LETTER: Supplemental budget reflects recent growth in revenues
The House of Representatives voted Feb. 9 to approve an amended budget for the remainder of fiscal year 2011, which ends June 30. HB 77 adjusts the total budget for the current fiscal year to $18.1 billion.
Spending by state agencies is reduced by an average of four percent, or about $303 million, in the supplemental budget. State revenues have increased during the first seven months of FY 2011 by $705 million, or 8.1 percent, over the same period last year. Each month of the current fiscal year has seen slow, but steady, revenue growth, including the usually sluggish month of January, which became the eighth straight month of economic growth in our state.
This growth has been largely driven by jumps in individual income and increasing consumer spending. While we still have a long way to go, there are clear indicators that Georgia’s economy has stabilized and is now steadily increasing, despite the still-high unemployment rate.
While increasing revenue and the beginnings of economic recovery are welcome news, the rate of growth we are seeing is not enough to fund the $400 million worth of necessary adjustments to the current state budget. Therefore, an average of four percent in budget cuts, totaling over $303 million, must be made by state agencies and departments, except for education. Originally, state agencies and departments planned for eight percent cuts.
Through these agency and department cuts, along with the modest increase in revenues and the revenue shortfall reserve, budget writers were able to secure funding for some of our state’s most vital programs. In fact, $152 million was added to K-12 education alone. HB 77 also includes an extra $149 million for Medicaid, $31 million for HOPE, $13 million for community-based metal health services, and $10 million for economic development. The House also added $21.7 million to fully fund Disproportionate Share Hospitals, which are hospitals that treat a high number of uninsured individuals. Further, the amended budget maintains the integrity of the benefit and pension programs for Georgia’s civil servants and ensures our continued AAA bond rating, a key to securing low interest rates for the state.
The midyear budget bill was approved by a vote of 136-29 and now goes to the Senate for its consideration. The House Appropriations Committee will now turn our attention to the annual budget for fiscal year 2012, which begins July 1. Still under review in committee is HB 33, a proposal to implement a “zero-based” budgeting system into the annual legislative appropriations process.
Currently, the state legislature actually reviews less than 10 percent of spending proposals in the annual state budget because more than 90 percent of the budget includes spending that is automatically rolled over from the previous year as a “continuation budget.” Zero-based budgeting would require lawmakers to review the entire budget, including the continuation portion, with state department heads presenting justification for each expenditure.
English-Only Driver’s Test: House members voted Feb. 9 to table legislation that would require Georgia driver’s license examinations to be administered only in English. Supporters of HB 72 moved to table the proposal after a majority of House members present added an amendment that narrowed the bill’s focus to only a small portion of the license exam. The bill’s sponsor said the amendment “gutted” the legislation, which, having been tabled, can be brought back up for consideration on the House floor at some other time. Currently, the driver’s license exam is offered in 14 different languages by the Department of Driver Services. Under HB 72, individuals in Georgia with a temporary visa could still take the driver’s test in one of those languages, but permanent residents would have to take it in English. HB 72 is a public safety measure because Georgia traffic signs are posted in English. The original bill affected only permanent legal residents, who could also request to take the exam orally. The amendment was approved by a vote of 88-78, and the motion to table was approved 115-50.
Other Legislation: House members voted unanimously this week to pass HB 49, which would officially change the name of the governing body for the state’s technical colleges to the State Board of the Technical College System of Georgia, and HB 107, which would allow the spouses or dependents of public safety employees or highway workers who are killed on the job to continue to receive health insurance coverage from the state. Both measures now go to the Senate for its consideration.
DOT Board Election: Congratulations to former Augusta city commissioner Don Grantham, who was elected Feb. 9 by legislators representing counties in the 10th Congressional District to represent the district on the State Transportation board. I look forward to working with Mr. Grantham on the addressing the transportation needs in Northeast Georgia.
General Assembly Online: Throughout the session, you can read the details and check the status of legislation and watch live broadcasts of House and Senate proceedings online at www.legis.ga.gov. You can also sign up for regular e-mail updates at www.alanpowell.net.
