The governor addressed the

budget challenges Georgia faces, and announced that he had found enough

money to fully fund the homestead exemption at $10,000 and make it permanent.

The previous administration had tied the exemption to the surplus, so

without a surplus, the exemption disappeared. In the future, rather than

being a mere contingency, the money for the exemption will be specifically

funded in a straightforward manner.

Redistricting was another issue

the governor addressed, saying that new district lines should be determined

input first, then make the best decision for the people of the state.

Gov. Perdue likened the situation

in Georgia to an airplane ride, with some turbulence ahead. But he is

confident we will break through the dark clouds and rise to a brighter

future than we have known before.

House Republicans continued

their work on the budget [last] week, seeking additional ways to cut state

spending to avoid tax increases. Republicans met with experts from across

the country who have assisted other states with budget difficulties and

have begun putting together a plan to assist the Governor.

The governor acknowledged the

contributions of the House Caucus during his press conference announcing

the homestead tax exemption would be saved.

Moving forward to work to restore

trust in government, the governor's floor leaders unveiled the first part

of the governor's ethics package. The proposal addresses four areas of

ethical behavior in government officials. Specifically, the proposal:

(1) restricts candidate-to-candidate transfer of campaign funds, (2) stops

legislative lobbying on behalf of inmates to the Board of Pardons and

Paroles and Department of Corrections, (3) prohibits soliciting pledges

of campaign contributions during the legislative session, and (4) restructures

the Ethics Commission to make it more efficient and effective.

The package is the first of

a series of ethics legislation the governor plans to offer before the

session is complete.

After an announcement that

Standard and Poors and Moody's were both withdrawing their ratings of

the mortgage market in Georgia, legislators began working to repair the

Georgia Fair Lending Act passed during the last legislative session. The

law was intended to prevent unscrupulous lenders from taking advantage

of those obtaining loans, but may adversely affect anyone trying to obtain

a loan in Georgia. Legislation has already been introduced in both the

House and Senate to deal with the problems; hearings are underway, and

action should be taken [this] week.

House members were in session

all week, and began committee meetings after receiving their assignments

from the speaker. The Rules Committee will decide which bills come to

the floor of the House each legislative day.

The House [was to] be in session

on Monday and Tuesday, then adjourn for Wednesday, Thursday and Friday

to continue work on the budget.

Rep. Chris Elrod, a freshman

Republican Representative from Jackson County, was called up on active

duty to serve his country last week. He is stationed in South Carolina

and his tour of duty could last a few weeks or up to a year. He has been

in the Coast Guard Reserves for five years and was called up to assist

with port patrols as additional troops go to the Persian Gulf. Our thoughts

and prayers are with Rep. Elrod and we are grateful for his willingness

to serve his country and his state!

[This report is furnished by

the Georgia House Republican Caucus, composed of House Minority Leader

Lynn Westmoreland of Sharpsburg; Jerry Keen, Republican whip; Sharon Cooper,

chairman; Warren Massey, vice chairman; and Sue Burmeister, secretary.]