Just in Time for April 15… the Pros and Cons of Tax Simplification

Never let it be said that Clayton State University’s New York Times Talks aren’t, well… timely.

The next New York Times Talk, scheduled for Tuesday, Apr. 14, will feature Dr. Nikki Finlay, associate professor of Economics in the Clayton State School of Business, who will facilitate a discussion on the “Pros and Cons of Tax Simplification” from 11:15 a.m. to 12:30 p.m. in room T152 of the University’s new School of Business building. All of the New York Times Talks are free and open to the public.

“This is a timely talk — one day before taxes are due,” notes Dr. Joe Corrado, campus coordinator of the American Democracy Project.

And, just to provide a timely reminder that there is such a thing as a free lunch, a free lunch is provided courtesy of the New York Times.
For more information, contact Corrado at joecorrado@clayton.edu or call (678) 466-4803.

A unit of the University System of Georgia, Clayton State University is an outstanding, comprehensive metropolitan university located 15 miles southeast of downtown Atlanta.
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Panel Discussion to Address Impacts of Today's Economy on Retirement

Behind The Headlines: Making the Most of Your Retirement targeted to 70 + age group

WHO: Discussion members include Donna Barwick, J.D., Senior Director of Wealth Management for The Bank of New York Mellon; Henry Bowden, founder of The Bowden Law Firm; John J. Geraghty, Executive Vice-President of SunTrust Bank; Jim Hansberger, Managing Director, The Hansberger Group; and Michael A. Mohr, Managing Director of The Bank of New York Mellon in Atlanta. Emory Schwall, an Atlanta attorney, Certified Estate Planner and Special Assistant Attorney General for the State of Georgia representing the Insurance Commission, will moderate the discussion.

WHAT: Just how has the change in economy affected retirement? What’s it going to take to retire with security, manage long-term health care, and protect one's estate? Where are the financial risks? A panel of financial experts will discuss these questions and more at the discussion, “Behind the Headlines: Making the Most of Your Retirement.” The discussion will address estate planning, asset allocation, health care management, living wills, retirement strategies and other topics of interest to the 70+ age group.

WHEN: Monday, March 16, 2009, from 2:00 p.m. to 4:00 p.m.

WHERE: Woodruff Auditorium of the Atlanta History Center

WHY: The panel discussion is in response to recent news stories about the economy, much of which is aimed at baby boomers and their challenges, but little directly relating to people already enjoying retirement. The event is one in a three-part series hosted by Peachtree Hills Place, a residential community offering a continuum of care in Buckhead for people ages 55 and older, that will discuss the issues directly affecting this demographic.

Please Note: The event is free and open to the public, but registration is required. For more information or to register, call Peachtree Hills Place at 404-467-4900
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Governor Perdue Announces Bond Sale, Confirms AAA Ratings

Governor Sonny Perdue today announced the upcoming sale of up to $613,850,000 tax-exempt bonds, currently scheduled for Feb. 2 and 3, through negotiated sale. This method of sale gives retail investors the ability to buy Georgia bonds directly by placing orders on the day of the sale with their brokerage firm. By expanding the investor base and increasing demand, the state expects the transaction to result in a favorable outcome for both the buyers and the state.

“In these challenging economic times, this bond offering gives Georgians the opportunity to invest in their own state while strengthening their portfolio,” said Governor Perdue. “At the same time Georgia investors add a stable investment and tax-free interest to their collection of investments, they will also help to build schools, roads and other projects that put their neighbors to work.”

The Georgia State Financing and Investment Commission (GSFIC) approved the sale of the bonds at its Dec. 3 meeting.

Moody's, Fitch, and Standard & Poor's have assigned their triple-A bond rating with a stable outlook to the State's General Obligation Bonds. The rating firms' individual ratings are Aaa, AAA and AAA, respectively. The triple-A ratings reflect the highest rating available to government issuers and demonstrate what a great value Georgia municipal bonds are to investors. The bonds are backed by the full faith and credit of the state of Georgia and, subject to the limitations and conditions described in the Official Statement relating to the Bonds, interest on the bonds is, in the opinion of bond counsel, excludable from gross income for federal and Georgia state income tax purposes.

Individuals can learn more about the Series 2009A and Series 2009B General Obligation Bonds at www.buygeorgiabonds.com.

The bond sale is a part of the capital outlay program approved in the state’s 2009 budget. In his 2010 budget proposal, Governor Perdue recommended an additional $1.2 billion in bond projects, which will create approximately 20,000 jobs. While that amount is higher than previous years, it also keeps the state in line with its debt management plan and well below the state’s bond capacity and debt ceiling.

“These top bond ratings affirm that our proactive, conservative fiscal practices and our good management of the state’s debt structure put Georgia in better shape than most states,” Governor Perdue added. “These ratings will save the state in the form of lower interest rates, and will generate attention from potential buyers looking for a stable, low-risk investment option.”
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Isakson, Conrad Introduce Legislation to Investigate Near Collapse of Banking System

U.S. Senators Johnny Isakson, R-Ga., and Kent Conrad, D-N.D., today introduced legislation to create a Financial Markets Commission that will be charged with fully investigating the near collapse of the banking system and the loss of tens of trillions of dollars.“When Enron and WorldCom failed at the start of this decade, Congress rushed to legislate and regulate without all the facts,” Isakson said. “We need to make sure we don’t repeat that reaction as we seek to recover from today’s financial crisis.”

