Governor Perdue Signs $21.1 Billion Fiscal Year 2009 Budget

Wednesday, May 14, 2008

Contact: Office of Communications 404-651-7774

Issues Line-Item Vetoes and Non-Binding Language Disregards

             ATLANTA – Governor Sonny Perdue today signed into law HB 990 which authorizes Georgia’s $21.1 billion Fiscal Year 2009 (FY09) Budget.  The FY09 budget year begins July 1, 2008. 

             “Georgia is a growing, thriving state and this budget provides a sound fiscal plan to sustain that growth over the next year and into the future,” said Governor Sonny Perdue.  “The FY09 budget strikes an important balance between wise investments and prudent cost-saving measures.”

             The budget includes funding for several of Governor Perdue’s priorities for the coming year, while maintaining the fiscal discipline necessary given the recent slowing of the growth in the state’s revenue collections.  On March 10, 2008, Governor Perdue reduced the FY09 revenue estimate by $245 million in light of slowing revenue projections.

            Ensuring that Georgia’s children receive a world-class education remains a top priority for Governor Perdue as reflected by the budget he signed into law today.  The budget includes $7.5 million to expand the Governor’s graduation coach program in Georgia’s middle and high schools.   In the 2006-2007 school year, graduation coaches were instrumental in decreasing the number of dropouts by over 2,200 students.  An additional $6.4 million in lottery funds are provided to expand Georgia’s pre-K program to a total number of 79,000 slots.    

Further funding for education is devoted to Georgia’s university system.   $430 million in bond funds is provided for higher education. 

             The FY09 budget includes funds to aid local governments in planning for the future.  $80 million is appropriated for local governments to develop and build water reservoirs and other water infrastructure improvements.  $48.1 million is appropriated for the State Transportation Infrastructure Bank which will assist local government with critical transportation projects including road, rail and commuter transit projects.

             Providing the law enforcement personnel necessary to protect Georgians is also a priority addressed in the FY 09 budget.  $2.8 million will fund an additional trooper school for the Georgia State Patrol putting 50-75 additional state troopers on Georgia’s roads.  $18.2 million will go towards increasing the state’s prison capacity.  In addition, $1 million will go towards funding the Identity Theft Task Force at the Georgia Bureau of Investigation to protect Georgians from the scourge of identity theft.

             The FY09 budget also funds measures necessary to allow Georgians to maintain a robust healthcare system.  $39.6 million will go towards increasing Medicaid reimbursement rates for hospitals, ambulance services and other healthcare providers.  500 more mental retardation and development disability waiver slots will be available through a $6.2 million appropriation.  Nursing homes will receive $17.6 million in reimbursements for capital upgrades.  An additional $31.3 million is appropriated to upgrade the state’s mental health facilities and community mental health system.        

             In order to maintain a strong workforce, Georgia’s teachers and state employees will also receive 2.5 percent pay raises during FY09.  Also, Georgia’s full-time teachers and media specialists will again receive $100 gift cards to be used on school supplies during Georgia’s annual back-to-school sales tax holiday. 

            Governor Perdue also line-item vetoed certain measures to ensure a disciplined, fiscally-responsible budget.  The savings total $14.2 million in cash this year, including cash projects and debt service on $22 million in vetoed bond projects, keeping Georgia’s bond debt within the responsible boundaries of the state’s debt management plan.  Vetoed items and messages are below:
Line-Item Vetoes by the Governor

Section 21, pertaining to the Department of Economic Development, page 73, line 2499:

 

The General Assembly appropriated $125,000 in state general funds to the Tourism program for the development of a five year business plan for the Georgia Tourism Foundation.  The initial state investment of $1.2 million in the Foundation was intended to generate significant private investment in tourism development.  The sustainability of the foundation is dependent on the success of this public-private partnership. The Tourism Foundation has been charged to raise funds from outside sources for their five year business plan.  Therefore, I veto the appropriation of $125,000 contained in this proviso.

 

Section 21, pertaining to the Department of Economic Development, page 73, line 2500:

 

The General Assembly earmarked $150,000 in state general funds to the Tourism program for the restoration of Augusta's historic Powder Works chimney.  State support for this project is not justified.  Therefore, I veto the appropriation of $150,000 contained in this proviso.

