fy 2013 budget overview fy 2012 budget overview | georgia budget & policy institute alan essig,...

FY 2013 Budget

Overview

FY 2012 Budget Overview | www.gbpi.org

Georgia Budget & Policy InstituteAlan Essig, Executive DirectorMarch 1, 2012


Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-08

Dec-08

Feb-09

Apr-09

Jun-09

Aug-09

Oct-09

Dec-09

Feb-10

Apr-10

Jun-10

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

Jun-11

Aug-11

Oct-11

Dec-11

3750

3800

3850

3900

3950

4000

4050

4100

4150

4200

Job Decline in Georgia since start of Great Recession

December 2007-December 2011

Non

farm

Em

ploy

men

t, in

thou

sand

s

Georgia Tax Rankings

Ranking

State and local own source revenue as a percentage of income

40th

State and local business taxes as a percentage of GSP

42nd

State tax revenue as a percentage of income

45th

State and local own source revenue per capita

47th

State tax revenue per capita 49th


FY 2013 State General and Motor Fuel Funds Budget ($18.2 Billion)


Education; 51.8%

Healthcare; 20.5%

Criminal Justice; 9.4%

Debt Service; 6.2%

Transportation; 4.3%

General Government; 3.8%Human Services; 2.7% Judicial Branch; 0.9% Legislative Branch; 0.4%

FY 2013 Budget DriversMedicaid $243.8 million

Education Formula Growth $188.5 million

Retirement System Contribution $145.6 million

Debt Service $64.6 million

DOT Construction and Maintenance $63.2 million

State Health Benefit Plan $45.9 million

Annualize Cost of Prison Expansion $35.2 million

DOJ Settlement Agreement $29.8 million

General Liability and Workers Comp $17.5 million

Replace Lost TANF Funding $16.8 million

Other $79.0 million

Total Budget Growth $930.0 million

$2.0 Billion Cuts to State Budgets (FY 2009 – FY 2013)


Behavioral Health & Developmental Disabilities

Debt Service

Medicaid and PeachCare

Board of Regents

All Other Government

Board of Education

Technical College System

Transportation

-25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0%

14.7%

11.9%

11.2%

-19.9%

-20.0%

-12.5%

-11.2%

-8.5%

Fewer State Employees Serving 1.7 Million More People


FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 (12/11)

64,000

66,000

68,000

70,000

72,000

74,000

76,000

78,000

80,000

82,000

84,000

75,675

76,997

79,024 79,927

81,248

79,878 80,614

82,000 81,590

82,080

78,106

75,255

71,924 71,044

K-12 Funding Lags Behind Student Growth and Inflation

FY 01FY 02

FY 03FY 04

FY 05FY 06

FY 07FY 08

FY 09FY 10

FY 11FY 12

FY 13

3000

3200

3400

3600

3800

4000

4200

4400

4600

4800

5000

$4,103$4,075

$3,950

$3,962

$4,220

$4,586

$4,898

$4,603

$4,399

$4,280

$4,221

$4,326

$3,914$4,039

$3,922

$3,704$3,593

$3,708

$3,917

$4,029

$3,799

$3,572

$3,351 $3,304

Total K-12 Funding Per Pupil Inflation Adj. (2001)

Regents Funding Lags Behind Student Growth and Inflation


FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 120

2000

4000

6000

8000

10000

12000$11,278

$10,599

$8,420

$7,725$7,772

$8,246$8,515 $9,021

$8,279

$6,969$6,525

$6,173

$10,435

$8,104

$7,243 $7,049$7,244 $7,273

$7,420

$6,834

$5,661

$4,988 $4,832

State Funding per FTE

Inflation adj. (2001)

Declining Support for Technical College System

FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011

$95 $99 $104

$81

$64 $59

$150 $158

$163

$146

$127 $128

Technical Education Funding per Credit Hour (CH)

State Appropriation per CH Total Expenditures per CH

Rainy Day Fund Needs to be Rebuilt


FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 $-

$200,000,000

$400,000,000

$600,000,000

$800,000,000

$1,000,000,000

$1,200,000,000

$1,400,000,000

$1,600,000,000

$734 million

$700 million

$260 million

$52 million

$257 million

$793 million

$1.54 billion

$566 million

$103 million

$116 million

$328 million

FY 2013 Lottery Funds Budget ($904 Million)


HOPE Scholarship Public Schools, 45.1% -

$408 million

Pre Kindergarten, 33.0% - $298 million

HOPE Grant, 12.5% - $112 million

HOPE Scholarship Private Schools, 6.0% -

$54 million

Low Interest Loans, 2.2% - $20 million

HOPE GED, 0.3% - $2.6 million

HOPE Administration, 0.9% - $7.9 million

Structural Deficits

• FY 2014 projected Budget Deficit - $320 million

• New Revenue Needs ($500 million to $1 billion)

– student growth, retirement contributions, health care, state prisoner growth/aging, pay raises, mental health settlement

• Revenues sun setting and more tax cuts phasing in ($475 million)

• Rebuild the reserves ($300-$400 million annually)


Georgia Revenues

Fair and Adequate Tax Reform | www.gbpi.org

Individual Income Tax ; 46.3%

Corporate Income Tax; 4.0%

Sales Tax; 30.7%

Motor Fuel Tax; 5.6%

Other Taxes; 6.8%

Fees, Interest, Sales; 6.6%

Governor’s Tax Recommendations

• Sales Tax Exemption for Energy for Manufacturers

• Revise and Expand Jobs Tax Credits

• Sales Tax Exemptions for Construction Projects with Major Regional Significance


2020 Georgia Coalition • Coalition of over 80 organizations

advocating for a balanced approach to budget and revenue solutions.

• Website – 2020Georgia.org


LET’S KEEP IN TOUCH.Alan Essig, Executive [email protected]


About the Georgia Budget & Policy InstituteGBPI seeks to build a more prosperous Georgia. We rigorously analyze budget and tax policies and provide education to inspire informed debate and responsible decision-making, advancing our vision of a state in which economic opportunity and well-being are shared among all. GBPI is an independent, nonpartisan nonprofit founded in 2004.

www.facebook.com/gabudget @gabudget

fy 2013 budget overview fy 2012 budget overview | georgia budget & policy institute alan essig,...

Documents