“If our nation is going to learn from history, we must know exactly what happened and why. We need to take a long hard look at how our financial system spiraled downward so far so fast. And if there was any criminal wrongdoing, people need to be held accountable,” Conrad said. “The final report of this commission will help create the rules that will help shore up our national economy and help make sure this does not happen again.”
The seven-member, bipartisan Financial Markets Commission will be modeled after the 9-11 Commission, which thoroughly and independently investigated the failures leading up to the September 11, 2001, terrorist attacks and made sound recommendations on where we needed to improve to prevent another attack in the future.

Likewise, the Financial Markets Commission will have one year to investigate all the circumstances that led to this financial crisis. The panel will have the authority to refer to the U.S. Attorney General and state attorneys general any evidence that institutions or individuals may have violated existing laws. At the end of its investigation, the Commission will report to the President and to the Congress its recommendations for statutory or regulatory changes necessary to protect our country from a repeat of this financial collapse.

This bipartisan Commission shall include two appointees by the President and one appointee each from the Speaker of the House, the House Republican Leader, the Senate Democratic Leader, the Senate Republican Leader and the Chairman of the Board of Governors of the Federal Reserve System.
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Senate Subcommittees Examine State Agency Programs

Sen. Mitch Seabaugh (R-Sharpsburg) chaired a joint meeting of the Senate Fiscal Management Subcommittee and the Best Value in Government Task Force today at the Capitol. Members of both committees gathered to discuss agency reports, efficiencies, and cost savings for the Departments of Audits, Revenue, Banking and Finance, and Administrative Services, as well as the State Accounting Office, State Properties Commission/Georgia Building Authority, Georgia Technology Authority, and the Office of State Administrative Hearings.

“With the current economy causing a significant impact in state revenues, it’s imperative that we find budget savings and efficiencies everywhere we can in order to be fiscally responsible, and to ensure that we fund programs that are fundamental to the role of government in Georgia,” said Sen. Seabaugh.

Each agency presented an overview of programs, efficiencies, and cost savings that have been implemented. The current budgets were submitted and several agencies were asked to provide further detailed information on particular programs or services. Members of the committee focused on uncovering duplicated services between agencies, and encouraged making as many programs self sufficient as possible.

The committee also heard testimony from Commissioner Bart Graham of the Department of Revenue, State Accountant Greg Griffin with the State Accounting Office, State Properties Commission/Georgia Building Authority Director Steve Stancil, Georgia Technology Authority Director Patrick Moore, Department of Audits Commissioner Russell Hinton, Commissioner Rob Braswell of the Department of Banking and Finance, Commissioner Brad Douglas of the Department of Administrative Services, and Chief Judge Lois Oakley with the Office of State Administrative Services.

The Senate has been holding similar joint workshops over the past several months at the request of Lt. Governor Casey Cagle, who has charged the Senate to proactively identify non-essential government services and maximize efficiency and value in our state government. Several of the topics that have been covered include transportation, education, natural resources and community health.
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Oxendine: No Formula for Diminished Value

Insurance Commissioner John W. Oxendine issued a directive late last week informing automobile insurance companies licensed to conduct business in Georgia about the proper handling of diminished value claims.

Oxendine ordered all auto insurance companies to cease using any language that implies that the Georgia Insurance Department has endorsed or approved a particular formula for determining diminution of value in physical damage automobile claims. Diminished value refers to the loss of value in a vehicle that has been damaged and repaired. The Commissioner issued a previous directive in 2001 regarding the Georgia Supreme Court ruling that set precedent for diminished value claims. Now the Commissioner wants to be sure that companies understand there is no single formula for determining the amount of diminished value to be paid in a particular claim.

“There seems to be some misunderstanding in the industry that a particular formula exists for diminished value,” Oxendine said. “I want to clarify the matter by reminding insurers that my office has never issued any regulation requiring the use of a specific formula for determining diminished value, so each claim should be evaluated on its own merits.”
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Oxendine Orders Blue Cross to Reimburse $12 Million

Insurance Commissioner John W. Oxendine announced today that he has ordered Blue Cross and Blue Shield of Georgia, Inc. to make additional claims payments of $12 million for certain ambulance services rendered to its policyholders that were improperly reimbursed.

The consent order is the result of a market conduct exam initiated by Oxendine’s office which revealed that Blue Cross incorrectly reimbursed out-of-network ambulance providers for services rendered. In a number of instances, Blue Cross made inconsistent payments for comparable ambulance services. In other cases, Blue Cross failed to increase its reimbursement rates over a number of years, in spite of the increasing costs of providing ambulance services.

“The proper payment of claims for emergency services is vital to the maintenance of our trauma system and equally important to protect consumers from excessive balance billing. I want insurers to know that I expect providers to be paid according to the requirements of Georgia law,” Oxendine said.

As a result of this action, Blue Cross has also been ordered to increase reimbursement rates for future out-of-network ambulance services. “Resolving prior practices is only part of the solution,” Oxendine said. “We must ensure that insurance companies reimburse medical providers and policyholders in a fair and equitable manner.”
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Governor Sonny Perdue’s Remarks to the Georgia Economic Outlook Luncheon

Our nation faces an economic storm that many are calling the most troubling of our generation. And though that may be true, just yesterday, I sat in the chambers of our nation’s first Capitol at Congress Hall and thought about the utter resiliency of our nation, of our people, of America.

