New Fiscal Year Continues Budget Pain

Governor Sonny Perdue warns of more pain as the state flips the page into a new fiscal year today. The continued weak revenue stream forced constant cuts to the budget through fiscal 2009. Now for the new month, Perdue has already asked state agencies to voluntarily cut spending by another 3-percent.

Now into fiscal 2010, Perdue says moving forward the operative phrase is "right-sizing expenditures.":

"The budget act gives the Governor the right to withhold allotments to meet up with revenue expectations. I'm going to meet with Legislative leadership after the end of the year and determine if we want to take that route or if they would like to come back for a special session where we readjust the budget."

Concerning the end of fiscal 2009, Perdue earlier had mentioned the possibility to perhaps tap the state's rainy day fund for up to $400 million to make ends meet.

Perdue Asks For More Budget Cuts In July

Governor Sonny Perdue is calling on state agencies to continue tightening their belts into the next fiscal year.

State revenue numbers are not expected to show much—if any—improvement into July. Because of that, Perdue spokesman Bert Brantley says a letter sent to agencies today is asking for voluntary cutbacks in budgets next month:

"The check they receive so to speak from the state for their July operations will be the full amount. We’re just asking them to continue doing the things they’ve been doing...hold back spending where possible. The hope is we will achieve a 3-percent reduction in July."

Brantley says in order to balance the end of this fiscal year, officials may have to tap up to $400-million of the state’s rainy day funds. That would leave little into going into fiscal 2010.

He says additional state budget cuts through 2010 are likely.

State Revenue Numbers Continue Tumble

The state’s revenue numbers continue to struggle. The Governor’s office says collections for May were down more than $200 million, or 14.4%, from the same month a year ago. Bert Brantley is spokesman for Governor Perdue:

"It’s all relative...14.4% down is better than 20% down, but it’s not as good as 0% down or even an increase. This is the reason why we’ve had to cut spending...this is the reason why we’ve had additional cuts even since the Legislature has come in."

For the fiscal year set to end June 30th, collections are down 10-percent. Because of that, the state’s reserves are being tapped to make up the difference.

Meanwhile, state agencies remain under an order from Perdue to cut spending this month by 25% in order to meet a balanced budget.

Public Defenders May Call for Gov Help

Officials with Georgia’s public defender system say they may need Governor Perdue to call a special panel to help them deal with deep budget cuts. System leaders say a gathering of the Fiscal Affairs Committee may be the best chance at this point to help them cope with the situation. The state-funded public defender system is facing lagging support from state legislators and mounting funding problems amid the economic downturn. It was also slapped with a lawsuit last month that seeks to halt prosecutions in hundreds of northeast Georgia cases until lawyers are provided to represent the defendants.

Final Stretch For State Lawmakers

It is down the stretch in the 2009 Georgia Legislative session--only three days remain, and it promises to be busy at the State Capitol this week.

Lawmakers must come to agreement on a new state budget topping $18 billion. The House already has passed its version, and the Senate as of now is scheduled to vote on it Wednesday. There's also a pair of transportation bills still on the table for House and Senate conference-committees to delve into.

To give a sense as to how busy these final days will be, the Senate has more than 30 bills up for consideration today, with the House somewhere over 20 to look at.

For all the latest on the General Assembly, be sure to check back with GPB Radio this afternoon during All Things Considered and Georgia Gazette. Also, for news anytime, you can access our Georgia News blog, by logging onto gpb.org.

Ga. House Panel Approves Budget

The House Appropriations Committee has approved an $18.9 billion budget that funnels hundreds of millions of dollars in federal stimulus money into Medicaid and education.

The amended budget for the current fiscal year passed by a voice vote Wednesday. It cuts more than $2 billion in state spending to fill a deficit. The federal stimulus money coming from Washington is helping blunt some of those cuts.

The budget restores $1.3 million to the state Department of Revenue to keep it from having to furlough auditors.

State lawmakers say that with tax revenues plummeting the state needs the auditors more than ever to make sure that Georgians are paying their fair share.

