FY 2012 Budget Overview |

FY 2012 Budget Overview | www.gbpi.org

Welcome to the 2013 Policy Conference:

Alan Essig, Executive DirectorGeorgia Budget & Policy Institute

Join the Twitter conversation: #gaworkforce

“Wasn’t that Alan Essig?”

• FY 2013 Revenue Estimate lowered from 5.2% growth to 4.1% ($190 million)

• FY 2014 Revenue Estimate based on 4.6% growth

• Revenues grew 4.9% first 6 months of FY 2013

To Increase reserves by $300 million revenues would

need to grow between 7% and 8%.


Revenue Estimate


FY 2014 State General and Motor Fuel Funds Budget ($18.8 Billion)

Education, 51.5%

Debt Service; 6.4%

Transportation4.3%

General Government 3.9%

Human Services2.6%

Judicial Branch 0.9% Legislative Branch

0.4%

Education51.5%

Health Care

20.9%

Criminal Justice9.2%

Debt Ser-vices6.4%


Rainy Day Fund Needs to Be Rebuilt

FY 2001

FY 2002

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

$-

$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

$723 M $700 M

$260 M

$51 M

$257 M

$793 M

$1.54 B

$566 M

$103 M $116 M

$328 M $378 M

Medicaid $224,878,733K-12 and University System Formula Growth

$210,207,407

Teachers and State Employees Retirement System Contributions

$127,253,261

Debt Service $74,916,396K-12 Education Equalization $40,964,947Department of Justice Settlement Agreement

$35,395,625

Department of Community Affairs – Economic Development

$24,475,000


FY 2014 Budget Drivers ($518 million new revenue)


Cuts to State Budgets (FY 2009 – FY 2014)

Series1

-40.0% -30.0% -20.0% -10.0% 0.0% 10.0% 20.0% 30.0%

-30.5%

-24.9%

-22.2%

-17.5%

-17.5%

-9.6%

-5.4%

-4.6%

13.8%

16.6%

18.8%

-6.5%

Debt Ser-vices

Behavioral Health and Developmental Dis-

abilitiesMedicaid and PeachCare

All State

Public SafetyTransporata-tionK-12 Educa-tionTechnical College Sys-temBoard of Regents

All Other AgenciesHuman ServicesNatural Re-sources


FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13$3,000

$3,100

$3,200

$3,300

$3,400

$3,500

$3,600

$3,700

$3,800

$3,609

$3,734$3,728

$3,617

$3,541

$3,294

$3,494

$3,572

$3,442

$3,334

$3,159

$3,204$3,178

Inflation Adj. (2001)

K-12 Has Not Kept Up With Student Growth and Inflation This Past DecadeDepartment of Education Expenditures Per FTE (FY 2001 – FY 2013)

FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

$11,000

$12,000

0

50,000

100,000

150,000

200,000

250,000

300,000$11,278

$10,435

$8,104

$7,243 $7,049$7,244 $7,273

$7,420

$6,834

$5,661$5,137

$4,763$5,067

154,941164,441197,801

210,180214,863

218,617225,197 235,186

247,168266,575

276,109281,559

278,319

Inflation adj. 2001

FTE Enrollment


Regents Funding Lags Behind Student Growthand InflationBoard of Regents Funding Per FTE (FY 2001 to FY 2013)


FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

0

20,000

40,000

60,000

80,000

100,000

120,000

$4,024$4,293

$4,477

$3,481

$2,785$2,582

$3,01172,58570,480 73,897

81,004

101,094

107,629

93,368

Tech Ed. Funding per FTE Tech Ed. Full-time Equivalent

Declining Support for Technical College Systems


HOPE Scholarships - Public Schools

46.6%

Pre-Kindergarten,34.3%

HOPE Grant10.6%

HOPE Scholarships Private Schools5.2%

Low Interst Loans 2.2%

HOPE Administration 0.9%

HOPE GED0.2%

FY 2014 Lottery Funds Budget ($911 Million)

Fair and Adequate Tax Reform | www.gbpi.org

Individual Income Tax,47.3%

Corporate Income Tax,4.1%

Sales Tax,27.1%

Motor Fuel Tax 5.2%

Other Taxes9.9%

Fees, Interest, Sales,6.4%

Other Taxes9.9%

Georgia Revenues


4.0%

4.5%

5.0%

5.5%

6.0%

6.5%

7.0%

6.0%

6.3%

6.0%

5.6%

5.9%

5.9%

6.0%6.0%

6.0%

5.8%

5.9%5.9%

6.0%

5.6%

5.3%5.3%

5.4%

5.6%5.7%

5.5%

5.1%

4.5%4.6%4.7%4.7%

Georgia’s Revenue as a Share of Income at Historic LowRevenues as a Percentage of Income (FY 1989 – FY 2013)

RankingState and local own source revenue as a percentage of income

43rd

State and local business taxes as a percentage of GSP

41st

State tax revenue as a percentage of income

44th

State and local own source revenue per capita

47th

State tax revenue per capita 50th


Georgia Tax Rankings

• Sales and Income Tax outdated (1950’s economy and government).

• Sales and Income Tax need to be modernized for 21st century economy and government.

• Strong state economy and robust job growth depends on strategic investments in education, transportation, healthcare, and quality of life.FY 2012 Budget Overview |

www.gbpi.org

Tax Reform Going Forward – We Need Revenues!

FY 2012 Budget Overview |

Documents

Transcript of FY 2012 Budget Overview |