During the almost ten years it served as our nation’s capitol building, Congress Hall witnessed many historic events: three states were admitted to the Union under its roof, the Bill of Rights was ratified there in 1791. The second Presidential inauguration of George Washington took place in the House chamber in 1793, as did the inauguration of President John Adams in 1797.

But, I was quickly jolted back to the reality, that while we can learn from history and prepare a vision for the future, we may only act in the present. An old proverb says, “Vision without action is merely a daydream, while action without vision is a nightmare.”

I joined my fellow Governors in Philadelphia for what the media described as states begging for a Washington bailout. Well ladies and gentleman, let me be the first to tell you … the meeting was anything but that.

From Georgia’s perspective, our meeting with President-elect Obama was not intended to ask the federal government to fill a hole in our state budget. As a matter of fact, it was just the opposite. Many Governors shared what we are doing to balance our budgets, and live within our means.

As President-elect Obama considers putting together a stimulus package, we encouraged him to look at our country’s long term needs – investing in projects, not in budgets. Simply doling out money to states to fill budget gaps is no different than handing it out to companies with flawed business models. I believe it is imperative that we ensure that any stimulus avoids creating an undue burden for the future generations who will be left to foot the bill.

I'm sure you've heard T. Boone Pickens decry what he calls the "greatest transfer of wealth in the history of mankind" between America and other countries. But what troubles me, and many of my fellow Governors, is that this bailout fever sweeping through our economy will result in the greatest transfer of debt in America's history to our sons, daughters and grandchildren.

As we wrapped up nearly two hours of open, candid discussion, looking at America’s future from both the federal and state perspective, I am confident that many of my fellow Governors, as well as President-elect Obama, realized how much we all had in common when it comes to getting America back on track.

I was especially encouraged that we were able to put partisanship aside. Everyone in the room recognized that governors must be engaged to ensure that America’s economic health is restored. Despite the bitter campaign that has raged, the spirit in Congress Hall yesterday was one of collaboration, and I was proud to be a part of it.

We talked a lot about the issues we are facing in our own states, but we also took a collective message insisting that the federal government act as we governors are forced to year after year balancing the budget, in good times and in the lean years.

Ralph Waldo Emerson said, “This time, like all times, is a very good one if we but know what to do with it.” Or, as one of my fellow governors said yesterday, “A crisis is a terrible thing to waste.”

Here in Georgia, we have been and will continue to take a hard look at the ship of state. Any ship at sea is going to pick up some barnacles along the way and at times like these you clean up the ship, making it more responsive and efficient.

Georgia, like other cities and states across America, has been affected by this ebbing tide throughout our national economy. But I can assure you we are plotting a course through rough seas just as we’ve done before, with a ship that is strong and built to last.

Since I have been office, we have made the prudent moves to position our state for growth and prosperity. We kept doing the things that are necessary, but we tightened our belts … Government got leaner, more efficient and more focused on delivering value for the taxpayer dollar.

Most importantly, we did the simple exercise that Georgia families do around the kitchen table every month balancing their checkbooks – we did what we had to do to make ends meet.

After Georgia went through a similar turbulent period six years ago, we spent conservatively and began building a rainy day fund – an action for which we were accused of hoarding money, of not spending enough.

Georgia is a state that has bounced back in the past, and that will continue to bounce back. And once again, we are poised to lead the nation in recovery.

Last year, the Pew Center ranked Georgia one of the best managed states in the nation. So it’s no surprise that Forbes currently ranks our business environment 5th best in the nation … Thanks Steve, we hope to be number one after today’s lunch.

Just recently, Newell Rubbermaid and NCR, both Fortune 500 companies, expanded their headquarters’ operations in Georgia and construction of the Kia plant continues to progress in West Point. And over the past seven years, our OneGeorgia Authority has awarded rural Georgia more than $230 million, resulting in total project investment exceeding $4 billion, while creating more than 40,000 jobs.

This is exactly the kind of investment that results in long-term, sustainable growth and could be a model for the nation.

Now it’s natural that the good things happening in our state are overshadowed in times like these, but I remind you of them today because we have enabled Georgia to weather this economic storm better than many other states.

This year, state revenues are down and probably do not fully reflect the damage from the most recent economic turmoil. But, we will manage this downturn well just like we did six years ago. We will emerge more focused on our basic tasks – leaner and stronger. We will be prepared to take advantage of business looking to invest when the national economy rebounds.

In closing, I would like to share something I read earlier this week about the origins of Thanksgiving.

In 1621, just months after 100 settlers came over on the Mayflower, Plymouth Governor William Bradford set aside a day for thanksgiving. They had sailed across the Atlantic Ocean on a trip that took two months, crammed into an area maybe half the size of your house. That first year; nearly 50 men, women and children died.

Now, let’s look at 1621 and 2008 side by side. In 1621, within a matter of months, nearly every family in that group had lost – not a job, not a big percentage of their 401k, not their house, not their business – but, a loved one. They were scratching out an existence, holding on for dear life, sometimes surviving, sometimes unable to sustain themselves or their families.

