Georgia Tax Revenues Way Down

Governor Sonny Perdue says revenue figures for June dropped 16 percent from the same month last year. June ends the fiscal year—the overall decline is 10.5 percent.

The news threatens to leave state reserves dangerously low. A spokesperson for the governor says when the books are closed in the next few weeks Perdue will likely have to transfer $350 million from the state’s rainy day fund to cover the budget shortfall.

Worsening revenues have forced state agencies to make substantial budget cuts already and to furlough workers. The governor has suggested agencies set aside 3 percent of their July budget to prepare for more cuts.

(The Atlanta Journal Constitution)

Judge Says Budget Cuts Could Deny Justice

The state's next top chief justice is warning that more budget cuts to the judicial branch would mean more delays in an array of legal cases. Justice Carol Hunstein said Tuesday it is crucial for the courts to have the financial resources to operate efficiently. Hunstein said the adage "justice delayed is justice denied" is apt. She said justice is being denied to some residents because of the sharp budget cuts. Hunstein takes over as Georgia's top judge on July 1. Chief Justice Leah Ward Sears is stepping down at the end of this month.

(Associated Press)

State Ed Officials Work To Save Disabled Sports Program

Georgia education officials hope to save a sports program for disabled students funded by the state. Officials say there is a stopgap plan in-place to keep the American Association of Adapted Sports Programs running in Georgia schools. The non-profit based in Atlanta helps to provide handball, basketball and football games for about 500 state families with disabled athletes. Problems arose when funding for the programs fell victim to the budget ax, with 20-percent in cuts hitting education and other departments. Now, officials expect the program to get a little over $200,000, compared to the typical $700,000.

Budget Cuts Threaten Superior Courts

Leaders of Georgia's judicial branch are arguing it should be exempt from deep cuts ordered this week by Gov. Sonny Perdue. The Council of Superior Courts said Friday that it should be immune from Gov. Sonny Perdue's decision to slash the funding for state agencies by 25 percent in June amid falling tax collections. Georgia Supreme Court Chief Justice Leah Ward Sears called such a move "unconstitutional" in a letter she sent Thursday to Perdue. Fulton County Superior Court Judge Melvin Westmoreland, who is the council's president, warned state budget officials that such a move could shut down superior courts across the state for two weeks.

(Associated Press)

University System Considers Tuition Hikes, Furloughs

Incoming freshmen at Georgia's colleges and universities may have to pay more than their predecessors.

University System of Georgia Chancellor Erroll B. Davis told lawmakers at a committee meeting Monday that he doesn't "see any way tuition is not going to go up." Most students already enrolled in colleges wouldn't see a tuition increase under the "Fixed for Four" plan that guarantees the same tuition rate for four years.

Davis also told the committee that furloughs are possible for the system's 40,000 employees, reversing his statement in January that he is "philosophically opposed" to asking employees to take unpaid days off. He says campus presidents ultimately will make the decision. The system has laid off 62 workers so far this fiscal year.

Associated Press

DHR Commissioner Details Budget Pain

State budget writers today heard from the heads of Georgia's social services and health care.

B.J. Walker addressed lawmakers this morning. She’s in charge of the largest state agency , the Department of Human Resources. And it’s where the state budget crisis might be felt the most.

Walker has to manage an agency budget of around $3.8 billion. Her department was hit by the budget-ax last summer, and it’s bracing for more in the Governor’s recommendations for the next fiscal year.

"Given the times we’re in and what we have to work with, I’m comfortable the Governor put us through a rigorous enough process that what he has put on the table, is something I can figure out how to make work."

But, Walker did admit to lawmakers Friday the challenge of "making it work" will be tougher with heavier across-the-board cuts to come in fiscal budget year 2010.

Last summer, DHR began one-day-a-month furloughs for a bulk of its 19,000 employees. The state hopes the move saves more than $100-million. And more furloughs could be on the way. Cutbacks are everywhere in the department, with money being pulled from all services, such as children and family services, and programs for the elderly.

Mental health services are in the firing line also. The state just recently signed an agreement with federal officials promising the troubled system will be vastly improved in the next five years. The obvious question today to Walker--how to do that, given budget cutbacks?

"We know that we’ll probably need some sort of resources at some point. But we have not fully calculated what that need is at this time...we’re working that through right now, and I’m sure we’ll be bringing some ideas about that at some point."

Walker did say the option of privatizing at least a portion of the mental health system is still an option--if it makes sense fiscally.

As budget committee hearings concluded at the Capitol today, Walker may have delivered the best line in summing-up how she’s trying to manage her department’s budget.

"It is my intent to go through these times not worrying about is it raining, or worrying about how to get out of the rain, but it’s my intent to figure out how you can dance in it."

Lawmaker: Ga. Can't Close Carter Visitor Center

(National Park Service)

Georgia economic development officials were left red-faced as a veteran state lawmaker said the department's plans to shutter a visitor center in former President Jimmy Carter's hometown of Plains violated state law.

