Budget in brief, fiscal year 1998

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BUDGET IN BRIEF
FISCAL YEAR 1998
(INCLUDES AMENDED F.Y. 1997 BUDGET HIGHLIGHTS)
ZELL MILLER, GOVERNOR
Director of the Budget
TIM BURGESS, DIRECTOR
Office of Planning and Budget

PUBLISHED BY OFFICE OF PLANNING AND BUDGET
SUITE 8066 270 WASHINGTON ST., S.W. ATLANTA, GA. 30334-8500
(404) 656-3820

CONTENTS
v Governor's Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5

SUMMARIES

Estimated State Revenues, Appropriations and Reserves

11

State Appropriations by Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 12

Total Appropriations by Fund Source Fiscal Year 1998

13

Total Appropriations by Fund Source Fiscal Year 1997 Amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 14

Total Expenditures by Object Class

15

Current Revenues

16

A History of Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 17

Current Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18

A History of Appropriations

19

F. Y. 1998 Lottery Appropriations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Lottery Reserves

21

Revenue Shortfall Reserve

22

Budget Highlights

23

Editor's Notes

32

LEGISLATIVE BRANCH

General Assembly

35

Department of Audits

35

JUDICIAL BRANCH

36

EXECUTIVE BRANCH

Department of Administrative Services

37

Department of Agriculture

39

Department of Banking and Finance

40

Department of Children and Youth Services

41

Department of Community Affairs

44

Department of Corrections

47

Department ofDefense

50

State Board of Education

51

State Forestry Commission

56

Georgia Bureau of Investigation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 57

CONTENTS

Georgia State Financing and Investment Commission

58

Office of the Governor

59

Department ofHuman Resources

61

Department of Industry, Trade and Tourism

67

Office of Commissioner of Insurance

69

Department of Labor

70

Department of Law

71

Department of Medical Assistance

. . . . . . . . . . . . . . . . . . . . . . . . 72

Merit System of Personnel Administration

74

Department of Natural Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Department of Public Safety

79

Public Service Commission

81

Regents, University System of Georgia

82

Retirement Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Employees' Retirement System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 88

Public School Employees' Retirement System

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Teachers' Retirement System

88

Department ofRevenue

89

Office of Secretary of State

. . . . . . . . . . . . . . . . . . 91

State Soil and Water Conservation Commission

92

Georgia Student Finance Commission

93

Department of Technical and Adult Education

95

Department of Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 98

Department of Veterans Service . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 101

State Board of Workers' Compensation

102

State of Georgia General Obligation Debt Sinking Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 103

Bond Payments by Year

109

INTRODUCTION
MY FELLOW CITIZENS:
The dreams and promises ofmy Administration are coming true. Appropriations approved at the 1997 legislative session take Georgia another step towards achieving our goals of excellence and superior quality.
We have increased spending for education in both the total and percentage of state dollars while implementing the largest tax reductions in state history.
We have implemented a program to prepare children at age four to be better students once they enter public schools, and we have launched the HOPE scholarships that are making a college education available to every Georgia student who is willing to work hard for good grades.
We have funded technology for all of our classrooms, and launched the largest school construction program in Georgia's history to provide decent classrooms for all students.
We have made steady progress toward the goal of raising public school teacher salaries sufficiently to allow us to compete nationally for the best teachers Georgia can get.
We have pioneered new initiatives to stimulate Georgia's economy, including more attention to business recruitment and marketing, and we have given the University System a major role in economic development research, creating the Georgia Research Alliance and the Traditional Industries Program to spearhead the effort.
We have drastically altered welfare and converted it into a program that places a premium on putting recipients to work and reducing teenage pregnancies, and we are moving towards community-based services as a more humane and less-costly alternative to institutional services.
We have lmmched two major programs (preservation 2000 and River Care 2000) to protect and preserve valuable natural resources for future generations to enjoy.
We have doubled prison capacity in the 1990s in an effort to meet citizen demands for dealing with a high rate of crime, and we are expanding children and youth facilities to deal with a surging crime rate involving juveniles.
These are the headlines. The details are revealed through the prism of the appropriation
5

INTRODUCTION
acts that were passed to increase spending for fiscal year (F.Y.) 1997 and for F.Y. 1998 starting on July 1, 1997 and ending on June 30, 1998.
Implementation ofthe Georgia Lottery has helped to make our achievements possible, but large contributors have also been a strong economy and efficiencies in the way your state government operates.
For F.Y. 1998, lottery funding will total $510 million. This total pushes lottery spending to $2.4 billion since it was started in 1994. One hundred percent of these funds have gone into education, and Georgia is the only state for which this is true.
When I first proposed the lottery, I made two commitments: Every dollar of lottery spending would go to education, and not one dollar would be used to supplant state general funds. Both promises have been kept.
During the seven new annual budgets that I have presented to the General Assembly, state spending for education has increased from 50.9 percent of total state dollars budgeted (in the original F.Y. 1991 spending program in effect when I took office) to 55.8 percent in F.Y. 1998.
But not all of the increased spending for education came from lottery funds. Even if the lottery had never been implemented, state expenditures dedicated to education would still have increased to 51.5 percent, a growth of more than half a percentage point, or the equivalent of $72 million a year. This is an accomplishment of which I am extremely proud.
The benchmark achievements in education with lottery funds are the voluntary prekindergarten program for four-year-olds and the HOPE scholarships.
Pre-kindergarten has been successful beyond my hopes. Funding in F.Y. 1998 is being increased by $26.1 million over original appropriations. This funding has already resulted in certification for 60,546 four-year-olds to enter the program during the 1997-98 school year at 1,514 sites that embrace all but two of Georgia's counties. The number represents an increase of about 3,500 students over the approximately 57,000 students enrolled during the 1996-97 school year.
Since pre-kindergarten for four-year-olds was launched in 1993, more than 128,000 children have participated in the structured school environment designed to provide high quality pre-school learning and experience. The projected enrollment for F.Y. 1998 would push cumulative enrollment beyond 188,000 four-year-olds.
Georgia's program is the most comprehensive in the nation and reaches a higher proportion of four-year-olds than in any other state.
HOPE (Helping Outstanding Pupils Educationally) has become known as "Georgia's G.!. Bill" for students because it has provided scholarships to attend college for 238,500 students since it was implemented in F.Y. 1994 through lottery funding. Through F.Y. 1998, we will have appropriated over $418 million for HOPE scholarships. An appropriation of$6,180,275 in F.Y. 1998 expands the HOPE program by giving students enrolled in public and private colleges another chance to earn a HOPE Scholarship by having a "B" grade point average after 45 quarter hours.
The popularity of the HOPE program is proven by the fact that President Clinton has announced a national program based on Georgia's efforts.
In addition to pre-kindergarten and HOPE scholarships, lottery funds can be spent on
6

INTRODUCTION
teacher training, technology and construction. In F.Y. 1998 we are spending $101,233,525 on technology and $21,148,000 for construction. One of the central thrusts of new lottery spending on technology is $36,841,341 to provide classroom computers for all public high schools. An expenditure of $6,454,422 will connect all schools and public libraries to the Internet.
The six percent pay raise for teachers is the third straight annual increase of that size given to teachers. Current projections by the Southern Regional Education Board are that Georgia will surpass the national average in teacher salaries in F.Y. 2000 if the pace of raises by Georgia and other states remains on the same pattern.
Other than education improvements, funding for economic development initiatives has been my highest priority. The F.Y. 1998 budget includes $850,000 to create on a permanent operating basis the "Georgia Legacy" business recruitment and marketing program that was so successful before and during the 1996 Olympic Games in Georgia. Also, the State Board of Regents received $30 million in new funding (1998 and amended 1997) for the Georgia Research Alliance, a public-private nonprofit organization created early in my Administration to sparkplug Georgia's initiatives in technological development.
Two departments of state government--Human Resources and Medical Assistance--are responsible for assisting people with health and social needs. But help to the needy must come with effectiveness and economy as well as with compassion.
One of the historic actions of my Administration was to develop and see passed by the 1997 General Assembly a new law that abolished the old welfare entitlement program and created in its place a new program known as Temporary Assistance for Needy Families (TANF). The focus ofTANF is (1) to help welfare recipients to become self-sufficient by providing job training and helping them to find a job, and (2) to prevent teenage pregnancies, a major cause of welfare need. The cost of teenage pregnancy now exceeds half a billion dollars a year in Medicaid, welfare benefits and food stamps. We must tackle welfare dependency at its root source.
The changes in welfare direction come at a time when caseloads are already decreasing. The state in F.Y. 1998 will save $24,443,190 because ofa 12 percent reduction in the number of public assistance recipient cases (14,281) due to Work First welfare reform efforts initiated earlier in my Administration, and a strong economy. By helping welfare recipients to get jobs and by reducing teenage pregnancies, we hope to see even more significant drops in welfare caseloads and costs.
The continuing transition to community-based services also has the potential to produce large savings in tax dollars. The 1997 General Assembly approved my recommendation to close Brook Run, a state-operated facility for mentally retarded Georgians. We can meet the needs of these Georgians with community-based services at far less cost than in an institution. For instance, the $15 million cost of Brook Run provided services to 326 patients. We can serve more than 500 mentally retarded Georgians in community-based services with the same amount of money.
Protecting our environment ranks high among my priorities. Two programs--Preservation 2000 and River Care 2000--are the linchpins of my effort. The newest program, River Care 2000, was launched in September 1995 and has now been funded at a level of $23.5 million in state
7

INTRODUCTION
bonds, including $10 million in F.Y. 1998. Federal matching funds of$1.1 million increased total funding to $24.6 million. Through this program, the state will preserve riverfront land that will become wildlife management areas, parks, natural and historic landmarks and greenways.
Preservation 2000 was launched early in my Administration with a goal of preserving 100,000 acres of natural and environmentally sensitive land for future generations to enjoy. That goal was reached in May of 1996 at a total cost of$120.2 million, including $61.5 million in state bonds, $3.3 million in other state and federal funds, $1.4 million in private gifts of cash, and the donation of land valued at $54 million. The type of land purchased and now under state management includes riverbottom hardwood forests, Carolina bays and other naturally occurring water features.
One of the hallmarks of my Administration has been a "get tough" stance on crime. Passing tougher laws that require prison sentences makes no sense if the prison capacity isn't expanded. We have taken actions as necessary to make sure our prison capacity keeps up with demand. We appropriated $20.9 million between the 1997 amended and 1998 budgets to open 2,028 new beds over an 18-month period. We also authorized $6 million to begin the process of receiving bids from the private sector to construct and operate three new prisons with a capacity of 500 beds each. This expansion will increase capacity from 24,017 beds when I took office in 1991 to a level of 41,165 when the new prisons are in operation, a 71 percent increase.
While the adult prison population is climbing, the number of children and youth sentenced to state institutions is also increasing at an average rate of eight percent a year. In F.Y. 1998 we are spending $5.1 million to open 336 new beds; $3.3 million to annualize 416 beds added in 1997; $3.2 million to convert the Wrightsville Youth Development campus from an adult to a juvenile facility in 1997; $2.2 million to operate the Metro Regional Detention Center as a private, 200-bed facility; $14.2 million in bonds to construct a new 150-bed YDC in Sumter County, and $1.6 million to construct a 25-bed housing unit at the Macon YDC.
The surge of juvenile crime started in 1995, and we moved immediately to expand state training center facilities to deal with the increase. When all of the beds that have been approved for construction are opened during F.Y. 1999, state capacity in YDCs will have increased from 1,353 beds to 3,159 beds over a five-year period, a 133 percent growth rate.
While the primary emphasis late in my Administration has been to complete the programs launched during my term, one exception is the Department of Revenue. Studies have shown that the department is far behind in efficiency and technology and must be modernized for Georgia's future development. We are launching a five-year strategy called "Blueprint for Modernization" and funded at a level of$19,357,500 during the 1997 session, with the funds split between two fiscal years. This investment will more than pay for itself over time.
While Georgia's economy has been strong enough to fund these and many other new initiatives, I am well aware that government spending is not open-ended. For seven years I have worked hard to cut costs, reduce the tax burden on Georgia citizens, make state government more efficient and strengthen the state's financial balance sheets. My vigilance in F.Y. 1998 was stronger than ever.
8

INTRODUCTION
As proof, I vetoed a record 104 separate expenditures totaling $37.3 million from F.Y. 1998 spending. In addition, I vetoed eight legislative bills that involved the loss of revenues or triggered future expenditures that together would involve $10.9 million.
I specifically vetoed by line item $2.1 million in local assistance grants because the General Assembly removed that same amount from higher education to fund those projects. This is the wrong priority. We have made our University System one of America's fmest, and we have come too far to turn back now.
To further reduce the cost of government to the taxpayers of Georgia, I continued the program of Budget Redirection and Reduction into F.Y. 1998. As a result, agencies redirected $292,640,453 from their existing budgets to help fund higher priorities. Agencies were allowed to retain $216,038,096 of these funds to implement their own highest priorities. This made it possible to use most of the new revenue anticipated to be collected during the next fiscal year to meet our commitments in education.
Redirection is not a simple budget cut. Rather, it is a process of more efficiently and effectively using existing funds to provide government services.
Privatization is also continuing. The F.Y. 1998 Appropriations Act authorized privatization oftwo golf courses, three prisons, a diversion center, a detention center, and highway rest areas statewide. Additional savings were recorded from an earlier action to privatize the Georgia War Veterans Hospital in Milledgeville.
Budgeting has become more than one-year exercises in decision-making. The conflict of citizen demands for expanded services at the same time that taxpayers are complaining about high taxes has catalyzed major changes in government. The options open when I started working on budget recommendations last September provide a clear view of this fact. Due to an extraordinary set of circumstances that will not likely re-occur for a long time, the state ended F.Y. 1996 with surplus and reserve funds totaling $581,161,191. This is one of the largest fund availabilities at the end of a fiscal year in Georgia's history. Three factors accounted for this high total--state revenue growth from taxes and fees that increased by 8.5 percent instead of the 7.0 percent on which our financial plan was based; lottery surplus that exceeded estimates by $134 million, and audited agency lapses that totaled more than $126 million.
Some ofthe funds were earmarked for expenditure in the F.Y. 1997 amended budget, but spending this vast sum would have gone against our very rigid concept that an amended budget should be restricted to mandatory expenditures. As a result, I took two actions that would ease budgets for the next two years.
First, we set aside $202 million to pre-fund general obligation debt payments due in F.Y. 1998. Using surplus funds to pre-fund debt service requirements is a wise and prudent use of resources since it does not start new program expenditures in an amended budget. It also provides additional leverage to make educational improvements during F.Y. 1998.
Second, I took an action to ensure that the final stage of eliminating the state's four cent sales tax from groceries in October of 1998 will not strain the budget for F.Y. 1999. I accomplished this by lowering the 1997 revenue estimate and by offsetting this change with surplus
9

INTRODUCTION
to make $129 million available for this purpose. State revenues will continue to grow for F.Y. 1998 at a rate of 4.6 percent. This is after
we have set aside $152 million to account for the continued phase-out of the sales tax on groceries by one cent in October 1997 and after we have allowed for all of our reserves to be full on June 30, 1998. Leaving this state to the next governor with all of our reserves full is a major commitment of mine and one that I am determined to fulfill.
Georgia is more and more becoming a leader among states. We have been the fastest growing state east of the Rocky Mountains for the last three years, and we are quickly closing many gaps that once separated us from the front-running states. There is much more to do before our job is finished, but I have pledged my Administration to go as far as we can. I will be pursuing that goal until my very last day in office.

10

ESTIMATED STATE REVENUES, APPROPRIATIONS AND RESERVES

STATE FUND SOURCES
SURPLUS State Funds Surplus Audited Lapses Lottery Surplus Audited Agencies' Lapse - Lottery Additional Surplus as of3-25-97
TOTAL SURPLUS
RESERVES Midyear Adjustment Reserve
REVENUES Revenues Projected to be Collected from Taxes and Fees Inter-Year Shift of Revenue (See Governor's Introduction) Governor's Revenue Estimate for Appropriations Lottery Indigent Care Trust Funds Insurance Anti-Fraud Levies
TOTAL REVENUES
TOTALS

F.Y.1997
216,436,925 143,549,247 124,142,354
9,728,321 493,856,847
104,461,844
10,629,000,000 (129,000,000)
10,500,000,000 546,198,773 148,828,880
11,195,027,653 11,793,346,344

F.Y.1998
4,000,000 4,000,000
11,118,000,000 510,000,000 148,828,880 625,000
11,777,453,880 11,781,453,880

STATE FUND USES
Appropriations Veto Surplus
TOTALS

11,793,346,344 11,793,346,344

11,771,743,880 9,710,000
11,781,453,880

The 1997 General Assembly passed an Appropriations Act totaling $11,781,453,880 for F.Y. 1998. However, Governor Miller vetoed $9,710,000, resulting in a budget of $11,771,743,880 for F.Y. 1998 expenditures. The vetoes are explained elsewhere in this publication.

11

STATE APPROPRIATIONS BY AGENCY

LEGISLATIVE BRANCH General Assembly Department of Audits
JUDICIAL BRANCH
EXECUTIVE BRANCH Administrative Services, Department of Agriculture, Department of Banking and Finance, Department of Children and Youth Services, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, State Board of Forestry Commission, State Georgia Bureau of Investigation Governor, Office ofthe Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Office of Commissioner of Labor, Department of Law, Department of Medical Assistance, Department of Natural Resources, Department of Public Safety, Department of Public School Employees' Retirement System Public Service Commission Regents, University System of Georgia Revenue, Department of Secretary of State, Office of Soil and Water Conservation Commission, State Student Finance Commission, Georgia Teachers' Retirement System Technical and Adult Education, Department of Transportation, Department of Veterans Service, Department of Workers' Compensation, State Board of General Obligation Debt Sinking Fund Olympic Safety and Security
TOTAL STATE APPROPRIATIONS

ORIGINAL FISCAL YEAR
1997

AMENDED FISCAL YEAR
1997

FISCAL YEAR 1998

26,278,571 19,706,494
85,346,430

26,278,571 20,625,494
83,818,558

27,168,900 20,156,774
91,276,910

26,133,157 42,020,166
9,318,265 148,978,886 40,635,112 707,081,420
4,230,851 4,294,921,901
35,443,370 46,619,323 31,157,257 1,228,834,126 20,841,481 15,205,413 19,628,869 12,521,718 1,311,742,066 97,990,864 117,313,223 14,212,500
8,487,316 1,391,745,182
95,717,904 30,746,948
2,122,473 192,146,016
4,130,000 258,033,726 542,896,193
21,567,780 10,702,701 414,482,451 12,245,000
11,341,185,153

25,526,890 41,694,271
9,318,265 149,407,187 47,585,552 718,437,757
4,230,851 4,459,982,856
35,585,086 46,972,957 33,039,333 1,205,625,505 20,836,745 15,149,383 19,628,869 12,521,718 1,306,932,224 104,967,909 117,294,352 14,212,500
8,247,316 1,420,427,770
110,143,485 30,876,731 2,122,473 193,851,016 4,130,000 296,714,080 542,478,959 20,268,189 10,702,701 621,465,791 12,245,000
11,793,346,344

25,148,629 41,776,853
9,523,070 167,942,031 25,995,075 747,695,345
4,363,044 4,647,067,118
34,539,659 48,215,166 29,930,439 1,220,531,233 20,076,479 15,799,353 20,500,998 13,124,252 1,324,271,890 91,294,956 115,353,569 15,110,000
8,482,241 1,465,335,169
96,358,751 31,087,511
2,132,890 208,845,430
4,070,000 231,621,569 542,507,217
19,795,288 10,918,457 393,727,614
.. 11,771,743,880

12

TOTAL APPROPRIATIONS BY FUND SOURCE FISCAL YEAR 1998

DEPARTMENTS/AGENCIES

TOTAL APPROPRIATION

FEDERAL FUNDS

OTHER FUNDS

INDIRECT DOAS FUNDS

LOTTERY PROCEEDS

STATE FUNDS

Legislative Branch Department of Audits Judicial Branch Department of Administrative Services Department of Agriculture Department of Banking and Finance Department of Children & Youth Services Department of Community Affairs Department of Corrections Department of Defense Department of Education Employees' Retirement System Forestry Commission Georgia Bureau ofInvestigation Office of the Governor Department of Human Resources Department ofIndustry, Trade & Tourism Department of Insurance Department of Labor Department of Law Department of Medical Assistance Merit System of Personnel Administration Department of Natural Resources Department of Public Safety Public School Employees' Retirement Sys. Public Service Commission Regents, University System of Georgia Department of Revenue Office of Secretary of State Soil and Water Conservation Commission Georgia Student Finance Commission Teachers' Retirement System Department of Technical & Adult Ed. Department of Transportation Department of Veterans Service State Board of Workers' Compensation G.O. Debt Sinking Fund Olympic Safety and Security

27,168,900 20,156,774 93,183,496 164,789,649 49,508,646
9,523,070 172,924,813 58,520,527 767,788,060
17,617,939 5,142,447,933
4,382,732 39,489,852 48,215,166 37,344,826 2,384,380,940 20,302,479 17,206,008 152,143,392 14,733,081 3,779,764,130 1,098,162,845 133,165,383 119,228,086 15,110,000 10,731,875 2,698,050,305 97,699,116 32,132,511 2,495,590 208,845,430 11,082,683 292,599,277 1,165,727,067 28,044,624 11,108,457 393,727,614

3,477,835
30,917,632 1,500,000
13,254,895 495,380,815
822,000
1,163,849,707 1,356,295
129,846,862 2,455,492,240
33,074,899 3,874,517 2,249,634
362,700
21,668,472 605,268,508
8,249,336

1,906,586 139,641,020
4,253,958
4,982,782 1,607,820 18,592,715
4,382,732 4,128,193
7,414,387
226,000 50,360
1,795,532 1,608,829
1,098,162,845 8,795,528
1,232,715,136 1,340,365 1,045,000
7,012,683 39,309,236 17,951,342
190,000

450,000 340,000 293,325,951
6,032,000

200,000 1,650,000

3,583,000 3,845,000

33,054,422

174,678,127 5,441,500

27,168,900 20,156,774 91,276,910 25,148,629 41,776,853 9,523,070 167,942,031 25,995,075 747,245,345 4,363,044 4,353,401,167
34,539,659 48,215,166 29,930,439 1,214,499,233 20,076,479 15,799,353 20,500,998 13,124,252 1,324,271,890
91,094,956 113,703,569
15,110,000 8,482,241 1,428,697,747 92,513,751 31,087,511 2,132,890 34,167,303 4,070,000 226,180,069 542,507,217 19,795,288 10,918,457 393,727,614

