Friday, January 27, 2012

The challenges of the State Budget




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ATLANTA (January 24, 2012) – Although the Georgia General Assembly recessed for an entire week only five days into the 2012 legislative session, it was to enable a very important task: reviewing Governor Deal’s budget recommendations for FY 2013, alongside the amended FY 2012 budget.



As required by law, Georgia must have a balanced budget and cannot allow any sort of deficit spending. These meetings are an essential part of the legislative process; allowing for a careful line-by-line review of the proposed budget and providing an open forum for conversation between legislators and state agency officials.



The FY2013 General Budget recommendation presented by the Governor called for a spending plan of approximately $19.2 billion. Governor Deal’s budget does not include any tax increases and is built on $929 million in revenue growth from existing sources. Tax revenue is projected to grow 5% over the FY12 Amended budget. While this might seem like a lot, it is less than 2007 when revenues approached their peak at $19.9 billion. In testimony before the committee, Dr. Ken Heaghney, the state’s economist, projected that the state would not reach the 2007 peak again until at least 2015.



The majority of the increased revenue went to cover growth due to population increases as well as to close projected deficits. K-12 enrollment growth of .36% required $59 million and teacher step increases for training and education required $56 million. Enrollment growth of 3.05% in the University System and 6.6% in Technical Schools resulted in a combined $93 million recommended for these agencies.



In order to meet our retirement obligations, $154 million was added to the budget. This increase was required primarily due to stock market losses, as well as the increase in state employees and teachers retiring. Not only does this “annual required contribution” keep the retirement plans fiscally sound, it is an important factor for bond raters as they assess the state’s Triple AAA bond rating. Deficits and enrollment growth in Medicaid and deficits in the State Employee Health Benefit plan claimed approximately $300 million of the increased growth revenue. Other deficits in the budget claimed an additional $100 million.



It is important to remember that though revenues have dropped since 2008, the State has seen an increase in the demand for services. The university system has seen 17% growth over this time. Technical schools have seen an increase of 46% from 2008 to 2011. Medicaid and PeachCare recipients grew 17% during this time as well.



Georgia needs to focus on pro-business incentives that will spur job creation and put Georgians back to work in order to propel further economic growth. Strategic tax reform is necessary rather than the quick alternative of simply raising taxes. The quickest way to turn Georgia’s economy around is to provide incentives for businesses seeking to relocate or expand operations in our state. In turn, these businesses will provide the jobs that will put Georgians back to work.





Highlights of Governor Deal’s Budget:



Education

Governor Deal has appropriated $58.7 million to fund enrollment growth in K-12 schools, along with $55.8 million for training and experience salary step increases for teachers. In addition, Governor Deal has included $8.6 million for the State Special Charter Schools in order to cover the state and local funding lost when the Georgia Supreme Court declared the Charter School Commission unconstitutional in May 2011.



Higher Education

The HOPE scholarship program will maintain the same award levels and grants as FY 2012, and the state will continue to appropriate $20 million for the needs-based one percent student loan program. In an effort to keep medical residents in Georgia, the Governor has proposed $5 million to create a second National Cancer Institute designated Cancer Center at Georgia Health Sciences University and $3.64 million to develop new graduate medical education programs.



Public Safety

The FY 2013 budget will utilize $10 million to create new Accountability Courts (drug, DUI, mental health and veteran courts), a proven method of reducing costs and recidivism rates, and also $35.3 million to add more beds to our prisons. Another $1.4 million will be used to create positions for parole officers to implement re-entry supervision for offenders serving their maximum service.



Bonds

The addition of $46.7 million in bonds to complete the Savannah Harbor Expansion Project will keep our state globally competitive, while $177.8 million will fund infrastructure needs for K-12 schools, including the $25 million purchase of 320 buses.



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Sen. Cecil Staton serves as Senate Majority Whip. He represents the 18th Senate District, which includes portions of Bibb, Crawford, Houston, Jones, and Monroe counties. He may be reached at 404.656.5039 or by email at cecil.staton@senate.state.gov

Read more: The Warner Robins Patriot - Budget overview for FY 2012 and FY 2013

Legislative Priorities for 2012 and the Budget




The 2012 Legislative Session is officially underway, and lawmakers wasted little time in getting down to work with ambitious goals for the session that will help secure the future prosperity of Georgia. Hot-topics up for debate this year include tax and criminal justice reform, economic development, job creation, government oversight, higher education and transportation.