In the midst of their trials, Governor Bradford asked his people to be thankful for what they had and for the future that lay in front of them. He led the group with optimism and a hopefulness about the future based on a firm reliance on God.

That is the DNA from which we come … It is that strength of character and confidence from which we can build our future.

In the days ahead, we need – as a people – to recapture that faith and hopefulness. Georgia has been through rough seas and emerged each time stronger than before. Our best days are ahead; and while there will be some tough choices, it is up to us to confidently lay the groundwork that our rebound will be built upon.

Thank you and God bless!
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Oxendine Announces Arrest of Suspects in Insurance Fraud Bust

Insurance Commissioner John W. Oxendine said arrest warrants have been issued on 19 suspects in an insurance fraud ring that allegedly collected $995,641.75 in misappropriated claims from a Japanese insurance company.

The suspected ringleader, Ken Dewberry, 42, of Lawrenceville, worked for Sompo Japan Insurance Company of America at the time the theft occurred -- March 1, 2001 to March 30, 2004. He has been charged with 30 counts of theft by taking, as well as charges under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.

“Someone at the Sompo Atlanta office was changing the names and addresses of vendors and then requesting and distributing medical claim checks to people that had not performed any services on the claimants,” Oxendine said. “Our investigation has led us to suspect Ken Dewberry.”

A total of 473 checks were issued to 21 different individuals. Oxendine said the checks were cashed by the individuals, who typically kept some money for themselves and then passed the rest to Dewberry. Dewberry’s financial records during the time of loss show approximately $154,000 in unexplained deposits into his checking and savings accounts. Also, personal connections can be drawn between Dewberry and nearly all of the check recipients, many of whom he knew from previously living in New York.

A total of 19 suspects will be charged under the RICO Act in connection with the case, and other charges are possible, Oxendine said. Besides Dewberry, the suspects include: Raymond Santana, 43, address unknown; Henry Rolle, 43, Atlanta; Terence Hover, 35, Decatur; Dujuan R. Free, 27, Atlanta; Frederick Brown, 28, Decatur; Henry Free, 43, Forest Park; Marcus Battle, 27, Marietta; Katie Winborn, 28, College Park; Mario Starks, 29, College Park; Victor Devalia, 31, Atlanta; Christopher A. Hinds, 34, Marietta; Dana Hunter, 38, Lawrenceville; Jeffrey L. Thompson, 39, Lithonia; Eric Charles Ridenhour, 44, Atlanta; Curtis Broussard, 48, Austell; Frederick Isaac, 39, Stone Mountain; Sandra Lamore, 36, address unknown; and Lawrence Scott, Duluth.
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Tightened credit, Reduced Demand Push SBA Loan Volume Down in FY 2008; Agency Works with Banks To Jumpstart Small Business Lending

A “perfect storm” of tightened credit by commercial lenders, declining creditworthiness, and reduced demand for loans from small business borrowers uncertain about the future has led to a substantial decline in the number of small business loans guaranteed by the U.S. Small Business Administration during FY 2008, SBA Acting Administrator Sandy K. Baruah said today.

Although SBA posted a record year in 2007 with nearly 100,000 loans approved, that number dropped by nearly 30 percent in 2008. The dollar value of those loans declined by 13 percent, from a combined $20.6 billion in 2007, to $17.96 billion in 2008. Average loan size increased from $142,000 in FY 2007 to $183,000 in FY 2008, demonstrating that by increasing the average amount, these loans may in fact contribute to expanding more sustainable and successful small businesses.

Georgia experienced the same downward trend in loans. The total number of SBA guaranteed loans dropped by nearly 29 percent in FY 2008 while the dollar amount for these loans decline by nearly 15 percent. During the past fiscal year 2,218 SBA loans were approved in Georgia for approximately $671 million. In FY 2007, the agency approved 3,111 small business loans for approximately $789 million.

These program declines began not long after the fiscal year started in October 2007, and accelerated throughout the fiscal year.

The volume numbers represent loans made under SBA’s two primary loan programs, the 7(a) guaranteed loan program and the Certified Development Company, or 504, loan program. Loans approved under 7(a) declined by 30 percent, from 99,606 in 2007 to 69,434 in 2008, with loan dollars falling 11 percent, from $14.3 billion in 2007 to $12.7 billion in 2008. In the 504 program, loan approvals fell by 17 percent, from 10,669 in 2007 to 8,883 in 2008, and loan dollars declined by 16 percent, from $6.3 billion in 2007 to $5.3 billion 2008.

Loan volume in both programs had set records in each of the previous five years.

Baruah said he feels strongly that the steps taken by the Administration and Congress will have a positive effect on the credit situation and the economy. The SBA is holding meetings across the country to better understand how the agency can work with both lenders and small businesses to help them during these difficult economic times.

“I am very hopeful,” said Baruah. “I am hopeful because I have seen this great nation tackle and overcome all sorts of challenges in just the last few years. From the Y2K scare, to the bursting of the dot-com bubble, to the 9-11 terror attacks, to corporate scandals, and large natural disasters, we’ve proven that we can take a hit and keep on growing – it’s one of our unique strengths as Americans.

