Georgia Senate approves scaled-back budget proposal for new fiscal year

(The Center Square) – The Georgia Senate approved a proposal Friday for how the state should spend $22 billion over the next 12 months.

The Senate plan includes more than $1 billion in cuts to education spending and reduces funding for mental health, drug rehab and public health programs to meet statewide recommendations for 11 percent spending reductions for the new fiscal year, which starts July 1.

The proposed cuts are a result of a revenue shortfall that stems from the response to COVID-19 pandemic. The state already was looking at a 6 percent rollback on spending before the coronavirus outbreak because of previous tax cuts.

"We have to remember this pandemic is causing us to do things that we don't like," Sen. Steve Henson, D-Stone Mountain, said. "But we are put into a terrible, terrible position because we made bad decisions."

The Senate plan calls for spending 54 percent of the budget on education, 13 percent on community health, 9 percent on public safety and the judicial system, 8 percent on human services, 7 percent on transportation, 5 percent on bonds and 1 percent on agriculture.

The Senate proposal includes a $1.05 billion reduction to the Quality Basic Education program, which supports school districts across the state. K-12 schools also would have to spend $25 million less on counselors and $15 million less on transportation.

The University System of Georgia and Technical College System of Georgia would lose a total of more than $300 million in state funds. Colleges and universities would have to lay off and furlough staff, eliminate programs and close classrooms to meet the recommendations.

The Department of Behavioral Health and Developmental Disabilities would have to reduce spending by $122 million, including $40 million less in services for adults with developmental disabilities and more than $52 million less for mental health and substance abuse programs.

The Department of Public Health would have to reduce spending by $27.4 million, which would require a $14 million cut in grants to county health departments. The Department of Community Health also would have to cut programs that bolster health care access in rural and underserved areas.

The Senate budget writers did find ways to offset some of the cuts and secure some state services.

They plan to use $205 million in federal Medicaid and PeachCare funds to keep the programs intact. They also propose using $46 million from Temporary Assistance for Needy Families residuals to support child welfare services.

Some lawmakers said Friday the state should consider filling revenue gaps by eliminating certain tax breaks, increasing the tobacco tax and expanding Medicaid to acquire more federal dollars.

"There's a shortfall of $420 million on what we are already paying for cigarette-related diseases in Georgia," Sen. Jennifer Jordan, D-Atlanta, said. "Raising the cigarette tax just to the national average would bring in over $600 million."

The spending plan passed the Senate, 30-15. Budget writers from the House and Senate will work together over the weekend to craft a concurrence budget. Once both chambers agree on the final version of the budget, the plan will be sent to Gov. Brian Kemp for approval.