 

 

Section 21, pertaining to the Department of Economic Development, page 73, line 2502:

 

The General Assembly appropriated $3,000,000 in state general funds to the Tourism program for the National Infantry Museum.  The state has fulfilled its commitment to the National Infantry Museum with the $5,000,000 appropriation in the fiscal year 2008 budget.  Therefore, I veto the appropriation of $3,000,000 contained in this proviso.

 

Section 21, pertaining to the Department of Economic Development, page 73, line 2503:

 

The General Assembly appropriated $250,000 in state general funds to the Tourism program for the Georgia International and Maritime Trade Center Authority to perform an economic impact and environmental improvement study.  The State of Georgia issued a total of $17.7 million in bonds for the Trade Center in 1994 and 1995 and still has outstanding debt service of nearly $6 million.   The local community has reaped significant economic benefit from the state’s investment and should shoulder the financial investment involved in the feasibility study.   Therefore, I veto the appropriation of $250,000 contained in this proviso.

 

Section 23, pertaining to the Department of Education, page 87, line 2954:

 

The General Assembly appropriated $900,000 in state general funds to the Technology/Career Education program in order to provide funds for a Classroom Technology initiative.  Classroom technology is important as evidenced by my FY ’09 budget recommendation of $17,696,972 in state funds and $52,975,212 in total funds for the Technology/Career Education program as a whole.   While classroom technology is important, the failure to fund such a classroom technology initiative comprehensively or demonstrate the need for such funding on a limited basis is the fatal flaw.  Therefore, I veto the appropriation of $900,000 contained in this proviso.

 

Section 26, pertaining to the Department of Human Resources, page 125, line 4245:

 

The General Assembly appropriated $31,007 in state general funds for the Brain and Spinal Injury Trust Fund program to provide for increased operating expenses.  The trust fund operates efficiently from annual DUI fines.  State general fund support for this program is not justified.  Therefore, I veto this appropriation. 

 

Section 29, pertaining to the Department of Juvenile Justice, page 141, line 4788:

 

The General Assembly earmarked $600,000 in the Children and Youth Coordinating Council for “Connecting Henry, Inc.” to provide for a multi-jurisdictional collaborative to address the high drop out rate in the community.  I am supportive of the goals of this collaborative and encourage them to work creatively with the local school system and our graduation and community coaches towards the goal of lowering the drop out rate in Henry County.  Given the myriad of other initiatives in this state directed towards this laudable goal and the equivalent need in other communities for similar services, I cannot justify an earmark of state funds for this particular collaborative.  Nonetheless, funding is also available on a competitive basis through the Governor’s Office for Children and Families for these types of activities.  Therefore, I veto the appropriation of $600,000 contained in this proviso. 

 

Section 37, pertaining to the Department of Public Safety, page 164, line 5581:

 

The General Assembly appropriated $250,000 in state general funds to the Field Offices and Services program for the purchase of equipment for the Columbia County State Patrol Post.  This is a new location for the State Patrol Post currently in Thomson, McDuffie County.  Equipment and other associated expenses will be transferred from the Thomson location.  This appropriation was given higher priority by the General Assembly than funding for the 87th trooper school which would have resulted in at least 50 additional troopers in FY09.  Sufficient funding exists within the Department of Public Safety to cover any additional costs incurred as a result of the transfer.   Therefore, I veto the appropriation of $250,000 contained in this proviso.

 

Section 37, pertaining to the Department of Public Safety, page 167, line 5705:

 

The General Assembly appropriated $250,000 in state general funds to the Public Safety Training Center to fund expenses for the North Central Georgia Law Enforcement Academy.  This appropriation seeks to almost double the $271,952 annual contract currently between the Georgia Public Safety Training Center and the Cobb County Commission.  This increase would create significant inequities with the other regional law enforcement academies.  As stated in the veto message for this item in House Bill 989, increases for law enforcement academies should be managed on a fair and equitable basis for all academies.  Therefore, I veto the appropriation of $250,000 contained in this proviso.

 

Section 39, pertaining to the Board of Regents, page 175, line 5998:

 

The General Assembly appropriated $360,000 in state general funds to the Public Service/Special Funding Initiatives program for the Georgia Water Planning and Policy Center at Albany State University and Georgia Southern University.  $11,100,000 will be available for water planning and projection modeling as a part of the implementation of the statewide water plan.  The university system is expected to be an active participant in these planning activities.  Directed and earmarked state funding for this program is not justified.  Therefore, I veto the appropriation of $360,000 contained in this proviso.

