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Text Size12/04/2003 21st Annual Georgia Economic Outlook Conference
Prepared Remarks of Governor Sonny Perdue
21st Annual Georgia Economic Outlook Conference
(Note: The Governor Sometimes Deviates From Prepared Remarks)
Thank you, President Adams.
I was thinking about what brings us all together today. It's that basic human desire to know the future and to look behind the curtain and sneak a peek at tomorrow.
Since the dawn of history, people have wanted to know what the future holds. And they've looked for answers in some pretty strange places. Tea leaves. Crystal balls.
In the Roman days, before the leaders made any major decision - like whether to go to war or start a new building - they'd all go down and visit the soothsayer.
He'd welcome the leaders, they'd all sit down, and then the soothsayer would grab a chicken. He'd take that chicken and he'd.
Well, I don't want to disturb anyone's lunch, so I'll describe this delicately.
The soothsayer would kill that chicken and he'd cut it open and he'd study its insides. That's about as gently as I can put it. And from those chicken insides, he could see the future.
Or at least that's what he told the leaders.
I'm a little skeptical myself. If chickens knew much about the future, we'd have had something else for lunch today!
Of course, today we don't have Roman soothsayers to tell us the future, but we do have economists.
And contrary to what some might say, it's not the same thing!
The fact is, none of us can truly know the future. We can only extrapolate from the facts that are available to us.
We're fortunate here in Georgia to have some talented economists, like Dr. Jeff Humphreys and his staff at the Selig Center for Economic Growth.
The Selig Center is a great resource for decision-makers in our state, in business and in government. The data they collect and make available are invaluable. The Economic Outlook report is a must-read.
Dean Benson will share that Georgia economic forecast with you shortly. And we're honored to have Dr. Behravesh here to share his national outlook.
They're going to give you their best professional judgment of what 2004 holds for us economically.
But what I want to talk with you about is not the future we might predict, but the future for Georgia that I am committed to.
I've described my vision as a healthy Georgia, an educated Georgia, a safe Georgia and a growing Georgia.
It is entirely up to us whether we create that kind of state for ourselves and our children. It rests entirely on us to make it happen.
And it begins with an individual determination in each of us to do so and an unshakeable optimism that we can.
Now, without a doubt, we've had a rough couple of years here in Georgia .
Eight quarters of slower than usual growth. Some of our biggest industries-like IT, hospitality, and transportation-were hit the hardest.
The national recession has caused great hardship in our state. Thousands of workers have lost their jobs. Many new graduates are unable to find that first job.
Across Georgia , families are gathered around the kitchen table trying to figure out how they'll make ends meet.
Business owners are burning the midnight oil, wondering if they'll have to let go workers or even close up shop.
We can see recession in black and white, whether in the family checkbook or on the balance sheet of our biggest companies.
And that includes state government. State revenues, as you know, declined for two years in a row.
When people are working less.earning less and spending less.when business is selling less and investing less.then less money flows into the state treasury. But there is one important difference between the state budget and the company budget.
When the economy slows, your businesses see less demand for its services.
For government, it's the opposite effect. In tough times, there is less state revenue, but there is greater demand for state services.
That leads to what you might call a fiscal crisis. And I think "crisis" is a fair description of what we've had to contend with.
But every crisis brings with it two elements: danger and opportunity.
The danger is failing to meet our obligations. The opportunity is realigning our spending with our most deeply held principles.
And making the decisions today that will create the future we want tomorrow. I'm committed to seizing that opportunity.
So your state government is doing what Georgia families are doing.
We're spending on what we must have, cutting back where we can, and sacrificing what we must do without until better times.
I've directed every state agency to rank in priority order every program and activity it administers.
I've also, in view of our fiscal picture, directed every agency to identify where it might make additional budget cuts if necessary.
I've been very proud of all our agencies for their hard work and diligence.
Now this process has produced a phenomenon that is predictable but regrettable.
Like those Roman soothsayers, it has to do with chickens predicting the future but in this case it's Chicken Little.
You've all heard the squawking.
Folks would have you believe that we'll soon be closing hospitals and rolling sick patients out to the sidewalk.
Or that we're closing prisons and turning dangerous felons loose to roam the streets at will.
I have to tell you, the Chicken Little routine wears a little thin after a while.
