The State Lottery's gift to Georgia students since 1994--~in school improvements. HOPE Scholarships -- $875,000,000 Pre-Kindergarten -- $928,000,000 Technology -- $609,000,000 ..i n1 School Construction --$601,000,000 STATE OF GEORGIA Fiscal Year 1999 BUDGET IN BRIEF FISCAL YEAR 1999 (INCLUDES AMENDED F.Y. 1998 BUDGET HIGHLIGHTS) ZELL MILLER, GOVERNOR Director of the Budget TIM BURGESS, DIRECTOR Office of Planning and Budget CONTENTS Governor's Introduction 4 SUMMARIES Estimated State Revenues, Appropriations and Reserves 10 State Appropriations by Agency 11 Total Appropriations by Fund Source Fiscal Year 1999 12 Total Appropriations by Fund Source Fiscal Year 1998 Amended 13 Current Revenues 14 A History of Revenues 15 Current Appropriations 16 A History ofAppropriations 17 F.Y. 1999 Lottery Appropriations 18 Lottery Reserves 19 Total Expenditures by Object Class 20 Revenue Shortfall Reserve 21 Budget Highlights 22 Editor's Notes 33 LEGISLATIVE BRANCH General Assembly 35 Department ofAudits 35 JUDICIAL BRANCH 36 EXECUTIVE BRANCH Department of Administrative Services 37 Department ofAgriculture 39 Department of Banking and Finance 41 Department of Community Affairs 42 Department of Corrections 45 Department of Defense 48 State Board of Education 49 State Forestry Commission 54 Georgia Bureau of Investigation 55 CONTENTS Office of the Governor 56 Department ofHuman Resources 58 Department of Industry, Trade and Tourism 64 Office of Commissioner of Insurance 66 Department of Juvenile Justice 67 Department ofLabor 71 Department ofLaw 72 Department ofMedical Assistance 73 Merit System ofPersonnel Administration 76 Department of Natural Resources 78 Department of Public Safety 82 Public Service Commission 84 Regents, University System of Georgia 85 Retirement Systems 92 Employees' Retirement System 92 Public School Employees' Retirement System 92 Teachers' Retirement System 92 Department of Revenue 93 Office of Secretary of State 95 State Soil and Water ConserVation Commission 97 Georgia Student Finance Commission 98 Department of Technical and Adult Education 100 Department of Transportation 104 Department of Veterans Service 107 State Board of Workers' Compensation 108 State of Georgia General Obligation Debt Sinking Fund 109 State Debt as a Percentage of Net Treasury Receipts 116 INTRODUCTION MY FELLOW CITIZENS: The end of an Administration is a time to look back and sum up the accomplishments of an entire time in office. I like what I see. For those readers interested in details of budget actions at the 1998 legislative session, the Budget Highlights starting on page 22 amply provide that information. This Introduction is a reflective look at the overall impact of eight years of one Governor's spending priorities. The proudest achievement of my Administration has been the large amount of increased funding for education. Over my eight years as Governor, we have put an additional $3.1 billion into education, increasing the total to $7,067,963,618. The state's entire budget did not reach that milestone until F.Y. 199O-the year before I took office. While the entire state budget increased 60.2% during my Administration, the education budget skyrocketed by 78.4%. Education's portion of the budget has soared to 56.4% of total state spending from 50.7% in the original F.Y. 1991 budget that I inherited. It has been decades since education's budget was that high a percentage. The state lottery, which I implemented with legislative and voter approval, is partially responsible for the large increases in state spending. Since the first lottery funds were appropriated in F.Y. 1994, the lottery has pumped $3.013 billion into education. But we have increased state general funding for education at the same time. Putting a more vigorous emphasis on education has been a broad-based commitment. The above numbers indicate that we have accomplished what we set out to do. Large increased spending without a plan or accountability does not necessarily translate into classroom improvement, which is our first and paramount goal. We had a plan when I took office, and that plan has been followed. With lottery funds, we had two important goals-to launch a voluntary pre-kindergarten program for four-year-old children and to provide scholarships to students who maintain high grades. 4 INTRODUCTION Pre-kindergarten has been successful beyond my dreams. We will be serving 61,000 children in that program at an annual cost of almost $218 million in the 1998-99 school year. Pre-kindergarten is important because it will make a major difference in future years by preparing children to perform at a higher achievement level, the ultimate goal of education. HOPE scholarships are unique to Georgia. No other state has such a program. President Clinton likes the program so much he has proposed a national scholarship program based on HOPE, which stands for Helping Outstanding Pupils Educationally. The scholarship provides free college tuition with a book allowance for students who graduate from a Georgia public or private high school with a "B" average. Any high school graduate can attend a technical institute on a HOPE scholarship. Many worthy students are now getting a post-high school education--eourtesy of HOPE-who could not have afforded it previously. The $218 million budget for F.Y. 1999 will provide scholarships for approximately 160,000 students. In total, more than 305,000 students have already gone to college on a HOPE scholarship. Funding pre-kindergarten and HOPE scholarships only would have made the Georgia Lottery a treasure for education. But lottery funds have been sufficient to appropriate $606 million on technology and $601 million on school construction in six years. The technology expenditures will have a major impact on education in the coming years. With these funds, we have placed computers, satellite dishes and other information technology in the classrooms of Georgia, including public schools, colleges and universities, and technical institutes. We have created training centers and allocated funding to help train teachers so they can use technology to raise student achievement. We have linked all of the libraries of our 34 colleges and universities and are taking the final steps towards allowing any student in the University System to use the resources of all libraries at all institutions. All public libraries are also being linked to the Internet and to GALILEO, an educational database. A marvelous opportunity will be available for every student when the full technology thrust is finished. The funding is in place, and the full range of services should be in operation in the near future. The most effective way to improve education is to put better teachers into the classrooms. And the best way to do that is to increase salaries at a faster pace in order to attract more higher-qualified teachers. Over the last term of my Administration, we have pursued that goal by giving teachers in the public schools, colleges and universities, and technical institutes 6% pay raises for each of four straight years. The results have been gratifying. Our goal for public school teachers was to increase their average salary to be competitive with the average salary nationally, and we have done that. Based on projections, Georgia teachers will move to the top of the salary range throughout the entire South this year. Our goal now is to keep them there. For our University System faculty, our goal was to move their salaries to number one among the institutions that comprise the Southern Regional Education Board. That goal will be reached in F.Y. 1999. In contrast, the average pay of University System faculty members at 4-year institutions ranked only seventh among SREB states in 1992. I had one other major goal for the University System-a larger building program to cope with the significant increases in the number of students attending Georgia's 34 colleges and universities in recent 5 INTRODUCTION decades. We implemented a regular annual program many years ago to meet the needs of our K-12 public schools, but our higher education facilities had not kept pace with a rising enrollment. An appropriation of $206,925,000 for University System construction at the 1998 session increased total spending on new buildings for the system during my Administration to $1,052,367,090. Georgia has added about 750,000 jobs since I took office. One reason for my focus on education is to make sure that Georgia workers have the quality education required for highly skilled jobs. There is one other component of the educational delivery system that is important in providing job skillstechnical institutes. In a rapidly changing workplace, the type of technical training provided by the state is becoming more and more important. I felt this area of education needed a significant boost, including increased operating money and an expansion of facilities to keep pace with a climbing enrollment both in full-time and part-time students. To fulfill those needs, I have increased the budget of the Department of Technical and Adult Education from $127 million to $271 million, a climb of 112 percent. And the department has been provided $215 million for capital improvement needs. In an effort to better serve students, we have opened 17 new satellite centers. Every Georgian now has access to technical education within reasonable driving distances. I am constantly dismayed by the number of Georgians who are illiterate or semi-literate. It is a problem that handicaps our economic development efforts. In my first budget, I focused on this problem and have continued to expand on new adult literacy initiatives in every budget since then. We have increased the adult literacy budget by $10,962,190. And among our many actions has been to locate at least one adult literacy teacher in every county of Georgia. In F.Y. 1999 we funded 110 part-time adult literacy teachers to improve the delivery of community literacy services. One of the highest priorities for the state, other than education, is economic development. A vibrant economy provides a higher standard of living for all citizens. In searching for new approaches to a long-time priority, I thought we should involve the vast research capabilities ofthe University System in this effort. We have done that-and the results are gratifying. These efforts have been concentrated in two directions--ereation of the Georgia Research Alliance to pioneer new ways to spur high-quality, high-tech economic growth, and an initiative to improve the competitiveness of Georgia's traditional manufacturing industries. The Research Alliance embraces all six of Georgia's major research universities-public and private--in a unique partnership with each other and with the private sector. The Alliance conducts practical applied research that will boost industry in the areas of telecommunications, bioengineering and environmental technology. Since the Alliance was launched during F.Y. 1993, the state has invested over $200,000,000 in its programs. The state has spent $44,412,000 on behalf of 3 traditional manufacturing industries-pulp and paper, textile and apparel, and food processing. 6 INTRODUCTION Transportation is a central ingredient of a strong economic development plan. Improved highways around the state are fundamentally important to locating industry and business, especially to boost the rural and small community economies. The Governor's Road Improvement Program (GRIP) is the state tool for building a better transportation system. During my Administration, the state allocated just slightly more than one billion dollars to continue work on the 2,479-mile-long system. This funding will allow construction of about 560 miles-23 percent of the entire GRIP program-based on the cost of construction today. Another key element of economic development is a strong ports program for exporting products throughout the world, and to create a market beneficial to Georgia for importing foreign-made products. We have budgeted $221,314,000 for port construction, launched construction of a new, higher bridge to open the Brunswick Harbor to the tallest ships, and taken initial steps towards deepening both the Savannah and Brunswick deepwater ports. There are two new initiatives from the 1998 legislative session that are important in any summary of economic development efforts during the 1990s. One is the new alliance between the Department of Industry, Trade and Tourism and the Department of Community Affairs to staff state development teams with a responsibility of promoting regional and rural development. The other is a $35,350,000 program to upgrade and improve 27 general aviation airports in Georgia so that people anywhere in the state will be within a 45-minute drive of a top level general aviation airport. As most Georgians realize, the Atlanta metropolitan area has been the largest growth area in Georgia and one of the largest nationally during the nation's economic surge since World War II. More emphasis is needed to help the remaining areas of Georgia to share in the' continuing growth. This new alliance, hopefully, will accomplish that goal. One of the most important budget actions of my Administration had nothing to do with increased spending. Indeed, it had the opposite impact-reducing state spending for welfare. The action was to abolish the old welfare entitlement system and replace it with a new program called TANF (Temporary Assistance for Needy Families). Even before TANF, however, we were dealing with the problems of increasing welfare dependency. In the late 1980s and early 1990s, welfare enrollment soared to a peak of 143,489 families in August 1994. Then the momentum switched. Caseloads started dropping. The decrease accelerated with the implementation ofTANF on January 1, 1997, when the old welfare system was replaced with a system that provides temporary cash assistance. (a maximum of 4 years) while helping to prepare the recipients to find jobs. The average caseload in F.Y. 1999 is projected to be 85,117, a drop of 41 % in 5 years. Viewed another way, the drop of some 58,000 caseloads has the effect of reducing actual cash assistance payments by more than $100 million. These funds have been redirected to other programs within the Department of Human Resources and other departments. We have also slowed down the runaway Medicaid growth. In the 10 years before I took office, Medicaid increased 376 percent. It continued to increase at a more modest pace, but had climbed to more than $1.3 billion by F.Y. 1996. That's when we decided to put on the brakes. Through managed care and tougher fraud and abuse provisions, we have flattened out the Medicaid budget. The F.Y. 1999 budget has increased less than 3% in 3 years. 7 INTRODUCTION The protection of environmentally sensitive land has been a high priority of my Administration. Two programs have been created to purchase such land and place it under state protection-Preservation 2000 and River Care 2000. Preservation 2000 was created to protect 100,000 acres of woodland, forests and natural areas for future generations to enjoy. The goal was met in 1996 with 105,602 acres at 56 different locations purchased at a cost of $65 million in state bond funds, $3.3 million in other state and federal funds, $1.4 million in private donations, and gifts of land valued at more than $54 million. River Care 2000 was modeled on Preservation 2000. Launched in 1995, it has a goal of protecting and preserving the more than 70,250 miles of freshwater rivers and streams in Georgia. A total of $45.6 million has been committed to this program thus far from state, federal and private funds, with 9,964 acres purchased and other acreage under consideration. Of $20 million in F.Y. 1999 bond funds, $15 million has been earmarked for the Chattahoochee River Corridor. One of the fastest-rising budgets during the 1990s has been in Corrections. Since I took office, we have increased correctional spending by a total of $322.4 million, or 68 percent. This spending has allowed the prison population to expand from 24,386 beds to 45,103 beds during my Administration, making a record of 20,717 beds actually opened during my Administration. And 1,710 beds are in the pipeline for future opening, increasing total bed capacity to 46,813. The prison expansion was triggered by the sentencing of more criminals to prison as a result of a higher crime rate and tougher laws. This was also due to my decision to end early release of inmates from our prison system. Juvenile crime also became a serious problem in the early 1990s, and we were forced to start a major expansion program for juveniles sentenced to state facilities in 1995. When all new beds are in operation, we will have expanded juvenile facilities during my Administration from 1,457 beds to 4,081 beds. When I took office, the state was in a recession. Appropriations were higher than projected revenues and our reserves were empty. We cut revenue estimates by $944 million over a period of 3 years and abolished about 5,000 state jobs. As this Introduction attests, we worked our way out of that jam and have enjoyed a prosperous period since the recession ended. Although revenue growth has slowed in recent years on a percentage basis, we are still in very good shape due to the absolute growth in revenues, which should exceed $13 billion in F.Y. 2000, the first budget of my successor. I have managed the budget with the full intention of leaving a sound state government in place when I leave. The reserves-including the Midyear Adjustment Reserve, the Revenue Shortfall Reserve, and the two lottery reserves-are filled to a total of $577,297,717, based on F.Y. 1997 revenues. With total revenues expected to grow by 6% in F.Y. 1998, the reserves should be about $30 million higher than current levels when I leave office. All of the accomplishments that I have described have been possible while reducing taxes $831 million over the past 8 years. This includes the three largest tax cuts in Georgia's history within a 5-year time span. The third and final installment on the largest tax cut-abolishing the 4 cents sales tax on food for home consumption-goes into effect October 1, 1998. This reduction alone will amount to savings totaling more than $500 million to taxpayers when fully implemented. The latest tax cut-also the second largest-was approved by the 1998 General Assembly retroactive to January 1. It increases the standard exemption on income taxes for both taxpayers and dependents to $2,700 (the current exemption is $1,500 for taxpayers and $2,500 for dependents), and 8 INTRODUCTION raises the deduction for citizens over age 65 from $700 to $1,300. The increase in the standard exemption will impact 5.2 million Georgians, and the increased deduction for the elderly will affect 300,000 citizens. Since Georgia emerged from the recession of the early 1990s, its economy has been one of the most active in the nation. The following statistics tell the story: 1,008,000 new citizens since 1990, ranking Georgia fourth in total population growth and sixth in percentage growth. A projected 750,000 new jobs during my Administration. A 59.3% increase in total personal income since 1990, ranking Georgia sixth among all states. The per capita income of Georgians has now risen to 94% of the average American's income-the highest ever. This has been a great eight years for the people of Georgia. I am grateful that I was allowed to be a part of it. 9 ESTIMATED STATE REVENUES, APPROPRIATIONS AND RESERVES STATE FUND SOURCES SURPLUS State Funds Surplus Audited Lapses Lottery Surplus and Lapses TOTAL SURPLUS RESERVES Midyear Adjustment Reserve Motor Fuel Reserve TOTAL RESERVES REVENUES F.Y. 1998 revenue estimate - taxes and fees (After setting aside $115,000,000 for reserve requirements) F.Y. 1999 revenue estimate - taxes and fees (After setting aside $143,000,000 for reserve requirements) Lottery Proceeds Indigent Care Trust Fund TOTAL REVENUES GRAND TOTAL FUND SOURCES F.Y.1998 F.Y.1999 524,974,958 72,827,271 86,923,390 684,725,619 111,313,935 24,674,865 135,988,800 11,118,625,000 515,000,000 148,828,880 11,782,453,880 12,603,168,299 11,849,775,000 530,000,000 148,828,880 12,528,603,880 12,528,603,880 STATE FUND USES Appropriations Unappropriated surplus set aside for income tax cut Veto Surplus TOTALS 12,533,168,299 70,000,000 12,603,168,299 12,525,303,880 3,300,000 12,528,603,880 10 STATE APPROPRIATIONS BY AGENCY ORIGINAL FISCAL YEAR 1998 AMENDED FISCAL YEAR 1998 FISCAL YEAR 1999 LEGISLATIVE BRANCH General Assembly Department of Audits 27,168,900 20,156,774 27,168,900 20,214,774 27,801,978 23,148,583 JUDICIAL BRANCH 91,276,910 90,895,360 99,738,650 EXECUTIVE BRANCH Administrative Services, Department of Agriculture, Department of Banking and Finance, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, State Board of Employees' Retirement System Forestry Commission, State Georgia Bureau of Investigation Governor, Office of the Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Office of Commissioner of Juvenile Justice, Department of Labor, Department of Law, Department of Medical Assistance, Department of Merit System of Personnel Administration 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 Year 2000 Project 25,148,629 41,776,853 9,523,070 25,995,075 741,132,868 4,363,044 4,647,067,118 34,539,659 48,215,166 29,930,439 1,220,531,233 20,076,479 15,799,353 174,504,508 20,500,998 13,124,252 1,324,271,890 91,344,956 115,353,569 15,110,000 8,482,241 1,465,335,169 96,358,751 31,037,511 2,132,890 208,845,430 4,070,000 231,621,569 542,507,217 19,795,288 10,918,457 393,727,614 32,549,307 41,782,853 9,523,070 44,876,764 745,508,741 4,989,144 4,861,326,725 34,986,218 48,334,166 30,616,017 1,177,448,609 20,409,594 15,799,353 185,488,692 20,500,998 13,274,252 1,328,975,688 300,000 103,510,384 116,441,694 15,110,000 8,482,241 1,523,225,329 107,725,873 31,022,046 2,132,890 238,062,683 4,070,000 241,792,065 606,922,083 20,481,548 10,918,457 596,125,028 152,176,753 25,798,569 42,510,459 9,846,715 29,847,327 795,003,729 5,532,547 4,966,092,637 673,425 35,504,900 51,299,927 40,003,433 1,232,394,521 23,006,380 15,781,902 216,076,209 21,001,054 13,837,210 1,377,619,479 99,935,359 120,662,964 17,642,000 8,567,799 1,558,394,104 99,993,513 31,481,981 2,194,317 251,026,535 3,800,000 271,008,342 564,751,771 19,770,431 11,504,420 412,050,710 TOTAL STATE APPROPRIATIONS 11,771,743,880 12,533,168,299 12,525,303,880 11 TOTAL APPROPRIATIONS BY FUND SOURCE FISCAL YEAR 1999 DEPARTMENTS/AGENCIES TOTAL APPROPRIATION FEDERAL FUNDS OTHER FUNDS INDIRECT DOAS FUNDS LOTTERY PROCEEDS STATE FUNDS Legislative Branch Department of Audits Judicial Branch Department ofAdministrative Services Department of Agriculture Department of Banking and Finance 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 Juvenile Justice 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 27,801,978 23,148,583 102,001,900 158,523,437 50,274,692 9,846,715 62,787,779 814,825,432 21,956,332 5,474,737,381 5,256,499 40,649,878 51,299,927 48,074,098 2,417,340,849 23,006,380 17,241,858 222,244,354 153,334,941 31,690,201 3,860,747,295 1,241,283,705 134,731,938 124,582,210 17,642,000 11,403,969 2,796,644,806 101,526,968 32,526,981 2,385,717 251,026,535 11,501,170 342,014,134 1,214,776,428 28,117,135 11,694,420 412,050,710 0 32,940,452 1,500,000 16,423,785 508,644,744 822,000 1,184,946,328 6,168,145 132,333,887 2,483,127,816 32,284,616 31,241,579 3,919,246 2,836,170 29,477,361 191,400 71,005,792 650,024,657 8,346,704 2,263,250 132,724,868 7,764,233 18,321,703 4,583,074 4,322,978 8,070,665 1,459,956 17,852,991 1,208,999,089 3,555,000 1,208,773,34 I 1,533,455 1,045,000 7,701,170 190,000 450,000 340,000 5,720,100 258,082,689 27,801,978 23,148,583 99,738,650 25,798,569 42,510,459 9,846,715 29,847,327 794,553,729 5,532,547 4,707,669,948 673,425 35,504,900 51,299,927 40,003,433 1,226,674,421 23,006,380 15,781,902 216,076,209 21,001,054 13,837,210 1,377,619,479 200,000 1,650,000 3,583,000 3,845,000 26,685,000 2 I7,547,965 24,384,346 99,735,359 119,012,964 17,642,000 8,567,799 1,528,126,104 96,148,513 31,481,981 2,194,3 I7 33,478,570 3,800,000 246,623,996 564,751,771 19,770,431 11,504,420 412,050,710 TOTAL FUND SOURCES 20,350,699,335 5, I96,234,682 2,629,160,773 15,788,100 526,700,000 11,982,815,780 12 TOTAL APPROPRIATIONS BY FUND SOURCE FISCAL YEAR 1998 AMENDED DEPARTMENTS/AGENCIES TOTAL APPROPRIATION FEDERAL FUNDS OTHER FUNDS INDIRECT DOAS LOTTERY FUNDS PROCEEDS STATE FUNDS Legislative Branch Department of Audits Judicial Branch Department of Administrative Services Department of Agriculture Department of Banking and Finance 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 Juvenile Justice 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 27,168,900 20,214,774 92,801,946 181,536,795 49,514,646 9,523,070 77,402,216 763,727,250 18,838,214 5,4 I5,025,889 4,839,818 39,936,41 I 48,334,166 37,957,904 2,352,8 I6,855 20,635,594 17,206,008 190,990, I54 152,143,392 14,883,081 3,746,648,550 1,098,536,482 140,508, I90 120,316,21I 15,110,000 10,731,875 2,757,804,921 109,259,328 32,067,046 2,495,590 238,062,683 1I,888,195 312,397,857 1,230,149,944 28,730,884 11,108,457 596, I25,028 1,500,000 13,849,070 553,699, I64 822,000 I, I75,368,246 129,810,076 29,894,582 3,874,517 2,249,634 362,700 623,227,861 8,249,336 1,906,586 148,987,488 7,731,793 32,525,452 16,718,509 4,839,818 4,128,193 7,341,887 226,000 1,406,655 5,501,462 1,832,318 1,608,829 2,4 I7,672,862 1,098,236,482 7,103,224 1,234,579,592 1,533,455 1,045,000 7,818,195 70,605,792 190,000 450,000 340,000 357,532,088 6,032,000 200,000 1,650,000 3,583,000 3,845,000 35,054,422 203,895,380 5,441,500 27,168,900 20,214,774 90,895,360 32,549,307 41,782,853 9,523,070 44,876,764 745,058,741 4,989,144 4,503,454,637 34,986,218 48,334,166 30,616,017 1,171,416,609 20,409,594 15,799,353 185,488,692 20,500,998 13,274,252 1,328,975,688 300,000 103,310,384 114,791,694 15,110,000 8,482,241 1,484,587,907 103,880,873 31,022,046 2,132,890 34,167,303 4,070,000 236,350,565 606,922,083 20,481,548 10,918,457 596, I25,028 TOTAL FUND SOURCES 19,997,438,324 2,542,907, I86 5,073,539,592 16,100,000 601,923,390 11,762,968,156 13 In Percentages CURRENT REVENUES Income Tax 47% Indigent Care 1% Fees & Sales 4% Alcohol & Tobacco 2% In Total Dollars Sales Tax 33% Income Taxes Sales Tax - General Motor Fuel Tax - Gallons and Sales Alcohol and Tobacco Taxes Insurance Premium Tax Other Taxes Fees and Sales State Lottery Indigent Care Trust Funds Insurance Anti-Fraud Levies Total Collections Reserves Requirement Funds for Appropriations F.Y.1998 $5,558,000,000 $3,915,000,000 $565,000,000 $223,000,000 $214,000,000 $297,000,000 $461,000,000 $515,000,000 $148,828,880 $625,000 $11,897,453,880 ($115,000,000) $11,782,453,880 Other Taxes 2% Insurance Premium Tax 2% Lottery Proceeds 4% F.Y.1999 $6,060,000,000 $4,141,000,000 $577,000,000 $225,000,000 $216,000,000 $304,000,000 $469,000,000 $530,000,000 $148,828,880 $775,000 $12,671,603,880 ($143,000,000) $12,528,603,880 14 A HISTORY OF REVENUES (Millions) Fiscal Years Taxes and Fees Percent Increases Indigent Care Trust Funds Lottery Proceeds Total Revenues 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 1999 $ 493.7 551.5 617.3 672.4 739.9 833.1 951.5 1,001.9 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 7,258.2 7,356.2 8,249.9 8,906.5 9,625.7 10,446.2 11,131.4 11,233.6 11,992.8 $ 11.7 11.9 8.9 10.0 12.6 14.2 5.3 21.1 13.4 12.3 2.1 7.4 13.7 15.2 13.1 12.1 10.7 8.6 5.8 12.3 14.9 9.0 8.0 8.7 9.8 11.3 0.9 37.0 1.4 96.4 12.1 96.5 8.0 140.4 8.1 163.0 8.5 148.8 6.6 180.8 0.9 148.8 6.8 148.8 $ 362.4 514.9 558.5 593.6 515.0 530.0 $ 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 11,905.8 11,897.5 12,671.6 * The above revenue estimates for taxes and fees during fiscal years 1998 and 1999 include funds that have been set aside from expected gross revenues to fill reserves required by law. These funds--totalling $115,000,000 for F.Y. 1998 and $143,000,000 for F. Y. 1999--are not included elsewhere in this publication as funds available for expenditure. 