GEORGIA HOUSE OF REPRESENTATIVES
PUBLIC INFORMATION OFFICE
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404-656-5082     1-800-282-5800

Daily Report Number 20
February 18, 2004

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Today marked the halfway point of the 40-day legislative session. The twentieth day was a busy one as House lawmakers tackled HB 1180, the Fiscal Year 2004 Supplemental Budget.

Georgia’s slow rise out of the economic doldrums still hasn’t sparked the increase in revenues necessary to account for Governor Perdue’s FY 2004 revenue estimate. While the state’s economic engine has recently shown signs of revving up, there are no guarantees. Therefore, House lawmakers agreed with the majority of the Governor’s recommended 2.5 percent across the board cut in state spending.

Still, House budget writers did see fit to make certain changes. House legislators set the tone of sacrifice by chopping more than $600,000 from their own operational budget. Likewise, they asked state agencies such as the Public Service Commission, the Department of Motor Vehicle Safety, the state auditor, and various state courts to tighten their belts just a little so that Georgia’s highest priorities could receive a few dollars more.

No priority could be higher than our children. The well being of Georgia’s children is always of the utmost importance to House members. They wholeheartedly agreed with the Governor’s recommendation to spend an additional $17 million to fully fund PeachCare, which provides quality health insurance for the children of Georgia’s working poor. House budget writers wanted to take this a step further, and were able to find another $166,000 to restore funding to help low-income and at-risk mothers to deliver healthy babies.

Healthcare is another high priority to Georgia’s citizens, and House lawmakers worked to find the necessary money, approximately $1.3 million, to save the state’s emergency dental program from elimination. Supporters of the emergency dental program pointed out that it is only used in cases of dire emergency, and in some cases with the patient’s life in danger. Without it, they say, Georgians who cannot afford dental insurance would have no choice but to suffer through their dental problem. House lawmakers also included more than $1.2 million to save the Central State Hospital’s Medical Surgical Hospital and its 32 state employees from the chopping block. Finally, hoping to maintain the quality and availability of future healthcare providers in Georgia, House lawmakers were able to scrounge an additional $400,000 to reduce the cuts for the Mercer and Morehouse medical schools.

Moving from healthcare to public safety, the House version of 1180 would spend an additional $575,000 to keep Georgia’s State Patrol Outposts manned around the clock. The Governor’s budget would have closed certain stations at nights and on weekends.

House members also want to do all they can to shield Georgia’s economy from the type of harsh recession which is now draining state coffers, and forcing such painful budget cuts. They have proposed a two-pronged effort to accomplish this goal. First, they want to promote and spread Georgia’s economic prosperity statewide. Secondly, they want to build a knowledgeable workforce by expanding academic opportunity for all Georgians. HB 1180 reflects both of these goals.

Hoping to promote prosperity, House budget writers were able to find $100,000 to help the state’s QuickStart program. QuickStart, which works with new industries to provide specialty job training for potential workers, is seen as a valuable tool for recruiting new business to this state. Furthermore, the House version of HB 1180 would restore more than $190,000 which the Governor had cut from the state Department of Labor’s job training and education program.

Also with an eye toward promoting prosperity throughout Georgia, House lawmakers decided to devote some bond revenue to a number of projects. The House plan would send $45 million in bond money to accelerate road improvement projects throughout the state, with another $20 million in bonds for local sewer and drinking water projects. The House version would also use $6.5 million in bond revenue to pay for upgrades within the Georgia Ports Authority.

Hoping to expand learning and academic opportunity in Georgia, House lawmakers were able to find the money to avoid a suggested $850,000 cut to the state’s libraries. They also spared the adult literacy program from a $50,000 reduction. Again, House members decided to use bond revenues to shore up the state’s academic institutions. Some $17 million in bonds would be used to fund expansion of Georgia’s many technical colleges, with more than $14 million going to the state’s public universities.

Other House changes to the FY 2004 amended budget include:

• $1.65 million would be spent to stop the furlough program in the state Department of Corrections. This program forces administration workers to take one day of unpaid leave per month.
  
