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CBA 2018 Election Analysis: What does this mean for community banks?

While election night has come and gone, votes are still being counted, runoffs will ensue, and some races remain too close to call. Election results will not become official until the results are certified by our newly appointed Secretary of State Robyn Crittenden. In the face of a great deal of uncertainty, we felt it would be helpful to outline what we do know about the results of the election.  Below is an initial analysis of the 2018 mid-term election results and the potential impact on the community banking sector.

Overview of Election Results

State Elections
 
There will be a lot of new faces when the 2019 Legislative Session convenes on January 14, 2019, at 10AM. Brian Kemp has declared victory as the Governor-elect of Georgia, while Stacey Abrams will not concede the race in hopes of a runoff possibility. Brian Kemp has resigned as Secretary of State, and Governor Deal has appointed Robyn Crittenden as interim Secretary of State. Secretary Crittenden will serve for the remainder of Brian Kemp’s term as Secretary of State. Geoff Duncan will serve as Georgia’s new Lieutenant Governor. Chris Carr was elected as the new Attorney General, and Jim Beck was elected as the new Commissioner of Insurance. Gary Black was re-elected as the Commissioner of Agriculture.

While Republicans will still be the majority caucus in both the House of Representatives and the State Senate, Democrats gained a total of 13 seats in the House of Representatives during this election. There will be five new faces in the State Senate this session—three Democrats and two Republicans. There will be 30 new faces in the House of Representative—16 Democrats and 14 Republicans. Two races are too close to call as of this publication—Sam Teasley’s seat in District 37, and Betty Price’s seat in District 48.

Runoff elections will be held on December 4, 2018. As of today, the Secretary of State race (Brad Raffensperger (R) vs. John Barrow (D)) and the Public Service Commission District 3 race (Chuck Eaton (R) vs. Lindy Miller (D)) fell short of the 50 percent mark to win the race outright.
 
Federal Elections

Georgia’s Congressional Districts re-elected incumbents in all but one district, and one race remains too close to call. Lucy McBath (D) defeated Karen Handel (R) in the 6 th Congressional District. The 7 th Congressional District race is too close to call between Rob Woodall (R) and Carolyn Bourdeaux (D). 

At the federal level, the Democrats took control of the House of Representatives and this will sharpen oversight of the Administration and bring a raft of new policy initiatives. At the same time, the Republicans strengthened their control of the Senate, and the presidential veto power will be an obstacle to House-passed legislation. Key agencies will continue to be in a position to advance regulatory relief. CBA continues to work through ICBA to support community bank-friendly candidates in a bipartisan fashion.

What’s Next for the Georgia Legislature?

On November 12, 2018, Georgia will begin a special Legislative session in an effort to provide support to the Georgia communities that were severely impacted by Hurricane Michael. Governor Deal stated “In response, I will ask the General Assembly to take immediate action and lead the way in spurring rapid economic recovery for southwest Georgia communities. Our state budget also needs to be amended to ensure that we adequately cover our obligations.” 

While legislators are in town for the special session, we expect to start pinpointing what some of the hot topics or items of interest will be for the 2019 session. CBA anticipates working with the Georgia Municipal Association to attempt to get legislation dropped for federally insured reciprocal deposits. Georgia is the ONLY state that has statutory prohibitions on local governments placing public funds in bank accounts which are federally insured in their entirety through reciprocal deposit services. If passed, this legislation would give our municipalities another secure investment option in addition to using Georgia Fund 1 or the direct pledging method. In addition, this revision would make it easier for community banks, particularly in rural Georgia, to accept deposits from their local government, allowing these banks in turn to reinvest and loan monies back into their own communities and spur economic activity. 

PARTICIPATE NOW in CBA’S ADVOCACY EFFORTS!
 
CBA needs your help to promote our mission…

The CBA’s mission is to exclusively provide uncompromising advocacy, education and resources for its family of Georgia community banks while passionately promoting the state’s sound community banking industry.
 
In the coming months, many newly-elected state and federal representatives will arrive in Atlanta and Washington D.C. to take their positions. The CBA is making connections with our new representatives, and grassroots advocacy is going to be an important part of our ability to promote our mission. Your participation is critical!  If you know any of our new representatives, talk to them about how Georgia’s community banks provide vital services to citizens throughout the state. The CBA would also welcome the opportunity to meet with any of your representatives, newly elected or incumbent, to discuss matters effecting Georgia’s community banks.

With your active participation in the advocacy process, Georgia’s community bankers will have a strong voice and influence in the shaping of our industry. We must constantly build and renew relationships with legislators who understand and support community banking.

For more information on how to contribute Georgia’s only State PAC that is dedicated to advocating exclusively for community banking, visit CBA’s website .  
Community Bankers Association of Georgia  
1900 The Exchange, Suite 600, Atlanta, GA 30339-2022 
Phone (770) 541-4490 Fax (770) 541-4496 
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