15 CURRENT APPROPRIATIONS In Percentages Education Total 56.4% Board of Education 40% University System 12% All Others 12% Transportation 5% Corrections 6% In Total Dollars State Board of Education State Board of Regents Other Education Expenditures Total Education Human Resources Medicaid Corrections Transportation All Other Departments Total State Budget F.Y.1998 $4,861,326,725 $1,523,225,329 $499,034,748 $6,883,586,802 $1,177,448,609 $1,328,975,688 $745,508,741 $606,922,083 $1,790,726,376 $12,533,168,299 16 Other Education 4% Human Resources 10% F.Y.1999 $4,966,092,637 $1,558,394,104 $543,476,877 $7,067,963,618 $1,232,394,521 $1,377,619,479 $795,003,729 $564,751,771 $1,487,570,762 $12,525,303,880 A HISTORY OF APPROPRIATIONS Total Appropriation (millions) Percent Increase Fisca11964 Fisca11965 Fisca11966 Fisca11967 Fisca11968 Fisca11969 Fisca11970 Fisca11971 Fisca11972 Fisca11973 Fisca11974 Fisca11975 Fisca11976 Fisca11977 Fisca11978 Fisca11979 Fisca11980 Fisca11981 Fisca11982 Fisca11983 Fisca11984 Fisca11985 Fisca11986 Fisca11987 Fisca11988 Fisca11989 Fisca11990 Fisca11991 Fisca11992 Fisca11993 Fisca11994 Fisca11995 Fisca11996 Fisca11997 Fisca11998 Fisca11999 $ 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 12.533.2 12,525.3 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 6.3 (0.06) 17 F.Y. 1999 LOTTERY APPROPRIATIONS 219,347,965 Scholarships 41.65% 217,828,959 Pre-Kindergarten 41.36% 9,750,000 Capital Expenditure 1.85% 79,773,076 Technology & Training 15.15% E1Capital Expenditure OScholarships I1lPre-Kindergarten o Technology & Training 18 LOTTERY RESERVES Georgia's lottery laws require the establishment of two reserves that are funded as a percentage of lottery 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 10% 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 $54,323,390 on June 30, 1997. 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% a year until the reserve equals 50% of the amount of scholarship proceeds disbursed during the preceding year. Lottery surplus available at the end of F. Y. 1998 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, 1997 total as follows: Shortfall Reserve Subaccount $ 54,323,390 Scholarship Shortfall Reserve Subaccount 77,718,586 TOTAL LOTTERY RESERVES $132,041,976 19 TOTAL EXPENDITURES BY OBJECT CLASS HB 1167 AMENDED FISCAL YEAR 1998 HB 1250 FISCAL YEAR 1999 CHANGE AMOUNT PERCENT I. LEGISLATIVE BRANCH General Assembly Department of Audits 27,168,900 20,214,774 27,801,978 23,148,583 633,078 2,933,809 2.3% 14.5% II. JUDICIAL BRANCH 92,801,946 102,001,900 9,199,954 9.9% 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 4,181,887,173 461,679,103 20,668,210 11,652,903 22,261,691 148,749,866 53,157,217 39,735,713 472,118,962 699,309,273 4,353,042,001 450,694,484 21,526,565 16,473,431 23,333,805 136,778,782 51,863,062 36,037,872 634,508,460 716,425,144 171,154,828 (10,984,619) 858,355 4,820,528 1,072,114 (11,971,084) (1,294,155) (3,697,841) 162,389,498 17,115,871 4.1% -2.4% 4.2% 41.4% 4.8% -8.0% -2.4% -9.3% 34.4% 2.4% Sub-Total 6, III ,220, III 6,440,683,606 329,463,495 5.4% Capital Outlay Authority Lease Rentals General Obligation Bonds Grants Benefits Other Lottery Proceeds for Education 828,343,147 98,600 596,125,028 5,654,549,279 4,180,498,550 1,884,494,599 601 ,923 ,39O 801,861,714 412,050,710 5,780,348,343 4,317,501,580 1,918,600,921 526,700,000 (26,481,433) (98,600) (184,074,318) 125,799,064 137,003,030 34,106,322 (75,223,390) -3.2% -100.0% -30.9% 2.2% 3.3% 1.8% -12.5% Total Part III 19,857,252,704 20,197,746,874 340,494,170 1.7% TOTAL PARTS I,ll AND III less: Federal and Other Funds DOAS Indirect Funds 19,997,438,324 7,616,446,778 16,100,000 20,350,699,335 7,825,395,455 15,788,100 353,261,011 208,948,677 (311,900) 1.8% 2.7% -1.9% TOTAL STATE GENERAL FUNDS 12,364,891,546 12,509,515,780 144,624,234 1.2% 20 REVENUE SHORTFALL RESERVE The 1976 Session of the Gereral Assembly created the Revenue Shortfall Reserve in lieu of the 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 3% is available for appropriation. The status of the reserve for the last 12 fiscal years follows: F.Y. 1997 $ 333,941,806 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 21 BUDGET HIGHLIGHTS Total Spending and Revenues FISCAL YEAR 1999 The state's budget in F.Y. 1999 will total $12,525,303,880, a 6.4% increase totaling $753,560,000 over the original budget for F.Y. 1998. The new budget represents a decrease of $7,864,419 from the F.Y. 1998 amended budget because of unusually large surpluses in the state treasury at the end of F.Y. 1997 due to excess revenue collections over estimates and appropriated funds that were unspent. The F.Y. 1999 budget will be funded from new revenues totaling $12,528,603,880 from the following sources: --$11,849,775,000 from taxes and fees. --$530 million from lottery proceeds. --$148,828,880 in Indigent Care Trust Funds. The Governor's official gross revenue estimate actually totals $12,671,603,880 in taxes and fees, but $143 million has been set aside in the Governor's financial plan to cover reserves that are required by law. While the Governor has followed such financial planning for most of his Administration, this is the first year that he has publicly announced his full plan so the public will better understand the financial condition of the state. The difference in the gross revenue estimate of $12,671,603,880 and the appropriation of $12,525,303,880 on which the F.Y. 1999 budget is based, is explained by the $143 million set aside for reserves and $3.3 million in vetoes, which are explained elsewhere in this publication. Tax Reductions $334,000,000 has been set aside from actual collections to fund two tax cuts and is not reflected in the above revenue estimates. One amount-$129,OOO,000-represents the final cent that removes all sales taxes from groceries. The other amount--$205,000,000-represents an income tax cut proposed by Governor Miller and approved by the 1998 General Assembly, effective January 1, 1998. One phase of the cut increases the standard exemption for both individuals and dependents from $1,500 to $2,700. The second phase raises the deduction for citizens over age 65 from $700 to $1,300. $70,000,000 was set aside in the F.Y. 1998 amended budget to offset the cost of the new tax cut during that fiscal year. Salary Adjustments TEACHERS 6% pay raises for public school teachers, effective September I, 1998, and 4% raises for public school bus drivers and lunchroom workers, effective July I, 1998. A 6% increase in the funding level to provide merit increases for University System academic and nonacademic personnel on September I, 1998. 6% salary increase for teachers with the Department of Technical and Adult Education, effective September I, 1998. Non-teachers employed by the department will receive the same raises as state employees (see below). 22 BUDGET HIGHLIGHTS STATE EMPLOYEES Pay raises from 0% to 7% for employees of the Executive Branch in conformance with the GeorgiaGain pay for performance system. The range includes raises of 0%, 40/0, 5% and 7%, effective October 1, 1998, based on performance ratings. 4% raises for Judicial and Legislative Branch employees who receive at least "satisfactory" or "meets expectations" on annual performance appraisals. 4% for state officials whose salary is set by law. $56,486 to provide salary adjustments for 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, 1998: --Supplemental salary adjustments and an additional 5% 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 Juvenile Justice. --Supplemental salary adjustments for certain administrative law judges and support personnel in the Office of State Administrative Hearings. --Supplemental salary adjustments for Georgia Bureau of Investigation special agents and scientists in order to conform with the GeorgiaGain established minimum salary levels. Additionally, these adjustments will move special agents and scientists currently below the GeorgiaGain established target salaries for these jobs to their respective GeorgiaGain target salaries, and provide a 4% increase for special agents and scientists who are above the GeorgiaGain established target salaries. --Supplemental salary adjustments for enforcement and certain support staff within the Public Service Commission. --A 3.5% funding level for supplemental salary adjustments for certain positions within the Law Department. --Supplemental salary adjustments for employees successfully completing the primary accounting series of courses offered through the State Financial Management Certificate Program. Public Schools $126,531,518 in state general funds to enhance public school education throughout the state. The funds include: --$114,916,143 for student growth of 1.9%. --$36,145,027 for Equalization Grants --$15,401,836 for Educational Technology Support. --$15,335,468 to enhance state support for supplies and materials, textbooks and operations in the classroom. --$10,150,000 for after-school programs with a reading component and an evaluation. --$9,326,541 to increase funding for maintenance and operations within the QBE formula by $7 per full-time equivalent student (FIE). --$9,150,000 to fund a reading initiative in the elementary grades and evaluate progress. --$4,265,620 to increase media materials within the QBE funding formula. This appropriation and the normal allocations each year for the purchase of books for public school libraries, will provide funding for about 550,000 23 BUDGET HIGHLIGHTS new books in F.Y. 1999. This is a part of the Governor's commitment to place more than 1,000,000 new books in the state's public libraries and school libraries. $11,321,870 in state general funds in the F.Y. 1998 amended budget to continue implementing a coordinated fund accounting, financial analysis, and student information systems at schools throughout the state. (Added to $9,006,730 in F.Y. 1999 lottery funds, the total expenditures authorized at the 1998 legislative session for this program is $20,328,600.) $46,803,341 in lottery funds to enhance public school education, including: --$26,787,000 to fund technology, equipment and technology training for local schools at $20.10 per FTE. --$6,549,611 to enroll an additional 1,000 children in the voluntary Pre-Kindergarten program, increasing to 61,000 the total number of children served. $214,259,607 in net new funding for public schools in the F.Y. 1998 amended budget, including: --$78,577,895 in the Midterm Adjustment for increased enrollment. --$35,179,823 in grants to local school systems to cover the one-time loss of ad valorem tax revenue due to changes in motor vehicle registration. --$15,401,836 to expand funding for educational technology support. --$3,394,000 in additional funds for schools which successfully achieved their Pay for Performance goals. -$2,512,972 to increase funds for pupil transportation. --$1,696,772 to increase funds for 8 schools to receive Middle School Incentive grants. --$78,868,973 in lottery funds to provide capital outlay monies to fast-growing systems at the $40 million entitlement level. $199,199,973 in lottery funds and bonds to construct new public schools in Georgia. The specific appropriations are: --$41,013,000 in F.Y. 1999 bonds to 10 school systems for regular entitlements --$29,602,000 in F.Y. 1999 bonds to 7 systems for regular advanced funding. --$2,780,000 in F.Y. 1999 bonds to purchase equipment for new and modified vocational high school laboratories. --$20,942,000 in F.Y. 1998 bonds to 10 school systems for regular entitlements. -$14,935,000 in F.Y. 1998 bonds to 6 systems for regular advanced funding. --$4,913,000 in F.Y. 1998 bonds to 2 systems for incentive advance funding. --$6,146,000 in F.Y. 1998 bonds for equipment for new and modified vocational high school laboratories. --$78,868,973 in F.Y. 1998 lottery funds to provide funds for F.Y. 1999 Growth Capital Outlay for fast growing systems at the $40,000,000 entitlement level. University System $93,058,935 in new funding for the University System (1999 funding over the original 1998 funding), including the following (in addition to pay raises): --$10,200,000 to fund formula increases related to enrollment and increases in other operating costs. --$6,000,000 in additional support to preserve and upgrade the technology infrastructure, designating $1,000,000 for training faculty and staff in the use of technology. --$4,235,000 to support the Governor's Traditional Industries Program ($3,935,000) and the Georgia Environmental Partnership ($300,000). --$2,500,000 to endow chairs at Armstrong Atlantic State University in Economics, Columbus State University in Latin studies, Georgia Southern in Mathematics/Computer Science and two chairs at Macon College in Information Technology. 24 BUDGET HIGHLIGHTS --$2,400,000 to expand the Major Repairs and Rehabilitation Fund by changing the formula from 0.95% to 1% ofF.Y. 1997 replacement value of $4,777,443,410. --$2,000,000 to develop a Statewide Desktop Distance Learning network pilot program which will provide online, non-eredit courses for working professionals in Georgia. $26,685,000 in lottery funds for the following: --$15,000,000 in continuation funding for the Equipment, Technology and Construction Trust Fund, with $3,000,000 designated for "B" Unit activities. --$7,466,000 to provide continuation funding for the Chancellor's Initiatives, including Connecting Teachers and Technology ($4,820,000), Connecting Students and Services ($527,000), GALILEO ($1,939,000) and P-16/PREP ($180,000). --$2,219,000 to continue the Internet Connectivity initiative. --$2,000,000 to purchase educational programming at GPTC. $57,890,160 in F.Y. 1998 for the following purposes: --$42,368,064 in funding for the Georgia Research Alliance, including $2,250,000 for 3 eminent scholars, $12,465,000 for facilities, $21,710,000 for equipment, $500,000 for projects, and $5,443,064 for lapsed project funding from F.Y. 1997. --$5,000,000 to increase funding for instructional technology. --$4,900,000 to construct an Animal Science Arena at the University of Georgia. --$2,000 in lottery funds for a statewide interconnected library system. --$1,838,096 for the Georgia Public Telecommunications Commission. $206,925,000 for new construction and renovations on college and university campuses. Scholarships $18,763,841 in lottery funds to increase funding for projected awards for HOPE tuition, books and fees at public colleges and technical schools to include $500,000 to home-schooled students and $1,424,325 for a technology fee pilot project at 6 University institutions. (F.Y. 1998) $12,579,275 in lottery funds to increase funding for HOPE Private College Scholarships for eligible students attending private colleges. (F.Y. 1998) $500,000 to provide reimbursement funding for HOPE scholarships, including tuition, books and mandatory fees for home-schooled students with a B grade point average after 45 quarter hours of college work. (The state in F.Y. 1999 will spend $251,026,535 to provide scholarships and loans to students, an increase of $42,181,105 over original F.Y. 1998 appropriations. Most of these funds--$217,047,965--eome from the state lottery.) Technical Institutes $24,384,346 in lottery funds for the following: --$8,889,303 to equip 4 new facilities opening in F.Y. 1999. --$6,000,000 to fund renovations at North Georgia Tech ($3.6 million) and South Georgia Tech ($2.4 million). --$5,100,000 to purchase equipment for 6 facilities scheduled to open in F. Y. 1999. 25 BUDGET HIGHLIGHTS --$3,100,000 to purchase equipment for 3 facilities scheduled to open in late F.Y. 1998 or F.Y. 1999. --$1,295,043 to purchase equipment for the expansion of 7 existing instructional programs at state technical institutes, Gwinnett Tech and Clayton College and State University. $10,000,000 in F.Y. 1998 to add 450,000 books to the public libraries of Georgia. The books will be distributed based on population and circulation per capita. The purchase of these books is a part of Governor Miller's commitment to place 1,000,000 new books in Georgia's public libraries and school libraries. $200,000 to expand the Summer Reading Program at public libraries. $45,000 to fund a statewide study of public library facility needs. $3,734,745 in F.Y. 1999 and $1,204,108 in F.Y. 1998 to fund the opening of 13 new satellites and other facilities scheduled to open during F.Y. 1998. $1,378,465 to fund 4 new facilities scheduled to open duringF.Y. 1999. $209,496 in F.Y. 1998 to complete the annualization of the databases and operating costs for GALILEO at public libraries, and $1,295,457 to annualize the costs in F.Y. 1999. $519,000 in F.Y. 1998 to fund the same costs for GALILEO at state technical institutes and satellite facilities. $1,685,246 in F.Y. 1998 for increased Quick Start project activity. $23,620,000 in bonds to fund a variety of construction or renovation projects at various technical institutes, including the following: --$12,370,000 in repairs and renovations. --$5,700,000 to construct a business and industrial development center at South Georgia Technical and Adult Institute. --$1 million to replace equipment. --$2 million to renovate libraries in Glynn County and the City of Warner Robins. $2,550,000 in F.Y. 1998 bonds for adult learning centers in Union, Turner, Bryan, Dodge, Henry and Jeff Davis Counties. Human Resources $14,004,188 to provide state matching funds for the federal Welfare-to-Work grant. $15,000,000 to expand the number of child care slots to support families moving from welfare to work and for other low-income families who may be at risk of going on welfare. $4,051,500 to allow 750 children currently in family foster care to be more appropriately placed in institutional foster care. $2,950,000 to expand the Family Connection program statewide. $1,800,000 to fund team assessments that will determine the most appropriate placement for 2,250 children entering the foster care system. 26 BUDGET HIGHLIGHTS $3,896,400 to increase the number of slots in the Community Care for the Elderly program. $1,637,250 to expand community-based services to an additional 932 low-income elderly clients who are not Medicaid eligible. $7,594,141 to annualize the redirection from Brook Run to community placements for persons with mental retardation. $8,189,235 to redirect funds available from the closure ofthe Georgia Mental Health Institute to other hospitals for the continuation of needed services. $6,200,000 to redirect funds available from the closure of the Georgia Mental Health Institute to expand community-based services for the chronically mentally ill in the Baldwin, Bulloch/Chatham/Glynn, DeKalb, Fulton and RichmondlEmanuel County service areas. $2,000,000 to add 150 home- and community-based placements under the Medicaid waiver program for mentally retarded persons currently on the waiting list. $1,600,000 to fund community-based services for severely emotionally disturbed children in the Baldwin, Clarke, Fulton, Laurens and Spalding County service areas, completing the Phase I funding of these services. $5,910,000 to reallocate funds for services to chronically mentally ill clients from hospitals to the community in the Bulloch/Chatham/Glynn, CobblDouglas, Fulton, Lowndes/Ware, and Troup County service areas. $1,095,000 to increase the family foster care per diem from $10.70 to $11.10. $2,500,000 to increase funding for adoption supplements for special needs children. $2,243,125 to expand adoption services through contracts with private adoption agencies. $2,000,000 to expand substance abuse services for pregnant and postpartum mothers statewide. Juvenile Justice $10,870,000 to enhance Georgia's juvenile justice system over a period of 3 years in cooperation with the U.S. Department of Justice. $12,579,441 to annualize the operating costs of various facilities and services at the McIntosh, Emanuel, Eastman and Lorenzo Benn Youth Development Centers (YDCs) $6,737,183 to open the 300-bed Metro Regional Youth Development Center (RYDC) in Atlanta. $2,391,207 to add 53 educational positions in RYDCs to meet the state requirement of 330 minutes of education per day. $2,272,500 to open the 125-bed Paulding RYDC. $8,200,000 in 1998 to fund the construction of a new 75-bed RYDC in Gainesville to replace the current facility. 27 BUDGET HIGHLIGHTS $3,576,048 in 1998 to expand the operation of the Eastman YDC as a juvenile facility from 100 to 400 beds. $15,000,000 in F.Y. 1998 bonds to construct a 150-bed YDC in Muscogee County. $5,180,000 in bonds for a variety of projects-major repairs and renovations, to complete construction of a dining facility at the Ireland YDC; to complete the Athens RYDC multi-purpose building; and to build a classroom addition at the Macon RYDC. $985,000 in bonds to plan and design a new 75-bed RYDC in South Central Georgia; to plan and design a dining facility and a detention building addition at the Augusta YDC; to plan and design a police office and detention unit at the Lorenzo Benn YDC; to plan and design a detention unit expansion at the Macon YDC; and to purchase equipment for the Paulding RYDC. Medicaid $20,000,000 to implement the federally enacted Children's Health Insurance Program (CHIP) to provide insurance coverage for uninsured children from birth through age 18 in families with incomes under 200% of the Federal Poverty Level. Including federal funds, the program will total $78,000,000. $10,827,987 to adjust nursing home reimbursement rates, effective October I, 1998, using the 1996 cost report plus the appropriate DR! inflation factor. $12,900,000 in reduced funding to reflect savings due to fraud and abuse efforts in the Medicaid program. $13,077,407 in additional funding to offset a decline in the Federal Financial Participation rate for Medicaid benefits. $5,198,383 to provide for increased utilization of Medicaid benefits. $1,750,000 to establish a 50-person fraud and abuse unit to conduct random field audits and program reviews. $6,410,877 to provide the state match for expansion of community-based services. $6,335,727 to increase reimbursement rates for inpatient hospital providers. $4,168,907 to increase the reimbursement rates for dental providers to 72% of usual and customary fees, with a 10% minimum increase. $2,762,023 to enhance access to nursing home services by eliminating the 3% patient day cap. $1,466,058 to increase reimbursement rates for physician services. $1,025,000 to provide a 5% dispensing fee increase for pharmacy providers. Economic Development $3,649,731 to launch a new 2-agency program that will support rural development and assist communities and businesses with planning and economic development. The program will be a joint effort of the Department of Industry, Trade and Tourism ($2,058,828) and the Department of Community Affairs ($1,590,903). 