Governor Perdue Submits Supplemental FY04 Budget to Joint Appropriations Committee of the House and Senate

Monday, January 5, 2004

Contact: Office of Communications 404-651-7774

 

Atlanta - Before the Joint Appropriations Committee of the State House and Senate, Governor Sonny Perdue today submitted his supplemental Fy04 budget to the General Assembly. The budget reflects Governor Perdue's top priorities - children, education, and job creation. The Governor's main budget principles of priority based budgeting and responsible stewardship of taxpayer dollars form the core of his budget recommendations.

"Georgians still face tough choices about how to stretch a dollar, about what necessities they must fund, and what things they can do without until later," said Governor Sonny Perdue. "As stewards of the public treasury, we face those same decisions. And we must approach our decisions with the same care that Georgians bring to their family finances."

In August 2003, Governor Perdue directed that all state agencies identify 2.5% in additional cuts to the Fy04 budget for the mid-year supplemental. Highlights of the Governor's supplemental budget include:

Protecting Georgia 's Children

• As promised, $18.1 million is included to fully fund PeachCare. These additional funds will cover growth in enrollment and reimburse doctors and hospitals for care provided beyond the original appropriation.
• $12.9 million in additional funding for the Department of Family and Children Services (DFCS) to implement a new "Level of Care" placement system that will be more focused on the unique needs of children in the child protection system.

Strengthening and Improving Education

• Education is a priority where 2.5% will not be cut. The recommendations include a midterm adjustment to the QBE formula of $118 million - reflecting a 1.75% growth in enrollment.
• The education budget also includes $8.8 million for a mid-term adjustment to equalization grants for poorer schools, $1.8 million of additional funding for Criterion Reference Competency testing in support of education accountability, and $9 million in lottery funding to the Office of School Readiness to meet increased enrollment in the Pre-K program.

Jobs for Georgians

• The budget maintains QuickStart and the Equity and Edge programs at the current funding level.
• Most programs for economic recovery and job creation will be reflected in the Fy05 budget recommendations.

"I am confident that my supplemental Fy04 budget recommendations meet those principles of taking care of children, education, jobs, bringing greater efficiency to government, and living within our means," said Governor Perdue.

During his remarks, Governor Perdue also announced the December 2003 revenue figures. Net revenue collections for the month of December 2003 (Fy04) totaled $1,106,290,000 compared to $1,072,438,000 for December 2002 (Fy03), an increase of $33,852,000 or a disappointing 3.2%. The percentage increase year-to-date for Fy04 compared to Fy03 is 4.2%.

"I see this as a blip in our path to recovery, but it highlights the need to budget very conservatively for Fy2004 and Fy2005," said Governor Perdue.

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Georgia Department of Revenue Comparative Net Revenue Collections ( unaudited - 000's) For the Month Ended
GENERAL FUND	December 2002 (FY 2003)		December 2003 (FY 2004)		$ Change		% Change
Sales Tax - General	373,255		386,638		13,383		3.6%
Motor Fuel - Gal. & Sales	38,425		37,590		(835)		-2.2%
Income Tax - Individual	532,405		555,217		22,812		4.3%
Income Tax - Corporate	76,004		71,694		(4,310)		-5.7%
Tobacco Taxes	10,646		21,002		10,356		97.3%
Alcoholic Beverage Taxes	7,567		9,752		2,185		28.9%
Estate Tax	10,495		6,993		(3,502)		-33.4%
Property Tax	14,689		12,649		(2,040)		-13.9%
Total Taxes	1,063,486		1,101,535		38,049		3.6%
Other Revenues:
Peace Officer Training	1,273		1,989		716		56.2%
Other Fees and Sales	7,679		2,766		(4,913)		-64.0%
Total Regulatory Fees & Sales	8,952		4,755		(4,197)		-46.9%
Net Revenue	1,072,438		1,106,290		33,852		3.2%
	Year-to-date				$		%
GENERAL FUND	FY 2003		FY 2004		Change		Change
Sales Tax - General	2,299,426		2,403,468		104,042		4.5%
Motor Fuel Tax - Gals. & Sales	231,909		240,645		8,736		3.8%
Income Tax - Individual	3,161,490		3,262,746		101,256		3.2%
Income Tax - Corporate	163,284		136,992		(26,292)		-16.1%
Tobacco Taxes	36,611		90,473		53,862		147.1%
Alcoholic Beverage Taxes	63,297		69,591		6,294		9.9%
Estate Tax	47,920		25,353		(22,567)		-47.1%
Property Tax	32,367		39,037		6,670		20.6%
Total Taxes	6,036,304		6,268,305		232,001		3.8%
Other Revenues:
Peace Officer Training	9,915		10,670		755		7.6%
Other Fees and Sales	30,562		51,361		20,799		68.1%
Total Regulatory Fees & Sales	40,477		62,031		21,554		53.2%
Net Revenue	6,076,781		6,330,336		253,555		4.2%
Notes:
1. FY 2004 comparative report has changed. Current year totals are reported on the right of prior year.
2. Totals do not include Insurance Premium Tax and Fees and Motor Vehicle License Taxes.
3. Major tax categories are reported. Other taxes and fees are included in "Other Fees and Sales".
4. Other Fees and Sales include taxes that have been deposited in the bank, but the returns have not been processed.
It also includes unclaimed property and children's trust fund.
5. 2nd Motor Fuel taxes were $17.8M and $18.9M in December 2003 and 2002, respectively.