.... " : ( -. t." '/- ~--, ,::' i . ..: FISCAL YEAR 1996 ,/ ,/ .,/.' ,,/ ./ FISCAL YEAR 1996 BUDGET REPORT Zell Miller, Governor Director of the Budget Henry M. Huckaby, Director Office of Planning and Budget QUOTE ON COVER: Henry Clay, American Statesman Speech in Lexington, Kentucky May 16,1829 2 CONTENTS Governor's Introduction 6 An Economic Report 10 Reader's Guide 13 FINANCIAL SUMMARIES 17 State Revenue Shortfall Reserve 18 Estimated State Fund Availability, Budgets and Surplus 19 Fiscal Year 1995 and Fiscal Year 1996 Georgia Revenues, Actual and Estimated 20 Sources of State Revenues 22 How State Dollars Are Spent 23 Statement of Financial Condition 24 Year Ended June 30, 1994 Statement of Financial Condition 25 Year Ended June 30, 1993 Lottery Recommendations 26 Recommended Salary Adjustments 30 DEPARTMENT BUDGET SUMMARIES 33 Expenditures and Appropriations by Department, State Funds 34 Expenditures and Appropriations by Department, Total Funds 36 State Organization Chart 38 LEGISLATIVE BRANCH General Assembly 40 Audits, Department of 41 JUDICIAL BRANCH Supreme Court 43 Court of Appeals 44 Superior Courts 45 Juvenile Courts 46 Georgia Courts Automation Commission 47 Indigent Defense Council 48 Institute of Continuing Judicial Education 49 Judicial Council 50 Judicial Qualifications Commission 51 Georgia Office of Dispute Resolution 52 EXECUTIVE BRANCH Department of Administrative Services 53 Agency for the Removal of Hazardous Materials 60 Department of Agriculture 61 Department of Banking and Finance 70 Department of Children and Youth Services 75 Department of Community Affairs 87 Department of Corrections 99 Department of Defense 112 State Board of Education 118 3 CONTENTS Employees' Retirement System 145 State Forestry Commission 152 Georgia Bureau of Investigation 162 Georgia State Financing and Investment Commission 171 Office of the Governor 176 Department of Human Resources 187 Department oflndustry, Trade and Tourism 225 Office of Commissioner of Insurance 235 Department of Labor 242 Department ofLaw 251 Department of Medical Assistance 257 State Merit System of Personnel Administration 268 Department of Natural Resources 276 Department of Public Safety 289 Public School Employees' Retirement System 299 Public Service Commission 300 Regents, University System of Georgia 306 Department of Revenue 333 Office of Secretary of State 340 State Soil and Water Conservation Commission 348 Georgia Student Finance Commission 358 Teachers' Retirement System 370 Department of Technical and Adult Education 375 Department of Transportation 388 Department of Veterans Service 398 State Board of Workers' Compensation 405 State of Georgia General Obligation Debt Sinking Fund 411 CAPITAL OUTLAY 417 Summary of Funds Recommended by the Governor 418 For New Capital Outlay Expenditures CAPITAL OUTLAY PROJECTS FOR F.Y. 1996 Department of Administrative Services 419 Department of Agriculture 420 Georgia Building Authority 422 Department of Children and Youth Services 423 Department of Community Affairs 427 Department of Corrections 428 Department of Defense 430 State Board of Education 431 Georgia Emergency Management Agency 432 State Forestry Commission 433 Georgia Bureau of Investigation 434 Department of Human Resources 435 Department of Industry, Trade and Tourism 440 Department of Labor 441 Department of Natural Resources 442 Department of Public Safety 445 Regents, University System of Georgia 446 State Soil and Water Conservation Commission 448 Department of Technical and Adult Education 449 4 CONTENTS Department of Transportation 450 Department of Veterans Service 451 CAPITAL OUTLAY PROJECTED NEEDS FOR F.Y. 1997-1999 Department of Agriculture 452 Georgia Building Authority 453 Department of Children and Youth Services 454 Department of Corrections 456 Department ofDefense 457 State Board of Education 458 Georgia Environmental Facilities Authority 460 State Forestry Commission 461 Georgia Bureau of Investigation 462 Department of Human Resources 463 Department of Industry, Trade and Tourism 466 Department of Labor 467 Lake Lanier Islands Development Authority 468 Department of Natural Resources 469 Georgia Ports Authority 470 Department of Public Safety 471 Regents, University System of Georgia 472 Department of Technical and Adult Education 476 Department of Transportation 477 Department of Veterans Service 478 APPENDICES 479 Surplus By State of Georgia Department 480 Financing Capital Outlay Needs Through 481 the Issuance of General Obligation Debt Constitutional and Statutory Bond Limitations 482 Total Debt Authorized by State in General Obligation 484 and Revenue Bonds Outstanding Debt Owed By State of Georgia 485 Principal and Interested Owed on Outstanding Bonds 486 State Debt By Percentage of Treasury Receipts 487 Authorized Positions By Department 488 Glossary 489 5 Zell Miller GOVERNOR STATE OF GEORGIA OFFICE OF THE GOVERNOR ATLANTA 30334-0900 TO MEMBERS OF THE GENERAL ASSEMBLY: I am pleased to transmit to the General Assembly and citizens of Georgia this Budget Report for fiscal year (F.Y.) 1996. I believe education is the star by which we must sail, and this budget directs new state expenditures for education totaling almost $600 million over current appropriations. New expenditures for all of state government will increase to a level of$10,700,856,569, an increase of$915,596, 138 over the current budget now in effect for F.Y. 1995. Revenue will produce $10,715,956,569, leaving $15.1 million in lottery proceeds to be added to required reserves. Funds for the new budget will come from three sources: $10,134,000,000 from the official revenue estimate based on taxes and fees, an increase of$642 million, or 6.8 percent over the revised revenue estimate for F.Y. 1995. The increase would be $738 million over the current estimate before revision. $435,656,569 from lottery proceeds, an increase of$185,683,271 from current expenditures. $146,300,000 from the Indigent Care Trust Fund, an increase of$7,012,867. In my Amended Budget Report already submitted to the General Assembly, I recommended that we increase the F.Y. 1995 current year's expenditures by $440,878,013. While some of these expenditures will carry forward into F. Y. 1996, most of the $931 million increase in next year's expenditures are for services beyond the levels in place today. Because education is my highest priority for F.Y. 1996, I am recommending the state general and lottery fund increases that will provide educational opportunities for all students, from our four-year-olds in per-kindergarten to the adults studying for their doctorate degrees: $346,310,609 in new expenditures for public schools. $171,191,848 for our colleges and universities. $35,512,736 to continue expanding technical institutes and adult education programs. $36,833,190 for additional student scholarships. 6 These education increases include six percent pay raises for all teachers in the state's public schools, technical institutes and colleges and universities, and are the largest raises in almost a decade. It is my goal to begin to restore a competitive balance with other states. At the same time, merit pay raises of five percent are proposed for state employees on their anniversary dates. The state's ability to increase educational spending at a level of almost $600 million is directly attributable to the new state lottery which set a new record for success among all states in its first year of operation. Georgia actually collected $362,420,743 in F.Y. 1994, we are estimating collections of $366,428,044 during the current year, and we are projecting $435,656,569 in F.Y. 1996. This is a total of$l, 164,505,356 in three years for education. State law requires that lottery money must be spent on education, and I would have it no other way. The impact of the lottery money is graphically illustrated by the funding available in F.Y. 1996 for the three areas of expenditure allowed by state law. Per-kindergarten for four-year-olds will be funded at a level of$157,646,245. Launched initially for at-risk children, it will now be available for all children. This program did not even exist during the 1992-93 school year. Scholarship funding will total $120,281,000. The largest new scholarship program, HOPE, is allowing many students to attend college or technical institutes who could not afford it previously. HOPE will total $105,645,000 in F.Y. 1996. The third expenditure, capital expenditures, will total $142,629,324. These funds have allowed us to focus on technology in the classrooms at a much faster pace than would have been possible without lottery funding. It won't be too long before all Georgians will see a real influence in these dollars on the quality of education in Georgia. Of course, we have continued to invest additional state general funds into education. Lottery proceeds have met only a part of our needs. Student enrollment is growing every year, and we have continued to implement new education initiatives with general funds. I continue to place a strong emphasis and will adamantly support higher education. There are a number of new initiatives that are funded in this budget. Using a combination of lottery and federal funds, $11 million is allocated to the Board ofRegents to connect teachers and technology in a plan to increase the number of academic programs using distance learning technology in the classroom. A total of $7 million is included to provide automated phone registration and transfer services systemwide. Student records will be automated and Peachnet access will be made available to public libraries and high school counselors. A special appropriation request of $8 million is included to address specific renovation and upgrade needs in science and distance learning laboratories that would normally fall outside of available renovation funds. To continue to rebuild our aging infrastructure, $100,045,000 in bond funds is requested to build needed facilities on seven different campuses plus the $42,385,000 for the Children's 7 Medical Center at the Augusta Medical College included in my F.Y. 1995 amended budget recommendations. To continue to provide adequate funding for equipment upgrades to keep our university research programs competitive, an increase to $20 million is recommended for the Equipment, Technology and Construction Trust Fund. Under the umbrella of the Georgia Research Alliance, the state has invested $57,675,000 in research equipment over the last three years. This budget continues this commitment with $25,017,000 allocated to the three strategic directions of telecommunications, environmental science and biotechnology. These long-term investments will continue to improve the state's competitive position in these critical fields. Ensuring the safety of our citizens and their property is a mission of paramount importance for the state. To this end, I am recommending significant enhancements to expand our juvenile and adult correctional systems. The budget for the Department of Children and Youth Services is being increased by $35.3 million over its initial budget for F.Y. 1995. This will allow the Department to respond not only to the severe overcrowding it has experienced, with over 1,400 new beds, but also to provide an enhanced level of care and rehabilitation to youth in its custody. While this is a very significant increase in the Department's budget, it is clear that the situation requires this level of funding. In addition, I am recommending construction funding of $33 million to construct two 150-bed YDCs and a 100-bed RYDC for Superior Court youth. The design of these facilities is included in the F.Y. 1995 amended budget. In the adult system, the budget will provide $6.9 million to construct 392 beds at Hancock and Washington Correctional Institutions and $3,151,765 to open 224 beds at the Haralson Detention Center. To prepare for future needs, $1.7 million is recommended to plan and design two new 1,OOO-bed prisons. To deal with the problems of probation, $1.5 million is included to design Phase Iofa mandatory community service program for all felons and misdemeants sentenced to probation. This funding will provide for 18 community service coordinators who will locate community service projects. If successful, it is anticipated that this program will be expanded to other judicial circuits in F.Y. 1997 and F.Y. 1998. And, finally, to promote the economic growth and prosperity of Georgia and its citizens, a few initiatives should be mentioned here. The 1996 Olympic Games offer Georgia a once in a lifetime opportunity to showcase itself to the world. To capitalize on this opportunity, I am recommending $10 million for a comprehensive marketing campaign targeted at the influential traveler. The campaign will seek to provide a powerful image of Georgia, its products, tourist locations and business climate to these individuals who are key to influencing business decisions. To promote international trade, $261,581 is included to provide an initial state presence in the new Federal Regional Export Assistance Center and $400,000 to provide for international trade representation to emerging markets in China, Southeast Asia, India and South Mrica. 8 To provide needed facilities to handle increasing export and import activities, I am recommending $40 million to initiate the construction of a seventh container berth at the Georgia Ports Authority in Savannah. Many more items are included in the Highlights sections at the beginning of each Department's budget. The Budget Report format has been revised to make it more user friendly and to stress the contents of programs and services as well as the dollars that support them. I hope this format will be instructional as well as more useful. Education develops human resources. Human resources, in tum, make a state whatever it is to be. Education, therefore, must of necessity be our primary concern. I promise your that it will be during my next four years as we work together to strengthen our state government and to make it more responsive to the people who provide its revenues--the taxpayers and citizens. //~- { 9 AN ECONOMIC REPORT UNDERPINNING GEORGIA'S GENERA~FUNDSBUDGET Georgia's general-fimds budget portrays an anticipated extent and intensity of involvement of the state government with the businesses and individuals of the private economy. On the revenue side, the budget presents the expected transfers of purchasing power from the private to the government sector via various fees and taxes. On the expenditure side, the budget registers the dollars returned to the private sector through purchases of goods and services which are combined to form government's programs and projects. Overarching the revenue and expenditure sides is a constitutional requirement of budgetary balance. The purchasing power which the government expects to withdraw from the private sector in any year must be returned through the cumulated purchases which government expects to make in the private economy. Budgetary balance does not imply economic neutrality. Although the budget does not register the effect, an underlying political incentive seeks balance at the levels of revenue and expenditure which maximize government's contribution to economic wellbeing. Within balanced budgets, revenue sources can be added or dropped, weakened or strengthened; programs and projects can be initiated or abandoned, expanded or curtailed. In Georgia, political fine-tuning in search of an optimally-sized budget has been continuous. Although the revenue flow to the state has increased by roughly six-fold in the last twenty years, the Governor and the General Assembly have kept the fraction of personal income withdrawn (and returned) within very narrowbounds. Of course, this "smoothing" has been aided by the "offbudget" proceeds of bonds sold for financing capital projects and perhaps, most recently, by the complementary "lottery budget" itself. From 1974 to 1994, as Figure 1 depicts, the state's budgetary revenues have ranged between 5.8 and 6.6 percent of Georgia's personal income. Neither the output surge of the early eighties, the 33-percent sales tax increase of 1989, nor the extended recession of the early nineties has pushed revenue's dominance outside ofthese bounds. With the income tax cut of 1994 and the slower income growth expected in 1995 and 1996, the economic involvement of the state-government over the next two years promises to remain within the same long-term limits. Neither budgetary revenues nor outlays can stand alone. Nevertheless, after political judgment has determined the optimal budget size, the ability of an existing tax and fee system, or of a proposed modification, to produce the indicated revenue level must be assessed. To give credibility to the revenue side of the state's budget for fiscal years 1995 and 1996, therefore, the behavior ofthe state's revenues over the long-term, the short-term, and in the near future demands review. Figure 1 DOMINANCE OF STATE REVENUES (1974-1994) PERCENT 66 .------------------------, 65 64 63 62 61 60 59 REVENUESI 58 PERSONAL 57 INCOME 56 +-+-+-+-+-+-+-+---+---+---+--+--f------1f------1--1--1--1---+---+---i ~ ccoo o ()) ()) ()) ~ FISCAL YEARS 1. Revenues in a Long-term Setting Over the past dozen years, as is obvious in Figure 2, the state's revenues have followed the trend in Georgia's personal income. Revenues (adjusted for inflation) have grown at an average rate of 4.4 percent per year whereas personal income (adjusted for inflation) has averaged just 4.0 percent. If adjustments are made for the increase in the sales tax rate (3 to 4 percent) in April of 1989, however, revenue growth has fallen behind personal income growth and has averaged only 3.6 percent a year. While revenues follow the trend of personal income, revenues mirror most closely the pattern of variation of nonagricultural employment. Accordingly, revenues declined in fiscal years 1991 and 1992 even though personal income continued to climb. In fiscal year 1994, roughly 88 percent of the state's revenues were generated by the sales, income, and motor fuel taxes, about 4 percent more than in 1980. Individual income taxes accounted for 40 percent of revenues and sales taxes for 38 percent. Ten years earlier, the proportions had been 31 and 37 percent. In explanation of the shift, individual income taxes have climbed at an average annual rate of 10.6 percent and sales taxes (adjusted for rate) by only 6.6 percent. Of the $6.1 billion increase in state revenues since 1980, individual income taxes have accounted for $2.7 billion and sales taxes for $2.3 billion. The yield of the corporate income tax has varied markedly over the cycle in private activity. Declines in annual collections of 10 to 12 percent during recessions have made it a major factor in revenue slowdowns. Despite a correspondingly strong contribution during recovery, the corporate income tax has accounted for a minor portion oflong-term revenue growth. The gains in Georgia's income and employment which drove the tax advance ofthe eighties came mainly in services and trade. 