28 BUDGET HIGHLIGHTS $500,000 to expand the state's tourism marketing efforts. $1,000,000 to encourage and assist counties and regional development centers in conforming to the new regional planning and service delivery boundaries and for Year 2000 Census preparation for conforming regions. $854,250 to fund local assistance grants. $550,000 to open and fully operate the Georgia Sports Hall of Fame in 1999. For the Music Hall of Fame, $398,000 was appropriated in F.Y. 1998 to match a grant for completing the Children's Exhibit and purchasing equipment and materials for the library. $1,865,000 in bonds for various repairs at the Tallapoosa, West Point, Kingsland and Savannah Visitor Centers. World Congress Center $10,530,000 in bonds to plan and design Phase IV of the World Congress Center. Construction of the 950,000square-foot facility is estimated to cost $190,000,000. Transportation $145 million in bonds to continue work on the Governor's Road Improvement Program (GRIP). This increases to $1,005,000,000 the amount of funding for the program during Governor Miller's Administration. Of the new money, $135 million was appropriated in F.Y. 1998 and $10 million in F.Y. 1999. $9 million in additional motor fuel tax funds for the Local Assistance Road Program (LARP). $5 million in bonds for the regular four-laning program, and an additional $15,674,866 in motor fuel tax funds in F.Y. 1998. $35,350,000 in F.Y. 1998 to upgrade and improve 27 general aviation airports around the state so that people anywhere in the state will be within a 45-minute drive of a top level general aviation airport. Also provided is $350,000 for improvements at the Athens Airport. $9,460,000 in bonds for 3 rail projects, including $4,000,000 in planning funds for the Atlanta, Cartersville and Canton commuter rail line; $3,460,000 for rehabilitation of state-owned rail lines, and $2,000,000 to purchase the Omaha to Preston rail line. (F.Y. 1998) $4,300,000 in F.Y. 1998 for planning and design, environmental analysis and legal work for the Atlanta to Athens commuter rail line. The state is advance-funding the $700,000 federal share of the environmental analysis in order to speed up the federal approval process in implementing the commuter rail system for Metro Atlanta. $4,140,000 in bonds for a feasibility study and design to deepen the Savannah River navigation channel. (F.Y. 1998) $1,500,000 in bonds to complete a feasibility study and design to deepen the Brunswick River channel. (F.Y. 1998) $1,000,000 in bonds for the state portion of the Alabama to Stone Mountain Path program. (F.Y. 1998) $17,400,000 in bonds for spoilage area projects for the Savannah Harbor. (F.Y. 1998) 29 BUDGET HIGHLIGHTS Environment $46,000,000 in bonds to build the West Georgia Regional Reservoir, with the Governor recommending that the bonds be sold only after all necessary pennits are issued by the appropriate federal, state and local authorities for the construction and operation of the reservoir. $20,000,000 in bonds to acquire land under the River Care 2000 program, including $15,000,000 for land purchases in the Chattahoochee River Corridor. $20,000,000 in F.Y. 1998 bonds to increase the amount of money available for the Georgia Environmental Facilities Authority (GEFA) to make low-interest loans to local governments for water, sewer and wastewater treatment projects. $5,000,000 in F.Y. 1998 bonds for the removal of underground and above ground storage tanks. $2,400,000 in bonds for Tybee Beach restoration. $1,233,367 in F.Y. 1999 and $900,763 in F.Y. 1998 to increase hunter and safety and wildlife law enforcement activities throughout the state. The new program calls for 20 additional wildlife resource rangers. $1,150,000 in bonds to fund various projects at state parks. $250,000 to initiate a 5-year Agricultural Water Use Study to estimate the amount of agricultural water usage in order to more effectively manage Georgia's water resources. $1 million to launch an 8-year Groundwater Study to collect the scientific data necessary for development of management strategies for Southeast Georgia's groundwater. $550,133 to enhance water quality permitting and enforcement activities. The funds will provide 18 new positions and increased operating expenses for the Water Protection Branch of the Environmental Protection Division. $261,720 to enhance water allocation and withdrawal pennitting and enforcement activities for the above state agency. $50,000 to undertake a pilot project at Lake Lanier to demonstrate the effectiveness of using both state and local law enforcement personnel to patrol lakes during peak weekends. $6,000,000 in F.Y. 1998 to expand the motor vehicle inspection and maintenance incentive program and guarantee that an adequate number of test sites are available to administer the new dynamometer test for older vehicles in the 13-county Atlanta ozone non-attainment area. $2,160,000 in F.Y. 1998 to upgrade the Wildlife Resources Division's hunting and fishing license sales process by installing point-of-sale computer equipment at 1,400 vendor sites throughout the state. $1,000,000 in F.Y. 1998 to fund a public information and education program to promote the Volunteer Ozone Action Program as one component of an overall strategy to improve air quality in Atlanta. $1,000,000 in F.Y. 1998 to provide local Recreational Grants to local governments for the acquisition, development and maintenance of public recreation areas and facilities. 30 BUDGET HIGHLIGHTS Corrections $13,348,275 to contract with private prisons to build and operate 2,250 irunate beds located in Charlton, Coffee and Wheeler Counties. The beds are scheduled to be available in August 1998 in Charlton and in November 1998 at the Coffee and Wheeler facilities. Each prison will hold 750 beds. This is a total of 750 more beds-250 at each facility-than earlier agreed to by the state. $8,970,272 in operating funds for 1,344 beds and 259 positions at the Macon State Prison, Coastal State Prison, Smith State Prison, Wilcox State Prison and Washington State Prison. ($2,097,992 in F.Y. 1998 funds were appropriated to open 192 beds at Washington State Prison and 192 beds at Smith State Prison, with federal funds used to start up 192 beds at Wilcox State Prison.) $2,138,300 to annualize the conversion of the Davisboro Youth Development Facility to a probation detention center for females. $1,427,085 in start-up funding for 768 beds and 148 positions at Macon State Prison and Coastal State Prison plus federal funds of $2,768,899). $797,323 to annualize the operating cost of opening 384 new beds at the Pulaski State Prison. $3,430,088 to provide additional county subsidy funds to increase the per day rate from $12.50 to $15.00. $2,516,195 to provide additional jail subsidy funds due to an increased jail backlog. $1,265,500 to hire an additional 50 probation officers and for operating costs to reduce the probation caseload statewide. $7,000,000 in bonds for roofing and minor construction and repair projects. $6,235,000 in bonds for security-related repairs. $3,250,000 to complete construction of probation detention centers in Terrell, Paulding and Houston Counties. Public Safety $263,550 for 3 new driver's license stations in North Metropolitan Atlanta. Georgia Bureau of Investigation $205,000 in F.Y. 1999 and $119,000 in F.y. 1998 to staff a medical examiner program at the Summerville Regional Laboratory, including a medical examiner, an investigator, a pathology assistant, a secretary and related expenses. $1,295,000 in bonds to construct a morgue for the Headquarters laboratory. Agricultu re $4,000,000 in F.Y. 1999 bonds to expand facilities at the Atlanta Farmers' Market, and $2,000,000 in F.Y. 1998 bonds to make repairs to the Atlanta market. 31 BUDGET HIGHLIGHTS $10,557,000 in bonds for a number of improvement projects at the Georgia National Fairgrounds and Agricenter at Perry, including $9,902,000 in F.Y. 1998 and $655,000 in F.Y. 1999. The largest projects were $7,967,000 to construct an 80,000-square-foot multipurpose agricultural complex/exhibit and office complex and $1,000,000 for Agricenterroadway improvements and upgrades. General Government $12,300,000 to continue the modernization program for the Department of Revenue, including $4,900,000 in F.Y. 1999 and $7,400,000 in F.Y. 1998. $1,350,000 to add 25 positions (20 programmers, 5 managers) to support the Department of Revenue's computer systems. $13,180,000 in bonds to complete the restoration of the State Capitol Building. $10,000,000 in bonds to continue renovations to the #2 Peachtree Building. $6,000,000 in bonds for Americans with Disabilities Act modifications. $3,200,000 in bonds to continue renovations to the State Capitol Museum. $1,625,000 in bonds for completion ofthe Capitol Education Center. $5,000,000 in bonds for the remediation, removal and replacement of underground and above ground storage tanks. Bond Pre-Funding $188,993,763 in F.Y. 1998 to pre-fund bond obligations due in F.Y. 1999. The pre-funding was possible because of the large surplus available for expenditure in the amended budget. The Governor believes pre-funding bond obligations is a wise and prudent use of surplus funds since it does not start new program expenditures. It also provided additional leverage to make education improvements in F.Y. 1999. Year 2000 Computer Project $152,176,753 in F.Y. 1998 to upgrade state computer systems to deal in advance with the Year 2000 problem. 32 EDITOR'S NOTES Vetoes by Governor (H.B. 125O-F.Y. 1999 General Appropriations Act) Section 10, page 11, line 481. Vetoed lottery funds in the amount of $3,300,000 that were eannarked to equip applied technology labs in high schools that do not currently have them. In announcing the veto, Governor Miller said: "This does not represent the best way for local schools to acquire computer hardware and software. Each year possible, an amount of lottery funds has been recommended for the purchase of computers for instruction in the public schools. Other lab programs such as language labs, computer labs, and science labs, must compete at the local level for those funds. There is no sound educational reason why applied technology labs should receive the favorable consideration they get when funds are diverted from other technology needs for them and them alone. These decisions should be made at the local level. "Included in H.B. 1250 is $26,787,000 for local systems to purchase classroom computers at a rate of $20.10 per FIE. This amount is $1,500,000 less than the Governor recommended for classroom computers, which was diverted into the applied technology labs. The balance of $1,800,000 came from the funds recommended for the HOPE Scholarship Program by reducing the amount needed for tuition, fees and books. It is unwise to reduce the amount available for these costs until more precise estimates of actual costs are available after the beginning of the school year 1998-1999." Section 39 (page 35, lines 1596-1598), pertaining to the Department of Administrative Services. Vetoed language approved in the 1996 session of the General Assembly to control the purchase of communications equipment that was not compatible with an 800 megahertz system. The Governor said it is now believed that that a limited number of communication equipment purchases need to be made for security and safety reasons. The Office of Planning and Budget has issued policy guidelines relative to communications equipment purchases that will address budgetary approval and technical review requirements, he said. Section 44 (page 37, lines 1679-1680), pertaining to the Department of Medical Assistance. Vetoed language that the Governor said would compromise the department's ability to manage effectively and efficiently the use of pharmaceuticals by Medicaid recipients. "The department already utilizes a prior authorization system that is based on the individual patient's clinical and medical criteria," the Governor said. "In addition, the language establishes an unnecessary intrusion into the day to day operation of an executive branch agency by the Legislature. The Board of Medical Assistance's review and amendments to the state plan determines specific benefits and service limitations." Section 44 (page 37, lines 1683-1684), pertaining to the Department of Medical Assistance. Vetoed language that the Governor said is unnecessary since the department currently has eXlstmg authority to develop an acuity based payment system. In addition, the department has been analyzing the feasibility of developing such a system, contingent on available resources. Section 48 (page 38, lines 1708-1710), pertaining to the Department of Technical and Adult Education. Vetoed language that the Governor said is no longer needed since the official conversion of Atlanta Tech and Savannah Tech to state management has occurred already, and the final funding for that conversion is in this bill. Section 49 (page 38, lines 1735 through 1738), 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 does not exceed the maximum number of annual positions assigned by law. The Governor explained that the language is unnecessary for two reasons: (1) 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 operating 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. 33 EDITOR'S NOTES Section 58 (page 40, lines 1831-1835), pertaining to federal funds. Vetoed language that the Governor said essentially provides a pool of federal money to be available only to supplant state funds. It prohibits an amendment of federal funds above the amount appropriated in the Appropriations Act for purposes other than to supplant state appropriations for the pertinent programs. This language limits the state's ability to accept additional federal funds, as they become available throughout the fiscal year, the Governor said. Section 59 (page 45, lines 2024-2027), pertaining to the State Board of Education. Vetoed language providing $2,780,000 in bond proceeds for vocational lab equipment for new and modified vocational high school laboratories. The Governor explained that computer equipment for classrooms, including those used for Introduction to Technology courses, has become standard school equipment and should be replaced with formula funding for replacement equipment provided through the QBE formula and with the lottery funding provided for computer purchases. Appropriations Transfers by Executive Order Two appropriations in the original F.Y. 1998 Appropriations Act were transferred to other agencies through Executive Orders signed by Governor Miller. These transfers will explain differences in the original F. Y. 1998 appropriations as shown in this publication as compared to the F.Y. 1998 Budget in Brief. The transfers include: $6,562,477 from the Department of Corrections to the Department of Juvenile Justice for the purpose of funding and operating the Eastman Youth Development Facility. $50,000 from the Office of the Secretary of State to the Department of Natural Resources to consolidate and strengthen state archaeological programs. Indirect Funding H.B. 1250 included $15,788,100 in direct funding to the Department of Administrative Services (DOAS) for computer and telecommunications services to be provided to 7 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 spending program, these funds are included in the totals of each department in this publication rather than in the DOAS budget. The funds by department are: Department of Human Resources, $5,720,100; Department of Revenue, $3,845,000; Regents, University System of Georgia, $3,583,000; Department of Public Safety, $1,650,000; Department of Corrections, $450,000; State Board of Education, $340,000; and Department of Natural Resources, $200,000. 34 LEGISLATIVE BRANCH GENERAL ASSEMBLY F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS ADmSTED BASE--$27,801,978 TOTAL REDIRECTION LEVEL--$27,801,978 $27,801,978 $27,168,900 $27,168,900 DEPARTMENT OF AUDITS F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $23,148,583 $20,214,774 $20,156,774 ADmSTED BASE--$21,783,671 $1,364,912 Funds 26 audit positions for the Department of Medical Assistance and Health Care Fraud Control Unit. TOTAL REDIRECTION LEVEL--$23,148,583 AMENDED KY. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$58,000 $58,000 Adds 2 auditors for the Health Care Fraud Control Unit. In addition to the state appropriations noted above, the department is authorized to transfer $30,000 from personal services to regular operating expenses. 35 JUDICIAL BRANCH F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $99,738,650 $90,895,360 $91,276,910 ADJUSTED BASE--$95,841,746 ENHANCEMENT FUNDS $2,000,000 Contracts with organizations to provide legal services to the victims of domestic violence. $675,000 Provides fimds for House Bill 751which relates to the Superior Court Clerks' Retirement Fund of Georgia. $500,000 Increases county grants to assist the indigent defense program. $220,000 Provides funds for a pilot project in Fulton County Superior Court to establish a Family Court. $200,000 Adds funds for network contracts for the Georgia Courts Automation Commission. $151,904 Provides fimds to add 2 computer specialists to serve the judicial circuits, Solicitors General's offices and the Prosecuting Attorney's Council. $100,000 Provides funds for the operation ofthe Fulton County Drug Court. $50,000 Increases funds for educational contracts for the Institute of Continuing Judicial Education. TOTAL ENHANCEMENT FUNDS--$3,896,904 36 DEPARTMENT OF ADMINISTRATIVE SERVICES F. Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $25,798,569 $32,549,307 $25,148,629 ADmSTED BASE--$26,261,214. The adjusted base includes $123,029 to provide supplemental salary adjustments, effective October 1, 1998, for certain administrative law judges and support personnel in the Office of State Administrative Hearings. FUNDS TO REDIRECT--($1,108,195) ($643,000) Reflects a decrease in computer maintenance and software costs. ($250,000) Utilizes excess revenues collected from state surplus property sales to supplant state funds. ($189,384) Decreases personal services and other operating expenses within the Office of State Administrative Hearings. ($25,811) Reduces personal services and regular operating expenses for the State Properties Commission. ADDITIONS--$413,050 $177,800 Increases critical personal services funding for the Office of State Administrative Hearings. $139,439 Adds 2 positions to assist state agencies in developing Request For Proposals (RFPs) as a more cost effective means of acquiring products and services unique to an agency. $70,000 Adds 1 position for conducting internal audits of the department's operations and services. $25,811 Provides funds for operating expenses and the replacement of computer equipment for the State Properties Commission. Agency Funds Converts 83 contract computer programmer and manager positions to permanent positions. Agency Funds Privatizes state agency radio maintenance. TOTAL REDIRECTION LEVEL--$25,566,069 ENHANCEMENT FUNDS $232,500 Establishes an alternative fuel vehicle grant program to assist qualifying agencies by funding a portion of the additional cost of these vehicles. TOTAL ENHANCEMENT FUNDS--$232,500 The total F.Y. 1999 budget for the department from all fund sources is $174,311,537. 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 $15,788,100 in indirect funding for DOAS 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. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $34,005,000 in bonds that relate to the Georgia Building Authority for F. Y. 1999. 37 DEPARTMENT OF ADMINISTRATIVE SERVICES AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$7,400,678 $4,408,637 Implements the first phase of the DOAS Strategic Space Plan regarding state agency space in the metropolitan Atlanta area. Funds allow the Georgia Building Authority (GBA) to finance equipment, rental and moving expenses related to state agency moves necessary to permit the vacated state-owned space to be renovated and configured for more effective and efficient utilization by state agencies. $2,824,041 Upgrades the Unisys mainframe computers used by the Georgia Crime Information Center, Department of Corrections and the Board of Pardons and Paroles to accommodate these agencies' increased workloads. $78,000 Renovates and reworks the State Capitol building's telephone system. $50,000 Provides additional funds for the State Health Planning Review Board to handle hearing case backlogs. $40,000 Covers the expense ofthe consultant study conducted to determine the impact ofthe Year 2000 problem on state government computer systems and assess the cost to remedy this situation. Agency Funds Transfers $250,000 in agency funds from per diem, fees & contracts to personal services to convert 20 contract computer programming positions to permanent positions. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $5,000,000 in bonds that relate to the Georgia Building Authority for F. Y. 1998. 38 DEPARTMENT OF AGRICULTURE F.Y. 1999 STATE APPROPRIATIONS F. Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $42,510,459 $41 ,782,853 $41,776,853 ADJUSTED BASE--$42,744,727 FUNDS TO REDIRECT--($1,078,246) ($740,465) Reduces various operating expenses. ($151,720) Reduces expenses associated with the Athens and Tifton Veterinary Diagnostic laboratories contract. ($100,000) Reduces Market Bulletin publishing and mailing expenses due to the offering of an electronic version of the Market Bulletin to interested subscribers. ($71,803) Reduces expenses associated with the Poultry Veterinary Diagnostic laboratories contract. ($14,258) Decreases payment to the Georgia Agrirama Development Authority. ADDITIONS--$743,978 $246,000 Increases funding for the Clean Day Program which coordinates the removal and disposal of unused or dangerous pesticides being stored in rural residences and on farms. $150,000 Repairs roofs at Seasonal Farmers' Markets statewide. $110,000 Ensures adequate funding for regulatory inspection travel expenses. $75,318 Funds additional personnel expense of a clinical microbiologist associated with the Athens Veterinary Diagnostic Laboratory portion of the Athens and Tifton Veterinary Diagnostic laboratories contract. $65,000 Increases the Poultry Veterinary Diagnostic laboratories contract to provide for driveway access improvements and replacement computer equipment at the Dalton branch Poultry Veterinary Diagnostic Laboratory ($25,000), and the replacement of a tissue processor at the Oakwood main Poultry Veterinary Diagnostic Laboratory ($40,000). $61,258 Funds a grant writer position ($25,000), roof repairs ($22,000) and promotion efforts ($14,258) at the Georgia Agrirama Development Authority. $36,402 Furnishes additional personnel expenses of a computer service specialist associated with the Tifton Veterinary Diagnostic Laboratory portion of the Athens and Tifton Veterinary Diagnostic laboratories contract. TOTAL REDIRECTION LEVEL--$42,41 0,459 ENHANCEMENT FUNDS $100,000 Constructs a walk-in cooler and loading dock for large animal specimen storage at the Tifton Veterinary Diagnostic Laboratory. TOTAL ENHANCEMENT FUNDS--$100,000 39 DEPARTMENT OF AGRICULTURE See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $4,000,000 in bonds that relate to the Department ofAgriculture for F. Y. 1999. AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$6,000 $145,000 Purchases replacement equipment for the Tifton Veterinary Diagnostic Laboratory. $56,000 Funds personnel expenses for a molecular biology technician position ($15,000) and related supplies ($11,000) regarding the development of a more effective method of poultry vaccination at the Oakwood main Poultry Veterinary Diagnostic Laboratory, and provides for upgrades and replacement of computer software and equipment ($30,000) also at the Oakwood facility. $5,000 Installs a backflow prevention device for the museum grounds of the Georgia Agrirama Development Authority. ($200,000) Reduces personal services funding. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $2,000,000 in bonds that relate to the Department of Agriculture for F. Y. 1998. 40 DEPARTMENT OF BANKING AND FINANCE F.Y. 1999 STATE APPROPRIATIONS F. Y. 1998 AMENDED STATE APPROPRIATIONS F. Y. 1998 ORIGINAL STATE APPROPRIATIONS $9,846,715 $9,523,070 $9,523,070 ADJUSTED BASE--$9,847,393 FUNDS TO REDIRECT--($564,525) ($359,525) Reassigns personal services from the Financial Institution Supervision Program and the Data Processing Section to support the Mortgage Program and staff training. ($151,583) Redirects funds from Administration to the district field offices to shift examination report processing in the fmancial supervision area to the district level. ($53,417) Reduces operating expenses. ADDITIONS--$563,847 $291,174 Reassigns personnel due to increases in workload in reviewing new branch banks per Senate Bill 165 and in conducting fraud investigations for the Mortgage Program. $151,583 Provides funds to the district field offices for examination report processing in the fmancial supervision area. $68,351 Establishes a training manager position for the department. $52,739 Funds operational increases due to changes in workload, and includes funds for rental escalation clauses and relocation of the Marietta office. TOTAL REDIRECTION LEVEL--$9,846,715 41 DEPARTMENT OF COMMUNITY AFFAIRS F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $29,847,327 $44,876,764 $25,995,075 ADJUSTED BASE--$26,390,574 FUNDS TO REDIRECT-- ($940,865) ($275,000) Decreases net funding of Regional Economic Business Assistance Grants by 5% but increases funding for the Facilitech incentive program to $150,000 and provides one-time funding ($50,000) to make the LOCI economic impact model more user-friendly. ($115,852) Eliminates 1 position and transfers the technical assistance portion of the Export Finance Assistance program and transfers 1 position to the Department of Industry, Trade and Tourism Export Assistance Center. The Georgia Housing and Finance Authority will continue to approve loans under this program. ($103,155) Reduces funding for Regional Development and Planning contracts by 5%. ($97,197) Reduces the state match for the federal HOME program due to reductions in the availability of federal funds. ($92,693) Reduces personal services through an increase in lapse ($106,505), offset by an increase of $13,812 in insurance premiums. ($62,500) Reduces the Regional Economic Development (Targeted) program by 5%. ($59,195) Reduces state funds for the Georgia Environmental Facilities Authority by replacing state funds with other funds for real estate rentals ($5,000), computer charges ($34,195) and telecommunications ($20,000). ($36,788) Reduces funding for non-sponsored music programs at the Georgia Music Hall of Fame. ($33,844) Reduces state funds for the Georgia Environmental Facilities Authority by reducing the Emergency Loan program by 5%. ($16,674) Reduces state funds for the Georgia Environmental Facilities Authority by increasing federal funding of personal services. ($15,824) Reduces real estate rental funds for the Georgia Commission for National and Community Service. ($12,000) Reduces state funds for the Georgia Environmental Facilities Authority by reducing travel expenses ($5,000) and regular operating expenses ($7,000) to reflect previous spending levels. ($10,192) Reduces funding for personal services at the Georgia Sports Hall of Fame. ($9,951) Decreases administrative fees for the Empowerment ZonelEnterprise Community Program. 