TOTAL FUND SOURCES

19,339,503,276 4,970,646,347 2,597,113,049 16,100,000 506,500,000 11,249,143,880

13

TOTAL APPROPRIATIONS BY FUND SOURCE FISCAL YEAR 1997 AMENDED

DEPARTMENTS/AGENCIES

TOTAL APPROPRIATION

FEDERAL FUNDS

OTHER FUNDS

INDIRECT DOAS FUNDS

LOTTERY PROCEEDS

STATE FUNDS

Legislative Branch Department of Audits Judicial Branch Department of Administrative Services Department of Agriculture Department of Banking and Finance Department of Children & Youth Services Department of Community Affairs Department of Corrections Department of Defense Department of Education Employees' Retirement System Forestry Commission Georgia Bureau of Investigation Office of the Governor Department of Human Resources Department ofIndustry, Trade & Tourism Department of Insurance Department of Labor Department of Law Department of Medical Assistance Merit System of Personnel Administration Department of Natural Resources Department of Public Safety Public School Employees' Retirement Sys. Public Service Commission Regents, University System of Georgia Department of Revenue Office of Secretary of State Soil and Water Conservation Commission Georgia Student Finance Commission Teachers' Retirement System Department of Technical & Adult Ed. Department of Transportation Department of Veterans Service State Board of Workers' Compensation G.O. Debt S~nking Fund Olympic Safety and Security

26,278,571 20,625,494 85,452,799 171,359,787 49,425,929
9,318,265 155,163,862 94,029,879 738,575,634
15,881,777 4,955,671,119
4,514,051 40,491,781 46,972,957 40,314,381 2,342,147,248 21,092,745 16,456,038 155,808,877 14,130,547 3,738,317,597 1,099,766,134 146,040,148 121,168,869 14,212,500 10,296,019 2,577,973,708 111,483,850 31,976,596 2,657,810 193,851,016 11,356,706 357,691,788 1,163,926,135 28,308,789 10,892,701 621,465,791 12,245,000

3,477,835
34,498,744 1,500,000 11,650,926
495,688,263 822,000
1,136,521,743 1,256,295
134,347,690 2,338,379,160
32,282,899 3,874,517 2,048,703
535,337
21,668,472 604,120,834
8,040,600

1,634,241 145,832,897
4,253,823
5,756,675 11,945,583 18,637,877
4,514,051 4,084,695
7,275,048
256,000 50,360
1,832,318 1,608,829 93,006,213 1,099,766,134 8,789,340
1,157,545,938 1,340,365 1,099,865
7,226,706 39,309,236 17,326,342
190,000

450,000 340,000
6,032,000
200,000 1,650,000 3,583,000 3,845,000

TOTAL FUND SOURCES

19,257,342,898 4,830,714,018 2,633,282,536 16,100,000

348,481,780

26,278,571 20,625,494 83,818,558 25,526,890 41,694,271
9,318,265 149,407,187 47,585,552 717,987,757
4,230,851 4,111,161,076

35,585,086 46,972,957 33,039,333 1,199,593,505 20,836,745 15,149,383 19,628,869 12,521,718 1,306,932,224

78,504,000
161,118,161 91,965,507

104,767,909 115,644,352
14,212,500 8,247,316 1,338,340,770 106,298,485 30,876,731 2,122,473 32,732,855 4,130,000 204,748,573 542,478,959 20,268,189 10,762,701 621,465,791 12,245,000

680,069,448 11,097,176,896

14

TOTAL EXPENDITURES BY OBJECT CLASS

HB34 AMENDED FISCAL YEAR
1997

HB204 FISCAL YEAR
1998

CHANGE AMOUNT PERCENT

I. LEGISLATIVE BRANCH General Assembly Department ofAudits

26,278,571 20,625,494

27,168,900 20,156,774

890,329 (468,720)

3.4% -2.3%

II. JUDICIAL BRANCH

85,452,799

93,183,496

7,730,697

9.0%

III. EXECUTIVE BRANCH: (Does Not Include Authorities)

Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Other Operating Expenses

3,998,663,722 452,761,271 19,936,899 18,851,385 24,190,141 124,756,851 53,979,095 40,965,807 403,860,319 646,664,280

4,184,366,935 451,051,674 20,386,107 10,484,821 21,005,666 134,888,634 52,827,988 39,142,990 466,234,832 691,452,321

185,703,213 (1,709,597) 449,208 (8,366,564) (3,184,475) 10,131,783 (1,151,107) (1,822,817) 62,374,513 44,788,041

4.6% -0.4% 2.3% -44.4% -13.2% 8.1% -2.1% -4.4% 15.4% 6.9%

Sub-Total

5,784,629,770

6,071,841,968

287,212,198

5.0%

Capital Outlay Authority Lease Rentals General Obligation Bonds Grants Benefits Other Lottery Proceeds for Education Olympic Safety and Security

790,807,137 645,915
621,465,791 5,202,566,442 4,280,776,129 1,751,780,402
680,069,448 12,245,000

788,460,420 98,600
393,727,614 5,415,350,364 4,263,581,653 1,759,433,487
506,500,000

(2,346,717) (547,315)
(227,738,177) 212,783,922 (17,194,476)
7,653,085 (173,569,448)
(12,245,000)

-0.3% -84.7% -36.6%
4.1% -0.4% 0.4% -255%

Total Part III

19,124,986,034 19,198,994,106

74,008,072

0.4%

TOTAL PARTS I,ll AND III less: Federal and Other Funds
DOAS Indirect Funds

19,257,342,898 7,463,996,554
16,100,000

19,339,503,276 7,567,759,396
16,100,000

82,160,378 103,762,842

0.4% 1.4% 0.0%

TOTAL STATE GENERAL FUNDS 11,777,246,344 11,755,643,880 15

(21,602,464)

-0.2%

In Percentages

CURRENT REVENUES
Income Tax 45.4%

Indigent Care Trust 1.3%
Fees & Sales 3.2%
Alcohol & Tobacco
1.8%

SalesTax 34.8%

Other Taxes 2.6%
Insurance Premium Tax
1.8% Lottery Proceeds
4.3%

In Total Dollars
Income Taxes Sales Tax Motor Fuel Tax Alcohol and Tobacco Tax Insurance Premium Tax Other Taxes Fees and Sales State Lottery Indigent Care Trust Funds Insurance Anti-Fraud Levies Total Collections Inter-year Shift of Revenue Funds for Appropriations

F.Y.1997 $5,054,000,000 $3,942,000,000
$557,000,000 $207,000,000 $196,000,000 $301,000,000 $372,000,000 $546,198,773 $148,828,880
$11,324,027,653 ($129,000,000)
$11,195,027,653

F.Y.1998 $5,344,000,000 $4,102,000,000
$567,000,000 $208,000,000 $202,000,000 $312,000,000 $383,000,000 $510,000,000 $148,828,880
$625,000 $11,777,453,880
$11,777,453,880

16

A HISTORY OF REVENUES
(Millions)

Fiscal Years

Taxes and Fees

Percent Increases

Indigent Care Trust Funds

Lottery Proceeds

1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998

$ 493.7

551.5

11.7

617.3

11.9

672.4

8.9

739.9

10.0

833.1

12.6

951.5

14.2

1,001.9

5.3

1,212.8

21.1

1,375.1

13.4

1,544.0

12.3

1,576.8

2.1

1,693.1

7.4

1,925.8

13.7

2,218.0

15.2

2,507.5

13.1

2,810.0

12.1

3,109.6

10.7

3,378.0

8.6

3,572.4

5.8

4,010.6

12.3

4,607.8

14.9

5,020.7

9.0

5,421.3

8.0

5,890.9

8.7

6,467.7

9.8

7,196.4

11.3

7,258.2

0.9

7,356.2

1.4

8,249.9

12.1

8,906.5

8.0

9,625.7

8.1

10,446.2

8.5

10,629.0 (Est.)

1.8

11,118.0 (Est.)

4.6

$
37.0 96.4 96.5 140.4 163.0 148.8 148.8 148.8

$
362.4 514.9 558.5 546.2 510.0

* F.Y. 1998 total revenues also include $625,000 in insurance anti-fraud levies.

Total Revenues
$ 493.7 551.5 617.3 672.4 739.9 833.1 001.9 951.5
1,212.8 1,375.1 1,544.0 1,576.8 1,693.1 1,925.8 2,218.0 2,507.5 2,810.0 3,109.6 3,378.0 3,572.4 4,010.6 4,607.8 5,020.7 5,421.3 5,890.9 6,467.7 7,196.4 7,295.2 7,452.6 8,346.4 9,409.4 10,303.6 11,166.8 11,324.0 11,777.5*

17

CURRENT APPROPRIATIONS
In Percentages
Education Total 55.8%

Other Education
3.9%
Human Resources 10.4%

All Others
11.6%

Corrections 6.4%

Transportation 4.6%

In Total Dollars

F.Y.1997

State Board of Education State Board of Regents Other Education
(Technical and Adult Education, Student Finance, Retirement agencies)

$4,459,982,856 $1,420,427,770
$508,907,596

Total Education

$6,389,318,222

Human Resources Medicaid

$1,205,625,505 $1,306,932,224

Corrections Transportation All Other Departments

$718,437,757 $542,478,959 $1,630,553,677

Total State Budget

$11,793,346,344

F.Y.1998 $4,647,067,118 $1,465,335,169
$459,646,999
$6,572,049,286 $1,220,531,233 $1,324,271,890
$747,695,345 $542,507,217 $1,364,688,909
$11,771,743,880

18

A HISTORY OF APPROPRIATIONS

Fiscal 1964 Fiscal 1965 Fiscal 1966 Fiscal 1967 Fiscal 1968 Fiscal 1969 Fiscal 1970 Fiscal 1971 Fiscal 1972 Fiscal 1973 Fiscal 1974 Fiscal 1975 Fiscal 1976 Fiscal 1977 Fiscal 1978 Fiscal 1979 Fiscal 1980 Fiscal 1981 Fiscal 1982 Fiscal 1983 Fiscal 1984 Fiscal 1985 Fiscal 1986 Fiscal 1987 Fiscal 1988 Fiscal 1989 Fiscal 1990 Fiscal 1991 Fiscal 1992 Fiscal 1993 Fiscal 1994 Fiscal 1995 Fiscal 1996 Fiscal 1997 Fiscal 1998

Total Appropriation
(millions)
$ 473.5 526.1 593.4 674.8 782.7 865.7 941.9
1,083.8 1,175.5 1,358.7 1,674.2 1,700.2 1,790.0 1,890.1 2,262.8 2,715.9 2,851.1 3,217.1 3,533.0 3,685.5 3,960.8 4,364.8 5,225.9 5,412.8 5,946.1 6,405.1 7,646.0 7,617.7 7,552.9 8,252.2 . 9,192.0 10,236.1 10,980.4 11,793.3 11,771.7

Percent Increase
11.1 12.8 13.7 16.0 10.6 8.8 15.1 8.5 15.6 23.2
1.6 5.3 5.6 19.7 20.0 5.0 12.8 9.8 4.3 7.5 10.2 19.7 3.6 9.9 7.7 19.4 (0.4) (0.9) 9.3 11.4 11.4 7.3 7.4 (0.2)

19

F.Y. 1998 LOTTERY APPROPRIATIONS

$176,339,127 Scholarships
35%

$211,279,348 Pre-
Kindergarten 42%

$21,148,000 Capital
Expenditure 4%

$97,733,525 Technology &
Training 19%

[JI Scholarships Pre-Kindergarten
o Technology & Training
Capital Expenditure

20

LOTTERY RESERVES

"

Georgia's lottery laws require the establishment of two reserves that are funded as a percentage oflottery

collections to avoid disruption in programs should collections fall short of annual appropriations.

The Shortfall Reserve Subaccount was included in the original law and required that an amount be set aside
each year equal to 1 percent of the total lottery proceeds deposited into the Lottery for Education Account for the preceding year. If net funds in the account are not sufficient to meet appropriations, funds shall be drawn from the reserve to make up the shortage.

Funds have been set aside for the reserve each year and totaled $50,306,302 on June 30, 1996.

The lottery law was amended during the 1994 legislative session to require that a Scholarship Shortfall Reserve Subaccount also be maintained within the Lottery for Education Account.

The scholarship reserve law requires that the subaccount be fully established over five years at a rate of 10 percent a year until the reserve equals 50 percent of the amount of scholarship proceeds disbursed during the preceding year.

Lottery surplus available at the end ofF.Y. 1995 was sufficient to meet immediate needs in the amended F.Y. 1996 budget and still leave enough funds over to fully fund the scholarship reserve in its first year. Governor Miller wrote the State Auditor a letter requesting that the Scholarship Shortfall Reserve Subaccount be fully funded from the 1995 surplus, and the Auditor complied with the Governor's request.

The two lottery reserves as of June 30, 1996 total as follows: Shortfall Reserve Subaccount Scholarship Shortfall Reserve Subaccount TOTAL LOTTERY RESERVES

$ 50,306,302 77,718,586
$128,024,888

21

REVENUE SHORTFALL RESERVE

The 1976 Session ofthe General Assembly created the Revenue Shortfall Reserve in ieu ofthe Working Reserve. This reserve serves as a savings account or "rainy day" fund for the state should revenue collections decline unexpectedly or uncontrollably. The reserve is created and maintained by allocating any surplus revenue collections, excluding lottery funds and the Indigent Care Trust Fund. Additional surplus over three percent is available for appropriation.

The status of the reserve for the last 12 fiscal years follows:

F.Y.1996

$ 313,385,534

F.Y.1995

288,769,754

F.Y.1994

267,195,474

F.Y.1993 F.Y.1992

122,640,698 *
-0-

F.Y. 1991

-0-

F.Y.1990

-0-

F.Y.1989

194,030,593

F.Y.1988

176,727,306

F.Y.1987

162,639,563

F.Y.1986

150,621,753

F.Y. 1985

138,234,402

* Partially filled

22

BUDGET HIGHLIGHTS
Total Spending and Revenues
FISCAL YEAR 1998
The state's budget inF.Y. 1998 will total $11,771,743,880, a decrease of $21,602,464 over the amended F.Y. 1997 budget. The expenditures, however, will increase $430,558,727, or 3.8 percent, over the original budget for F. Y. 1997. This rare occurrence results from a larger-than-usual increase in the amended budget for F. Y. 1997, as explained below.
TheF.Y. 1998 budget will be funded from new revenues totaling $11,777,453,880 and $4 million in surplus identified prior to [mal passage of the Appropriations Act. New revenues include the following components:
--$11,118,000,000 from taxes and fees that comprise the Governor's revenue estimate, an increase of 4.6 percent.
--$510 million in state lottery collections. --$148,828,880 in Indigent Care Trust Funds. --$625,000 in insurance anti-fraud levies.
AMENDED FISCAL YEAR 1997
The state's budget for F.Y. 1997 was amended by $452,161,191, an increase of 4.0 percent, to a total of $11,793,346,344.
In addition, the Governor's revenue estimate was reduced by $129 million, from $10,629,000,000 to $10,500,000,000, even though the state still expects to collect $10,629,000,000. The $129 million will be shifted forward to fund the fourth and last cent of the state's sales tax removal from food in October 1998. With a large surplus available now, the action was taken to avoid putting a strain on the state's budget during F.Y. 1999.
Funds for the above adjustments came from the following sources: --$493,856,847 in surplus funds, including $359,986,172 from general funds and $133,870,675 from lottery funds. --$104,461 ,844 in the Midyear Adjustment Reserve.
STATE RESERVES FULL
$313,385,534 in the Revenue Shortfall Reserve, the state's "rainy day" fund.
$128,024,888 in lottery reserves, including $50,306,302 in the Shortfall Reserve Subaccount and $77,718,586 in the Scholarship Shortfall Reserve Subaccount.
23

Salary Adjustments

BUDGET HIGHLIGHTS

TEACHERS
6 percent pay raises for public school teachers, effective September 1, 1997, and 4% raises for public school bus drivers and lunchroom workers, effective July 1, 1997.

A 6 percent fimding level to provide merit increases for University System academic personnel on September 1, 1997 and for University System non-academic personnel on July 1, 1997.

6 percent pay raises for teachers with the Department of Technical and Adult Education, effective September 1, 1997. Non-teachers employed by the department will receive the same raises as state employees.

STATE EMPLOYEES
Pay raises ranging from 0 percent to 7 percent for employees of the Executive Branch in conformance with the GeorgiaGain pay for performance system. The range includes raises of 0%, 4%, 5.5% and 7%, effective October 1, 1997, based on performance ratings.

4 percent for Judicial and Legislative Branch employees who receive at least "satisfactory" or "meets expectations" on annual performance appraisals.

4 percent for state officials whose salary is set by law. $55,353 to provide salary adjustments to members of the General Assembly.

The following salary adjustments were approved for certain classes of state employees in addition to any pay for performance adjustments, effective October 1, 1997:
--5 percent conditional increases for incumbents in the correctional officer job class series working in high mission (Security level V and VI) institutions.
--5 percent supplemental salary adjustment for Department of Corrections food service and maintenance workers directly supervising inmates.
--Supplemental adjustments for administrative law judges in the Office of State Administrative Hearings in order to conform with minimum salary levels established by the GeorgiaGain state personnel management program. --Supplemental adjustments and an additional 5 percent salary increase for Peace Officer Standards Training (POST) certified personnel in the youth development worker and facilities police job class series within the Department of Children and Youth Services.

24

Public Schools

BUDGET HIGHLIGHTS

$159,144,941 in state general funds to enhance public school education throughout the state. The funds include:
--$125,330,356 for student growth. --$4,259,687 to provide Internet access for public schools. --$4,003,363 for the Middle School Incentive program due to a projected increase in students and an expansion of sites. --$1,540,380 to implement a coordinated fund accounting, financial analysis and student information system. --$2,883,964 to increase equalization grants. --$2,752,708 to fund student growth in the Limited English-Speaking program. --$1,780,000 to increase funding for the Governor's Scholarship program.
$108,189,032 in lottery funds for public schools, including: --$36,841,431 to provide classroom computers for all public school systems. --$26,142,429 to expand capacity of the pre-kindergarten program to serve more than 60,000 four-year-olds. --$21,148,000 in capital outlay for fast-growing school systems. --$15,401,836 to fund on-site technology specialists in public schools.
$165,060,955 in new funding for public schools in the F.Y. 1997 amended budget, including: --$91,218,777 in the Midterm Adjustment for increased enrollment. --$42,421,201 in cash lottery capital outlay for fast-growing school systems. --$19,845,366 in lottery funds to support an increased enrollment in the pre-kindergarten program.
$97,835,000 in bonds in the F. Y. 1997 amended budget to construct new public schools in Georgia.

University System

$58 million in current funding redirected from low priority academic programs, administrative support, and other support areas to high priority academic programs consistent with mission, and direct instruction and services to students at the institution level.
$23,509,822 to increase formula funding, including a 1.7 percent enrollment increase.
$8.5 million to expand the Major Repair and Renovation Fund.
$3,985,000 to increase funding for the Traditional Industries program.
$33,054,422 in enhancements from F. Y. 1998 lottery funds, including: --$15 million for the Equipment, Technology and Construction Trust Fund. --$7.1 million for three special initiative projects: GALILEO, Connecting Teachers and Technology, and
Connecting Students and Services. --$6,454,422 to connect all education institutions and public libraries to the Internet.
25

BUDGET HIGHLIGHTS
$30 million in lottery funds for the Georgia Research Alliance, including $28 million in F.Y. 1997 for equipment, facilities and research, and $2 million in F. Y. 1998, including $1.5 million for two eminent scholars and $500,000 for the Technology Development Investment projects. $146,550,000 in bonds for new construction and renovations on college and university campuses, including $143,095,000inF.Y. 1997 and $3,455,000 inF.Y. 1998.
Technical Institutes
$10,920,300 to open six new satellites and retrofits at three technical institutes in F.Y. 1998...and to annualize the cost of 12 new facilities opened in F. Y. 1997. $9,749,158 (lottery) to purchase equipment for five new facilities scheduled to open in June or July 1997....and $6,255,000 (lottery) to purchase equipment for seven new satellite facilities opening in F. Y. 1998. (F. Y. 1997 amended) $20,648,000 (lottery) to fund construction projects at four technical institutes. (F. Y. 1997 amended) $1,641,740 to fund the first year ofa two-year conversion of the Atlanta Tech and Savannah Tech facilities to state management. When completed, this action will bring 32 (all but one) technical institutes under state management. $9 million in bonds to continue a multi-year repairs and renovations programs at various facilities statewide...and $1 ,905,000 in bonds to purchase equipment for renovated facilities. (F. Y. 1997 amended) $3 million inF.Y. 1998 and $1.5 million in F.Y. 1997 amended lottery funds to replace obsolete instructional equipment system-Wide.
Scholarships
$6,180,275 to provide another chance to earn a HOPE scholarship to students enrolled in public and private colleges who have a "B" grade point average after 45 quarter hours.
Adult Literacy
$1,040,000 to fund 26 new adult literacy teachers, an action that completes Governor Miller's promise to place at least one adult literacy teacher in all of Georgia's 159 counties.
26

Human Resources

BUDGET HIGHLIGHTS

The state's old welfare program was abolished and replaced with a new program that emphasizes an ultimate goal ofemployment for those who are willing to help themselves. The new program, Temporary Assistance for Needy Famities (TANF), focuses on education and training as the way to end the cycle of poverty that has trapped so many families on welfare in the past. Instead of being an entitlement, TANF benefits are limited to four years. Funding highlights include:
--$209,585,465 to implement the TANF program for F. Y. 1998. (The program was originally started on January 1, 1997.) These funds were reallocated from the previous budget for the state's old welfare program. Spending on the new program is about the same as welfare expenditures in prior years. However, the state is spending funds in a different way. --$11.1 million was set aside in a reserve fund that was created from federal TANF funds to help future needy families and children should an economic downturn occur. --$3,492,545 in fudigent Care Trust Funds to implement teen pregnancy prevention initiatives in support of the welfare refonn. Because the need for welfare assistance in the past has been triggered by a high rate of teenage pregnancies, Governor Miller launched the new program to reduce the incidence of teenage pregnancies as a means of ending so much dependence on state assistance.
--$1.8 million from federal TANF block grant funds to annualize teen pregnancy prevention sites funded in the
F. y. 1997 amended budget.
- $1 million in Substance Abuse Block Grant funds for services to pregnant and postpartum women. --$1,689,750 (TANF funds) for 50 Intake Eligibility Workers to investigate and prevent fraud and abuse in cash assistance programs. --$3,495,993 (TANF funds) for 88 grant-in-aid staff to coordinate and detennine eligibility for child care servlces. --$3,150,000 (TANF funds) for 70 grant-in-aid staff to help recipients find jobs. --$8 million (TANF funds) to purchase job placement services for those recipients that have traditionally been hard to place. --$771,998 (TANF funds) to expand job training and work partnerships with the Department of Technical and Adult Education. --$5,328,072 to provide classes to recipients of public assistance who have not received their high school diploma or GED.