10 Early in the decade, manufacturing and construction surged as well but their thrust was short-lived. It had faded before the overall decline in growth of 1988 and 1989. That general decline was both severe and extended. The 1989 increase in the sales tax rate had been expected to produce an upshift of 10 percent in total collections in 1990. In fact, three years after the tax change, the state's revenues had risen by barely 14 percent. In fiscal years 1990, 1991, and 1992, nominal revenues climbed by less than 2 percent per year. Figure 2 TRENDS IN THE STATE AND PRIVATE SECTORS INDEX (1980 = 100) 190 - r - - - - - - - - - - - - - - , r:====:g;STrA:ATETERiREVENUEM:NiJE-~ 180 PERSONAL INCOME- 170 160 - - - - - EMPLOYMENT - - - - POPULATION 150 140 .... ~ ...... 130 120 --- .... 110 100 -Jo""F-'lf---+-+--+----+-+-+-t--t-+--+----+-+--I o ~ eccnoo ~ ~ FISCAL YEARS * Adjusted for inflation. 2. Revenues in a Short-term Setting In the fiscal period 1991-1995, as represented in Figure 3, cyclical variations in the private and government sectors went hand-in-hand. Again, the behavior of non-agricultural employment set the pattern of fluctuation for revenues while the behavior of personal income came closest to setting the trend. The recession began in the first quarter offiscal year 1991. Nine quarters were required before personal income growth exceeded its 1991 growth peale Though subdued, income growth in the interval remained positive. In contrast, for non-agricultural employment and state's revenues, three quarters of negative growth were experienced. It took nine quarters after the growth peak of 1991 before employment gains reached their earlier level. Revenue growth fell farther than that of employment but recovered faster. Revenue growth in the fourth quarter of fiscal year 1992 exceeded that of any of the preceding seven quarters. While revenue growth powered past that of personal income in the second quarter of 1993, the record since the end of that fiscal year has shown revenue growth declining towards the growth pattem of income. At the same time, revenue's variations have come closer to those of the advances in employment. Among the revenue components, the collections from sales and use taxes have shown stronger growth in the upswing than collections from individual income taxes. Sales and use tax gains have reflected the shift of consumer and business spending towards taxed durables (motor vehicles, equipment, furnishings, and construction-related items). Motor vehicle sales rose by 15 to 20 percent per year in 1993 and 1994 and furnishings and equipment advanced at an annual rate of 8 to 10 percent. These rates were well ahead ofthe growth in overall consumer spending on goods and services of 5 to 7 percent. Individual income taxes have registered the impact of the late-emerging advances in employment and the virtual absence of acceleration in gains in compensation. For income tax yields, private downsizing has inflicted at least a short-term cost. Yet, savings from reduced work forces have helped to boost corporate profits. Consequently, growth in corporate income taxes reached 35 percent in 1993 and maintained about half that rate in 1994. The period from fiscal year 1991 to 1995 makes clear that short-term revenue gains can have as much to do with the mix of an advance in the private sector as with the aggregate gains that are achieved. In the long run, on the other hand, the aggregate levels of private activity appear determining. 3. Near-Future Prospects Study of Figure 3 suggests that revenue gains are currently drifting downward towards those of personal income. Moreover, the implicit productivity surges which had separated growth patterns of income and employment are fading. As a result, the prospects for fiscal years 1995 and 1996 are for weaker advances in revenues than the 11.3 and 8.6 percent gains which were reported for fiscal years 1993 and 1994 respectively. Employment growth, over 5 percent in the middle offiscal year 1994, has already dropped to 4 percent. Of course, with population growing at only around 2 percent, worker participation-rates would have to rise dramatically (as they did in the eighties) to maintain even the current reduced pace. The growth in service employments, still high at around 9 percent, shows no signs of flagging. However, construction employment gains, which were in double digits in the third quarter of fiscal year 1994, are now down to middle single-digit levels. More telling, employment in retail trade is today growing at only about 2 percent per year, roughly a third of the rate of a year ago. These patterns suggest that a further weakening in employment gains is in the offing. Though the activity mix in the private sector is falling away from that which best supports rc:venue growth, sustained gains in the activity level in the private sector can substitute in giving support. The continuing growth of the Nation's gross domestic product at rates of just under 4 percent (after adjustment for inflation) provides a strong stimulant. This expansion has been driven by business spending on producers' durables, by expansion in construction, and by increases in manufacturing geared to the national orientation of consumption towards motor vehicles and other durables. Corporate profits have also been rising substantially and have given businesses confidence that purchases ofequipment were timely and would prove rewarding. Exports have been climbing as well and economic recoveries abroad give promise of even sharper rises in the future. Lastly, the anti-inflation policy of the Federal Reserve has induced consumers and businesses alike to purchase ahead of the interestrate crest which they see coming but which has been repeatedly postponed by the succession of imposed adjustments in overnight 11 rates. In time, the cycle in durables purchases, home building, and business outfitting will ebb and will erode the national advance. But, even with some easing, Georgia will certainly feel stimulation from its major market-place through fiscal years 1995 and 1996. Within Georgia, the mood-support which the prospect of the Olympics has spawned will buoy activity for at least the next 550 to 600 days. For a time thereafter, the international exposure of the Games will no doubt spur an immigration of human and business capital which then lifts the level of the state's activity. Assumed1y, Georgia's low m~ginal rates of taxation on incomes, corporate profits, and purchases will prevent incentive damage that could offset the exploitation of new economic opportunities. Also, the state's selective tax and program aids to development will have a reinforcing effect. When these various state and national influences are fitted into an econometric forecasting model and weighted by recent experience, a specific revenue outlook for fiscal years 1995 and 1996 emerges. In fiscal year 1994, collections were $8.907 billion. In fiscal year 1995, the state's revenues are expected to advance by between 6.6 and 8.0 percent. In fiscal year 1996, they are anticipated to climb by an additional 6.8 to 7.5 percent. The revenue levels will then reach at least $9.492 billion and $10.134 billion respectively. Spendable funds will climb by a minimum of$585 million in 1995 and by $642 million in 1996. Although not banner years when judged by last decade's performance, the condition of the economy suggests that 1995 and 1996 are probably years with higher rates of revenue growth than the next two years will register. Figure 3 GAINS IN REVENUES, PERSONAL INCOME, AND EMPLOYMENT (4-QUARTER CHANGE) PERCENT 15.00 , . . - - - - - - - - - - - , - - - - - - - - , 13.00 11.00 9.00 7.00 5.00 3.00 1.00 -1.00 -3.00 -5.00 +-+-+-+-+-+--t-+-+--+-+-+-+-+-+--t-+-+-! 131 3 1991 1992 3 1993 31 1994 1995 I---Revenues - - - Personal Income . Employment QUARTERS FISCAL YEARS 12 READER'S GUIDE The F. Y. 1996 Budget Report has been changed to a new format and size. This Reader's Guide explains the changes, as well as the sources of funding for state government and the way Georgia's budget process works. NEW FORMAT The 8 1/2 x 11 format has been adopted to provide a document that is easy to read and handle. The new document focuses on the programs of state government in addition to the fmancial data, explaining what services your government is providing, the reasons why these services are needed and the direction in which state government is headed. THREE BUDGET DOCUMENTS The Governor's budget recommendations to the 1995 General Assembly are made in two budget documents, with a third document published after the session to explain the appropriation actions taken during the session. The document you are now reading is the F.Y. 1996 Budget Report. It embraces the Governor's spending recommendations for F. Y. 1996 that begins July 1, 1995 and ends June 30, 1996. It is commonly called the outyear budget. An Amended Budget Report details spending changes recommended by the Governor for the fiscal year underway when the General Assembly meets in regular session in January of each year. The Budget in Brief is published after the session ends and covers all budget actions taken by the General Assembly both in an amended budget and the budget for the next fiscal year. THE NEW BUDGET REPORT Most departments will have eight separate sections in this F. Y. 1996 Budget Report, with each section providing a different level of information about the Governor's proposed spending program for the upcoming year. Following is an explanation of each section: IllGHLIGHTS The Highlights page is designed to give a summary of each department's proposed budget as recommended by the Governor. This page may be omitted for a few of the smaller agencies that have few budget changes. FINANCIAL SUMMARY A financial display by object class, reflecting total funds in eight different columns that reveal the following: F. Y. 1993 and F. Y. 1994 actual expenditures. F. Y. 1995 current operating budget. F. Y. 1996 agency requests by continuation and improvement funds. F. Y. 1996 recommendations by the Governor by continuation, improvement and total funds. Fund sources are shown at the bottom of each column, along with the number of positions and motor vehicles. BUDGET SUMMARY This page, although similar to the past, has been revised to concentrate on the Governor's recommendations. If the Govemor's recommendation for a specific expenditure is different from the Department's request, the Department's total request for that item is stated in parentheses. FUNCTIONAL BUDGET SUMMARY A display of functional budgets by total and state funds for the current year's appropriations and for the following fiscal year. ROLES AN]) RESPONSIBILITIES A new page that describes what a department is charged with doing by law, policy or mandate. Information has been cultivated from several pages in the previous document and expanded on to create this concise explanation of roles and responsibilities. PROGRAMS AND SERVICES Also a new page that is a follow-up link to the Roles and Responsibilities page. Programs and Services pages explain how the missions of each department are carried out. The section focuses on existing programs and services with a view to past actions, current actions and future actions expected, from the perspective of the Governor's recommendations and state policy. While charts, tables and other forms of graphics have been given major prominence throughout the new Budget Report, the Programs and Services pages are a major display center for graphics that explain how state government is serving Georgia's citizens. PROGRAM INFORMATION A redesign of a page from previous documents. The purpose is to illustrate statistically various goals and achievements of each department. The page is optional for the smaller agencies. ORGANIZATION CHART Except for redesign to fit the smaller page, this is the same Organization Chart as in the past. Information in the Description of the Department feature has been transferred to other pages. The chart is configured by divisions, with each divisional section highlighted by statements that describe the activities of each division. Agencies attached for administrative purposes only are shown separately. The numbers in each block represent total budgeted state positions as of October 1, 1994 for each division. The total budgeted for the Department is listed under the Department head at the top of the page. Attached agencies are not included in this count. 13 CAPITAL OUTLAY A four-year capital outlay plan is displayed in this section by each agency. The display is divided into two sequences. First, the Govemor's recommendations for F. Y. 1996 are displayed, along with projects requested but not recommended. Together, these projects make up the first year ofthe plan. Shown next are agency projections for the next three fiscal years--1997, 1998 and 1999. The cost of construction is listed for all projects, by cash or bonds, either as recommended by the Governor for F.Y. 1996 or as estimated by the departments. APPENDICES Several items of general background information are displayed in this section, including state surplus for the prior two years, historical information and and current statistical data about state bonds, a three-year record of authorized positions, and a glossary of budget-related terms. THE SOURCES OF FUNDING The underpinning for any budget is the amount of funds available for expenditure. There are two broad categories of fund availability: State funds. (1 )The taxes and fees collected by the state and deposited directly into the State Treasury to be appropriated (the basis for the Governor's revenue estimate); (2) Reserves; (3) Surplus funds; (4) Lottery receipts; and (5) Indigent Care Trust Funds. Total funds. All funds available for appropriation, including (1) State funds as described above; (2) Federal funds; and (3) Other Funds, including all other funds, mostly fees and charges assessed and retained by the agency. STATE FUNDS State funds comprised 56 percent of total appropriations in the original F. Y. 1995 budget. The state fund total is most frequently used in news reports and is the total that most often generates public debate and deliberations by the House and Senate Appropriations Committees. The level of federal and other funding is often driven by the level of state fund appropriations. Taxes represent the largest portion of state funds--92.7 percent inF.Y. 1995. The largest tax sources are the income tax, 45.2 percent, and the sales tax, 35.4 percent. Other revenue sources include fees and sales, 3.3 percent; lottery funds, 2.6 percent; and Indigent Care Trust Funds, 1.4 percent. FEDERAL AND OTHER FUNDS Federal funds flow directly to state agencies from the many federal programs that provide grants to state and local governments. While most federal funds for local governments go directly to the recipient cities and counties, some grant funds are distributed to local governments through the state budget. Other funds can be confusing because of the terminology used. To simply the confusion, think of other funds as two categories. The first category is actually called Other Funds and it is common to many departments. This category includes funds collected by state agencies and retained for expenditure, as provided by law, without going through the state treasury. Examples are college tuition fees, fees paid at state parks and various fees received by agencies for services rendered. The second category includes a host of special funds that are generally unique to a single agency or to a specific program. This includes Sponsored Income (Regents), Authority paybacks, the Governor's Emergency Fund and DOAS Indirect Funds. This category represents a very small percentage of total expenditures. Both categories are included in each Appropriation Act but can be amended into an agency's budget upon approval of the Office ofPlanning and Budget (OPB) iffunds collected are more than the appropriation amounts. REVENUE ESTIMATE Georgia's State Constitution requires that the General Assembly appropriate a budget that balances expenditures with anticipated revenues. Therefore, each year's budget cannot exceed the total of revenues expected to be collected and any surplus or reserve funds that are available for expenditure. The Govemor, who is the Budget Director, is responsible for establishing the official revenue estimate. He is assisted in this responsibility by a state economist under contract as a consultant with the Governor's Office ofPlanning and Budget. The basis for making revenue projections is a computerized econometric model. From this model, a range of estimates is provided to the Governor by his economic consultant. In early December, just prior to fmalizing his budget recommendations to the General Assembly, the Governor adopts a fmal revenue estimate--an action that, when added to surplus and reserve funds, determines the size of the forthcoming appropriation bill. SURPLUS FUNDS Surplus funds come from two sources: (1) Excess revenue collections over the revenue estimate, and (2) Unspent appropriations that were lapsed back to the state treasury and may be available for re-appropriation. Lapses occur in two ways: (1) Appropriations that OPB never allotted to agencies for expenditure, an