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Deal wants to increase state's spending
Governor's budget plan doesnt account for tax proposals
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Gov. Nathan Deal's budget for the coming fiscal year plans for both revenue growth and new spending.

What it doesn't take into account is Deal's proposal for more than a hundred million dollars in lost revenue if lawmakers follow through with his proposal to eliminate a sales tax charged on energy use in manufacturing.

Deal is still "working with House and Senate leadership" on his tax proposals, said Debbie Dlugolenski, the director of the governor's office of planning and budget, and hasn't yet decided where the state would make up some $140 million in revenue if it does away with an energy sales tax charged to manufacturers.

Lawmakers will have to introduce a bill to abolish the tax for manufacturers. One has not yet surfaced, and its impacts on state spending have "not yet been incorporated" into budget calculations, Dlugolenski said.

Deal released his budget proposal Wednesday, calling for increased spending in the current year and next year.

A proposal for the next six months of state spending would add about $255 million, or a little more than 1 percent of the previously approved budget of nearly $18.3 billion.

In the fiscal year beginning in July, Deal is asking lawmakers to spend $19.2 billion.

Dlugolenski, who spent about an hour explaining the budget to reporters Wednesday, says the spending proposals are based on increased revenues from last year, which are about 4.5 percent higher than those the state collected in the fiscal year ending in June 2011.

A number of the proposed increases in expenditures are geared toward the state's education funding and new criminal justice and economic development initiatives.

Some $89 million is earmarked to fund higher enrollment in Georgia's public elementary, middle and high schools.

Deal's budget also includes the authorization of more than $3.5 million in bond projects to replace roofs and HVAC units at Lanier Technical College campuses in Oakwood and in Forsyth County.

Plans to keep open three pre-release facilities for prisoners that were scheduled to close in Appling, Pike and Turner counties and convert them into residential drug rehabilitation centers were also proposed. Combined, the facilities have about 600 beds, which will be made available to state prisoners serving time for drug-related problems.

The budget also includes funding for another Youth Detention Center in Atlanta, which Dlugolenski says will open this spring.

The governor also wants to add $10 million to the One Georgia program this year and next year. The money would provide funds to a loan and grant program to boost rural economic development projects with help on infrastructure or "deal closing" costs that might encourage industries to locate in Georgia. Funding for the program, totaling $43 million, was eliminated in 2009, and the program has been operating off a reserve fund since.

The governor is also shoring up the state's Medicaid funds, and Dlugolenski says that with Deal's proposal, the program is fully funded through July 2013.

"Right now, there are no more holes in the Medicaid budget; they're shored up and fully funded," said Dlugolenski.

Still, Deal's proposal also includes a number of cuts, including a proposed elimination of the State Personnel Administration.

The personnel administration currently serves as the central human resources agency for state employees, and according to the agency's website, it also serves as the "principal record-keeping agency for state employee data and the central means of monitoring state personnel practices."

Deal's proposal eliminates 154 filled positions across the state beginning in July.

About half of those are in the State Personnel Administration.

In total, the governor proposes to eliminate 891 jobs across the state in the fiscal year that begins in July. It lowers the number of authorized state jobs to 96,794.

The State Personnel Administration was one of 37 programs in the state that faced a "zero-based" budgeting process this year, Dlugolenski said.

The process, which analyzes the responsibilities of an agency as they are mandated by law, whether other agencies duplicate those duties and how much each should cost.

Dlugolenski said this year's process reduced the agencies' budgets by a total of $9 million, and said the governor's office plans to analyze more agencies using the process next year.

The governor is also seeking to make "one-stop shops' for certain state services. His budget includes a proposal to lump a number of state safety inspections, including those of the safety of elevators, carnival rides and chair lifts, from the Department of Labor to the state's Department of Agriculture.

While the nature of the inspections has little to nothing to do with agriculture, Dlugolenski said it creates "one front door" for safety inspections in Georgia. The Department of Agriculture was chosen, she said, because the department already performs a number of inspections.

"Hopefully, we'll realize some efficiencies there," Dlugolenski said.

 

Key bills still on table as Georgia legislature session winds down
Budget, medical marijuana among major issues
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ATLANTA — This year’s legislative session will come to an end Thursday, and the future of several key pieces of legislation remains uncertain under the Gold Dome.

Both chambers have already given the greenlight to send many hotly contested bills to the desk of Gov. Nathan Deal, including a measure allowing college students to carry concealed handguns on campus.

Looking ahead into the final two days of the session, here are some of the issues that could still see movement in the legislature:

STATE BUDGET

Lawmakers still must pass a final state budget for the financial year starting July 1.

Approving a budget is the only constitutionally required measure that must be passed before the close of the session, and negotiations are expected to include debate over a spending plan that would increase salaries for thousands of state employees and teachers and give state retirees a one-time boost.

Both chambers have voiced support for Deal’s recommendation to allocate $300 million to local school districts. These funds are intended to end furloughs and lengthen school years after cuts during the recession.

MEDICAL MARIJUANA

Rep. Allen Peake, a Macon Republican, said he will continue pushing for an expansion of people allowed medical marijuana in Georgia. The proposal hit a major roadblock when it recently failed to get a Senate committee hearing.

Peake’s bill would allow patients diagnosed with Tourette’s syndrome, autism and post-traumatic stress disorder, among other afflictions, to possess cannabis oil.

Peake said he still hopes the bill can get a Senate floor vote.

“You never want to give up on an issue like this until midnight on the last day of the legislative session,” he said.

RAPE KIT TESTING

A bill recently stalled in the Georgia Senate would require law enforcement officers and agencies to expedite the processing of rape kits for sexual assault victims.

The bill would require law enforcement officials to retrieve the findings of a forensic medical examination no later than 96 hours of being notified.

Rep. Scott Holcomb, an Atlanta Democrat, said supporters might try to attach the bill to another piece of legislation in order to get it passed. Republican Sen. Renee Unterman of Buford opposes the bill, saying the backlog on rape kits has been taken care of.

ENGLISH AS OFFICIAL LANGUAGE

A constitutional amendment setting English as the “official” language of Georgia has failed to make it out of House committee. Sponsoring Sen. Josh McKoon said the hope was to get a floor vote in the House after receiving 39 votes in the Senate. The legislation needs two-thirds support to pass the House.

TAX CUTS

A bill to set a flat state income tax rate of 5.4 percent requires House agreement to become law. The Senate has passed the measure. Critics argue that the adjustment in tax rates would only serve to help those in higher tax brackets. The decrease would lower the state’s maximum income tax rate down from 6 percent.

Deal and his staff have remained wary of any tax cut proposal, concerned about harming the state’s bond rating and ability to borrow money. Deal also has made it a priority to build up the state’s “rainy day” fund before his final term in office ends.