$24,443,190 in savings reflected by a reduction in the number of public assistance recipients.

Governor Miller's emphasis on expanding community services received several boosts in funding: --$7,054,200 to redirect funds from institutional care for the mentally retarded to community-based waiver slots by closing Brook Run. Approximately $15 million will be redirected over a two-year period.
--$12,642,015 to reallocate state funds from state hospitals to expand community services for the chronically mentally ill.
--$11,890,934 in Indigent Care Trust Funds for 2,061 additional slots under the Community Care for the Elderly Program and for community-based services to 932 low-income elderly who are not Medicaid eligible.

27

BUDGET HIGHLIGHTS
--$3,751,387 to annualize F. Y. 1997 funding for community-based services for severely emotionally disturbed children and adolescents, and to complete Phase I funding in the Bulloch, Emanuel, Sumter, Walker and Whitfield County service areas.
--$1,316,035 to transfer funds from the Department of Medical Assistance for 761 additional slots under the Community Care for the Elderly Program. --$338,349 to annualize funding for community-based services for the chronically mentally ill in the Baldwin County service area.
Medicaid
$35 million to fund a projected increase in Medicaid utilization, which includes $14 million to cover a reduction in the federal financial participation rate. The number of Medicaid recipients has almost tripled since 1980.
Economic Development
$850,000 in additional state funds to launch a new marketing program by the Georgia Legacy Division to target recruitment and development of growth industries important to Georgia's future, and to create a new Strategic Planning and Research Division to formulate and coordinate state economic development strategy. The funds will be matched by private donors.
Existing marketing funds will be redirected to the development of a multi-year marketing strategy to promote Georgia's research and technology development efforts and to establish an Incoming BuyersNisitor Program to increase the state's presence with foreign buyers of Georgia products.
Ports
$27,790,000 in bonds for the following ports improvements: $8.7 million to extend Berth 13 and related infrastructure at Ocean Terminal; $5,790,000 to construct a steel-framed Transit Shed adjacent to Berth 13; and $13.3 million for two container cranes for Container Berth 7 at Garden City Terminal.
Transportation
$17 million in motor fuel funds for projects of"greatest need"--projects identified by the department or other state or local entities as needed for economic development.
$15 million in bonds for the four-laning program.
$125 million in bonds to continue construction of the Governor's Road Improvement Program. (F. Y. 1997 Amended Budget)
$4 million in bonds to fund a feasibility study of a commuter rail line from Macon to Atlanta contingent upon an 80: 20 federal to state match. (F. Y. 1997 amended budget)
28

BUDGET HIGHLIGHTS
$3.2 million in bonds for dike construction and improvements for the Savannah Harbor. (FT. 1997 Amended Budget)
Environment
$10 million in bonds to acquire land under the River Care 2000 program.
$20 million in bonds to increase the amount ofmoney available to make low-interest loans to local governments for water, sewer and wastewater treatment projects.
$1,368,000 for the Environmental Protection Division to establish total maximum daily pollution for Georgia's rivers and streams in compliance with a federal court ruling that such action be taken within five years.
$7,619,541 to increase funding to a level of $17,900,013 to fmance the clean-up of hazardous waste sites not covered under federal laws.
$400,000 in bonds for Tybee Beach restoration.
Corrections
$15,566,563 in F.Y. 1998 and $3,220,692 in amended F.Y. 1997 to fund various phases and commitments in opening 2,028 new beds in facilities being constructed throughout the state's prison system. In addition to these funds, the Department of Corrections was authorized to use existing funds to start up the 192-bed tent unit at Hancock State Prison.
$2,527,769 inF.Y. 1998 and $2,116,642 in amendedF.Y. 1997 to fund the cost for food, medical expenses and clothing associated with adding 1,830 new beds to existing facilities.
$6 million in amended F. Y. 1997 in advanced funding required to enter into contractual agreements for privatizing the construction and operation of three new 500-bed prisons in Coffee, Wheeler and Charlton Counties.
$3,154,555 in F. Y. 1998 to provide contract funds for the operation of one privatized transition center and one privatized diversion center.
Children and Youth
$9,563,965 in net new funding to open and operate new facilities being constructed to deal with a major increase in juvenile crime.
$14.2 million in bonds to construct a 150-bed YDC in Sumter County.
29

BUDGET HIGHLIGHTS
$3,957,787 to annualize the conversion of the Wrightsville Correctional Facility for adults to a Youth Development Campus. ($3,288,157 was included in the F.Y. 1997 amended budget to start the conversion.) $2,283,694 to enhance educational, counseling and mental health treatment services for juveniles with specialized needs at the Lorenzo Benn and Augusta Youth Development Campuses. $1,605,000 in bonds for various repair and renovation projects. (97 amended)
Georgia Bureau of Investigation
$382,525 in F.Y. 1998 and $500,000 in amended F.Y. 1997 to improve operations in the State Crime Laboratory, primarily to process cases faster. $325,000 to hire four scientists responsible for creating a DNA database of both offenders and unknown suspects. These funds are partially coming from a decision to stop developing profiles only on convicted sex offenders.
$3,285,000 in bonds to construct a replacement laboratory building for the Columbus Branch Crime Lab...and $645,000 in bonds to construct a morgue/autopsy facility adjacent to the Macon Branch Crime Lab (both projects in amended F.Y. 1997).
Public Safety
$1,540,000 in bonds to design and construct a training facility for the Department of Children and Youth Services at the Georgia Public Safety Training Center.
$1.4 million to start purchasing gasoline for trooper vehicles from retail outlets, an action that will allow the closure of 48 underground storage tanks at patrol posts.
Agriculture
$2 million in bonds to make improvements to the Atlanta Farmer's Market.
$500,000 in bonds to construct an addition to the Atlanta Farmer's Market. A payback project.
$1.7 million in bonds for land acquisition, renovation and landscaping at the Agricultural Exposition Center in Perry.
Revenue
A program to modernize the Department of Revenue was launched at a cost of $19,357,500 between the
30

BUDGET HIGHLIGHTS
amended F.Y. 1997 and F.Y. 1998 budgets. The "Blueprint for Modernization" program will cost some $113 million over several years but will ultimately more than pay for itself by creating a new department that will be capable of administering the state's tax, tag and title laws in the most accurate, fair and cost-effective manner.
General Government
$20 million in bonds to continue renovations to the #2 Peachtree Building, including $8 million to renovate the Annex for use by the Georgia State University School of Public Policy. $5 million in bonds for the remediation, removal and replacement of underground and above ground storage tanks. $13,720,000 in bonds to continue renovations at the State Capitol. (97 amended) $4,550,000 in bonds to renovate all floors and major mechanical systems at 244 Washington Street. (97 amended) $3 million in bonds to modify facilities to meet standards of the Americans with Disabilities Act. (97 amended)
Redirection
Redirection, in its third year, will provide most of the growth needs of state agencies, with enhancement funds mostly going to fund the Governor's initiatives and priorities in education. A total of $292,640,453 in existing agency funds were redirected to other purposes, with $216,038,096 added back to agency budgets to meet such needs as expanded programs or inflation-driven increases. Of the $408,392,893 in enhancement funds, education received 89 percent. This is in keeping with the Governor's promise to place his budget emphasis on improving education. Of the 11 percent of enhancement funds that went to non-education agencies, almost all of it went to fund prisons, children and youth detention facilities and indebtedness on new bonds approved for sale.
31

EDITOR'S NOTES
Vetoes by Governor
(HB. 204--F. Y. 1998 General Appropriations Act)
Section 8 (page 7, line 310) and Section 40 (pages 35-38, lines 1581-1707), pertaining to the Department of Community Affairs.
Vetoed $2,110,000 allocated for 89 separate local assistance grants. The Governor explained that adequate resources were made available through the F. Y. 1997 budget to address local project needs. "In this time of budget redirection and fiscal constraint, it seems only proper that other priorities should be more carefully considered. "
Section 11 (page 12, line 518), pertaining to the Department of Education. Vetoed $2.4 million in lottery funds that would have provided computers for Applied Technology Labs at schools in 20 local systems. The Governor explained the state has provided $10 million in lottery funds for such labs since 1995 and additionally has disbursed nearly $124 million to local school systems for new classroom computers. He said computer equipment for all classroom uses has become standard school equipment and should be replaced with formula funding for replacement equipment provided through the QBE formula.
Section 11 (page 12, line 526), pertaining to the Department of Education. Vetoed $1.1 million in lottery funds to equip one computer lab in each of Georgia's 11 congressional districts at a cost of $1 00,000 per lab. The Governor explained that the F. Y. 1998 budget includes $36,841,431 in lottery funds for the purchase of classroom computers for local systems, with the funds to be distributed on the basis of $27.48 per FTE. "This represents a far more efficient and effective use of state funds for the acquisition of computers for Georgia's schools."
Section 23, (page 23, line 1047) pertaining to the Department of Natural Resources. Vetoed $1 million for Recreation Grants. The Governor explained that the General Assembly added $300,000 to Recreation Grants in F.Y. 1997 and doubled his recommendations for F.Y. 1998. He said that the General Assembly appropriated $2,461,276 in Local Assistance Grants (36% of the total Local Assistance Grants amount) for recreation in the F. Y. 1997 Amended Budget. "Thus, even without the Recreation Grants program in the Department of Natural Resources, there are adequate resources for recreation needs in this state."
Section 23 (page 23, line 1048) and Section 45 (page 40, lines 1774-1775), pertaining to the Department of Natural Resources.
Vetoed $2.9 million from the Hazardous Waste Trust Fund in the line item "Chattahoochee River Basin Grants." The Governor explained that the grant program was first funded in F. Y. 1997 but that the projects are not critical environmental or health priorities. Since the Trust Fund was created to clean up serious hazardous waste sites and it is estimated that the State Superfund program will still be short more than $19 million when the law sunsets in 2003 even if no new hazardous waste sites are discovered, the Governor said it is not fiscally sound to reprogram funding from the Trust Fund for other purposes.
Section 27 (page 28, line 1233), pertaining to the Board of Regents, University System of Georgia. Vetoed funds earmarked for the renovation at College Station at the University of Georgia. The Governor explained that a recently completed program evaluation documents that the Agricultural Experiment Stations receive major repair and renovation funds that could be used to renovate the dairy and that the State Board of Regents did not originally request the funding.
Section 39 (page 35, lines 1571-1574), pertaining to the Department of Administrative Services. Vetoed language approved in the 1996 session ofthe General Assembly to control the purchase of communications equipment that was not compatible with an 800 mega hertz system. The Governor explains that the state now believes that a limited number of communication equipment purchases need to be made for security and safety reasons that may not be compatible with an 800 mega hertz system. He said the Office of Planning and Budget will issue a policy guideline relative to communications equipment purchases which will address budgetary approval and technical review requirements.
32

EDITOR'S NOTES
Section 43 (page 39, lines 1755-1756), pertaining to the Department of Medical Assistance. Vetoed language that the Governor said would compromise the department's ability to effectively and efficiently manage the use of pharmaceuticals by Medicaid recipients.
Section 43 (page 39, lines 1757-1758), pertaining to the Department of Medical Assistance. Vetoed $4.1 million in state funds and language that would have provided for a rate increase for all nursing home providers. The Governor explained that the cost of such a rate increase would total $16.6 million, more than four times greater than the amount appropriated. In addition, he said the language violates federal Medicaid regulations by excluding state facilities from the rate increase.
Section 47 (page 41, lines 1804-1807), pertaining to the Department of Transportation. Vetoed language that authorized the department to transfer position counts between budget functions provided that the department's total position count did not exceed the maximum number of annual positions assigned by law. The Governor explained that the language is unnecessary for two reasons: (l) All executive branch agencies are legally authorized to amend their budgets and transfer positions between budget functions when a properly drawn amendment to the annual operationg budget has been approved by the Office of Planning and Budget, and (2) The number of positions in each budget function is not specified in the Governor's budget recommendations to the General Assembly or in the annual appropriations act.
Section 56 (page 43, lines 1901-1905), pertaining to federal funds. Vetoed language that essentially provided a pool offederal money to be available only to supplant state funds. The Governor explained he vetoed the language because it limits the state's ability to accept additional federal funds as they become available throughout the fiscal year.
Section 57 (page 44, lines 1954-1962), pertaining to the Department of Technical and Adult Education. Vetoed the authorization of $8,950,000 in bonds that would have funded the following projects: An Adult Leaming Center in Turner County, $500,000; public library facilities in Bryan, Chatham, Dodge, Effingham, Henry, Jeff Davis and Union Counties, $2.4 million; a library for the City of Aragon, $50,000; the renovation of facilities at North Georgia Tech, $3.6 million; and the renovation offacilities at South Georgia Tech, $2.4 million. Concerning the public libraries, the Governor said they are one of the few areas in the budget that had no budget reductions from redirection. In fact, he said, they received substantial funding to have Internet and Galileo connection for libraries in each county. In addition, he said it is prudent both from a policy and a fiscal perspective to wait on any new library expansions until the Department of Technical and Adult Education has completed its strategic plan and capital plan for the library system.
Section 57 (page 44, lines 1963-1968), pertaining to the Board of Regents. Vetoed the authorization of$l ,280,000 in bonds for the planning and design of a classroom facility at Augusta State University. The Governor said he vetoed the project because its priority should be determined by a facility master plan to be developed for the entire campus.
Section 57 (page 45, lines 1970-1976), pertaining to the Georgia Ports Authority. Vetoed the authorization of$5.9 million in bonds for three projects: planning and environmental studies for the Brunswick deepening ($600,000), design and engineering of the Brunswick Harbor deepening ($4 million, including state advance funding ofthe federal share), and repairs to the Bainbridge dock and replacement of its material handling conveyor ($1.3 million). The Governor explained that the planning and environmental studies for the Brunswick project were funded last year and the Georgia Ports Authority was to provide funding for a portion of the project equivalent to the state grant and to pay for any cost overage. The state has provided its commitment to the project, he said. The deepening was rejected in part, the Governor said, because the state was not only paying its share but was advance funding the federal share in anticipation of it being appropriated by Congress. "In light of the efforts of Congress to balance the budget, it is much more problematical than in previous years that funding will be provided. Also considering the estimated $60 million to deepen the channel, the State of Georgia should not provide full advance funding for this project. If Congress appropriates the federal share of this project, the state can reconsider its position."
33

EDITOR'S NOTES
Section 57 (page 45, lines 1996-2001), pertaining to the Department of Education. Vetoed the authorization of $7,330,000 in bonds that would have provided ordinary vocational equipment for 50 high schools in 32 local systems. The Governor said a major funding inequity has developed among local school systems over recent years because of the state appropriating special funding for selected high schools in addition to formula funding replacement equipment for all systems. The lotal state funds per FTE to individual systems between F. Y. 1988 and F. Y. 1996 range from a low of $69 to a high of $1,131, he said. "Funding for replacement equipment is included in the QBE formula. Local systems should begin to plan ahead to more effectively and efficiently use existing formula funds to meet their current and long-range equipment needs. "
Appropriations Transfers by Executive Order
Several appropriations in the original F. Y. 1997 Appropriations Act were transferred to other agencies through Executive Orders signed by Governor Miller. These transfers will explain differences in the original F. Y. 1997 appropriations as shown in this publication as compared to those shown in the F. Y. 1997 Budget in Brief. The transfers include:
$25,055,218 from the State Board ofEducation to the Department ofTechnical and Adult Education. The transfer includes $24,555,218 in state general funds to provide personal services and operating support to the county and regional public libraries and $500,000 in lottery funds to provide assistive technology grants.
$11,780,748 from the Department of Corrections to the Department of Children and Youth Services to fund, manage and operate the Johnson Correctional Institution for youthful offenders.
$458,542 from the Department of Human Resources to the Department of Education to support the Office of School Readiness.
$131,000 from the Office ofthe Governor to the Department of Human Resources to support the Statewide Child Abuse Prevention Panel.
Indirect Funding
The Appropriations Act each year allocates $16.1 million in direct funding to the Department of Administrative Services (DOAS) for computer and telecommunications services to be provided to seven specific state agencies. These funds are allocated in this manner to facilitate cash flow for DOAS but are available to DOAS only as services are provided to each agency. To report each department's actual budget, these funds are included in the totals of each department in this publication rather than in the DOAS budget.
Computer funds by department are: Human Resources, $4,615,000; Revenue, $3,755,000; Public Safety, $1,500,000; Corrections, $300,000, and Education, $230,000.
Telecommunications funds are: Regents, $3,583,000; Human Resources, $1,417,000; Natural Resources, $200,000; Corrections, $150,000; Public Safety, $150,000; Education, $110,000, and Revenue, $90,000.
34

LEGISLATIVE BRANCH

GENERAL ASSEMBLY

F.Y. 1998 STATE APPROPRIATIONS

,

F.Y. 1997 AMENDED STATE APPROPRIATIONS

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

ADJUSTED BASE--$27, 168,900

TOTAL REDIRECTION LEVEL--$27,168,900

$27,168,900 $26,278,571 $26,278,571

DEPARTMENT OF AUDITS

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$20,156,774 $20,625,494 $19,706,494

ADJUSTED BASE--$20,156,774

TOTAL REDIRECTION LEVEL--$20,156,774

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$919,000

$919,000

Increases computer charges for the conversion of the current DOS-based application to Windows 95 operating system.

35

JUDICIAL BRANCH

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$91,276,910 $83,818,558 $85,346,430

ADJUSTED BASE--$91,792,644

FUNDS TO REDIRECT--($2,143,634)

($2,043,634) Reduces operating expenses in the Superior Courts.

($100,000)

Transfers funds from the Superior Courts to the Georgia Courts Automation Commission.

ADDITIONS--$1 ,627,900

$1,250,000

Increases the Grants to Counties ($1,000,000) and the funds for the Office of Multicounty Public Defenders ($250,000) in the Indigent Defense Council.

$150,000

Provides for the BASICS Program in the Judicial Council.

$100,000

Allows for two technical support positions in the Georgia Courts Automation Commission.

$90,000

Transfers the Georgia Commission on Family Violence from the Department of Human Resources to the Judicial Council.

$37,900

Adds funding in the Prosecuting Attorneys Council for motor vehicles.

TOTAL REDIRECTION LEVEL--$91,276,910

The F.Y. 1998 budget includes Supreme Court ($6,229,503), Court of Appeals ($7,995,875), Superior Courts ($65,432,314), Juvenile Court ($1,209,812), Institute of Continuing Judicial Education ($783,635), Judicial Council ($2,621,870), Judicial Qualifications Commission ($166,364), Indigent Defense Council ($4,284,487), Georgia Courts Automation Commission ($2,294,186) and Georgia Office of Dispute Resolution ($258,864).

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($1,527,872)

$231,650

Provide funds to the Georgia Courts Automation Commission for the second phase of the Juvenile Courts database project.

$92,040

Adjusts the Superior Courts budget to provide for projected operating expenses.

$70,000

Increases operating funds for the Superior Courts to accommodate travel for District Attorneys.

$58,438

Provides for a contract for the microfilming of the Court of Appeals' records.

$40,000

Increases funding to the Juvenile Courts to provide for projected expenses.

($1,850,000) Reduces operating expenses for the Superior Courts.

($120,000)

Decreases personal services funds for the Court of Appeals.

($50,000)

Reflects a reduction in personal services funding for the Supreme Court.

36

DEPARTMENT OF ADMINISTRATIVE SERVICES

F.Y. 1998 STATE APPROPRIATIONS

,

F.Y. 1997 AMENDED STATE APPROPRIATIONS

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$25,148,629 $25,526,890 $26,133,157

ADJUSTED BASE--$25,466,414

FUNDS TO REDIRECT--($1,477,612)

($487,811)

Reflects a decrease in computer charges expenditures.

($333,781)

Decreases the state funded portion of expenses for the Office of Treasury and Fiscal Services.

($191,621)

Eliminates 10 positions and reduces various expenses in the data processing services section.

($184,223)

Decreases personal services and other operating expenses within the Office of State Administrative Hearings.

($139,439)

Eliminates one position and reduces other operating expenses in the procurement administration section.

($117,737)

Discontinues in-house development of the federal statewide cost allocation plan.

($23,000)

Reduces per diem, fees and contract expenses for the State Properties Commission.

ADDITIONS--$1,159,827

$1,002,281

Begins modernization of the Personnel Accounting and Control System (PACS) computer system.

$117,000

Increases critical personal services funding for the Office of State Administrative Hearings.

$22,546

Funds a contract forthe development of the federal statewide cost allocation plan.

$18,000

Provides funds to replace one motor vehicle for the State Properties Commission.

TOTAL REDIRECTION LEVEL--$25,148,629

The total F.Y. 1998 budget for the department from all fund sources is $180,889,649. This amount includes the direct state funds appropriations listed above as well as user fees collected from clients for services provided. To meet the department's cash flow requirements, the Appropriations Act includes $16,100,000 in indirect funding for DOAS for computer and communications services that will be provided to selected state agencies. This publication includes these funds in the various departments to more accurately reflect their true state funding levels.

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($606,267)

$50,000

Provides additional funds for the State Health Planning Review Board to handle hearing case backlogs.

($500,000)

Reduces funding for the Georgia Building Authority.

($150,000)

Decreases appropriation for the Public Safety Officers' Indemnity Fund.

37

DEPARTMENT OF ADMINISTRATIVE SERVICES

($6,267)

Reflects a decrease in agency self-insurance rates.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $25,000,000 in bonds that relate to the Georgia Building Authority for F.Y. 1998, and $27,170,000 in bonds that relate to the Georgia Building Authority for F.Y. 1997.

38

DEPARTMENT OF AGRICULTURE

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$41,776,853 $41,694,271 $42,020,166

ADmSTED BASE--$42,181,019

FUNDS TO REDIRECT--($838,545)

($451,877)

Reduces various operating expenses.

($278,673)

Eliminates 10 positions within the Plant Industry, Animal Industry, Marketing and Internal Administration divisions.

($75,000)

Reduces expenses associated with the Athens and Tifton Veterinary Diagnostic laboratories contract.

($32,995)

Decreases payment to the Georgia Agrirama Development Authority.

ADDITIONS--$434,379

$120,430

Replaces obsolete personal computers, monitors and printers.