action that automatically puts the funds back into the treasury; and (2) Appropriations that were allotted for expenditure but were unspent at the end of the year. These funds are lapsed back into the treasury by the State Auditor following trhe annual audits of each agency. RESERVES Two reserves are established by the state on June 30, the end of the state's fiscal year, if funds are available--the Midyear Adjustment Reserve and the Revenue Shortfall Reserve. The Midyear Adjustment Reserve is established by the State Auditor on June 30 each year and represents one percent of net 14 revenue collections for the prior fiscal year, to the extent surplus funds are available up to that total. The Reserve is set aside to be appropriated in an Amended Budget at the next session of the General Assembly. The Reserve is considered to be the primary fund source for the State Board of Education's "Midterm Adjustment." This adjustment is appropriated in the Amended Budget each year to provide the state's share of the increased cost ofnew students enrolled in the fall. The Revenue Shortfall Reserve is equal to three percent of the prior fiscal year's net revenue collections, to the extent surplus funds are available, and is established after the Midyear Adjustment Reserve has been filled. The Shortfall Reserve is the state's rainy day fund and is available to offset a shortage in revenues at the end of the fiscal year. Occasionally, other reserves can be available for appropriation. For instance, the Motor Fuel Reserve represents funds earmarked for appropriation to the Department of Transportation in years when motor fuel tax collections exceed the original budgeted estimate for motor fuel collections. Such an appropriation is required by the State Constitution. THE BUDGET PROCESS The budget process for any given year, from the first planning stages to post-auditing, involves a series of actions spread over about two and one-halfyears. State law requires all state agencies to submit a request for appropriations for the next fiscal year to the Office of Planning and Budget no later than September 1 of each year. Most agencies can work on these requests in the spring for a fiscal year that is 14 to 15 months in the future. At the same time, agencies can request amendments to the current fiscal year budget. Beginning in early September, the Governor begins a fourmonth period in which he studies the department requests and develops his recommendations to the General Assembly. During this interim, he meets with department heads and consults with his OPB staff in finalizing his proposals. BUDGET ANNOUNCEMENTS The Govemor normally appears before a joint meeting of the House and Senate Appropriations Committees during the first week in January to announce his recommendations for amending the current year's budget. The next year's budget recommendations are announced by the Governor during his annual Budget Message, which is delivered to a joint legislative session during the first week of the annual session. The Legislature convenes on the second Monday in January. LEGISLATIVE ACTION By law, the appropriation bill is introduced in the House of Representatives and first goes to the House Appropriations Committee for consideration being being voted on by the entire House. The bill follows a similar path through the Senate. The House and Senate versions usually differ. While still working within the total revenue estimate established by the Governor, a conference committee is then appointed to reach a compromise on the two versions. The conference committee's version must be accepted totally or rejected by each house. ADMINISTRATION OF THE BUDGET Once an Appropriations Act has been signed into law, OPB, on behalfofthe Govemor, is responsible for ensuring that all state expenditures conform to the legislative mandate. State agencies are responsible for ensuring that they do not exceed spending authorizations by total appropriation or by object class. This is accomplished through approval by OPB of an annual operating budget, a quarterly work program to receive allotments for spending and post-quarter reports detailing quarterly expenditures required of all departments. After the fiscal year ends, the State Auditor is responsible for auditing all expenditures of every state agency and operation, including all colleges and universities, authorities and school districts. OBJECT CLASS APPROPRIATIONS All funds are appropriated through common and unique object classes. There are more than a dozen common object classes, such as personal services, regular operating expenses, capital outlay, travel and real estate rentals. Unique object classes, of which there are almost 100 in the State Board of Education alone, usually relate only to a specific agency. The Appropriation Act in recent years has provided some flexibility for state agencies by authorizing some transfers between common object classes. The limits are: no common object class spending can exceed 102 percent of appropriations for that class, and total spending on all common object classes cannot exceed the total funds authorized. Further transfers between these object classes are possible with permission ofthe Fiscal Affairs Subcommittee of the General Assembly, as recommended by the Governor. As the state moves into outcome-based budgeting, as prescribed in Senate Bill 335, the use of object classes might become less important. Outcome-based budgeting, once implemented, will emphasize outcomes rather than line-item expenditures. BASIS OF BUDGETING The State of Georgia maintains the budget funds of its various appropriation units in accordance with the modified accrual basis qf reporting. 15 I I I I I I I I I I I I I I I I I I I I I I I I I leo I I I FINANCIAL SUMMARIES 17 STATE REVENUE SHORTFALL RESERVE The 1976 Session of the General 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 of the State to this account up to three percent of net revenue collections. At three percent of net revenue collections, the fund is considered full and any additional surplus is available for appropriation. For the first time since Fiscal Year 1989, the Revenue Shortfall Reserve is now full. The Fiscal Year 1994 balance represents three percent of net revenue collections, excluding lottery proceeds. Below is a summary of the balance of the Revenue Shortfall Reserve since Fiscal Year 1985. F.Y.1994 F.Y. 1993 F.Y. 1992 F.Y. 1991 F.Y. 1990 F.Y. 1989 F.Y. 1988 F.Y. 1987 F.Y. 1986 F.Y. 1985 $267,195,474 (1) 122,640,698 (1) -0-0-0194,030,593 176,727,306 162,639,563 150,621,753 138,234,402 (1) This amount includes agency lapses that are added to the Revenue Shortfall Reserve by the State Auditor after all agency audits are completed. 18 ESTIMATED STATE FUND AVAILABILITY, BUDGETS AND SURPLUS FISCAL YEAR 1995 AND FISCAL YEAR 1996 SURPLUS: Surplus From Audited Agency Lapses RESERVES: Midyear Adjustment Reserve Motor Fuel Reserve Lottery for Education Account (Surplus from F.Y. 1994 collections) REVENUES: State Revenue Estimate Indigent Care Trust Fund Receipts Estimated Lottery Proceeds for Education Account FISCAL YEAR 1995 28,180,332 89,065,158 2,374,684 108,803,093 9,492,000,000 139,287,133 366,428,044 TOTAL STATE FUNDS AVAILABLE Less: F.Y. 1995 Amended Recommended Appropriation 10,226,138,444 10,226,138,444 Less: F.Y. 1996 Recommended Appropriation Balance to be Credited to Lottery Reserves ($6,500,000 of this amount is to be credited to the Shortfall Reserve Subaccount bringing this account to a total of $42,500,000, and $8,600,000 of this amount is to be credited to the Scholarship Shortfall Reserve Subaccount which will establish this account.) FISCAL YEAR 1996 10,134,000,000 146,300,000 435,656,569 10,715,956,569 10,700,856,569 15,100,000 19 GEORGIA REVENUES, ACTUAL AND ESTIMATED FISCAL YEARS ENDING JUNE 30, 1992 THROUGH JUNE 30, 1996 1. REVENUES FROM TAXES AND FEES Collecting Unit Source TAXES: Revenue Sales Tax - General Revenue Income Tax - Corporate and Individual Revenue Motor Fuel Tax - Gallons and Sales Revenue Cigar and Cigarette Tax Revenue Motor Vehicle License Tax Revenue Malt Beverage Tax Revenue Alcoholic Beverage Tax Commissioner of Insurance Insurance Premium Tax Revenue =N Revenue Inheritance Tax Wine Tax Revenue Property Tax - General, Utility, Tangible TOTAL TAXES REGULATORY FEES AND SALES: Administrative Services: Interest on Deposits Other Fees and Sales Revenue: Peace Officer Training Funds Other Fees and Sales Natural Resources: Human Resources Public Safety Game and Fish Other Fees and Sales F.Y. 1992 Actual 2,676,586,677 3,478,393,275 450,534,125 84,203,296 84,134,860 65,950,469 36,082,018 166,826,828 37,583,865 15,079,827 26,738,347 7,122,113,587 46,267,674 18,162,785 13,401,832 23,663,320 18,014,494 2,164,932 20,751,650 19,773,176 F.Y. 1993 Actual 2,969,243,001 3,879,855,674 467,960,523 84,887,393 176,065,978 67,636,247 32,946,773 179,667,771 39,103,941 14,095,743 30,653,989 7,942,117,033 54,948,044 23,068,815 13,967,701 49,232,059 19,795,567 9,126,488 22,972,803 35,066,785 F.Y. 1994 Actual 3,254,969,605 4,130,724,467 488,355,998 80,655,967 203,724,388 70,538,229 28,215,577 198,773,186 87,808,192 14,377,805 32,286,806 8,590,430,220 44,795,155 25,409,959 14,370,268 35,286,270 20,551,514 15,541,638 31,292,869 37,868,794 F.Y.1995 Estimated 3,552,000,000 4,380,000,000 513,000,000 78,000,000 210,000,000 73,000,000 31,000,000 194,000,000 58,000,000 14,000,000 35,000,000 9,138,000,000 73,000,000 16,000,000 14,000,000 35,000,000 23,000,000 12,000,000 32,000,000 40,000,000 F.Y. 1996 Estimated 3,830,000,000 4,703,000,000 532,000,000 77,000,000 212,000,000 73,000,000 30,000,000 204,000,000 45,000,000 15,000,000 37,000,000 9,758,000,000 78,000,000 18,000,000 15,000,000 36,000,000 25,000,000 14,000,000 32,000,000 41,000,000 GEORGIA REVENUES, ACTUAL AND ESTIMATED FISCAL YEARS ENDING JUNE 30, 1992 THROUGH JUNE 30, 1996 F.Y. 1992 Actual Secretary of State Commissioner of Insurance Public Service Commission Workers' Compensation Banking and Finance Agriculture Labor All Other Departments 22,261,997 1,811,955 3,352,543 8,354,547 7,532,922 5,981,477 15,745,313 22,609,384 TOTAL REGULATORY FEES AND SALE 249,850,001 F.Y. 1993 Actual 23,310,690 5,053,408 4,991,812 9,071,326 8,038,047 6,230,885 16,711,306 22,873,239 324,458,975 F.Y. 1994 Actual 26,112,627 5,439,703 1,503,233 9,349,212 9,129,692 6,410,888 17,581,363 15,442,404 316,085,589 F.Y.1995 Estimated 24,000,000 6,000,000 5,000,000 16,000,000 9,000,000 6,000,000 19,000,000 24,000,000 354,000,000 F.Y. 1996 Estimated 26,000,000 7,000,000 5,000,000 17,000,000 10,000,000 7,000,000 21,000,000 24,000,000 376,000,000 TOTAL TAXES, FEES AND SALES .~ ... II. Net Proceeds from Georgia Lottery Corporation 7,371,963,588 8,266,576,008 8,906,515,809 9,492,000,000 10,134,000,000 362,420,743 366,428,044 435,656,569 III. Revenues from Indigent Care Trust Fund Receipts 140,440,391 139,287,133 146,300,000 GRAND TOTAL 9,409,376,943 9,997,715,177 10,715,956,569 Sources of State Revenue Actual and Estimated F.Y.1996 Through F.Y.1996 (In Percentages) ACTUALF.Y 1993 ACTUALF.Y 1994 EST. F.Y1995 EST. F.Y 1996 INCOME TAX 47.0 43.9 43.8 43.9 SALES TAX 36.0 34.6 35.5 35.7 ALL OTHER TAXES 7.5 7.6 6.9 6.4 MOTOR FUEL TAX 5.8 5.2 5.1 5.0 FEES&SALES 3.7 3.4 3.6 3.5 INDIGENT CARE 1.5 1.4 1.4 LOTTERY 3.8 3.7 4.1 22 How State Dollars Are Spent (In Percentages) 51.2 EDUCATION 52.3 HUMAN RESOURCES PROTECTION TRANSPORTATION DEBT SERVICE 1.7 GENERAL GOVERNMENT 1.7 1.2 NATURAL RESOURCES 1.2 1.1 LEGISLATIVElmDICIAL 1.2 0.9 ECONOMIC 0.9 F Y. 1995 Operating Budget FY. 1996 Governor's Recommendations (Governor's recommended salary adjustments included in F Y 1996 percentages) 23 STATEMENT OF FINANCIAL CONDITION STATE OF GEORGIA - JUNE 30,1994 ASSETS Cash and cash equivalents Investments Accounts Receivable State appropriation Amount available in debt service fund Amount to be provided for retirement of general long-term debt TOTAL ASSETS LIABILITIES AND FUND EQUITY Liabilities Undrawn appropriation allotments Cash overdraft Funds held for others General obligation bonds payable Total Liabilities Fund Equity Fund Balances Reserved Appropriation to Department of Transportation Midyear Adjustment Reserve Revenue Shortfall Reserve For Debt Service For Lottery for Education For Old State Debt For Guaranteed Revenue Debt Common Reserve Fund For Proposed Defense Finance and Accounting Service Facility Unreserved Designated Surplus Total Fund Equity Total Liabilities and Fund Equity $ 2,147,960,607.69 2,817,618,897.30 110,086,124.64 96,619,154.64 3,573,630,845.36 $ 8,745,915,629.63 $ 1,324,802,617.77 96,619,144.64 3,044,529,492.50 3,670,250,000.00 $ 8,136,201,254.91 $ 2,374,683.63 89,065,158.09 249,484,896.33 96,619,154.64 139,641,000.77 26,980.00 19,062,501.26 13,440,000.00 $ 609,714,374.72 0.00 $ 609,714,374.72 $ 8,745,915,629.63 24 STATEMENT OF FINANCIAL CONDITION STATE OF GEORGIA - JUNE 30,1993 ASSETS CURRENT ASSETS Cash and Temporary Investments in Department of Administrative Services, Fiscal Division: General Fund State of Georgia General Obligation Debt Sinking Fund Total Current Assets DEFERRED ASSETS: Funds to be provided from future appropnatlOns In accordance with Article VII, Section IV, Paragraph III of the Constitution of the State of Georgia for Retirement Bonds (See Footnote No.1) Total Assets $ 1,284,650,228.45 35,506,900.72 $ 1,320,157,129.17 2,843,563,099.28 $ 4,163,720,228.45 LIABILITIES AND FUND EQUITY CURRENT LIABILITIES: Unknown Allotments in Department of Administrative Services, Fiscal Division: General Fund $ 1,100,725,410.91 BONDED INDEBTEDNESS: Bonds Outstanding 2,879,070,000.00 Total Liabilities $ 3,979,795,410.91 FUND EQUITY Fund Balances: Reserved: Designated for 1994 Appropriation to Department ofTransportation (See Footnote No.2) Midyear Adjustment Reserve (See Footnote No.3) Revenue Shortfall Reserve (See Footnote No.4) Unreserved: Surplus June 30, 1993 $ 14,923,157.38 83,463,769.07 85,537,891.09 183,924,817.54 0.00 Total Fund Equity $ 183,924,817.54 Total Liabilities and Fund Equity $ 4,163,720,228.45 (1) Deferred Assets in the amount of $2,843,563,099.28 shown above is only that portion of the appropriation to be provided in future periods to offset the principal of outstanding bonded indebtedness. Appropriations will be made to provide for payment of interest as the interest becomes due. (2) The Reserved Fund Balance for 1994 Appropriation to the Department of Transportation in the amount of$14,923,157.38 is comprised ofthe following: A The Reserved Fund Balance for 1994 Appropriation to the Department ofTransportation in the amount of $14,551,713.77 is determined by comparing the net Motor Fuel Tax collection for the year ended June 30, 1993 to the estimated Motor Fuel Tax collection budgeted for the fiscal year ended June 30, 1993. B. The Reserved Fund Balance for 1994 Appropriation to the Department of Transportation in the amount of $371,443.61 represents funds derived from Motor Fuel Tax collection deposited in the State of Georgia Guaranteed Debt Common Reserve Fund in excess of the amount required and subsequently refunded to the General Fund. (3) The Midyear Adjustment Reserve was created by Act No. 1423 of the 1982 Session of the General Assembly. This Act provides that an amount equal to one percent ofthe net revenue collections be reserved from state surplus before provision has been made for the Revenue Shortfall Reserve. (4) The Revenue Shortfall Reserve was created by the 1976 Session ofthe General Assembly in lieu ofthe Working Reserve. This Act provides that an amount up to three percent of the net revenue collections of the fiscal year be reserved from the state surplus after the one percent Midyear Adjustment Reserve has been made. 25 RECOMMENDED DISTRIBUTION OF LOTTERY PROCEEDS BY PROGRAMS State law (50-27-1 et seq. O.C.G.A.) provides that the proceeds from the lottery be appropriated for programs in three areas: a voluntary pre-kindergarten for four-year-olds; scholarships and student loans; and capital improvements for education. The lottery proceeds are projected to be $435,656,569 for F.Y. 1996. The Governor recommends continuing the F. Y. 1995 reserve of $36,000,000 and recommends the addition of $6,500,000 for a total reserve of $42,500,000. Also, the Governor recommends that $8,600,000 be established as a scholarship reserve, pursuant to 50-27-13. The Governor recommends $420,556,569 for the following programs. Growth in Lottery Programs FY 1994 FY 1996 (*Proposed) FY 1994 FY 1995 FY 19951iner11ed' FY 1996' Legend II fi! Capital Expenditures Scholmbips B Pre-Kinda};arten Voluntary Pre-Kindergarten for Four-Year-Olds This program is designed to give Georgia's four-year-olds developmentally appropriate programs to enable them to begin primary school ready to learn. The Governor recommends funding of $157,646,245 for third year funding to serve all estimated participating students in Georgia counties. This funding level includes professional positions and administrative costs within the Department of Education and grants to recipients, which may include school systems as well as other public or private providers. The State Board of Education will administer the program and develop administrative procedures, rules and regulations to ensure its timely and effective implementation. Helping Outstanding Pupils Educationally (HOPE) and Other Scholarship Programs This program is designed to increase higher education participation and completion rates for Georgia students. The Governor's recommendation for the HOPE program for F.Y. 1996 consists of the following components. All Georgia high school students who graduated in the 1993-94 school year and beyond with a minimum of a 3.0 cumulative grade point average in the college preparatory curriculum or a 3.2 cumulative grade point average in other curricula will be eligible to receive a HOPE grant equal to the difference between the amount paid by Pell or other federal grants and the cost of tuition and mandatory fees at any Georgia public college which the student actually attends. The grant will be paid to the college. College sophomores who were eligible for HOPE grants in 1993-94 and beyond who earned a 3.0 cumulative grade point average