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Education
Social
Problems Georgia's
Economy Governance-
How We Are Governed
FOCUS ON GEORGIA'S ECONOMY
Jobs! Jobs! Jobs! In a word, that is Georgia's
economy! You see, "jobs" are the source of revenue that runs the
state. Over 90% of the state's revenue is derived from
personal income taxes and sales taxes. You
contribute 6% of your pay to the state when you earn your paycheck
and you contribute 4% when you spend it. "Jobs" provide the funding
for our schools, government assistance programs, our infrastructure,
our criminal justice system (law enforcement, courts and jails), and
every other expectation you have of your government.
As long
as there are plenty of good paying jobs with benefits, Georgia's
revenues are sufficient to meet its obligations. When revenues match
obligations, Georgia's economy is in balance. When revenues grow
faster than obligations, there's money left over. When obligations
grow faster than revenues, there's a problem.
I hate to be
the one to share this news with you, but there's a problem. Job
growth is not good. As a matter of fact, it's not good at all and
prospects for it to improve are not good either. (See Georgia:
Where Are We Now- The Economy)
As if that news wasn't
bad enough, there's more bad news. Obligations are really growing
fast. As a matter of fact, they have already outgrown our ability to
manage them. (See Georgia: Where Are We Now: Social Issues)
Unfortunately, that's not the worst of the news. Obligations
are growing faster than revenues. Therefore, Georgia's
economy is out of balance. Georgia's problems are serious, but not
hopeless.
So, what's the solution? Jobs. We need to create
more good paying jobs. I'm a businessman and the situation calls for
a business approach. But, before I disclose my game plan, let's take
a quick look at some of the options that are being bantered
about.
The governor says, "Georgia is open for business".
Really? That certainly conveys a message that sets Georgia apart
from our Southern neighbors. While Georgia is "open for business",
our neighbors have been whipping us. They've been closing deals at
the expense of Georgians. They are creating jobs while our jobs are
in decline. But, you can't blame them. They are our competitors.
They are beating us fairly and squarely in a highly competitive
environment. They aren't the problem. The problem is "us". We are
"open for business". But, they are
doing business!
Not to worry, there are some
"quick fixes" on the table. (Of course, I'm being facetious.) One
candidate's solution is "decreasing taxes"- not personal income
taxes, but corporate taxes. He must not be aware that Georgia's
corporate taxes are already among the most generous in the country?
"High" corporate taxes are not the reason jobs are not growing in
Georgia.
An editor of one of Georgia's monthly publications
is promoting another idea- raise taxes, not corporations, but yours.
Unfortunately, he thinks "restoring" funding to education by raising
your taxes is the "be all, end all" solution to our problems.
Raising taxes may be necessary, but not to do more of the same. A
couple of my opponents haven't openly endorsed this idea. But, their
support for smaller classroom size and blanket support for "more
money for education" necessitates the same action- raise your taxes
to do more of the same thing.
They have another message that
should improve Georgia, too- platitudes. "It's all about our
children." "It's all about education." "We need to build a Georgia
that includes everybody" and "we will create jobs for everyone"!
Words, but where are the ideas? Where are the plans? Where are the
actions? Where is this thing they call "leadership"?
The
last "quick fix" I want to address is the "goodie bag". Folks,
businesses expand where they are presently located, or they relocate
to another place for one reason: what is best for their business.
Period. Of course, prospective locations they choose may have to
make some accommodations, but only if a piece of the puzzle is
missing. On the other hand, if a location fully meets the business
needs, the decision typically comes down to "people". People that
like people do business together. The only time a "goodie bag" of
concessions is necessary, is when there are multiple players in the
game that meet all of the needs, too. Then, and only then, does the
bidding game of "who has the biggest goodie bag" come into play. So?
What's the bottom line on "goodie bags"? A "goodie bag" is an option
of last resort, not first resort.
(This is an appropriate
time to address the "secrecy in negotiation" issue, too. I favor
some degree of secrecy up to the point in the process that a
conditional deal is on the table. But, before the deal is finalized,
full public disclosure should be made and the public afforded an
opportunity to be heard.)
There you have it. The solutions to
turn Georgia back in the right direction: jazz up the "open for
business" sign with neon lights; lower taxes; raise taxes; put more
money in education; throw lots of platitudes at Georgians to give us
the "warm and fuzzies"; and, the "goodie bag"
mentality!
