Georgia Budget and Policy Institute

This Week in the Georgia Legislature

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State Revenues  

State revenues for the first seven months of this fiscal year are running 8.1 percent ($705 million) ahead of the FY 2010 revenue collections. More than $122 million of the growth is accounted for by a decrease in the number of refunds distributed. Discounting fewer refunds distributed, actual revenue growth is 4.8 percent.

 

The governor's FY 2011 revenue estimate projects an increase in revenues of 4 percent ($610 million). It seems highly likely that the fiscal year will end in a surplus of several hundred million dollars, which the governor has stated will be used to begin rebuilding the Revenue Shortfall Reserve.

According to the governor, his FY 2012 revenue estimate is a modest 3.75 percent. The governor included in his FY 2011 base $288 million in one time revenues from the GEFA monetization. Not taking into account the one time revenues from the GEFA monetization and comparing growth in taxes and fees, the revenue estimate actually projects a more substantial increase of 5.8 percent compared to FY 2011 projected collections. However, to drive a surplus of $300 to $400 million in FY 2012 to continue rebuilding the Revenue Shortfall Reserve, revenues will need to grow between 7 and 8 percent.
House and Senate Calendar 
The House and Senate are scheduled to be in session next week for the 17th legislative day on Tuesday, February 22, the 18th legislative day on Wednesday, February 23, and the 19th legislative day on Thursday, February 24.
State Budget: FY 2011 Amended and FY 2012

Process

Governor Deal released his proposed budgets on January 12, 2011.  (Download the proposed budgets.) 
  
The Amended FY 2011 Budget (HB 77) passed the House of Representatives 136-29. There were minimal changes made to the governor's proposal. HB 77 is expected to be voted out of the full Senate Appropriations Committee on Tuesday and taken up on the Senate floor on Thursday.
  
The House Appropriations Sub-Committees will continue to meet on the FY 2012 budget.
 
GBPI Analysis

The governor's FY 2012 budget proposal is disappointing in that it does not take a balanced approach to solving the state deficit. The budget contains additional cuts to education, with significant cuts to higher education, as well as cuts in services to our most vulnerable populations. A balanced approach to the fiscal crisis that includes additional revenues would assure that the factors most important to economic growth in the state, such as higher education, receive the necessary resources for Georgia to prosper.

The following are GBPI analysis:

Fiscal and Tax Policy 
 
Special Legislative Committee Takes Up Tax Council Recommendations


The Special Joint Committee on Georgia Revenue Structure held its third meeting to hear from members of the Tax Council. This was likely the last meeting in which Tax Council members will present. As the Special Joint Committee moves forward on tax reform, GBPI offers adjustments to the Tax Council's recommendations to lessen the tax shift, including several new options released this week. Download GBPI's analysis with additional adjustment options here.

 

GBPI Policy Brief on Senate Resolution 20 Available

 

Senate Resolution 20 passed the Senate Finance Committee and awaits action by the Senate. The constitutional amendment would restrict state spending to a formula of population plus government inflation, similar to Colorado's TABOR.

 

In 2005, Colorado voters suspended the TABOR formula for five years to stop the many harmful budget cuts that had occurred under TABOR. Since Colorado adopted TABOR in 1992, more than 20 state legislatures have rejected TABOR, and it has been voted down in every state in which it reached the ballot. Business leaders, elected officials from both parties, and higher education officials, among others, recognize that TABOR has limited Colorado's ability to maintain critical services.

 

Download GBPI's policy brief on SR 20 and watch a video on this issue.

Health Care Legislation

 

Several health care bills have been introduced in both the House and Senate that address a wide variety of health care issues, including private insurance regulation, Georgia's Medicaid and PeachCare programs, public health and trauma care, and the state's role in implementing the Affordable Care Act.

 

Private Insurance Regulation

 

House Bill 47 is similar to legislation introduced in recent years to allow health insurance companies to sell health insurance products licensed in other states. This bill would allow Georgia insurers to offer policies they currently offer in other states, even if those policies do not cover services required under Georgia law. Effectively, this bill would allow insurers to sell plans to Georgians that do not cover certain benefits that must be covered by plans licensed in Georgia. The bill is assigned to the House Insurance Committee and has been favorably reported from the Health and Life Sub-committee and will bee heard in the full committee next. 