for their freshman year at a University System institution will receive a grant equal to the difference between the cost of tuition and mandatory fees and the amount paid by Pell or other federal grants. College juniors who earned a 3.0 cumulative grade point average at the end oftheir sophomore year at a University System institution will receive a grant equal to the difference between the cost of tuition and mandatory fees and the amount paid by Pell or other federal grants, as will HOPE scholars in 1993-94 who lost HOPE eligibility after their freshman year but achieved a 3.0 cumulative grade point average at the end oftheir sophomore year. College seniors who earned HOPE grants at the end of their sophomore year in 1993 -94 who maintained a 3.0 grade point average at the end oftheir junior year will retain HOPE eligibility for their senior year. An allowance for textbooks will also be provided all eligible students as part of the HOPE grant. The Governor's recommendation provides that all students entering their junior or senior years in 1995-96 who possess a cumulative grade point average in college of 3.0 or higher will be eligible for HOPE grants, whether or not they were initially identified as HOPE scholars. All students working towards a diploma at public technical institutes in the state will receive a grant equal to the cost of tuition and mandatory fees not paid by Pell or other federal grant programs. Students, beginning with those graduating from high school in the 1992-93 school year, working towards a degree at public technical institutes in the state, who earned a minimum of 3.0 cumulative grade point average in the college preparatory curriculum or a 3.2 cumulative grade point average in other curricula in high school, will receive a HOPE grant equal to the difference between the cost of tuition and mandatory fees and the amount earned by Pell or other federal grant programs. An allowance for textbooks will also be provided all eligible students as part ofthe HOPE grant. Beginning July 1, 1993, any Georgia 26 resident who earns a GED will receive a certificate worth $500 which may be spent for education-related purposes such as tuition, books, supplies, or expenses related to the furtherance of the resident's postsecondary education. A second-tier HOPE Tuition Equalization Grant of $1 ,500 per student will be given to all freshmen, sophomores, juniors and seniors who attend eligible postsecondary institutions in the state. This will be in addition to existing Tuition Equalization Grants. The HOPE program will be administered by the Georgia Student Finance Commission. All non-administrative costs will be distributed to the University System and technical institutes. The total cost for this program is projected to be $105,645,000. The Georgia Military Scholarship Program will provide 60 military scholarships for Georgia Military College students. Eligible students will receive a low interest loan which will be forgiven if the individual participates in the reserve or in active duty in the United States armed forces. Total cost for F. Y. 1996 is $336,000. The HOPE Teacher Scholarship Program will provide forgivable loans to teachers who desire to obtain advanced degrees in teaching areas in which the supply of prospective teachers is in critical shortage or desire to obtain critical teaching skills enhancements. Recipients who teach four years in Georgia public schools after receiving the loan would have their loans forgiven. Others would have one-quarter of the loan forgiven for each year they teach in Georgia public schools. The cost of this program in F.Y. 1996 is $10,000,000. The Governor also recommends funding for the Promise program, which would provide forgivable loans of $3,000 per year to eligible, high achieving students who aspire to be teachers in Georgia public schools. Students, both resident and non-resident, who have completed their fIrst two years of course work in the public or private colleges with a minimum grade point average of 3.6 will be eligible to receive the loans. For each year a Promise scholar teaches in the public schools after graduation, one-quarter of the loan will be considered repaid, so that after four years of teaching the loan will be repaid in full. Loan funds may be used for tuition, dormitory fees, child care, transportation or any other expenses related to education at the student's discretion. The amount recommended in lottery funds would fund 1,000 eligible full-time equivalent students per year. The Governor recommends $1,150,000 to pay the postsecondary tuition for high school students participating in the Postsecondary Options Program pursuant to 20-2-161.1 O.C.GA For F.Y. 1996, the Governor recommends that those students living beyond reasonable commuting distances from public colleges but living within reasonable commuting distances from private colleges be allowed to attend private colleges under the Postsecondary Options Program. The estimated cost of this provision is $50,000. Funds are also recommended to provide a full scholarship program for the dependent children of public safety officers killed or permanently disabled in the line of duty. The cost of this program for F.Y. 1996 is $100,000. The total cost of all scholarship, loan and grant programs recommended by the Governor is $120,281,000. Capital Expenditures for Education For F. Y. 1996, the Governor recommends the following capital expenditures: for the State Board ofEducation, $8,000,000 for special needs capital outlay for the pre-kindergarten program, $1,000,000 for an additional Learning Logic site in each of Georgia's eleven congressional districts, $500,000 in equipment and software for the Next Generation Schools program; for the Board of Regents, $1,050,000 to complete the Chancellor's library initiative, $4,464,000 for the Chancellor's initiative connecting students and services, $7,555,000 for the Chancellor's initiative providing educational technology for professors and students, $20,000,000 to continue ($15,000,000) and expand ($5,000,000) the Equipment, Technology and Construction Fund, $5,000,000 for the Chancellor's rehabilitation projects initiative, $5,000,000 for instructional technology for additional alternative school sites, $900,000 for additional hardware and software in the instructional technology centers, $14,129,000 for laboratory equipment for the Georgia Research Alliance, $7,788,000 for facility renovation and construction related to the Georgia Research Alliance, $7,000,000 to provide funding and equipment for the Food Safety Laboratory, and $7,826,611 to renovate the Old Capitol Building and Georgia Military College, $300,000 for renovations to the Old Governor's Mansion on the Georgia College campus, $4,200,000 for a state library and museum, and an additional $11,600,000 to complete the reconstruction at Albany State College (in addition to the F.Y. 1995 amended request); for the Department of Technical and Adult Education, funds to construct or design satellite centers in Elbert County ($6,959,301), McDuffie County ($5,970,729), Gordon County ($136,000 in design funds), DeKalb County ($8,655,000), Forsyth County ($6,891,830), and Early County ($300,000), $6,403,253 for equipment for facilities under construction, and $1,000,000 for equipment for 25 new literacy teachers. 27 Governor's Recommended Lottery Expenditures By Agency FY 1996 Regents $96,812,611 23% DTAE $36,316,713 9% SBOE $168,346,245 40% GSFC $119,081,000 28% REGENTS DTAE SBOE GSFC Regents, University System of Georgia Department of Technical and Adult Education State Board ofEducation Georgia Student Finance Commission 28 Governor's Recommended Lottery Expenditures By Program FY 1996 Capital Expenditure $142,629,324 34% PreKindergarten $157,646,245 37% Scholarships $120,281,000 29% 29 RECOMMENDED SALARY ADJUSTMENTS FISCAL YEAR 1996 GOVERNOR'S RECOMMENDATIONS 1. Provide for 5% merit increases for employees of the Judicial, Legislative and Executive branches to be awarded on each employees anniversary date. An employee must receive a performance rating of "satisfactory" or better on his or her annual performance appraisal in order to receive this increase. Provide for an increase of 5% for each state official (excluding members of the General Assembly) whose salary is set by Act 755 (H.B. 262) of the 1978 Regular Session of the Georgia General Assembly, as amended, as authorized in said act, Code Section 45-7-4 effective July 1, 1995. Provide for an increase of 2.5% for members of the General Assembly effective July 1, 1995. 57,173,831 2. Provide for a 6% increase in state base salary on the teacher salary schedule for the State Board of Education and Department of Technical and Adult Education effective September 1, 1995. Provide for a 5% increase for bus drivers and lunchroom workers effective July 1, 1995. This proposed teacher salary improvement is in addition to the salary increases awarded to teachers through normal progression on the teacher salary schedule. 157,246,555 3. Provide a 6% funding level for merit increases for Regents faculty and support personnel to be awarded on July 1, 1995 for non-academic personnel and on September 1, 1995 for academic personnel. 59,890,116 4. Reassign the Youth Development Worker and Senior Youth Development Worker job classes one paygrade with a 6% percent increase to incumbents in those classes. 794,000 5. Increase Personal Services funding in the Department of Law to provide for salary upgrades. 469,874 6. Increase the base hour rate for temporary employees in the Department of Revenue 25 cents per hour. 136,662 7. Provide a 5% salary increase for incumbents in the Wildlife Technician job class. 250,700 8. Create and improve career ladders for affected Pardons and Paroles employees through the following: 400,000 - Establish the Parole Investigator and Chief Parole Officer job classes; - Reassign the Parole Review Officer job class by two paygrades, and the Senior Parole Review Officer job class by three paygrades; and - Increase the special supplement for parole officers with intensive caseloads. 9. Provide a 4% salary increase for incumbent scientists in the Georgia Bureau of Investigation's Forensic Science Division. 190,106 30 RECOMMENDED SALARY ADJUSTMENTS GOVERNOR'S RECOMMENDATIONS TOTAL - To be transferred to the appropriate budget units 276,551,844 Less: Amount already included in the funding fonnula for Regents in this document (59,890,116) GRAND TOTAL - To be transferred to the appropriate budget units 216,661,728 31 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I DEPARTMENT BUDGET SUMMARIES 33 EXPENDITURES AND APPROPRIATIONS BY DEPARTMENT STATE FUNDS General Assembly Audits, Department of Judicial Branch Administrative Services, Department of Agency for the Removal of Hazardous Materials Agriculture, Department of Banking and Finance, Department of Children and Youth Services, Department of .. Community Affairs, Department of tH 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 Labor, Department of Law, Department of Medical Assistance, Department of Natural Resources, Department of Public Safety, Department of Public School Employees' Retirement System Public Service Commission Regents, University System of Georgia Revenue, Department of Secretary of State, Office of F.Y. 1993 Actual 19,612,696 14,887,245 61,034,703 32,345,061 99,834 35,665,785 7,075,106 77,654,088 14,027,076 525,046,839 3,585,259 3,070,029,989 250,000 31,451,958 35,627,156 24,861,792 963,325,755 15,962,468 12,831,334 16,455,582 8,449,583 961,248,964 59,209,813 100,065,322 9,622,000 7,916,341 938,986,648 79,665,363 23,292,885 F.Y. 1994 Actual 19,496,877 15,593,555 62,046,361 34,195,552 105,478 37,389,772 8,025,013 84,606,999 21,093,724 599,350,661 4,003,956 3,379,427,147 165,570 33,506,709 37,391,596 27,955,721 1,027,733,553 16,955,189 13,813,829 16,007,702 8,970,613 1,108,496,649 71,661,965 98,692,756 9,629,000 8,142,597 1,051,261,943 79,594,913 24,831,568 F.Y. 1995 Budgeted 24,203,650 16,988,425 69,625,272 36,140,264 111,759 39,951,993 8,614,966 89,554,868 29,392,390 669,799,264 4,087,965 3,531,338,321 2,880,000 34,884,307 41,358,201 28,264,727 1,126,827,006 19,316,102 14,648,410 17,176,250 10,320,106 1,293,425,783 81,472,047 107,115,432 9,640,000 8,382,229 1,180,303,526 86,628,745 28,276,304 F.Y. 1996 Department's Request 24,378,976 18,582,859 77,888,260 43,452,135 114,727 61,407,757 9,237,927 157,296,976 62,102,773 917,391,473 11,786,167 4,467,966,062 39,356,670 65,075,189 33,767,299 1,429,009,904 44,099,631 16,624,774 18,728,619 12,247,727 1,394,357,630 132,973,775 146,246,914 9,725,000 9,524,890 1,494,805,905 134,164,669 37,554,865 F.Y.1996 Governor's Recommendation 24,378,976 18,582,859 77,888,260 37,791,968 114,727 40,339,829 8,898,240 124,891,065 27,841,561 704,107,472 4,131,066 3,725,736,179 35,696,298 44,816,805 31,174,939 1,195,320,692 27,367,139 15,016,856 17,925,959 11,419,864 1,344,623,942 89,999,056 110,418,335 9,725,000 8,599,239 1,351,495,374 93,478,189 30,116,790 EXPENDITURES AND APPROPRIATIONS BY DEPARTMENT STATE FUNDS 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 State of Georgia General Obligation Debt Sinking Fund Salary Adjustments TOTAL STATE FUNDS CH UI F.Y. 1993 Actual 1,594,229 25,951,808 3,639,965 120,822,449 314,376,540 20,831,901 9,276,435 398,866,359 8,045,646,331 F.Y.1994 Actual 1,797,302 49,947,685 3,669,018 159,651,724 304,426,512 22,471,140 9,724,911 456,487,573 8,908,322,833 F.Y.1995 Budgeted 1,926,187 112,970,008 3,925,000 166,983,138 450,915,497 23,661,066 10,142,885 404,008,338 9,785,260,431 F.Y. 1996 Department's Request 8,345,592 133,922,601 4,075,000 308,248,052 778,862,828 27,210,331 10,856,672 427,282,090 12,568,672,719 F.Y. 1996 Governor's Recommendation 2,173,265 149,803,198 4,075,000 196,174,914 456,274,006 23,672,934 10,210,220 429,914,625 216,661,728 10,700,856,569 EXPENDITURES AND APPROPRIATIONS BY DEPARTMENT TOTAL FUNDS General Assembly Audits, Department of Judicial Branch Administrative Services, Department of Agency for the Removal of Hazardous Materials Agriculture, Department of Banking and Finance, Department of Children and Youth Services, Department of Community Affairs, Department of eN 0\ Corrections, Department of Defense, Department of Education, State Board of Employees' Retirement System Forestry Commission, State Georgia Bureau of Investigation Georgia State Finance and Investment Commission Governor, Office ofthe Human Resources, Department of Industry, Trade and Tourism, Department of Insurance, Office of Commissioner of Labor, Department of Law, Department of Medical Assistance, Department of 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 F.Y. 1995 Appropriations 24,203,650 16,988,425 72,625,594 183,104,749 111,759 47,249,920 8,614,966 93,399,735 120,057,463 675,917,349 12,466,127 4,076,442,395 6,993,455 39,704,079 41,358,201 1,964,673 35,347,965 2,261,885,880 20,500,902 15,808,410 161,534,366 11,226,873 3,681,236,092 990,154,952 121,388,288 112,910,432 9,640,000 10,233,234 2,188,437,891 Total Funds 24,378,976 18,582,859 81,023,749 179,830,652 114,727 47,872,806 8,898,240 128,574,940 60,337,050 710,320,002 15,858,929 4,227,195,607 4,106,228 40,584,470 44,816,805 1,960,813 38,699,416 2,349,869,728 28,296,939 16,323,656 163,523,255 12,325,804 3,826,609,456 1,032,692,971 130,175,445 116,122,075 9,725,000 10,910,033 2,4 70,399,688 F.Y. 1996 Recommendations State Funds Federal Funds 24,378,976 18,582,859 77,888,260 2,458,372 37,791,968 114,727 40,339,829 8,898,240 124,891,065 27,841,561 704,107,472 4,131,066 3,725,736,179 3,293,692 30,904,056 1,260,010 11,473,251 496,894,037 35,696,298 44,816,805 822,000 31,174,939 1,195,320,692 27,367,139 15,016,856 17,925,959 11,419,864 1,344,623,942 6,645,140 904,929,577 1,256,440 143,764,978 2,390,519,461 89,999,056 110,418,335 9,725,000 8,599,239 1,351,495,374 9,352,470 2,923,740 2,310,794 All Other Funds 677,117 142,038,684 4,239,285 3,683,875 1,591,433 4,952,520 254,612 4,565,391 4,106,228 4,066,172 1,960,813 879,337 249,619,459 929,800 50,360 1,832,318 905,940 91,466,053 1,032,692,971 30,823,919 2,780,000 1,118,904,314 EXPENDITURES AND APPROPRIATIONS BY DEPARTMENT TOTAL FUNDS 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 State of Georgia General Obligation Debt Sinking Fund Salary Adjustments eN -...I TOTAL APPROPRIATIONS F.Y.1995 Appropriations 91,310,716 29,321,304 2,488,843 121,244,457 10,097,889 197,856,767 1,007,582,783 30,157,557 10,332,885 404,008,338 16,945,909,364 Total Funds 98,179,060 31,161,790 2,341,726 158,198,325 10,380,035 230,048,543 1,098,721,182 30,978,658 10,400,220 429,914,625 216,661,728 18,117,116,211 F.Y. 1996 Recommendations State Funds Federal Funds 93,478,189 30,116,790 2,173,265 149,803,198 4,075,000 196,174,914 456,274,006 23,672,934 10,210,220 429,914,625 216,661,728 168,461 2,114,073 19,576,431 625,120,834 7,305,724 10,700,856,569 4,663,093,541 All Other Funds 4,700,871 1,045,000 6,281,054 6,305,035 14,297,198 17,326,342 190,000 2,753,166,101 I I G E 0 R G I A E L E C TOR A T E SUPREME I COURT I I I ACOPPUERATLOSF COMMISSIONER OF LABOR DEPARTMENT OF LABOR --~ --- ---~--~ I I I SUCOPEURRITOSR ADTISTTORRNICETYS II: 1 45 SUPERIOR ------- COURT CIRCUITS -------.. 11 STATE SUPERINTENDENT OF SCHOOLS STATE BOARD OF EDUCATION DEPARTMENT OF EDUCATION I I PROFESSIONAL PRACTICES COMMISSION I I G 0 V ERN 0 R COMMISSIONER OF INSURANCE COMMISSIONER OF AGRICULTURE OFFICE OF COMMISSIONER OF INSURANCE DEPARTMENT OF AGRICULTURE I I I I 1 1 GEORGIA SEED TECHNOLOGY AND DEVELOPMENT COMMISSION GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY GEORGIA DEVELOPMENT AUTHORITY OFFICE OF CONSUMER AFFAIRS CONSUMERS' UTILITY COUNSEL GEORGIA COUNCIL ON VOCATIONAL EDUCATION CRIMINAL JUSTICE COORDINATING COUNCiL CHILDREN AND YOUTH COORDINATING COUNCIL OFFICE OF OLYMPIC COORDINATION GOVERNOR'S DEVELOPMENT COUNC IL HUMAN RELATIONS COMMISSION PROFESSIONAL STANDARDS COMMISSION GEORGIA EMERGENCY MANAGEMENT AGENCY f-.-------------,-------- ----.-------------,-1 I OFF ICE OF OFFICE OF THE GOVERNOR'S 1 I PLANNING GOVERNOR OFFICE 1---- I AND BUDGET )L.- -' L.