Folks, I prefer a little more substance. The
situation calls for a business solution. We cannot "spend, talk, or
trick" our way out of our problems.
We must focus. We must
solve problems. We must invest. We must work hard. We must think. We
must have a shared vision and we must work together to make it
happen. When we do all of these things and do them well, we will be
prepared to reclaim our position as the economic powerhouse of the
South.
Preparing Georgia
for growth- top down leadership: solve our problems, invest, be
innovative, and maximize utilization of
resources.
Solve Our Problems: The Education Level of the Population and
"Quality of Life" Issues
For years, major employers have been telling us we have some
serious problems we must correct. Most noteworthy, we must raise the
education level of our population and increase the quality of life
in our communities. Folks, I spent eight months investigating these
problems and formulating solutions to them. The problems are defined
and presented in great detail in Georgia: Where Are We Now: in
Education; and, Where Are We Now: Social Issues. The solutions were
disclosed at the beginning of John's Vision for Georgia: Education
and Social Problems. Solving problems related to education and
poverty must be the immediate FOCUS of the next
administration! The problems are complex. Solutions are going to
take time and money and a tremendous effort. But, solving them will
be worth the effort. Education consumes 35% of the budget. Social
assistance programs and the criminal justice system consume 25% and
8% of the budget, respectively. Lastly, putting solutions in place
removes two of the biggest inhibitors of job growth and will change
the perception that Georgia is a state that won't or can't solve its
problems. Once perception changes, momentum will shift to the
positive side.
Traffic Congestion In and Around Atlanta
Atlanta is the financial and commerce center of the South.
Opportunity abounds. But, Atlanta has a serious problem that impedes
its ability to capitalize on further opportunities. Major employers
and prospective new businesses have warned us for years- solve the
traffic congestion problems! The proposed interstate should have
addressed and overcome congestion in and around Atlanta, but it
doesn't. Nor, does it open much of Georgia's isolated landmass and
communities to interstate access. Therefore, I am opposed to the new
I-3. Here is what I think we should do differently:
- I propose "I-22". I favor a new interstate that begins on the
Ga-Ala border north of Rome, arcing its way eastward to Athens,
then southward to Crawfordville. From there, it proceeds southward
to the east of Dublin, then southwestwardly south of Abbeville.
Intersecting I-75 it continues past Albany toward Dothan with a
southern link from Albany to Tallahassee.
- The proposed interstate between Augusta and Columbus would be
slightly altered. The new "I-22", negates the need for a dedicated
link from Augusta to Crawfordville. But, it will require a new
link from the "I-22" at Sandersville through Macon to Columbus
onto Montgomery.
- Bainbridge needs to be tied into the link between Albany and
Tallahassee.
- Brunswick needs a link to "I-22".
The benefits of my vision are as follows:
- The not-so-distant future expansion of I-75 between
Chattanooga and Atlanta would be alleviated.
- There will be a tremendous reduction of congestion around the
Metropolitan Atlanta area caused by "through" traffic.
- Residents of the highly congested Northern quadrant of Atlanta
would have a convenient alternative to by-pass Atlanta for
destinations to the Georgia coast, the main peninsula of Florida,
and all points north- northwest and northeast. This would
significantly reduce traffic on I-285.
- All major arteries leading into Atlanta have alternative
routes that enable by-passing Atlanta, except southbound traffic
on I-75 desiring to go southwesterly to Montgomery and the Florida
panhandle and vice versa.
- Rome has access to the interstate system. It's isolation is
ended.
- Athens and the University of Georgia have easy access to the
interstate system.
- All of Georgia becomes accessible to the interstate
system in all directions.
Regarding the Northern Arc, I would solicit the support of the
governors of Tennessee, Alabama and Mississippi for continuation of
this interstate westward to Memphis. I would also solicit the
support of the governor of Florida for the link between Albany and
Tallahassee.
My vision may or may not exceed costs of the
proposals presently pursued. There is 10-15% more linear miles of
interstate with my plan. However, the proposed link between
Savannah, Augusta and Knoxville traverses some very unfriendly
terrain the entire length of its course.
Asphalt is not all.