The Georgia Department of Economic Development's budget plan eliminated $186,407 for the visitor center as part of agency budget cuts.

But at a budget hearing Thursday at the state Capitol, state Sen. George Hooks, a Democrat from Americus, said Georgia law dating from 1977 requires the state to "construct, operate and maintain a tourist center" near the home of any Georgian elected president.

Economic Development Commissioner Ken Stewart said he was not aware of the law and said "we will certainly go look at our options."

(AP)

Click here for more GPB coverage about budget cutting statewide.

Check Your Expiration Dates!

You might want to check the dates on your milk, eggs and baby formula a little more closely. That's because budget cuts may force the state's Department of Agriculture to reprioritize their resources and officials say inspectors won't be able to closely monitor the expiration dates on those products. The department slashed more than 11% of its budget, with most of that coming from administrative costs.

State Budget Cut of $2.2 Billion

Governor Sonny Perdue says a $2.2 billion dollar budget loss will make cuts necessary across the state government. This is about 10 percent of the state budget. In his State of the State address today, Perdue is asking legislators to stay positive “even in the face of difficult economic cycles.” Perdue realizes that cutting waste from the budget isn’t enough to remedy this problem. He is requesting that the state pull as much as it can from the $1.2 billion reserve.

(AP)

Report: Georgia could reap millions in fed healthcare aid

A healthcare lobbying group says Georgia will receive more than $700 million in Medicaid funding if a federal economic stimulus package is passed.

Washington, D.C.-based Families USA is pushing Congress to approve an estimated $40 billion healthcare package, as part of the incoming Obama Administration’s expected economic measures.

Ron Pollack is the executive president of left-leaning advocacy group. He says the funding will have a trickle-down effect locally:

“The increased money for the State of Georgia would provide approximately $708 mi llion dollars in new funding to the state, which in turn would create approximately 12,600 additional jobs and spur about 1.3 billion dollars in new business activity in the state.”

Recent State budget cutbacks pared five percent off Medicaid and PeachCare – some 114 million dollars.

A recent Georgia State University report pegs the state at sixth place nationally in uninsured residents. In 2007, about 18 – percent of all Georgians went without health care – above the national average of 15%.

Click here for more GPB News coverage of health care issues.

MARTA GM seeks cuts as $60M budget deficit looms

MARTA officials are looking for state or other funding help to dig the mass transit authority out of a $60 million hole.

The general manager of the Metropolitan Atlanta Rapid Transit Authority, Beverly Scott, is expected to ask board members Monday to make cuts including nixing annual raises for managers, supervisors and general administrative employees and cutting back on discretionary spending - moves which are expected to save the agency $11 million over the next fiscal year.

In the upcoming legislative session, MARTA officials also plan to ask state lawmakers to get rid of restrictions on how it can use its sales tax and investment earnings, and to allow eating and drinking at rail stations as a potential money-making opportunity.

Without additional funding, officials say there could be fare increases, parking fees and reduction in services, which also could lead to employee layoffs.

(AP)

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Oconee Co. offers deal to cut payroll

A central Georgia county is offering a deal to older workers in hopes of trimming payroll. Oconee County is hoping two dozen employees age 62-and-older will accept a retirement package including a $7,500 bonus, and comprehensive health benefits for at least a year. The proposal was approved by county commissioners yesterday. An Oconee County official says if all targeted employees accept the offer, the county can save more than $650,000 dollars. The employees would retire by the end of this year, and have until February to accept. The county is not planning layoffs.

State installs new child welfare chief

There is a new state child welfare chief. Georgia’s state human resources commissioner announced 38-year-old Mark Washington takes over the post. The Atlanta Journal-Constitution reports Washington comes from his previous job as the head of Kentucky’s child welfare system. He joins a Georgia agency beset with deep budget cuts that are putting a strain on staff levels and services for children and families.

State budget slash cutting into jobs

Georgia agencies are preparing for sharp budget cuts by freezing open positions, slashing travel expenses, delaying new hiring and even ordering state employees to take time off without pay.

The cuts are a reflection of Georgia's mounting $1.6 billion budget deficit, which forced Gov. Sonny Perdue to order most state agencies to cut their budgets by six percent. Perdue also warned the agencies to prepare for broader cuts if tax collections continue to plummet.

The reduced budgets are due next month and agencies are still scrambling to prepare their reductions. But some have already started notifying employees of their plans, and they give a bleak glimpse at the state's financial woes.

Most state agencies are already putting plans in place to freeze new hiring and restrict travel expenses. Many will also have to cut programs to meet the reductions.

Schools Superintendent Kathy Cox is preparing to slash roughly $153 million, which could sap funding for a teacher mentoring program, new charter schools and graduation coaches aimed at reducing dropout rates.

