that) is actually preserved so that our grandchildren can enjoy it? Or will they look back and wonder how we could have been so stupid to have failed to make the hard choices and preserve the best in this state? Will they wonder why we left it to them to solve problems that could have been more easily solved by us in this day and time?

It sounds strange to contemplate a conscious decision not to grow and grow and grow. It sounds strange, but it has the ring of wisdom to it. Look at China. An industrial slum that will destroy its future, if not the world’s. It sounds like one of those things that we may regret not giving serious consideration to 30 years from now.

One thing is for sure, without any shadow of a doubt, Georgia can only hold so many people and building and roads. If you compare 1950 with today, it is not hard to imagine that in 50 more years, life in Georgia will not be anything like what it is today. That may have been an exciting thought in the past when running out of space and water and open spaces was not really a concern, but now it is a little scary to think of Metro Atlanta as being twice as big as it is today. When I think of that I see those weird cities in the science fiction movies where the city is all inside another building.

More on Water: Georgia Water Planning and Policy Center

Doug Wilson is the Exective Director of the Georgia Water Planning and Policy Center (GWPPC). If you have never heard of GWPPC, you probably aren’t alone. Formed in 1999 with the support of the Georgia General Assembly and the Georgia Research Alliance, GWPPC serves as a think-tank on water in Georgia.

Although the GWPPC is not involved in rule making, it is contracted with the Legislative Services Committee and the Georgia Department of Agriculture to advise them on the recently proposed “Water Plan.” It has also produced about 80 white papers dealing with various water issues, all of which can be found on its website.

Water is not just a Metro Atlanta issue or problem. Not only has Georgia’s population almost doubled since 1970, but its irrigated agricultural acreage has also increased by 1 million acres since 1970.

Consider this: Seminole, Early, Decatur, Miller, Baker and Mitchell Counties have between 400,000 and 500,000 irrigated acres of agricultural lands. Spring Creek in Early and Seminole County is dry.

Most of the water used in South Georgia comes from the Floridan Aquifer which extends roughly on a line from Blakely to Screven County. In the Albany area the aquifer lies very close to the surface and is recharged quickly when it rains. In Southeast Georgia the aquifer lies deeper and it takes longer for surface water run-off to recharge it. In Savannah and other coastal areas, heavy industrial use of aquifer water has caused episodes of saltwater intrusion into the aquifer, something that is to be prevented at all costs. This impacts commercial and industrial development because of restrictions on the amount of water that can be pumped from the aquifer.

As you may know, Lake Lanier is under the control of the Army Corps of Engineers and was originally built primarily for the production of hydroelectric power. Its use as a source of drinking water came much later, I guess when population growth made it a necessity to find new sources of available water.

When there is no drought, Georgia is all wet, about 50 inches of rainfall over the whole state each year. That 50 inches of rain equals 50 trillion gallons of water. Demand for all types of water consumption in the state is about 1.2 trillion gallons a year, and a lot of that, particularly in South Georgia, is satisfied from ground water. Thus, if we could just catch and hold more rainwater, we could have all the water we could possibly need without depriving people who live downstream of their need for surface water in the rivers and creeks.

We might even need a reservoir or two for South Georgia to use in times of drought when rivers and streams are low.

With the supply of available water growing low in Metro Atlanta, Governor Perdue and others have criticized the Army Corps of Engineers for releasing water from Lake Lanier, water that could be used by Atlantans. But it isn’t the mussels and fish living in the waters of South West Georgia and Florida that are to blame. This is well explained in a recent Op-Ed by Dusty Nix, writing for the Editorial Board of the Columbus Ledger-Enquirer. While the drought has brought the problem home, the real reason Atlanta is in such dire straits is poor planning and unrestrained development that everyone has known for years was going to result in this kind of shortage someday.

The truth is that Atlanta’s water consumption is at its absolute maximum and the drought has only served to emphasize this fact. If no more water were released and the drought continues, Atlanta is still going to be out of water in the not too distant future.

Water and the “State of the Region!”

If you don’t understand the water issues presently facing Atlanta, this diagram should make it crystal clear:
Metro Water Transfers
Still not clear? Let me refer you to the website for the Metropolitan North Georgia Water District (MNGWD) and their Water Supply and Water Conservation Management Plan (WSP). The MNGWD was created by the Georgia Legislature in 2001 to get a handle on the water issues for the 16 metro counties under its jurisdiction. The WSP was issued in September 2003. If you don’t want to read the whole plan, you will find the Executive Summary comforting.

I found a lot of encouragement from the fact that, according to the Executive Summary:

This WS Plan Outlines a balanced, long-term water management strategy for meeting future needs, while protecting water quality through 2030, and preserving water resources in all five major river basins.

If they have already planned this out through 2030, what’s to worry, this is only 2007!

A few other interesting facts:

(1) Surface water (rivers, reservoirs) account for 99% of the Metro’s water sources. Thus, groundwater (wells) is less than 1%. Page 6.

(2) The Basin Estimated Available Supply in Million Gallons Per Day
Average Annual Daily Basis

Chattahoochee 641
Etowah 133
Flint 61
Ocmulgee 98
Oconee 0
District Total 933 (See Page 7)

(3) There are 5 new reservoirs in various stages of permitting which will provide an additional 114 MGD. Page 7. (As far as I know, none of these will be online in the next 3 months, but not to worry, it’s in the plan.)

(4) All of the counties within the District maintain connections with at least one other county for either routine or emergency water sale. Page 7. (Proof that drought is good for capitalism.)