$110,378

Provides for supplies and materials ($40,000) and toxicology personnel expenses ($70,378) associated with the Poultry Veterinary Diagnostic laboratories contract.

$100,000

Funds additional personnel expenses ($50,000) for pathology resident and computer analyst positions, and provides for equipment purchases ($50,000) associated with the Tifton Veterinary Diagnostic Laboratory portion of the Athens and Tifton Veterinary Diagnostic laboratories contract.

$58,995

Replaces a van and increases funding for part-time personnel at the Georgia Agrirama Development Authority ($32,995). Additionally, $26,000 supplements Authority surplus funds which will be used to repair the visitor transport rail at the Agrirama facility.

$44,576

Provides for additional laboratory technician personnel expenses ($22,554) and laboratory equipment purchases ($22,022) associated with the Athens Veterinary Diagnostic Laboratory portion of the Athens and Tifton Veterinary Diagnostic laboratories contract.

TOTAL REDIRECTION LEVEL--$41,776,853

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($325,895)

($300,000)

Reduces personal services funding.

($25,895)

Reflects a decrease in agency self-insurance rates.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $2,500,000 in bonds that relate to the Department of Agriculture for F.Y. 1997.

39

DEPARTMENT OF BANKING AND FINANCE

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$9,523,070 $9,318,265 $9,318,265

ADmSTED BASE--$9,592,480

FUNDS TO REDIRECT--($462,740)

($365,755)

Redirects seven positions and eliminates one examiner position.

($96,985)

Provides for an adjustment to personal services funding.

ADDITIONS--$393,330

$257,700

Provides funding for the reassignment offour positions to the Mortgage Division, two positions to data processing and one position to the banking charter program.

$75,630

Funds the replacement of six vehicles.

$60,000

Provides funds for an increase to the entry level salary for assistant fmancial examiners.

TOTAL REDIRECTION LEVEL--$9,523,070

40

DEPARTMENT OF CHILDREN AND YOUTH SERVICES

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$167,942,031 $149,407,187 $148,978,886

ADmSTED BASE--$155,051,814

FUNDS TO REDIRECT--($5,947,966)

($2,527,841)

Eliminates 211 temporary beds and 41 positions at the Bill E. Ireland, Lorenzo Benn, and Augusta Youth Development Campuses (YDC).

($2,427,250)

Redirects funds from existing beds to provide additional treatment services for juveniles with specialized needs at the Lorenzo Benn and Augusta Youth Development Campuses.

($992,875)

Reduces funds in Grants to County Owned Detention Centers to privatize the Metro Regional Youth Detention Center (RYDC).

ADDITIONS--$5,550,452

$2,283,694

Funds enhanced educational, counseling and mental health treatment services for juveniles with specialized needs at the Lorenzo Benn and Augusta Youth Development Campuses.

$2,196,000

Provides funds to operate the Metro Regional Youth Detention Center as a private, 200-bed facility.

$567,434

Provides funds for 20 positions and operating costs for the department's transportation network.

Department of Children and Youth Services 1,600 Juvenile Population Sentenced under the 9O-Day Program
July 1996 - May 1997
1,400

1,200

1,000
.~
Ios 800
600

400

200 "

o

Aug9S Oct9S Dec9S Feb96 Apr96 June96 Aug96 Oct96 Dec96 Mar 97 May 97

Jul9S Sep 9S Nov 9S Jan 96 Mar 96 May 96 July 96 Sept 96 Nov 96 Feb 97 Apr 97

m [ill RYDC

YDC

41

DEPARTMENT OF CHILDREN AND YOUTH SERVICES

$443,324

Annualizes the cost of 100 beds appropriated in F. Y. 1997 for new cottages at Bill E. Ireland, Augusta, and Lorenzo Benn Youth Development Campuses.

$60,000

Increases the reimbursement rate for institutional foster care from 58 percent to 60 percent of allowable cost.

TOTAL REDIRECTION LEVEL--$154,654,300

ENHANCEMENT FUNDS

$5,056,760

Provides funds for the opening of Emanuel and McIntosh Youth Development Campuses.

$3,957,787

Annualizes the conversion of the Wrightsville Correctional Facility for adults to a Youth Development Campus.

$2,860,756

Funds the annualization of beds and program slots added in the F. Y. 1997 appropnatlons as follows: Bill E. Ireland YDC - 142 beds, Pelham YDC - 120 beds, Augusta Boot Camp - 30 beds, and North Georgia Wilderness Program - 24 slots.

$589,695 $462,733

Provides resources needed to meet educational standards in the department's school system, including educational materials, staff development and distance learning equipment costs.
Provides POST certified training to upgrade the youth development worker position class to correctional officer.

$200,000

Increases contract funds for the Mel Blount Group Home to provide community residential placement of unruly juveniles.

$60,000

Transfers funds from the Department of Human Resources to contract with the Augusta Mini Theater, Inc. to serve at-risk youth in the Augusta area.

$50,000

Increases funding to contract with Project Impact to provide counseling to youth and parents.

$50,000

Replaces federal funding for the Georgia Addiction, Pregnancy and Parenting Project (GAFP) located in Atlanta. The project is a community residential center providing drug rehabilitation services to women and their children.

TOTAL ENHANCEMENT FUNDS--$13,287,73 1

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$428,301

$3,288,157

Adds funds for the conversion ofthe Wrightsville Correctional Facility for adults to a Youth Development Campus.

$556,308

Provides funds for 20 positions and operating costs for the department's transportation network.

$503,798

Adds funds to enhance educational, counseling and mental health treatment services for juveniles with specialized needs at the Lorenzo Benn and Augusta Youth Development Campuses.

$416,019

Provides additional funding for operating the Regional Youth Detention Centers.

42

DEPARTMENT OF CHILDREN AND YOUTH SERVICES

$40,000

Adds funds for Project Success, an inner-city tutorial program for at-risk children in Augusta.

($2,520,944)

Redirects funds from the closure of temporary beds at the Augusta, Lorenzo Benn, and Bill E. Ireland Youth Development Campuses.

($1,680,947)

Redirects funds due to construction delays at the following facilities: Marietta Regional Youth Detention Center; Savannah Regional Youth Detention Center; Augusta Boot Camp; Pelham Youth Development Campus; and Lorenzo Benn Youth Development Campus.

($100,000)

Reduces Grants to County Owned Detention Centers.

($74,090)

Reflects the reduction in self-insurance rates.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $9,200,000 in redirected bonds and $19,400,000 in bonds that relate to the Department of Children and Youth Services for F. Y. 1997 and F. Y. 1998.

80,000 70,000 60,000

Department of Children and Youth Services Number of Cases Served by the Court Services Program
FY 1987 - FY 1996

50,000
1'1
~ 40,000
S 30,000

20,000

10,000



1988

1990

1992

1994

1996

1987

1989

1991

1993

1995

1997"

Fiscal Year

Estimate

43

DEPARTMENT OF COMMUNITY AFFAIRS*

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$25,995,075 $47,585,552 $40,635,112

ADJUSTED BASE--$26,691 ,448

FUNDS TO REDIRECT--($2,850,322)

($1,150,000)

Reduces the Regional Economic Business Assistance Program to help fund the new Regional Economic Development Grant Program (see Additions).

($500,000)

Eliminates the Local Government Efficiency Grant Program.

($481,392)

Eliminates financial/audit contracts ($15,578) and the Regional Solid Waste Grant Program ($380,000) and decreases the Emergency Loan Program ($35,625) and ($50,189) in personal services and regular operating expenses for the Georgia Environmental Facilities Authority.

($333,996)

Reflects adjustments among various object classes for the Department of Community Affairs.

($168,750)

Decreases state funds for existing programs of the State Housing Trust Fund.

($144,749)

Reduces operating expenses for Regionally Important Resources ($20,000), Solid Waste Plans ($10,000), Regional Development Planning Contracts ($104,274) and Empowerment ZonelEnterprise Community Program ($10,475).

($35,693)

Reduces funding for the Georgia Music Hall ofFame Authority for non-sponsored music programs.

($25,000)

Uses carry-over funds from F.Y. 1996 ($7,000) and excess funds for F.Y. 1997 ($18,000) to fund the F.Y. 1998 operations of the Georgia Sports Hall of Fame Authority.

($10,742)

Reduces state funds for various expenses of the Georgia Commission for National and Community Service.

ADDITIONS--$2,0 13 ,949

$1,731,392

Funds the new Regional Economic Development Grant Program designed to encourage and support multi-county and regional collaboration for economic development. Funding includes $481,392 from the Georgia Environmental Facilities Authority.

$133,745

Provides state funds for two positions and operating expenses for the Incentive Loans for Rural Industry Program. These positions can no longer be supported by GHFA funds.

$75,000

Funds the State Housing Trust Fund's new Care for the Children ofHomeless Families Program.

*Governor Miller vetoed $2,110,000 in state funds from the F.Y. 1998 appropriation to the Department of Community Affairs, and these funds have been deleted from the appropriation shown above. See Editor's Notes for more details.

44

DEPARTMENT OF COMMUNITY AFFAIRS
GEORGIA'S NEW HALLS OF FAME MUSIC HALL OF FAME
Artist's rendering ofMusic Hall ofFame now operating in Macon.
SPORTS HALL OF FAME
Artist's rendering ofthe Sports Hall ofFame funded for construction in Macon. 45

DEPARTMENT OF COMMUNITY AFFAIRS

$48,119

Increases telecommunications ($27,500) and the Appalachian Regional Commission assessment.

$25,693

Provides for a net increase for the Georgia Music Hall of Fame in operating expenses with major increases in marketing being partially offset by growth in revenues.

TOTAL REDIRECTION LEVEL--$25,855,075

ENHANCEMENTS FUNDS

$95,000

Increases the state match for the Georgia Commission for National and Community Service as required by new federal regulations.

$45,000

Provides funds for a grants management specialist position.

TOTAL ENHANCEMENT FUNDS--$140,000
Included in the F.Y. 1998 total appropriations for the Department of Community Affairs are funds for six attached activities. These are: Georgia Environmental Facilities Authority ($2,434,250); Georgia Housing and Finance Authority ($2,814,244); Music Hall of Fame Authority ($715,812); State Housing Trust Fund ($4,531,250); and Sports Hall ofFame ($197,868).

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$6,950,440

$6,702,636

Increases state funds for various Local Assistance Grants, including $2,461,276 in recreation-related grants.

$250,000

Provides funds for the Georgia Music Hall of Fame to offset projected revenue losses due to a threemonth delay in opening ($200,000) and to fund signs and landscaping ($50,000).

($2,196)

Reflects a decrease in agency self-insurance rates for the Georgia Environmental Facilities Authority.

See the section on the "State of Georgia General Obligation Debt Sinking Fund" for information about $5,000,000 for the removal and remediation of state-owned underground and above ground storage tanks for F. Y. 1998 and $20,000,000 in bonds for water and sewer loans for local governments provided by the Georgia Environmental Facilities Authority for F. Y. 1997.

46

DEPARTMENT OF CORRECTIONS

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$747,695,345 , $718,437,757 , $707,081,420

Under Reorganization, the Board of Pardons and Paroles was attached to the Department of Corrections for administrative purposes. The board has become an independent agency over the years; however, it remains budgeted as part of the Department of Corrections in the Appropriations Act, as reflected above. To provide budget information consistent with actual expenditures, the budgets of the two agencies are shown separately below.

DEPARTMENT OF CORRECTIONS

F.Y. 1998 STATE APPROPRIATIONS

,

, $702,984,192

F.Y. 1997 AMENDED STATE APPROPRIATIONS

, $675,129,443

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

, $663,842,256

ADJUSTED BASE--$686,516,579

FUNDS TO REDIRECT--($4,831,274)

($3,505,061)

Reflects the privatization of one diversion center and one detention center. This redirection eliminates 99 positions.

($809,250)

Reduces jail subsidy funding based on maintaining a lower jail backlog.

($516,963)

Annualizes the transfer of eight positions to the Board of Pardons and Paroles and the transfer of two positions and computer charges to the Department of Children and Youth Services.

ADDITIONS--$3,906,269

$3,154,555

Provides contract funds for the operation of one privatized transition center and one privatized diversion center.

$751,714

Funds care and custody costs for 1,830 beds added to existing prison facilities.

TOTAL REDIRECTION LEVEL--$685,591,574

ENHANCEMENTS FUNDS

$7,893,805

Reflects the annualization of operating costs of new fast track beds partially funded in F. Y. 1997. This includes 384 beds at Autry State Prison, 192 beds at Coastal State Prison, 192 beds at Lee State Prison, and 192 beds at Hancock State Prison. Further, funds provide for eight months operating cost for 300 beds at Eastman Youth Development Facility.

$2,091,490 and
$2,137,398

Provides start-up funding and 114 positions for 384 beds at Pulaski State Prison and start-up funding 114 positions for 384 beds at Augusta Correctional Medical Institution. This is in addition to in start-up equipment and vehicle costs in the F. Y. 1997 amended budget.

$5,581,268 10

Provides four months operating costs for 384 beds at Augusta Correctional Medical Institution and months operating costs for 384 beds at Pulaski State Prison.

47

DEPARTMENT OF CORRECTIONS

$1,776,055

Funds medical and food costs associated with 1,830 beds added to existing prison facilities.

$50,000 to

Provides operational costs for the nine additional GSAMS sites to provide inmates greater access educational services.

TOTAL ENHANCEMENT FUNDS--$17,392,6l8

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$11,287,187

$6,000,000

Provides advance funding for the three prisons being considered for privatization in Coffee, Wheeler and Charlton Counties. Funding is required in order to establish contractual agreements.

$2,116,642

Funds the incremental cost for food, medical expenses and clothing associated with the 1,830 beds added to existing prisons throughout the system.

$2,137,398

Provides start-up equipment and vehicles for the 384-bed addition at Pulaski State Prison and the 384-bed addition at Augusta Correctional Medical Institution.

$869,794

Provides start-up funding for the 192-bed unit at Autry State Prison, including 25 positions and 15 vehicles.

$783,000

Funds equipment and telecommunications costs to establish nine new GSAMS sites to provide inmates greater access to educational services.

$213,500

Provides start-up funding for the 192-bed facility at Coastal State Prison, including 25 positions and five vehicles.

($394,826) ($391,620)

Transfers eight positions and eight motor vehicles to the State Board of Pardons and Paroles. Reflects a de~rease in agency self-insurance rates.

($46,701)

Transfers two positions and computer charges to the Department of Children and Youth Services.

In addition to the state appropriations noted above, the department is authorized to use existing funds to start up the 192bed tent unit at Hancock State Prison which includes authorization for 57 positions and 15 vehicles. Further, the department is authorized to transfer funding from health care purchases to personal services and increase the agency position count by 28. This reflects a transfer of contract counselor positions to state counselor positions due to the lower salary cost associated with state counselor positions. In addition, the department is authorized to transfer funds from jail subsidy ($3,500,000) to personal services ($2,930,000), court costs ($300,000), inmate release funds ($200,000) and county subsidy ($70,000).

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $1,725,000 in bonds that relate to the Department of Corrections for F.Y. 1998, $6,670,825 in redirected bonds and $4,915,000 in new bonds that relate to the Department of Corrections for F.Y.1997.

48

DEPARTMENT OF CORRECTIONS

BOARD OF PARDONS AND PAROLES

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$44,711,153 $43,308,314 $43,239,164

ADmSTED BASE--$45,191,924

FUNDS TO REDIRECT--($480,771)

($450,000) bid.

Reflects a reduction in funding for the electronic monitoring contract due to a favorable contract

($30,771)

Provides for an adjustment reduction in personal services funding.

TOTAL REDIRECTION LEVEL--$44,711,153

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$69,150

$394,826

Reflects the transfer of eight positions, eight vehicles and associated funding from the Department of Corrections to the Board of Pardons and Paroles; and one position from the Department of Public Safety to the Board of Pardons and Paroles. Six positions and eight vehicles already are reflected in the agency's current positions and vehicle counts.

$150,000

Provides for the replacement of motor vehicles.

($465,000)

Reduces funding for the electronic monitoring contract due to a favorable contract bid.

($10,676)

Reflects a decrease in agency self-insurance rates.

In addition to the state appropriations noted above, the board is authorized to transfer one position from the Board of Pardons and Paroles to the Office of School Readiness.

49

DEPARTMENT OF DEFENSE

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

,

$4,363,044

$4,230,851

$4,230,851

ADWSTED BASE--$4,363,044

FUNDS TO REDIRECT--($215,400)

($159,400)

Reduces the Facilities Operations and Maintenance program in the Anny National Guard.

($50,000)

Reduces the Operations and Maintenance Agreement 02 program in the Air National Guard Facilities Maintenance program.

($6,000)

Reduces regular operating expenses in the Adjutant General's Office.

ADDITIONS--$215,400

$100,000

Provides funding for the Youth Challenge program.

$95,400

Increases funding in the Facilities Operations and Maintenance program in the Anny National Guard.

$20,000

Increases funding to support the Operations and Maintenance Agreement 01 for the B-1 Bomber Wing located in Warner Robins.

TOTAL REDIRECTION LEVEL--$4,363,044

50

STATE BOARD OF EDUCATION*

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$4,647,067,118 $4,459,982,856 $4,294,921,901

ADJUSTED BASE--$4,427,848,485 ($4,241,050,566 state general funds, $186,797,919 lottery funds). The adjusted base includes $179,528,184 to provide a six percent salary increase for teachers and a four percent salary increase for state-paid bus drivers and lunchroom workers.

STATE GENERAL FUNDS

FUNDS TO REDIRECT--($48,124,068)

($30,146,833) Increases Local Fair Share to reflect the most recent equalized tax index.

($15,289,138) Redirects funding for technology specialists to lottery funds in keeping with S.B. 46.

($1,532,293)

Reduces funds for At-Risk Summer School and Remedial Summer School to reflect actual student participation.

($505,528)

Redirects Department of Education operating expenses.

($465,025)

Reduces operating expenses for the Georgia School for the Deaf, Georgia Academy for the Blind and the Atlanta Area School for the Deaf.

($97,297)

Redirects state-funded operating costs for the Office of School Readiness.

($87,954)

Reduces operating expenses for the Professional Practices Commission.

ADDITIONS--$1,669,728

$1,669,728

Increases funding for personal services in the Department of Education for current appropriated positions.

TOTAL REDIRECTION LEVEL (state general funds)--$4,194,596,226

ENHANCEMENT FUNDS

$125,330,356 Provides funds for student growth in the QBE formula.

$11,987,712

Increases funding for the Special Instructional Assistance program to reflect increased student participation.

* Governor Miller vetoed a total of $3.5 million from the FY 1998 appropriation of state Lottery funds for the
Department of Education. These funds have been deleted from the appropriation shown above.
The funds had been authorized as follows: $2,400,000 for equipment for applied technology labs at public high schools, and $1,100,000 for a new Learning Logic site in each congressional district.
51

STATE BOARD OF EDUCATION

Teacher Salary Projections

$44,000

Based on SREB Salary Estimates

$42,000 $40,000 $38,000 $36,000 $34,000

....... ........... +

...............+....

--- -- .

__ -"
-- -_-&--- -- __k"'-

$32,000 - + - - - - - - - , - - - - - - - - . - - - - - - - - - - , - - - - - - - - ,

F.Y.96

F.Y.97

F.Y.98

F.Y.99

F.Y.OO

---.- Georgia - ...- - Virginia

$4,003,363
$2,883,964 $2,752,708 $2,115,391 $1,780,000 $1,540,380
$1,300,000
$1,000,000 $902,716 $877,428 $826,627

Provides additional funds for the Middle School Incentive program for a projected increase in students and an expansion in the number of sites. Increases funding for Equalization grants. Provides funds for student growth in the Limited English-Speaking program. Increases Per Diem, Fees, and Contracts for Internet access at public education facilities. Increases funding for the Governor's Scholarship program. Adds funds to computer charges to implement a coordinated fund accounting, fmancial analysis and student information system.
Provides increased funding for Pay for Performance to reflect increased participation and success rates by schools.
Funds middle school after-school programs for remedial and at-risk students. Increases Tuition for the Multihandicapped grants to reflect increased student costs. Provides increased funding for the Pre-School Handicapped program to reflect growth in need. Increases funds for In-School Suspension to reflect increased participation.

52

STATE BOARD OF EDUCATION

" $794,296

Provides funding for two new technology training centers and funds full-year operations at the existing centers.

$700,000

Funds Advanced Placement exams for all participating public school students.

$300,000

Expands the elementary foreign language program to the fifth grade at 24 pilot schools.

$50,000

Creates a drop-out prevention program.

TOTAL ENHANCEMENT FUNDS (state general funds)--$159,144,941

STATE LOTTERY FUNDS

ENHANCEMENT FUNDS

$36,841,431

Provides classroom computers for all public school systems at a rate of $27.485 per FTE with a minimum grant of$53,000 per school system.

$26,142,429 Provides additional funds to enable the Pre-Kindergarten program to serve up to 60,000 four-year-olds.

$21,148,000 Funds capital outlay for fast-growing school systems.

$15,401,836 Funds on-site technology specialists in public schools consistent with the intent to fund S.B. 46.

53

STATE BOARD OF EDUCATION

$3,804,500

Provides equipment and software for a coordinated fund accounting, financial analysis and student information system.

$2,000,000

Provides funds for assistive technology in public schools.

$689,836 $500,000

Funds equipment at two new technology center and equipment upgrades at existing centers. Purchases equipment to support Alternative School programs for disruptive students.

TOTAL ENHANCEMENT FUNDS (lottery funds)--$106,528,032

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$165,060,955

$91,218,777

Provides funds for the Midterm Adjustment based on updated FTE counts and adjusted local tax digests.

$1,780,000

Adds funds for students currently in the Governor's Scholarship program.

$1,612,598

Increases funding for the Middle School Incentive grant to cover an additional 12 eligible schools.

$1,300,000

Provides additional funds for schools which successfully achieved their Pay for Performance goals.

$902,716

Adds funds to the Tuition for the Multihandicapped grant program to pay for additional eligible students.

$700,000 $686,361

Provides funding to pay at least half the cost of Advanced Placement exams for public high school students.
Adds funds to computer charges for implementation of a coordinated fund accounting, [mancial analysis and student information system.

$490,111 $350,000

Increases funding for the Severely Emotionally Disturbed grant to cover a projected shortfall. Increases funding for existing technology training centers.

$250,000

Provides funds for a S.A.T. score improvement program.

$81,349

Transfers two positions from the Department of Human Resources and one position from the Board of Pardons and Paroles to the Office of School Readiness.

$42,000

Adds funding for real estate rentals for the Heart of Georgia RESA.