The Department of Human Resources has already asked some employees to take a day off without pay each month, said spokeswoman Taka Wiley. So has Insurance Commissioner John Oxendine, who said he might be forced to ask staffers to take up to three furlough days each month.

"It's spreading the cost," he said. "Do you put it all on the backs of a few people, or do you have everybody equally contribute? We thought it was more equitable to have everyone equally contribute."

Agency heads have also launched more inventive ways to slash spending.

Human resources officials have staved off new vehicle purchases. Oxendine is restricting printing and purchasing to manilla folders instead of more expensive colored ones. And parks supervisors are considering closing parks and hiking fees.

"We're going to have to do more than freeze positions and cut travel to get there," said Beth Brown, a spokeswoman for the Department of Natural Resources.

Perdue said he has had little choice but to order the cuts, which also include a 5 percent reduction in Medicaid funding and 2 percent cuts to education funding for local schools.

Lagging tax collections have already forced Perdue to use $600 million in reserve funds to make ends meet, and there's little hope the fiscal tide is turning: Georgia's revenues fell another 6.6 percent for the month of July.

He's also under increasing pressure from legislators - and some department heads - to call for a special legislative session.

Agriculture Commissioner Tommy Irvin, a Democrat, said legislators need to reconvene to erase the hundreds of new employees approved in the latest budget.

"If we didn't have them before, why do we have to have them now," said Irvin, who has already cut the three new positions his department was expected to receive.

As the sluggish economy continues to lag, though, this may just be the first round of budget cuts.

"The things we're talking about now are the easy things," said Alan Essig, director of the nonpartisan Georgia Budget and Policy Institute. "They are not the more sweeping cuts that are most likely inevitable."

The institute is among the loudest supporters of a special session to raise state funds. Among its suggestions: Hiking the cigarette tax or eliminating a new $428 million property tax credit program.

"If revenue is off the table," Essig said, "it's going to get a lot worse before it gets better."

Click here for more GPB News coverage about the budget.

(The Associated Press)

State revenue falls again

State tax revenue is down--again. Governor Sonny Perdue says collections for the state last month fell 6.6 percent from the same time last year. In the first month of the new fiscal year, Georgia revenue totaled 1.2 billion dollars--that amount is a decrease of more than 86-million dollars from July of 2007. Perdue already has in-place the order for all state agencies to slash budgets by six-percent, employee pay raises to be deferred, and planned homeowner tax cuts to be discarded.

Education board to discuss budget cuts

The state’s budget troubles will force Georgia’s school board to meet this week to figure how to deal with pending education cuts. The state Department of Education will meet and try to come up with a plan to cut up to 171-million dollars from the state K-12 budget. For Georgia as a whole, Governor Sonny Perdue has called for all agencies to cut six-percent from its budgets, in trying to deal with lagging state revenues and an expected 1.6 billion dollar shortfall.

Economy slump could slash state worker raises

Raises for teachers and state employees are at risk as the slumping economy could have lawmakers reconsidering the state budget.

Drops in tax collections and a predicted budget shortfall of up to 2 billion don’t add up to the 700 million dollars in new spending approved last legislative session, said one think tank yesterday.

The Georgia Budget and Policy Institute recommends budgets cuts in non-vital areas, and if need be, putting the January 1st raises expected for state and Board of Regents employees on the chopping block.

The think tank's director Allen Essig said education programs and Medicaid and Peachcare should be kept safe. "It's really important we don't balance the budget on the backs of children and the elderly, those who can least afford it and that we spread the responsibility throughout the state."

Spreading responsibility includes a recommendation to raise cigarette taxes and rethinking special interest tax breaks.

A special session for lawmakers to retool the state budget could be on the horizon.

Education funding suit to be heard today

A long standing lawsuit over education funding in 50 mainly small rural school districts goes to Fulton County Superior Court today. The suit, first filed in 2004, claims the small counties are treated unfairly because they don’t raise enough money from local taxes to make-up for cuts in state education spending. Unless granted a dismissal, the case goes to trial in October. A loss could put the state on the hook for more than one-billion dollars it would have to send to education coffers.

UGA staff layoffs possible

Layoffs could be on the way for University of Georgia. As part of state-mandated budget cuts, Governor Sonny Perdue is asking every state agency to slice 3.5 percent from their budgets. The chancellor of the University System of Georgia has requested a higher number--5 percent, or 20-million dollars in cuts. The state Board of Regents will vote on a systemwide budget reduction plan at its August meeting.

City of Atlanta budget crisis to force massive layoffs

More than 400 people who work for the city of Atlanta may lose their jobs under a new plan proposed by its mayor to deal with budget problems. Mayor Shirley Franklin’s plan to deal with an expected 140-million dollar shortfall calls for layoffs to begin today and go through Monday. The city may combine job cuts with a property tax increase and fee increases to make its budget.