State Rep. Alan Powell (R-Hartwell) represents the 29th District (Franklin, Hart and Madison counties) in the Georgia House of Representatives. Contact him at 507 Coverdell Legislative Office Building, Atlanta, GA 30334; by phone at 404-656-0202; or by email at alanpowell23@hotmail.com.
This growth has been largely driven by jumps in individual income and increasing consumer spending. While we still have a long way to go, there are clear indicators that Georgia’s economy has stabilized and is now steadily increasing, despite the still-high unemployment rate.
While increasing revenue and the beginnings of economic recovery are welcome news, the rate of growth we are seeing is not enough to fund the $400 million worth of necessary adjustments to the current state budget. Therefore, an average of four percent in budget cuts, totaling over $303 million, must be made by state agencies and departments, except for education. Originally, state agencies and departments planned for eight percent cuts.
Through these agency and department cuts, along with the modest increase in revenues and the revenue shortfall reserve, budget writers were able to secure funding for some of our state’s most vital programs. In fact, $152 million was added to K-12 education alone. HB 77 also includes an extra $149 million for Medicaid, $31 million for HOPE, $13 million for community-based metal health services, and $10 million for economic development. The House also added $21.7 million to fully fund Disproportionate Share Hospitals, which are hospitals that treat a high number of uninsured individuals. Further, the amended budget maintains the integrity of the benefit and pension programs for Georgia’s civil servants and ensures our continued AAA bond rating, a key to securing low interest rates for the state.
The midyear budget bill was approved by a vote of 136-29 and now goes to the Senate for its consideration. The House Appropriations Committee will now turn our attention to the annual budget for fiscal year 2012, which begins July 1. Still under review in committee is HB 33, a proposal to implement a “zero-based” budgeting system into the annual legislative appropriations process.
Currently, the state legislature actually reviews less than 10 percent of spending proposals in the annual state budget because more than 90 percent of the budget includes spending that is automatically rolled over from the previous year as a “continuation budget.” Zero-based budgeting would require lawmakers to review the entire budget, including the continuation portion, with state department heads presenting justification for each expenditure.
English-Only Driver’s Test: House members voted Feb. 9 to table legislation that would require Georgia driver’s license examinations to be administered only in English. Supporters of HB 72 moved to table the proposal after a majority of House members present added an amendment that narrowed the bill’s focus to only a small portion of the license exam. The bill’s sponsor said the amendment “gutted” the legislation, which, having been tabled, can be brought back up for consideration on the House floor at some other time. Currently, the driver’s license exam is offered in 14 different languages by the Department of Driver Services. Under HB 72, individuals in Georgia with a temporary visa could still take the driver’s test in one of those languages, but permanent residents would have to take it in English. HB 72 is a public safety measure because Georgia traffic signs are posted in English. The original bill affected only permanent legal residents, who could also request to take the exam orally. The amendment was approved by a vote of 88-78, and the motion to table was approved 115-50.
Other Legislation: House members voted unanimously this week to pass HB 49, which would officially change the name of the governing body for the state’s technical colleges to the State Board of the Technical College System of Georgia, and HB 107, which would allow the spouses or dependents of public safety employees or highway workers who are killed on the job to continue to receive health insurance coverage from the state. Both measures now go to the Senate for its consideration.
DOT Board Election: Congratulations to former Augusta city commissioner Don Grantham, who was elected Feb. 9 by legislators representing counties in the 10th Congressional District to represent the district on the State Transportation board. I look forward to working with Mr. Grantham on the addressing the transportation needs in Northeast Georgia.
General Assembly Online: Throughout the session, you can read the details and check the status of legislation and watch live broadcasts of House and Senate proceedings online at www.legis.ga.gov. You can also sign up for regular e-mail updates at www.alanpowell.net.
State Rep. Alan Powell (R-Hartwell) represents the 29th District (Franklin, Hart and Madison counties) in the Georgia House of Representatives. Contact him at 507 Coverdell Legislative Office Building, Atlanta, GA 30334; by phone at 404-656-0202; or by email at alanpowell23@hotmail.com.
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