“President Bush and his economic team have been doing everything possible to resolve the financial crisis and restore stability to the markets, aggressively using every tool available on every front to unclog the pipes of our credit system, increase liquidity, and restore confidence in all facets of our economy,” he said.

“The recently signed Emergency Economic Stabilization Act of 2008 does this by giving the government new tools to unclog the arteries of our financial system, allowing credit and capital to flow once again,” Baruah said. “And that objective should be important to all of us because capital is the lifeblood not only of our economic system but also small business.”

The rescue plan also authorizes FDIC to expand insurance to cover all non-interest bearing accounts, which are commonly used by small businesses to cover day-to-day operations including payroll and inventory purchases.

Also, the Federal Reserve will soon become the buyer of last resort for commercial paper. By unfreezing the market for commercial paper, which provides short-term financing for banks and businesses, this action will help businesses of all sizes meet payroll, purchase inventory, and invest to create new jobs.

“All these efforts will need time to fully work their way through the economic system,” Baruah said. “But when they do, we will see results. We will see money and credit and capital flowing once again, making a big difference for small business, whose lifeblood depends upon access to capital.”

Baruah also said SBA is taking steps to encourage the flow of credit to small businesses.

Among the steps taken by the agency are:
· Working to improve the liquidity of SBA loans on the secondary market and exploring strategies to increase access to capital by small businesses.

· The accelerated launch of Small Rural Lender Advantage ahead of schedule, which targets smaller financial institutions – like community banks – and institutions with low SBA volume.

· Encouraging SBA’s lending partners to use their authority to work with qualified borrowers on a case-by-case basis and defer SBA guaranteed loan payments by up to three months.

· Reminding lenders and borrowers that interest rates have fallen with the prime rate, and are now about 40 percent less than a year ago.

For more information on how to get an SBA loan, visit www.sba.gov.
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Isakson, Chambliss Urge Treasury to Address Needs of Community Banks

U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., today sent a letter to Treasury Secretary Henry Paulson urging him to give community banks access to the Troubled Asset Relief Program authorized by the Emergency Economic Stabilization Act.

It is the second letter Isakson and Chambliss have written asking Paulson to address the needs of community banks in Georgia and across the country.

The text of the letter is below:

Dear Secretary Paulson:

Recently, we have learned of Treasury’s efforts to expand the government's financial rescue plan to include non-publicly-traded banks. We are again writing to urge you to give close review and a favorable decision that permits both publicly-traded and privately held community banks access to the Troubled Asset Relief Program authorized by the Emergency Economic Stabilization Act.

In our enclosed letter of October 21, 2008, we stress the vital role these banks play in our communities for both small businesses and individuals. We hope that these concerns will be at the forefront of your deliberations on the matter.

Sincerely,
Saxby Chambliss
United States Senator
Johnny Isakson
United States Senator
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Isakson, Chambliss Urge Delta Air Lines, Pilots’ Union to Reconsider Termination of Retired Pilots’ Pensions

U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., today sent a letter to Delta Air Lines CEO Richard Anderson and Captain Lee Moak, Chairman of the Delta Air Lines Master Executive Council, urging them to reconsider a proposal to make a voluntary contribution to the Pension Benefit Guaranty Corporation for the benefit of retired Delta pilots and to work toward finding a solution that protects the earned benefits of employees and retirees alike.

The text of the letter is below:

Dear Mr. Anderson and Captain Moak:

As you know, we worked tirelessly on behalf of the Delta employees, retirees, and their families to pass into law provisions allowing airlines to spread their pension plan funding over a more manageable schedule. We did this to protect the 91,000 Delta Air Lines pensioners and family members in Georgia from losing their pensions and to help protect American taxpayers from having to pay for those airline pensions.

We understand that over 5,500 retired Delta pilots have had their retirement plan terminated and turned over to the Pension Benefit Guaranty Corporation (PBGC). Our understanding is that a majority of retired Delta pilots receive only a small percentage of the monthly retirement benefit they earned while employees of Delta. We are also told that a number of retired pilots receive zero benefit from the PBGC, and many more get a monthly PBGC payment that equals half or less than half of their Social Security benefit check. Finally, we are told that Delta will be assuming the pension liabilities for over 30,000 Northwest employees and retirees.

A group representing thousands of retired pilots recently sent a proposal to you, Mr. Anderson, asking Delta to make a voluntary contribution to the PBGC that would partially correct this issue. They also raised the issue at the September 25, 2008 shareholders meeting. As proponents of legislation designed to save these pensions, we were disappointed to hear that the response from Delta at that meeting was that this was considered a closed issue.

We urge you both to reconsider your positions, and to work towards finding a solution that protects the earned benefits of all employees and retirees. We appreciate your attention to this matter, stand ready to assist you in any way possible, and look forward to your response.

Sincerely,
Johnny Isakson
United States Senator
Saxby Chambliss
United States Senator
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In an Effort to Help Small Businesses, SBA Encourages Lenders to Offer Loan Deferment Relief

In response to the financial crisis, the U.S. Small Business Administration today announced it is strongly encouraging its participating 7(a) lenders and Certified Development companies to work with business borrowers to provide them with the flexibility they need to keep their businesses running during these difficult economic times.

