Georgia Budget Battle Continues: A Conversation with the State Senate's Chief Budget Writer ATLANTA, GA (WABE) - It appears the battle over how to solve the state's budget crisis will go down to the final hours of this year's Legislature.

Georgia faces an estimated budget shortfall of over $1 billion, for the fiscal year that starts in July. To balance the books, the House passed a bill, endorsed by Governor Sonny Perdue, which would impose a tax on hospitals, for the revenue they make from patients. The money would help shore up the state's Medicaid program.

But when the bill got to the Senate, Republican leaders added a delayed tax cut, for insurance companies on the premiums they collect. It would not kick in for at least three years; but Governor Perdue called it irresponsible. And an internal dispute among Senate Republicans led to the ouster of several from their leadership posts.

But later, Senate leaders said they will insist on including the insurance tax cut in the hospital tax bill.

Republican Jack Hill of Reidsville is the chairman of the Senate Appropriations Committee. He told WABE's Denis O'Hayer he disagrees with the Governor, who said the insurance tax cut could worsen the state's long-term budget problems.

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