Governor's Proposed State Budget

Friends and Neighbors-

I analyzed the Governor's proposed 369-page state budget for next year to gain broader perspective. I'd like to share it with you.

The House will continue to review and revise the budget before taking a preliminary vote and sending it over to the Senate. The two houses must agree on changes before forwarding the budget on for the Governor's signature.
How does Georgia tax its citizens?

Eighty percent of revenues are raised through the 6 percent state income tax and 4 percent state sales tax. Another 10 percent is raised from lottery ticket sales and the motor fuel tax on gasoline. The remainder comes from tobacco settlement proceeds; tobacco, alcohol and insurance taxes; fees for drivers services and so on.
How does Georgia spend its tax dollars?

- 39 percent - K-12 education
- 15 percent - Low income medical care (Medicaid, PeachCare, etc.)
- 12 percent - Colleges and technical schools
- 10 percent - Corrections, courts, safety, juvenile justice, state patrol
- 5 percent - Bond payments for construction of public schools, college/technical schools, prisons, some roads
- 4 percent - Transportation
- 3 percent - HOPE scholarship
- 2 percent - Pre-K for 55% of 4-year-olds
- 10 percent - Everything else, including economic development, environmental protection department, state parks, driver services, agriculture

How much will state revenues increase from the previous year?

Total state revenues for next year are projected to be $20.2 billion. The increase from the previous year would be $1.4 billion, excluding motor fuel and lottery revenues.
When evaluating the state budget, I exclude motor fuel and lottery revenues from the analysis because they are dedicated for specific uses by state constitution. Motor fuel taxes can be spent only on road and bridge improvements by the Department of Transportation.

Lottery proceeds can be spent only on higher education HOPE scholarships and 4 year old Pre-K classes. (Actually, lottery proceeds could be used for educational technology, but funds have not been allocated for this purpose for five years. HOPE and Pre-K consume all current lottery revenues. More higher education students are choosing to remain in-state and Pre-K enrollment is increasing above the population rate. HOPE or Pre-K will likely need to be further rationed in the future.

How will the $1.4 billion increase in general tax revenues be spent?

1. K-12 education - $650 million
- 2.65% higher student enrollment, 3% pay raises for teachers and other education employees, higher health insurance premiums.
- The state will increase its share of health insurance premiums for all state employees. Still, employees will pay 10 percent higher premiums. Without the increase in the state's proportion, though, employees would have to pay 35 percent higher premiums.
2. University system and technical schools - $165 million
- Higher enrollment and facility construction to serve an increasing student population
3. Medicaid and other low income healthcare benefits - $123 million
- Higher consumption and increased enrollment (not higher benefit levels
4. Pre-fund future state employee retiree health benefits - $100 million
- New federal accounting rules require states to pre-fund future state employee retiree health benefits (when a state offers the benefits)
5. 3% salary increase for non-teacher state employees- $80 million
- 70 percent of state salaries are K-12 education. This amount pays for the remaining 30 percent.
6. Increase state's portion for (non-teacher) state employee health care benefits - $71 million
- See note under #1. This covers the other 30 percent of state employees.

These six categories would account for 86 percent of the projected increase in state revenues for next year.

Think about it: 86 percent of the increase would be spent only on increased student enrollment, state employee raises and benefits and increased low-income healthcare consumption.
The remaining 14 percent would pay for increased prison space, additional DFACS caseworkers, immunizations for uninsured, services for disabled Georgians and dozens of other programs. Every proposed program increase is subject to scrutiny and reduction during the budget process.

Next update: I'll go into more detail about the budget for K-12 education and higher education.
As I work on the budget and legislation this session, I want to thank you for the opportunity to serve in the Georgia General Assembly. Each day I walk into the Capitol, I strive to make decisions in the best interests of my district and Georgia as a whole.

The issues can be complicated. Differing interests compete for attention, funding and legislation. Unintended consequences loom. But a better Georgia lies in the balance if we make wise decisions. Pray for me to make wise decisions.

Best-
Jan JonesState Representative - District 46(Serving northwest Fulton, including Milton, Roswell, Alpharetta and Mountain Park)