 

Section 39, pertaining to the Board of Regents, page 178, line 6087:

 

The General Assembly appropriated $200,000 in state general funds to the Teaching program for the planning and implementation of a program at Kennesaw State University for disadvantaged youth.  This program was not identified by the Board of Regents or Kennesaw State University as a priority for the Teaching program in FY09.  I support the use of state facilities and staff at Kennesaw State University to plan and implement this program in conjunction with local community support; however, due to the unspecified need associated with this project and other priorities within the Teaching program, I veto the appropriation of $200,000 contained in this proviso.

 

Section 45, pertaining to the Department of Technical and Adult Education, page 201, line 6893:

 

The General Assembly appropriated $25,000 to the Economic Development (QuickStart) program for Base Closure and Realignment (BRAC) job retraining program for Atlanta Technical College.  The Department has indicated it has sufficient funding to undertake this activity without an additional appropriation. Therefore, I veto the appropriation of $25,000 contained in this proviso.

 

Section 45, pertaining to the Department of Technical and Adult Education, page 202, line 6914:

 

The General Assembly appropriated $250,000 in state general funds to the Technical Education program for the creation of a college and technical facility in Catoosa County at Bentley Place.  This facility is not on the Department’s priority list for expansion.  Due to the unspecified need associated with this project and other priorities within the Technical Education program, I veto the appropriation of $250,000 contained in this proviso.

 

Section 46, pertaining to the Department of Transportation, page 204, line 6982:

 

The General Assembly earmarked $5,200,000 in state general funds to the Airport Aid program for the Paulding County Regional Airport ($4,000,000), Cherokee County Airport Authority ($700,000), and the Glynn County Airport Commission ($500,000).  State funding for airports is currently determined in accordance with statewide priorities for air transport and is awarded on a competitive basis.  Local communities are encouraged to seek funding from Airport Aid at the Department of Transportation ($23 million available in FY09) and the AirGeorgia program at the OneGeorgia Authority ($15 million available in FY09).  Therefore, I veto the appropriation of $5,200,000 contained in this proviso.

 

Section 49, pertaining to the General Obligation Debt Sinking Fund, pages 213-214, line 7303:

 

This language authorizes the appropriation of $683,200 in debt service to finance educational facilities for county and independent school systems through the State Board of Education specifically for the design and construction of a charter school to be operated by the Cobb County School System through the issuance of $8,000,000 in 20-year bonds.  Historically, funding for a start-up charter school is not included in general obligation debt, and its inclusion here sets a costly precedent.  Funding is available for operating and facility grants on a competitive basis for start-up charter schools through the Department of Education.  Therefore, due to limitations on additional debt contained in the state’s debt management plan and the reasons stated above, I veto this language (page 213, line 7303) in the provisions relative to Section 49 General Obligation Debt Sinking Fund and the state general funds of $683,200.

 

Section 49, pertaining to the General Obligation Debt Sinking Fund, page 214, line 7305:

 

This language authorizes the appropriation of $1,155,000 in debt service to finance educational facilities for county and independent school systems through the State Board of Education specifically for career and vocational equipment per House Bill 905 through the issuance of $5,000,000 in 5-year bonds. Due to the failure of the passage of House Bill 905, the availability of other funds for equipment purchases, and due to the limitations on additional debt contained in the state’s debt management plan, I veto this language (page 214, line 7305) in the provisions relative to Section 49, General Obligation Debt Sinking Fund and the state general funds of $1,155,000.

 

Section 49, pertaining to the General Obligation Debt Sinking Fund, page 224, line 7405:

 

This language authorizes the appropriation of $657,580 in debt service to finance projects and facilities for the Department of Transportation, specifically for rail lines for Lyerly to Coosa, Nunez to Vidalia, Ardmore to Sylvania, St. Augustine Road Rail Switching Yard Expansion and McNatt Boulevard Extension rail crossing through the issuance of $7,700,000 in 20-year bonds. Financing for these rail projects should not be considered until processes for project selection have been reviewed and adequate justification is made for continued state investment.  Due to limitations on additional debt contained in the state’s debt management plan and the reasons stated above, I veto this language (page 224, line 7405) in the provisions relative to Section 49 General Obligation Debt Sinking Fund and the state general funds of $657,580. 