42 DEPARTMENT OF COMMUNITY AFFAIRS ADDITIONS--$402,465 $284,000 Reflects the transfer of the Georgia Advocacy contract that serves the developmentally disabled from the Department of Human Resources. $36,788 Provides additional marketing funds for the Georgia Music Hall of Fame. $25,053 Provides additional funds for real estate rental and operating expenses to the Georgia Environmental Facilities Authority. $18,608 Increases the Georgia Environmental Facilities Authority's portion of the Regional Assistance Program to $500,000. $15,824 $12,000 Provides additional per diem, fees and contracts funds for the Georgia Commission for National and Community Service. Provides funds to the Georgia Environmental Facilities Authority for the completion of the Year 2000 Computer Software Conversion Project. $10,192 Provides additional funds to the Georgia Sports Hall of Fame for publications and printing. TOTAL REDIRECTION LEVEL--$25,852,174 ENHANCEMENT FUNDS $1,590,903 Creates 11 regional teams in conjunction with the Department of Industry, Trade and Tourism, and provides funding for 24 new positions with expenses, to support rural development and assist communities and businesses with planning and economic development. The department will apply $415,000 of unused flood money towards one-time first-year costs. $1,000,000 Provides funds to encourage and assist counties and regional development centers in conforming to the new regional planning and service delivery boundaries and for Year 2000 Census preparation for conforming regions ($50,000 per region). $854,250 $550,000 Provides funds for local assistance grants. Provides funds for additional staff and operating expenses for full operations of the Georgia Sports Hall of Fame and for the projected opening in 1998. TOTAL ENHANCEMENT FUNDS--$3,995,153 Included in the F.Y. 1999 total appropriations for the Department of Community Affairs are funds for 4 attached activities. These are: Georgia Environmental Facilities Authority ($2,391,383); Music Hall of Fame Authority ($757,051), Georgia Sports Hall of Fame Authority ($770,187); and the State Housing Trust Fund ($3,281,250). 43 DEPARTMENT OF COMMUNITY AFFAIRS AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$18,881,689 $17,743,689 Increases state funds for various Local Assistance Grants. $740,000 Provides for the start-up costs, equipment, staff and promotion of the Georgia Sports Hall of Fame in anticipation of the 1998 grand opening. $398,000 Provides funds to the Georgia Music Hall of Fame to match a Knight Foundation grant for completing the Children's Exhibit and equipment and materials for the library. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $20,000,000 in bonds that relate to the Georgia Environmental Facilities Authority for F.Y. 1998. 44 DEPARTMENT OF CORRECTIONS F.Y. 1999 STATEAPPROPRlATIONS F.Y. 1998 AMENDED STATEAPPROPRlATIONS F.Y. 1998 ORIGINAL STATEAPPROPRlATIONS $795,003,729 $745,508,741 $741,132,868 The Board of Pardons and Paroles is attached to the Department of Corrections. 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. 1999 STATEAPPROPRlATIONS F.Y. 1998 AMENDED STATE APPROPRlATIONS F.Y. 1998 ORIGINAL STATEAPPROPRlATIONS $748,208,766 $700,479,028 $696,421,715 ADruSTED BASE--$713,254,947 FUNDS TO REDIRECT--($18,197,694) ($16,357,281) Realigns bed-space at detention centers, boot camps and revocation facilities to other correctional facilities to maximize the utilization of bed-space. This action, with the addition below, changes the mission of 1,397 beds and more appropriately provides the type of bed-space required by the department. ($1,840,413) Reduces operating cost throughout the Department of Corrections. ADDITIONS--$17,951,928 $16,357,281 Provides fimds for 1,397 beds and 438 positions needed for the realignment ofprobation detention beds, parole revocation beds, boot camp beds and prison beds. $1,594,647 Annualizes 384 fast track beds at the Augusta State Medical Prison scheduled to open in November 1998. TOTAL REDIRECTION LEVEL--$713,009,181 ENHANCEMENT FUNDS $13,348,275 Contracts with private prisons for 2,250 inmate beds located in Charlton, Coffee and Wheeler Counties. The beds are scheduled to be available August 1998 in Charlton County and November 1998 in Coffee and Wheeler Counties. $8,970,272 Provides operating fimds for 1,344 beds and 259 positions at the Macon State Prison, Coastal State Prison, Smith State Prison, Wilcox State Prison and Washington State Prison. $3,430,088 Adds county subsidy fimds to increase the per day rate from $12.50 to 15.00. $2,359,870 Provides additional funds for jail subsidy due to increased jail backlog. $2,138,300 Annualizes the conversion of the Davisboro Youth Development Facility to a probation detention center for females. $1,427,085 Provides start-up fimds for 768 beds and 148 positions at Macon State Prison and Coastal State Prison. 45 DEPARTMENT OF CORRECTIONS $1,265,500 Funds an additional 50 probation officers and operating cost to reduce the probation caseload statewide. $1,062,872 Completes implementation of the Cook/Chill feeding-process at the 5 state prisons in Milledgeville. $797,323 Annualizes the operating cost of384 beds at the Pulaski State Prison. $400,000 Provides funds for 4 additional GSAMS sites to provide inmates access to academic instruction. TOTAL ENHANCEMENT FUNDS--$35,199,585 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $16,485,000 in bonds that relate to the Department of Corrections for F.Y. 1999. Governor Miller's Administration Opens a Record 20,717 New Correctional Beds 39,515 45,103 24,386 25,739 90 91 92 93 94 95 96 97 98 Calendar Years AMENDED F.Y. 1998 BUDGET IDGIaIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$4,057,313 $5,497,684 Increases funds to address an anticipated shortage injail subsidies. $2,097,992 Provides start-up funds for 192 beds at Washington State Prison and 192 beds at Smith State Prison. Federal funds will be used for start-up cost of 192 beds at Wilcox State Prison. $1,069,150 Converts the Davisboro Youth Development Facility to a probation detention center for females. The Department of Juvenile Justice vacated the facility in October 1997 and DOC will open the facility in Janmlly1998. $951,316 Implements the Cook / Chill feeding process at the 5 prisons in Milledgeville. Funds 43 positions and equipment purchases to operate the process. ($3,886,951) Redirects operating funds due to delayed openings at Autly, Hancock, Augusta, and Pulaski State Prisons. 46 DEPARTMENT OF CORRECTIONS ($1,418,184) Reduces funding in personal services ($821,878), county subsidy ($496,306) and payments to Central State Hospital- Meals ($100,000) to reflect projected expenditures. Includes the transfer of one position to the State Board of Pardons and Paroles. ($253,694) Realigns funds in personal services, per diem, fees and contracts, and health care services purchases to properly reflect expenditures for the medical contract with the Medical College of Georgia. BOARD OF PARDONS AND PAROLES F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $46,794,963 $45,029,713 $44,711,153 ADJUSTED BASE--$46,260,190 ENHANCEMENT FUNDS $346,273 Provides additional funds for j ail subsidy payments. $188,500 Funds the replacement of 13 vehicles for field staff. TOTAL ENHANCEMENT FUNDS--$534,773 AMENDED RY. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$318,560 $268,560 Increases funds to address an anticipated shortage in jail subsidies. $50,000 Contracts for an aftercare program in Bibb County. In addition to the state appropriations noted above, the board is authorized to add 1 position transferred from the Department of Corrections. 47 DEPARTMENT OF DEFENSE F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATEAPPROPRIATIONS $5,532,547 $4,989,144 $4,363,044 ADJUSTED BASE--$4,516,547 FUNDS TO REDIRECT--($184,840) ($184,840) Reduces utility and maintenance expenses for the Army National Guard. ADDITIONS--$84,840 $50,000 Replaces 4 computers and provides ftmds to establish and maintain an Internet web site. $24,840 Provides ftmding for staff training, telecommunications and networking expenses. $10,000 Increases regular operating expenses to allow for an increase in insurance premiums. TOTAL REDIRECTION LEVEL--$4,363,044 ENHANCEMENT FUNDS $816,000 Reflects an increase in the state match for the Youth Challenge Program. $300,000 Matches $2.6 million in federal ftmds for repair and renovation projects for the armories. TOTAL ENHANCEMENT FUNDS--$1,116,000 AMENDED KY. 1998 NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$626,100 $600,000 Reflects an increase in the state match for the Youth Challenge Program. $20,100 Purchases 6 computers and related software to enhance the computer systems in the department. $6,000 Provides for per diem, fees and contract ftmds to contract for professional services to be used in the development of an Information Strategy Plan. 48 STATE BOARD OF EDUCATION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $4,966,092,637 $4,861,326,725 $4,647,067,1 18 ADmSTED BASE--$4,792,681,685 ($4,581,402,337 state general funds, $211,279,3481ottery funds for the PreKindergarten program). The adjusted base includes $197,262,978 to provide a 6% salary increase for teachers and a 4% salary increase for state-paid bus drivers and lunchroom workers. STATE GENERAL FUNDS FUNDS TO REDIRECT-- ($91,462) ($51,155) Redirects funding for per diem, fees and contracts for legal fees for the Professional Practices Commission. ($38,000) Decreases personal services funding by eliminating 1 vacant position in the Office of School Readiness. ($2,307) Reduces computer charges for the Office of School Readiness to reflect the decreased need for new system development. ADDITIONS--$167,555 $116,400 Provides funds for 4 additional positions in the Office of School Readiness Regulatory Division to address the increased workload associated with monitoring service providers. $51,155 Increases computer charges ($1,200) for repair and maintenance ofthe computer system, travel ($1,000), per diem fees and contracts ($46,960) due to increased legal costs, and real estate rentals ($1,995) for the Professional Practices Commission. TOTAL REDIRECTION LEVEL--$4,581,478,430 ENHANCEMENT FUNDS $114,916,143 Provides funds for QBE formula grants based on FTE growth of 1.9%. $36,145,027 Increases funding for Equalization Grants. $15,401,836 Provides funding for Educational Technology Support. $15,335,468 Increases direct operations within the QBE funding formula by 16% to enhance state support for supplies and materials, textbooks and operations in the classroom. $10,150,000 Provides funding for after-school programs with a reading component and an evaluation. $9,326,541 Increases funding for maintenance and operations within the QBE formula by $7 per FIE. $9,150,000 Provides funding for a reading initiative in the elementary grades and an evaluation. $4,265,620 Increases media materials within the QBE funding formula by 20% to enhance state support for the purchase of books and other media center materials. $3,963,614 Funds creditable service for accumulated sick leave toward retirement in the Teachers' Retirement System. 49 STATE BOARD OF EDUCATION $44,000 $42,000 $40,000 $38,000 $36,000 $34,000 $32,000 KY. 96 Teacher Salary Projections Based on SREB Salary Estimates F.Y.97 ........ Georgia F.Y.98 -Virginia KY. 99 KY. 00 -ir-U.S. $3,700,000 $2,999,607 $1,517,567 $1,320,879 $1,280,000 $981,050 $968,000 $908,000 $865,095 $756,500 $665,000 $664,957 $600,000 Adds funds for Pay for Perfonnance based on increased participation. Increases telecommunications to provide for ongoing expenses associated with Internet access. Changes funding to grant programs based on actual student counts. Provides increases to various grant programs, including Pupil Transportation. Provides funding for the expansion of the Industry Certification Initiative to include computer-aided drafting and design and health occupations. Funds a student record grant at a rate of $.75 per FIE to defray the costs associated with transmission of student year 1997-1998 student records. Enables schools to access data from the Criterion Referenced Competency Tests and Georgia High School Graduation Test to increase student achievement. Provides additional fimding to pay the full cost of up to 24,000 Advanced Placement exams taken by high school students. Increases current fonnula funding for the Pre-School Handicapped program. Purchases PSAT exams to be administered to all tenth grade students. Increases funds for per diem, fees and contracts to reflect increases for Communities in Schools ($625,000) and the Science Olympiad ($40,000). Increases funds for the Special Instructional Assistance and Middle School Incentive grants to reflect a 16% increase to direct operations. Adds 2 additional technology centers in Savannah and Carrollton. 50 STATE BOARD OF EDUCATION $500,000 Funds employer health insurance contributions for retirees under the Public School Employees' Retirement System (HB. 1273). $384,531 Funds implementation of Phase 3 of the Cross Roads evaluation. $361,800 Provides funds for 6 Georgia Department of Education personnel to administer after-school programs and a reading initiative. $300,000 Adds funds to evaluate alternatives to the remedial and Special Instructional Assistance programs. $120,000 Increases funds for the Georgia Parent Infant Network for Educational Services. ($1,400,000) Reduces funds for per diem, fees and contracts for the Student Learning and Assessment Division and personal services in the 3 state schools. ($7,021,296) Adjusts funding for the Special Instructional Assistance, Middle School Incentive grants, In-School Suspension and Limited English Speaking Students categorical grants to reflect decreased student enrollment in each ofthe programs compared to F.Y. 1998. ($102,594,421) Increases Local Fair Share to reflect the most recent equalized tax digest. TOTAL ENHANCEMENT FUNDS (state general funds)--$126,531,518 STATE LOTTERY FUNDS ENHANCEMENT FUNDS $26,787,000 Provides funds for technology, equipment and technology training for local schools at $20.10 per FTE. $9,006,730 Continues the implementation of a coordinated fund accounting, fmancial analysis, and student information system at schools throughout the state. $6,549,611 Provides funds to serve an additional 1,000 children in the voluntary Pre-Kindergarten program to bring the total served to 61,000. $2,000,000 Provides funds for assistive technology for students with special needs. $1,800,000 Provides funds for Postsecondary Options based on projected participation. $660,000 Purchases equipment for 2 new technology training centers and upgrades equipment at existing centers. TOTAL ENHANCEMENT FUNDS (lottery funds)--$46,803,341 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $111,590,000 in bonds related to the State Board of Education for F. Y. 1999. AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$214,259,607 $78,577,895 Provides funds for the Midterm Adjustment based on updated FTE counts. 51 $35,179,823 $15,401,836 $11,321,870 $3,394,000 $2,512,972 STATE BOARD OF EDUCATION Adds funds for grants to local school systems for the one-time loss of ad valorem tax revenue due to changes in the registration ofmotor vehicles. Provides funds for the Educational Technology Support grant. Adds funds to continue the implementation of a coordinated fund accounting, fmancial analysis, and student information system. Provides additional funds for schools which successfully achieved their Pay for Performance goals. Increases funds for the Pupil Transportation grant. $1,696,772 $1,100,000 $922,356 $908,000 $756,500 $472,400 $400,552 $268,494 $250,000 Increases funds for 8 schools to receive the Middle School Incentive grant. Increases funds for the Governor's Scholarship program to enable additional qualified students to receive scholarships. Funds a student record grant at a rate of$1.50 per FTE to defray the costs associated with the transmission of student year 1996-97 student records. Increases funds to pay for approximately 24,000 Advanced Placement exams. Provides funds to pay for PSAT exams and the summary of answers for approximately 89,000 tenth grade students. Funds a one-time technology grant for gifted students at $20 per FTE. Increases funds for evaluating, assessing and monitoring various programs. Provides funds for a midterm adjustment to Local Fair Share. Increases funds for the continued development of the Criterion Reference Competency Test. 52 STATE BOARD OF EDUCATION $240,000 Provides funds to develop software to access data from the Georgia High School Graduation Test. $200,000 Provides funds to cover expenses related to moving Technology Training Centers from RESAs to college campuses. $100,000 Provides funds for vocational education equipment at high schools. $67,000 Provides additional funds for personal services in the Professional Practices Commission. $35,000 Provides additional funds for the Science Olympiad contract. ($3,752,000) Reduces funds for middle school incentive grant and other grants to local school systems to reflect midterm adjustments. LOTTERY FUNDS $78,868,973 Provides funds for capital outlay funding for fast-growing systems at the $40 million entitlement level. $1,000,000 Adds funds for the Fort Discovery National Science Center in Augusta. $439,000 Adds funds to the Post Secondary Options program to reflect increased enrollment. $300,000 Provides operational funds for Learning Logic programs. (15,401,836) Transfers funds for technology specialists to Budget Unit "A." (1,000,000) Reduces funds for the Pre-Kindergarten program to reflect an enrollment lower than projected. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $40,790,000 in bonds related to the State Board of Education for F.Y. 1998. 1,350,000 ENROLLMENT GROWTH PUBLIC SCHOOLS 1,300,000 1,250,000 1,200,000 1,150,000 --+- Funding FTEs 1,100,000 91 92 93 94 95 96 97 98 99 Fiscal Years 53 STATE FORESTRY COMMISSION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $35,504,900 $34,986,218 $34,539,659 ADJUSTED BASE--$35,503,766 FUNDS TO REDIRECT-- ($1,736,667) ($628,942) Consolidates fire protection services for 16 counties into 7 multi-county unit operations with new unit locations, facilities and service delivery procedures. ($590,934) Abolishes 1 welder position, 1 secretarial position, 1 mechanic, 1 painter, the State Air Operations Supervisor position, the Weather Data Information Specialist position, 5 service forester positions and the videographer position. ($516,791) Eliminates the air detection contract for North Georgia with services to be assumed by the state. ADDITIONS--$1,737,801 $681,087 Increases funds for motor vehicle purchases to reduce the vehicle replacement schedule, especially for critically needed truck transports that carry fire equipment. $449,546 Increases funds for temporary help needed for the fire season. $258,968 Increases regular operating funds ($195,027) and provides funds for 1 additional pilot position ($30,487) and seasonal pilots ($33,454) to assume full air detection responsibilities in North Georgia. $103,000 Increases funding for motor vehicle expenses for repair of an aging fleet. $90,000 Increases contract funding for air operations ($40,000) and fire weather information ($50,000). $87,000 Installs dedicated FAX lines in county units for the transmission of weather information and burn permits. $40,000 Increases funding for site preparation and tree planting at Dixon State Forest. $28,200 Provides contract funds for the county co-op agreements signed with Atlanta metro-area counties to provide fire-fighting services. TOTAL REDIRECTION LEVEL--$35,504,900 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $1,600,000 in bonds that relate to the State Forestry Commission for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$446,559 $446,559 Provides funding to rescind the redirection of 10 positions in the F.Y. 1998 budget. 54 GEORGIA BUREAU OF INVESTIGATION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $51,299,927 $48,334,166 $48,215,166 ADmSTED BASE--$50,843,191. The adjusted base includes $1,143,750 to increase the entry salary and provide supplemental salary adjustments for special agents and scientists effective October 1,1998. FUNDS TO REDIRECT--($1,137,400) ($1,137,400) Reduces real estate rentals to allow for privatization of the GEl Headquarters building management and security. ADDITIONS--$l ,594,136 $1,149,900 Allows the GBI to contract with a private management, maintenance and security company for the Headquarters building. $205,000 Adds 1 medical examiner, 1 pathology assistant, 1 secretary and related expenses to staff a medical examiner program at Summerville. $147,790 Provides 9 months funding to fill 6 vacant scientists positions for the regional laboratories. $68,000 Increases real estate rental to lease new space for the regional investigative office in Coffee County. $23,446 Adds 1 evidence receiving technician position to assist with an increased number of evidence received by the Headquarters laboratory. TOTAL REDIRECTION LEVEL--$51,299,927 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $1,295,000 in bonds that relate to the Georgia Bureau of investigation for F. Y. 1999. AMENDED KY. 1998 BUDGET IDGm..IGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$119,000 $119,000 Provides 3 months funding for 1 medical examiner, 1 pathology assistant, 1 secretary and related expenses to staff a medical examiner program at Summerville. 55 OFFICE OF THE GOVERNOR F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $40,003,433 $30,616,01 7 $29,930,439 ADWSTED BASE--$30,186,706 FUNDS TO REDIRECT--($625,887) ($183,421) Reduces the operating budget for the following agencies: Commission on Equal Opportunity; Georgia Council for the Arts; Office of Consumer Affairs; Human Relations Commission; Georgia Emergency Management Agency; and Criminal Justice Coordinating Council. ($175,555) Decreases funds for intern stipends and travel ($7,837) and cost of operations ($167,718) in the Governor's Office. ($173,106) Reduces operating expenses for the Professional Standards Commission. ($68,488) Eliminates contract funds in the Office of Planning and Budget for the Privatization of Government Services. ($25,317) Decreases operating expenses ($11,496) and Children and Youth Grants ($13,821) in the Criminal Justice Coordinating Council. ADDITIONS--$346,614 $175,000 Adds funding to per diem, fees and contracts in the Office of Planning and Budget for the Military Affairs Coordinating Council ($100,000), Southern Center for International Studies ($25,000) and personal services to meet projected needs ($50,000). $100,000 Increases Local Arts Grants to $4,000,000 in the Georgia Council for the Arts. $25,317 Adjusts operating expenses in the Children and Youth Coordinating Council to distribute 3,100 copies of the "Driving Ambition" video to educate teens about the changes in the driving laws. $25,000 Increases funding to $72,500 for the Historic Chattahoochee Commission in the Georgia Council for the Arts. $10,180 Provides for personal services costs ($7,341) and real estate rental ($2,839) in the Georgia Council for the Arts. $7,328 Allows for replacement radios and copier expenses in the Office of Consumer Affairs. $3,789 Provides for personal services costs in the Office of Information Technology. TOTAL REDIRECTION LEVEL--$29,907,433 ENHANCEMENTS FUNDS $10,000,000 Provides for contingency funds for the 1998 flood in Middle and South Georgia. $50,000 Increases the Governor's Office for the Transition Fund. 56 OFFICE OF THE GOVERNOR $46,000 Adds 1 public relations position for the Children and Youth Coordinating Council to assist with workload mcreases. TOTAL ENHANCEMENT FUNDS--$1O,096,000 The F.Y. 1999 budget includes an Emergency Fund of $3,225,000; $3,518,059 to operate the Governor's Office; $10,000,000 for flood contingency; and $7,697,274 to operate the Office of Planning and Budget. Included in the total appropriations for the Office of the Governor are funds for 9 attached activities. These are the Commission on Equal Opportunity ($796,693), Georgia Council for the Arts ($4,639,681), Office of Consumer Affairs ($3,287,398), Criminal Justice Coordinating Council ($307,193), Children and Youth Coordinating Council ($583,967), Human Relations Commission ($308,849), Professional Standards Commission ($3,858,351), Georgia Emergency Management Agency ($1,117,273), and Office of Information Technology Policy Council ($663,695). AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$685,578 $425,000 Increases per diem, fees and contracts in the Office of Planning and Budget to provide training to state employees on Results-Based Budgeting ($50,000); to contract for an evaluation ofthe FTE classification and collection process for the Department ofEducation ($350,000); and to provide contract funds for the Military Affairs Coordinating Committee ($25,000). $160,000 Reimburses the Governor's Emergency Funds for legal expenses of the Department of Law. $65,000 Provides for consulting fees for network architecture, design and implementation of all local area network applications ($15,000) and for contract services to update and expand the study done on the statewide law enforcement radio system ($50,000) in the Office of Information Technology. $28,250 Adds 1 public relations position to the Children and Youth Coordinating Council to assist with workload demands ($12,000) and increases per diem, fees and contracts for the administration of a federal Abstinence Education Grant ($16,250). $7,328 Increases equipment in the Office of Consumer Affairs for replacement radios and copier expenses. 