($16,474)

Reduces personal services expenses due to a reduction in agency self-insurance rates.

($100,000)

Reduces funding for Pupil Transportation.

54

STATE BOARD OF EDUCATION

" LOTTERY FUNDS

$42,421,201

Provides a portion of the F.Y. 1998 growth capital outlay for fast growing systems. The balance is funded in the F.Y. 1998 budget.

$19,845,366

Adds funds for the Pre-Kindergarten program to support the projected enrollment of 57,000 for the year.

$2,736,950

Provides equipment and software for a coordinated fund accounting, fmancial analysis and student information system.

$510,000

Adds funds for the postsecondary options program.

$250,000

Provides funds to purchase satellite dishes at schools constructed since the initial funding for public school satellite dishes.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $97,835,000 in bonds that relate to the State Board of Education for F.Y. 1997.

55

STATE FORESTRY COMMISSION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$34,539,659 $35,585,086 $35,443,370

ADJUSTED BASE--$35,854,000

FUNDS TO REDIRECT--($1,749,175)

($1,574,653)

Abolishes 39 positions ($1,556,776) and related costs ($46,077) in the Field Services Division but adds $28,200 in contract costs associated with having Fulton, Douglas and DeKalb Counties assume fire protection services currently provided by the conunission.

($117,836)

Abolishes one accounting technician position ($39,202), one forester position ($32,531), and one administrative secretary position ($46, I03) in the General Services Administration Division.

($56,686)

Abolishes one nursery coordinator position in the Reforestation Division.

ADDITIONS--$434,834

$394,834

Funds 11 positions ($358,434) and expenses ($36,400) for the conunission to assume the responsibility and cost of conducting the U.S. Forest Service Forestry Inventory Analysis every five years.

$40,000

Funds two research proposals related to forest management that will benefit Georgia's pulp and paper and forest products industries.

TOTAL REDIRECTION LEVEL--$34,539,659

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($141,716)

$159,000

Provides fimds for three front mount trucks which will be leased to Hancock County, Taliaferro County and the City of Marshallville via the conunission's Rural Fire Defense Program.

$21,000

Provides funds to the City of Reidsville to help with the purchase of a fire truck.

($38,284)

Reflects a decrease in agency self-insurance rates.

56

GEORGIA BUREAU OF INVESTIGATION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$48,215,166

$46,972,957

,

$46,619,323

ADJUSTED BASE--$47,767, 135

FUNDS TO REDIRECT--($388,194)

($224,194)

Eliminates three vacant positions in the Administration Division.

($164,000)

Reduces funds for the DNA database to cease developing profiles on convicted sex offenders.

ADDITIONS--$836,225

$325,000

Adds four scientists positions and related expenses to create a DNA database of both offenders and unknown suspects.

$197,000

Adds four scientists, two clerk transcribers and related expenses to reduce case turn-around time in the Forensic Sciences Laboratories.

$130,000

Provides for the purchase of supplies ($75,000) and replace three vehicles for the Forensic Sciences Laboratories ($55,000).

$128,700

Adds one project manager and related expenses for the state registry ofviolent offenders in the Georgia Crime Information Center.

$55,525

Increases per diem, fees and contracts for the Fulton County contract for autopsy assistance in the Forensic Sciences Division.

TOTAL REDIRECTION LEVEL--$48,215, 166

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$353,634

$300,000

Provides for the purchase of supplies for the Forensic Sciences laboratories.

$300,000

Provides for employer retirement cost for members with prior service as narcotic agents.

$200,000

Increases per diem, fees and contracts for the Fulton County contract for autopsy assistance in the Forensic Sciences Division.

($420,825)

Adjusts the state match required for the State Health Care Fraud Unit from 25% to 10% as awarded.

($25,541)

Provides for a decrease in agency self-insurance rates.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $3,930,000 in bonds that relate to the Georgia Bureau ofInvestigation for F.Y. 1997.

57

GEORGIA STATE FINANCING AND INVESTMENT COMMISSION

F.Y. 1998 AGENCY FUND APPROPRIATIONS F.Y.1997 AMENDED AGENCY FUND APPROPRIATIONS F.Y. 1997 ORIGINAL AGENCY FUND APPROPRIATIONS

$2,281,676 $2,314,049 $2,314,049

ADJUSTED BASE--$2,281 ,676

TOTAL REDIRECTION LEVEL--$2,281,676

The Commission's annual operating budget is funded from income generated through its fmance and investment services and is based on recommendations in the Governor's Budget Report to the General Assembly.

58

OFFICE OF THE GOVERNOR

"

F.Y. 1998 STATE APPROPRIATIONS

F.Y. 1997 AMENDED STATE APPROPRIATIONS

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$29,930,439

,

$33,039,333

$31,157,257

ADJUSTED BASE--$30,280,587

FUNDS TO REDIRECT--($836,148)

($251,000)

Redirects funds by privatizing two teacher certificate testing programs and reduces computer charges for the Professional Standards Commission.

($180,848)

Reduces funds for intern stipends and travel ($8,250) and cost of operations ($ I72,598).

($175,000)

Reduces operating expenses for the Office of Plannning and Budget.

($109,904)

Deletes two vacant positions and reduces funds in common object classes for the Office of Consumer Affairs.

($59,647)

Reduces operating expenses for the Commission on Equal Opportunity ($36,543) and for the Children and Youth Coordinating Council ($23,104).

($44,560)

Eliminates two vacant positions ($41,560) and reduces grants to the Civil Air Patrol by $3,000, from $60,000 to $57,000.

($15,189)

Reduces funds in common object classes for the Georgia Human Relations Commission ($12,870) and for the Information Technology Policy Council ($2,319).

ADDITIONS--$190,000

$100,000

Increases per diem, fees and contracts in Office of Planning and Budget for training of state fiscal officers.

$50,000

Provides for an increase in State Art Grants from $3,850,000 to $3,900,000.

$25,000

Increases the Humanities Grant from $150,000 to $175,000 in the Georgia Council for the Arts.

$15,000

Provides for operating expenses in the Children and Youth Coordinating Council to support production of a teen pregnancy prevention video.

TOTAL REDIRECTION LEVEL--$29,634,439

ENHANCEMENTS FUNDS

$296,000

Provides funding in the Office of Information Technology Policy Council for the development of the state's basemap to match the federal Geographic Information System.

TOTAL ENHANCEMENT FUNDS--$296,000

59

OFFICE OF THE GOVERNOR

The F.Y. 1998 budget includes an Emergency Fund of $3,900,000; $3,354,364 to operate the Governor's proper office; and $7,700,886 to operate the Office of Planning and Budget. Included in the total appropriations for the Office of the Governor are funds for 10 attached activities. These are the Commission on Equal Opportunity ($819,125), Georgia Council for the Arts ($4,502,137), Office of Consumer Affairs ($3,209,307), Criminal Justice Coordinating Council ($310,827), Children and Youth Coordinating Council ($526,596), Human Relations Commission ($311 ,207), Professional Standards Commission ($4,041,774), Georgia Emergency Management Agency ($1,148,252), Governor's Commission for the Privatization of Govemment Services ($163,040) and Office ofInformation Technology Policy Council ($646,123).

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$1,882,076

$1,185,678

Increases the Governor's Emergency Funds for the following: Law Department reimbursements ($95,678), Department of Revenue study ($975,000), local assistance grants ($115,000).

$700,000

Provides funding in the Office of Planning and Budget to enhance economic tax modeling systems to assist with tax policy and revenue decision making.

($3,602)

Provides for a decrease in agency self-insurance rates.

60

DEPARTMENT OF HUMAN RESOURCES

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$1,220,531,233 $1,205,625,505 $1,228,834,126

ADmSTED BASE--$1 ,253,089,475

FUNDS TO REDIRECT--($60,236,915)

($24,443,190) Reflects a reduction in the number of public assistance recipients.

($12,574,083) Establishes the new Temporary Assistance for Needy Families program ($209,585,465) to replace the AFDC welfare entitlement ($222,159,548).

($7,054,200)

Redirects funds from institutional care for the mentally retarded to community-based waiver slots by closing Brook Run.

($6,176,904)

Eliminates 103 positions and related funding by consolidating service regions; consolidating planning, budget and contract management at the state level; and streamlining administrative operations at the division level: General Administration (22 positions), Public Health (31 positions), Rehabilitative Services (5 positions), Family and Children Services (15 positions) and the Division ofMental Health, Mental Retardation and Substance Abuse (30 positions).

($2,100,000)

Reduces funding for inpatient hospital child and adolescent units at state hospitals as a result of placing these children in community services.

($2,030,936) Supplants state funds with other income at state hospitals.

($1,360,083) Supplants state funds with Social Services Block Grant funds in Adult Protective Services.

($967,091)

Reduces postage associated with the distribution offood stamp and welfare benefits.

($844,605)

Reduces or eliminates funding for various contracts: employability contracts ($500,000); MAPP licensing training ($45,206); Egleston Hospital ($200,000); Scottdale Child Development Center ($20,000); Houston County Drug Abuse Center ($5,320); Opportunities Industrialization Center ($25,000); PEACH public information ($22,779); and Community of Care ($26,300).

($625,000)

Reduces administrative costs at Central State Hospital due to the privatization of the Georgia War Veterans Nursing Home in Milledgeville.

($411,000)

Reduces funding to County Boards of Health.

($410,000)

Reduces homemaker services to disabled adults and the elderly.

($300,000)

Eliminates one-time funding for the Telemedicine program.

($231,196)

Reduces funding for medical services provided to indigent children.

($178,954)

Reduces funding for clotting factor for individuals with hemophilia.

($115,650)

Reduces funding for cancer treatment for the medically indigent.

($101,400)

Reduces funding for midwifery scholarships.

61

DEPARTMENT OF HUMAN RESOURCES

($90,000)

Transfers the Georgia Commission on Family Violence to the Judicial Council.

($60,000)

Transfers the contract with the Augusta Mini Theater, Inc. to the Department of Children and Youth Services.

($51,543)

Eliminates contract with the Macon and Middle Georgia Sickle Cell Society, Inc.

($34,765)

Reduces funding for low-cost obstetric and midwifery services provided to low-income women.

($31,315)

Reduces funding for the Auditory Education Center contract.

($25,000)

Reduces funding for the contract with SHARE to provide speech therapy in the Brunswick area.

($20,000)

Reduces funding for the contract with Georgia Registry ofInterpreters for the Deaf.

ADDITIONS--$27,678,673

$7,054,200

Provides community-based services for mentally retarded clients from Brook Run and continues dental services currently located at Brook Run.

$5,328,072

Provides classes to recipients of public assistance who have not received their high school diploma or GED. Classes will be provided through the Department of Technical and Adult Education or other providers.

$3,751,387

Annualizes F. Y. 1997 funding for community-based services for severely emotionally disturbed children and adolescents and completes Phase I funding in the Bulloch, Emanuel, Sumter, Walker and Whitfield County service areas.

$2,593,245

Increases the adoption supplement to 100 percent of the foster care per diem rate.

$1,466,000

Provides independent living services for foster care children preparing to leave foster homes.

$1,195,555

Increases contracts with private adoption agencies for placement of children in state custody.

$1,121,912

Provides cash benefits for 1,206 children projected to lose SSI benefits on January 1, 1998.

$1,000,000

Allows DHR to privatize child support collection services for up to one-third of all non-welfare collection cases.

$716,400

Expands eligibility for two parent families from six to twelve months and eliminates the 100 hour rule for two parent families receiving cash assistance.

$468,702

Increases the reimbursement rate for family foster care from $10.50 per day to $10.70 per day.

$440,000

Increases funding for domestic violence shelters.

$375,000

Provides first year grants of$25,000 to 15 new Family Connection sites.

$338,349

Annualizes funding for community-based services for the chronically mentally ill in the Baldwin County servIce area.

$300,000

Provides early intervention and preventive services for families of newborns in Americus, Brunswick and Rome. Services are provided through Families First programs of the Children's Trust Fund.

62

DEPARTMENT OF HUMAN RESOURCES Child Support Collections

:~~~~f?1~i~~~~~~~~~~~~$Ri.~~~~ 1992 :-:::*::::t::t: ...::;::.:..... ~~:::.::::~ ..:::

1988 &,~:m:~:::

o

50

100

150

200

250

300

350

$ Millions

ElTANF II Non-TANF

$250,000 $249,000 $200,000 $150,000 $150,000 $51,543 $51,000 $50,000
$50,000 $50,000 $50,000 $50,000
$40,000 $32,808 $30,500

Increases case services funding to assist people with disabilities in obtaining employment. Raises the reimbursement rate for institutional foster care from 58 percent to 60 percent of allowable cost. Expands toxic waste assessment and food surveillance capabilities. Expands job opportunities for TANF recipients through micro-enterprise initiatives. Provides funding for the development of a database for the State Health Planning Agency. Provides funding for the Grady Sickle Cell program. Funds HVAC system for the Coastal Center for Developmental Services. Provides funds to design a therapy area for Roosevelt Hall at the Roosevelt Warm Springs Institute for Rehabilitation. Increases funding for the Court Appointed Special Advocates (CASA) program. Provides funding for the Visions After-School Program for at-risk youth in the Sumter County area. Increases funding for the Georgia Commission on Family Violence. Provides funding for Georgia Options, Inc. which serves people with disabilities in the 10-county area of Northeast Georgia. Provides additional funding for the Albany Area Retardation Commission. Provides funding to support the Homeless Families with Children Program in Fulton County. Provides funding for the Georgia Chapter of the Epilepsy Foundation.
63

DEPARTMENT OF HUMAN RESOURCES

$30,000

Funds additional community placements for mentally retarded clients in Northwest Georgia.

$25,000

Supports the creation of an early childhood resource library, a project of The Connector (Making the Connection), Inc. in Dekalb County.

$10,000

Provides funding for the Piney Grove Youth Development Program in Dekalb County.

$10,000

Provides equipment for the Brunswick DFACS office.

TOTAL REDIRECTION LEVEL--$l ,220,531 ,233

In addition to the appropriations noted above, the department is authorized to use $11,890,934 in Indigent Care Trust Funds for 2,061 additional slots under the Community Care for the Elderly Program and for community-based services to 932 lowincome elderly who are not Medicaid eligible. Additionally, the F. Y. 1998 budget includes $4,793,056 in Indigent Care Trust Funds to expand the Children 1st program statewide and $3,492,545 in Indigent Care Trust Funds for teen pregnancy prevention initiatives in support of welfare reform.

The department is also directed to use federal TANF block grant funds for the following: $1,689,750 for 50 Intake Eligibility Workers to investigate and prevent fraud and abuse in cash assistance programs; $3,495,993 for 88 grant-inaid staff to coordinate and determine eligibility for child care services; $3,150,000 for 70 grant-in-aid staff to help recipients fmd jobs; $8,000,000 to purchase job placement services for those recipients that have traditionally been hard to place; $771,998 to expand job training and work partnerships with the Department of Technical and Adult Education; $1,800,000 to annualize teen pregnancy prevention sites funded in the F. Y. 1997 Amended Budget; and $1,500,000 to continue the grants to communities for innovative programs that have demonstrated results in reducing teen pregnancy.

WELFARE RECIPIENT GROWTH*

400,000 350,000 300,000 250,000 200,000 150,000 100,000
50,000
o
Fiscal Year
*Growth based on individual enrollment for the AFD C Program which became the Temporary Assistance for Needy Families Program on Jan u ary 1, I 997. * *p rojected

64

DEPARTMENT OF HUMAN RESOURCES

The department is further authorized to use $438,305 in existing funds to contract with the Georgia Council on Child " Abuse and other grant funds to provide independent assessment and evaluation of new teen pregnancy prevention
programs and outcome assessment on existing programs.

Additionally, the department is authorized to use $1,000,000 in Substance Abuse Block Grant funds for services to pregnant and postpartum women.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $605,000 in bonds that relate to the Department of Human Resources in F.Y. 1998.

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($23,208,621)

$212,381,134 Implements Georgia's TANF program.

$5,179,761

Funds modifications of the Public Assistance Reporting and Information System (PARIS) and the System for Uniform Calculation and Consolidation ofEconomic Support Services (SUCCESS) welfare eligibility computer systems to support requirements of the new TANF program.

$2,394,118

Provides funding for the Family and Children Electronic Tracking System (FACETS) to track and and monitor children in social services programs such as foster care, adoption and child protective servIces.

$2,144,200

Expands work/training partnerships with the Department of Technical and Adult Education ($400,000) and provides classes to recipients up to age 25 who have not received their high school diploma or GED ($1,744,200).

$1,316,035

Transfers funds from the Department of Medical Assistance for 761 additional slots under the Community Care for the Elderly Program.

$1,244,773

Adds 50 Intake Eligibility Investigators to investigate and prevent fraud and abuse in new and recertified welfare cases.

$1,210,520

Replaces overstated child support recovery incentive earnings with state funds.

$710,232

Provides sufficient funding for workers' compensation benefits.

$582,116

Allocates 100 percent state funds to provide non-citizens up to one year of eligibility for cash assistance.

$500,000

Funds a contract with the U. S. Disabled Athletes Fund.

$350,000

Provides additional child care slots for the working poor at an average of $161 per month.

$300,000

Provides additional funding for Troubled Children Benefits.

$220,723

Removes the eligibility disincentive for two parent families under welfare by expanding eligibility from six to 12 months and by eliminating the 100 hour work rule.

$150,000

Provides funds for a branch office of the Middle Georgia Easter Seal Society to be located in Soperton.

65

DEPARTMENT OF HUMAN RESOURCES

$40,000

Transfers funds from Local Assistance Grants in the Department of Community Affairs for Miles Community Enrichment Corp.

$20,000

Provides funds for Senior Connections in Dekalb County.

($67,500)

Transfers two positions and operating funds to the Office of School Readiness.

($625,000)

Reduces funds at Central State Hospital due to the early start-up of the privatization of the Georgia War Veterans Nursing Home in Milledgeville.

($1,000,000) Supplants state funds with other income at state hospitals.

($11,007,777)

Transfers funds from Mental Health, Mental Retardation and Substance Abuse Community Services to the Department of Medical Assistance to provide state match for community mental health and mental retardation service expansions. Includes pass-through of $1,316,036 to the Office of Aging to provide match for 761 community care slots.

($18,334,436) Reduces state funds for public assistance to reflect the current projected caseload.

($220,917,521) Eliminates the AFDC welfare entitlement effective January 1, 1997.

In addition to the state appropriations noted above, the department is authorized to use $2,351,858 in federal funds to implement teenage pregnancy prevention initiatives and $180,000 to provide grants to communities for programs that have demonstrated results in preventing teen pregnancies. $300,000 in federal Substance Abuse Block Grant funds are authorized for services to pregnant and postpartum women in support of welfare reform.

The department is also directed to use $11,100,000 in federal TANF funds to establish a reserve fund to support families in case offuture economic downturns.

Additionally, the department is authorized to transfer $12,642,015 from state hospitals to expand community services for the chronically mentally ill.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $8,725,000 in bonds related to the Department of Human Resources.

66

DEPARTMENT OF INDUSTRY, TRADE AND TOURISM

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$20,076,479 $20,836,745 $20,841,481

ADmSTED BASE--$19,071,054

FUNDS TO REDIRECT--($1,286,566)

($717,491)

Transfers 12 positions and related operating expenses from the Economic Development Division to two newly created divisions: Strategic Planning and Research, and Georgia Legacy.

($164,075)

Reduces various marketing program funds.

($100,000)

Eliminates one reverse investment and trade lead development contract in the Brussels foreign office.

($65,000)

Eliminates one department photographer position.

($65,000)

Downgrades one assistant manager position in the Tokyo foreign office.

($50,000)

Reduces overseas compensation allowance.

($50,000)

Reduces funding for the least productive international trade contracts.

($50,000)

Reduces the publication budget for the tourism programs.

($25,000)

Eliminates one visitor information center maintenance contract.

ADDITIONS--$1,3 91 ,991

$386,287

Reflects a transfer of seven positions and operating expenses to the new Strategic Planning and Research Division.

$331,204

Reflects a transfer offive positions and operating expenses to the new Georgia Legacy Division.

$200,000

Provides state matching funds for participation in a public/private partnership to market the Southeastern U.S. internationally.

$140,000

Adds state funds for a ground maintenance contract to utilize prison labor at the five largest visitor information centers.

$90,000

Increases state funds for intemational trade contracts.

$75,000

Provides operating expenses for two new deputy commissioners of the newly created divisions.

$70,000

Adds state funds for one International Existing Industry Marketing Officer position.

$52,500

Provides funds for a professional accounting position.

67

DEPARTMENT OF INDUSTRY, TRADE AND TOURISM

$47,000

Adds funds for one International Market Research Associate position to the newly created Strategic Planning and Research Division.

TOTAL REDIRECTION LEVEL--$19, 176,479

ENHANCEMENT FUNDS

$600,000

Provides new marketing funds to be matched by private funds for the Georgia Legacy Division to target recruitment and development of growth industries important to Georgia's future.

$250,000

Provides funds for salaries of the two new deputy commissioner positions for the newly created Georgia Legacy and Strategic Planning and Research Divisions. State funding for the operation of these divisions will be matched by private sector funds from a public-private partnership established to support these new planning and targeted marketing divisions.

$50,000

Increases state funds to upgrade economic development project manager positions.

TOTAL ENHANCEMENT FUNDS--$900,000

In addition to funds appropriated for operations, H.B. 204 authorizes the use of existing marketing funds to develop a multiyear marketing strategy to promote Georgia's research and technology development efforts ($150,000) and to establish an Incoming BuyersNisitor Program ($150,000) to increase our presence with foreign buyers of Georgia products.

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($4,736)

($4,736)

Reflects a decrease in agency self-insurance rates.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $500,000 in bonds that relate to the Department ofIndustry, Trade and Tourism and $27,790,000 in bonds that relate to the Georgia Ports Authority forF.Y. 1997.

68

OFFICE OF COMMISSIONER OF INSURANCE

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$15,799,353

,

$15,149,383

$15,205,413

ADJUSTED BASE--$15,670,906

FUNDS TO REDIRECT--($766,553)

($513,307)

Represents privatization of a portion of the Agents Licensing Section, eliminating nine positions and associated operating costs.

($130,779)

Eliminates two positions within the Internal Administration Division and one position within the Fire Safety & Manufactured Housing Regulation Division.

($122,467)

Eliminates the actuary position by contracting with outside vendors.

ADDITIONS--$270,000

$125,000

Funds personnel expenses ($85,000) for two positions and actuarial services ($40,000) to implement House Bill 654 of the 1997 General Assembly. The implementation of this legislation will bring the state into compliance with the federal Health Insurance Portability and Accountability Act of 1996 (Kennedy-Kassebaum Act).

