Georgia’s Economic Transformation under Nathan Deal

EDITOR’S NOTE: This piece was originally published as part of the Spring 2019 magazine.

When Nathan Deal became the 82nd Governor of Georgia in November of 2010, the Great Recession was suffocating the entire state.  After two years of a financial crisis the likes of which unseen since the Great Depression, Georgia’s economy was stagnant, with historically high rates of unemployment standing above 10 percent, and low rates of workforce participation, according to the Bureau of Labor Statistics. However, by investing in the workforce, and molding the state into an incredibly appealing business climate, Governor Deal brought the unemployment rate down to just four percent, decreased the number of Georgians living under the poverty line by three percent, and increased state GDP by 15 percent (BLS, Talk Poverty) .  He ushered Georgia into an era of unprecedented economic success and growth.  Through his genuine demeanor and commitment to the people of Georgia, Governor Deal took on the responsibility of transforming Georgia not only into a national leader in economic development, but also a hub of global commerce.

Deal prioritized education with an understanding that a well-trained workforce was imperative to the economic development process.  The population of skilled labor available to companies is often a top factor in expansion and site selection decisions.  Governor Deal put reforms in place to curate Georgia’s workforce into one of the most well-educated and technically trained in the country, expertly selling this point to industry leaders interested in coming to Georgia.  This approach was derived from a fundamental understanding of how to keep Georgia on the forefront of economic growth, preparing residents of the state for the quickly growing role of technology as a part of Georgia’s GDP.  In July of 2018, Governor Deal opened the Georgia Cyber Center in Augusta, a $100 million facility geared toward “addressing the growing demand for highly trained cyber security professionals.”  The center was built to meet the needs of technological expansion in both the public and private sector, in particular keeping in mind the number of tech start-ups that are increasingly choosing Georgia as their incubator.

Governor Deal was no doubt influenced by his close relationship with his wife Sandra Deal when it came to understanding the needs of the educational system in Georgia.  As a former middle school language arts teacher, First Lady Deal made it her prerogative over the past eight years to influence great change in meeting the needs of the men and women educating Georgia’s young people. With her help, Governor Deal emphasized education in his second term by renewing calls of not only increasing funding for schools, but also increasing their effectiveness.  Governor Deal even went as far as to criticize an education plan put forth by the state superintendent of schools for not sufficiently raising the level of expectations for Georgia students.  Governor Deal also expanded the HOPE Career Grant, a subsidiary of the HOPE scholarship that provides financial aid for students in the Technical College System of Georgia.  After consulting with industry leaders and economic development experts, Deal expanded the grant to provide free tuition for many students interested in highly demanded trades.  This expansion relieved many prospective pupils from the financial burden of technical training  as they sought to gain the knowledge necessary for certain fields.  By developing a focus on the technical skills and capabilities of Georgia’s young people, Deal ensured that Georgia would able to meet the needs of a diverse and evolving economy for years to come.

Governor Deal also welcomed business to Georgia with financial incentives.  The film industry, which has become a state hallmark in recent years, is no doubt enticed by the 20 percent tax credit offered to organizations that spend more than $500,000 on producing film, television, or digital entertainment in Georgia.  An additional ten percent is available for the simple bargain of throwing in the characteristic peach emblem of the Georgia Economic Development logo during the credits of the project.  These financial incentives have caused organizations such as Pinewood Studios, a British film and television studio, to open branch campuses in the Atlanta area.  Governor Deal’s close relationship with the film industry has elevated Georgia near the stature of New York and California in film production, in part because network and studio executives see the potential to augment their bottom line through a light tax load. The choice to concentrate focus on the film industry is a testament to Governor Deal’s confidence in the state as a national gem and a universal hub for commerce and entertainment.

However, film was just one of many industries that Governor Deal brought made welcome. Based out of Hartsfield-Jackson International Airport, Delta Air lines is the state’s largest employer, currently providing jobs for 80,000 Georgians.  During the heated Republican Gubernatorial Primary in 2018, Lieutenant Governor Casey Cagle used his influence as President of the Georgia State Senate to kill a bill that would have provided a $40 million fuel-tax exemption to Delta after the airline ended a discount program for National Rifle Association (NRA) members.  Although Governor Deal signed the bill, he used the opportunity to condemn the “antics” and reprimanded state lawmakers for “act[ing] with the type of immaturity that has caused so many in our society to have a cynical view of politics.” Governor Deal punctuated his support for Atlanta’s hometown airline by giving the company the tax exemption in full by executive order just a few months later.  This display of friendship toward a company that has spent decades investing in Georgia sent the message that our state was open for business. Petty posturing by legislators should not deter organizations from bringing jobs and investment to our population.  Governor Deal’s hands-on approach supporting and developing Georgia’s business climate has directly precipitated the immense economic growth Georgia experiences today.

Governor Deal led by example and proved that a vision for the future and a focused effort can directly lead to a generational economic comeback.  Governor Deal prioritized investing in the future of the people he served and cultivating relationships for our state that would long outlast his term as chief executive. Over his two terms as governor, Nathan Deal worked hard for every one of the thousands of jobs that were brought into Georgia. He showed dedication and commitment to not only restoring the Empire State of the South to its former position, but also raising it up to a new level of economic prosperity and prestige.

 

https://www.atlantamagazine.com/news-culture-articles/exit-interview-nathan-deal-on-the-issue-that-brings-him-to-tears-why-he-didnt-expand-medicaid-and-more/

https://gta.georgia.gov/georgia-cyber-center

https://gabb.org/georgia-film-tax-credits-not-just-big-business/

https://www.ajc.com/news/state–regional-govt–politics/deal-says-yes-georgia-income-tax-cut-delta-for-now/JO5sgpR8yJ4RSQl4uqYhOL/

https://talkpoverty.org/state-year-report/georgia-2011-report/

https://data.bls.gov/timeseries/LASST130000000000003