The opening day of the 2012 legislative session was anything but ceremonial as the Ga. Senate passed two significant pieces of legislation aimed at advancing student achievement and ensuring the right people are in place to teach our students and lead our education efforts. In a 38-15 vote, the Georgia Senate passed Senate Bill 184, authored by President Pro Tempore Tommie Williams. Following implementation of this new law, school boards cannot simply fire employees based on their date of hire. Instead, the new law will require local school boards to consider a teacher’s effectiveness in the classroom when considering whom to lay off during a workforce reduction.

Senate Bill 38, authored by Sen. Majority Leader Chip Rogers, also passed the Senate on Monday in a unanimous vote. Senate Bill 38 allows the State School Superintendent to hire and fire staff members at the Georgia Department of Education and State Schools for the Deaf and Blind. These measures are paramount in securing the State School Superintendent’s efforts to advance positive educational reform in Georgia.

In a key step towards creating a more streamlined and efficient university system, the Board of Regents approved the merger of Macon State College and Middle Georgia College, as well as several other colleges throughout the state. This historic plan is aimed at placing taxpayer money back into the classroom where it can truly make a difference. As chairman of appropriations sub-committee on Higher Education, I applaud Georgia’s university system chancellor and the board of regents on their decision to consolidate eight of Georgia’s institutions of higher learning to meet the ever-changing demands of the 21st century.

This year, lawmakers will focus on balancing the state budget, amidst a projected $1 billion dollar budget shortfall. Comparatively to other states, Georgia operates under a traditionally conservative fiscal process and boasts a balanced budget as required by our Constitution. In an effort to reduce state spending, legislators will have to make some tough decisions in Fiscal Year 2013 as stimulus funds, reserves and one-time funds are no longer available. In addition, deep cuts in federal spending will require innovative solutions to meet the needs of Georgians while living within our means.

Comprehensive tax reform continues to be an important issue up for debate this legislative session. During last year’s session, the Special Joint Committee on Georgia’s Tax Structure considered several pieces of legislation including a sales tax exemption for energy used in manufacturing, which is important for Georgia to remain competitive in recruiting new manufacturing businesses.

In addition to balancing the state budget and pushing tax reform measures, one of our top priorities this session will be focused on strengthening Georgia’s economy through job creation. Over the past several years, Georgia has quickly become an attractive destination for companies to do business. With accessibility to one of the nation’s busiest airports and proximity to some of the nation’s leading Fortune 500 companies, including Home Depot, Delta, and Coke, Georgia has become one of the top 10 states to conduct business.

As a member of the Appropriations, Transportation, Banking and Financial Institutions and Finance committees, I will continue to support pro-business policies that put more Georgians back to work and provide incentives for companies to do business here in the Peach State.

To build a world-class workforce here in Georgia, we must continue to develop cost effective strategies that boost Georgia’s competitiveness in the global marketplace and thereby increase our ability to attract an innovative and highly skilled workforce.

During the 2012 legislative session, I look forward to working with my colleagues in the Senate to support legislation aimed at cultivating an environment advantageous to the future growth and development of Georgia.



# # # #

Sen. Cecil Staton serves as Senate Majority Whip. He represents the 18th Senate District, which includes portions of Bibb, Crawford, Houston, Jones, and Monroe counties.

Read more: The Warner Robins Patriot - 2012 Legislative Priorities

Monday, January 16, 2012

Senator Staton's Legislative Priorities for 2012

Here is a link to coverage of our legislative priorities for 2012

The 2012 Session begins

The 2012 Legislative Session is officially underway, and lawmakers wasted little time in getting down to work with ambitious goals for the session that will help secure the future prosperity of Georgia. Hot-topics up for debate this year include tax and criminal justice reform, economic development, job creation, government oversight, higher education and transportation.

The opening day of the 2012 legislative session was anything but ceremonial as the Ga. Senate passed two significant pieces of legislation aimed at advancing student achievement and ensuring the right people are in place to teach our students and lead our education efforts. In a 38-15 vote, the Georgia Senate passed Senate Bill 184, authored by President Pro Tempore Tommie Williams. Following implementation of this new law, school boards cannot simply fire employees based on their date of hire. Instead, the new law will require local school boards to consider a teacher’s effectiveness in the classroom when considering whom to lay off during a workforce reduction.

Senate Bill 38, authored by Sen. Majority Leader Chip Rogers, also passed the Senate on Monday in a unanimous vote. Senate Bill 38 allows the State School Superintendent to hire and fire staff members at the Georgia Department of Education and State Schools for the Deaf and Blind. These measures are paramount in securing the State School Superintendent’s efforts to advance positive educational reform in Georgia.