- Passenger Rail systems. I do not favor
passenger rail systems presently planned between Atlanta-Macon,
Atlanta-Chattanooga, Tn., or Atlanta-Greenville, SC. However, if I
can be shown an example of a profitable passenger rail system from
anywhere in the country built in the past 50 years, I may change
my position.
- Extending MARTA rail system. I favor
extension along I-85 and I-75 outside of I-285 as a first phase,
then eastward along I-20 as a second phase.
- Streetcars. I love the idea for Atlanta and
perhaps for some of our other larger cities throughout the state.
They're economical, convenient, cheap, powered by electricity
(clean), low maintenance, and enhance the tourist experience.
- Toll roads. In Georgia? Not on my watch!
Solving problems and taking some different directions are some of
the things that can and should be done from the "top", but there is
more.
Creating State Level Economic Development Resources
Quite frankly, the State of Georgia does not appear to have an
economic development organization. From its mission statement,
staffing, and background of its leadership, the State Department of
Economic Development appears to be nothing more than an in-house
advertising, marketing and promotion agency. That will change.
Georgians, it is little wonder neighboring states are beating our
pants off in the job creation game. Georgia's communities are left
to their own devices to compete against one another and against the
combined efforts of communities and state governments of other
states. Each must learn how the state is organized and which one to
access for assistance. Each is an island unto itself. Local economic
development organizations should have one point of contact to access
the state economic development team. One call should give them
access to all state government agencies that manage state and
federal grant programs to facilitate economic growth. We can, and
will do better than the present effort. The existing department will
become subordinate to a real economic development
effort.
The new organization will
have a new mission: create jobs. Period. Under my "Strong
Communities, Strong Georgia" initiative, we will survey the
industrial base of the state, create industrial
zones and focus state efforts on a
multi-faceted approach:
- Assist expansion efforts of existing
industries to strengthen them and develop
"clusters" of vertically and horizontally
integrated businesses around them. (This concept is identical to
the retail industries creation of "anchor" stores, around which
you develop clusters of retail stores. It has proven successful in
the development of malls, strip centers and outlet malls. It is
the reason most downtown districts have been forced to re-invent
themselves. The re-invention process does not rely on "anchors",
rather "clusters" of smaller businesses that appeal to local
tastes and, in many cases, tourism.) The dairy and poultry
industries are good examples. Pressured by sprawl in the northern
outreaches of Atlanta, they are being squeezed out of their homes.
Instead of permitting their relocation be to a hodge-podge of
different locations, we should assist in creating new centers for
their vitally important industries. In the case of the dairy
industry, there is tremendous opportunity for growth in unit
volume, if a concerted public-private effort is led by the state.
- Create clusters of existing industries that
are scattered all over the state. A great example of this is the
technology industry. The industry ranks Georgia 6th worst out of 8
technology states. The reasons: fragmentation and "poor
relationship with state government". TAG (the Technology
Association of Georgia) has more than 600 members. They need a
home. We need to create a home for them. The state should take the
lead in facilitating the process. Once they have a home, the
technology cluster will attract more and more technology
businesses. Savannah seems to be the most likely candidate to be
designated the hub of Georgia's Technology Zone. How many more
examples exist? I don't know. But, the survey of the state will
provide a clearer picture. The point is this, the state should
provide leadership in discovering them, opening dialogue and,
where need and desire exist, make it happen.
- Develop new industries. Georgia has vast
resources. Hundreds of categories of businesses exist in the world
but do not exist in Georgia. Yet, Georgia has regions, smaller
areas or specific locations that meet the needs of those
industries. We must conduct a profile of every major industry in
the world. Industry profiles should be reconciled against surveys
of Georgia's resources. Where matches exist, we create
opportunities for Georgia's entrepreneurs to begin creation of
those industries. (Georgia entrepreneurs will be aware of every
opportunity that surfaces through the quarterly "Georgia Sunshine
News".) Additionally, where an area or region is deficient in one
or a few of the resources necessary to meet the needs of a
profiled industry, the state takes the lead in developing those
resources on a prioritized basis. Aqua-culture businesses
(oystering and crabbing) are good examples of developing new
industries in Georgia. The natural resources exist. We may be
short on some infrastructure needs or we may need to utilize our
intellectual capital resources of our university system to solve
some technical issues, or we may need to re-visit some onerous
state rules or regulations to make it happen. But, we can and we
should. When our efforts to interest Georgia entrepreneurs in
developing new businesses fail, we resort to recruiting existing
businesses from outside of Georgia.