$75,000

Provides for contracting of actuarial services.

$35,000

Adds two positions to assist in consumer service investigations and regulatory analysis.

$35,000

Adds two positions to assist in fIre safety compliance building inspections.

TOTAL REDIRECTION LEVEL--$15,174,353

ENHANCEMENT FUNDS

$625,000

Provides funds to establish and operate the Special Insurance Fraud Fund as enacted in House Bill 616 ofthe 1995 General Assembly. The total amount ofthe appropriation must be collected and deposited into the State Treasury within the fIrst quarter ofF.Y. 1998. Allotments of these funds from the Treasury will be approved after'the deposits have been made.

TOTAL ENHANCEMENT FUNDS--$625,000

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($56,030)

($50,000)

Reduces personal services funding.

($6,030)

Reflects a decrease in agency self-insurance rates.

69

DEPARTMENT OF LABOR

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

ADWSTED BASE--$20,526,255

FUNDS TO REDIRECT--($25,257)

($22,170)

Reduces funding for the Child Labor Section.

($3,087)

Reduces state funding for the Georgia Commission on Women.

TOTAL REDIRECTION LEVEL--$20,500,998

$20,500,998 $19,628,869 $19,628,869

70

DEPARTMENT OF LAW

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$13,124,252 $12,521,718 $12,521,718

ADJUSTED BASE--$12,966,252

FUNDS TO REDIRECT--($99,686)

($75,000)

Provides for an adjustment to personal services funding.

($24,686)

Reduces computer charges.

ADDITIONS--$257,686

$157,686

Funds increased real estate rental costs to provide for additional state-owned office space.

$100,000

Provides funding for H.B. 600 which allows departmental oversight of transfers of assets of nonprofit health care corporations.

TOTAL REDIRECTION LEVEL--$13,124,252

71

DEPARTMENT OF MEDICAL ASSISTANCE

F.Y. 1998 STATE APPROPRIATIONS

F.Y. 1997 AMENDED STATE APPROPRIATIONS

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

,

$1,324,271,890 $1,306,932,224 $1,311,742,066

ADmSTED BASE--$1,324,161,339

FUNDS TO REDIRECT--($36,989,449)

($10,758,949) Expands the Georgia Better Health Care program and the voluntary HMO program statewide. (Total funds -- $27,686,437.)

($6,994,800)

Reduces reimbursement rates from 90 percent to 87 percent of the Resource Based Relative Value Scale (RBRVS) for physicians and other professional services. (Total funds -- $18,000,000.)

($5,829,000)

Implements pre-processing of Medicaid claims to ensure appropriateness of billing. (Total funds -$15,000,000.)

($4,119,160)

Implements Diagnosis Related Group (DRG) reimbursement methodology for hospital providers. (The DRG reimbursement methodology will sustain the F. Y. 1997 redirection savings in addition to the F. Y. 1998 redirection savings.) (Total funds -- $10,600,000.)

($3,458,540)

Adjusts Medicaid reimbursement methodology for the Outpatient Hospital program. (Total funds -$8,900,000.)

($1,943,000)

Enhances Medicaid program review to reduce unnecessary or inappropriate costs by systematically analyzing providers and services with the highest Medicaid expenditures or claim volume. (Total funds -$5,000,000.)

($1,943,000)

Modifies Medicare Crossover payment system to deny duplicate or inappropriate claims. (Total funds-$5,000,000.)

($1,943,000)

Adjusts process for authorization of outpatient psychotherapy by psychologists for services beyond 24 hours per recipient per year. (Total funds -- $5,000,000.)

ADDITIONS--$37, I00,000

$35,000,000

Provides for increased utilization of Medicaid Benefits including $14 million to cover a reduction in the federal financial participation rate. (Total funds -- $90,066,906.)

$2,100,000

Provides for the design and implementation of a new management information system. (Total funds -$21,000,000.)

TOTAL REDIRECTION LEVEL--$1,324,27 1,890 (Includes $148,828,880 for the Indigent Care Trust Fund)

The F.Y. 1998 budget sustains the F.Y. 1997 redirection savings for the nursing home ($23,353,280 in state funds) and pharmacy ($11,523,000 in state funds) programs. In addition, the F. Y. 1998 adjusted base includes $4,100,000 in state funds ($10,550,695 total funds) to provide private nursing facilities with a rate increase. Language authorizing the nursing facility rate increase was vetoed by the Governor.

72

DEPARTMENT OF MEDICAL ASSISTANCE
In addition, the department is directed to use Indigent Care Trust Funds to: expand the Children 1st program statewide ." ($4,793,056 total funds); fund teen pregnancy prevention services in support of welfare reform ($3,492,545 total funds);
fund the Policy Council for Children and Families ($150,000 total funds); increase slots for Medicaid (2,061 slots) and nonMedicaid (932 slots) eligible individuals under the Community Care Waiver program ($11,890,934 total funds); and, expand the Independent Care Waiver program by 30 slots ($1,551,000 total funds).

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($4,809,842)

$11,007,777

Transfers funding from the Department of Human Resources: $10,066,920 for additional clients under the Home and Community Based Waiver; $122,316 to annualize the expansion of the Chronically Mentally III program; and $818,541 for the Community Mental Health Centers. (Total funds -$25,245,483.)

($1,316,036)

Transfers funding to the Department of Human Resources for the expansion of the Community Care program.

($1,583)

Reflects a decrease in agency self-insurance rates. (Total funds -- $3,958.)

($500,000)

Eliminates funding for the Prospective Drug Utilization Review (proDUR) program in computer charges. (Total funds -- $2,000,000.)

($14,000,000) Reduces F.Y. 1997 Medicaid benefits to reflect revised benefit projections. (Total funds -- $36,458,333.)

The F.Y. 1997 budget includes a transfer of$19,500,000 in state funds ($39,000,000 total funds) from per diem, fees and contracts to Medicaid benefits ($50,794,478 total funds) to continue providing Non-Emergency Transportation services as a fee-for-service program. In addition, the F. Y. 1997 budget includes a transfer of $25,000 in state funds ($50,000 total funds) from per diem, fees and contracts to telecommunications to cover expenses associated with the enrollment of Medicaid recipients into managed care programs.

1,200,000
1,000,000
800,000
J 800,000
400,000
200.000

Growth in Medicaid Recipients

1980 1982 1984 1986 1968 1990 1992 1994 1996 Ascal Year

73

MERIT SYSTEM OF PERSONNEL ADMINISTRATION

F.Y. 1998 APPROPRIATIONS F.Y. 1997 AMENDED APPROPRIATIONS F.Y. 1997 ORIGINAL APPROPRIATIONS

$1,098,162,845 $1,099,766,134 $1,099,766,134

ADJUSTED BASE--$I, 102,680,391

FUNDS TO REDIRECT--($6,804,774)

($5,040,906)

Reflects projected State Health Benefit Plan cost savings through the following actions: developing a primary care physician network, establishing a healthcare demand management program, and receiving co-payments from claimants for certain emergency room visits ($1,876,658); expansion of the Chronic Disease Management Program ($1,664,248); and establishing a regional cardiac hospital network ($1,500,000).

($1,162,915)

Represents the cost of services identified as separate from the base level of services furnished to state agencies. These non-base services (Le. outplacement services; various specialized training, recruiting, and test development services; job evaluation; pay administration; etc.) will be funded through contracts with interested state agencies.

($600,953)

Eliminates 11 positions within the Human Resource Administration Division.

ADDITIONS--$2,287,228

$1,162,915

Reflects resources assigned to non-base services mentioned above. These services will be funded through contracts with interested state agencies and are not part of an agency's merit system position assessment for the base level of services provided to state agencies.

$600,953

Adds 11 positions to establish a Personnel Practices Evaluation and Audit unit in accordance with Senate Bill 635 enacted by the 1996 General Assembly.

$423,360

Funds expansion of the Chronic Disease Management Program.

$100,000

Provides for study and development of a regional cardiac hospital network.

TOTAL REDIRECTION LEVEL--$1,098,162,845

The Merit System normally does not receive any state funds, but has an authorized spending level set by the Appropriations Act from income generated through merit assessments from other state agencies, from employer/employee health insurance contributions and from deferred compensation investments. The state agency merit assessments are applied to classified and unclassified service positions, and fund only the expense of furnishing the base level of personnel services to state agencies.

74

DEPARTMENT OF NATURAL RESOURCES*

F.Y. 1998 STATE APPROPRIATIONS

$91,294,956

F.Y. 1997 AMENDED STATE APPROPRIATIONS

$104,967,909

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

,

$97,990,864

ADmSTED BASE--$91 ,327,527

FUNDS TO REDIRECT--($3,011,357)

($430,000)

Decreases state funds by increasing park revenue due to anticipated growth from the opening of new facilities.

($344,000)

Reduces state funds in Wildlife Resource's Game Management Branch through the increase offederal Pittman-Robertson funds.

($291,391)

Reduces state support of the Georgia Agricultural Exposition Authority due to growth in revenue from the Georgia National Fair and other events held at the facility and due to excess reserves being generated by growth in authority revenues.

($281,296)

Shifts funding offour positions in the Environmental Protection Division's Air Protection Branch associated with the Vehicle Inspection and Maintenance Program from state funds to other funds and eliminates one position by discontinuing air quality monitoring for paIiiculates at rock quarries.

($225,542)

Eliminates two positions in EPD's Land Protection Branch and one position in EPD's Hazardous Waste Branch in low priority programs.

($193,071)

Eliminates two positions in Wildlife Resources' Law Enforcement Branch and one position in the Game Management Branch, and removes state funds for the construction of a shooting range on the Horse Creek Wildlife Management Area (WMA) in Telfair County.

($147,079)

Eliminates four positions in EPD's Water Resources Branch and discontinues laboratory testing for certain contaminants not found in Georgia's public water systems.

($136,442)

Removes two positions and related expenses in Coastal Resources.

($116,745)

Closes the Arrowhead Public Fishing Area (PFA) in Floyd County and the Baldwin Forest PFA in Baldwin County, eliminating two wildlife technician positions.

($115,771)

Consolidates the Manchester Law Enforcement District with the Macon Law Enforcement District and eliminates one captain position.

($111,000)

Reduces state funds in per diem, fees and contracts in the Pollution Prevention Assistance Division.

($101,213)

Eliminates the annual payment to the Institute of Community and Area Development at the University of Georgia.

*Govemor Miller vetoed $3,900,000 in state funds from the F.Y. 1998 appropriation to the Department of Natural
Resources, and these funds have been deleted from the appropriation shown above. See Editor's Notes for more details.

75

DEPARTMENT OF NATURAL RESOURCES

($100,000)

Removes two maintenance and construction positions in Parks, Recreation and Historic Sites.

($75,000)

Privatizes golf course maintenance at Hard Labor Creek State Park and George 1. Bagby State Park and eliminates 10 positions.

($66,550)

Consolidates the Waycross Law Enforcement District with the Metter Law Enforcement District and eliminates one captain position.

($61,237)

Removes one accounting position from the Program Support Division.

($59,375)

Returns responsibility for the Coleman River WMA in Rabun County to the U. S. Forest Service and discontinues state operation of the Dyal Pasture WMA in Appling County.

($45,672)

Shifts funding of a wildlife biologist position in Wildlife Resources' Nongame-Endangered Wildlife Program from state funds to federal and other funds.

($40,000)

Discontinues state payment of shipping charges for delivery of hunting and fishing license to dealers.

($28,053)

Eliminates one position in EPD's Geologic Survey Branch by restructuring the publications sales office.

($27,310)

Reduces hours of operation and removes one position at Traveler's Rest Historic Site in Stephens County.

($13,960)

Reduces the Historic Preservation Division's contract payment for Regional Preservation Planning Services and eliminates funds for an intern.

($650)

Reduces state support of the Georgia Boxing Commission from $6,650 to $6,000.

ADDITIONS--$2,978,786

$1,368,000

Provides funds for EPD to develop and establish adequate total maximum daily pollution loads (TMDL) for Georgia's rivers and streams and adds five positions in Wildlife Resources to conduct stream surveys. A federal court issued a ruling ordering the establishment ofTMDLs for Georgia's streams within five years.

$366,926

Increases hourly wages for day laborers throughout the department and reduces personal services lapse.

$350,000

Funds the second phase of repairs and maintenance for Rhodes Memorial Hall.

$259,187

Adds one position and related expenses to operate the conference center at Georgia Veterans Memorial State Park in Crisp County.

$200,000

Provides funds for Parks, Recreation and Historic Sites to contract with the Department of Corrections for detainee crews used on maintenance and construction projects.

$150,000

Provides funds to build two cabins and picnic tables at George L. Smith State Park in Emanuel and Chandler Counties.

$106,000

Adds funds to convert the hunting and fishing license selling system from the DOAS based computer system to Wildlife Resources' recently updated computer system.

76

DEPARTMENT OF NATURAL RESOURCES

$75,000 $40,000

Provides funds to allow the Attorney General's Office to do title work on the north end of Sapelo Island to fully document the State of Georgia's ownership of all property on Sapelo Island outside the Hog Hammock Community.
Adds funds to annualize a part-time naturalist at Grand Bay WMA in Lanier and Lowndes Counties.

$38,673

Adds funds needed by the Historic Preservation Division to be able to pay the real estate rental on existing office space in the Healy Building.

$25,000

Adds funds for equipment at Fort King George Historic Site in McIntosh County.

TOTAL REDIRECTION LEVEL--$91 ,294,956

Wooden trail winds through the Stephen C. Foster State Park. 77

DEPARTMENT OF NATURAL RESOURCES

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$6,977,045

$7,619,541

Increases funding for the HWTF for total funding of $17,900,013 to finance the clean-up of hazardous waste sites not covered under federal laws.

$250,000

Provides funds to build four additional cabins at Seminole State Park in Seminole County using prison labor.

$200,000

Adds funds for the development of offshore artificial reefs.

$200,000

Provides $150,000 for emergency repairs to the two ferries used to transport visitors to Sapelo Island and $50,000 to purchase a used trash compactor truck for use on Sapelo Island.

$100,000

Adds funds for a reserved group shelter at Lake Richard B. Russell State Park in Elbert County.

$40,000

Provides funds to conduct a feasibility study for a water supply and recreation reservoir on Shellstone Creek in Bleckley County.

$40,000

Adds funds for a master plan to be done on the new Chattahoochee River State Park in Hall County.

$20,000

Adds funds for a part-time naturalist at Grand Bay WMA in Lanier and Lowndes Counties.

($96,730)

Reflects a decrease in agency self-insurance rates of $90,500 for the Department of Natural Resources and $6,230 for the Georgia Agricultural Exposition Authority.

($1,395,766)

Reduces funding for the Solid Waste Trust Fund for total funding of$5,396,990 to implement a scrap tire clean-up and regulatory program.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $10,525,000 in bonds that relate to the Department of Natural Resources and $1,725,000 in bonds that relate to the Jekyll Island-State Park Authority for F. Y. 1998 and $1,700,000 in bonds that relate to the Georgia Agricultural Exposition Authority and $685,000 in bonds that relate to the Department of Natural Resources for F.Y. 1997.

78

DEPARTMENT OF PUBLIC SAFETY

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$115,353,569 , $117,294,352 , $117,313,223

ADJUSTED BASE--$115,885,721

FUNDS TO REDIRECT--($2,503,474)

($1,371,167) Shifts trooper vehicle refueling away from 48 underground storage tanks to retail outlets.

($431,333)

Outsources data entry on 750,000 traffic citations resulting in the elimination of five positions and 13 contract employees. This proposal saves $228,833 annually.

($297,739)

Streamlines the operations ofthe Public Safety Training Center by eliminating seven security positions ($233,010) and one conference center position ($64,729).

($294,473)

Reduces funds in various object classes in the Firefighter Standards and Training Council ($19,663), the Peace Officer Standards and Training Council ($72,500), the Public Safety Training Center ($186,133), and the Office of Highway Safety ($16,177).

($54,403)

Reduces contract funds for the Fire Academy's Industrial Fire Program to meet projected demand.

($54,359)

Reduces one instructor position associated with the Community Oriented Policing program in the Georgia Police Academy.

ADDITIONS--$I ,971 ,322

$1,400,000

Provides for gasoline purchases for trooper vehicles from retail outlets. The department will close its 48 underground storage tanks.

$202,500

Provides funds to outsource data entry work for 750,000 traffic citations at a cost of $.27 per citation. Contracting this function results in annual savings of $228,833.

$180,252

Increases personal services to fund three positions transferred to the Public Safety Training Center to manage and administer the Peace Officers Training Contracts.

$153,570

Provides funding to deliver a high liability basic training course in Emergency Vehicle Operations. The course will be taught at the Georgia Public Safety Training Center in coordination with the regional and local academies.

$35,000

Increases funds for hearing expenses ($12,705) and for other operating costs ($22,295) of the Peace Officer Standards and Training Council.

TOTAL REDIRECTION LEVEL--$115,353,569

79

DEPARTMENT OF PUBLIC SAFETY

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($18,871)

$148,780

Provides funding for three positions and two vehicles transferred to the Public Safety Training Center to coordinate basic training delivered by the regional and local academies.

($99,651)

Reflects a decrease in self-insurance rates for the department ($90,930) and for the attached agencies ($8,721).

($68,000)

Reduces funding for regular operating expenses in the department's budget.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for infonnation about $1,970,000 in bonds that relate to the Department of Public Safety for F.Y. 1997.

80

PUBLIC SERVICE COMMISSION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$8,482,241 $8,247,316 $8,487,316

ADJUSTED BASE--$8,653,662

FUNDS TO REDIRECT--($420,888)

($246,073)

Reduces per diem, fees and contracts.

($174,815)

Reallocates two positions ($116,417) and reduces operating expenses ($58,398).

ADDITIONS--$249,467

$107,173

Provides funding for the reassignment of one position to the Administration Division and one position to the Utilities Division.

$60,000

Funds three additional vehicles.

$52,294

Increases funds for seven replacement vehicles and operating expenses. (Total funds -- $146,906.)

$30,000

Allows for the purchase of a photocopy machine.

TOTAL REDIRECTION LEVEL--$8,482,241

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($240,000)

$60,000

Adds funds for computer equipment and training.

($300,000)

Reduces funding for per diem, fees and contracts ($190,000) and personal services ($110,000).

81

REGENTS, UNIVERSITY SYSTEM OF GEORGIA

F.Y. 1998 STAlE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$1,465,335,169 $1,420,427,770 $1,391,745,182

ADJUSTED BASE--$1,387,530,595 (state general funds only) The adjusted base includes $69,138,510 to provide funds for an average six percent merit salary increase for University System employees, effective July 1, 1997 for nonacademic personnel and September 1, 1997 for academic personnel.

FUNDS TO REDIRECT--($69,144,326)

($58,000,000) Redirects funds from low priority academic programs, administrative support and other support areas.

($2,170,636)

Reduces Special Initiative Funding to enhance graduate programs and library holdings at Georgia Southern University ($886,562) and Valdosta State University ($883,062), and other initiatives ($401,012).

($1,910,116)

Eliminates funding for low priority and discontinued research projects at the Agricultural Experiment Stations.

($1,769,920)

Reduces fimding for administrative staff and support positions, and eliminates funding for 20 Family and Consumer Science agents.

($1,574,000) Eliminates 29 positions at Talmadge Memorial Hospital.

($1,214,586) Reduces funds to the Georgia Public Telecommunications Commission (GPTC).

($507,658)

Moves funds for Georgia Tech Center for Continuing Education to "A" Unit.

($323,000)

Reduces personal services and per diem fees and contracts at Regents' Central Office.

($316,540)

Reduces funding at the Joint Board of Farnily Practice.

($315,403)

Reduces funding at the Georgia Tech Research Institute.

($233,200)

Reduces personal services in the Dalton and Savannah offices of the Economic Development Ins.tltute and eliminates funding for the "Signs of Growth" publication.

($103,000)

Eliminates one position at the Warner Robins office of the Advanced Technology Development Center.

($99,015)

Reduces research funding and personal services at the Veterinary Medicine Experiment Station.

($81,002)

Reduces personal services at the Skidaway Institute of Oceanography.

($74,475)

Reduces funding for biosensor research in the Agriculture Technology Research Program.

($70,000)

Reduces funding for the State Loan Repayment program at the State Medical Education Board.

($67,972)

Reduces personal services at the Marine Extension Service.

($56,143)

Reduces supplies and materials at Georgia Military College.

($48,850)

Reduces personal services and operating costs at the Marine Institute.

82

($45,382)
"
($37,216) ($31,781) ($26,388) ($19,417) ($19,038)
($15,000) ($14,588)

REGENTS, UNIVERSITY SYSTEM OF GEORGIA
Reduces funding for ratite research and animal care at Veterinary Medicine Agricultural Research. Reduces personal services and supplies at the Center for Rehabilitation Technology. Eliminates the Georgia Tech Continuing Education course catalog. Reduces funding for supplies and materials at the Veterinary Medicine Teaching Hospital. Reduces technical support for silviculture in Forestry Research. Reduces funding for personal services and operating expenses for the Student Education Enrichment program. Reduces funding for the Minority Suppliers Directory. Reduces marketing funds at the Center for Rehabilitation Technology, Inc.

ADDITIONS--$65,224,648

$58,000,000

Provides funds for high priority academic programs consistent with the mission, and direct instruction and services to students at the institution level.

$1,574,000

Provides for the support of graduate medical education at Talmadge Memorial Hospital.

$60,000
$55,000
$50,000 SREB
Rank 6th $45,150
$45,000

University System of Georgia Average Faculty Salary

SREB
Rank 6th
$47,309

SREB
Rank3rd
$50,060

SREB
Rank3rd

SREB
Rank 2nd
$56,248

$40,000

1994

1995

D Average Faculty Salary

1996

1997

1998

Fiscal Years

m Projected Faculty Salary

83

REGENTS, UNIVERSITY SYSTEM OF GEORGIA

$1,289,613

Expands and develops high priority research projects at the Agricultural Experiment Stations.

$1,122,725

Provides additional fimdingfor the Cooperative Extension Service for renovation of 4-H camp facilities, technology initiatives, horticulture and emerging crops research, and a Center for Agriculture and Economic Development..

$633,150

Provides for the GPTC satellite dish maintenance program at education facilities statewide.

$456,969

Provides fimding to GPTC to support training and staffdevelopment for K-12 distance learning materials.

$323,000

Provides funds for strategic planning and P-16 initiatives in Regents' Central Office.