57 DEPARTMENT OF HUMAN RESOURCES F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $1,232,394,521 $1,177,448,609 $1,220,531,233 ADJUSTED BASE--$1 ,246,807,265. FUNDS TO REDIRECT-- ($111,250,376) ($68,074,509) Reflects a reduction in the number of public assistance cases from 120,400 to 85,117 due to WorkFirst and welfare reform efforts. ($21,389,235) Redirects funds from the closure of the Georgia Mental Health Institute (GMHI), effective July 1, 1998. ($8,421,069) Annualizes the closure of Brook Run mental retardation facility, effective December 31, 1997. ($5,910,000) Redirects funds for adult mental health services from hospitals to the community. ($1,600,000) Redirects funds for child and adolescent services from hospitals to the community. ($1,525,000) Redirects 67 local child support collection staff to customer service duties and an additional 67 child support collection staff to child support enforcement duties. ($1,482,856) Reduces department telecommunication costs through consolidation of functions and elimination of unnecessary lines and services. ($1,300,000) Supplants state funds with Medicaid income in state hospitals. ($750,000) Reduces real estate costs by decreasing the average amount of square footage allotted for work areas. Impact of WorkFirst and Welfare Reform Efforts 160,000 ..,.-- Highest Average Number of Cases: 142,867 (FY94) Lowest Average Number of Cases: 85,117 (FY99 Projected) - _ ~ 140,000 4---------------~m_ +-----------rnmn.II.III; ~ 120,000 +--------------l ~ 100,000 J~:~j III11 I I f'"-oo~-- 41 % Decline in Cases 58 DEPARTMENT OF HUMAN RESOURCES ($284,000) Transfers funds for the Georgia Advocacy Office to the Department of Community Affairs. ($235,000) Eliminates funding for the following contracts: Micro-Enterprises ($150,000); Community of Care ($50,000); the Connector Agency ($25,000); and Piney Grove Youth Program ($10,000). ($200,000) Reduces funding for the Medical College of Georgia Children and Youth Project. ($78,707) Reduces personal services and operating expenses at the State Health Planning Agency. ADDITIONS--$63,715,969 $15,000,000 $8,189,235 $7,594,141 Expands the number of child care slots to support families moving from welfare to work and for other low-income families who may be at risk of going on welfare. (Total funds -- $25,000,000.) Reallocates funds available from the closure of GMHl to other hospitals for the continuation of needed services. Annualizes the redirection from Brook Run to community placements for persons with mental retardation. $6,200,000 $5,910,000 Uses funds available from the closure of GMHI to expand community-based services for the chronically mentally iII in the Baldwin, Bulloch/Chatham/Glynn, DeKalb, Fulton and RichmondlEmanuel County service areas. Reallocates funds for services to chronically mentally iII clients from hospitals to the community in the Bulloch/Chatham/Glynn, Cobb/Douglas, Fulton, LowndeslWare and Troup County service areas. $3,896,400 $3,020,896 $2,500,000 Adds funds to increase the number of slots in the Community Care for the Elderly Program. Provides additional funds for the Family and Children Electronic Tracking System. (Total funds - $10,240,327) Increases funding for adoption supplements for special needs children. $2,243,125 $2,000,000 $2,000,000 Expands adoption services through contracts with private adoption agencies. Expands substance abuse services for pregnant and postpartum mothers statewide. (Total funds -$8,000,000) Adds 150 home and community-based placements under the Medicaid waiver program for mentally retarded persons currently on the waiting list. $1,600,000 $1,525,000 $800,000 Provides funding for community-based services for severely emotionally disturbed children (SED) in the Baldwin, Clarke, Fulton, Laurens and Spalding County service areas. This completes Phase1 funding of SED services. Redirects 134 local child support collection staff to customer service and child support enforcement duties. (Total funds -- $4,480,000) Provides childhood lead poisoning screenings and care coordination. 59 DEPARTMENT OF HUMAN RESOURCES $500,000 Increases the capacity of the state to track and identify disease trends. $500,000 Provides additional case services funding to assist persons with disabilities in obtaining employment. $165,922 Completes the development of a comprehensive health planning data system and covers an increase in real estate rental for the State Health Planning Agency. $71,250 Funds one adoption gala in each of the 12 DFCS regions to promote and publicize adoptions. (Total funds -- $95,000) TOTAL REDIRECTION LEVEL--$1,199,272,858 ENHANCEMENT FUNDS $14,004,188 Provides state matching funds for the federal Welfare-to-Work grant. (Total funds -- $41,698,188) $4,051,500 Provides funding that will allow 750 children currently in family foster care to be more appropriately placed in institutional foster care. (Total funds -- $5,420,000) $2,950,000 Allows expansion of the Family Connection program statewide. $1,800,000 Funds team assessments that will determine the most appropriate placement for 2,250 children entering the foster care system. (Total funds -- $2,400,000) $1,637,250 Expands community-based services to an additional 932 low-income elderly clients who are not Medicaid eligible. $1,095,000 Increases the family foster care per diem from $10.70 to $11.10. (Total funds -- $1,460,000) $765,000 Contracts with a private vendor to centralize the collection of child support payments. (Total funds -- $2,295,000) $651,375 Funds temporary placements for the 2,250 children who are entering foster care and undergoing assessments. (Total funds -- $868,500) $628,279 Provides funding for a crisis stabilization program for the chronically mentally ill at the Phoenix Center in Houston County. $543,845 Provides 50% of the match for the new federal abstinence education grant. $535,888 Relocates DFCS offices in Banks, Clinch, Cobb, Colquitt, Dade, Dooly, Early, Echols, Hancock, Lowndes and Thomas Counties and expands the office in Brantley County. $400,000 Provides funding for the universal sickle cell treatment program. $400,000 Provides start-up funding for a statewide trauma program. $400,000 Funds Healthy Families programs in Cordele, Dalton, Gainesville and Tifton. $375,000 Provides specialized training for foster parents who care for children with serious behavioral and other problems. (Total funds -- $500,000.) 60 DEPARTMENT OF HUMAN RESOURCES $353,400 $345,938 $300,500 Transfers the inspection and licensure of personal care homes from county health departments to the Office of Regulatory Services. Implements stricter background checks on foster care parents. (Total funds -- $461,250.) Provides information and a copy ofthe book The Little Engine That Could to parents of all newborns to emphasize the importance of nurturing and stimulating infants and to create public awareness of recent brain research. $300,000 $300,000 $297,500 $200,000 $200,000 $100,000 $100,000 $80,000 $75,000 $50,000 $50,000 $37,000 $30,000 Increases funding for the Court Appointed Special Advocates program. Increases funding for child advocacy centers. Provides additional funding for domestic violence shelters. Funds additional community-based services for mentally retarded individuals in Northeast Georgia. Provides state match for the Carnegie Foundation "Starting Points" grant. Provides funding for the Intergenerational Resource program for the elderly in Atlanta. Expands supported employment services for mentally retarded persons. Provides additional funding for the fluoridation program. Provides funding for a community outreach program for youth in Augusta. Increases the contract with the Georgia Council for the Hearing Impaired. Provides funding for an independent living center for the blind in Albany. Provides funding for operating expenses at the Scottish Rite Children's Medical Center. Provides funding for a family dental services program in the Tri-County Primary Health Care Center in Warrenton. $25,000 Increases the contract with Jomandi Productions. $20,000 Increases funding for cancer treatment for the medically indigent. $20,000 Increases the contract with the Central Savannah Regional Area Agency on Aging. TOTAL ENHANCEMENT FUNDS--$33,12 1,663 In addition to the appropriations noted above, the department is authorized to use $17,300,000 in federal TANF block grant funds to add 7 surveyors for the purpose of licensing Head Start programs and after-school day care programs operated by private entities on public school grounds ($300,000); to purchase transportation services for clients transitioning from welfare to work ($7,000,000); to expand teen pregnancy prevention efforts ($6,000,000); and to expand job training and work partnerships with the Department of Technical and Adult Education ($4,000,000). The department is also authorized to refmance state-funded supported employment slots with Medicaid funds and expand supported employment for persons with mental illness, mental retardation and substance abuse. 61 DEPARTMENT OF HUMAN RESOURCES See the section on "State of Georgia General Obligation Debt Sinking Fund" for infonnation about $27,225,000 in bonds that relate to the Department of Human Resources for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET-- ($43,082,624) $10,856,814 Provides state matching funds for the federal Welfare-to-Work grant. (Total funds -- $39,808,317) $543,845 Provides 50% of the state match for the new federal abstinence education grant. $422,604 $300,000 $273,945 $225,225 $200,000 Funds a 5% rate increase for Community Care for the Elderly and Alzheimer's program providers. Increases funding for the purchase of clotting factor for individuals with hemophilia. Provides additional operating funds for the new state Public Health Laboratory. Increases funding for the prevention and treatment of sexually transmitted diseases. Provides funding for Healthy Families programs in Fulton and DeKalb Counties. $199,775 $133,333 $100,000 $84,000 $80,000 Provides funding for drug therapy to medically indigent persons with HIV. Covers the increased cost for pap smear screens conducted by private laboratories. Increases funding for cancer treatment for the medically indigent. Increases funding for services to mentally retarded clients in the Northeast Georgia and the CobblDouglas mental health regions. Provides start-up costs for the Lynndale, Inc. HUD home for the mentally retarded in Augusta. $71,250 $45,000 $25,000 $14,600 Provides funds for each DFCS region to promote and publicize adoptions. (Total funds -- $95,000) Provides funding for a 5-bed group home for individuals with physical disabilities in Richmond County. Funds a project coordinator for the Council on Elder Abuse. Funds a computer network for the school for emotionally disturbed adolescents at Northwest Georgia Regional Hospital. ($5,583,506) Transfers state funds to the Department of Medical Assistance to provide match for 794 additional home and community-based waiver placements for the mentally retarded. ($51,074,509) Reflects a reduction in the number of public assistance cases. 62 DEPARTMENT OF HUMAN RESOURCES In addition to the state appropriations noted above, the department is authorized to use $25,875,000 in federal TANF funds to increase the number of day care slots ($16 million), expand transportation services for recipients transitioning from welfare to employment ($7 million), cover computer programming costs associated with changes in eligibility requirements ($1,250,000), provide assistance to day care centers and family day care providers in meeting standards and certification requirements ($125,000), and fund substance abuse treatment programs for pregnant or postpartum women on welfare or at risk of going on welfare ($1.5 million). Additionally, $14,085,244 in state funds is transferred from mental health institutions to community mental health services in accordance with the hospital allocation formula. Distribution of Funding for MHMRSA Services FY 96 - FY99 FY96 FY97 FY98 FY99 63 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM F.y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $23,006,380 $20,409,594 $20,076,479 ADJUSTED BASE--$20,715,243 FUNDS TO REDIRECT--($1,469,894) ($1,244,894) Transfers responsibility for the maintenance and operation of 9 of the state's 11 visitor information centers to the Department of Transportation. The centers at Plains and Sylvania will continue to be maintained and operated by the Department of Industry, Trade and Tourism. ($200,000) Eliminates funding for the Southeast US tourism initiative. ($25,000) Removes excess funding for the Georgia Council for International Visitors. ADDITIONS--$1 ,241,103 $500,000 Expands the department's tourism marketing efforts in accordance with a study and assessment of Georgia's tourism opportunities being undertaken in conjunction with private sector organizations. $220,000 Adds funds for the purchase of computer hardware and software to provide the department with the technology to access and effectively utilize economic development data. $198,660 Provides funds for staff development and training. $122,943 Adds 1 advanced telecommunication recruitment specialist position and associated operating expenses. $70,000 Transfers 1 export financial assistance position from the Department of Community Affairs. $57,000 Increases the Korea office contract. $29,500 Upgrades technology and improves the recritment process for the film unit. $20,000 Provides increased funding for the Historic Chattahoochee Commission. $18,000 Upgrades the International Trade Division's export assistance video conferencing capabilities. $5,000 Increases funding for Local Welcome Centers in Clayton County ($2,500) and Polk County ($2,500). TOTAL REDIRECTION LEVEL--$20,486,452 ENHANCEMENT FUNDS $2,058,828 Adds funds for 20 positions including 12 workforce specialists, 7 regional economic development officers, and 1 support position to staff state development teams in conjunction with the Department of Community Affairs to enhance the state's regional and rural development efforts. $300,000 Provides funds to support the Workforce Policy and Planning Council proposed by the Governor's Workforce Development Taskforce. 64 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM The new state visitor information center at Ringgold. $80,588 Increases funding for travel and operating expenses in the Economic Development Division. $80,512 Expands the Main Street program by adding 1 position ($41,400), upgrading 1 position ($8,280), and increasing operating expenses ($30,832). TOTAL ENHANCEMENT FUNDS--$2,519,928 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $1,865,000 in bonds that relate to the Department of Industry, Trade and Tourism and $3,835,000 in bonds that relate to the Georgia World Congress Center for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$333,115 $208,115 Increases personal services funding to fully fund Pay for Performance salary adjustments ($146,934) and to rescind the redirection of a position ($61,181). $50,000 Provides additional funding for utilities at the visitor information centers. $50,000 Increases funding for local welcome centers in the City of Conyers, Dade County, City of Pine Mountain, Coweta County, City of Douglas, Henry County, City of Warm Springs, Covington/Newton County, City of Richmond Hill, and Cartersville/Bartow County. $25,000 Allows for the construction of the Women's Memorial at Arlington National Cemetery. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $6,640,000 in bonds that relate to the Georgia Ports Authority and $10,530,000 in bonds that relate to the Georgia World Congress Center for F.Y. 1998. 65 OFFICE OF COMMISSIONER OF INSURANCE F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $15,781,902 $15,799,353 $15,799,353 ADWSTED BASE--$16,322,987 FUNDS TO REDIRECT--($765,000) ($368,048) Eliminates 2 positions within the Internal Administration Division and 4 positions within the Insurance Regulation Division. ($396,952) Reflects reduction in operating expenses resulting from department reorganization. ADDITIONS--$73,915 $73,915 Adds 1 position to assist in fIre safety compliance building inspections ($36,958), and 1 position to assist in reviewing architectural and engineering drawings of buildings to be constructed for fIre safety code compliance ($36,957). TOTAL REDIRECTION LEVEL-$l 5,631 ,902 ENHANCEMENT FUNDS $150,000 Adds 3 positions and associated expenses to the Special Insurance Fraud Fund to assist in the unit's investigations. This enhancement brings the total budget for this fund to $804,677. The total amount of the appropriation must be collected from special insurance levies and deposited into the State Treasury within the fIrst quarter ofF.Y. 1999. Allotments of these funds from the Treasury will be approved after the deposits have been made. TOTAL ENHANCEMENT FUNDS--$l 50,000 66 DEPARTMENT OF JUVENILE JUSTICE F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $216,076,209 $185,488,692 $174,504,508 ADJUSTED BASE--$180,825,836. The adjusted base includes $1,400,000 to provide supplemental salary adjustments and an additional 5% salary increase for Peace Officer Standards Training certified personnel in the Juvenile Correctional Officer job class series. FUNDS TO REDIRECT--($8,488,501) ($2,722,620) Eliminates the grant to the Fulton County Detention Center to operate the new Metro Regional Youth Detention Center (RYDC) opening in May 1998. ($2,704,369) Privatizes the management of state-run attention/contract homes and redirects funds to specialized residential services, electronic monitoring, and drug testing while also redirecting 13 positions that worked with attention/contract homes to court services to reduce the average caseload. ($2,269,269) Discontinues the operation of the Davisboro Correctional Institute as a youth development campus. The facility was transferred to the Department of Corrections in November 1997. ($260,000) Reduces the amount of funds for the Wrightsville Youth Development Campus (YDC) utilities based on historical expenditures. ($191,211) Redirects the amount of funds for medical services at the Ireland YDC from Central State Hospital to a private contract. ($141,032) Redirects distance learning funding that was obtained to purchase equipment for educational programming in F.Y. 1998. ($130,000) Eliminates the operation of 34 temporary beds at the Macon YDC after construction of permanent beds is finished in November 1998. ($70,000) Eliminates the Wrightsville YDC per diem for haircuts to establish a vocational barbering program. ADDITIONS--$8,774,500 $4,194,000 Operates the Metro RYDC opening in May 1998. (Remaining funding in enhancements.) $2,704,369 Operates a privately managed network of attention/contract homes that have been previously been state-run and redirects 13 positions to court services; creates more special residential slots; and expands electronic monitoring and drug testing programs. $1,314,288 Expands the operational capacity of the Irwin YDC by 120 beds opening in March 1999. $191,211 Redirects funds for medical services at the Ireland YDC from Central State Hospital to a private contract. $130,000 Operates 25 new permanent beds at the Macon YDC starting in November 1998. $100,000 Adds funds for real estate rental and utilities for the Georgia Addiction, Parenting, and Pregnancy Project (GAPP). 67 DEPARTMENT OF JUVENILE JUSTICE $70,632 Purchases maintenance contract for educational computer equipment. $70,000 Adds 2 contract vocational teaching positions in barbering at the Wrightsville YDC. TOTAL REDIRECTION LEVEL--$181,111,835 $250,000,000 Department of Juvenile Justice State Funds FY 1992-1999 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $0 ITI~2 IT19~ ITI~4 IT19~ ITI~6 ITI~7 IT19~ ITI~9 ENHANCEMENTS FUNDS $12,579,441 Annualizes the operating costs of various facilities and services: Mcintosh YDC ($2,871,930); Emanuel YDC ($3,551,175); Eastman YDC ($5,854,706); and Lorenzo Benn YDC cottage ($301,630). $10,870,000 Enhances Georgia's juvenile justice system in a 3-year plan in cooperation with the u.s. Department of Justice. Includes: $1,005,000 for the new Offices of Education, Mental Health, and Quality Assurance; $416,667 for educational enhancement packages; $1,050,000 to increase staff! juvenile correctional officer ratios; $1,400,000 in medical services enrichments; $250,000 for an OPB Monitor's Office; $1,633,333 for alternatives to RYDCs; $3,386,667 in mental health services expansion; $750,000 in extra counselors; and $978,333 in miscellaneous additions. $2,543,183 Operates the Metro RYDC. (See also additions.) 68 $2,391,207 $2,272,500 $1,035,563 $1,460,000 $520,379 $400,000 $350,000 $214,592 $162,509 $80,000 $60,000 $25,000 DEPARTMENT OF JUVENILE JUSTICE Adds 53 educational positions in the RYDCs to meet the state requirement of330 minutes of education per day. Opens the Paulding RYDC in December 1998 at 125 beds. Funds contractual-based increases for various programs and services including the Irwin Youth Development Campus ($540,985) ; regional youth detention centers medical contracts ($241,658); Baxley Wilderness Program ($41,324); North Georgia Wilderness Program ($41,383); Middle Georgia Wilderness Program ($23,667); and Augusta Group Home ($146,546). Implements a new group home for females. Funds the re-bidding of the Pelham Youth Development Campus contract. Provides additional funds for the Mel Blount Group Home. Completes state operations ofjuvenile court facilities in Richmond County. Funds a computer monitoring system at youth development campuses and regional youth detention centers to assist juvenile correctional officers oversee and monitor juveniles. Funds Hepatitis B immunizations for juvenile correctional staff to meet OSHA requirements. Provides funding for additional community programs that promote self-esteem and teach parenting skills. Adds 2 positions to perform criminal history background checks. Provides planning funds for a juvenile institution in South Central Georgia. TOTAL ENHANCEMENT FUNDS--$34,964,374 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $6,165,000 in bonds that relate to the Department of Juvenile Justice for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$10,984,184 $8,200,000 Funds the construction of a new 75-bed RYDC in Gainesville to replace the current facility. $3,576,048 Expands operation of Eastman YDC as a juvenile facility from 100 to 400 beds. $1,706,477 Increases operating funds for Emanuel YDC due to higher than expected start-up costs. $798,806 Provides additional funds for the Pelham YDC contract after re-bidding resulted in a higher rate. $797,601 Provides state match for a federal grant to expand various RYDCs: Augusta RYDC - 40-bed expansion ($346,428); DeKalb RYDC - 24-bed expansion ($171,423); Gwinnett RYDC - 20-bed expansion ($154,610); Marietta RYDC - 20-bed expansion ($125,140). 69 DEPARTMENT OF JUVENILE JUSTICE $108,805 Funds operating costs for 25 additional beds at the Marietta RYDC and adds 9 positions. ($100,000) Reduces utility funds at the Wrightsville YDC by $150,000 and increases real estate funds in court services by $50,000. ($106,329) Reduces per diem, fees, and contracts for health services at the Eastman YDC. ($339,450) Reduces operating funds for the Augusta Boot Camp due to a reduction in costs. ($485,282) Reduces funds due to a delayed opening date of the Metro RYDC. ($1,565,091) Reduces funds due to a delay in opening the Emanuel and McIntosh YDCs. ($1,607,401) Reduces funds due to the transfer of the Davisboro Youth Development Facility to the Department of Corrections to be operated as an adult facility effective November 1997. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $15,000,000 in bonds that relate to the Department of Juvenile Justice for F.Y. 1998. 60,000 50,000 40,000 30,000 20,000 10,000 Number of Court Services Cases per Year FY 1992 FY 1993 FY 1994 FY 1995 FY 1996 FY 1997 70 DEPARTMENT OF LABOR F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.y. 1998 ORIGINAL STATE APPROPRIATIONS $21,001,054 $20,500,998 $20,500,998 ADJUSTED BASE--$21 ,006,390 FUNDS TO REDIRECT--($25,336) ($22,403) Reduces funding for the Child Labor Inspection program. ($2,933) Decreases funding for the Georgia Commission on Women. ADDITIONS--$20,000 $20,000 Provides funds to identify and develop a list of temporary labor pools, study their practices and develop appropriate rules and regulations. TOTAL REDIRECTION LEVEL--$21,001,054 71 DEPARTMENT OF LAW F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $13,837,210 $13,274,252 $13,124,252 ADmSTED BASE--$13,920,124. The adjusted base includes $320,645 for a supplemental salary adjustment for certain positions effective October 1,1998. FUNDS TO REDIRECT--($82,914) ($42,752) Reduces operating expenses. ($40,162) Supplants state fimds with other fimds received for the State Health Care Fraud Control Unit. TOTAL REDIRECTION LEVEL--$13,837,21O AMENDED F.Y. 1998 BUDGET illGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$150,000 $150,000 Increases fimding for regular operating expenses ($50,000) and per diem, fees and contracts ($100,000) to cover expenses related to the tobacco litigation case. In addition to the state appropriations noted above, the department is authorized to transfer $29,686 from real estate rentals to regular operating expenses to redesign and configure office space at 254 Washington Street. 