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FY 2013 Budget
Overview
FY 2012 Budget Overview | www.gbpi.org
Georgia Budget & Policy InstituteAlan Essig, Executive DirectorMarch 1, 2012
FY 2012 Budget Overview | www.gbpi.org
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 2012 Budget Overview | www.gbpi.org
FY 2013 State General and Motor Fuel Funds Budget ($18.2 Billion)
FY 2012 Budget Overview | www.gbpi.org
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)
FY 2012 Budget Overview | www.gbpi.org
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 2012 Budget Overview | www.gbpi.org
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 2012 Budget Overview | www.gbpi.org
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 2012 Budget Overview | www.gbpi.org
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)
FY 2012 Budget Overview | www.gbpi.org
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)
FY 2012 Budget Overview | www.gbpi.org
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
FY 2012 Budget Overview | www.gbpi.org
2020 Georgia Coalition • Coalition of over 80 organizations
advocating for a balanced approach to budget and revenue solutions.
• Website – 2020Georgia.org
FY 2012 Budget Overview | www.gbpi.org
LET’S KEEP IN TOUCH.Alan Essig, Executive [email protected]
FY 2012 Budget Overview | www.gbpi.org
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.
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