ATLANTA (Feb. 18, 2010) – The Senate today voted in favor of saving millions in taxpayer dollars and allowed Georgians to have a greater voice in how their money is spent. Senate Majority Leader Chip Rogers (R-Woodstock) championed Senate Resolution 510 proposes an amendment to the State Constitution allowing the General Assembly in general law to authorize the State Properties Commission (SPC), the Board of Regents of the University System of Georgia, or both to enter into multi-year rental agreements.
“As stewards of taxpayer money, we have a duty and responsibility to be as transparent as possible and utilize tax dollars effectively and efficiently. By allowing the state to enter into multi-year leases, we could save an estimated $37 million over 10 years,” said Rogers. “Georgia’s current leasing policy prevents the state from obtaining lowest cost options and ultimately does not serve the best interests of the state, agency occupants or the taxpayers. Giving Georgians the opportunity to make this cost-saving change in our Constitution provides transparency in how their money is spent and ensures long-term cost savings.”
“I applaud Sen. Rogers for his common-sense legislation aimed to protect taxpayers around the state,” said Lt. Governor Casey Cagle. “Our Budget Task Force identified this move as a key method to effectively manage the state’s business. The Senate continues to offer fiscally-responsible solutions that ease the burden on hard-working Georgians and promote an open, efficient government.”
According to the Georgia Constitution, “…the credit of the state shall not be pledged or loaned to any individual, company, corporation or association…” and it is the interpretation of this Constitutional provision that has resulted in the long-standing policy limiting leasing to one-year terms. Georgia faces a fundamental issue that is common to other state and public sector organizations: How to provide for multi-year fixed term leases to leverage the State’s real estate resources and not conflict with the provision to commit to any future obligations beyond the current annual appropriation cycle.
Allowing multi-year contracts will improve the management and increase the value of the State’s leasing practices and administrations. The multi-year lease format is standard and considered a leading commercial business practice. In addition, a number of other states including California, Wisconsin, North Carolina, Florida, New York and Texas have followed this leading practice.
The Senate also passed the enabling legislation, Senate Bill 254, which provides direction to the SPC regarding multi-year contracts. This bill amends Title 50, Chapter 16 relating to the powers and duties of the SPC. SB 254 has an effective date of January 1, 2011; however the Act will only become effective on that date upon the November, 2010 ratification of the Constitutional Amendment proposed by SR 510.
The Resolution must achieve a two-thirds majority in the Senate and House, then be signed by the governor before going on the November ballot for a vote. By putting this to a vote by Georgia citizens, they will have the opportunity to say how their tax dollars are utilized. The ballot question will read, “Shall the Constitution of Georgia be amended so as to allow the State Properties Commission and the Board of Regents of the University System of Georgia to enter into multi-year rental agreements without requiring appropriations in the current fiscal year for the total amount of rents that would be due under the entire agreement so as to achieve a reduction in rental rates to be paid by the state?”
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Sen. Chip Rogers serves as Senate Majority Leader. He represents the 21st Senate District which includes portions of Cherokee and Cobb counties. He can be reached at his office at 404.463.1378 or by email at chip.rogers@senate.ga.gov.
For Immediate Release:
February 18, 2010
For Information Contact:
Raegan Weber, Director
Raegan.weber@senate.ga.gov
404.656.0028