The full House is set consider the budget Thursday. It still must pass the state Senate.

On The Net: H.B. 118: www.legis.ga.

(AP)

Furloughs On The Way For Corrections Employees

The number of furloughed state employees is growing. Georgia's budget crunch means furloughs for more than 6,000 workers at the State Department of Corrections.

Those employees will have to take a day off with out pay in March, April, May and June. It's part of a plan the department submitted to Governor Perdue last year. His office recently approved it. Kristen Stancil is a Corrections spokesperson.

"We were asked to cut six percent of our budget and this is one of the things that we decided to do. We've cut in other areas and this is one of the extra things we felt we needed to do to help get to that six percent that he requested we cut."

The furloughs could cut up to $4.5 million from Corrections Department's budget. Not all department staff will have to take four days. Security staff will only take two because of safety concerns.

Corrections is just one state department furloughing workers. At least five others have been doing the same.

State Lawmakers Start Altered Schedule

Lawmakers in the Georgia House and Senate reconvene Tuesday to continue the General Assembly session. According to a House resolution approved by the Senate Friday, lawmakers will be meeting on a Tuesday through Thursday schedule until March 25th. The remaining days of the 40-day session would be filled in late June.

The hope for lawmakers is to buy time to see how Georgia's revenue holds-up in the coming months before a new budget needs to be finished by July 1st. Lawmakers also want to see what Georgia's share of federal stimulus money might be in the near future.

State Budget Meetings Begin

Georgia legislative leaders roll-up their sleeves today, as three days of budget committee meetings begin. Lawmakers will dive into the tough work of figuring-out how to fill a two-billion-dollar-plus shortfall in the budget. Governor Sonny Perdue will open today's proceedings with an address to the House and Senate Appropriations Committees. Following Perdue, the Governor’s state fiscal economist will weigh-in with his forecast for Georgia in the coming year.

You can get all the latest on news from the State Capitol anytime, by going to our website and accessing Georgia News, at gpb.org

State Taps $500 Million in Health Plan Reserve

Looking for creative ways to ease Georgia’s budget crisis, state officials have approved a withdrawl from the state’s health plan.

The state will tap into its health plan reserve fund to the tune of $525-million. The money will allow schools and state agencies to pay a lower percentage of payrolls into the health plan.

As example, the state agencies’ rate will drop from 22-percent of payroll cost, down to 2-percent. That would save around $126-million. State employees and teachers will still pay their full premiums.

The Governor’s office says this is a move to avoid deeper budget cuts. And it only applies to the rest of the fiscal year, ending June 30th.

Governor Perdue is preparing his state budget recommendations to present next week when the Legislative Session opens.

State agency budgets could take another punch

The watch is on for possible deeper cuts for state agencies in the wake of another bleak Georgia revenue report. On Friday, Governor Sonny Perdue released numbers showing state revenues fell 7-percent in August from the same month a year ago. The main revenue streams were all down—Georgians were buying less in food, clothing, and gas. Already, state agencies are under a directive to cut budgets by 6-percent to deal with a projected 1.6 billion dollar shortfall.

Public defender system board to meet over budget

The state's ailing public defender system will be addressed in an emergency meeting later this morning. The gathering of the system's board comes only weeks after it staged an open revolt against Governor Sonny Perdue call to cut state agency budgets. At the time, the board said 'no' to approval of a plan to slash staff and money for training. Georgia's statewide legal system has already been in financial crisis--the past three years budgets have been cut by seven million dollars.

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.

Lawmakers expect long final day of General Assembly

It is expected to be a long and busy day on this 40th and final day of the Georgia General Assembly session. Under the Gold Dome, lawmakers will try to push through as many of the 300-or-so bills as they can to Governor Sonny Perdue’s desk. The 21.2 billion dollar state budget for fiscal 2009 must get hammered-out. Perdue has already requested lawmakers cut out 245-million dollars in spending. A new challenge for the budget was the news from Thursday that state tax collections were down 1.6 percent, or 19-million dollars in March--from the same time last year.

