Georgia's Rural Divide Program Threatened in Budget Battle

The FY 2004 budget passed by the Georgia Senate last week eliminates all $32 million the House approved for the OneGeorgia Authority, the state's loan and grant program targeting rural tech-based and traditional economic development. Created in 2000, the OneGeorgia Authority was anticipated to spend $1.6 billion over 25 years (one-third of the state's tobacco settlement funds) to assist the state's most economically challenged areas based on unemployment and poverty rates. Governor Sonny Perdue had requested $70.8 million for OneGeorgia in his FY04 request.

The authority's two primary funding vehicles – the Economic Development, Growth and Expansion (EDGE) Fund and Equity Fund – already have supported projects across the state for high tech manufacturing business expansion, life science and other technology-based incubators, traditional infrastructure, research and industrial parks, and speculative facilities.

A Senate amendment to restore at least $14 million for the Authority failed narrowly on a 26-28 vote before final passage of the state budget last Friday. The versions of the budget approved by the House and Senate are radically different from each other according to Georgia press accounts and are in conference committee for reconciliation. The Augusta Chronicle reports that the Governor does not like either version.

More information on the OneGeorgia Authority is available at: http://www.onegeorgia.org