$233,200

Provides fimds for the Local Impact Modeling program and lean manufacturing programs at the Economic Development Institute.

$224,442

Provides for the purchase of equipment for the remote monitoring of transmitter operations at GPTC.

$210,000

Provides additional fimds to support the pediatric residency capitation program at the Joint Board of Family Practice.

$194,419

Provides additional operating expenses to GPTC for the new production facility.

$190,000

Creates five engineer positions at PeachStar Production Studios and at the Fernbank Science Center.

$100,000

Establishes a law enforcement technology program at the Georgia Tech Research Institute.

$83,000

Provides fimds for the New Internet Enterprise Development project and for a small business investor network at the Advanced Technology Development Center.

$81,002

Provides fimding for distance learning at Skidaway Institute of Oceanography.

$78,827

Provides personal services and operating fimds at the Veterinary Medicine Experiment Station.

$74,000

Provides personal services fimding to the Agricultural Technology Research program to establish an electronic interface with food processors.

$70,000

Provides funds to repay student medical education debts at the State Medical Education Board.

$67,972

Provides personal services fimding at the Marine Extension Service.

$56,143

Provides funding for supplies and materials at Georgia Military College.

$51,804

Provides personal services funding for the Advanced Wood Products Laboratory at the Center for Rehabilitation Technology.

$45,382

Provides funds to upgrade and modernize animal care facilities in the Veterinary Medicine Agriculture Research program.

$40,000

Provides funds for travel, Internet access, equipment and GSAMS development at the Marine Institute.

$25,000

Provides funds for the digital medical records system at the Veterinary Medicine Teaching Hospital.

TOTALREDIRECTIONLEVEL--$1,383,61O,917

84

REGENTS, UNIVERSITY SYSTEM OF GEORGIA

ENHANCEMENT FUNDS

$23,509,822

For fonnula related increases, including a 1.7 percent enrollment increase and increases in other operating costs.

$8,500,000

Provides additional support for the Major Repair and Renovation Fund.

$3,985,000

Provides research funding for the Traditional Industries program.

$2,000,000

Provides funding for two eminent scholars and the Technology Development Investment program associated with the Georgia Research Alliance.

$1,850,000

Provides funding for the Partners in Success Initiative, including a mentoring program ($680,000), gifted and talented high school programs at State University of West Georgia and Middle Georgia College ($800,000), a prognostic math test ($220,000), and a P-16 database ($150,000).

$1,000,000

Provides funding for the Intellectual Capital Partnership Program to develop a centralized database ($250,000), to develop additional computer related instructional offerings ($250,000), and to address regional economic development needs ($500,000).

$1,000,000

Provides repair and maintenance funds for Talmadge Memorial Hospital.

$550,000

Provides facility master plans at nine institutions and the Skidaway Institute of Oceanography.

$507,658

Moves funds for the Georgia Tech Center for Continuing Education to the "A" Unit.

$500,000

Provides funding for an endowed chair at the Rosalyn Carter Institute for Caregiving at Georgia Southwestern State University.

$500,000

Provides funds to develop a doctorate ofeducation program at Fort Valley State University in conjunction with the University of Georgia.

$413,100

Provides funds for facility renovation for an Advanced Wood Products Laboratory at the Center for Rehabilitation Technology.

$389,000

Provides support for the Internet Connectivity Project.

$386,000

Increases funding for grants tt'l Mercer and Morehouse Schools of Medicine.

$359,000

Provides planning and design funds for the restoration of the Old Governor's Mansion at Georgia College and State University.

$345,000

Provides increased funding for Forestry Research.

$260,000
I
$250,000

Provides carrot packaging equipment at the University of Georgia. Provides funds to increase research on cottonseed meal, feed grains and vegetables.

$200,000

Provides funds for the Central Savannah River Area Business League.

$150,000

Provides funds for teacher training in agricultural education between the College of Education and the College of Agriculture and Environmental Science at the University of Georgia.

85

REGENTS, UNIVERSITY SYSTEM OF GEORGIA

$150,000

Provides for the construction of a facility at Georgia Military College.

$140,000 $105,000

Provides funds for the Advanced Technology Development Center and the Economic Development Institute to assist in the development of an Advanced Food Technology Center at the Genesis FoodPark in Thomasville.
Provides funds for track construction and equipment at Middle Georgia College.

$90,000

Provides funds for a swine specialist at the Cooperative Extension Service in Tifton.

$80,000 $47,250

Provides funds to annualize a position at Georgia State University. Provides funds for a maintenance position at the Marine Extension Service.

$20,000

Provides for an increase in Medical Scholarships to $10,000 with the State Medical Education Board.

($2,200,000) Decreases funding available for Chancellor's Special Funding Initiatives.

TOTAL ENHANCEMENT FUNDS (state general funds)--$45,086,830

Artist's rendering ofthe Children's Medical Center under construction at the Medical College ofGeorgia
86

REGENTS, UNIVERSITY SYSTEM OF GEORGIA

STATE LOTTERY FUNDS

ENHANCEMENT FUNDS

$15,000,000 Provides funding for the Equipment, Technology, and Construction Trust Fund.

$7,100,000

Provides continuing support for the following special initiative projects: GALlLEO ($1,600,000), Connecting Teachers and Technology ($5,000,000), and Connecting Students and Services ($500,000).

$6,454,422

Provides funds for Internet connectivity for all education institutions and public libraries.

$3,000,000

Provides funds to upgrade the technology infrastructure of all institutions.

$1,500,000

Provides funds for the purchase ofeducational programs and the development of elementary school foreign language programs at GPTC.

TOTAL ENHANCEMENT FUNDS (lottery funds)--$33,054,422

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $3,455,000 in bonds that relate to the Regents, University System of Georgia for F.Y. 1998.

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$28,682,588

$24,000,000 Provides lottery funds to the Georgia Research Alliance for equipment, facilities and research.

$2,200,000

Provides construction funds for five new research facilities to the Georgia Research Alliance.

$2,050,000

Provides equipment funding for three research facilities and three eminent scholars.

$750,000

Provides funds for an eminent scholar at Mercer University.

$250,000

Provides funds for the construction of a multi-purpose and storage facility at the Bull Evaluation Center in Irwinville.

$100,000

Provides funds to publish a resource guide to social and economic history of Georgia women and distribute to all schools.

$21,750

Adjusts funding to the Southern Regional Education Board.

$20,000

Adjusts funding for Georgia State University.

($36,180)

Adjusts funding for the Institute for Community Business Development.

($71,750)

Adjusts personal services funding for the Joint Board of Family Practice.

($601,232)

Reflects a reduction in self-insurance rates.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $143,095,000 in bonds that relate to the Regents, University System of Georgia for F.Y. 1997.

87

RETIREMENT SYSTEMS
EMPLOYEES' RETIREMENT SYSTEM
A budget of $4,382,732 is authorized for the administration of the Employees' Retirement System. However, no state funds are appropriated for this purpose. The system operates on income from investments.

PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$15,110,000 $14,212,500 $14,212,500

ADJUSTED BASE--$14,212,500

ENHANCEMENT FUNDS

$897,500

Adds funding to increase the state contribution from $9.25 to $9.50 per participant to provide an increase in benefits.

TOTAL ENHANCEMENT FUNDS -- $897,500

TEACHERS' RETIREMENT SYSTEM

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$4,070,000 $4,130,000 $4,130,000

ADJUSTED BASE--$4,130,000

FUNDS TO REDIRECT -- ($60,000)

($60,000)

Adjusts the floor fund to local system retirees.

TOTAL REDIRECTION LEVEL--$4,070,000

In addition, a budget of$7,012,683 is authorized for the administration of the Teachers' Retirement System. However, no state funds are appropriated for this purpose. The system operates on income from investments.

88

DEPARTMENT OF REVENUE

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$96,358,751 $110,143,485
$95,717,904

ADJUSTED BASE--$94,334,980

FUNDS TO REDIRECT--($3,128,897)

($1,500,000) Reflects a reduction in billing rates by DOAS for computer charges based on prior use.

($560,000)

Reduces postage ($15,000) and computer charges ($545,000) associated with the intangible tax program that was repealed during the 1996 legislative session.

($275,000)

Reduces expenditures for mainframe disk space storage.

($243,897)

Reduces various object classes based on projected expenditures.

($200;000)

Reflects a savings in telecommunications expenses by sharing the cost of lines in county tax commissioners' offices with the Secretary of State's voter registration program.

($130,000)

Reflects a reduction in DOAS telecommunications data network charges based on projected expenditures.

($125,000)

Replaces 33 telecommunications data circuits connecting to the DOAS Data Center with a single fiber optic line.

($95,000)

Eliminates an increase in DOAS telecommunications costs with the installation of an in-house interactive voice response system.

ADDITIONS--$5,152,668

$4,902,668

Continues the implementation of the "Blueprint for Modernization" program to improve the department's management and information systems. The chart on the following page lists the projects that have been included in the initial phase.

$250,000

Funds a satellite imagery system to assist counties in mapping forest changes to monitor compliance with the timber harvest tax.

TOTAL REDIRECTION LEVEL--$96,358,751

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$14,425,581

$14,454,832

Provides funding to implement the first phase ofthe department's modernization effort. An additional $700,000 was provided in the Office of Planning and Budget to enhance tax modeling research capabilities. The funding provides for 12 projects recommended as a result of an in-depth and comprehensive analysis of the department's operations to identify opportunities for improvement and to prepare the department for the 21st century. hnplementing these recommendations will provide the citizens of Georgia with a Revenue Department capable of administering the state's tax, tag and title laws in the most accurate, fair and cost-effective manner. Transforming the department into a more efficient and effective organization requires a substantial initial investment; however, this investment

89

($29,251)

DEPARTMENT OF REVENUE
will pay for itself in the short term by ensuring that the proper amount of taxes are paid and collected. The projects included in the fIrst phase of the "Blueprint for Modernization" are shown in the chart below.
Reflects a reduction in agency self-insurance rates.

Department of Revenue "Blueprint for Modernization"

Total Appropriation $19,357,500

Projects Funded

F.Y. 1997 Amended

1. Modernization Management Unit

192,000

2. Sales Tax System

950,000

3. Electronic Processing/Imaging

220,000

4. Motor Vehicle Modernization

1,397,332

5. Accounts Receivable (Agency Funds)

6. Tax Policy Research ($700,000 in the Office of Planning and Budget)

7. Tax Compliance Research

485,000

8. Integrated Tax Administration System

1,538,000

9. Strategic Information Technology Planning

650,000

10. Quality Assurance

675,000

11. Year 2000

8,347,500

12. Other Systems Investments

F.Y.1998 902,668
4,000,000

TOTAL

14,454,832

4,902,668

90

OFFICE OF SECRETARY OF STATE

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$31,087,511 $30,876,731 $30,746,948

ADJUSTED BASE--$31 ,404,317

FUNDS TO REDIRECT--($1,115,711)

($529,986)

Reflects savings from a change in the State Examining Boards' examination contract, reduction in operating expenses, and elimination ofthree inspectors.

($218,019)

Eliminates the funding for postage on precinct cards sent to voters.

($114,615)

Reallocates two positions and operating expenses due to a change in the auditing procedure of Perpetual Care Trust Accounts.

($100,406)

Transfers the responsibility ofnotary public function to the Clerk's Cooperative Authority, eliminating one position and operating expenses.

($64,285)

Redirects operating expenses from the Drugs and Narcotics Agency ($45,000) and the State Ethics Commission ($19,285).

($64,000)

Eliminates two positions in the Corporations Division due to the use of a new telephone system.

($24,400)

Redirects funding in the Corporations Division due to a change in the handling of lawsuit filings.

ADDITIONS--$798,905

$451,986

Provides funding for the State Examining Boards' operating expenses.

$114,615

Reassigns two positions to handle investigations of investment advisors.

$100,000

Increases computer charges for the statewide voter registration system.

$50,000

Adds one position for the Office of State Archeologist.

$45,000

Adds one new agent to the Drugs and Narcotics Agency to handle increasing workload.

$19,285

Provides additional operating funds for the State Ethics Commission.

$18,019

Allows for the purchase of one vehicle for the Elections Division.

TOTAL REDIRECTION LEVEL--$31,087,511

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$129,783

$120,000

Provides additional funding to administer grants to local governments for records archiving.

$25,000

Adds funds to the Holocaust Commission to sponsor the Anne Frank in the World exhibit.

($15,217)

Reflects a decrease in agency self-insurance rates.

91

STATE SOIL AND WATER CONSERVATION COMMISSION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$2,132,890 $2,122,473 $2,122,473

ADmSTED BASE--$2, 174,418

FUNDS TO REDIRECT--($168,913)

($110,500)

Eliminates five positions as part of the continuing phase out of the County Conservation Grant Program. This reduces the program to 20 positions and $186,500.

($33,091)

Reduces various object classes including: personal services ($729), regular operating expenses ($13,806), computer charges ($4,945), travel ($5,900), real estate rentals ($770), telecommunications ($991), equipment ($80) and per diem, fees and contracts ($5,870).

($25,322)

Decreases the motor vehicle purchases object class.

ADDITIONS--$127,385

$52,290

Funds one position ($30,498), one motor vehicle ($13,534) and related expenses ($8,258) for the second year funding of the Resource Specialist Program. This position will be located in the commission's Statesboro regional office.

$48,262

Reflects funding for six computers ($26,376) and networking expenses ($21,886) for each of the commission's six regional offices.

$26,833

Increases personal services ($10,947), regular operating expenses ($12,682), equipment ($204) and travel ($3,000).

TOTAL REDIRECTION LEVEL--$2, 132,890

See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $1,495,000 in bonds that relate to the State Soil and Water Conservation Commission for F. Y. 1997.

92

GEORGIA STUDENT FINANCE COMMISSION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$208,845,430

,

$193,851,016

,

$192,146,016

ADJUSTED BASE--$200,349,156 ($32,751,304 state general funds, $167,597,852 state lottery funds)

STATE GENERAL FUNDS

FUNDS TO REDIRECT--($1,642,475)

($994,941)

Continues phasing out the Student Incentive Grant program.

($613,925)

Reduces funding for the Guaranteed Educational Loan program.

($33,609)

Reduces personal services and operating expenses for the Georgia Nonpublic Postsecondary Education Commission.

ADDITIONS--$1,654,475

$1,608,866

Increases Guaranteed Educational Loans to initiate a pilot program providing service-cancelable loans for computer programmers under the Intellectual Capital Partnership Program (ICAPP).

$45,609

Increases personal services and operating expenses and provides for a motor vehicle for the Georgia Nonpublic Postsecondary Education Commission.

TOTAL REDIRECTION LEVEL--$32,763,304

ENHANCEMENT FUNDS

$811,513

Provides for a projected enrollment increase in the Tuition Equalization Grant program for students enrolled in eligible private colleges.

$451,493

Provides the total annual funding required for the ICAPP pilot project.

$78,368

Funds total projected enrollment in the North Georgia Military Scholarship program.

$25,000

Increases contracts for the Georgia Nonpublic Postsecondary Education Commission.

$22,000

Adds funds for a projected increase in enrollment in the Law Enforcement Personnel Dependents Grant program.

$15,625

Increases the North Georgia College ROTC Grant program to fund the total projected enrollment.

TOTAL ENHANCEMENT FUNDS--$1,403,999

STATE LOTTERY FUNDS

ENHANCEMENT FUNDS

6,180,275

Provides another chance to earn a HOPE Scholarship to students enrolled in public and private colleges who have a "B" grade point average after 45 quarter hours.

93

GEORGIA STUDENT FINANCE COMMISSION

$900,000

Creates a service-cancelable loan program for students enrolled in Mercer University=s engineering program.

TOTAL ENHANCEMENT FUNDS (state lottery funds)--$7,080,275

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM THE ORIGINAL BUDGET--$1,705,000

LOTTERY FUNDS

$2,705,000

Increases HOPE Tuition Equalization Grants funding for eligible Georgians enrolled in participating private colleges.

($1,000,000)

Reduces funding for the Promise Scholarship program based on revised enrollment estimates for the year.

140,000 120,000 100,000

Lottery Scholarships Awarded
by Fiscal Year

105,249

121,593

125,475

80,000

60,000

40,000

43,374

_ _I

20,000

;

1994

1995

1996

1997

Projected

131,031
1998 Projected

94

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION*

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$231,621,569 $296,714,080 $258,033,726

ADWSTED BASE--$217,850,025 (state general funds only). The adjusted base includes $9,774,186 to provide a six percent increase for teachers and to provide from zero percent to seven percent salary increases for non-teachers in conformance with the GeorgiaGain pay for performance system.

STATE GENERAL FUNDS

FUNDS TO REDIRECT--($7,601,115)

($5,268,771)

Eliminates instructional and non-instructional positions and reduces contracts for services at the state technical institutes. Program reductions are aimed at courses with low student demand.

($1,040,000) Reduces adult literacy grant funds.

($922,052)

Eliminates 10 instructional and five non-instructional positions at area technical institutes.

($171,618)

Reduces central office expenditures by eliminating two positions and reducing computer charges.

($146,095)

Eliminates one instructional and two non-instructional positions in vocational programs in Regents' colleges.

($52,579)

Reduces Public Library Services' administrative costs.

ADDITIONS--$1 0,421,548

$4,927,150

Provides funds to annualize the cost of opening new facilities in F. Y. 1997, including adding 234 instructional and non-instructional equivalent full-time positions at state technical institutes. The new facilities include Athens-Elbert County satellite, Augusta-McDuffie County satellite, Ben Hill-IrwinCoffee County satellite, Chattahoochee-Paulding County satellite, Coosa Valley-Gordon County satellite, DeKalb-Covington satellite, Lanier-Forsyth County satellite, Macon-Milledgeville satellite, Moultrie-Tift County satellite, and Middle Georgia, Thomas and Walker technical institutes.

$1,643,539

Adds 177 new full-time equivalent positions and operating costs for facilities under construction and scheduled to open in F. Y. 1998, including facilities at Albany-Early County satellite, Altamaha-Appling County satellite, Coosa Val1ey-Polk County satellite, N0I1h Georgia-Union County satel1ite, South Georgia-Crisp County satellite, Heart of Georgia-Eastman satellite, and retrofits at Chattahoochee, North Georgia and Thomas technical institutes.

$1,126,540

Funds the first year of Atlanta Tech's two-year conversion to state management.

*Governor Mil1er vetoed $8,950,000 in state funds from the F. Y. 1998 appropriation to the Depm1ment of Technical and Adult Education, and these funds have been deleted from the appropriation shown above. See Editor's Notes for more details.
95

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

$1,040,000

Flll1ds the fma1261iteracy teachers to complete the phase-in of a plan to have at least one full-time adult literacy teacher in each of Georgia's 159 counties.

$613,433 $515,200

Provides partial year operating costs for the 101 public library systems not already connected to the PeachNet and GALILEO systems. Information on funding for hardware and software for this project may be fOlll1d in the section on Regents, University System of Georgia.
Flll1ds the first year of Savannah Tech's two-year conversion to state management.

$331,489

Funds the operating costs to link all technical institutes to PeachNet and GALILEO. Information on funding for hardware and software for this project may be found in the section on Regents, University System of Georgia.

$171,618

Provides funding for two positions and computer charges to create a Literacy Information System.

$52,579

Supports a consultant to review options for the replacement of the GENESIS computer system in the public libraries.

TOTAL REDIRECTION LEVEL (state general funds)--$220,670,4S8

ENHANCEMENT FUNDS

$4,349,611

Provides the remaining funds needed to annualize the cost of opening new facilities in F. Y. 1997 (see the first item under Additions).

$440,000

Flll1ds the operation of a Dental Hygiene program at Columbus Tech being transferred from Columbus State.

$300,000

Provides funds for water and sewer connections for the Heart of Georgia Technical Institute.

$250,000

Provides planning funds for an Automated Manufacturing Technology facility at South Georgia Tech.

$170,000

Provides funding for an LPN program at the Camilla facility of Thomas Tech.

TOTAL ENHANCEMENT FUNDS (state general funds)--$S,S09,6ll

STATE LOTTERY FUNDS

$3,500,000

Replaces obsolete instructional equipment system-wide.

$1,040,000

Provides computer laboratories and software along with satellite downlinks to access distance learning programming for the 26 new adult literacy teachers.

$901,SOO

Purchases computers and printers for public libraries.

TOTAL ENHANCEMENT FUNDS (lottery funds)--$S,441 ,SOO

96

DEPARTMENT OF TECHNICAL AND ADULT EDUCATION

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$38,680,354

$1,296,880

Increases state funds for the Quick Start program to accommodate the increased level of project activity occurring this year.

$452,054

Adjusts state funding for public librarians based on changes in education credentials and years of service.

$250,000

Funds equipment for the Camilla Adult Leaming Center of Thomas Tech.

$100,000 $100,000 $50,000 ($52,150)

Funds a dental hygienist training program at Athens Tech. Provides funds to plan and design a Polytechnical Center at Altamaha Tech in Jesup. Provides funds for equipment for the Telfair County Adult Leaming Center of Ben Hill-Irwin Tech. Reflects a decrease in agency self-insurance rates.

($400,000)

Reduces adult literacy grants funding initially allocated to pay the cost of first-time GED test fees.

($1,268,588) Reduces funds due to delays in opening dates for facilities scheduled to open in F.Y. 1997.

LOTTERY FUNDS

$20,648,000

Provides lottery funds to construct a technical institute satellite facility for Augusta-Burke County ($5 million), a regional business and industry training center for Heart of Georgia-Dublin ($6,948,000), a new classroom building for Ogeechee Technical Institute ($5,500,000) and phase two of Coosa ValleyGordon County satellite ($3,200,000).

$9,749,158

Purchases equipment for institutes scheduled to open in June or July 1997, including Athens-Elbert County satellite, Augusta-McDuffie County satellite, Macon-Milledgeville satellite, Moultrie-Tift County satellite and Thomas Technical Institute.

$6,255,000 $1,500,000

Funds equipment for satellite facilities opening in F. Y. 1998 including Albany-Early County satellite, Altamaha-Appling County satellite, Coosa Valley-Polk County satellite, Hem1 of Georgia-Eastman satellite, Lanier-Forsyth County satellite, North Georgia-Union County satellite and South Georgia-Crisp County satellite.
Replaces obsolete instructional equipment system-wide.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for infol111ation about $10,905,000 in bonds that relate to the Department of Technical and Adult Education for F.Y. 1997.

97

DEPARTMENT OF TRANSPORTATION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$542,507,217 $542,478,959 $542,896,193

ADJUSTED BASE--$540,858, 155

FUNDS TO REDIRECT--($34,401,692)

($25,000,000) Eliminates motor fuel funding in Planning and Construction fo', the Governor's Road Improvement Program.

