Monday, September 15, 2008

Governor Perdue Announces August Revenue Figures

ATLANTA – Governor Sonny Perdue announced today that net revenue collections for the month of August 2008 (FY09) totaled $1,259,630,000 compared to $1,353,789, 000 for August 2007 (FY08), a decrease of $94,159,000 or 7.0 percent.

The percentage decrease year-to-date for FY09 compared to FY08 is 6.8 percent.

The detailed report will be available. Click here.

As you may be aware, the Easter Seals Georgia Coalition was awarded the grant for the Champions for Children with Exceptional Needs Initiative. Included in the Coalition are Easter Seals Southern Georgia, Easter Seals North Georgia, Easter Seals West Georgia, Easter Seals East Georgia, Easter Seals Middle Georgia and Parent to Parent of Georgia. The Champions for Children Program is funded by a $4.87 million five-year grant from The Community Foundation for Greater Atlanta. This grant was made possible by a one-time 2006 Georgia Legislature allocation.

The Easter Seals Georgia Coalition is pleased to announce the implementation of the Champions for Children Program in more counties beginning October 1, 2008. Click here for the list of counties.

This final phase will ensure availability of the program on a statewide basis. For more information on the Easter Seals affiliates and the counties they serve, please visit our website at www.easterseals.com.

The Champions for Children Program is designed to primarily assist children and families that no longer meet the eligibility requirements for the TEFRA/Katie Beckett Medicaid program. The program will provide direct financial assistance and support services for Georgia’s medically fragile and special needs children and their families. An Easter Seals Champions Coordinator will work directly with families to determine eligibility, identify service needs as described by the family and connect them with resources and services.

Families residing in the counties listed may access services by calling the Easter Seals Coalition toll free number: 1-866-584-3742. A description of the Champions for Children Program, the application for services and other information is available on the new website www.championsforchildrenga.org. While the $500,000 in annual funding over the next five years will be a wonderful resource for families, we recognize that all needs will not be addressed. However, the Easter Seals Georgia Coalition is committed to serving the needs of children and families to the greatest extent possible using a family friendly approach.

The Easter Seals Georgia Coalition wanted to ensure that a simple and effective process was put in place, which is why we rolled out the Champions for Children Program in stages. We realize that many of you will have specific questions about the eligibility criteria for the Champions for Children Program and the application process. We encourage you to call our toll free number with inquiries. We promise to connect you with other resources if you do not meet the eligibility criteria for this particular program. We also promise later on to provide you with an opportunity for your feedback on the Coalition and how we might improve services.

NOTES FROM THE SENATE BY SENATOR JACK HILL,


August 29, 2008

Last week’s column outlined Georgia’s 20 place jump in tax burden on its citizens. This is perplexing, so this week’s column begins an analysis of spending and taxation history, first by state government and later by local governments.

Additionally, the Governor’s recent discussions about the Homeowners Tax Relief Grant (HTRG) raises interesting questions about the growth of all levels of government in Georgia. This week’s column will examine the current size of state government and its growth over the last twenty years.

Population Growth and Inflation
In examining government spending over time, there are two factors that to be considered in order to paint an accurate picture of growth. First, it is important to understand and account for the growth in population that Georgia has experienced over the past few decades. Between 1989 and 2008, Georgia’s population grew by about 3.5 million people. As Georgia’s population has grown, state government has become larger and more expensive. It is helpful to examine the budget in terms of what the state spends per citizen. Looking at the amount spent per citizen, per capita is a way to gauge whether government spending is growing faster than the population it serves. In addition to accounting for Georgia’s growing population, there is inflation to consider. In order to account for inflation, the consumer price index (which measures the cost of goods over time) is used to more accurately gauge prices.

Total Appropriations
In 1989, the state legislature appropriated approximately $6.4 billion in state funds. Which was about $990 per citizen.
·In 1994, the total amount appropriated was approximately $8.9 billion, or $1,245 per citizen. However, when adjusted for inflation, the government actually spent only $1,045 per citizen.
·In 1999, the total amount appropriated was approximately $12.7 billion, or $1,571 per citizen. Adjusted for inflation, the state only spent $1,179 per citizen.
·In 2004, the total amount appropriated was approximately $15.2 billion, or $1,701 per citizen. Adjusted for inflation that amounts becomes $1,137.
·In 2009, the total amount appropriated in the general budget was approximately $20.1 billon. This will not be the final amount appropriated for 2009 as the legislature has not yet passed the amended budget, which will certainly be lower. However, if the original appropriation were to stand, it would equal $2,028 per person in 2009 dollars, but only $1,167 in 1989 dollars. However, once the $1.6 billion is taken out of the budget to account for the revenue shortfall, the total budget for 2009 will be about $18.5 billion, or $1,867 per person in 2009 dollars. When this figure is adjusted for inflation, the state is spending only $1,074 per person.

Therefore, when the amount spent by the state is adjusted for both inflation and population growth, it is clear that the state is spending more per citizen ($84) than it did twenty years ago but spending less, (-$105) than it did ten years ago.

Spending by Agency
The Senate Appropriations Committee divides the state budget by 13 Subcommittees. An easy way to study spending trends is looking at funding through those subcommittees.

While some subcommittees have shrunk in their share of the state budget, others have grown.

The Community Health Subcommittee, which is primarily composed of the Department of Community Health, received about $1.37 billion dollars in 1998. In 2007, the agencies within the Community Health Subcommittee were appropriated $2.04 billion, even adjusted for inflation, this is about 48 percent more than ten years ago. Similarly, funding for education agencies has increased from $4.5 billion to $5.8 billion between 1998 and 2007 in inflation adjusted dollars.

While overall per capita spending has not grown tremendously across the state over the last twenty years, the issues and areas where the state spends its funds have changed over time. For example, state spending on agencies within the Agriculture Appropriations Subcommittee accounted for $41.9 million in 1998. By 2007, the Agriculture Subcommittee accounted for only $34 million of the state budget (when adjusted for inflation to be comparable to 1998 dollars). In actual dollars agriculture agencies only increased from $41 million to $42 million across these 10 years. Similarly, the Natural Resources Subcommittee, which includes the Department of Natural Resources, the Forestry Commission, and the Soil and Water Conservation Commission among others, was appropriated close to $141.3 million in 1998. These agencies accounted for $116.2 million in 2007 in inflation adjusted dollars. In actual dollars the Department only increased from $141 million to $146 million across 10 years.

So, the conclusion is that state spending and taxation has changed little in the past 10-20 years on a per capita basis adjusted for inflation. In today’s dollars – the adjusted 2009 budget will return the state to the same level as two to three years ago.

Next week, how local spending has changed over time.

Senator Jack Hill can be reached at:
234 State Capitol, Atlanta, GA 30334
(404) 656-5038 (phone)
(404) 657-7094 (fax)
E-mail at Jack.Hill@senate.ga.gov
Or Call Toll-Free at
1-800-367-3334 Day or Night
Reidsville office: (912) 557-3811