• $125,000 in state money would be restored to the Georgia Rural Water Association.
  
• $100,000 to restore funds for the “Three O’clock Project,” which helps to steer at-risk children away from drugs by promoting academic excellence and a healthy lifestyle.

Others opposed the $1.2 million loss in funding for the PINES system, which allows libraries to share information and materials statewide. They pointed out that PINES is a nationally recognized cutting edge approach that gives Georgians the tools they need to learn, regardless of their location. Again, House budget leaders agreed with the assessment, but noted that the PINES money was used to spare state libraries from taking an additional $850,000 hit in the FY 2004 budget. They submitted that Georgia’s libraries were already down to bare bones after absorbing millions of dollars in reductions over the last two years. While they readily conceded the advantages of PINES, they suggested it would be of little use if too many libraries were forced to close their doors.

There were also those who challenged any spending which did not conform to basic needs. These members opposed funding for items such as golf courses, and welcome stations. While House budget leaders agreed with the sentiment, they pointed to the fact that these types of ventures are typically money makers for the state, saying a reduction in these areas would lead to an overall loss in state dollars.

Finally, a major issue of contention arose over what to do with some $90 million House budget writers were able to find which the Governor’s budget did not account for. House Appropriations Committee members always study each year’s spending proposal with a microscope. With Georgia suffering through a budget crunch, their efforts were doubled. Those efforts paid off when House budget writers found nearly $90 million which were unaccounted for in the Governor’s version of the spending plan. House leaders saw the money as a windfall to help the state avoid some of the brutal cuts in education, which many county officials are saying will force them to raise property taxes. Therefore, House budget writers earmarked this money to be used to prepay a large chunk of FY 2005's bond obligation debt. This would free that money to be spent on Georgia’s schools, giving local systems some relief and perhaps avoiding property tax increases throughout the state.

There were those who questioned this approach. While they sympathized with the state’s school systems, they warned that money found through a supposed accounting error could just as easily disappear upon further review. Furthermore, they suggested that, assuming the numbers are correct, the new money should be sent to the state’s revenue shortfall reserve fund. They pointed out that since 2002 Georgia has depleted its rainy day fund from more than $750 million, down to approximately $50 million. They submitted that such a low reserve fund is bad financial practice, and could imperil the economic future of this state.

A number of amendments were offered reflecting these concerns, but each was defeated. When all the debate was finished, House lawmakers voted 102-68 to pass the HB 1180. It now goes to the Senate where it will most likely undergo many changes. Today’s vote was merely the first step in a long process which usually is not completed until the session’s final days.

Having dispensed with fiscal matters, House members addressed six pieces of legislation in short order. Among them was one item which seeks to protect Georgia’s senior citizens from those who would prey upon them. HB 1250 creates a Senior Protection Advisory Council, which would oversee efforts to educate elderly citizens about crimes committed against them. The council would also teach seniors how to protect themselves, and the procedure for reporting illegal activities. The Attorney General would lead the council, and the Speaker of the House, the Governor, and the Lt. Governor would each appoint three of its members.

HB 1250 was fashioned after a similar program in Kentucky, which has proven very successful in reducing crimes against senior citizens. The legislation passed by a vote of 150-7.

Other items passing the House today include:

• HB 300 (147-6)– would allow a number of General Assembly members to buy into the state Legislative Retirement System. Lawmakers wishing to buy into the system must pay full actuarial costs.
• HB 1248 (162-0)– seeks to transfer licensing and oversight authority over household goods and common carrier vehicles into the Department of Motor Vehicle Safety.
• HB 1253 (160-0)– would allow the surviving spouse of a Medal of Honor recipient to maintain the Medal of Honor specialty license plate on his or her vehicle after the death of his or her spouse.
• HB 1331 (161-0)– seeks to grant Juvenile Court judges some discretion over whether to seal the records in certain types of cases.
• HB 1409 (160-2)– would provide a sales and use tax exemption for loose ice which is used to cool agricultural products during transportation. A similar exemption already exists for ice which is boxed with the agricultural crop.

Georgia House of Representatives
Public Information Office

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