72 DEPARTMENT OF MEDICAL ASSISTANCE F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $1,377,619,479 $1,328,975,688 $1,324,271,890 ADJUSTED BASE--$1,338,505,224 FUNDS TO REDIRECT-- ($34,695,864) ($14,807,674) Reduces Medicaid benefits to reflect a projected decline in Medicaid recipients. (Total funds -$37,516,275) ($12,873,990) Reflects a reduction in Medicaid benefit expenditures due to enhanced fraud and abuse measures. (Total funds -- $32,617,152) ($3,614,200) Reduces state funds to reflect savings from transferring the NET broker contract from administration to Medicaid benefits. ($3,400,000) Adjusts nursing home reimbursement rates from the 70th percentile to 105% of the median in the administration cost center. (Total funds -- $8,614,137) ADDITIONS--$20,563,540 $13,077,407 Adds funding to offset a decline in the Federal Financial Participation rate for Medicaid benefits. (Total funds -- $33,132,523) $5,198,383 Provides for increased utilization of Medicaid benefits. (Total funds -- $13,170,466) $1,750,000 Establishes a 50-person fraud and abuse unit to conduct random field audits and program reviews. (Total funds -- $3,500,000) $537,750 Provides for cost increases in the Medicaid Management Information System (MMIS) contract for claims processing. (Total funds-- $2,000,000) TOTAL REDIRECTION LEVEL--$1,324,372,900 (Includes $148,828,880 for the Indigent Care Trust Fund) ENHANCEMENT FUNDS $20,000,000 Implements the federally enacted Children's Health Insurance Program to serve children birth through age 18 whose family incomes are under 200% of the Federal Poverty Level. The Governor had recommended implementation of the insurance program by two departments -- $7,809,322 in the Department of Medical Assistance to serve children from birth through age 5, with $12,190,678 in the Merit System of Personnel Administration for ages 6 through 18. The General Assembly passed a law that merged the programs under the Department of Medical Assistance, but the funds were not transferred from the Merit System in the F.Y. 1999 Appropriations Act. The funds will be transferred by Executive Order prior to the start of the fiscal year so that the program and funding will be under one management in compliance with the new state law. (Total funds -- $78,025,051) $10,827,987 Adjusts nursing home reimbursementrates, effective October 1, 1998, using the 1996 cost report plus the appropriate DRI inflation factor. (Total funds -- $27,433,461) 73 DEPARTMENT OF MEDICAL ASSISTANCE $6,410,877 $6,335,727 Provides state match for expansion of community-based services. (Total funds -- $16,242,404) Increases reimbursementrates for inpatient hospital providers by adding the 1998 DR! inflation factor, less a 1% efficiency adjustment, to the current Diagnosis Related Group payment rates for hospitals. (Total funds -- $16,052,007) $4,168,907 Increases reimbursement rates for dental providers to 72% of usual and customary fees, with a 10% minimum increase, based on the 1996 Georgia Dental Association fee and salary survey. (Total funds -- $10,562,217) $2,762,023 Enhances access to nursing home services by eliminating the 3% patient day cap. (Total funds -$6,997,778) $1,466,058 Increases reimbursement rates for physician services by using the 1997 Resource Based Relative Value Scale. (Total funds -- $3,714,360) $1,025,000 $250,000 Provides a 5% dispensing fee increase for pharmacy providers. (Total funds -- $2,596,909) Increases funding for the Independent Care Waiver program. (Total funds -- $633,392) TOTAL ENHANCEMENT FUNDS--$53,246,579 The F.Y. 1999 adjusted base includes $6,056,000 in state funds ($15,343,299 total funds) to annualize the cost of equalizing the urban/rural hospital payment differential under the Diagnosis Related Group reimbursement methodology; $400,000 in state funds ($1,013,428 total funds) to annualize the cost ofthe 5% home health rate increase; $248,472 in state funds ($629,521 total funds) to annualize the transfer from the Department of Human Resources for an additional 18 slots under the Mental Retardation Waiver program; and the transfer of $17,000,000 in state fund~ ($34,000,000 total funds) from per diem fees and contracts to Medicaid benefits ($43,070,687 total funds) to cover the cost ofthe Non-Emergency Transportation program. 1,400,000 Growth in Medicaid Recipients 1,200,000 1,000,000 ..:=l 800,000 ..'s. 'y =: 600,000 400,000 200,000 0 1982 1984 1986 1988 1990 1992 Fiscal Year 1994 1996 1998 74 DEPARTMENT OF MEDICAL ASSISTANCE AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$4,703,798 $5,583,506 Transfers funding from the Department of Human Resources to expand Mental Retardation Waiver slots. (Total funds -- $14,294,690) $1,514,000 Provides funding to remove the rural/urban hospital differential under the new Diagnosis Related Group reimbursement methodology, effective April I, 1998. (Total funds -- $3,876,088) $100,000 $86,050 Provides a 5% rate increase to Medicaid providers of home health services, effective April I, 1998. (Total funds -- $256,016) Implements an over-the-counter nicotine replacement medication program, effective April I, 1998. (Total funds -- $220,302) ($2,579,758) Adjusts nursing home rates, effective April 1, 1998. Language authorizing the nicotine replacement medication program and the nursing home rate increase was vetoed by the Governor. Medicaid Benefit Expenditures by Aid Category F.Y.1997 Other XIX 1% Aged 17% Disabled 37% AFDCAdults 19% Blind 6% Children 20% 75 MERIT SYSTEM OF PERSONNEL ADMINISTRATION F.Y. 1999 APPROPRIATIONS F.Y. 1998 AMENDED APPROPRIATIONS F. Y. 1998 ORIGINAL APPROPRIATIONS $1,203,940,109 $1,098,536,482 $1 ,098,236,482 ADJUSTED BASE--$l ,204,296,878 FUNDS TO REDIRECT--($1,094,930) ($367,978) Reduces expenses associated with department publications resulting from eliminating and revising publications issued to state agencies and employees. ($233,750) Discontinues the contract with the Certified Public Manager Program. ($222,139) Eliminates 7 positions and related costs resulting from reorganizing and consolidating certain operations. ($101,865) Allows the department to convert from using the Department of Administrative Services' operated management reporting system to one designed and operated internally. ($100,068) Discontinues the audits of agency payrolls due to the extensive and accurate automation of the payroll calculation and administration process, eliminating 2 positions. ($69,130) Eliminates 2 positions and associated expenses resulting from contracting with outside sources for internal audits of agency operations, especially the State Employee Health Plan. ADDITIONS--$738,161 $325,000 Develops and implements a cost effective electronic recruitment, applicant tracking and hiring system to replace outmoded current manual and electronic systems. $269,305 Establishes an automated telephone call documentation system to permit accurate and complete documentation ofcustomer calls to the State Employee Health Plan in order for customer inquiries to be answered with greater effectiveness and efficiency. $74,726 Adds 1 position to assist in answering inquiries from state agencies regarding interpretation of State Personnel Board rules, reduction in force advice and processing, salary administration issues, and employee certification. $69,130 Provides for contracting of internal audits. TOTAL REDIRECTION LEVEL--$l ,203,940,109 The F.Y. 1999 Appropriations Act allocated $12,190,678 to the State Merit System for implementation ofthe new federal Children's Health Insurance Program for children ages 6 through 18, as recommended by the Governor. An insurance program for children from birth through age 5 was recommended for administration by the Department of Medical Assistance. The General Assembly, however, passed a state law that placed the full insurance program for children from birth through age 18 in the Department ofMedical Assistance. Funding, however, was not transferred from the Merit System in the F. Y. 1999 Appropriations Act. The funds will be transferred by Executive Order prior to the start ofthe fiscal year so that the program and the funding will be under one management in compliance with the new state law. This publication reflects that transfer. 76 MERIT SYSTEM OF PERSONNEL ADMINISTRATION AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$300,000 $300,000 Begins implementation and development of the federally enacted Children's Health Insurance Program. This appropriation consists entirely of state funds. Effective in F.Y. 1999, this program will be transferred through Executive Order to the Department of Medical Assistance where this program will be housed per Senate Bill 410 under the name "PeachCare for Kids". 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 service contracts with various state agencies covering non-base personnel services, 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 offurnishing the base level of personnel services to state agencies. 77 DEPARTMENT OF NATURAL RESOURCES F.Y. 1999 STATE APPROPRIATIONS , F.Y. 1998 AMENDED STATE APPROPRIATIONS F.y. 1998 ORIGINAL STATE APPROPRIATIONS $99,935,359 $103,510,384 $91,344,956 ADJUSTED BASE--$97,590,175 FUNDS TO REDIRECT--($3,202,131) ($1,904,397) Annualizes the reduction in personal services and operating expenses for the Parks, Recreation and Historic Sites Division due to the privatization in F.Y. 1998 of lodge operations at Amicalola Falls, Unicoi and Red Top Mountain state parks. ($392,198) Transfers 5 positions in the Environmental Protection Division's (EPD) Water Resources Branch and 2 positions from EPD's Program Coordination Section from state funds to federal public supervision and drinking water revolving loan funds. ($173,000) Decreases funds for the Coastal Resources Division by selling the Bagby II research vessel to the bonding company and replacing it with a smaller vessel and eliminating a captain position. ($150,877) Reduces the Wildlife Resources Division's personal services expenses by transferring responsibility for water well and environmental law enforcement investigations to the EPD with existing staff. ($109,936) Transfers 2 positions from EPD's Land Protection Branch from state funds to federal lead-based paint funds. ($103,472) Reduces state support for the Georgia Agricultural Exposition Authority due to a reduction in operating expenses and an increase in Authority revenues from the Georgia National Fair and other events held at the facility. ($103,168) Eliminates Pollution Prevention Assistance Division contract funds appropriated for state match and grant development activities under federal programs that will be terminated, and for media and public information and outreach services. ($95,083) Replaces the remaining state operating funds for the Wildlife Resources Division's nongame and endangered species program with wildlife tag receipts and other contributions. ($95,000) Reduces funding for the Georgia Heritage 2000 Grant Program to $161,000, including a $500 reduction in the adjusted base. ($60,000) Reduces personal services for the Program Support Division as a result of reorganization. ($15,000) Eliminates lease payments to Berry College for the refuge portion of a wildlife management area in Floyd County where hunting is not allowed and no DNR wildlife management services are provided. ADDITIONS--$2,065,462 $1,233,367 Annualizes personal services costs and operating expenses for 20 additional Wildlife Resources rangers added in the F.Y. 1998 amended budget to increase hunter and boating safety and wildlife law enforcement activities throughout the state. $250,000 Provides initial funding for a 5-year Agricultural Water Use Study to estimate the amount of agricultural water usage in order to more effectively manage Georgia's water resources. 78 DEPARTMENT OF NATURAL RESOURCES $205,500 Increases personal services to provide an hourly rate increase for the department's day laborers. $125,051 Adds 6 positions and increased operating expenses to the Wildlife Resources Division for operations of the new Charlie Elliott Visitors Center located in Jasper and Newton Counties. $101,953 Increases operating expenses at state parks to be offset by a projected increase in revenues of $206,841. $100,000 Adds increased operating expenses for the Wildlife Resources Division in order to increase trout production at the Buford Hatchery in Forsyth County. $26,119 Provides 2 hourly positions and increased operating funds for the Parks, Recreation and Historic Sites Division to conduct tours of the pools, springs and museum at the Little White House State Historic Site in Meriwether County. $23,472 Increases operating expenses to enhance the Georgia Agricultural Exposition Authority's facility maintenance program. TOTAL REDIRECTION LEVEL--$96,453,506 79 DEPARTMENT OF NATURAL RESOURCES ENHANCEMENT FUNDS $1,000,000 Initiates funding for an 8-year Coastal Groundwater Study to collect the scientific data necessary for development of management strategies for southeast Georgia's groundwater. $750,000 Increases motor vehicle replacement funding for the Wildlife Resources Division and the Parks, Recreation and Historic Sites Division. $550,133 Adds 18 positions and increased operating expenses for EPD's Water Protection Branch to enhance water quality permitting and enforcement activities. $350,000 Funds the third phase of repairs and maintenance for Rhodes Memorial Hall in Atlanta. $261,720 Adds 8 positions and increased operating expenses for EPD's Water Resources Branch to enhance water allocation and withdrawal permitting and enforcement activities. $200,000 Provides funds to the Coastal Resources Division for the development of offshore artificial reefs. $170,000 Adds 2 positions and increased operating expenses to the Historic Preservation Division to enhance the Archaeology Protection and Education Program. $75,000 Provides state funds to match federal ISTEA funds for trail construction and improvements at Brasstown Trek, Tallulah Gorge and High Falls State Park. $75,000 Provides funds to the Georgia Historical Society for the State Historic Marker Program. $50,000 Increases funding to the Wildlife Resources Division for a pilot project at Lake Lanier to demonstrate the effectiveness of using both state and local law enforcement personnel to patrol lakes during peak weekends. TOTAL ENHANCEMENT FUNDS--$3,481,853 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $69,550,000 in bonds that relate to the Department of Natural Resources and $655,000 in bonds that relate to the Georgia Agricultural Exposition Authority for F.Y. 1999. In addition, H.B. 1250 directs the use of $185,000 in existing bond proceeds for design and engineering of the Laurens County Public Fishing Area. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$12,165,428 $6,000,000 Increases funding to EPD for the motor vehicle inspection and maintenance incentive program to ensure an adequate number of test sites are capable of administering the new dynamometer test for older vehicles in the 13-county Atlanta ozone non-attainment area. $2,160,000 Upgrades the Wildlife Resources Division's hunting and fishing license sales process by installing point-of-sale computer equipment at 1,400 vendor sites throughout the state. $1,692,304 Replaces funds for the Stone Mountain Memorial Association's bond repayment since the Association's payment will be made to the Georgia State Financing and Investment Commission instead of DNR beginning in June 1998. 80 DEPARTMENT OF NATURAL RESOURCES $1,000,000 Adds contract funds to EPD for a public information and education program to promote the Volunteer Ozone Action Program as one component of an overall strategy to improve air quality in Atlanta. $1,000,000 Provides funding for Recreation Grants to local governments to assist with the acquisition, development and maintenance of public recreation areas and facilities. $900,763 Adds 20 new Wildlife Resources rangers to increase hunter and boating safety and wildlife law enforcement activities throughout the state. $310,000 Provides funds for a master plan, new cottage and road additions and improvements at the George L. Smith State Park in Emanuel County. $183,296 Increases personal services to rescind the redirection of 3 Wildlife Resources positions. $100,000 Provides additional funding for advertising and promotions by the Parks, Recreation and Historic Sites Division. $90,000 Adds funds for the construction of a bridge at the General Coffee State Park in Coffee County. $55,000 Provides funds for the Women's History Study. $35,000 Adds funding for operation of the Coastal Conservation Association of Georgia. $25,000 Provides funds for a bear tagging project to reduce damage to bee yards in southeast Georgia. ($1,385,935) Reduces the Parks, Recreation and Historic Sites Division's operating budget and eliminates 41 positions due to the privatization of lodge operations at Amicalola Falls, Unicoi and Red Top Mountain state parks. In addition to these appropriation changes, H.B. 1167 provides a realignment of funds in the Parks, Recreation and Historic Sites Division from operating object classes to contracts due to the privatization of conference center operations and golf course maintenance activities at the Georgia Veterans Memorial State Park in Crisp County. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $9,902,000 in bonds that relate to the Georgia Agricultural Exposition Authority for F.Y. 1998. 81 DEPARTMENT OF PUBLIC SAFETY F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATEAPPROPRIATIONS $120,662,964 $116,441,694 $115,353,569 ADJUSTED BASE--$117,868,370 FUNDS TO REDIRECT--($5,755,680) ($4,585,097) Reassigns 84 sworn positions (74 FTEs) from normal patrol to concentrated special enforcement. ($458,542) Converts the accident reporting database from the DOAS mainframe to a PC-based system. ($424,316) Eliminates 2 positions at the Police Academy; 1 at the Fire Academy; 14 part-time, 3 full-time and 3 contract positions at the Public Safety Training Center; and operating expenses. ($176,826) Reduces funds for the Peace Officer Training Grants. ($71,356) Reallocates 1 position and redirects operating expenses at the Peace Officer Standards and Training Council. ($39,543) Reduces funds in various object classes for the Firefighter Standards and Training Council ($23,368) and the Office of Highway Safety ($16,175). ADDITIONS--$5,533,413 $4,585,097 Assigns 84 troopers to create specialized collision reconstruction teams ($1,475,920), to conduct concentrated enforcement on 1-95 for drug interdiction ($374,400), for Atlanta interstates for speed and seatbelt enforcement ($1,720,410), and for Thomasville for traffic accident prevention ($1,014,367). $350,863 Provides 1 position and related expenses at the Police Academy ($54,971) and 3 instructors, expenses and basic subsistence at the Public Safety Training Center ($295,892) for the basic course in "Judgmental Use ofDeadly Force." $308,565 Maintains the accident reporting database on a PC-based system and adds 1 position and operating costs. $134,485 Increases funds for the Peace Officer Training Grants for changes to the subsistence regulation. $64,218 Adds a customer satisfaction representative and related expenses at the Public Safety Training Center. $45,492 Adds 1 instructor and operating expenses to the Fire Academy to implement statewide testing ofvolunteer firefighters. $28,518 Transfers 1 position from the Administrative Division to the Certification Division due to increasing number of applications at the Peace Officer Standards and Training Council. $16,175 Increases telecommunications for expanded communications for the Office of Highway Safety. TOTAL REDIRECTION LEVEL--$117,646,103 ENHANCEMENT FUNDS $2,211,500 Increases the number of replacement vehicles with a replacement schedule of 120,000 miles. 82 DEPARTMENT OF PUBLIC SAFETY $811,225 Allows for an increase to driver's license processing due to the renewal cycleand the impacts of instant Issuance. $261,550 Adds 3 additional driver's license renewal stations and 9 positions. $70,000 Funds sheriff's subsistence during jail officer training. $64,220 Provides 4 replacement vehicles for the Peace Officer Standards and Training Council. ($401,634) Reduces personal services :funding. TOTAL ENHANCEMENT FUNDS--$3,016,86l AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORiGINAL BUDGET--$1,088,125 $938,125 Increases :funds for driver's license processing. $150,000 Funds enhancements to the driver's license computer system and makes license layout modifications to implement H.B. 681 (Teenage Responsibility Act). In addition to the state appropriations noted above for FY98, the department is authorized to transfer $25,000 from per diem, fees and contracts to personal services. Additionally, the department is authorized to transfer from travel ($2,000), equipment ($1,850), real estate rentals ($2,000), per diem, fees and contracts ($4,000) and telecommunications ($7,000) to regular operating expenses ($6,850) and computer charges ($10,000) for the Peace Officer Standards and Training Council. 83 PUBLIC SERVICE COMMISSION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $8,567,799 $8,482,241 $8,482,241 ADWSTED BASE--$8,680,258. The adjusted base includes $115,936 for a supplemental salary adjustment for enforcement and certain support staff effective October 1, 1998. FUNDS TO REDIRECT--($237,109) ($237,109) Reduces various object classes. TOTAL REDIRECTION LEVEL--$8,443,149 ENHANCEMENT FUNDS $106,650 Adds 7 enforcement officers, equipment and motor vehicles to the Motor Carrier Safety Assistance Program (total fimds: $533,247). $18,000 Provides fimds for an automated telephone answering system for the Consumer Information Section. TOTAL ENHANCEMENT FUNDS--$124,650 In addition to the state appropriations noted above, the commission is authorized to transfer $35,136 from per diem, fees and contracts to personal services for an administrative assistant to the chairman ofthe commission. 84 REGENTS, UNIVERSITY SYSTEM OF GEORGIA F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $1,558,394,104 $1,523,225,329 $1,465,335,169 ADJUSTED BASE--$1,494,140,028 (state general funds only.) The adjusted base includes $69,814,037 to provide funds for an average six percent merit salary increase for University System employees, effective September 1, 1998 for non-academic and academic personnel. FUNDS TO REDIRECT--($70,351,740) ($62,000,000) Reduces funding at the system level from pure enrollment driven allocations and at the institution level from low priority academic programs, and administrative and other support areas. ($1,986,070) Redirects low priority research projects ($1,536,471) and administrative support ($449,599) from the Agricultural Experiment Stations. ($1,681,000) Reduces personal services ($1,164,166) and supplies ($516,834) from the Medical College of Georgia Hospital and Clinics. ($1,609,168) Reduces staff support and operating funds ($1,220,478) and reduces support for county positions ($388,690) in the Cooperative Extension Service. ($813,628) Redirects funding for the Joint Board of Family Practice for SREB Payments ($281,000), Satilla Regional Medical Center ($110,000), and Residency Capitation Grants ($422,628). ($385,475) Removes 4 staffmg positions from comprehensive planning ($355,000), and 3 slots for veterinary medicine at Tuskegee Institute ($30,475) from Regents' Central Office. ($309,454) Redirects research positions ($151,586) and operating funds ($157,868) from the Georgia Tech Research Institute. ($244,156) Removes personal services ($210,406) and operating funds ($33,750) from the Economic Development Institute. ($231,882) Reduces funds for 4 transmitter engineers at the Georgia Public Telecommunications Commission (GPTe). ($225,000) Redirects funds for program acquisition. ($108,903) Redirects personal service funds in marketing and consulting at the Advance Technology Development Center. ($102,607) Removes 1 animal care position ($22,163), graduate support ($19,222), and non-poultry research support ($61,222) at the Veterinary Medicine Experiment Station. ($84,447) Redirects personal services ($58,500) and equipment replacement funds ($25,947) from Skidaway Institute of Oceanography. ($80,000) Reduces funds for matching scholarships at the State Medical Education Board. 85 REGENTS, UNIVERSITY SYSTEM OF GEORGIA $44,000 TEACHER SALARY PROJECTIONS Based on SREB Salary Estimates $42,000 $40,000 $38,000 $36,000 .......... --- -- ............ --- ....... --- _... $34,000 $32,000 FY96 FY97 FY98 FY99 FYOO Georgia - .. - Virginia ....... U.S. ($78,300) ($72,948) ($63,693) ($50,284) ($49,601) ($47,057) ($46,599) ($37,081) ($26,794) ($17,593) Redirects funds from research projects in ergonomics and X-rays at the Agricultural Technology Research Program. Removes funding for a public relations coordinator ($32,448), a marine fisheries position ($21,300), and a marine education position ($19,200) at the Marine Extension Service. Reduces funds from supplies and materials, operating expenses and equipment at Georgia Military College. Reduces personal services at the Marine Institute. Redirects personal services ($35,000) and funds for the Center for Rehabilitation Technology, Incorporated ($14,601). Reduces funding for the production of the Minority Suppliers Directory. Redirects research funds at the Veterinary Medicine Agricultural Research program. Reduces staff support for wildlife resource management in Forestry Research. Redirects funds for equipment maintenance and technology at the Veterinary Medicine Teaching Hospital. Redirects personal services from the Student Education Enrichment Program. 86 REGENTS, UNIVERSITY SYSTEM OF GEORGIA ADDITIONS--$70,248,727 $62,000,000 Provides funds at the system level for patterns of national excellence, collaboration, strategic admissions, retention and graduation initiatives and at the institution level to high priority academic programs, direct instruction and services to students. $1,986,070 Expands research projects ($1,181,552), develops new research projects ($666,106), and provides short-term interdiscipline problem solving teams ($138,412) at the Agricultural Experiment Stations. $1,681,000 Provides funds to continue current operation and support graduate medical education at the Medical College of Georgia Hospital and Clinics. $785,046 Provides funds to increase the Family Practice Capitation rate ($447,796), the Pediatric Residency Capitation rate ($60,000), and the Joint Board of Family Practice Residency Capitation rate ($277,250). $704,000 Funds additional agriculture, family and consumer science, and 4-H agents ($647,680) and increases travel for new positions ($56,320) in the Cooperative Extension Service. $465,668 Creates livestock support positions in Tifton and Statesboro ($125,668), funds a forestry position in Statesboro ($90,000), funds 14 4-H program assistants ($150,000), and adds support for the vegetable industry and horticulture ($100,000) in the Cooperative Extension Service. $439,500 Provides funds to complete the Technology Center ($314,500), and to create an Insect, Weed and Disease Identification Support Unit in Tifton ($125,000) in the Cooperative Extension Service. $355,000 Funds staffing positions to develop policy direction for teacher education programs at Regents' Central Office. $309,454 Provides capital and implements a cost recovery system to improve efficiency and attract sponsored research funding at the Georgia Tech Research Institute. $239,400 Provides funds for utility cost increases in the new GPTC facility. $231,882 Provides funds to GPTC for 4 distance learning production engineers. $147,000 Provides funds for a full-time specialistin internationaltrade ($39,500), retrains existing staffto assist businesses with human resource development ($40,000), and supplements manufacturing research programs ($67,500) at the Economic Development Institute. $108,903 Provides funds for a virtual incubator manager and part-time consulting positions at the Advanced Technology Development Center. $102,607 $84,447 $80,000 Repairs and renovates an incinerator ($20,000), funds emerging disease and food safety research ($37,222) and poultry waste disposal research ($21,385), and provides faculty research support ($24,000) at the Veterinary Medicine Experiment Station. Enhances technology improvements in coordination with the University System of Georgia's new financial information system at Skidaway Institute of Oceanography. Enhances funds for the State Loan Repayment Program at the State Medical Education Board. 