SUMMARY:

            This bill would amend title 36 and Title 45 of the O.C.G.A. to provide for funding methods for the Homeowner Tax Relief Grants that would shift the grant amounts to the supplemental budget, but it would lock in the amounts once they are appropriated, if sufficient funds are available..

REQUIREMENTS:

• During this fiscal year, ending 6/30/09, the General Assembly would fund the grants to the Department of Revenue based on the eligible assessed value of eligible homes, which would not be less than that specified in FY 2004.
• If there are insufficient funds, the amount could be adjusted in amendments [supplemental budget] to the annual budget.
• If there are sufficient funds, that amount could not be reduced or withdrawn for any reason.
• During this fiscal year, ending 6/30/09, the supplemental budget would specify the amount appropriated to counties and school systems for the eligible homestead grants.
• If the supplemental budget is insufficient to fund that amount, it may be adjusted in the general budget for the FY 2010 year.
• If there are sufficient funds in the supplemental budget, that amount could not be withdrawn for any reason.
• After July 1, 2009, Homeowner Tax Relief Grants amounts would appear in the supplemental budget would specify the amount appropriated and the eligible assessed value of each qualified homestead.
• If there are insufficient funds in the supplemental appropriations, the amount could be adjusted in the general budget for the next fiscal year.
• If there are sufficient funds, that amount could not be changed or withdrawn.
• The bill would give the Governor the right to withhold funds from departments and agencies, and it removes the option of requiring the departments or agencies to reserve the funds.

NOTES:

• This proposal could result in counties and school systems having to wait until FY 2010 to catch up on 2009, and they would have to wait until January, 2010 (or later) to know if the grants would be funded and for what amount.
• The same is true for subsequent years, except counties and school systems would have to wait until the supplemental budget is passed each year to know how much, if anything is appropriated for Homeowner Tax Relief Grants.
• This proposal would keep funds in the general fund rather than sending them to departments and agencies with the direction to reserve the funds, thereby keeping any interest earned in the general fund.
• Homeowner Tax Relief Grants were designed to take state funds, which are mostly income tax and sales tax revenues, and send them to counties and school systems to provide some relief from property taxes for people who reside in the homes taxed.  When these grants are not funded, the tax burden is shifted back to property taxes in local counties, yet another example of shifting the state’s commitments to local governments and school systems.