Yes, the budget remains tight. Our reserves are down. Revenues are not nearly back to where we were in 2000.
And, yes, that means we'll need to make additional cuts in FY05. Times remain tough.
So it is time to set those priorities.
It is time to align our actions with our principles. It is time to make the choices that will secure our future.
It is time to ask those you've elected to step up and do what they were elected to do-to lead
Yes, these are tough times, but we're not closing any hospitals.
Yes, these are tough times, but we're not closing any prisons.
And I'll tell you another thing we're not doing; w e're not raising any taxes.
No state anywhere ever taxed its way to prosperity, though more than a few have taxed prosperity away.
I've seen a few tax increase balloons floating in the late autumn sky recently.
But I want you all to know I'm a pretty fair wing shot.
They can float all the tax clay pigeons they want, but I'll shoot them down every time .
The people of Georgia have made their priorities clear. They are my priorities too. And my budget will reflect these priorities.
At the top of the list are the needs of children - their health, their care, their protection, and their education.
Parents want better schools, higher student achievement and higher SAT scores. As do I.
Georgia workers want jobs. I am laser-focused on providing them - in the short term, in the mid term, and in the long term.
I'm pleased that the job picture is looking better. The clouds seem to be breaking nationally.
Dr. Humphreys is quoted as saying Georgia 's economic performance will outdo that of the nation next year. I always like the sound of Georgia leading the way.
If by this time next year he's proven right, I'll buy him dinner. Anything but chicken.
So the job machine is in forward gear. The recovery has begun. is hopefully beginning . But that doesn't mean we can relax now and just coast into the good times ahead.
Instead, we must nurture this infant recovery and take steps that will extend our renewed prosperity, when it comes, far into the future.
We've managed our cash wisely through this difficult period and we've maintained Georgia 's AAA bond rating. I'm proud of that accomplishment.
With our excellent credit rating and with interest rates still low, now is an excellent time for us to invest in Georgia .
My budget will include bond packages that fund investments in Georgia 's long-term economic prosperity.
You'll need to tune in -- in January -- for all the details, but I'll give you a sense of the kind of strategic investments I'm talking about.
The jobs that will sustain a growing Georgia economy are knowledge jobs. They will demand a highly educated, highly skilled workforce.
That includes engineers, doctors, health care workers, and technicians of every kind. Our workforce is one pillar of prosperity.
A growing economy will also require a solid technology infrastructure, with a strong capacity for research and development as well as advanced manufacturing and logistics capabilities. That's a second pillar.
The foundation that supports both of these pillars is our higher education system, along with technical education.
Georgia 's university system is one of the best in the nation and therefore one of the best in the world.
It is the goose that lays the golden eggs and I'm committed to keeping that goose healthy.
So we'll be investing in key higher education projects. One I've already announced is the Nanotechnology Research Center at Georgia Tech.
We're going to leverage with a bonds investment the $36 million donation of an anonymous private donor to build this center.
I want to make Georgia a world leader in nanotechnology. That's the science of working with materials at the atomic level - literally making things atom by atom.
Nanotechnology promises to revolutionize every field from electronics to health care to transportation.
Nano-manufacturing will produce everything from tiny monitors that can navigate our blood vessels to powerful new fuel cells and electronic circuits.
Scientists believe that nanotechnology will revolutionize the production of just about every product human beings make.
Just yesterday, President Bush signed a bill to authorize new federal funding for nanotechnology research. Some project that nano technology will be a $1 trillion industry by 2015.
Yet we're still in the very early stages of nanotech's development. That means leadership in nano-research and, more importantly, nano-manufacturing is up for grabs.
Georgia will grab a global leadership position in nanotechnology.
This is the vision of Georgia 's future I am committed to.
Not just climbing out of the economic ditch, but leading our region, and the nation, into the recovery - building a true 21 st century economy based on our leadership in knowledge, technology and innovation, reforming our budget process and realigning our spending with our core principles, caring for children, strengthening education, and meeting the basic human needs of Georgians.
I believe better days are ahead. I know you do too.
But more than that, I believe that if we make the right decisions now.if we act with the right balance of boldness and discipline.then we won't have to gaze into a crystal ball to see what our future looks like.
We will build the future we want. We will build the Georgia we want our children to inherit.
That is where I want to lead our state because there is one more thing I believe.
I believe Georgia 's best days are still ahead.