Press release [Jan. 23, 2004B]

1-1941-5095

Georgia House of Representatives Public Information Office
Room 505, Legislative Office Building
Atlanta, GA 30334 404-656-5082 1-800-282-5800

January 23, 2004

House and Senate Wrap Up FY 2005 Budget Hearings Agency heads brief concerned lawmakers on spending plans

Atlanta Lawmakers of the Joint House and Senate Appropriations Committee recently heard budgetary requests for Fiscal Year 2005 which begins July 1st during a week-long process that always begins after the Martin Luther King Holiday. It involves various agency and department
heads appearing before the Committee to explain to lawmakers their spending proposals and how that money will be used.

Although Georgia's economy has begun to shake off the effects of a nationwide recession, it typically takes several months for private sector gains to translate into increasing state revenues. Governor Perdue has ordered all state agency heads to trim an additional 5 percent from their FY 2005 operating budgets.

"More than $1 billion from state spending has been cut since 2000," said House Appropriations Vice-Chairman Tyrone Brooks (D-Atlanta). "We are at an unfortunate point where any reduction in expenditures will have significant, and sometimes painful effects."

The Governor has proposed to restrict Medicaid enrollment by decreasing the income ceiling which determines eligibility. This move, which is expected to affect some 27,000 recipients, has caused concern among many House members.

Georgia's highly successful PeachCare program would also see changes under the Governor's plan. The Department of Communinty Health is recommending charging PeachCare recipients a premium based on their level of income. The move is expected to save more than $10 million, but could eliminate as many as 5,000 children from PeachCare coverage if their parents can't afford the premiums. DCH Commissioner Tim Burgess said without premiums for PeachCare, the program would have to begin restricting future enrollment.

Georgia's school systems will also feel the budget crunch. State School Superintendent Kathy Cox briefed lawmakers on her department's proposal to cut nearly $500 million from education spending. Because the Department of Education spends less than 1 percent of its budget on administration, the bulk of the cuts will be felt by local school systems. More than $380 million would be removed from the per pupil payments received by schools. Many lawmakers are worried this could force local governments to raise property taxes.

# # # For further information please contact Rep. Brooks at 404-656-6372.