- ' I1 L _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ... ~ - - - - - - - - - - - COMMISSION ON EQUAL OPPORTUNITY I DEPARTMENT OF IDEPARTMENT OF ADMINISTRATIVE SERVICES I BANKING AND FINANCE I I I BOARD OF COMMUNITY AFFAIRS DEPARTMENT OF COMMUNITY AFFAIRS GEORGIA BUILDING AUTHORITY AGENCY FOR REMOVAL OF HAZARDOUS MATER IALS STATE PROPERTIES COMMISSION HEALTH PLANNING REVIEW BOARD GEORGIA NET AUTHORITY GEORGIA GOLF HALL OF FAME I I GEORGIA ENVIRONMENTAL FACILITIES AUTHORITY GEORGIA HOUSING AND FINANCE AUTHOR ITY GEORGIA MUSIC HALL OF FAME AUTHOR ITY GEORGIA SPORTS HALL OF FAME BOARD OF CORRECTIONS BOARD OF PAROONS AND PAROLES DEPARTMENT OF CORRECTIONS IDEPARTMENT OF DEFENSE I I 1 I GA. CORRECTIONAL INDUSTRIES ADMINISTRATION BOARD OF INDUSTRY. TRADE AND TOURISM DEPARTMENT OF INDUSTRY. TRADE AND TOURISM I GEORGIA PORTS AUTHORITY WORLD CONGRESS CENTER BOARD OF MEDICAL ASSISTANCE DEPARTMENT OF MEDICAL ASSISTANCE STATE PERSONNEL BOARD STATE MERIT SYSTEM OF PERSONNEL ADMIN. BOARD OF NATURAL RESOURCES DEPARTMENT OF NATURAL RESOURCES \ BOARD OF TECHNICAL AND ADULT EDUCATION DEPARTMENT OF TECHNICAL AND ADULT EDUCATION JEKYLL IS. ST. PK. AUTHORITY STONE MOUNTAIN ST. MEMORIAL ASSOCIATION LAKE LANIER IS. DEV. AUTHORITY AGRICULTURAL EXPOSITION AUTHORITY STATE BOXING COMMISSION GEORGIA STATE GAMES COMMISSION 38 BOARD OF PUBLIC SAFETY DEPARTMENT OF REVENUE DEPARTMENT OF PUBLIC SAFETY I I. I~EDRGIA BUREAU . OF INVESTIGATION GEORGIA POLICE ACADEMY OFFICE OF HIGHWAY SAFETY GEORGIA FIRE ACADEMY GEORGIA PEACE OFFICER STANDARDS AND TRAINING COUNCIL GEORGIA FIREFIGHTER STANDARDS AND TRAINING COUNCIL GEORGIA PUBLIC SAFETY TRAINING CENTER ATTORNEY GENERAL DEPARTMENT Of LAW I PUBLIC SERVICE COMMISSION SECRETARY Of STATE III I EUTENANT GOVERNOR OffiCE Of THE SECRETARY Of STATE I I I I I I IrATE ETHICS COMMISSION I REAL ESTATE COMMISSION DRUG AND NARCOTICS AGENCY GENERAL ASSEMBLY PRESIDENT Of THE SENATE SPEAKER Of THE HOUSE SENATE HOUSE Of REPRESENTATIVES I ILEGISLATIVE SERViCES COMMITTEE I I DEPARTMENT Of AUDITS OffiCE Of THE LEGISLATIVE fiSCAL OffiCER OffiCE Of THE LEGISLATIVE BUDGET ANAL YST I I OLEffGiCISELAOTIfVE COUNSEl BD. Of TRUSTEES-ST. EMPLOYEES' RETIREMENT SYSTEM BD. Of TRUSTEES-PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM ST. EMPLOYEES' RETIREMENT SYSTEM Of GA. /PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM Of GA. STATE fORESTRY COMMISSION STATE fORESTRY COMMISSION GEORGIA STATE fiNANCING AND INVESTMENT COMMISSION BOARD Of HUMAN RESOURCES DEPARTMENT DEPARTMENT Of - STATE TRANSPOR- TRANSPOR- TATION TATION BOARD HEALTH PLANNING AGENCY CHILDREN'S TRUST fUND BOARD Of REGENTS UNIVERSITY SYSTEM Of GEORGIA STATE SOIL AND WATER CONSERVATION COMMISSION I I PUBLIC TElECOMMUN I CATIONS COMMISSION STATE MEDICAL EDUCATION BOARD GEORGIA STUDENT fiNANCE COMMISSION GEORGIA STUDENT fiNANCE AUTHORITY GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION GEORGIA STUDENT fiNANCE COMMISSION BOARD Of TRUSTEES TEACHERS' RETIREMENT SYSTEM TEACHERS' RETIREMENT SYSTEM Of GEORGIA VETERANS SERVICE BOARD STATE DEPARTMENT Of VETERANS SERVICE STATE BOARD Of WORKERS' COMPENSATION BOARD Of GEORGIA LOTTERY CORPORATION GEORGIA LOTTERY CORPORATION I "- - - - - - INONPUBLIC POST- I SECONDARY EDUCATION COMMISSION I I STATE COMMISSION ON THE CONDEMNATION Of PUBLIC PROPERTY 39 BOARD Of CHILDREN AND YOUTH SERVICES DEPARTMENT Of CHILDREN AND YOUTH SERVICES GENERAL ASSEMBLY Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Personal Services Personal Services - Elected Officials Personal Services - Combined Regular Operating Expenses Travel- Staff Travel- Elected Officials Travel - Combined Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and ContractsStaff Per Diem, Fees and ContractsElected Officials =01>0. Per Diem, Fees and ContractsCombined Photography Expense Reimbursement Total Expenditures/Appropriations STATE FUNDS 13,522,438 2,415,809 28,387 247,329 306,682 3,680 464,305 1,591,107 54,649 978,310 19,612,696 19,612,696 13,895,590 1,785,064 34,895 207,223 269,237 3,680 491,831 1,802,003 64,413 942,941 19,496,877 19,496,877 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS 12,482,319 3,809,504 12,892,417 3,693,265 2,789,448 86,500 7,000 2,612,366 86,500 7,000 183,500 488,000 5,000 656,000 103,970 222,000 538,000 5,000 667,000 93,970 2,389,609 2,333,658 70,000 1,132,800 24,203,650 24,203,650 95,000 1,132,800 24,378,976 24,378,976 * The budget request for the General Assembly has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. DESCRIPTION: The Constitution provides that the legislative power of the state shall be vested in the General Assembly, which consists of the Senate and the House of Representatives. The General Assembly convenes in regular session annually on the second Monday in January. With two exceptions, all bills may originate in either the Senate or the House of Representatives, but all bills must be passed by both branches and signed by the Governor before becoming law. The exceptions are bills raising revenue and bills that appropriate money, which can originate only in the House. In the event of the Governor's veto of any bill during a session, it can be overriden by a two-thirds majority vote of both houses. EXPLANATION OF REQUEST: The General Assembly requests an increase of $175,326 for operations in F.Y. 1996. REQUESTED APPROPRIATION: The General Assembly is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $24,378,976. DEPARTMENT OF AUDITS Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Total Expenditures/Appropriations STATE FUNDS 12,595,303 368,466 506,738 106,056 9,570 806,168 39,000 357,029 98,915 14,887,245 14,887,245 12,999,723 386,453 489,344 117,178 14,949 803,605 36,807 634,983 110,513 15,593,555 15,593,555 14,245,693 428,820 560,650 105,102 47,380 852,070 34,000 579,710 135,000 16,988,425 16,988,425 15,036,132 431,558 517,410 297,000 32,500 869,790 44,250 540,232 138,124 17,906,996 17,906,996 381,103 8,960 16,000 27,000 14,800 30,000 198,000 675,863 675,863 * The budget request for the Department of Audits has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. ....01>. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETED APPROPRIATIONS FUND CHANGES FOR: 16,988,425 1. Basic current services. 2. Improvements: a. Provide a comprehensive audit software program to perform audit tasks by computer. b. Employ 16 interns to conduct on-site reviews of non-emergency transportation providers for the Department of Medical Assistance. Also adds 4 staff auditors to supervise interns. c. Add computers and a real estate appraisal software program for the department's 12 sales ratio appraisers. 918,571 121,000 461,863 TOTAL FUND CHANGES 1,594,434 TOTAL BUDGET REQUEST - F.Y. 1996 18,582,859 DESCRIPTION: The Department of Audits performs the following functions: (I) annual audits of state departments, institutions, agencies, commissions, bureaus and offices of the state and public school system which receive state aid; (2) establish and maintain accounting systems and controls to insure that funds are expended and administered according to law; (3) insure that stores, equipment and property of the state are protected and properly used; and (4) establish and maintain an equalized School Property Tax Digest for each county in the state as a whole on an annual basis. REQUESTED APPROPRIATION: The Department ofAudits is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $18,582,859. DEPARTMENT OF AUDITS I --------- State Auditor - In additiol to the duties of State Auditor, also serves on a number of State boards, authorities and cOlTlTlissions I Medicaid and Local Government Audits Division - Conducts audits of various Medicaid providers - Conducts reviews of local governments' audits - Drafts certifications on retirement bills and administers reports of all governmental retirement systems - Drafts fiscal notes on bills introduced in General Assembly I EDP Technical Assistance Division - Coordinates all EDP functions of the Department and provides support to the various audit operations divisions - Reviews proposed system changes of various agencies - Conducts EDP audits and reviews Financial Audit Operations Division - Conducts financial and compliance audits/ reviews of State agencies, authorities, boards and cOlTlTlissions - Conducts financial and compliance audits/ reviews of colleges and universities under the Board of Regents - Conducts financial and compliance audits of county and city boards of education, regional libraries and regional educational service agencies I Performance Audit Operations Division - Conducts performance audits on State programs - Conducts regulatory board audits - Conducts operational audits on systems, processes, and procedures - Conducts program evaluations jointly with OPB pursuant to provisions of S.B. 335 Professional Practice Division I Sales Ratio Division - Establishes uniform State chart of accounts - Publishes State Auditor's Annual Report and Salary and Per Diem Supplements - Prepares and publishes Comprehensive Annual Financial Report and Statewide Single Audit - Provides various support services to the various audit operations divisions - Performs quality assur- ance services for other divisions - Prepares cost study manual for property appraisal work - Appraises real estate properties - Records value of property sales for all counties - Records tax assessment to county sales ratio worksheets - Compares county sales ratio worksheets to county tax digests - Conducts hearings and arbitrations (if any) on sales ratio study results with counties - Prepares and publishes annual sales ratio study for each county 42 SUPREME COURT Budget Classes/Fund Sources I PRIOR YEARS F.Y.1993 F.Y.1994 EXPENDITURES EXPENDITURES Personal Services Operating Expenses Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Total Federal and Other Funds STATE FUNDS 4,061,891 1,288,789 5,350,680 698,597 698,597 4,652,083 4,245,086 1,509,412 5,754,498 77,458 539,761 617,219 5,137,279 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS ** F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS 4,594,033 1,485,605 6,079,638 4,742,184 1,556,439 6,298,623 646,243 646,243 5,433,395 627,1I7 627,1l7 5,671,506 * The budget request for the Supreme Court has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS ". c.H F.Y. 1995 BUDGETED APPROPRIATIONS 5,433,395 FUND CHANGES FOR: 1. Basic current services. TOTAL FUND CHANGES 238,1 II TOTAL BUDGET REQUEST - F.Y. 1996 5,671,506 REQUESTED APPROPRIATION: The Supreme Court is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $5,671,506. ** Excludes Georgia Office of Dispute Resolution (See Georgia Office of Dispute Resolution) COURT OF APPEALS Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Personal Services Operating Expenses Total Expenditures/Appropriations Less Federal and Other Funds OtherFWlds Total Federal and Other FWlds STATE FUNDS 4,965,063 679,589 5,644,652 53,897 53,897 5,590,755 5,110,448 713,207 5,823,655 59,261 59,261 5,764,394 F.Y.I995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS 5,615,839 703,577 6,319,416 5,876,348 732,680 6,609,028 710,092 710,092 50,000 50,000 6,269,416 50,000 50,000 6,559,028 710,092 * The budget request for the Court of Appeals has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS t F.Y. 1995 BUDGETEDAPPROPRlATIONS 6,269,416 FUND CHANGES FOR: 1. Basic current services. 2. Improvements: a. Enhance salaries to provide a more competitive salary structure. b. Add 2 positions to provide additional support for the operation of the court. c. Add 5 attorney positions and associated expenses to address increased workloads. 289,612 55,454 118,203 536,435 TOTAL FUND CHANGES 999,704 TOTAL BUDGET REQUEST - F.Y. 1996 7,269,120 REQUESTED APPROPRlATION: The Court ofAppeals is the budget Wlit for which the following State FWld Appropriation for F.Y. 1996 is requested: $7,269,120. SUPERIOR COURTS Budget ClasseslFund Sources I PRIOR YEARS F.Y.1993 F.Y. 1994 EXPENDI11JRES EXPENDI11JRES F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS Court Operations Council of Superior Court Judges Judicial Administrative Districts Prosecuting Attorneys' Council Sentence Review Panel Habeas Corpus Clerk Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Total Federal and Other Funds STATE FUNDS 43,416,847 114,304 1,561,650 1,791,715 153,260 1,592 47,039,368 824,595 111,842 936,437 46,102,931 45,318,827 126,549 1,283,701 2,651,496 156,660 49,537,233 1,770,839 1,749,892 3,520,731 46,016,502 49,839,417 135,417 1,242,858 1,969,089 168,158 53,354,939 2,304,079 2,304,079 51,050,860 51,503,270 341,297 1,303,017 2,282,324 55,429,908 2,458,372 2,458,372 52,971,536 32,000 32,000 32,000 ~ UI * The budget request for the Superior Courts has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETED APPROPRIATIONS 51,050,860 FUND CHANGES FOR: 1. Basic current services. 2. Improvements: a. Survey local courtrooms and recommend plans to make courtrooms accessible to persons with disabilities. b. Allow District Court Administrators to attend courtroom teclmology conferences and training seminars. 1,920,676 20,000 TOTAL FUND CHANGES 1,952,676 TOTAL BUDGET REQUEST - F.Y. 1996 53,003,536 REQUESTED APPROPRIATION: The Superior Courts is the budget unit for which the following State Fund Appropriation for F. Y. 1996 is requested: $53,003,536. JUVENILE COURTS Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Operating Expenses Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Total Federal and Other Funds STATE FUNDS 1,743,847 1,743,847 897,122 897,122 846,725 1,205,133 1,205,133 293,435 293,435 911,698 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS 1,023,530 1,023,530 1,050,000 1,050,000 150,000 150,000 1,023,530 1,050,000 150,000 * The budget request for the Juvenile Courts has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETED APPROPRIATIONS Q""\' FUND CHANGES FOR: 1,023,530 1. Basic current services. 2. Improvements: a. Replace federal funds for work, tutoring and counseling programs run by local juvenile courts. 26,470 TOTAL FUND CHANGES 176,470 TOTAL BUDGET REQUEST - F.Y. 1996 1,200,000 REQUESTED APPROPRIATION: The Juvenile Courts is the budget unit for which the following State Fund Appropriation for F. Y. 1996 is requested: $1,200,000. GEORGIA COURTS AUTOMATION COMMISSION FINANCIAL SUMMARY Budget Classes/Fund Sources I PRIOR YEARS" F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Operating Expenses State-wide County Computerized Information Network Total Expenditures/Appropriations STATE FUNDS 561,763 682,568 1,244,331 1,244,331 667,635 683,800 1,351,435 1,351,435 1,411,250 185,250 1,596,500 1,596,500 * The budget request for the Georgia Courts Automation Commission has been included in the Governor's recommendation in estimating the total financial needs of the state for F. Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETED APPROPRIATIONS 1,244,331 FUND CHANGES FOR: ". -...I I. Basic current services. 2. Inlprovements: a. Continue the installation of Sustain software into 150 courts at a cost of $7,000 per court. b. Provide for conversion of local courts' pending cases into Sustain format. c. Increase the State-Wide County Computerized Information Network funding to include district attorneys on the Offender Based Tracking System. d. Add 1 technical position to assist with the implementation of Sustain software. 107,104 1,050,000 300,000 185,250 TOTAL FUND CHANGES 1,703,604 TOTAL BUDGET REQUEST - F.Y. 1996 2,947,935 REQUESTED APPROPRIATION: The Georgia Courts Automation Commission is the budget unit for which the following State Fund Appropriation for F. Y. 1996 is requested: $2,947,935. ** Included in the budget unit for the Judicial Council (See Judicial Council) INDIGENT DEFENSE COUNCIL Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS Operating Expenses Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Total Federal and Other Funds STATE FUNDS 2,311,405 2,311,405 96,775 1,204,672 1,301,447 1,009,958 2,565,062 2,565,062 56,683 1,508,379 1,565,062 1,000,000 2,000,000 2,000,000 2,200,000 2,200,000 2,000,000 2,200,000 2,500,000 2,500,000 2,500,000 * The budget request for the Indigent Defense Council has been included in the Governor's reconuuendation in estimating the total financial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS ~ F.Y. 1995 BUDGETED APPROPRIATIONS FUND CHANGES FOR: 1. Basic current services. 2. Improvements: a. Provide for legal representation in juvenile courts. b. Assure continued operation of the Multi-County Public Defenders' Office. 