In a key step towards creating a more streamlined and efficient university system, the Board of Regents approved the merger of Macon State College and Middle Georgia College, as well as several other colleges throughout the state. This historic plan is aimed at placing taxpayer money back into the classroom where it can truly make a difference. As chairman of appropriations sub-committee on Higher Education, I applaud Georgia’s university system chancellor and the board of regents on their decision to consolidate eight of Georgia’s institutions of higher learning to meet the ever-changing demands of the 21st century.

This year, lawmakers will focus on balancing the state budget, amidst a projected $1 billion dollar budget shortfall. Comparatively to other states, Georgia operates under a traditionally conservative fiscal process and boasts a balanced budget as required by our Constitution. In an effort to reduce state spending, legislators will have to make some tough decisions in Fiscal Year 2013 as stimulus funds, reserves and one-time funds are no longer available. In addition, deep cuts in federal spending will require innovative solutions to meet the needs of Georgians while living within our means.

Comprehensive tax reform continues to be an important issue up for debate this legislative session. During last year’s session, the Special Joint Committee on Georgia’s Tax Structure considered several pieces of legislation including a sales tax exemption for energy used in manufacturing, which is important for Georgia to remain competitive in recruiting new manufacturing businesses.

In addition to balancing the state budget and pushing tax reform measures, one of our top priorities this session will be focused on strengthening Georgia’s economy through job creation. Over the past several years, Georgia has quickly become an attractive destination for companies to do business. With accessibility to one of the nation’s busiest airports and proximity to some of the nation’s leading Fortune 500 companies, including Home Depot, Delta, and Coke, Georgia has become one of the top 10 states to conduct business.

As a member of the Appropriations, Transportation, Banking and Financial Institutions and Finance committees, I will continue to support pro-business policies that put more Georgians back to work and provide incentives for companies to do business here in the Peach State.

To build a world-class workforce here in Georgia, we must continue to develop cost effective strategies that boost Georgia’s competitiveness in the global marketplace and thereby increase our ability to attract an innovative and highly skilled workforce.

During the 2012 legislative session, I look forward to working with my colleagues in the Senate to support legislation aimed at cultivating an environment advantageous to the future growth and development of Georgia.


# # # #

Sen. Cecil Staton serves as Senate Majority Whip. He represents the 18th Senate District, which includes portions of Bibb, Crawford, Houston, Jones, and Monroe counties.

Sunday, January 1, 2012

New Session of the Georgia General Assembly begins January 9

One week from Monday, the 2012 session of the Georgia General Assembly will convene. This will be my eighth regular session representing Georgia’s 18th district. A new session always brings excitement, but also trepidation. And it brings considerable responsibility for representing the values, views, and needs of constituents.

What will the new session bring? Certainly the number one issue will continue to be the state’s budget. Georgia is big business. Prior to the recession, our budget had grown to more than 20 billion dollars annually. Since 2008, we have cut the budget to reflect declining state revenues. Fortunately the leadership of your state does not share the values of our counterparts in Washington, or even some in local government, where spending more and taxing more are often the answer to declining revenues.

We have cut billions from our state’s budget, which now stands closer to 18 billion for the current fiscal year. Although revenues have increased this year, state agencies have been asked to submit budgets that are two percent less than the current fiscal year. Revenues are up modestly, but so are pressures related to such items as health care costs for state employees and the state’s responsibilities regarding the education of our children and our technical colleges and universities.

As long as I have the honor of serving in the Senate, I will continue to be a voice for fiscal responsibility and conservatism. This is no time for more spending or higher taxes. Georgians are still feeling the effects of the current economic downturn. We must keep our financial house in order and position Georgia for a strong economy and more jobs when a recovery comes.

Other issues we will surely face include the need for jobs and the possibility of tax reform. My goal in these discussions will be to create a Georgia where businesses want to locate and to help current businesses. One way to do this is to eliminate Georgia’s tax on the energy used in manufacturing. Surrounding states do not have this tax and it is a deterrent to manufacturing businesses that might otherwise wish to locate in Georgia. Generally, I am also in favor of consumption taxes rather than income taxes. I think it would be great if we could eliminate the state’s income tax, as our neighbors in Florida and Tennessee already do quite well without the income tax.

Georgians expect good government that is fiscally responsible. We don’t need any more government than Georgian’s can afford. That means no tax increases and living within our means, a lesson Georgia’s families have had to learn in this recession and one we must make sure state Government continues to embrace.

Please call on me with your ideas or concerns throughout the session by calling 404-656-5039 or sending an email to: cecil.staton@senate.ga.gov.