As access to credit and capital has tightened, many businesses face increased challenges in meeting their financial obligations. This is especially true of small businesses hit hard by the recent economic slowdown that are now unable to make payroll, or purchase essential inventory.

SBA is reminding participating lenders they have the authority on a case-by-case basis to extend temporary payment relief for qualifying borrowers with 7(a) and 504 loans who are struggling to make their payments.

“The SBA is here to help small businesses during these difficult economic times. We are encouraging our lending partners to follow suit by extending three-month payment deferments on their SBA guaranteed loans to qualified borrowers who need relief,” said SBA Acting Administrator Sandy K. Baruah. “We recognize that small business owners are faced with challenging decisions right now. By providing three-month deferments to qualifying borrowers who are struggling, our lending partners can help small business owners free up the capital they need to maintain their businesses.”

If a deferment longer than three consecutive monthly payments is needed for a loan, borrowers can work directly with their lenders who in turn will work closely with the SBA to identify the best solution.

At the same time, the SBA is asking its lenders not to broadly call borrower loans due to changing financial variables, such as fluctuations in personal credit scores, declining collateral values, and reduced home equity, which are currently affected by the disruption in the financial markets. The SBA has issued a notice that will be distributed widely to its lenders and 120 field offices encouraging them to look at these cases individually and to work with individual borrowers in order to facilitate the longer term success of these small businesses.
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Isakson Urges Treasury, Federal Reserve to Enforce Stronger Accountability on AIG

U.S. Senator Johnny Isakson, R-Ga., today sent a letter to Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke to convey his disgust at the behavior of the American International Group and demand stronger accountability in light of the government’s loan to the company.

The text of the letter is below:

I write to convey my absolute disgust toward the American International Group Inc. for spending nearly $440,000 on a lavish retreat just days after the federal government provided $85 billion in taxpayer dollars to shore up the company.

This financial crisis has cost people their jobs and put small businesses at risk. It has ransacked individual retirement accounts and frozen the credit available for businesses, home purchases and car purchases. The people affected by our current financial situation are suffering and do not deserve to watch their hard earned taxpayer dollars spent on spa treatments and golf outings for AIG employees. AIG should return the public’s money used for this retreat – every penny of it.

In addition, the recent announcement of the Federal Reserve exchanging up to $37.8 billion in securities from AIG in return for cash collateral also concerns me. It is hard to feel sympathetic for a company that exercises such poor judgment. Please ensure that the Treasury Department uses its full enforcement powers to prevent any misuse of taxpayer funds.

To make matters worse, the company is scheduled to hold another retreat in the coming weeks. This is unacceptable and I urge the Treasury to enforce stronger accountability and impose stricter limits on compensation and perks.

Thank you for your consideration of my request.
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Senator McCain on Federal Reserve Cut

U.S. Senator John McCain today issued the following statement on the Federal Reserve cut:

"I applaud the move by the Open Market Committee of the Federal Reserve and other national monetary authorities to reduce interest rates to address the financial crisis spreading across the globe. It is imperative at this moment that government be responsive to the needs of Americans, restore confidence in our financial system, provide assistance to struggling homeowners, and implement pro-growth policies that will create jobs and provide a foundation for a more prosperous future. That is why last night, I called for an American Homeownership Resurgence Plan -- a plan to use taxpayer money not just to bail out Wall Street, but instead to keep families in their homes and to stabilize financial markets from the bottom up. I am committed to protecting the American worker in this crisis. I am dedicated to reforming the corruption in Washington and on Wall Street that is the root of the financial system meltdown. I will get the economy back on track ."
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Westmoreland Opposes Bailout

U.S. Rep. Lynn Westmoreland today voted against the $700 billion bailout plan, but pledged his support for returning to work on the issue immediately after Rosh Hashanah.

“As the financial crisis has unfolded over the past year, we’ve slowly watched the dominos drop one after another and we’ve seen one bailout after another,” Westmoreland said. “Each time we were told: ‘This bailout is going to fix the problem.’ We’ve already spent hundreds of billions of dollars that our government does not have and yet the problems continue to deepen. I’ve read all the documents and listened to the experts and no one can say – not even with nearly $1 trillion on the line – that this will work.

“Undoubtedly, this is one of the toughest votes that I’ve taken in Congress. When faced with a tough decision, I rely on my principles – that smaller government is better and that markets work better bureaucratic decisions. While this bailout may work in the short term, I’m concerned greatly about the long-term consequences. When government willingly steps in to rescue people from risky behavior, government creates an incentive for future risky behavior. When businesses accept greater regulation in order to receive a bailout, we enlarge government, distort markets and render capitalism less efficient.

“I do believe that our nation faces great financial challenges right now, and I believe that Congress should act. But the House should not appropriate up to $700 billion for a bill that didn’t exist until a few days ago and that never went through one committee hearing. This legislation costs way too much to pass through Congress with so little scrutiny. If the process is broken, the product is flawed. Combined with war costs, other bailouts and the stimulus packages, we can’t afford to be wrong with a price tag this high.

“I have supported an alternative plan that would lower taxes and regulations to create an incentive for private money, foreign and domestic, to flow back into the credit markets. Unfortunately, alternative versions were shut out of this closed process.”
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John McCain On Today's House Vote

"I speak to you at an hour of crisis for our nation's economy.