2,000,000 200,000 2,000,000 500,000 TOTAL FUND CHANGES 2,700,000 TOTAL BUDGET REQUEST - F.Y. 1996 4,700,000 REQUESTED APPROPRIATION: The Indigent Defense Council is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $4,700,000. INSTITUTE OF CONTINUING JUDICIAL EDUCATION FINANCIAL SUMMARY Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y. 1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS Institute's Operations Magistrate Courts Training Council Municipal Courts Training Council Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Total Federal and Other Funds STATE FUNDS 582,529 281,520 864,049 37,710 192,132 229,842 634,207 586,161 183,052 769,213 6,689 115,345 122,034 647,179 513,260 139,230 652,490 594,150 151,230 14,450 759,830 652,490 759,830 * The budget request for the Institute of Continuing Judicial Education has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. ~ F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETED APPROPRIATIONS 652,490 FUND CHANGES FOR: 1. Basic current services. TOTAL FUND CHANGES 107,340 TOTAL BUDGET REQUEST - F.Y. 1996 759,830 REQUESTED APPROPRIATION: The Institute of Continuing Judicial Education is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $759,830. JUDICIAL COUNCIL Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Council Operations Board of Court Reporting Case Counting Council of Magistrate Court Judges Council of Probate Court Judges Council of State Court Judges Council of Superior Court Clerks Resource Center Computerized Information Network Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Total Federal and Other Funds =til STATE FUNDS 1,205,772 95,617 76,500 23,700 45,226 11,954 240,000 659,955 2,358,724 113,153 186,785 299,938 2,058,786 1,762,667 122,216 76,500 25,139 43,511 10,793 32,222 250,000 659,352 2,982,400 442,827 115,083 557,910 2,424,490 F.Y. 1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS FINANCIAL SUMMARY F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS 1,262,686 70,756 76,500 26,700 20,000 12,000 33,800 300,000 1,323,960 75,183 76,500 28,302 21,200 37,500 33,800 325,000 1,802,442 1,921,445 1,802,442 1,921,445 * The budget request for the Judicial Council has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETEDAPPROPRlATlONS 1,802,442 FUND CHANGES FOR: I. Basic current services. TOTAL FUND CHANGES 119,003 TOTAL BUDGET REQUEST - F.Y. 1996 1,921,445 REQUESTED APPROPRlATlON: The Judicial Council is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $1,921,445. JUDICIAL QUALIFICATIONS COMMISSION FINANCIAL SUMMARY Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y. 1995 CURRENT BUDGET I AGENCY REQUESTS F.Y.1996 F.Y.1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Operating Expenses Total Expenditures/Appropriations STATE FUNDS 139,258 139,258 139,258 144,819 144,819 144,819 148,808 148,808 148,808 162,458 162,458 162,458 * The budget request for the Judicial Qualifications Commission has been included in the Governor's recommendation in estimating the total fmancial needs of the state for F.Y. 1996. F.Y. 1996 BUDGET SUMMARY - STATE FUNDS F.Y. 1995 BUDGETED APPROPRIATIONS FUND CHANGES FOR: 148,808 1. Basic current services. TOTAL FUND CHANGES 13,650 TOTAL BUDGET REQUEST - F. Y. 1996 162,458 REQUESTED APPROPRIAnON: The Judicial Qualifications Commission is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is requested: $162,458. GEORGIA OFFICE OF DISPUTE RESOLUTION FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS ** F.Y. 1995 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995** CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS * I I CONTINUATION IMPROVEMENTS TOTALS Operating Expenses Total Expenditures/Appropriations STATE FUNDS 252,430 252,430 252,430 * The budget request for the Georgia Office of Dispute Resolution has been included in the Governor's recommendation in estimating the total financial needs of the state for F. Y. 1996. F.Y. 1996 BUDGET SUMMARY - (FUNDED IN THE BUDGET UNIT FOR THE SUPREME COURT) F.Y. 1995 BUDGETED APPROPRIATIONS FUND CHANGES FOR: 1. Basic current services. Ul N TOTAL FUND CHANGES 252,430 TOTAL BUDGET REQUEST - F.Y. 1996 252,430 REQUESTED APPROPRIATION: The Georgia Office of Dispute Resolution is the budget unit for which the following State Fund Appropriation for F. Y. 1996 is requested: $252,430. ** Included in the budget unit for the Supreme Court (See Supreme Court) DEPARTMENT OF ADMINISTRATIVE SERVICES FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay D.P. Rents and Maintenance Grants to Counties Telephone Billings Radio Billings Ga. State Indemnification Comm. til Utilities, Federal toN Materials for Resale PaymentslDOAS Fiscal Admin. Health Planning Review Board Aviation Hall of Fame Payments to Building Authority Total Expenditures!Appropriations Less Federal and Other Funds Other Funds Total Federal and Other Funds STATE FUNDS POSrnONS MOTOR VEHICLES 45,746,543 13,201,811 254,641 846,393 6,198,194 3,819,743 14,597,736 10,840,825 2,353,258 79,190 9,885,464 48,054,183 627,605 44,097 21,312,796 2,750,000 6,707 180,619,186 46,055,260 15,017,374 318,428 657,021 9,055,787 3,049,484 10,684,524 15,764,215 4,293,118 88,581 10,877,950 738,675 68,035,357 1,744,261 150,000 67,613 27,581,652 2,750,000 11,568 707,000 217,647,868 148,274,125 148,274,125 32,345,061 1,058 310 183,452,316 183,452,316 34,195,552 935 333 43,759,305 21,235,065 280,459 174,200 1,968,391 2,929,021 4,287,065 17,158,273 1,415,182 11,305,000 52,950,576 760,712 250,000 46,500 21,000,000 2,750,000 35,000 800,000 183,104,749 44,840,218 13,159,194 419,082 566,500 1,729,382 3,054,100 2,540,890 16,862,149 2,815,869 11,737,750 56,559,700 896,550 650,000 22,000,000 2,750,000 35,000 58,500 180,674,884 146,964,485 146,964,485 36,140,264 935 333 143,152,443 143,152,443 37,522,441 935 333 107,963 23,662 200 4,735,371 9,000 253,480 300 817,000 5,946,976 44,516,043 12,890,358 386,582 251,500 1,665,882 3,054,100 2,344,890 16,747,649 2,815,869 11,737,750 56,559,700 896,550 250,000 22,000,000 2,750,000 35,000 178,901,873 17,282 17,282 5,929,694 4 142,038,684 142,038,684 36,863,189 935 333 63,643 22,906 200 18,550 9,000 249,480 565,000 928,779 44,579,686 12,913,264 386,782 251,500 1,684,432 3,063,100 2,344,890 16,997,129 2,815,869 11,737,750 56,559,700 896,550 250,000 22,000,000 2,750,000 35,000 565,000 179,830,652 928,779 3 142,038,684 142,038,684 37,791,968 938 333 DEPARTMENT OF ADMINISTRATIVE SERVICES F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 36,140,264 CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. (The Department requested an increase of $196,528 covering the above as well as tort liability premium increases and the cost of reducing personnel lapse.) 137,903 2. Increases state support for the operating costs of the UNlSYS computer system. 281,351 3. Provides for other continuation increases. (The Department requested increases of $445,798.) 303,671 TOTAL ADDITIONS 722,925 TOTAL STATE FUNDS - CONTINUATION 36,863,189 IMPROVEMENTS 1. Provides for 3 positions and related expenses to complete the development and implementation of the Statewide Purchasing Information Network (SPIN). This amount also includes the cost of training and converting state agencies to this system. 363,779 2. See Amended F.Y. 1995 General Obligation Debt Sinking Fund for $5,000,000 in bonds to replace UNlSYS mainframe computer used for law enforcement activities. See Amended F.Y. 1995 G.O. Bonds 3. Payments to the Georgia Building Authority for projects involving statewide replacement of state owned underground fuel storage tanks ($315,000), repairing and restoring Confederate cemetaries ($100,000), and restoration and preservation of the State Capitol building (150,000). (The Department requested $367,000, $200,000 and $250,000 for these projects respectively.) 565,000 TOTAL IMPROVEMENTS 928,779 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 37,791,968 54 DEPARTMENT OF ADMINISTRATIVE SERVICES Functional Budget Summary F.Y.1995APPROPRIATIONS F.Y.1996 RECOMMENDATIONS 1. Executive Administration TOTAL 1,437,648 STATE 619,823 TOTAL 1,481,693 STATE 616,907 2. Departmental Administration 2,871,076 2,746,241 2,697,256 2,568,744 3. Statewide Systems 11,025,460 8,275,460 12,662,838 9,912,838 4. Space Management 493,362 493,362 540,748 540,748 5. State Purchasing 2,856,088 2,856,088 2,936,732 2,936,732 6. General Services 534,080 544,784 7. Central Supply 17,435,092 18,520,398 8. Data Processing 54,242,035 13,766,925 43,645,443 14,048,279 9. Motor Vehicles 4,113,230 4,246,642 10. Telecommunication 73,737,518 5,850,000 77,683,116 5,850,000 11. Printing 7,007,090 7,052,761 12. Surplus Property 2,164,629 2,454,914 13. Mail and Courier 1,265,067 1,260,102 14. Risk Management 2,629,572 239,563 2,707,961 250,000 ATTACHED AGENCIES: 15. Properties Commission 470,332 470,332 463,716 463,716 16. Office of the Treasury 822,470 822,470 931,548 604,004 TOTAL APPROPRIATIONS 183,104,749 36,140,264 179,830,652 37,791,968 RECOMMENDED APPROPRIATION: The Department of Administrative Services is the budget unit for which the following State Fund Appropriation is recommended: $37,791,968. 55 DEPARTMENT OF ADMINISTRATIVE SERVICES Roles and Responsibilities The Department of Administrative Services (DOAS) provides a wide range ofsupport services to all state agencies and many interested local governments and their entities. DOAS receives most ofits revenues by charging for services as they are rendered. Of a budget totaling $183,104,749 in F. Y. 1995, state funds totaled only $36,140,264 (including $16,100,000 in indirect state funds) or 20 percent. The Department operates through the Executive Operations, General Services, Computer Services and Telecommunications Divisions, which provide support services to its many sections. DOAS SERVICES Services delivered by DOAS include: COMPUTER SERVICES--Designs, develops, programs, manages and maintains data processing systems for state agencies. Provides centrAized data processing services that include payroll, personnel, acl. "mting, budgeting, vehicle management and inventory services adaptable to all state agencies. SPACE MANAGEMENT-Assists agencies in the location of adequate and safe space in state-owned facilities or commercially leased space. Assists agencies in the design of space. Maintains a current computerized inventory of all stateowned buildings on Capitol Hill and state-occupied commercially leased space. STATE PURCHASING--Provides centralized purchasing services for state agencies. Develops and administers statewide contracts. Solicits bids and issues purchase orders for agencies. Monitors agencies in their own purchases. Develops and maintains state specifications and standards for purchasing. CENTRAL SUPPLY SERVICES--Purchases and warehouses commonly used, high-volume supplies and sells them to state agencies and local governments at a cost savings. MOTOR VEIDCLE SERVICES--Operates a daily vehicle rental program for state agencies in the Metro Atlanta area. Offers a comprehensive vehicle maintenance management plan on a cost per mile basis. Also developing a vehicle leasing program for state government. Provides full-service and self-service fuel and oil to state agencies in the Metro Atlanta area. COMMUNICATION SERVICES--Designs, implements and administers all telecommunication services used by state government, including cost effective telephone, data, video (including teleconferencing, distance learning and telemedicine), voice processing, paging and radio communications along with radio and telephone maintenance services. PRINTING SERVICES-Provides graphic arts, typesetting, reprographic and other printing services to all state agencies and other governmental organizations. Supplies technical assistance and coordinates the flow ofprinting requests to ensure the selection of the most economical vendor. SURPLUS PROPERTY--Responsible for acquiring property being surplused by state agencies and the federal government and making the property available to other state agencies and local governments equitably and cheaply. These services are provided through warehouses located in Atlanta, Americus and Swainsboro. RISK MANAGEMENT-Insures all state real and personal property through a self-insurance program that maintains adequate and economical coverage.. Assists state agencies and authorities in establishing safety programs and driver defensive programs designed to reduce accidents in their agencies. MAIL AND COURIER SERVICES--Provides timely delivery of inter-office mail to Capitol Hill agencies, and courier delivery to user agencies not located on Capitol Hill. Coordinates services within state government, as well as in the private sector, that will result in a savings for all participating agencies, such as the statewide presort contract which handled 11 million pieces of mail in F.Y. 1994 with a savings of over $300,000. ATTACHED AGENCIES The Office of Treasury and Fiscal Services manages, invests and disburses most state revenues. The Georgia Building Authority provides maintenance, groundkeeping, food service, parking and security for the employees and facilities within the Capitol Hill office complex and other specified areas. The Agency for Removal of Hazardous Materials operates through the Georgia Building Authority, and is responsible for managing the removal ofhazardous materials from state-owned buildings. The State Properties Commission coordinates the purchase, management, inventory records and disposition of real property acquired and owned by the state. The Health Planning Review Board conducts appeal hearings on decisions of the Health Planning Agency. The Georgia Net Authority provides centralized marketing, provision, sale, and leasing, or executing license agreements for access on line or in volume, of certain public information maintained in electronic format to the pUblic. DISTANCE LEARNING AND TELEMEDICINE UNIVERSAL FUND A statewide telecommunication network that utilizes audio and video systems to teach in Georgia's public schools, and to enhance and improve the delivery of medical care throughout the state. Both systems allow communication from a central point to a remote area. AUTHORITY Section 40-3548 Georgia Code Annotated. 56 DEPARTMENT OF ADMINISTRATIVE SERVICES Programs and Services The Department ofAdministrative SelVices has been broadening the uses of new technology to help state agencies improve selVices to the citizens of Georgia. These seIVice expansions include self-insured programs, state purchasing, a system ofinstant statewide computer contacts for law enforcement officers, fmancial management and reporting, and pro grams of information sharing and voice processing through telecommunications systems. RISK MANAGEMENT IMAGING SYSTEM The Risk Management Program administers several self-insured programs including the State Authority Liability Operational Fund, the State Self-Insured unemployment Fund, and the Tort Claims Liability Fund. The volume and the complexity of claims being ftled against all of the insurance programs has escalated. Workers' Compensation Fund claims have grown from 6,149 claims in F.Y. 84 to 9,830 claims in F.Y. 94. (See Chart) Risk Management receives 12,000 new insurance claims per year. These new claims, along with the 8,000 open claims, result in the receipt of over 300,000 pieces of mail per year. To cope with this volume of paper, Risk Management has implemented a computer-based image storage and retrieval system. STATE PURCHASING The State Purchasing Office is charged with the responsibility for the establishment of contracts, purchase orders, and other agreements for the procurement of supplies, materials, 57 equipment, selVices, and some construction. The State Purchasing Information Network (SPIN) Project is a statewide automation of the procurement function. PROGRAM: UNISYS 1100 COMPUTER SYSTEMS The Unisys 1100 computer systems is dedicated for the use of three state agencie: Georgia Bureau of Investigation, Department of Corrections and State Board of Pardons and Paroles. The following computer systems provide support to state and local government agencies: Law Enforcement Message Switching System. Criminal Justice Information System. Law Enforcement Data Systems. Computerized Criminal History. Motor Vehicle Extract. Pawn Shop System. Violent Criminal Apprehension Program. Offender Tracking Information System. Identification Subsystem. Inmate Subsystem. Probation Subsystem. Parole Subsystem. STATEWIDE SYSTEMS SERVICES The Statewide Systems SelVices Section was established to provide support to agencies in meeting their fmancial management and reporting responsibilities. This support includes on-going consulting selVices, training, and standardized fmancial software. Statewide System SelVices provides state agencies and technical schools computer systems including: accounts payable, accounts receivable, budget control, budget preparation, flxed assets, fleet management, general ledger, inventory management, labor distribution, and payroll. In 1992, a multi-year effort began to replace all of the existing fmancial computer systems and use modern techniques and teclmology to build a single, fully integrated fmancial system referred to as GIFS, the Georgia Integrated Financial System. Plans call for GIFS to meet all GAAP requirement; integrate all of the fmancial systems; eliminate duplication of data entry input and data storage; simplify fmancial processes; provide easier, faster access of information; standardize features and information; and utilize state-of-the-art teclmology. NEWLY ESTABLISHED ROUTER NETWORK DOAS Telecommunications Division has recently completed the installation of an open architecture networking capability on the Georgia On-Line "GO" network that it supports throughout the state. The goal of DOAS is to facilitate the distribution and management of information into each county in the state where appropriate. A platform will facilitate the sharing of information between various state agencies, county, city and local governments and the international community. Router based hub sites have been established in each of six district offices, the Archives Data Center, the Towers Computer Center, and the #2 Peachtree building. Connectivity is provided to the GO network, PeachNet and world wide Internet. Electronic Mail, Gopher (a menu based system for querying internet information), News Service and Name Service are also offered. NEWLY ESTABLISHED VOICE PROCESSING SERVICE In order to enhance employee productivity, reduce travel expenses and eliminate "telephone tag", the Telecommunications Division has established Statewide Voice Processing. These systems started out with over 1,700 mailboxes. They have grown to approximately 5,000 mailboxes since implementation. As of August 1994, the Voice Processing Systems statewide have approximately 9,500 personal Voice Mail Boxes and process an average of 60,565 calls per day. - 58 DEPARTMENT OF ADMINISTRATIVE SERVICES Total Budgeted Positions as of October 1, 1994 -- 922. Georgia Building Authority 611 Georgia Net Authority 7 Agency for Removal of Hazardous Materials 2 State Properties Commission 6 Health Planning Review Board o Office of Treasury 12 Commissioner 3 Attached for Administrative Purposes Only Distance Learning and ~ADMINISTRATOR-- Telemedicine Universal Fund 5 Computer Services r-- Division 376 - Designs and develops data processing and information processing programs and systems for State agencies - Processes data and provides output products to State agencies - Provides technical engineering assistance to agencies which have or plan to have minicomputers or microcomputers - Provides computer related training - Provides data processing support to local governmental entities including the State's court system - Develops and maintains the statewide computer systems for financial, personnel, vehicle management and property control Telecommunications - Division 256 Operates the Georgia Interactive Telecommunication Network for local and long distance telephone needs of State agencies - Provides telephone directory and information services - Provides technical consulting services to State agencies - Operates radio communication repair centers for State agencies - Plans and designs new telephone and radio communication systems - Supports Georgia On-line Network providing Data Network Services Statewide - Supports both traditional SMA/SDLC network applications and open architecture network I Executive Operations Division 99 - Insures all State real and personal property - Adjusts all claims under workers' compensation for State employees injured on the job - Provides safety education and training to State employees - Inspects State facilities for fire and hazard safety and adjusts property losses - Purchases and administers statewide insurance coverage for State-operated automobile liability, general liability and blanket bonds - Coordinates the development of budget requests - Provides accounting services to the Department and to Superior Courts of Georgia - Provides operations analysis services to the Department Coordinates the Department's purchasing - Coordinates interagency relations - Develops the Statewide Cost Allocation Plan and submits it to the U.S. Department of Health and Human Services - Provides personnel services to the Department - Provides organizational development services - Manages public relations and information services - Manages small and minority business program - Manages customer service operations - Provides legal assistance to the Department - Administers contracts - Provides legislative liaison services 59 I General Services Division 183 - Operates a Capitol Hill motor pool for State employees - Operates a motor vehicle maintenance facility in Atlanta for State agencies - Manages an interagency gasoLine billing system - Develops motor vehicle management pol icies - Provides motor vehicle contractual maintenance services - Provides printing services to State agencies - Provides interagency mail services to State agencies in the Atlanta metropolitan area - Provides 2 U.S. Post Office Sub-stations - Provides public relations and media support - Maintains an inventory of State agency occupied office space - Negotiates commercial office space leases for State agencies - Coordinates the development of specifications for the competitive bidding of construction and leasing of buildto-suit facilities for State agencies - Assigns State-owned office space - Processes purchase requisitions for State agencies by soliciting bids and issuing purchase orders - Authorizes State agencies to make certain purchases - Develops product specifications and standards - Develops statewide purchase contracts - Processes State agency lease, rental, maintenance and service contracts - Administers the Surplus Property Services by disposing of Stateand federally-owned surplus property - Purchases certain office and paper supplies in bulk for resale to State agencies and local government - Maintains a central supply warehouse AGENCY FOR REMOVAL OF HAZARDOUS MATERIALS Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Personal Services Regular Operating Expenses Travel Te1ecoIllIllurcications Total Expenditures/Appropriations STATE FUNDS POSITIONS MOTOR VEHICLES 81,334 10,300 7,800 400 99,834 99,834 2 1 86,278 10,800 8,000 400 105,478 105,478 2 1 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y.1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 92,559 10,800 8,000 400 111,759 111,759 2 1 95,527 10,800 8,000 400 114,727 114,727 2 1 95,527 10,800 8,000 400 114,727 114,727 2 1 95,527 10,800 8,000 400 114,727 114,727 2 1 RECOMMENDED APPROPRIATION: The Agency for Removal of Hazardous Materials is the budget unit for which the following State Fund Appropriation for F. Y. 1996 is recommended: $114,727. =~ DEPARTMENT OF AGRICULTURE Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Market Bulletin Postage Poultry Vet Diagnostics Labs Veterinarian Fees Indemnities Advertising Contract ....0\ Payments to Georgia Agrirama MajorlMinor Market Repairs Southern Cooperative Contract Georgia Development Authority Athens and Tifton Vet Labs Boll Weevil Eradication Program Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Governor's Emergency Fund Total Federal and Other Funds STATE FUNDS POSmONS MOTOR VEHICLES 28,751,554 4,089,766 818,387 367,524 367,1I2 741,580 907,573 352,038 324,565 18,446 885,000 1,769,941 301,359 95,610 177,500 632,817 362,599 39,200 2,386,487 43,389,058 3,439,321 4,253,952 30,000 7,723,273 35,665,785 888 287 29,097,520 4,265,892 937,930 385,833 537,071 779,457 1,103,261 337,241 400,838 860,000 2,044,297 303,287 85,978 175,000 651,546 699,912 90,000 2,470,000 60,000 45,285,063 3,532,176 4,141,881 221,234 7,895,291 37,389,772 888 287 31,024,092 4,153,363 896,000 446,460 391,082 791,341 957,050 359,078 402,901 860,000 2,130,411 412,000 127,000 175,000 618,360 700,000 40,000 250,000 2,515,782 47,249,920 3,223,505 4,074,422 7,297,927 39,951,993 888 287 32,250,562 4,716,549 1,034,397 1,152,212 790,260 814,475 1,024,200 599,111 430,745 1,015,000 2,593,605 412,000 127,000 200,000 881,000 3,390,000 40,000 250,000 2,783,180 54,504,296 3,293,692 4,239,285 7,532,977 46,971,319 888 287 367,779 581,067 31,500 83,144 89,320 23,906 12,400 20,896 680,000 5,415,235 1,000,000 6,131,191 31,004,490 4,459,274 937,397 510,460 391,082 814,475 1,024,200 554,6 II 430,745 915,000 2,436,105 412,000 127,000 175,000 618,360 40,000 2,603,834 14,436,438 47,454,033 3,293,692 4,239,285 14,436,438 10 8 7,532,977 39,921,056 888 287 169,155 14,867 2,000 72,751 160,000 31,173,645 4,474,141 939,397 583,2II 391,082 814,475 1,024,200 554,6II 430,745 915,000 2,596,105 412,000 127,000 175,000 618,360 40,000 2,603,834 418,773 47,872,806 3,293,692 4,239,285 418,773 7 7 7,532,977 40,339,829 895 294 DEPARTMENT OF AGRICULTURE F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS KY. 1995 State Appropriations 39,951,993 CONTINUATION REDUCTIONS 1. Provides for other continuation decreases. (The Department requested increases of $434,403.) (15,372) 2. Removal of funding for major/minor market repairs and the Georgia Development Authority. See General Obligation Debt Sinking Fund for $2,600,000 in bonds for major/minor market repair projects. (The Department requested $3,390,000 for major/minor market repairs and $250,000 for the Georgia Development Authority.) (950,000) TOTAL REDUCTIONS (965,372) CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. 363,125 2. Additional funds for the replacement of 30 vehicles in F.Y. 1996. (The Department requested the replacement of 90 vehicles.) 64,000 3. Provides for the replacement of 50 personal computers, maintenance on the remaining personal computers, and software upgrades/purchases as needed. (The Department requested the replacement of75 personal computers.) 58,564 4. Funds additional postage for the Market Bulletin. (The Department requested an increase of $155,000.) 55,000 5. Increases payments to the Poultry Veterinary Labs, and the Athens and Tifton Veterinary Labs. (The Department requested increases of $730,592.) 393,746 TOTAL ADDITIONS 934,435 NET CHANGES (30,937) TOTAL STATE FUNDS - CONTINUATION 39,921,056 IMPROVEMENTS 1. Provides for ELISA diagnostic testing equipment at 3 branch Poultry Diagnostic laboratories. (The Department requested ELISA equipment for 8 branch Poultry Diagnostic laboratories.) 45,000 62 DEPARTMENT OF AGRICULTURE GOVERNOR'S RECOMMENDATIONS 2. Construction of a replacement laboratory building for the branch Poultry Diagnostic laboratory at Dalton. 115,000 3. Funds an additional 7 structural pest control positions, 7 vehicles and other related expenses to implement a structural pest control random inspection program. 258,773 TOTAL IMPROVEMENTS 418,773 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 40,339,829 63 DEPARTMENT OF AGRICULTURE Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y.1996 RECOMMENDATIONS 1. Plant Industry TOTAL 7,609,766 STATE 6,978,766 TOTAL 8,051,904 STATE 7,420,904 2. Animal Industry 14,835,472 12,080,967 15,376,856 12,553,864 3. Marketing 7,150,118 7,075,053 6,542,442 6,467,442 4. Internal Administration 6,042,955 5,796,355 6,119,343 5,849,843 5. Fuel and Measures 3,055,849 3,055,849 3,274,818 3,270,118 6. Consumer Protection Field Forces 7,833,350 4,965,003 7,917,180 4,777,658 7. Seed Technology and Development 722,410 590,263 TOTAL APPROPRIATIONS 47,249,920 39,951,993 47,872,806 40,339,829 RECOMMENDED APPROPRIATION: The Department of Agriculture is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $40,339,829. 64 DEPARTMENT OF AGRICULTURE Roles and Responsibilities The Department ofAgriculture is responsible for enforcing laws and conducting programs safeguarding the quality of agricultural products and encouraging growth in the productivity and income ofthe state's agricultural industry. The Department's efforts in these areas are also designed to protect farmers and consumers purchasing and selling agricultural products. The Department's programs are operated jointly with the U.S. Department of Agriculture. PLANT INDUSTRY DIVISION Administers and enforces federal and state laws and regulations relating to fertilizers, feeds, grains, seeds, pesticides and pest control, nursery and plant certification, honeybees, treated timber, boll weevil eradication, and other related programs for environmental protection. Promotes Georgia's agricultural and horticultural interests, and inspects and tests sufficient quantities of each commodity to be sure that those commodities reaching the consumer meet minimum standards and are correctly labeled. Inspects and ensures that irrigation units are equipped with anti-syphon devices. ANIMAL INDUSTRY DIVISION Responsible for eradicating brucellosis, tuberculosis, pseudorabies, etc., in livestock. Promotes certification and accreditation of cattle herds, qualification and validation of swine herds and maintains strict surveillance programs to prevent reinfection through total testing at livestock markets, BRT programs, backtagging and slaughterhouse sampling. Assists livestock producers through disease surveillance programs and laboratory diagnostic work. Gathers and reports information on the poultry markets of Georgia. Provides livestock grading services and reports the livestock markets. Inspects, procures blood samples and runs card tests on all eligible animals sold through livestock markets and tests all disclosed reactor herds and all contact herds to eradicate and control communicable diseases. Enforces the Dead Animal Act, Poultry Carcass Regulations, Garbage Feeding Law, Prompt Pay of Auctioned Livestock Bill and both inter-state and intra-state movement regulations for livestock animals and fowl. Procures fertilizer, feed and lime samples for laboratory testing, and enforces the provisions of the Georgia Meat Inspection Act of 1969 to provide the consuming public with a meat supply which is wholesome, sound, free of disease, produced under sanitary conditions and bears a truthful label. MARKETING DIVISION Collects and distributes market information on Georgia agricultural products, formulate policies, administers various marketing programs and locates and develops new international markets for Georgia products. Provides supervision for the eight Georgia Agricultural Commodity Commissions. Furnishes funds for promoting farm products not represented by Commissions. Operates six regional (Atlanta, Augusta, Columbus, Macon, Savannah and Thomasville) and 17 seasonalllocal market places where dealers, farmers and consumers can engage in the marketing of fresh fruits and vegetables. FUEL AND MEASURES Ensures equity between buyers and sellers in commercial transactions by inspecting weighing and measuring devices to verify that they maintain the prescribed level of accuracy and regulating the quality of petroleum products. Enforces advertising laws regarding motor fuel. Conducts examination/inspections of state warehouse and grain dealer operations to insure compliance with applicable laws. Inspects and tests commercial weighing devices, including scales, L.P. gas meters, milk tanks, moisture meters, gasoline pumps, transport tank trucks, fuel oil terminals and bulk plants. Enforces fuel quality regulations by checking storage tanks for water and obtaining fuel samples for analysis. Registers and analyzes brands, and checks all motor fuel advertising for fairness and correctness. CONSUMER PROTECTION DIVISION Inspects retail food establishments (i.e.,grocery stores) for contamination and adulteration of retail food products. Reviews food labels on these products to ensure compliance with state and federal food labeling requirements including nutritional and safe handling requirements. Inspects bedding manufacturing establishments for disease and fraud. Operates a federal and state dairy inspection program on farms and processing plants operating in Georgia or shipping into Georgia, ensuring that all requirements are being maintained according to minimum federal and state standards. Provides information and statistics about milk and the dairy program to the industry and consumers. Provides a cooperative grading service for the voluntary grading of poultry and shell eggs, mandatory inspection of egg products, and regulatory surveillance inspection of shell egg handlers and records applicable to the program. SEED TECHNOLOGY AND DEVELOPMENT DIVISION Produces, processes, treats, stores and distributes to seed producers and farmers foundation agricultural seed stocks of 18 or more different crops comprising 60 to 65 different varieties and hybrids according to the requirements and needs for such seed stocks by Georgia farmers. AUTHORITY Title 5, 42-208, Georgia Code Annotated 65 DEPARTMENT OF AGRICULTURE Programs and Services The Department of Agriculture hosts a variety of programs and services in its regulation of agriculture and agriculture related industries, as well as in its education and protection of the public on agriculture and associated areas (ie. retail food stores, petroleum products, meat and poultry inspections, etc.). The following programs and services overviews illustrate only a portion of the diverse activities and responsibilities assigned to the Department. ANIMAL PROTECTION Animal protection and the Department's program devoted to it are relatively new. However, several changes occurred in 1989 when seven volunteer inspectors were reassigned to cover only establishments falling under the Animal Protection Act. These inspectors now receive training geared specifically toward understanding the intent of the Animal Protection Act. They also receive training in inspection techniques, types of establishments, diseases, euthanasia techniques and public relations skills. Another significant change due to increased growth occurred in July 1994 when Animal Protection became a section within Animal Industry Division, even to receiving and planning its own budget. Other initiatives have been implemented recently. In 1991, a prelicensing inspection became a requirement for anyone seeking a frrst-time license issued by the Department. Prior to 1991, persons desiring a license simply wrote to the Department and requested one. As a result, the initial inspection often came much later, if at all. Now all facilities must be inspected prior to issuance of a license in order to insure that the facilities meet the standards imposed by the Animal Protection Act. The Pet Advisory Committee was established in early 1994 to aid in informing the public of changes in regulations as well as to hear concerns of those in the pet industry. Currently, the Committee consists of representatives from the pet industry: dog and cat breeders, rescue groups, humane societies and veterinarians. The Committee meets every two months or as needed. Meetings are open to the public. This program also works closely with veterinarians in the control and eradication of contagious disease. The number of establishments to inspect and license keeps growing. In 1990 there were approximately 2,000 facilities licensed to operate. So far in 1994 there are 2,798. On average, two prelicense inspection requests come into the office per day. Inspectors performed 3,439 inspections last year alone. They also handle approximately 200 complaints per year. The Animal Protection Act serves the general public by ensuring that only healthy pets enter the marketplace. Those persons in the pet industry, i.e. pet dealers/brokers, breeders, animal shelter and kennel operators are aided by the Act in that certain standards are maintained, thus reducing harm to the industry as a whole by eliminating substandard operations. And fmally, the animals themselves are protected from harm arising from negligence or ignorance of the law. The long-range goal of the program is to continue to serve the needs of the public by ensuring that only healthy animals enter the pet marketplace. In addition, the program would like to see more frequent inspections of facilities and more facilities licensed. Animal Protection Inspectors currently enforce the federal Drug Enforcement Agency (DEA) laws regarding euthanasia drugs kept at animal shelters. Inspectors also check federal health certificates and rabies inoculation records as necessary. HUMAN CARE OF EQUINE The Human Care for Equine Act was enacted into law in 1992. This Act provides for the investigation, impoundment, care and disposal of equine that: Owners have failed to provide adequate food or water for such equine. Provide humane care for such equine. To urmecessarily overload, overdrive, torment or beat any equine or to cause the death of any equine in a cruel or inhumane manner. This program operates tlrrough services donated by professional veterinarians and funds from volunteer organizations. Routine daily care is provided by volunteers and by some equine inspectors of the Georgia Department of Agriculture donating their time and expertise in this endeavor. Two facilities for housing impounded equine were acquired at minimal cost by the Georgia Department of Agriculture. Procedures were established for the return or disposal of the impounded equine. The long-range goal of this program is to make horse owners in Georgia aware ofthis law