- Recruit new businesses and industries. I have
two views of recruiting. First, recruiting should complement our
effort of developing new industries and expanding existing ones.
Recruiting should not be the primary thrust of our efforts. Where
we have regions that meet an industry profile and efforts fail to
recruit Georgia entrepreneurs to take the lead in creating
start-up businesses, we may be forced to recruit existing
businesses from outside of Georgia. The other view of our
recruiting effort will focus on attracting major manufacturers to
Georgia. An automobile manufacturing or assembly plant is a good
example.
There is one important point regarding recruiting new businesses
and industries that I should make very clear. The governor should be
the lead salesperson and spokesperson for Georgia. The selling job
is easy when you have the best product on the market. Solving our
serious problems removes objections. Taking initiative and meeting
the needs of your customers is the next most effective selling tool.
Folks, if we do all of the things I've presented thus far in my
vision, we have all but eliminated the competition. Georgia will
then, and only then, resume economic "boom" times.
- Promote Georgia.
- Tourism. There are two types of tourism.
Georgia benefits from both and both should be promoted. But,
make no mistake about it, one kind is big bucks and meaningful
to a few cities in Georgia- conventions, trade shows, meetings
and major events.
The state economic development effort
should not rest until every venue is booked solid throughout the
year!
The other tourist dollars are meaningful, too.
Georgia's interstate system serves as main arteries for tourists
simply passing through Georgia to and from destinations in
Florida and the Carolinas. However, there are very few major
tourist destinations in Georgia outside of Atlanta, Savannah and
Macon. We can change that. Hundreds of thousands of Civil War
buffs exist throughout the country. Georgia has a wealth of
Civil War attractions. We can do a better job attracting them to
Georgia. There are other opportunities. We have to discover them
and promote them. We must also create some. For example,
Nashville was once the only "capital" of country and western
music. Now, there is Branson, Missouri, the greater Gatlinburg
area and Myrtle Beach, South Carolina. What "capital" can
Georgia become? We need ideas. We need to develop a vision. And,
we need to make it happen! When we do, every mom and pop store
along the routes and in and around the destination will prosper
and more and more will emerge. Does Helen, Georgia have the
potential to be the next Gatlinburg?
- "Buy in Georgia" campaigns. There isn't
much new to a "Shop in 'wherever' campaign". But, there is a
twist that could impact greatly on Georgia's economy. Whenever,
a community promotes a "buy locally" campaign, it is for
consumer products, primarily big ticket items like automobiles,
appliances and furniture. Most often these promotions are
sponsored and promoted by local chambers of commerce because of
the immediate and direct benefit of sales tax revenues. They
always disturbed me. Not because they weren't a good idea. They
bothered me because our local chamber membership consisted of
many big manufacturers that bought many of their supplies,
materials and merchandising aids from suppliers in other
communities and states. Local suppliers and the local community
could have benefited greatly. Doing business locally creates
jobs. The point is this. Georgia businesses should search for
Georgia suppliers and give them preferential treatment where
price, quality and service are not compromised. It will result
in more jobs for Georgians. Additionally, suppliers outside of
Georgia do not pay taxes in Georgia, nor do they support local
schools, charities, or civic organizations. Keep as much money
and business in Georgia as possible!
Folks, the state can assist in many ways from the top-down.
However, the state is not the "be all, end all" solution to economic
prosperity for Georgia. The governor has important leadership roles
to fulfill- create a shared vision, focus state resources to
facilitate growth opportunities and be the lead salesperson
promoting Georgia. However, the top-down approach has limitations.
You cannot legislate jobs, desire or ambition. Where it exists in
Georgia, the "top" should be the willing and able facilitator that
enables great things to happen! But, Georgia's strength is Georgia's
communities.
Preparing Georgia for Growth: Bottom-up Leadership - "Strong
Communities, Strong Georgia!"
There are many strong communities in Georgia: Columbus, Dalton,
Rome, Cartersville, Albany, Bainbridge, Savannah, Macon,
Gainesville, Augusta, Valdosta, Brunswick, Statesboro, Moultrie and
many more. Outside of Atlanta, they are the driving forces of
Georgia's economy. But, they didn't just happen. They were made to
happen. The reasons for their beginnings are all different. But,
they all have one common attribute that served as a foundation for
their success. At some point in their history a visionary leader or
leaders emerged. They applied hard work, initiative, and courage.
