The Senate and House Appropriations Committees began their joint budget hearings Wednesday at the state Capitol, led by co-chairmen Senator Jack Hill (R-Reidsville) and Representative Ben Harbin (R-Evans).  Lawmakers heard presentations on the Department of Revenue, Education, Natural Resources and the Judicial Branch.
 
The meeting began with Governor Sonny Perdue outlining his budget proposal emphasizing the need for government to provide the most value to its citizen with the resources available.  He noted that education funding is critically important in shaping the state's future, and has proposed a $1.2 billion bond package to invest in education infrastructure.  Gov. Perdue also encouraged passage of his "Super Speeder" legislation, where fines for excess speeding will be dedicated to funding a trauma care network.  This proposal, previously proposed in 2008, answers the call of many across the state to strengthen Georgia's limited trauma care system.  
 
The committee was then presented with an economic forecast by Dr. Kenneth Heaghney, state fiscal economist.  After listing the downward trends Georgia has recently experienced across all economic sectors, including an average loss of 17,000 jobs a month, Dr. Heaghney said he predicts the state will begin to see a mild recovery in the middle of 2009.

 

Departments and agencies then delivered presentations focused on what impact a $2.2 billion budget shortfall will have on their programs.  Despite decreased funding, State School Superintendent Kathy Cox outlined several new goals she plans to implement to meet the pressing needs of Georgia's students, including increasing high school graduation rates, strengthening teacher quality, improving students' workforce readiness skills, developing strong educational leaders, improving test scores, and creating policies that ensure the maximum academic and financial accountability.  A major concern for the General Assembly is the reduction in school nurses for 2010.  Nurses are contracted through this year, but could be eliminated in 2010.

 

Legislators were anxious to hear how budget cuts would affect the Department of Transportation's ability to meet critical transportation needs across the state.  DOT Commissioner Gena Evans assured the committees that the department paid careful attention to cutting costs without sacrificing service, but noted that the legislature will need to redirect funds in order for the department to meet immediate transportation needs in FY 2010.  The department currently faces a $189 million deficit for FY 2009.  A large portion of the department's revenue is derived from the state's motor fuel tax, which in June took a significant hit when Governor Perdue suspended an increase in the state gas tax due to sharply rising gas prices.  DOT is also working on preparing projects for immediate implementation in the event that Georgia receives funding from a Federal economic stimulus package.  Those projects will most likely be rehabilitation-based.

The Senate and House Appropriations Committees concluded their state budget hearings today with the Departments of Human Resources and Community Health.  Lawmakers also had the chance to address specific areas of the budget during the Office of Planning and Budget's presentation on their approach to how the FY 2009 and 2010 budgets were structured.

 

DHR presented an overview of spending cuts within each program, including their spending plans for the future reorganization of the department.  The governor announced in August the creation of a new Department of Behavioral Health, encompassing mental health and addictive disease programs, while the Department of Community Health will be merged with the public health and health regulation programs of DHR to make up a reconstituted Department of Health.  Lawmakers are most concerned with how the department will cut costs while creating new departments.  
 
Department of Community Health Commissioner Dr. Rhonda Meadows spoke to the committee to address the governor's proposed 5 percent cut to their operating budget for the rest of FY 2009.  She mentioned several initiatives such as utilizing new technologies, stricter eligibility requirements and hiring freezes that her agency will implement to meet the requirements but is concerned that any additional rises in unemployment and subsequent Medicaid enrollment than what is already projected could cause a higher deficit for DCH.  Lawmakers were extremely hesitant to endorse the governor's proposed hospital provider fee designed to help offset a projected $428 million budget hole that would cover Medicaid and Peachcare funding for FY 2010.  Dr. Meadows confirmed for the committee that this provider fee is a tax and very few hospitals would be eligible for any exemptions under the proposed plan.  She noted that DCH was in the preliminary stages of gauging the hospital fee's potential impact on legislator's district hospitals, trauma centers and the method of collecting the tax.

To learn more about the proposed FY 2009 amended budget and FY 2010 budget, please visit the Georgia Budget and Policy Institute website.