Education officials worried that the proposal leave could them without needed cash for the classroom.
"We're not sure it's going to raise enough money," said Sally Fitzgerald, of the Georgia PTA.
Jeff Hubbard, president of the Georgia Association of Educators, said although Richardson has scaled back the initiative significantly it "continues to have fundamental flaws."
"No matter how you dissect it and rework it, it continues to not be a viable option," Hubbard said.
Richardson's 37-page bill would eliminate the school portion of property taxes and replace the lost revenue with a 4 percent state sales tax on groceries, lottery tickets and services such as haircuts, that are currently exempt. Richardson's plan would eventually eliminate all property taxes in favor of a sales tax on consumption, but it would be phased in over time.
It would have to win approval from a two-thirds majority in both chambers of the state Legislature and also be approved by voters at the polls.
Educators said they are worried that sales tax collections are too volatile to rely on, soaring when economic times are good and floundering when consumers tighten their belts. Richardson has maintained that school districts would continue to receive a steady flow of funds. The state also has a reserve account worth more than $1.5 billion to weather rocky economic times.
Critics also complained on Tuesday that a shift to sales tax would be regressive, having the greatest impact on the poorest residents.
But the idea has its supporters. A handful of taxpayers told the House panel they were fed up with property tax bills that never stop climbing.
"Now is the time for change," said William Lively of Marietta.
Lively said the assessment on one parcel of property has jumped 245 percent in the last few years.
He called Richardson's plan "a fair way to broaden the tax burden."
Tuesday's hearing is the first of three scheduled on the plan. Richardson is scheduled to testify before the House panel Wednesday.
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On the Net:
GREAT Plan: http://www.thegreatplanforgeorgia.com
http://accesswdun.com/article/2008/1/205592