"I believe the crisis facing our economy could have a grave impact on every American worker, small business owner, and family if our leaders fail to act.

"I share the anger and frustration that many Americans feel toward reckless and corrupt mismanagement on Wall Street and in Washington.

"I returned to Washington last week to work on a bipartisan rescue plan. It was the only plan at that time on the table but lacked enough support to pass. It also lacked sufficient accountability and transparency to justify expenditure of the taxpayers' money.

"At the time, the concerns of all members were not being heard. My colleagues were worried about the size of the plan and the risk it posed to taxpayers. I shared those concerns and I laid out principles that I thought must be adhered to. Those principles included responsible oversight, effective transparency, added protections for the taxpayers, and a cap on excessive salaries for executives.

"I also believe that the legislation should have no earmarks. I worked hard to play a constructive role in bringing everyone to the table. The plan is now significantly improved. We strengthened taxpayers' protections and oversight, and the taxpayers were on the hook for less money up front. Don't get me wrong - it isn't perfect. And the fact that taxpayers could have to spend a single dollar to create stability in our economy is a decision that I do not take lightly.

"I was hopeful that the improved rescue plan would have had the votes needed to pass because addressing a credit crisis is of vital importance to families, small businesses, and every working American who must be assured that their assets are safe and protected and that our economy will continue to function.

"Today, I've spoken to the Federal Chairman Bernanke, Secretary Paulson, Congressional leaders and now it's time for all members of Congress to go back to the drawing board.
"I call on Congress to get back obviously immediately to address this crisis. Our leaders are expected to leave partisanship at the door and come to the table to solve our problems. Senator Obama and his allies in Congress infused unnecessary partisanship into the process. Now is not the time to fix the blame. It's time to fix the problem.

"I would hope that all our leaders, all of them, can put aside short-term political goals and do what's in the best interest of the American people. Thank you."
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McCain-Palin Campaign Conference Call On Democrats' Failure To Pass The Economic Recovery Bill

"So there was a genuine failure that was facing America and Senator McCain accepted the challenge, suspended his campaign and returned to Washington with the intent of delivering to the American people the relief that they certainly need and in doing so was hoping to build a bipartisan effort to provide that relief." -- Doug Holtz-Eakin, McCain-Palin Senior Policy Adviser

Today, the McCain-Palin campaign held a press conference call with Doug Holtz-Eakin, McCain-Palin senior policy adviser, on the Democrats failure to pass the economic bailout bill:

Doug Holtz Eakin: "Today is obviously a very, very sad day for American families, for businesses, for the everyday life of the economy's ability to function, and a day that we hope to put behind us as quickly as possible. As the Senator said, in the end, it is time for the House and the Senate to regroup, to go forward in a bipartisan fashion, and to find a way to stabilize the financial markets and stop this great rift in the American economy. Before I open it up to questions, I do want to take this opportunity to dial the clock back a little bit and explain exactly what John McCain has done for the past week, and in the process hopefully lay to rest some of the charges that I don't think are exactly merited.

"Beginning a little less than a week ago, John McCain recognized that we had three great problems. Number one, we had an economic problem, a financial market which was both destabilized in and of itself and threatening to get to the point, that sadly we are very close to, where ordinary businesses cannot borrow simply to hold their inventory, to bridge the gap to make their payroll, and indeed the things that are conventional in a large modern economy.

"He also recognized that the solution that was on the table to address this issue was not adequate in its content for the protection of taxpayers, the oversight of the conduct of the stabilization efforts and a variety of other factors, and it did not have votes to pass, and in the end, it did not pass. This failure to have the votes is recognized by the other side as well. Senator Reid called upon Senator McCain to bring Republicans on board and Speaker Pelosi said quite clearly that Democrats in the House were not going to pass without Republicans and Republicans were not in fact engaged in the process in the House. So there was a genuine failure that was facing America and Senator McCain accepted the challenge, suspended his campaign and returned to Washington with the intent of delivering to the American people the relief that they certainly need and in doing so was hoping to build a bipartisan effort to provide that relief.

"He encountered partisanship almost immediately. Senator Reid criticized him, having called upon him to do this. He was criticized for doing it. He went to a White House meeting which was sadly lacking in a spirit of bipartisan problem-solving. Instead, it devolved into figure pointing partisanship. At the meeting, he held his tongue and chose not to engage in that very kind of spirited partisan debate -- instead defending only the House Republicans' right to be involved in this process, and picking up the pieces on Friday morning by visiting with the Senate, visiting with the House, explaining at every step of the way that all parties have a seat at the table and explained to House Republicans as well that they needed to take that seat and provide a negotiator. He engaged in the process and contributed constructively to that and what ensued was exactly that.

"House Republicans took the opportunity to choose Minority Whip Blunt as their negotiator. It appeared over the next several hours on Friday that the process was moving forward. There were reports of staff meetings that were productive and helpful. Senator McCain went to the debate, showed the American people that he was prepared to be the next President, came back to Washington that night, arriving about 4 a.m., and got up the next morning and continued to monitor the process. And at all points in this, I think it is essential to emphasize that he did his job knowing number one that it was important for him to be involved in pushing the process.