($2,816,995)

Reduces motor fuel funds in Maintenance and Betterments for personal services, including the elimination of 70 positions plus related costs that are assigned to grading crews and asphalt paving functions ($2,116,995) and forfeited/terminal leave ($700,000).

($2,621,876)

Reduces motor fuel funds in Maintenance and Betterments for per diem, fees and contracts for underground storage tank mitigation and clean-up.

($2,208,785)

Reduces motor fuel funds in Planning and Construction for per diem, fees and contracts, including a reduction in consultant contracts for design and preparation of plans for roadslbridges ($685,460), service contracts for the Advanced Traffic Management System ($511,500), transportation studies and other related special studies ($511,825), and elimination of service contracts for the staking-utility program ($500,000).

($700,000)

Reduces motor fuel funds in Facilities and Equipment for capital outlay, including $450,000 for underground storage tank replacement and $250,000 for projects related to federal disability laws.

($413,406)

Reduces motor fuel funds in Administration for personal services, including the elimination of four positions plus related costs ($364,404) and funding for computer charges ($40,000) and other object classes ($9,002).

($371,255)

Reduces motor fuel funds in Planning and Construction for personal services, including the elimination ono positions plus related costs that are assigned to testing drill crews, quality control testing functions and construction projects that will be phased out.

($138,305)

Reduces state funds in Intermodal Transfer Facilities for grants to local governments for transit capital

programs by five percent based on anticipated federal funding.

.

($114,580)

Reduces state funds in Intermodal Transfer Facilities for grants to local areas for airport development projects by five percent ($63,375), and airport approach aids and operational improvements by five percent ($51,205).

($16,490)

Reduces state funds in Air Transportation for training under per diem, fees and contracts ($5,286) and decreases forfeitedlterminalleave payments ($11,204).

ADDITIONS--$35,950,754

$17,000,000

Increases motor fuel funds in Planning and Construction to fund projects of greatest need and special economic development needs throughout the state.

$7,000,000

Increases motor fuel funds in Planning and Construction to recapitalize the four-Ianing and multi-1aning program.

98

$4,218,000 $3,870,000 $1,951,552 $1,182,997
$554,794 $292,000

DEPARTMENT OF TRANSPORTATION
mcreases motor fuel funds in Administration for the first-year development of a Transportation fuformation System that is to be phased in over a five-year implementation schedule.
mcreases motor fuel funds in Maintenance and Betterments for regular operating expenses.
Provides motor fuel funds in Maintenance and Betterments to contract for maintenance and operations for statewide rest areas.
Provides motor fuel funds in Plannning and Construction for regular operating expenses, including motor vehicle expenses ($ I9,697), repairs and maintenance ($ I50,820), printing and rents ($32,6 I6) and equipment purchases less than a $ 1,000 ($979,684).
Provides motor fuel funds in the Facilities and Equipment function for major equipment purchases.
mcreases motor fuel funds in Planning and Construction for computer charges.

Artist's rendering ofnew Sidney Lanier Bridge that will expand access to state ports at Brunswick.
99

DEPARTMENT OF TRANSPORTATION

$211,100

Provides motor fuel funds in Administration for regular operating expenses, including supplies and materials ($28,700), repairs and maintenance ($49,100), printing and other operating expenses ($13,250), and equipment purchases with less than a $1,000 unit price ($120,050).

$135,700

Provides motor fuel funds in Maintenance and Bettelments for telecommunications.

$80,000

Increases state general funds for routine maintenance of the Savannah Harbor dikes.

$73,440

Increases in motor fuel funds for all other object classes.

$64,846

Provides state general funds in Intermodal Transfer Facilities for grants to local areas for airport development projects ($35,867) and airport approach aids and operational improvements ($28,979).

($25,000)

Replaces state funds with an increase in aircraft receipts revenue.

($58,675)

Replaces state funds with agency funds to fund one position with the Georgia 400 Tollway Authority.

($100,000)

Replaces state funds with permits and enforcement revenues to fund DOAS computer charges related to programming.

($500,000)

Increases in other funds revenue from pelmits and overweight assessment fees.

TOTAL REDIRECTION LEVEL--$542,407,217

ENHANCEMENTS FUNDS

$100,000

Provides state general funds for the lease purchase of an aircraft.

TOTAL ENHANCEMENT FUNDS--$1 00,000

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($417,234)

$1,846,127

Increases state general funds to supplant the shortfall in actual collections of motor fuel taxes in F. Y. 1996.

$200,000

Increases state general funds in equipment purchases to provide the initial payment for an aircraft. The department is trading in a Citation I aircraft for a more advanced Citation II aircraft and will use the $200,000 as a down payment as part of the transaction.

($50,000)

Reduces state funding for the Georgia Rail Passenger Authority.

($567,234)

Reduces state general funds to reflect a decrease in agency personal liability insurance rates ($564,324) and agency self-insurance rates ($2,910).

($1,846,127)

Reduces motor fuel funds in the capital outlay object class to reflect the shortfall in actual collections of motor fuel taxes inF.Y. 1996.

See the section on "State of Georgia General Obligation Debt Sinking Fund" for infOlmation about $15,000,000 in bonds that relate to the Department of Transportation for F. Y. 1998 and about $134,700,000 in bonds for F. Y. 1997.

100

DEPARTMENT OF VETERANS SERVICE

F.Y. 1998 STATE APPROPRIATIONS

,

F.Y. 1997 AMENDED STATE APPROPRIATIONS

F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$19,795,288 $20,268,189 $21,567,780

ADmSTED BASE--$21 ,362,561

FUNDS TO REDIRECT--($1,938,783)

($983,395)

Revises the privatization contract cost for the Georgia War Veterans Home in Milledgeville.

($490,504)

Reduces state funds to reflect a projected increase in federal funds.

($459,521)

Reduces funds by privatizing, outsourcing and reducing staff at the Georgia War Veterans Nursing Home in Augusta effective January 1, 1998.

($5,363)

Reduces personal services, regular operating expenses, and projects and insurance to reflect projected expenditures.

ADDITIONS--$371 ,51 0

$211,612

Repairs and renovates various buildings at the Georgia War Veterans Home in Milledgeville.

$86,640

Replaces irreparably damaged hospital beds and purchases automated bathing systems for patients at the Georgia War Veterans Home in Milledgeville.

$46,691

Increases regular operating expenses to cover projected increases in patient care at the Georgia War Veterans Nursing Home in Augusta.

$17,048

Provides additional operating funds for various object classes.

$9,519

Provides additional computer funds to permit direct access to the federal Department of Veterans Affairs database.

TOTAL REDIRECTION LEVEL--$19,795,288

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS

NET CHANGE IN FUNDING FROM ORIGINALBUDGET--($1,299,591)

$198,871

Provides funds to construct a memorial to WorId War I veterans.

($3,767)

Reflects a decrease in agency self-insurance rates.

($1,494,695)

Adjusts per diem, fees and contracts to reflect savings resulting from the privatization of the Georgia War Veterans Home in Milledgeville and early contract implementation.

101

STATE BOARD OF WORKERS' COMPENSATION

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$10,918,457 $10,702,701 $10,702,701

ADWSTED BASE-- $10,996,606

FUNDS TO REDIRECT--($621,906)

($601,906)

Eliminates nine positions and supporting costs. Positions include six court reporters, one legal assistant, one fiscal officer and one section chief.

($20,000)

Reduces per diem, fees and contracts funding for the Fraud and Compliance Division based on historical expenditures.

ADDITIONS--$543,757

$175,455

Increases personal services and supporting costs to add one position in the Data Processing Section to provide technical support and guidance and software development.

$145,313

Adds three positions and supporting costs in the Alternate Dispute Resolution Unit of the Legal Division to mediate and resolve claims before trial.

$122,674

Adds two positions and supporting costs in the Fraud and Compliance Division to increase random and complaint compliance checks and investigations offraud and abuse.

$100,315

Increases personal services and supporting costs due to the increasing volume of claims, including one position in the Claims Processing Division and one position in the Licensure and Quality Assurance Division.

TOTAL REDIRECTION LEVEL--$1 0,918,457

102

STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND*

F.Y. 1998 STATE APPROPRIATIONS F.Y. 1997 AMENDED STATE APPROPRIATIONS F.Y. 1997 ORIGINAL STATE APPROPRIATIONS

$393,727,614

,

, $621,465,791

, $414,482,451

EXISTING OBLIGATIONS--$384,526,935.

ENHANCEMENT FUNDS--$9,200,679. These funds include debt service for the following new issues (listed by department and authority). Ofthis amount, Governor Miller vetoed the authorization of $3,207,245.

Georgia Building Authority

$1,850,000

Authorizes $20,000,000 in 20-year bonds to continue the renovation of the #2 Peachtree Building, including $8,000,000 to renovate the #2 Peachtree Annex for use by the Georgia State University School of Public Policy.

$462,500

Authorizes $5,000,000 in 20-year bonds for the remediation, removal and replacement of underground and above ground storage tanks.

Department of Children and Youth Services

$186,388

Authorizes $2,015,000 in 20-year bonds to renovate various YDC cottages and RYDCs.

$146,150

Authorizes $1,580,000 in 20-year bonds to construct a 25-bed housing unit at the Macon YDC.

Department of Corrections

$159,563

Authorizes $1,725,000 in 20-year bonds for environmental projects at various prisons.

Department of Human Resources

$141,570

Authorizes $605,000 in 5-year bonds to design a 196-bed forensic facility at Central State Hospital.

* Governor Miller vetoed the authorization of $23,460,000 ($16,130,000 in 20-year bonds and $7,330,000 in 5-year
bonds) from the FY 1998 appropriation for the Department of Education ($7,330,000), the Georgia Ports Authority ($5,900,000), the Board of Regents ($1,280,000), and the Department of Technical and Adult Education ($8,950,000).
The funds had been authorized as follows: $7,330,000 in 5-year bonds to purchase equipment for new and modified vocational high school laboratories; $600,000 in 20-year bonds to continue the ongoing environmental impact study at the Ports Authority and $4,000,000 in 20-year bonds for engineering design for harbor deepening; $1,300,000 in 20-year bonds for repairs and equipment at the Bainbridge Ports Terminal; $1,280,000 in 20-year bonds for the planning and design of a classroom building for Augusta State University; $3,600,000 in 20-year bonds for the renovation ofbuildings at North Georgia Technical Institute in Habersham County; $2,500,000 in 20-year bonds for the repair and construction of an Adult Literacy Center in Tumer and library expansions in Bryan, Dodge, Henry, Jeff Davis, and Union Counties; $2,400,000 in 20-year bonds for the renovation and conversion of facilities to classrooms at South Georgia Technical Institute in Sumter County; $50,000 in 20-year bonds for a library for the City ofAragon and $400,000 in 20-year bonds for a library expansion project at the Chatham-Effmgham Regional Library in Chatham County.
103

STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND

Jekyll Island-State Park Authority

$159,563

Authorizes $1,725,000 in 20-year bonds for capital improvements to the Historic District on Jekyll Island.

Department of Natural Resources

$925,000

Authorizes $10,000,000 in 20-year bonds to acquire land under the River Care 2000 program.

$37,000

Authorizes $400,000 in 20-year bonds for Tybee beach restoration.

$29,250

Authorizes $125,000 in 5-year bonds to repair 125 feet ofbulkhead near the Meridian Dock residence.

Board of Regents, University System of Georgia

$508,950

Authorizes $2,175,000 in 5-year bonds to purchase equipment for the Governor's Traditional Industries research projects.

Department of Transportation

$1,387,500

Authorizes $15,000,000 in 20-year bonds for the four-laning program.

NEW AMOUNT OF BOND PRINCIPAL AUTHORIZED FOR ISSUANCE IN F.Y. 1998

20-year bonds

$57,445,000

5-year bonds

$ 2.905.000

Total

$60,350,000

State matchingfunds allocated to renovate the Sapelo Island Lighthouse. 104

STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND

AMENDED F.Y. 1997 BUDGET HIGHLIGHTS
EXISTING OBLIGATIONS--$574,713,451. The appropriation reflects a net increase of $160,231,000 due to an addition of $157, 172,440 to pre-fund obligations due in F.Y. 1998 and an addition of $3,058,560 for actual principal and interest on all issued debt. In addition, $6,670,825 from bonds previously authorized and issued for the Johnson CI expansion ($3,000,000), the Barrow County Detention Center ($1,800,000), and the design ofthree prisons ($1,870,825) are being redirected for roofmg projects at various prisons of the Department of Corrections. An additional $9,200,000 from bonds previously authorized and issued for the Emmanuel, McIntosh, Sumter and Muscogee YDC projects are being redirected for the following Department of Children and Youth projects: $3,000,000 for classroom facilities at Eastman YDF; $1,900,000 for a dining facility at Bill E. Ireland YDC; $1,520,000 for various water and sewer projects at Augusta YDC ($1,240,000) and Lorenzo Benn YDC ($280,000); $1,000,000 for a 25-bed addition at Metro RYDC; and $1,780,000 for fencing, safety and security systems and emergency generators at various YDCs and RYDCs.

ENHANCEMENT FUNDS--$46,752,340. These funds include debt service for the following new issues (listed by department and authority):

Department of Agriculture

$178,000

Authorizes $2,000,000 in 20-year bonds for improvements to the Atlanta Farmer's Market.

$44,500

Authorizes $500,000 in 20-year bonds for an addition to the Atlanta Farmer's Market. This is a payback project with debt service to be repaid from assessments made on the affected tenant's lease.

Georgia Agricultural Exposition Authority

$151,300

Authorizes $1,700,000 in 20-year bonds for land acquisition, renovation and landscaping at the Agricultural Exposition Center in Perry.

Georgia Building Authority

$1,221,080

Authorizes $13,720,000 in 20-year bonds to continue renovations at the State Capitol.

$525,100

Authorizes $5,900,000 in 20-year bonds for the renewal of Plaza Park.

$404,950

Authorizes $4,550,000 in 20-year bonds to renovate all floors and major mechanical systems at 244 Washington Street.

$267,000

Authorizes $3,000,000 in 20-year bonds for Americans with Disabilities Act modifications.

Department of Children and Youth Services

$1.263,800

Authorizes $14,200,000 in 20-year bonds to construct a 150-bed YDC in Sumter County.

$370,755

Authorizes $1,605,000 in 5-year bonds for various repair and renovation projects, including $1,005,000 for electrical, HVAC and security systems and $600,000 for repaving projects.

Department of Corrections

$446,985

Authorizes $1,935,000 in 5-year bonds for security projects at various prisons.

$222,500 $42,720

Authorizes $2,500,000 in 20-year bonds for minor construction projects at various prisons. Authorizes $480,000 in 20-year bonds for the food distribution unit and farm projects.

105

STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND

The ADA-accessible comfort station at Vogel State Park is a prototype for stations being built at various parks throughout the state.

State Board of Education

$8,707,315

Authorizes $97,835,000 in 20-year bonds as follows: $27,420,000 to 12 school systems for regular entitlements; $33,115,000 to 13 systems for regular advanced funding; $16,300,000 to four systems for incentive advanced funding; $21,000,000 to four systems for the balance of the F.Y. 1997 incentive advanced funding.

Georgia Environmental Facilities Authority

$1,780,000

Authorizes $20,000,000 in 20-year bonds to provide low interest loans to local governments for water, sewer, and wastewater treatment projects.

Georgia Bureau of Investigation

$292,365

Authorizes 3,285,000 in 20-year bonds to construct a replacement laboratory building for the Columbus Branch Crime Lab.

$57,405

Authorizes $645,000 in 20-year bonds to construct a morgue/autopsy facility adjacent to the Macon Branch Crime Lab.

Department of Human Resources

$1,552,320

Authorizes $6,720,000 in 5-year bonds for repairs and renovations at various facilities statewide including $1,520,000 for safety and regulatory requirements; $4,590,000 for HVAC systems; $345,000 for floor coverings; and $265,000 for miscellaneous projects.

$178,445

Authorizes $2,005,000 in 20-year bonds for various projects including $260,000 for major renovation projects; $195,000 for electrical replacement; $170,000 for roofmg projects; and $1,380,000 for water, sewer and plumbing projects.

106

STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND

Department of Industry Trade and Tourism

$115,500

Authorizes $500,000 in 5-year bonds for facility improvements at the Savannah and Tallapoosa state visitor information centers.

Department of Natural Resources

$65,835

Authorizes $285,000 in 5-year bonds to equip the conference center at the Georgia Veterans State Park.

$34,650

Authorizes $150,000 in 5-year bonds to provide a state match for the renovation of the Sapelo Island lighthouse and for construction of the Brasstown Trek trail.

$22,250

Authorizes $250,000 in 20-year bonds for a sewerage system at the Georgia Veterans State Park.

Georgia Ports Authority

$2,473,310

Authorizes $27,790,000 in 20-year bonds for the following projects (repayments for debt service will begin after construction is completed): $8,700,000 to extend Berth 13 and related infrastructure at Ocean Terminal; $5,790,000 to construct a steel framed Transit Shed adjacent to Berth 13; $13,300,000 for two container cranes for Container Berth 7 at Garden City Terminal.

Department of Public Safety

$137,060

Authorizes $1,540,000 in 20-year bonds to design and construct a training facility for the Department of Children and Youth Services at the Georgia Public Safety Training Center.

$99,330

Authorizes $430,000 in 5-year bonds to repair the Fire Academy Bum Building.

Board of Regents, University System of Georgia

$10,368,055

Authorizes $116,495,000 in 20-year bonds as follows: $8,755,000 to construct a student services building and health education classrooms at Macon College; $27,260,000 for phase II of a manufacturing related disciplines complex at Georgia Institute of Technology; $6,060,000 for a student services/physical education building at Waycross College; $4,305,000 for a music education building at Clayton College and State University; $7,885,000 for renovation and an addition to Walker Hall Classroom building and Dublin Center at Middle Georgia College; $13,305,000 for a physical education facility at Columbus State University; $5,815,000 for a student center at Atlanta Metropolitan College; $2,000,000 for flood recovery at Albany State University; $4,975,000 to construct phase II of a central utility plant at Augusta State University; $1,100,000 to renovate auilding C at DeKalb College; $4,800,000 to renovate Herty Hall at Georgia College and State University; $1,750,000 to renovate Payne Hall at Savannah State University; and $1,200,000 for Rock Eagle sewage and water system improvements; $655,000 for an addition to a maintenance building at Clayton College and State University; $4,965,000 to renovate the science/math building at Darton College; $3,380,000 to renovate the old science building for the School ofNursing at Kennesaw State University; $4,585,000 to renovate the Dugas Building for a pediatrics lab at Medical College of Georgia; $1,700,000 to purchase an oceanographic vessel for Skidaway Institute of Oceanography; $4,200,000 to retrofit a library ventilation system at the University of Georgia; $3,300,000 to construct a special education, speech/language pathology building at Valdosta State University; and $4,500,000 for the Old Capitol building renovations at Georgia Military College.

107

STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND

$890,000

Authorizes $10,000,000 in 20-year bonds to construct a North Campus parking deck at the University of Georgia. This is a payback project with the debt service to be repaid from the parking receipts of the parking deck.

$534,000

Authorizes $6,000,000 in 20-year bonds to construct a replacement laboratory building for the Athens Veterinary Diagnostic Laboratory.

$436,100

Authorizes $4,900,000 in 20-year bonds for Learning Center classrooms at East Georgia College.

$275,900

Authorizes $3,100,000 in 20-year bonds for the Continuing Education and Cooperative Extension Facility at Georgia Southern University.

$195,800

Authorizes $2,200,000 in 20-year bonds for the following Governor's Traditional Industries projects at the University of Georgia: $1,900,000 to renovate pilot plant and research facilities at the Food Science and Technology Building and $300,000 for a new Industry Interface Center.

$35,600

Authorizes $400,000 in 20-year bonds to acquire land at Georgia Southwestern State University.

State Soil and Water Conservation Commission

$133,055

Authorizes $1,495,000 in 20-year bonds for structural upgrades to Category 1 dams.

Department of Technical and Adult Education

$801,000

Authorizes $9,000,000 in 20-year bonds to continue a multi-year repairs and renovations program at various facilities statewide.

$440,055

Authorizes $1,905,000 in 5-year bonds to purchase equipment for renovated facilities.

Department of Transportation

$11,125,000 $356,000

Authorizes $125,000,000 in 20-year bonds for the Governor's Road Improvement Program.
Authorizes $4,000,000 in 20-year bonds for a feasibility study of a commuter rail line from Macon to Atlanta contingent upon an 80:20 federal to state match.

$284,800

Authorizes $3,200,000 in 20-year bonds for dike construction and improvements for the Savannah Harbor.

$222,500

Authorizes $2,500,000 in 20-year bonds for rail acquisition.

NEW AMOUNT OF BOND PRINCIPAL AUTHORIZED FOR ISSUANCE IN F.Y. 1997 AMENDED

20-year bonds (new) 20-year bonds (payback)
5-year bonds

$451,900,000 $ 38,290,000
$ 13,530,000

Total

$503,720,000

108

BOND PAYMENTS AS A PERCENTAGE* OF NET TREASURY RECEIPTS FOR PRIOR FISCAL YEARS

YEAR 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981

PERCENTAGE 11.3 10.9 10.4 10.8 10.6 8.8 7.9 8.4 7.3 6.8 7.0 7.6 7.6 6.9 4.6 4.3 4.4

YEAR

PERCENTAGE

1982

5.0

1983

5.8

1984

6.1

1985

6.8

1986

6.8

1987

6.4

1988

6.9

1989

5.7

1990

5.7

1991

5.0

1992

5.0

1993

5.8

1994

5.9

1995

5.4

1996

5.5

1997

5.1

1998 (Est.)

5.3

*The maximum percentage allowed by the current state Constitution is 10 percent.

109

BOND PAYMENTS AS A PERCENTAGE* OF NET TREASURY RECEIPTS FOR PRIOR FISCAL YEARS

YEAR 1965 1966 10.4 10.8 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981

PERCENTAGE 11.3 10.9 1984 1985 10.6 8.8 7.9 8.4 7.3 6.8 7.0 7.6 7.6 6.9 4.6 4.3 4.4

YEAR

PERCENTAGE

1982

5.0

1983

5.8

6.1

6.8

1986

6.8

1987

6.4

1988

6.9

1989

5.7

1990

5.7

1991

5.0

1992

5.0

1993

5.8

1994

5.9

1995

5.4

1996

5.5

1997

5.1

1998 (Est.)

5.3

*The maximum percentage allowed by the current state Constitution is 10 percent.

109