ATLANTA - After calls from such Cobb lawmakers as state Rep. Ed Setzler and Senate Majority Leader Chip Rogers, Gov. Sonny Perdue announced Thursday he would not be renewing a state contract with ACORN when it expires in two weeks.

Moreover, Perdue issued an executive order preventing executive branch agencies from doing future business with ACORN, or the Association of Community Organizations for Reform Now.

ACORN pursues contracts directly with state and local governments and authorities nationwide to ostensibly perform a broad range of services including income tax assistance, foreclosure assistance and public outreach, as well as other community stabilization programs using a mixture of federal, state, local and private foundation funds.

The group, which has received an estimated $53 million in federal money since 1994, was accused of fraudulent voter registration in several states during the 2008 presidential election. Now, the group is under fire for hidden-camera videos in which ACORN employees in several cities are seen advising two people posing as a prostitute and pimp on how to break the law.

"The video footage of ACORN employees conspiring to commit tax fraud and teen prostitution is just this week's story for an organization that has had 70 employees convicted of felonies nationwide in recent years," said Setzler, an Acworth Republican. "Although their friends in Washington may add to their $53 million in federal contracts, we will not allow them to live off of the Georgia taxpayer."

Setzler said a preliminary investigation this week by a group of legislators found at least one contract issued through the Georgia Department of Human Services had been awarded to ACORN. The contract used federal Food Stamp program funds and private foundation dollars totaling $104,000 to conduct a federally mandated outreach program to encourage people to use food stamps. In Georgia, ACORN has been one of four or five federally approved organizations to provide these services. The identified contract, which uses no state funds, began on Sept. 8, 2008 and will expire Sept. 30, 2009, Setzler said.

Setzler said the process started when a constituent called him to ask if Georgia had any contracts with ACORN.

"Not knowing the answer, I initiated the process of researching the issue. I contacted Chip Rogers yesterday morning, who offered to help provide some resources from the Senate Budget Office; House Majority Leader Jerry Keen committed some resources from the House Budget Office," Setzler said.

Meantime, Georgia's U.S. Sens. Johnny Isakson (R-East Cobb) and Saxby Chambliss (R-Moultrie), on Thursday, cast votes and cosponsored legislation to block ACORN from receiving any federal funding. The senators also signed a letter to the Senate Democratic leader calling on him to hold hearings "to determine the extent of ACORN's wrongdoing."

"It is indefensible that ACORN is eligible for taxpayers funds when it has repeatedly worked to undermine our electoral process and to advance partisan political activities," Isakson said. "The recent revelations only offer further proof that this organization should be prohibited from receiving federal funding."

In addition, Isakson and Chambliss voted for an amendment on the floor to block ACORN from receiving federal funding through the Interior Appropriations bills, which passed by a vote of 85-11.

Earlier this week Chambliss and Isakson also cosponsored and voted for an amendment to block ACORN from receiving federal funding through the Transportation, Housing and Urban Development appropriations bill. That amendment passed by a vote of 83-7.

At the local level, Rogers, a Republican who represents parts of Cobb and Cherokee counties, and Setzler have called on state and local governments and authorities to review their list of contracts and subcontracts to ensure Georgia taxpayers that no money is being spent on contracts with ACORN. Setzler and Rogers also indicated they are considering filing an Open Records Request regarding the funding sources of ACORN affiliates in Georgia and in taking legislative action in the 2010 session of the General Assembly.

"There is no place in Georgia for an organization that turns a blind eye toward the prostitution of children. The long history of this organization in election fraud is bad enough, but the recent evidence of criminal activity is simply too much to ignore," Rogers said.

Setzler said stopping taxpayer money from going to an organization involved in tax and voter fraud is not a partisan issue.

"It's a common-sense issue," he said.

Marietta City Manager Bill Bruton said the city has no relationship with ACORN. Asked if the county has any relationship, Cobb Board of Commissioners Chairman Sam Olens quipped, "cashews, not acorns."

ACORN's only physical office in Georgia is at 142 Mitchell St. SW, suite 240, in Atlanta.