Stay with GPB for all the latest from the Capitol on this final day. GPB Radio will have news updates this afternoon during All Things Considered at 4pm, and again at 6pm during Georgia Gazette. You can get Capitol updates anytime by clicking our website gpb.org, and going to the Georgia News page.

Perdue warns of more slowing revenue

Governor Perdue warned today that he might reduce the state revenue projections for the next fiscal year again.

As budget writers in the house and senate try to come up with a spending plan for the next fiscal year they continue to get side tracked by the state's slowing economic outlook.

Lawmakers already passed a midyear budget and did not heed Governor Perdue request to cut $65 million dollars out of it. Pedue says their refusal to do so will force him to tap the state's $1.5 billion dollar reserve fund.

The numbers indicate the revenue estimate for even this years is more in the red than that," Perdue says. " We were planning to go into the reserve to some degree and we just added $65 million to it. "

Dispite the slowing revenue, house and senate leader are eager to offer a tax cut this election year. They are dueling over two proposals. The Senate wants to reduce the state income tax and the House wants to cut the car tax. Governor Perdue warns that both proposals are risky.

Governor pushes for state budget cuts

State budget writers are back to square one after Governor Sonny Perdue adjusted projections for state revenues this week. Some say Perdue's initial assessment may have been too optimistic. Governor Perdue now wants state employee and teacher salary increases cut by half a percentage point. He is also suggesting reducing funds earmarked for school buses and technology.

The state House and Senate budget committees must now rewrite their proposals. Perdue says a slowing economy is to blame. But, House Speaker pro tem Mark Burkhalter says the state's 1.5 billion dollar rainy day fund should be tapped and that Perdue should support tax cuts this year. The Governor has said he will use the rainy day fund only if the economy keeps slipping.

Break in Legislative session allows for budget committees

Lawmakers this week will take a break from the Legislative session at the Capitol to go into committee hearings on the proposed state budget offered by Governor Sonny Perdue.

Last week's opening days of the Session included Perdue outlining his 21.4 billion dollar budget plan for the state. From the General Assembly, developments included the Senate adopting a watered-down bill to expand Georgians' rights as to where they can carry guns. In addition, Georgia's first-ever water plan was passed by the Legislature.

Governor meets with state budget leaders

Governor Sonny Perdue got together Thursday with key House and Senate leaders over state budget issues. The Atlanta Journal-Constitution reports that Perdue wanted to go over plans for the upcoming session, and look to make sure there isn’t another case of tension between he and lawmakers. The 2007 legislative session ended with tension and some name-calling, after Perdue vetoed a 142-million dollar property tax cut. Some lawmakers were further angered when the Governor vetoed 130-million dollars in spending.

Perdue signs state budget, makes cuts

Governor Sonny Perdue was busy in wrapping up details to the 2007 Session--Wednesday was the last day that he could sign or reject legislation. Perude signed the 20.2 billion dollar state budget for fiscal year 2008. Before doing so, he cut 130-million dollars in construction projects, along with another 18 million in spending. Perdue vetoed 41 bills, which is a number more than twice what he rejected last year. One of the many cuts by Perdue including new funding for the Georgia Golf Hall of Fame in Augusta. It was a pet project of House Appropriations Chairman Ben Harbin (R-Evans).

Special session looms for state lawmakers

A special session to call lawmakers back to the Capitol appears on the horizon. Governor Sonny Perdue is expected to announce this week when legislators should return to hammer-out a solution for the final two months of the fiscal 2007 budget. Perdue on Thursday had vetoed the 700-million dollar mid-year plan. On Friday, the Senate passed on joining the House in an over-ride of Perdue’s veto. At issue for the Governor is a property tax-cut of 142 million.

Lawmakers late Friday did get the budget done for next year. The 20.2 billion dollar plan includes funding for several of the Governor’s requested projects, and a three-percent pay raise for teachers and state employees.