A change to official Georgia code passed this summer seeks to improve the state economy by forcing all school districts to select an in-state company for all purchasing contracts totaling $100 or more that directly benefit or are secured on behalf of school children and paid for in total or in part with public funds.

The code specifically states that these contracts include all school bus purchases, and the contracts extend to other products and services “as may be reasonable and practicable” but not meant for “instructional purposes or for beverages for immediate consumption.” The verbiage adds that, for contracts exceeding $100,000.00, “local school district shall consider, among other factors, information submitted by the bidder which may include the bidder’s estimate of the multiplier effect on gross state domestic product and the effect on public revenues of the state and the effect on public revenues of political subdivisions resulting from acceptance of a bid or offer to sell Georgia manufactured or produced goods as opposed to out-of-state manufactured or produced goods. Any such estimates shall be in writing. No local school district shall divide a contract or purchase which exceeds $100,000.00 for the purpose of avoiding the requirements of this paragraph.”

A spokesperson for Sen. Ross Tolleson, who introduced SB 44 in January, said the change was designed as an economic engine to stimulate the state economy. U.S. Bureau of Labor Statistics data shows that Georgia unemployment jumped to 10.1 percent from 6.6 percent since September 2008. The latest national joblessness report was due at the end of this month.

“It’s kind of hard to understand why a bill would be passed, that could possibly increase the cost of operations, during a time when we are being furloughed ,and having pay cuts, just to stay operational,” commented Geary Cooper, transportation director at Gordon County Schools in the northwest part of the state. “Every director I am associated with does everything they can do to stay within budget and still provide the safest form of transportation available to the students attending Georgia’s schools. I am not aware of any of them that need to be told how to best accomplish this task.”