87 $78,300 $72,948 $63,693 $50,284 $49,601 $47,057 $46,599 $38,800 $37,081 $26,794 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Provides funds to initiate new poultry processing technology at the Agricultural Technology Research Program. Creates a GSAMS marine educator position ($35,500) and an economic development specialist ($37,448) at the Marine Extension Service. Provides funding for middle and high school education programs at Georgia Military College. Purchases GSAMS equipment ($32,284), 1 van for long distance travel ($15,000), and supplies and field sampling equipment ($3,000) at the Marine Institute. Provides support personnel ($47,771) and supplies ($1,830) for the Advanced Wood Products Laboratory at the Center for Rehabilitation Technology, Incorporated. Establishes a business consultant position in Savannah at the Office of Minority Business Enterprises. Provides research funds to control food-borne illnesses for the Veterinary Medicine Agricultural Research program. Increases operating expenses ($6,000) and increases funding for SREB Payments ($32,800) at the Joint Board of Family Practice. Increases staff support for intensive forestry management research at Forestry Research. Provides funds to convert to a digital medical records system at the Veterinary Medicine Teaching Hospital. Architect's rendering o/the new Science Building at Gainesville College 88 REGENTS, UNIVERSITY SYSTEM OF GEORGIA $17,593 Increases support for recruitment activities, travel for college visitations, and publications and printing for the Student Education Enrichment Program. TOTAL REDIRECTION LEVEL--$1,494,037,015 ENHANCEMENT FUNDS $10,200,000 Funds formula increases related to enrollment and increases in other operating costs. $6,000,000 Provides additional support to preserve and upgrade the technology infrastructure, designating $1 million for training faculty and staff in the use of technology. $4,235,000 Supports the Governor's TraditionalIndustries Program ($3,935,000) and the Georgia Environmental Partnership ($300,000). $2,500,000 Provides funds for endowed chairs at Armstrong Atlantic State University in Economics, Columbus State University in Latin studies, Georgia Southern in Mathematics/ComputerScience and two chairs at Macon College in Information Technology. $2,400,000 Provides additional support for the Major Repairs and Rehabilitation Fund by changing the formula from 0.95% to 1% ofF.Y. 1997 replacement value of $4,777,443,410. $2,400,000 Provides funds for the Partners in Success Initiative: $1,000,000 to expand the Post-Secondary Readiness Enrichment Program (PREP), $600,000 to expand the mentoring program, and $800,000 to support programs for gifted and talented high school students at State University of West Georgia and Middle Georgia College. $2,000,000 Provides funds to purchase modular facilities at Georgia Southern University. $2,000,000 Develops a Statewide Desktop Distance Learning network pilot program which will provide on-line, non-credit courses for working professionals in Georgia. $1,350,000 Funds support services to increase enrollment at Morehouse Medical College. $1,203,230 Provides funding that allows faculty to apply accrued sick leave toward retirement. $840,000 Provides additional funds for Georgia's Intellectual Capital Partnership Program (ICAPP) to develop a curriculum in computer related disciplines for delivery on the internet and in classrooms. $609,705 Provides maintenance and operating funds at the Agricultural Experiment Stations. $600,000 Provides funds for the Year 2000 census data compilation at the Georgia Tech State Data Center ($450,000) and welfare reform research at the Carl Vinson Institute of Government ($150,000). $470,000 $450,000 $366,000 $278,509 Provides additional operating funds for state Economic Development Institute offices. Increases funding in the Mercer Medical School Grant. Provides funds for the Carl Vinson Institute of Government - Center for Democratic Government. Provides funds for the Georgia Tech Research Institute to support the Foundations of the Future program to assist local school systems with telecommunications and technology innovation in the classroom. 89 REGENTS, UNIVERSITY SYSTEM OF GEORGIA $257,510 $250,000 $250,000 $175,000 $150,000 $85,832 $61,032 $50,000 $50,000 $37,246 $30,000 $30,000 $28,000 $25,000 $21,360 $15,887 $10,528 Provides funds to GPTC for the balance of the satellite maintenance agreement. Provides for 4 positions and related costs for a pilot program in "Strengthening Georgia's Families and Communities" at the University of Georgia. Provides a grant to operate and equip the Georgia Military College postsecondary program through SREB. Expands Forestry Research including support personnel and operational costs. Provides funds for an economic development consortium with Valdosta State, Albany State and Georgia Southwestern Universities. Provides funds for the improvement of animal care facilities ($45,832) and equipment for the detection of avian diseases ($40,000). Provides funding for salary and step adjustments in the high school and middle school at Georgia Military College. Provides funds for the development of the Cartersville campus of Floyd College. Increases funding for the State Loan Repayment program with the State Medical Education Board. Provides funds to upgrade isolator units to meet American Association of Laboratory Animal Care standards at the Veterinary Medicine Experiment Station. Provides matching funds for 20 freshman preceptorships in General Internal Medicine in the Joint Board of Family Practice. Provides funding for African-American economic summits in the Small Business Development Center at the University of Georgia. Provides funds to purchase and install 2 chemical fume hoods at the Marine Institute. Provides funds to renovate the Old Governor's Mansion at Georgia College and State University. Provides funds for planning for a facility at the University of Georgia. Provides additional operating funds to GPTC. Provides funds to purchase computer hardware and software for the main campus in Georgia Military College. ($1,757,750) Provides funds for payback projects at Georgia Tech ($890,000) and Valdosta State ($867,750). TOTAL ENHANCEMENT FUNDS (state general funds)--$37,672,089 90 REGENTS, UNIVERSITY SYSTEM OF GEORGIA STATE LOTTERY FUNDS ENHANCEMENT FUNDS $15,000,000 Provides continuation funding for the Equipment, Technology and Construction Trust Fund with $3 million designated for "B" Unit activities. $7,466,000 Provides continuation funding for Chancellor's Initiatives: Connecting Teachers and Technology ($4,820,000); Connecting Students and Services ($527,000); GALILEO ($1,939,000) and P-16/PREP ($180,000). $2,219,000 Provides continuation funding for the Internet Connectivity initiative. $2,000,000 Provides funds for the purchase of educational programming at GPTC. TOTAL ENHANCMENT FUNDS (lottery funds)--$26,685,000 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $208,385,000 in bonds that relate to Regents, University System of Georgia for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$57,890,160 $42,368,064 Provides funding for the Georgia Research Alliance including 3 eminent scholars ($2,250,000), facilities ($12,465,000), equipment ($21,710,000), projects ($500,000), and lapsed project funding from F.Y. 1997 ($5,443,064). $5,000,000 Increases funding for instructional technology. $4,900,000 Provides construction funds for an Animal Science Arena at the University of Georgia. $2,000,000 Provides lottery funds for a statewide interconnected library system. $1,838,096 Provides funds for the Georgia Public Telecommunications Commission including a new public radio station at North Georgia College and State University ($83,000), additional support for the satellite dish maintenance program ($257,510), pilot funds for a Web-based resource service ($750,000), distance learning needs assessment ($150,000), and operating and equipment funds for the new GPTC facility ($597,586). $750,000 Funds provided for the maintenance and operation of facilities at Agricultural Experiment Stations and the Cooperative Extension Service. $450,000 Provides funds for library and technology enhancements at Morehouse Medical School. $350,000 Increases funding for the Small Business Development Center at the University of Georgia. $120,000 Funds planning and design of a physical education facility at East Georgia College. $114,000 Funds hydrological research at the Skidaway Institute of Oceanography. 91 RETIREMENT SYSTEMS EMPLOYEES' RETIREMENT SYSTEM F.Y. 1999 STATE APPROPRIATIONS $673,425 ADJUSTED BASE--None ADDITIONS--$673,425 $673,425 Provides ftmds for the net impact of legislation on the Employees' Retirement System. Legislation includes House Bills 661,944, 1096 and 1103, and Senate Bill 326. TOTAL REDIRECTION LEVEL--$673,425 In addition, a budget of $4,583,074 is authorized for the administration ofthe Employers' Retirement System. However, no state ftmds are appropriated for this purpose. The system operates from investments. PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $17,642,000 $15,110,000 $15,110,000 ADJUSTED BASE--$15,11O,000 ADDITIONS--$2,532,000 $2,532,000 Adds ftmding to increase the state contribution from $9.50 to $9.75 per participant to provide an increase in benefits. TOTAL REDIRECTION LEVEL--$17,642,000 TEACHERS' RETIREMENT SYSTEM F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $3,800,000 $4,070,000 $4,070,000 ADJUSTED BASE--$4,070,000 FUNDS TO REDIRECT -- ($270,000) ($200,000) Adjusts the Cost of Living (COL) increase for local system retirees. ($70,000) Adjusts the floor ftmd for local system retirees. TOTAL REDIRECTION LEVEL--$3,800,OOO In addition, a budget of $7,701,170 is authorized for the administration ofthe Teachers' Retirement System. However, no state ftmds are appropriated for this purpose. The system operates on income from investments. 92 DEPARTMENT OF REVENUE F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $99,993,513 $107,725,873 $96,358,751 ADmSTED BASE--$98,528,513 FUNDS TO REDIRECT--($1,265,292) ($410,000) Reassigns tax specialist (6 positions) to conduct a new targeted audit program of small retailers and service businesses not audited cyclically. ($250,000) Replaces temporary employees (18 positions) with full-time positions (12 positions) for year-round staggered tag processing. ($230,000) Discontinues the in-house printing of motor vehicle registration renewals (pre-bills) and contracts the function. ($175,792) Reassigns revenue enforcement officers (4 positions) to conduct a proactive effort to reduce underage drinking and other alcohol violations. ($138,000) Reduces travel by implementing a computer-assisted audit program. ($61,500) Reduces equipment purchases in the motor vehicle division. ADDITIONS--$1,203,792 $410,000 Reassigns tax specialist (6 positions) to conduct a new audit program targeted at businesses where voluntary compliance needs improvement. $250,000 Adds permanent employees (12 positions) to replace temporary employees for year-round staggered tag processmg. $230,000 Provides funds to contract for the printing of motor vehicle registration renewals (pre-bills). $175,792 Assigns 4 revenue enforcement officers to conduct concentrated and comprehensive compliance investigations. $138,000 Implements a computer-assisted audit program recommended in the Blueprint for Modernization. TOTAL REDIRECTION LEVEL--$98,467,013 ENHANCEMENT FUNDS $1,350,000 Adds 25 positions (20 programmers, 5 managers) to support the department's computer systems. $90,000 Provides funds to build a data warehouse to allow the Georgia Crime Information Center (GCIC) uninterrupted inquiry of the new motor vehicle database. $86,500 Replaces 4 vehicles with over 125,000 miles. TOTAL ENHANCEMENT FUNDS--$1,526,500 93 DEPARTMENT OF REVENUE AMENDED F.Y. 1998 BUDGET IDGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$11,367,122 $3,986,500 Enhances the capability of the imaging system to process all tax returns by January 1, 1999. $3,000,000 Provides contract funds to support the modernization ofthe department's computer systems. $1,000,000 Increases funds for DOAS computer charges needed for testing and other developmental efforts as part ofthe modernization process. $899,290 $750,000 Adds funds required to complete the Sales Tax rewrite. Provides additional employer contributions for County Tax Officials Retirement for fiscal years 1997 and 1998 and prior years for county tax officials. $564,000 Funds the increased cost ofthe new ST-3 Sales Tax Report fonn. $546,332 Implements a data warehousing project to provide upgraded reporting, compliance analysis and access to data for analysis and projections. $238,500 $200,000 Provides funds to manufacture an additional 150,000 wildlife license plates. Designs a customer service center to provide taxpayer assistance and allow tax field agents to concentrate on collections. $182,500 Prints and mails 250,000 infonnation packages to Georgia employers to notify them ofnew withholding filing requirements starting in F. Y. 1998. 94 OFFICE OF SECRETARY OF STATE F,Y. 1999 STATE APPROPRIATIONS """",,,,,,,,,,,,,,,,,, ,, ,, $31,481,981 F.Y. 1998 AMENDED STATE APPROPRIATIONS"""."" """"" .. """"." """" $31,022,046 F.Y. 1998 ORIGINAL STATE APPROPRIATIONS""""""" .. """"".....".""""."".".""" $31,037,511 ADmSTED BASE--$31,144,3 50 FUNDS TO REDIRECT--($1,202,383) ($522,080) Reflects savings from a change in the State Examining Boards' examination contract and reduction in operating expenses. ($386,817) Reduces operating expenses and eliminates 2 positions due to technology enhancements and computerization of procedures. ($196,981) Suspends certain election mailings and publications and reduces operating expenses. ($96,505) Eliminates 2 state record center positions and temporary help ($85~860) and reduces the contract for operation ofthe Georgia Historical Society - Savannah Branch ($10,645). ADDITIONS--$1,236,514 $387,192 Provides additional funding for operating expenses ($149,000), equipment ($33,192), enhancements to the Medical Board's computer system ($145,000) and case/peer reviews ($60,000). $386,817 Adds 2 computer administrators ($112,016), technology enhancements ($206,097), and 2 positions for the Securities Division to assist with audits and examinations ($68,704). $225,000 Increases computer charges for the statewide voter registration system ($112,500) and election expense for special elections and printing of election forms ($112,500). $100,000 Allows for enhancements to the Georgia Holocaust Education Project. $96,505 Adds funding for grants to counties for records preservation ($20,645) and contracts with a records management company to manage the State's Records Center ($75,860). $41,000 Provides for 1 inspector and related expenses for the Used Motor Vehicle and Used Parts Dealers' Board. TOTAL REDIRECTION LEVEL--$31,178,481 ENHANCEMENT FUNDS $281,000 Produces the Georgia Capitol Orientation film for the State Education Center. $18,000 Provides for the storage of the Capitol Museum's artifacts during Capitol renovation. $4,500 Allows for a consultant to train teachers in the issues ofholocaust, diversity and prejudice reduction. TOTAL ENHANCEMENT FUNDS--$303,500 95 OFFICE OF SECRETARY OF STATE AMENDED KY. 1998 BUDGET illGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--($15,465) $152,735 Allows for the reprinting or creation of election fonns due to changes in the absentee ballot and voter identification laws. $50,000 Provides ftmds for the temporary relocation of staff due to renovations planned for the Archives Building. $40,000 Replaces 2 vehicles for the Drugs and Narcotics Agency. $26,800 Develops infonnational videos and instruction manuals to infonn the general public and elections officials about the new voter identification requirements. $15,000 Funds enhancements to the Medical Board's computer system. ($300,000) Reflects an adjustment to personal services. 96 STATE SOIL AND WATER CONSERVATION COMMISSION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $2,194,317 $2,132,890 $2,132,890 ADJUSTED BASE--$2,194,317 FUNDS TO REDIRECT--($128,500) ($50,000) Reduces the number of County Conservation Grants from 15 to 11 counties, leaving $121,500 in this program. ($33,464) Reflects savings generated by upgrading computers and establishing network access. ($20,000) Reduces per diem, fees and contracts by reducing watershed dam maintenance costs ($15,000), district board members per diem ($1,000) and election holder services ($4,000). ($13,534) Eliminates funds for motor vehicle purchases. ($10,400) Reduces agency operating expenses to reflect fewer district supervisor elections this year ($4,700), as well as anticipated savings in equipment ($4,500) and regular operating expenses ($1,200). ($1,102) Reduces temporary help funds in District and Regional Offices. ADDITIONS--$128,500 $103,700 Funds two Resource Specialist positions and related expenses to provide assistance in the Atlanta and Albany regional offices. $17,390 Provides funding for the relocation of the Region III (Atlanta) office. $7,410 Provides additional funds for photocopierrental, postage meter rental, and the purchase of educational materials. TOTAL REDIRECTION LEVEL--$2,194,317 AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$O H.B. 1167 provides for a transfer of funds from County Conservation Grants, regular operating expenses, motor vehicle purchases and telecommunications to real estate rentals and equipment to fund the relocation of the Atlanta Regional Office. 97 GEORGIA STUDENT FINANCE COMMISSION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $251,026,535 $238,062,683 $208,845,430 ADJUSTED BASE--$250,679,065 ($33,631,100 state general funds, $217,047,965 state lottery funds) STATE GENERAL FUNDS FUNDS TO REDIRECT--($1,667,816) ($946,436) Reduces funding for the Guaranteed Educational Loan Program by reducing the number of service-cancelable loans available for career areas no longer in critical demand. ($721,380) Continues phasing out the Student Incentive Grant program. ADDITIONS--$1,158,566 $617,816 Increases Guaranteed Educational Loans to continue providing service-cancelable loans for students under the Intellectual Capital Partnership Program (ICAPP) and to continue providing nursing loans at 74% of the current level. $540,750 Provides funding to initiate the Work Incentive for Student Education (WISE) program, a pilot program providing a student an opportunity to earn up to $1,545 per academic year toward college expenses for working on campus. TOTAL REDIRECTION LEVEL--$33,121,850 ENHANCEMENT FUNDS $100,000 Provides funding for National Guard tuition-cancelable loans as authorized by House Bill 1516. $75,300 Funds I position and related expenses, for the purpose of conducting site visits to regulated institutions, for the Georgia Nonpublic Postsecondary Education Commission. $75,000 Increases contracts for the Georgia Nonpublic Postsecondary Education Commission to automate ,the student record transmission process and establish a student record database. $68,500 Provides funding for scholarships to be awarded to graduates of Georgia Military College to attend North Georgia University. $37,920 Provides for a projected emollment increase in the Tuition Equalization Grant program for students emolled in eligible private colleges. TOTAL ENHANCEMENT FUNDS--$356,720 ENHANCEMENT FUNDS STATE LOTTERY FUNDS $500,000 Provides reimbursement funding for HOPE scholarships including tuition, books and mandatory fees for home-schooled students with a B grade point average after 45 quarter hours of college work. 98 GEORGIA STUDENT FINANCE COMMISSION TOTAL ENHANCEMENT FUNDS (state lottery funds)--$500,000 AMENDED KY. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$29,217,253 LOTTERY FUNDS $18,763,841 $12,579,275 Increases funding for projected awards for HOPE tuition, books and fees at public colleges and technical schools to include $500,000 for home-schooled students and $1,424,325 for a technology fee pilot project at 6 University System institutions. Provides additional funding for HOPE Private College Scholarships for eligible students attending private colleges. ($2,125,863) Reduces thnding for Promise Scholarships ($1,096,554), HOPE Tuition Equalization Grants ($584,029), Engineer Scholarships ($330,000) and Georgia Military College Scholarships (115,280) to reflect actual program participation. 99 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION F.Y. 1999 STATE APPROPRIATIONS F.y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $271,008,342 $241,792,065 $231,621,569 ADJUSTED BASE--$240,127,463 (state general funds only). The adjusted base includes $10,487,927 to provide for a 6% salary increase for teachers. FUNDS TO REDiRECT--($8,113,129) ($6,397,311) Eliminates 44 instructional and 46 non-instructional positions and reduces 96 contracts for services at the state technical institutes. ($562,596) Reduces Adult Literacy grant funds. ($418,955) Redirects Quick Start funding due to a continuing reduction in cost per trainee. ($287,348) Eliminates 2 instructional and 3 non-instructional positions at Gwinnett Tech. ($147,091) Eliminates 3 instructional positions and reassigns 2 instructional positions in the Regents Program. ($144,828) Decreases computer charges for Oracle database maintenance. ($155,000) Reduces the contract for the statewide database of library holdings. ADDITIONS--$1 0,505 ,454 $3,734,745 Annualizes 290 new positions and operating costs for facilities under construction scheduled to open in F.y. 1998: Albany-Early County satellite; Altamaha-Appling County satellite; Athens-Elbert County satellite; Augusta-McDuffie County satellite; Chattahoochee Tech; Coosa Valley-Polk County satellite; Heart of Georgia-Dodge County satellite; Lanier-Forsyth County satellite; Moultrie-Tift County satellite; North Georgia Tech; North Georgia-Union County satellite; South Georgia-Crisp County satellite; and Thomas Tech. $1,378,465 Funds 50 instructional and 51 non-instructional positions for the following facilities under construction scheduled to open in F.Y. 1999: Augusta-Burke County satellite; Coosa Valley-Gordon County satellite; Heart of Georgia-Dublin business and industry training center; and an Ogeechee Tech classroom building. $1,295,457 Annualizes the cost of the databases and operating costs for GALILEO at public libraries (also see enhancements) . $1,126,540 Completes the 2-year phase-in of Atlanta Tech to state management. $562,596 Provides funds to hire 110 part-time adult literacy teachers to improve the delivery of community literacy services. $515,200 Completes the 2-year phase-in of Savannah Tech to state management. $494,579 Provides personnel and operating funds to expand 7 existing instructional programs at state technical institutes (also see lottery funds). $418,955 Funds an increased number of Quick Start projects. 100 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION DEPARTMENT OF TECHNICAL AND ADULT EDUCATION CREDIT ENROLLMENT GROWTH 90,000 80,000 70,000 [J Technical Certificates 60,000 50,000 40,000 .. Developmental Studies/General Core* o DiplomalDegree 30,000 20,000 mTotal Credit 10,000 FY FY FY FY FY FY FY 1991 1992 1993 1994 1995 1996 1997 *Students in developmental studies, or in core classes while undecided or on a waiting list for a particular program. $250,000 Provides for equipment for the Camilla Adult Learning Center of Thomas Tech. $247,013 Funds 3 technical support positions and 1 secretary in order to upgrade the existing information system so that the department can offer classes via the Internet. $188,866 Supplants local funds for Medicare payments for public librarians. $171,356 Funds HB 203 to allow one-half of accrued sick leave for credited service with minimum 3 months creditable service required at retirement. $52,815 Funds the cost of additional rent for the relocation of the Office of Public Library Services. $45,550 Adds operating funds to open a new plastics technology program at Gwinnett Tech (also see lottery funds). $23,317 Adds personal services funds to start a new certificate program in computer aided design (CAD) at Clayton College and State University (also see lottery funds). TOTAL REDIRECTION LEVEL--$242,519,788 ENHANCEMENT FUNDS $1,204,108 Provides the remaining funds to annualize 290 new positions and operating costs for facilities under construction scheduled to open in F.Y. 1998: Albany-Early County satellite; Altamaha-Appling County satellite; Athens-Elbert County satellite; Augusta-McDuffie County satellite; Chattahoochee Tech; Coosa Valley-Polk County satellite; Heart of Georgia-Dodge County satellite; Lanier-Forsyth County satellite; Moultrie-Tift County satellite; North Georgia Tech; North Georgia-Union County satellite; South Georgia-Crisp County satellite; and Thomas Tech. 101 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION $677,970 Adds personal services funds for 12 positions to expand the Certified Specialist programs at 8 state technical institutes and Gwinnett Tech. $519,000 Annualizes the cost ofthe databases and operating costs for GALILEO at state technical institutes and satellite facilities. $485,000 Provides institutional funding to support the GEICO project in Bibb County. $400,000 Completes the renovation/construction of the main branch of the Chatham-Effmgham-Liberty Regional Library. $224,845 Funds the standardization of technical institute software and information systems in order to provide Internet-based instruction. $209,496 Completes the annualization of database and operating costs for GALILEO at public libraries. $200,000 Funds a needs assessment and facility study for the Library ofthe Blind and Physically Handicapped. $103,789 Provides a salary increase for 86 state-funded librarians. $80,000 Funds the planning and design of renovations to the Glynn County Library. TOTAL ENHANCEMENT FUNDS (state general funds) --$4,104,208 The new Forsyth County Satellite Center ofthe Lanier Technical Institute. 