 

Section 49, pertaining to the General Obligation Debt Sinking Fund, page 224, line 7406:

 

This language authorizes the appropriation of $170,800 in debt service to finance projects and facilities for the Department of Transportation, specifically for the construction of a welcome center for Tallulah Falls on the Rabun County side through the issuance of $2,000,000 in 20-year bonds.  In consideration of other priority items as expressed by the General Assembly and limitations on additional debt contained in the state’s debt management plan, I veto this language (page 224, line 7406) in the provisions relative to Section 49 General Obligation Debt Sinking Fund and the state general funds of $170,800. 

 

 

Non-Binding Information Language to Disregard

 

            Certain language contained in this appropriation bill is included for informational purposes and thus does not constitute an appropriation.  Because the language is not an appropriation, it is non-binding, and the Governor may authorize the agencies to utilize those funds in accordance with the overall purpose of the appropriation and within the general law authority of the agency.  Passages of non-binding information language to disregard are included below:

 

Section 16, pertaining to the Department of Community Health, page 49, line 1718:

 

The General Assembly seeks to earmark $1,000,000 in state general funds in the Health Care Access and Improvement program for the Georgia Association of Primary Health Care by instructing the department to enter into a contract with the association.  Additional language instructs the department to pay the contractor in three allotments, upon the performance of certain tasks and to direct funding to Centers in Montgomery County, Jones County, Clarke County and Effingham County.  Pursuant to the general law powers of the department, the department is authorized to utilize appropriate procurement and vendor management procedures to ensure that program services intended by the General Assembly are provided in a fair, equitable, efficient and effective manner.  The named contractor in this earmark is not prohibited from participating in the department’s procurement process.

 

Section 16, pertaining to the Department of Community Health, page 49, line 1719:

 

The General Assembly seeks to earmark $1,000,000 in state general funds in the Health Care Access and Improvement program for the Georgia Association of Primary Health Care by instructing the department to enter into a contract with the association.  Additional language instructs the department to pay the contractor in three allotments, upon the performance of certain tasks and to direct funding to four named centers.  Pursuant to the general law powers of the department, the department is authorized to utilize appropriate procurement and vendor management procedures to ensure that program services intended by the General Assembly are provided in a fair, equitable, efficient and effective manner.  The named contractor in this earmark is not prohibited from participating in the department’s procurement process.

 

Section 16, pertaining to the Department of Community Health, page 51, line 1777:

 

The General Assembly seeks to instruct the department to provide a rate increase for Psychological Residential Treatment Facilities (PRTFs) within the Low-Income Medicaid program by increasing the cap on the per diem rate to be consistent with other states and sufficient to reimburse all covered behavioral health.  As the Centers for Medicare and Medicaid Services (CMS) must approve a rate increase before federal matching funds may be received, the department is authorized to pursue CMS authorization of a rate update based on the 2006 cost report and according to CMS payment guidelines. 

 

Section 16, pertaining to the Department of Community Health, page 53, line 1825:

 

The General Assembly seeks to instruct the department to adjust pharmacy benefit manager reimbursement rates to independent pharmacies to Average Wholesale Price -13% + $3.41 per script dispensing fee in the State Health Benefit Plan program.  This language circumvents the department’s effort to negotiate competitive rates in accordance with benefit plan management practices.  The department is authorized to maintain reimbursement rates in accordance with the purpose of the program and the Department’s general law powers.

 

Section 22, pertaining to the Department of Education, page 80, line 2722:

 

The General Assembly provided $384,375 in state general funds for the Georgia Virtual Academy in the Foreign Language program.  This funding would be limited to 1,250 elementary students enrolled at the Georgia Virtual Academy.  The Department is authorized to utilize this funding to provide foreign language media materials to all elementary schools in accordance with the purpose of the program and the general law powers of the Department.

 

Section 26, pertaining to the Department of Human Resources, page 122, line 4144:

 

The General Assembly seeks to instruct the department to provide a rate increase for Psychological Residential Treatment Facilities, (PRTF's) by increasing the cap on the per diem rate.  The Department is authorized to adjust the cap on the per diem rate based on the 2006 cost report in accordance with its general law powers and not to exceed budgeted state funds.

 

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