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Governor proposes $19.2B budget
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ATLANTA — Gov. Nathan Deal wants to cut taxes to stimulate growth, but the $19.2 billion budget plan he presented Wednesday does not account for the tax cuts.

The Republican governor has proposed eliminating a state sales tax on the energy consumed by manufacturers and some farmers over three years and expand tax credits available to firms that create jobs. His administration estimates the tax break on energy alone would cost Georgia somewhere around $157 million. However, the budget plans presented by the governor do not include those reductions in tax revenue.

Officials in Deal's administration said they will work with the General Assembly to implement the tax cuts. Legislators in Georgia meet for a 40-day session that started Monday.

"It's Day 3," said Chris Riley, Deal's chief-of-staff. "There are 37 days left."

Budget analysts said Deal's administration should have accounted for the tax break. By definition, his budget is at least slightly out-of-balance.

"That's a problem," said Alan Essig, executive director of the nonpartisan Georgia Budget and Policy Institute. "Our position is that they should pay for it with another tax or get rid of less-priority, less-important exemptions for businesses."

The drop in revenue caused by the tax cut would be small compared to Deal's overall budget, which proposes some modest funding increases after state leaders hacked away at the budget during a bruising recession. Deal has asked lawmakers to spend an additional $255 million in state money for the fiscal year ending in June. That's just over 1 percent of the previously approved budget of nearly $18.3 billion. For the coming fiscal year, Deal has proposed spending $19.2 billion.

By comparison, the loss of state income from eliminating the sales tax on energy amounts to less than 1 percent of the current budget after a three-year phase-in.

When speaking to business leaders Tuesday, Deal said other states have already eliminated that tax for manufacturers. He said getting rid of it in Georgia could attract jobs in a state with nearly 10 percent unemployment.

"In an age of much higher energy costs, this will impact a large component of manufacturers' overall cost structure and vastly improve the competitive position of our producers," Deal said.

The governor also proposed expanding a tax credit for small businesses so that it rewards companies that create 15 jobs, lowering the threshold from current level of 50 jobs. Deal's administration has estimated the costs of this tax credit but his chief financial officer, Debbie Dlugolenski, said she could not recall the financial impact during a briefing with reporters.

Democratic lawmakers faulted Deal for the lack of financial projections.

"We are still wondering how we pay for it," said Rep. Stacey Abrams, the Democratic leader in the House.

State Sen. Jack Hill, the GOP chairman of the Senate Appropriations Committee, said he believed Deal's approach was reasonable.

"You're a year away from anyone claiming it, so you can certainly in anticipation of that go ahead and announce it and go ahead and activate it," he said.

Apart from tax cuts, the Republican governor has asked for $258 million in additional spending to cover growth in the state's K-12 and higher education systems and spending more than $15 million to fund alternative courts and treatment centers for offenders suffering from drug addictions. Deal said his goal is to keep nonviolent addicts out of the expensive and overcrowded prison system if they agree to seek help. His spending proposals would repay money that the state borrowed from the Medicaid system to pay for its employee health care costs.

Deal is primarily relying on increased tax collections to provide the necessary funding for his new programs. His budget assumes that tax collections, which provide the bulk of the state's money, will increase roughly 5 percent from this budget year to the following year. That may prove a conservative estimate, meaning state officials would have more cash on hand than Deal currently projects. Tax collections increased 7 percent between November and December, according to an analysis released by budget officials.

 

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Book review: Author digs into mining's complicated past and present in 'River of Lost Souls'
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Jonathan Thompson will speak about his book "River of Lost Souls" at the King's English Bookshop on Tuesday, April 3 at 7 p.m. - photo by Amanda Olson
"RIVER OF LOST SOULS: The Science, Politics, and Greed Behind the Gold King Mine Spill," by Jonathan Thompson, Torrey House Press, 275 pages (nf)

Plenty has been written about the very small world of a mining town and the very broad reach of a beleaguered industry. From Loretta Lynns iconic song "Coal Miners Daughter," to the 2010 nail-biting coverage of 33 trapped Chilean miners, to the hit Broadway musicals "Paint Your Wagon" and "Billy Elliot," mining is a global story, and its one of heartbreak, hard work and hard times.

Jonathan Thompsons "River of Lost Souls" examines the many facets of risk involved in taking resources from below the earths surface. An environmental journalist, Thompson has reported on southwest Colorado for over 20 years. This book is special, however, because the Four Corners area of Colorado is his current and ancestral home. Thompson is writing about minings ecological, social, financial and political impact on his land, his landscape, his water, his people. That makes "River of Lost Souls" more than a regular reporting job.

Thompson begins with the Gold King Mine wastewater disaster of 2015, which the EPA caused while attempting to drain water near the mines entrance. The spill sent 3 million gallons of waste and tailings into Cement Creek, a tributary of the Animas River and part of the San Juan River watershed which drains into the Colorado, affecting the Utah, Colorado and New Mexico parts of that watershed as well as the Navajo Nation.

From there, Thompson jumps into far stretches of time to 1765, when a Spanish explorer named the Animas River; to 10,000 years earlier, when Paleo-Indians roamed the rivers valley; to the meridian of time, when the ancestors of the Zuni, Hopi and Rio Grande Pueblo people inhabited the land for 500 years; to the mid-1800s and the Swedes who came to Silverton, Colorado, to mine.

Its a grand scope, but telling any story of landscape is telling a very grand story.

It also makes a complex story difficult to follow. Thompsons time warps are important, but they are jarring. His time jumps need clear dates, and Thompson doesnt always make them available. A map would also be useful. Thompsons writing is good, but his sentences can be dense and require readers to do their own mining for the riches the writing embeds. The work is worthwhile, however, as there are many moving parts in any story about mines land, culture, policy, history, money, inevitable disaster and Thompson works to examine all of them.

"River of Lost Souls" is a thoughtful read, but not a quick one. Because Thompsons writings come from 20 years of his newspaper reports, the overall feeling can be disjointed and sparse, which is distracting if one is expecting to follow a tenable thread. This is not a typical narrative with a cast of characters and a traditional story arc. Readers should approach this text as the investigation it is: puzzle pieces of a larger-than-life story that is eons old. If you are the kind of reader who wants it laid out cleanly, this is not that book. But, to Thompsons point, nothing is clean about mining that has never been the case.

Thompsons best writing is in his descriptions of people and places. His telling of how he came to Silverton is familiar and engaging. If readers approach the book with care and attention, they will be rewarded with savoring these descriptive passages when they happen.
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