102 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION LOTTERY FUNDS $8,889,303 Equips new facilities opening in F.Y. 1999: Augusta-Burke County satellite ($3,096,221); Coosa Valley-Gordon County satellite ($996,491); Heart of Georgia-Dublin business and industry training center ($900,700); and an Ogeechee Tech classroom building ($3,895,891). $6,000,000 Funds renovation to facilities at North ($3.6 million) and South Georgia Tech ($2.4 million). $5,100,000 Provides for the purchase of equipment for facilities scheduled to open in F.Y. 1999: Albany-Early County satellite ($425,000); Altamaha-Appling County satellite ($1,100,000); Coosa Valley-Polk County satellite ($425,000); Heart of Georgia-Eastman satellite ($425,000); North Georgia-Union County satellite ($1,900,000); and South Georgia-Crisp County satellite ($825,000). $3,100,000 Allows for the purchase of equipment for facilities scheduled to open in late F.Y. 1998 or F.y. 1999: Augusta-McDuffie County satellite ($900,000), Lanier-Forsyth County satellite ($1,800,000); and Macon-Milledgeville satellite ($400,000). $1,295,043 Allows for the purchase of equipment needed for the expansion of 7 existing instructional programs at state technical institutes, as well as for new and expanded programs at Gwinnett Tech ($245,000) and Clayton College and State University ($63,000). TOTAL ENHANCEMENT FUNDS (lottery funds) -- $24,384,346 See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $21,070,000 in bonds that relate to the Department of Technical and Adult Education for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$ 10, 170,496 $10,000,000 Provides for an increase in public library holdings by more than 450,000 books based on population and circulation per capita. $1,685,246 Funds an increase in Quick Start project activity. $100,000 Funds professional services to enhance the Summer Reading program at public libraries. $100,000 Funds enhancements to local Summer Reading programs at public libraries. $60,000 Allows for roof replacement at the Cartersville, Bartow County Library. $45,000 Funds a statewide study of public library facility needs. ($1,669,750) Reduces funds for construction projects (facilities scheduled to open in F.Y. 1998) due to delays. ($150,000) Reduces grants for salaries and travel of public librarians. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $2,550,000 in bonds that relate to the Department of Technical and Adult Education for F.Y. 1998. 103 DEPARTMENT OF TRANSPORTATION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $564,751,771 $606,922,083 $542,507,217 ADJUSTED BASE--$544,614,820 FUNDS TO REDIRECT--($363,773) ($293,628) Reduces state funds in Intermodal Transfer Facilities for grants to local areas for transit capital programs. ($69,145) Reduces state general funds for routine maintenance of the Savannah Harbor dikes. ($1,000) Replaces state funds with an increase in agency bus rental receipts. ADDITIONS--$20,341,410 $9,096,691 Increases motor fuel funds in motor fuel activities for pay for performance. $4,808,018 Provides motor fuel funds for other operating expenses in motor fuel activities, including per diem, fees and contracts ($3,696,806) to restock the supply of completed roadway plans, motor vehicle expenses ($795,742), telecommunications ($173,500), contracts ($134,770) to provide a radio operator at the Georgia Emergency Management Agency, and equipment purchases ($7,200). $2,505,599 Increases motor fuel funds for regular operating expenses ($2,251,199) and telecommunications ($254,400) at the Traffic Management Center. $2,401,034 Increases motor fuel funds for the phase II development of a Transportation Information System ($1,367,500), computerization of district offices ($983,534) and software revisions for the Traffic Management Center ($50,000). $1,170,068 Increases in motor fuel funds for capital outlay projects of greatest need ($7,727,026) and renovation of departmental buildings ($1,443,042) offset by a reduction of $8,000,000 in the Motor Fuel Tax estimate, bringing the motor fuel tax annual operating budget to $592,000,000. $360,000 Provides state funding to overhaul 4 aircraft engines. TOTAL REDIRECTION LEVEL--$564,592,457 ENHANCEMENT FUNDS $91,250 Increases state funding for the Georgia Rail Passenger Authority for operating expenses ($11,250) and to initiate a statewide community awareness campaign for the rail plan project ($80,000). $68,064 Adds state funds for two aircraft mechanic positions in Air Transportation. TOTAL ENHANCEMENT FUNDS--$159,314 104 DEPARTMENT OF TRANSPORTATION In addition to the state appropriations noted above, the department is authorized to assume responsibility for maintenance and operation of 9 state visitor information centers located along routes entering the interstate. Further, the department is authorized to use existing funds to assume responsibility for this function, including the authorization for 37 positions plus related costs, which is transferred from the Department of Industry, Trade and Tourism. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $15,000,000 in bonds that relate to the Department of Transportation for F.Y. 1999. 105 DEPARTMENT OF TRANSPORTATION AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$64,414,866 $35,000,000 Increases state funds for the regional airport enhancement initiative that will enable 20 general aviation airports to be upgraded to a top rated general aviation airport (Level III) that can accommodate corporate jets. $15,674,866 Adds the excess of motor fuel funds collected for the construction of 4-lane roads and passing lanes. $4,500,000 Adds the excess of motor fuel funds collected for the Local Assistance Road Program (LARP). $4,500,000 Adds the excess of motor fuel funds collected for county contracts to aid local governments in the construction of local roads. $4,300,000 Increases state funding for the Georgia Rail Passenger Authority for planning, environmental analysis and design for an Athens to Atlanta commuter rail line. The state is advance-funding the federal share ($700,000) of the environmental analysis in order to speed up the federal approval process in implementing the commuter rail system for metro Atlanta. $350,000 Increases state funds for improvements to Athens Airport. $90,000 Adds state funds to contract for an audit of MARTA's safety plan. See the section on "State of Georgia General Obligation Debt Sinking Fund" for information about $164,660,000 in bonds that relate to the Department of Transportation for F.Y. 1998. 106 DEPARTMENT OF VETERANS SERVICE F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $19,770,431 $20,481,548 $19,795,288 ADJUSTED BASE--$20,272,301 FUNDS TO REDIRECT--($1,358,859) ($472,100) Reduces regular operating expenses for projects and insurance to reflect projected expenditures. ($451,481) Reduces personal services at the Georgia War Veterans Nursing Home in Augusta. ($345,389) Decreases personal services, regular operating expenses and equipment to reflect projected expenditures. ($89,889) Reduces state funds due to a projected increase in federal funds. ADDITIONS--$487,489 $250,000 Provides funding for regular operating expenses at the Georgia War Veterans Nursing Home in Augusta. $160,000 Funds patient care costs when federal reimbursement is not available (e.g., patient bed days provided while resident is hospitalized). $50,545 Provides additional funding for regular operating expenses, telecommunications, computer charges and real estate rentals. $26,944 Increases funding for equipment purchases at the Augusta and Milledgeville nursing homes. TOTAL REDIRECTION LEVEL--$ 19,400,93 1 ENHANCEMENT FUNDS $369,500 Provides funds for fire and safety code corrections at the Georgia War Veterans Nursing Home in Milledgeville. TOTAL ENHANCEMENT FUNDS -- $369,500 See section on "State of Georgia General Obligation Debt Sinking Fund" for information about $640,000 in bonds that relate to the Department of Veterans Service for F.Y. 1999. AMENDED F.Y. 1998 BUDGET HIGHLIGHTS NET CHANGE IN FUNDING FROM ORIGINAL BUDGET--$686,260 $686,260 Funds the development and construction of a state veterans' cemetery in Milledgeville. 107 STATE BOARD OF WORKERS' COMPENSATION F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $11,504,420 $10,918,457 $10,918,457 ADJUSTED BASE-- $11,368,979 FUNDS TO REDIRECT--($557,525) ($512,373) Reorganizes 10 positions and supporting costs. Positions include 1 administrative assistant, 1 operations manager, 2 secretaries and 6 claims examiners. ($45,152) Reduces per diem, fees and contracts, and equipment funding to reflect lower than expected costs. ADDITIONS--$550,606 $280,391 Transfers 6 positions from the Legal Division to the Appellate Division. $155,705 Adds 2 positions to the Clerk's Office and transfers a secretary to the Appellate Division. $63,181 Adds an additional workers' compensation investigator to the Fraud and Compliance Division. $51,329 Covers funding deficits in supplies, printing, travel, and telecommunications for the entire agency. TOTAL REDIRECTION LEVEL--$11,362,060 ENHANCEMENT FUNDS $88,000 Funds an increase in real estate rental cost for the central office. $54,360 Replaces 2 copiers. TOTAL ENHANCEMENT FUNDS -- $142,360 108 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND F.Y. 1999 STATE APPROPRIATIONS F.Y. 1998 AMENDED STATE APPROPRIATIONS F.Y. 1998 ORIGINAL STATE APPROPRIATIONS $412,050,710 $596,125,028 $393,727,614 EXISTING OBLIGATIONS--$364,91O,630. The appropriation reflects a net decrease of $6,350,000 due to an adjus1ment of $5,000,000 on the required debt service ftmding for F.Y. 1999 and an adjus1ment on the existing debt service by reflecting anticipated savings from a proposed F.Y. 1998 bond sale. In addition, $26,500,000 from bonds previously authorized and issued from the 1995B issue ($6,500,000) and the 1996C issue ($20,000,000) for the Trinity-Washington Building are being redirected to renovation projects in various buildings in the Capitol Hill area. ENHANCEMENT FUNDS--$47,140,080. These ftmds include $650,520 that was earmarked by the General Assembly to use $2,780,000 in 5-year bond proceeds to purchase equipment for new and modified vocational high school laboratories in the Depar1ment of Education. Governor Miller vetoed the authorization, but the $650,520 was not vetoed. The following new bond issues are authorized: Department of Agriculture $356,000 Authorizes $4,000,000 in 20-year bonds for the expansion of a facility at the Atlanta Farmer's Market. Of the $4,000,000 authorized, $2,000,000 is a payback project with debt service to be repaid from assessments made on the affected tenant's lease. Georgia Agricultural Exposition Authority $58,295 Authorizes $655,000 in 20-year bonds to improve pedestrian traffic flow and moditY existing facilities including the East Gate, building walkway connectors and ground improvements at the Agricultural Exposition Center in Perry. Georgia Building Authority $2,597,020 Authorizes $29,180,000 in 20-year bonds as follows: $13,180,000 to complete the restoration ofthe State Capitol Building; $10,000,000 to continue the renovation to the #2 Peachtree Building; and $6,000,000 for Americans with Disabilities Act modifications. $284,800 Authorizes $3,200,000 in 20-year bonds for the continued renovation of the State Capitol Museum. $144,625 Authorizes $1,625,000 in 20-year bonds for completion of the Capitol Education Center. Department of Corrections $1,458,990 Authorizes $6,235,000 in 5-year bonds for security-related modifications at various prisons. $623,000 Authorizes $7,000,000 in 20-year bonds for minor construction and repair projects ($3,300,000) and for roofmg projects ($3,700,000). $289,250 Authorizes $3,250,000 in 20-year bonds for construction of Terrell County, Paulding County and Houston County probation detention centers. 109 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND State Board of Education $6,284,735 Authorizes $70,615,000 in 20-year bonds, which includes $41,013,000 to 10 school systems for regular entitlements, and $29,602,000 to 7 systems for regular advanced fimding. Georgia Forestry Commission $142,400 Authorizes $1,600,000 in 20-year bonds to construct up to 8 multi-county Georgia Forestry Commission offices. Georgia Bureau of Investigation $115,255 Authorizes $1,295,000 in 20-year bonds to construct a morgue for the Headquarters laboratory. Department of Human Resources $2,305,100 Authorizes $25,900,000 in 20-year bonds for the following projects: $17,800,000 to construct a maximum-security forensics building at Central State Hospital; $2,280,000 for safety and regulatory requirements; $2,175,000 for roofmg projects; $1,100,000 to replace the garage and maintenance buildings at Savannah Regional Hospital; $660,000 for electrical replacement; $630,000 for major construction and design; $200,000 for water, sewer and plumbing projects; and $1,055,000 for HVAC for systems. $310,050 Authorizes $1,325,000 in 5-year bonds to renovate the fIrst floor ofRoosevelt Hall to expand the therapy area at Warm Springs. Department of Industry, Trade and Tourism $131,275 Authorizes $1,475,000 in 20-year bonds for a wastewater system at the Tallapoosa Visitor Center ($1,305,000) and to replace the roof at the West Point Visitor Center ($170,000). $91,260 Authorizes $390,000 in 5-year bonds to provide a 20% match to add restrooms at Kingsland and Savannah Visitor Centers ($300,000) and to renovate the center's interiors ($90,000). Department of Juvenile Justice $461,020 Authorizes $5,180,000 in 20-year bonds for the following: $3,000,000 for major repairs and renovations at various YDCs and RYDCs; $1,100,000 to complete construction of the dining facility at the Ireland YDC; $540,000 to complete the Athens RYDC multi-purpose building; and $540,000 for a classroom addition at the Macon RYDC. $230,490 Authorizes $985,000 in 5-year bonds for the following: $335,000 for planning and design of a new 75bed RYDC in South Central Georgia; $300,000 to purchase equipment for the Paulding RYDC; $230,000 for planning and design of a dining facility and a detention building addition at the Augusta YDC; $60,000 for planning and design of a police office and detention unit at the Lorenzo Benn YDC; and $60,000 for planning and designing of a detention unit expansion at the Macon YDC. Department of Natural Resources $4,094,000 Authorizes $46,000,000 in 20-year bonds to build the West Georgia Regional Reservoir (the Governor recommends that the bonds not be sold until all necessary permits are issued by the appropriate federal, state and local authorities for the construction and operation of the reservoir). 110 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND $1,780,000 Authorizes $20,000,000 in 20-year bonds to acquire land under the River Care 2000 program, including $15,000,000 for land purchases in the Chattahoochee River Corridor. $213,600 Authorizes $2,400,000 in 20-year bonds for Tybee Beach restoration. $102,350 Authorizes $1,150,000 in 20-year bonds for State Park projects. Board of Regents, University System of Georgia $15,475,320 Authorizes $173,880,000 in 20-year bonds as follows: $18,195,000 to construct a phase I classroom replacement at Augusta State University; $29,075,000 for a classroom building at Georgia State University; $28,000,000 for a science building at Armstrong Atlantic State University; $8,850,000 for a science building at Gainesville College; $19,350,000 for an arts and science instructional center at State University of West Georgia; $14,250,000 for Odum Library at Valdosta State University; $8,685,000 for a learning resource center at DeKalb College; $18,930,000 for a health building at Fort Valley State University; $4,700,000 for a visual and commercial arts classroom and office building at Kennewaw State University; $4,100,000 for an addition to Dillard Science Hall at Middle Georgia college; $4,100,000 to renovate the Drew-Griffith science building at Savannah State University; $1,600,000 for phase II of the ceramics and sculpture building at Georgia Southern University; $4,950,000 for a library addition and renovation at Dalton College; $3,220,000 for an addition and renovation of the Old Agricultural Engineering Building at Abraham Baldwin Agricultural College; $2,600,000 to renovate Crawford Wheatley Hall at Georgia Southwestern State University; $1,675,000 to renovate the lecture hall of the Multimedia Infonnation Center at Clayton College and State University; and $1,600,000 for a plant operations building at Southern Polytechnic State University. 111 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND $3,265,470 Authorizes $13,955,000 in 5-year bonds for the following: $515,000 for planning and designing of a building expansion ofthe School of Architecture Southern Polytechnic State University; $600,000 for planning and designing of an instructional complex at Gordon College; $1,340,000 for planning and designing of an environmental sciences and technology building at the Georgia Institute of Technology; $765,000 for planning and designing of a health and natural sciences building at North Georgia College and State University; $1,710,000 for planning and designing of a student learning center at the University of Georgia; $930,000 for planning and designing of a learning center at Clayton College and State University; $880,000 for planning and designing of a new DeKalb/UGA Gwinnett Center; $4,000,000 to upgrade utilities at the Medical College of Georgia hospital; $3,015,000 to purchase equipment for the Governor's Traditional Industries research projects; and $200,000 to match other funds to plan a new food processing technology research facility at Georgia Tech. $890,000 Authorizes $10,000,000 in 20-year bonds for the construction of a parking deck at Georgia Tech. This is a payback project with the debt service to be repaid from the parking receipts of the parking deck. $867,750 Authorizes $9,750,000 in 20-year bonds for the construction of a student recreation center at Valdosta State University. This is a payback project. $71,200 Authorizes $800,000 in 20-year bonds for the design of a technology and commerce facility at Columbus State University. Department of Technical and Adult Education $1,100,930 Authorizes $12,370,000 in 20-year bonds as follows: $5,000,000 to continue a multi-year repairs and renovations program at various facilities statewide; $3,935,000 to renovate the Atlanta Tech Main Building, Annex and Child Development Buildings; and $3,435,000 to renovate the Savannah Tech Classroom, Library and Administration buildings. $507,300 Authorizes $5,700,000 in 20-year bonds for the construction of a business and industrial development center at South Georgia Technical and Adult Institute. $234,000 Authorizes $1,000,000 in 5-year bonds for the replacement of equipment for Technical and Adult Institutions. $178,000 Authorizes $2,000,000 in 20-year bonds for the renovation of libraries in Glynn County and the City of Warner Robins. Department of Transportation $890,000 Authorizes $10,000,000 in 20-year bonds for the Governor's Road Improvement Program. $445,000 Authorizes $5,000,000 in 20-year bonds for the four-laning program. Department of Veterans Services $149,760 Authorizes $640,000 in 5-year bonds for renovations to the Georgia War Veterans Home in Milledgeville and Augusta. 112 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND Georgia World Congress Center $341,315 Authorizes $3,835,000 in 20-year bonds to provide a 50% match for roof repairs and HVAC replacement of the original exhibit area. The Authority will use its reserves for the other 50% ofthe funds needed. NEW AMOUNT OF BOND PRINCIPAL AUmORIZED FOR ISSUANCE IN F.Y. 1999 20-year bonds $457,860,000 5-year bonds 27,310,000 Total $485,170,000 AMENDED KY. 1998 BUDGET IDGHLIGHTS EXISTING OBLIGATIONS--$570,020,426. The appropriation reflects a net increase of$176,292,812 due to an addition of $188,993,763 to pre-fund obligations due in F.Y. 1999 and a reduction of$12,700,951 for actual principal and interest on all issued debt. In addition, $4,000,000 authorized in 20-year bonds during the 1997 session for the 80:20 federal to state funding match requirement is removed from the appropriation for a feasibility study for a commuter rail line from Macon/Macon AirportlHouston County to Atlanta. ENHANCEMENT FUNDS--$26,104,602. These funds include debt service for the following new issues (listed by department and authority): Department of Agriculture $171,000 Authorizes $2,000,000 in 20-year bonds for repairs to the Atlanta Farmer's Market. Georgia Agricultural Exposition Authority $846,621 Authorizes $9,902,000 in 20-year bonds for the following: $935,000 for South Gate development; $7,967,000 for a multipurpose agricultural complex/exhibit and office complex; and $1,000,000 for Agricenter roadway improvements and upgrades. Georgia Building Authority $427,500 Authorizes $5,000,000 in 20-year bonds for the remediation, removal and replacement of underground and above ground storage tanks. Department of Juvenile Justice $1,282,500 Authorizes $15,000,000 in 20-year bonds to construct a 150-bed YDC in Muscogee County. State Board of Education $3,487,545 Authorizes $40,790,000 in 20-year bonds as follows: $20,942,000 to 10 school systems for regular entitlements; $14,935,000 to 6 systems for regular advanced funding; and $4,913,000 to 2 systems for incentive advance funding. $1,419,726 Authorizes $6,146,000 in 5-year bonds for equipment for new and modified vocational high school laboratories. 113 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND Georgia Environmental Facilities Authority $1,710,000 Authorizes $20,000,000 in 20-year bonds to provide low interest loans to local governments for water, sewer and wastewater treatment projects. Georgia Ports Authority $956,340 Authorizes $4,140,000 in 5-year bonds for a feasibility study and project design to deepen the Savannah River channel. $346,500 Authorizes $1,500,000 in 5-year bonds to complete the feasibility study and project design phase to deepen the Brunswick navigation channel. $231,000 Authorizes $1,000,000 in 5-year bonds for a bulk cargo ship vacuum system for the Georgia Ports Authority at Colonel's Island. Department of Technical and Adult Education $218,025 Authorizes $2,550,000 in 20-year bonds for adult literacy centers and libraries in Union, Turner, Bryan, Dodge, Henry and Jeff Davis Counties. Department of Transportation $11,542,500 Authorizes $135,000,000 in 20-year bonds for the Governor's Road Improvement Program. $1,487,700 Authorizes $17,400,000 in 20-year bonds for spoilage area projects for the Savannah Harbor. $342,000 Authorizes $4,000,000 in 20-year bonds to provide planning funds for the Atlanta, Cartersville and Canton commuter rail line. 114 STATE OF GEORGIA GENERAL OBLIGATION DEBT SINKING FUND $295,830 Authorizes $3,460,000 in 20-year bonds for rehabilitation of state-owned rail lines. $171,000 Authorizes $2,000,000 in 20-year bonds for the purchase of the Omaha to Preston rail line. $136,800 Authorizes $1,600,000 in 20-year bonds for road improvements in Paulding County. $85,500 Authorizes $1,000,000 in 20-year bonds for the state portion of the Alabama to Stone Mountain Path program. $46,200 Authorizes $200,000 in 5-year bonds for a welcome center in Laurens County. Funds are appropriated to plan an expansion ofthe Georgia World Congress Center. Georgia World Congress Center $900,315 Authorizes $10,530,000 in 20-year bonds for planning and designing of Phase IV ofthe World Congress Center. NEW AMOUNT OF BOND PRINCIPAL AUmORIZED FOR ISSUANCE IN KY. 1998 AMENDED 20-year bonds $270,232,000 5-year bonds 12,986,000 Total $283,218,000 115 STATE DEBT AS A PERCENTAGE OF NET TREASURY REVENUES The following sets forth the highest aggregate annual debt service, including recommended debt, as a percentage of the net treasury receipts for the prior fiscal year. The maximum percentage allowed by the current state Constitution is 10 percent. Prior to July 1, 1983, the maximum percentage allowed by the Constitution was 15 percent. Fiscal Year 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 Highest Annual Debt Service $640,534,325 (Est.) 606,662,145 (Est.) 588,641,451 568,226,855 504,930,220 491,857,523 431,894,693 392,743,216 387,732,035 369,685,654 376,504,953 Prior Year Net Treasury Receipts $11,897,453,880 (Est.) 11,905,829,999 11,166,835,592 10,303,573,061 9,409,526,943 8,346,376,907 7,452,615,507 7,295,236,287 7,196,336,132 6,467,686,421 5,890,910,203 Percenta~e 5.4% (Est.) 5.1 % (Est.) 5.3% 5.5% 5.4% 5.9% 5.8% 5.4% 5.4% 5.7% 6.4% 16% 14% 12% ....Ql Cl 10% CIS C Q.u..l 8% aQ.l 6% ................. 15cifo . ............................................~ . ........................ Constitutional Limits 7 . - ....... - - - - - - - - -- _ .... - -- - - - _. -- . _. - - - -:- - 10% 4% 2% 1969 1974 1979 1984 1989 Fiscal Year 1994 1999 116 PUBLISHED BY OFFICE OF PLANNING AND BUDGET SUITE 8066 270 WASHINGTON ST., S.W. ATLANTA, GA. 30334-8500 (404) 656-3820