The invested, raised capital and eventually formed
successful private-public partnerships to make
their communities strong. And, because the legacy of their
leadership continues with successive generations, their communities
continue to prosper and grow. But, that doesn't mean they are
content. They want to prosper more. And they will. But, they may
need help. Providing that help is a role of state leadership. We
will form public-public partnerships (state-local)
to capitalize on your local vision. It is your vision. But, the
vision will be enabled with the assistance of the state's resources
and willingness to assist. Where obstacles exist, we will help you
overcome them. Where infrastructure is needed, we will help you
build it.
Create More Strong Communities
Georgia has many communities that have potential to join this
group of success stories. And, Georgia needs them. Those that want
to grow and prosper must know that their vision is shared with their
state leadership. But, they must also know that they must be the
impetus. They must create effective private-public partnerships.
They must make local investment and work hard to solve local
problems within their means. The degree of effort they put forth,
will serve as testimony to their commitment and desire to become a
strong community and participate in Georgia's "new millennium
economy". And when they do, they must know that the state will do
its part to make their vision happen. That is my vision for you.
But, what is a successful public-private partnership? Since they
abound in Georgia, there are many examples to access. Successful
communities are more than willing to do so. I suggest that any
community in need of a model, contact the chambers of commerce of
some of the strong and successful communities. Every model won't
work for every community. Draw ideas that you think will work and
apply them. Those that do, develop them. Those that don't, toss them
aside and try a different approach. But, I don't want you to deduct
that I am throwing you to the wind. I'm not. Should I become your
governor, we will develop lists of "do's and don'ts" based on
existing success stories. We will survey your area and provide a
list of strengths and weaknesses. Combined with your willingness, we
will succeed together. On that, you can depend!
Intellectual Capital
Georgia has a great university system and an equally great system
of vocational institutions and programs. Together they provide an
abundance of intellectual capital and continue to provide Georgia
with a stream of intellectual capital necessary to meet Georgia's
growing needs. But these institutions are not the only resource of
intellectual capital. There is an abundance of intellectual capital
in many communities throughout the state. Entrepreneurs of small
businesses and retirees are an under-utilized source of intellectual
capital and a wealth of experience from the private sector and the
military. Clergy are often omitted from local public-private
partnerships. They shouldn't be. They have first hand knowledge and
experience working with impoverished neighborhoods within our
communities. They know the cause, extent and have prudent solutions
to overcoming problems that make communities unattractive to major
employers.
There is no "secret formula" that explains why
one community is strong and another is not. Strong communities are
strong because they utilize all of these resources wisely. They form
a vision and work hard to make it happen. The process is inclusive.
Communities that have the desire to become strong must do
likewise.
The Next "Atlanta"?
Is it possible there is another "Atlanta" story in Georgia? Could
it be Savannah? All of the ingredients seem to exist. After the G-8,
Savannah emerged as a "world class" city. The closest international
airports are Atlanta, Charlotte, Orlando and Tampa. (Jacksonville is
a major regional). Atlanta-Hartsfield-Jackson needs relief. Savannah
isn't too close. Is there a desire to make it happen? Then, it is
possible.
Leadership
Folks, that's my economic vision for Georgia. Do you doubt that
it can happen? It can, but have you noticed? Everything I've shared
to make Georgia stronger utilizes our greatest resource: Georgians!
Self-sufficiency must be our goal. Capitalizing on Georgian
ingenuity; Georgia's natural, financial and infrastructure
resources; Georgia's intellectual capital; Georgia's wealth of
leadership; and, Georgians partnering with other Georgians are the
components of the formula for Georgia's future success. But, none of
it will just happen. It will be made to happen. Making it happen is
going to take strong, visionary, courageous, innovative,
non-partisan, apolitical and focused leadership
that is passionate about Georgia's future! I believe that is the
commodity I bring to the table. Getting me to the table won't just
happen, either. Making it happen begins with you. You choose the
leaders. Choose wisely.
But, making Georgia stronger and
balancing our economy will require more than creating jobs. The same
leadership attributes are required in another important area-
governance, how we are governed. |