(5) Indirect potable reuse, or reclaimed water that is returned to water supply sources such as Lake Lanier and Lake Allatoona, provides the most flexibility in meeting future potable demands. Page 11. (I think this means that your toilet is going to have a direct line to your sink.)

Don’t let this list deter you from reading either the plan or the executive summary. I assure you there is a lot more there that you should know about that I have not mentioned.

If you are still concerned, then I suggest you attend the “State of the Region” program to be presented by the Atlanta Regional Commission (ARC) on November 8, 2007 at the Hyatt Regency. The ARC provides the staff for the MNGWD and is equally interested in water issues.

The keynote speaker will be futurist, Glen Hiemstra, who will kick off a two-year initiative to develop a vision action plan for Atlanta for the next 50 years. To get a ticket you can go to the ARC website, or call Monique Steele at 404-463-3191 or email her at msteele@atlantaregional.com.

I am confident that if Mr. Hiemstra is going kick off a 50-year vision, all the answers to your water questions will be answered November 8th. This is HUGE! HUGE, I tell you. Be There or Be Thirsty!

By the way, if you are wondering what the heck is a “futurist,” they aren’t crazy enough to suggest that they can predict the future. Rather, they just project it! My mother used to project the future: “Just wait until your father gets home!”

Interview with John Henry, Effingham Economic Development Authority

Not only is Atlanta and Gwinnett County growing, but Effingham County, next door to Savannah, Chatham is growing by leaps and bounds as well. In 1990 the County was around 25,000 residents, today it almost 60,000.

John Henry tells us what this kind of growth means in the context of a limited water supply. Because Effingham County is located in a area of the Floridan acquifer that is depressed, it can only pump 6.5 million gallons of water a day to supply both homes and business. As a result of this limitation, Effingham just can’t handle industries that require a lot of water.

Located on the Savannah River and near the Georgia Ports facilities, Effingham has a lot of attraction for industry. The Georgia Pacific paper mill located there years ago. But the pressures of rapid growth and development impact more than just water consumption. It takes money to provide the infrastructure for a county growing by a third every 10 years or so. And money means taxes, property taxes in particular. According to Henry, residential property requires 9 times the county services required by commercial property.

And property taxes are something that the 2008 Georgia Legislature may do something about. I predict that it is going to be very hard to convince counties like Effingham to give up local control of property taxes, the bread and butter of local government. Our cities and counties are not going to like having to ask the State legislature for more money. Think about that? A lot of people understand that all this talk about doing away with the property tax is, at least in part, an effort to concentrate power by the boys in Atlanta.

So if you are just thrilled about paying no property taxes, you better be thrilled enough to get in the car, head to Atlanta and hold out your hand when you need a new school or fire station. Tax reform ain’t gonna happen in 2008. Wanna bet?

Interview with Senate Majority Leader Tommie Williams (R-19)

Senate Majority Leader Tommie Williams discusses some thoughts about the newly unveiled Georgia Water Plan from the Water Council. Tommie said he has not read the entire plan but he is aware of controversial issues such as interbasin pumping. As to that issue he says he is in agreement with the Riverkeeper organizations that oppose such methods.

According to Tommie the legislature is prepared to do its own investigation into this issue, not just adopt whatever the Water Council proposes. There is $20 million in the budget to allow for adequate study and development of an alternative proposal. That sounds good, real good.

What I don’t understand is the provision in the 2004 Comprehensive Statewide Water Management Planning Act which provides that if the legislature does not adopt some plan at the 2008 session of the legislature, the Water Council proposal becomes law. I have never understood why the legislature passes legislation that essentially says that if the elected officials can’t decide what to do, so unelected agency or bureaucrat gets to decide the issue. What do we elect them for?

Tommie was quick to point out that there is some question as to whether or not this delegation of responsibility is even constitutional. A court will have to decide that and it may well come to that. I just wonder why nobody thought about that when the Act was passed into law 3 years ago.

This is going to be a big issue folks, pitting environmentalists and the country people against the big city developers that want to pave everything between the north Georgia mountains and Macon. All I can say is the day someone tells me the water under my land is going to be pumped to Atlanta so some rich dude can develop something is the day the Devil Came Down to Georgia.

Tommie also gives us a glimpse of the push in the 2008 legislature to do away with property taxation in favor of a broader sales tax base with fewer exemptions. That would probably mean taxes on services, as well as goods. You know services, like haircuts, mowing lawns and attorney fees.

Tommie did not indicate that the income tax may be eliminated, although some have talked about that as well. I am not sure Tommie has much appreciation for the fact that the sales tax is a regressive tax. Simply, people with low income pay a higher percentage of their income toward the tax than people with higher incomes. Higher sales taxes shifts more of the burden to low income families. Some people think this is fair on the theory that if you don’t want to pay the tax, don’t spend the money. That logic may apply to a boat but not to a bottle of milk for the kid.

It is sure to be a sticky issue.

Tommie also talks about the transportation problem in Metro Atlanta. He seems to agree that building more roads is not going to solve the problem. He told me that some 450,000 people ride MARTA everyday. The problem is the 2 or 3 million that don’t. Tommie threw out 2 suggestions: some sort of perimeter oriented mass transit and trolleys for downtown. Is this what he was thinking about? I was thinking more like a high speed train from Alpharetta to Five Points. Another intractable problem solved!

2008 is going to be something!

Interview with Sally Bethea, Executive Director, Upper Chattahoochee RiverKeeper

Sally Bethea, Executive Director, Upper Chattahoochee RiverKeeper, and former Member-At-Large of the Georgia Board of Natural Resources, gives us the inside scoop on how Sen. Tommie Williams (R-19) scratched her name from Gov. Perdue’s list of nominees for reappointment to the BNR.