"He was never advocating for particular parties. He was not advocating for particular ideas in the bill. He wanted a process where all parties were engaged, all parties were in good faith negotiating that would lead to a kind of legislation that would alleviate this problem. He also made the conscious decision to not attract attention to John McCain knowing that he was the target of partisan attacks, knowing that he would be accused if he did raise his profile of injecting presidential politics into this important process. In response, he's criticized but he did the right thing. John McCain takes criticism knowing that a national need is being addressed, and he continued to both engage with the members who needed to be comforted with the difficult votes, encouraged to understand the issues, checking with the facts on the ground, with Federal Reserve Chairman Bernanke, Secretary Paulson, other members of the process.

"Today, that process broke down and it broke down quite frankly with partisan attacks from Speaker Pelosi on the floor in the midst of what should have been the final moment of bipartisanship."

Listen To The Conference Call
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Gingrey (R-GA) Votes Against Bailout; Calls for Market-Driven Response

U.S. Congressman Phil Gingrey today voted against the Wall Street bailout proposal but called on Congress to immediately return to DC after Rosh Hashanah to work on the issue.

“Thanks to the efforts of Senator McCain, John Boehner and other conservative Members of Congress, the bill we voted on today is vastly better for the taxpayer than the bill that was originally proposed,” said Gingrey. “Senator McCain and Leader Boehner were resolute in their opposition to Democratic proposals that would steer revenues from this program into the coffers of liberal groups like ACORN. Thanks to their leadership, the final text of this bill rejected this provision as well as giveaways to union bosses.”

“Despite these improvements, I still do not believe this bill goes far enough to protect Main Street. Once the government steps in and puts these troubled institutions back in business, we must ensure that they cannot make the same greedy and irresponsible decisions that got us into this mess.”

“We simply cannot preserve our free market economy by sacrificing the very principles that underlie it. I have heard loud and clear from my constituents throughout Northwest Georgia, and they do not want to gamble hundreds of billions of their hard-earned tax dollars on Wall Street’s poor choices. They want to preserve our financial system, but demand that we think more about the taxpayer in developing the solution to this mess than Washington and Wall Street did when they got us into it.”

“Along with a number of my colleagues, I have cosponsored a free-market alternative to tackle this economic crisis while protecting the taxpayer. To date, however, the Democratic Leadership has refused to even consider this alternative. I understand the need for swift action, but I cannot understand leaving options off the table that could provide market liquidity and restore confidence in our financial system with far less risk to the taxpayer.”

“Make no mistake, inaction is NOT an option. I think everyone can agree that something must be done to stem the economic crisis facing our nation – and I hope we move as quickly as possible to work on and approve that plan. However, while the bill we voted on today aims to be an answer to this economic turmoil, I do not believe it is the best one. A commitment to our core Democratic values isn’t something that changes with the weather. It is in our most difficult crises that the true measure of our principles shines through. During times such as the financial crisis we currently face, we must stand firm in these principles for the good of the American people.”

*The centerpiece of the alternative introduced by Rep. Gingrey and other conservative colleagues is the creation of a fee-based insurance protection program for these mortgage-backed securities that would stabilize our financial markets without making the Federal government the nation’s mortgage company. This alternative would also draw private capital into the market by bringing profits from U.S. companies operating overseas back into the United States to be invested. Further, our alternate proposal would enact a two-year suspension of the capital gains tax to encourage businesses to spur investment and create new jobs. Last but certainly not least, this alternative would require real reform to address the root causes of this crisis. Our alternative holds Freddie and Fannie’s feet to the fire to stop unsound mortgages from the start, imposes new commonsense regulatory rules to ensure the true economic value of these assets, and establishes a policy to strengthen the value of the American dollar.

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“Today’s Economy and FDIC Insurance” Seminar at Clayton State University

Heritage Bank, in partnership with Clayton State University, will be presenting a seminar with information on today’s economy and protecting your deposits with FDIC Insurance. There is a tremendous amount of news and interest in the state of today’s financial industry. There is concern for the stability of our banks and their customer’s deposits.

Heritage Bank has arranged for Dr. Nikki Finlay and Dr. Reza Kheirandish, professors of Economics from Clayton State, to present their views on the status of today’s economy. Penny King and Thomas Stokes, experts in the Atlanta FDIC office, will present valuable information on the importance of FDIC insurance. Time will be provided to answer questions. The seminar is free of charge and will be conducted in three locations in Clayton, Henry and Fayette Counties. The first scheduled seminar is Monday, Sept. 29 from 7 p.m. to 9 p.m. at Clayton State University, in the new School of Business, room T152. Parking will be in the gated James M. Baker University Center parking lot. Please RSVP to Barbara Stevens @ Heritage Bank (770) 515-7001.

Heritage Bank is a member of FDIC, The Federal Deposit Insurance Corporation.

Heritage Bank, a state chartered commercial bank, has been serving metro Atlanta’s Southern Crescent since 1955. The independent community bank has seven full service offices, features a well-rounded offering of commercial and consumer products, and is an active, involved member of the community it serves. The company’s stock is traded on The Nasdaq Small Cap Market under the symbol “CCFH.” For more information, please call (770) 478-8881 or visit the Heritage Bank website at www.heritagebank.com.

A unit of the University System of Georgia, Clayton State University is an outstanding comprehensive metropolitan university located 15 miles southeast of downtown Atlanta.
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