 

Senate Bill 17 would create a Special Advisory Commission on Mandated Health Insurance Benefits, effective in 2012. The Commission would be charged with a variety of duties, including developing a system to asses the effect of mandated benefits taking into account the costs and impact of treatment and the cost savings to the health care system. In particular, the Commission would be charged with assessing the social and financial impact and the medical efficacy of new mandates when they are proposed. This bill has been favorably reported from the Senate Insurance and Labor Committee.

 

State Health Care Programs

 

House Bill 214 would create a new state Department of Public Health as a separate cabinet-level agency. In FY 2010, the Georgia Division of Public Health was moved into the Department of Community Health as part of the reorganization of the former Department of Human Resources. As part of the move, a commission was established to examine and make recommendations to the Legislature for the permanent placement of Georgia's public health functions. The Public Health Commission recommended the creation of a new agency; HB 214 implements this recommendation. The bill is currently assigned to the House Committee on Health and Human Services.

 

Senate Bill 63 would direct Georgia Medicaid program to create a new Medicaid smart card that includes recipient medical information as well as fingerprint identification to be used by all enrollees. The bill would require Medicaid clients to use the card at the point of service to receive benefits and would require providers to verify the patients identity using a fingerprint scanner to match information from the card. Prior to statewide implementation, the bill directs the agency to implement a pilot program in the following Georgia counties: Brantley, Camden, Glynn, Pierce, Ware, and Wayne. The bill is currently assigned to the Senate Health and Human Services Committee.  

 

Senate Resolution 140 proposes a Constitutional Amendment to dedicate $10 from the current vehicle registration fee to a trauma trust fund, to be established by the Legislature. If passed, the amendment would be placed on the 2012 ballot for ratification. The resolution is assigned to the Senate Finance Committee. 

 

Affordable Care Act

 

Several bills have been introduced that seek to prevent state agencies from, or limit the ways in which state agencies go about, implementing the Affordable Care Act. In particular, Senate Bills 20 and 25 seek to prevent agencies from implementing any portion of the law without approval from the legislature, while Senate Bill 23 would prevent agencies from proposing or adopting any administrative rules regarding the implementation or enforcement of the Affordable Care Act without legislative approval. All three of these bills have been assigned to the Senate Health and Human Services Committee.

 

In addition, Senate Bill 22 authorizes and directs the governor to seek a federal waiver of provisions that require health insurance plans to spend a certain amount of the premiums collected on health care services as opposed to administrative or marketing expenses. The portion of premiums directed to health care services is called the Medical Loss Ratio (MLR) and the Affordable Care Act sets new rules establishing minimum MLR requirements for health insurance plans. This bill has been assigned to the Senate Health and Human Services Committee.  

February 18, 2011 

Alan's Signature

Gov. Nathan Deal Takes on Criminal Justice Reform

 

This week Gov. Deal announced plans to create a special committee to study criminal justice reform and offer recommendations. GBPI Executive Director Alan Essig offers insight on why such an initiative is critical to Georgia's long-term success in his commentary, Criminal Justice Reform is Good for Georgia. Click here to read the commentary.

 

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In and Around Georgia

 

GBPI Executive Director Alan Essig was a featured speaker at the Patient Centered Physician Coalition breakfast where he provided an overview of the governor's proposed FY 2012 budget and recommendations of the Special Council on Tax Reform and Fairness for Georgians. 

 

GBPI Deputy Director Sarah Beth Gehl and Senior Health Policy Analyst Tim Sweeney participated in Presbyterian Day at the Capitol, providing overviews of the state budget, tax and health reform implementation.

 

 GBPI Senior Policy Analyst Clare Richie participated in the Annie E. Casey Foundation Partners Meeting in Atlanta, providing an overview of the governor's proposed FY 2012 budget.

 

GBPI Senior Health Care  Policy Analyst Tim Sweeney presented at the Families USA Health Action 2011 Conference in Washington, D.C. about state Medicaid programs, including the importance of preserving programs at a time when many states face budget shortfalls.

 

GBPI in the News

 
Times Herald
 
NPR Weekend Edition
 
Atlanta Journal-Constitution
 
Savannah Morning News
Rome News-Tribune

2011 Legislative Session:

 

 

GBPI's Latest Analysis

 
  
  
  
  


Have We Hit the Bottom?
An overview of the governor's FY 2012 budget
  

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GBPI is the state's leading independent, nonpartisan nonprofit engaged in research and education about the fiscal and economic health of the state of Georgia. GBPI provides reliable and timely analysis of Georgia's budget and tax policies and promotes greater state government fiscal accountability, improved services, and an enhanced quality of life for all Georgians. Visit www.GBPI.org for more information.