and to eventually educate horse owners and potential horse owners on the proper care and treatment of equine. HONEY BEE INSPECTION PROGRAM The state faces within the next year or two the movement of Africanized Honey Bees into Georgia as they move eastward from Mexico tlrrough Texas and other states. Their presence will require changes in beekeeping and extensive education of the beekeepers and the public. Georgia is number tlrree nationally in terms of commercial production of honey bees making inspection and education efforts essential in limiting Africanized Honey Bee infiltration if the state is to maintain its position in this industry. STRUCTURAL PEST CONTROL PROGRAM The Structural Pest Control program performs inspections of dwellings and facilities as requested for wood destroying 66 organisms. The program hopes to be able to expand its staff in the future and perfonn random inspections of treated dwellings on a regular basis in addition to the requested inspections conducted. The increased personnel would provide for more timely inspections and eliminate inspection request backlogs. AGRICULTURE PRODUCT PROMOTION (DOMESTIC AND INTERNATIONAL) Domestic This program promotes Georgia agriculture products in the domestic market through several means, including: Expanded usage of the marketing program, "Georgia... .Always in Good Taste". Expanding promotional efforts through increased use of public service announcements, promotional brochures and point-of-purchase printing. Participating with large retail outlets to identify Georgia grown and processed items. The program also plans to expand the use of "Georgia...Always in Good Taste" logo on specialty and gourmet products through upscale retail outlets; exploring opportunities of featuring this logo for Georgia products on menus in restaurants; encouraging producers and packers to include the logo on boxes and packages and retailers on price cards and advertising circulars. The program's domestic promotions are enhanced through the efforts of Area Marketing Coordinators and the Department's nutritionists and home economists. International The program promotes international trade and expanded export of Georgia products through working with Georgia companies on food shows and broadening the usage of the "Georgia...Always in Good Taste" logo. The program is having letterheads created with the logo in seven languages, and incorporating the 10go in its International Trade Update newsletter, its stationery, and posters for shows and seminars. The program is also actively encouraging Georgia manufacturers to include the logo in their packaging, and is participating in trade shows by recruiting Georgia companies to exhibit at these shows under the "Georgia...Always in Good Taste" theme. The program also plans to showcase a number of Georgia companies selling Georgia products by exhibiting in selected food and beverage trade shows. FOOD INSPECTION (FOOD STORE INSPECTIONIMEAT INSPECTION) Food Store Inspection The Consumer Prot<:ction Division has been working with sanitarians statewide to achieve uniformity of food store inspection and report fmdings. This program has increased training in the inspection and checking of scanners used in food stores. It has also increased water sampling in fmns licensed by consumer protection Field Forces and increased inspection and sampling of all processing plants. The industry is rapidly changing and these programs must change as new technology develops. The Consumer Protection Division is currently rewriting and updating rules and regulations for food stores and other regulated fmns. All citizens of the state are served by inspections of food fmns and regulatory action taken on problem fmns. The Division's long range goal is to have professional employees doing professional quality inspection work in all areas of food processing, distribution and at the retail food store level. Retail food store inspections encompass meat processing in the store, seafood operations, bakers, deli operations, produce operations, general sanitation and review of all in-house or store applied labeling for compliance with accepted standards and requirements such as the NLEA labeling requirements which were passed by Congress and signed by the President to provide consistent, infonnative nutritional labeling infonnation for all consumers. Meat Inspection The Meat Inspection program currently licenses 162 red meat facilities and provides inspection services to assure the production of wholesome, unadulterated, and properly labeled meat/poultry products. Licensed establishments include 23 custom-exempt plants which may slaughter/process custom meat not allowed for public sales, 90 state plants which slaughter/process meat products for sale within the State of Georgia, and 49 Federal-State Cooperative Inspection Program (FSClP) plants which slaughter and process meat/poultry products for national sale or export. The Federal-State Cooperative Inspection Program, initiated in October of 1993, transferred the administrative responsibilities and the regulatory management of all federal Tahnadge/Aiken CTA) facilities to an appointed State Program Coordinator. The new program also required the state to provide a federally certified training officer and to offer an "equal or federal" training program for inspection personnel and practicing veterinarians participating in state contracts. The USDA Food Safety and Inspection Service (FSIS) Area Supervisor oversees the new program and the FSIS Regional Director renews the agreement annually, provided the state adheres to an "equal to federal" program. Inspection personnel assist other regulatory programs by collecting blood from eligible livestock at slaughter for the brucellosis and pseudorabies eradication programs, and performing implant testing and tissue collections for detection of illegal antibiotic residues. Due to the increased responsibilities assumed in the FSClP program and the conversion of federal regulations to the computer, FSIS has requested that all state directors be on-line with the FSIS HP Desk computer system. This technology allows immediate communication with federal counterparts and the immediate receipt of Federal Register issuances and regulation revisions. The federal monies for this new initiative have been approved and the state monies have been requested. FSIS has recently focused upon the reduction of pathogens in meat/poultry products and intends to devise several new programs surrounding this food safety issue. In an effort to move towards a more science-based inspection system, FSIS recently mandated state programs to expand their scientific testing capabilities to afford microbiological testing for 67 Listeria and Salmonella spp. The presence of these bacteria in ready-to-eat meat/poultry products are indicators of environmental and/or gastrointestinal contamination that would require corrective actions. The Georgia microbiological testing program will become effective in January of 1995. Other future FSIS programs include the Hazard Analysis Critical Control Points (HACCP) program. The HACCP program will be incorporated into the current Performance Based Inspection System (pElS) currently utilized by FSIS. When HACCP is mandated to the state programs, it will become necessary for the state to incorporate the PBIS computer system into its regulatory management program. It is anticipated that this new program will become effective sometime in the year 1996. The state meat inspection program must maintain an "equal to federal" program in order to receive 50 percent of this total funding from FSIS. The meat inspection program serves the meat and poultry processing industry as well as the general consuming public by assuring that only safe, wholesome products are offered for sale that are truthfully labeled. The long-range goal of the state program is to provide identical inspection coverage and standards as that afforded to federally inspected establishments and to effectively cross-utilize resources whenever possible. FUEL AND MEASURES The accuracy of all commercial weighing and measuring devices and the quality of petroleum products are regulated by the Fuel and Measures Division of the Georgia Department of Agriculture. To keep pace with complex technical advances in commercial measuring devices (scales, meters, petroleum pumps, etc.) the Division has expanded employee training and upgraded equipment. Field inspections of heavy scales require significant on-site testing weights and two of the Division's the Division's four test trucks have recently been upgraded to comply with January 1, 1994 U.S. Department of Commerce mandated standards. International weight and measure requirements under the ISO- 9000 program have generated unprecedented testing and calibration demands by Georgia manufacturers and industry upon the Weights and Measures Laboratory, which is the only accredited metrology facility in Georgia. The comprehensive weights and measures inspection program ensures equity between buyer and seller at the grocery stores, grain elevators, livestock salebarns, propane dealers and all other sales transactions based on weight or volume. The Fuel Oil field and laboratory programs ensure measurement accuracy and product quality, thereby protecting the Georgia motorists and the petroleum wholesalers and retailers. The program's long-range goals are to maintain field and lab testing standards while increasing productivity through the acquisition of modern automated equipment for both the field inspectors and laboratory technicians. - 68 DEPARTMENT OF AGRICULTURE Total Budgeted Positions as of October 1, 1994 -- 878. Corrrnissioner Georgia Seed Technology and Development Commission 10 Georgia Agrirama Development Authority 25 Georgia Development Authority 8 Attached for Administrative Purposes Only Agriculture Corrrnodity - Corrrnissions Peaches-Sweet Potatoes- Tobacco-Apples-Cotton- Soybeans-Milk-Eggs I Division of Plant Industry 187 - Administers and enforces plant food, feed, grain, pesticides and seed laws - Issues plant food, fertilizer and feed licenses - Produces foundation seeds - Performs laboratory tests for fertilizers, feeds, pesticides, pesticide residues, meat, dairy and food products, seeds and grains - Licenses structural pest control operators - Surveys and treats agricultural land, plants and bees I Division of Internal Administration 65 - Provides support services - Prepares the Department's budget and monitors expenditures - Performs accounting functions - Maintains a data processing system - Conducts procurement functions - Manages departmental vehicles - Publishes Farmers and Consumers Market Bulletin - Handles consumer complaints I Division of Animal Industry 247 - Controls all veterinary and related activities - Conducts animal disease program - Operates laboratory faci l ities - Tests milk quality - Provides poultry and livestock news - Grades livestock - Enforces laws and regu- lations covering the movement of animals, the Prompt Pay Bill, the Dead Animal Act, the Poultry Carcass Regulation Act, the No Garbage Feeding Law and other laws - Conducts Equine Program - Conducts statewide meat inspection program I Division of Fuel and Measures 81 - Inspects and licenses industrial scales - Operates a weights and measures laboratory - Inspects and licenses grain moisture meters - Inspects LP gas truck meters - Calibrates milk tanks - Inspects the quality and measurement of fuel oil - Licenses tobacco producers and assists in marketing schedules - Licenses and audits grain dealers 69 I Division of Marketing 130 - Operates the Atlanta Farmers Market - Operates regional and seasonal farmers markets - Assists in locating, sustaining or expanding foreign markets - Supervises the eight agricultural corrrnodity corrrnissions - Operates international trade office in Brussels I Division of Consumer Protection 168 - Regulates food retail and wholesale stores and food processors - Administers grade A milk laws and rates milk qual i ty DEPARTMENT OF BANKING AND FINANCE FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Total Expenditures/Appropriations 5,907,165 262,420 283,794 86,590 17,103 224,817 4,500 245,830 42,887 7,075,106 6,426,117 336,083 337,026 143,879 86,368 279,555 5,039 356,490 54,456 8,025,013 6,982,155 384,985 392,080 104,080 26,730 302,436 10,000 341,668 70,832 8,614,966 7,450,644 520,232 426,188 73,280 8,975 335,739 24,500 325,874 72,495 9,237,927 7,181,625 487,701 413,951 73,280 8,975 335,739 16,500 307,974 72,495 8,898,240 7,181,625 487,701 413,951 73,280 8,975 335,739 16,500 307,974 72,495 8,898,240 STATE FUNDS POSmONS MOTOR VEHICLES -.J <::> 7,075,106 125 44 8,025,013 136 50 8,614,966 141 55 9,237,927 141 55 8,898,240 141 55 8,898,240 141 55 RECOMMENDED APPROPRIATION: The Department of Banking and Finance is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $8,898,240. This recommendation is contingent upon the Department's collection of $9,788,000 in examination and administrative fees, which is included in the F.Y. 1996 State Revenue Estimate. The difference between the Department of Banking and Finance's F.Y. 1996 revenue collections and the recommended F.Y. 1996 State Fund Appropriation represents overhead and is intended to cover the cost of support provided by other state agencies to the Department of Banking and Finance. DEPARTMENT OF BANKING AND FINANCE F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 8,614,966 CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995 and provide other personal services increases. (The Department requested $468,489.) 199,470 2. Provide for all other continuation expenses related to the ongoing supervision and regulation of statewide financial institutions. (The Department requested $154,472.) 83,804 TOTAL ADDITIONS 283,274 NET CHANGES 283,274 TOTAL STATE FUNDS - CONTINUATION 8,898,240 RECOMMENDED APPROPRIATION: The Department of Banking and Finance is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $8,898,240. 71 DEPARTMENT OF BANKING AND FINANCE Roles and Responsibilities The Department of Banking and Finance enforces and administers all state laws, rules and regulations governing the operation ofstate-chartered financial institutions in Georgia. The Department provides for: The safe and sound operation offmancial institutions. Public confidence in our fmancial institutions. Protection for the interests of the depositors, creditors and shareholders offmancial institutions. Service by fmancial institutions responsive to the convenience and needs of the public. Appropriate competition among all fmancial institutions to promote economic growth. The Department ofBanking and Finance is 100 percent state funded. However, the Department's budget is equal to the estimate of examination and administrative fees collected by the Department and deposited into the State Treasury. As of July 1, 1994, the Department was authorized 141 positions in three program divisions and the Commissioner's Office. The three program divisions include the Supervision Program, the Mortgage/Corporate Program and the Administrative Program. To accomplish its objectives, the Department has two principal functions: Supervise and regulate financial institutions. Conduct examinations as required by law. SUPERVISION AND REGULATION The Department has the authority to adopt rules and regulations regarding the operation of financial institutions to: Allow state-chartered financial institutions to compete fairly with those chartered by the federal government, other states, or foreign governments. Protect Georgia fmancial institutions threatened by economic conditions or new technological developments. The Department of Banking and Finance is responsible for regulating and monitoring the condition of 330 state-chartered banks, 99 credit unions, 215 Georgia holding companies, 28 regional holding companies, 26 international bank agencies and other regulated companies, and 250 check sale and check cashing companies. As a result ofthe Georgia Residential Mortgage Act, Chapter 7-1, Article 13, passed during the 1993 legislative session, the Department also regulates mortgage lenders and mortgage brokers required to be registered under the new law. The Department has received 1,200 licensing applications since it began issuing licenses on July 1, 1993. The Department also conducts investigations and resolves consumer complaints regarding residential mortgage lending. FINANCIAL EXAMINATIONS The Department is responsible for examining all fmancial institutions--except mortgage lenderslbrokers--under its regulation at least once each year. Mortgage lenderslbrokers are to be examined at least once every 24 months. Ifnecessary, the Department may require extra reports and conduct additional examinations to obtain essential information. The Department is authorized to issue and enforce orders requiring financial institutions to correct unacceptable conditions discovered through financial examinations. During F. Y. 1994, the Department conducted 536 examinations, including 197 banks, 93 credit unions, 153 mortgage broker/lenders, and 93 others. OTHER RESPONSffiILITIES Other responsibilities of the Department include approval of all proposals to incorporate as a state-chartered financial institution, approval of all attempts to change existing articles of incorporation, and approval of all mergers and consolidations of financial institutions. Also, the Department investigates possible violations of state interest and usury laws. In consultation with the Attorney General, it may issue advisory opinions for the guidance offinancial institutions. AUTHORITY Title 7 of the Official Code of Georgia Annotated. 72 DEPARTMENT OF BANKING AND FINANCE Program Information F.Y.1993 ACfUAL F.Y.1994 ACfUAL F.Y.1995 BUDGETED 1. Bank examinations 202 197 249 2. Credit union examinations 113 93 100 3. International agency examinations 10 8 9 4. Trust examinations 11 14 9 5. EDP examinations 31 25 53 6. Bank holding company examinations 17 17 48 7. Check-cashing institution examinations 29 70 8. Mortgage broker/lender examinations 153 300 F.Y.1996 RECOMMENDATIONS 283 97 9 10 30 18 70 250 Total Examinations 384 536 838 767 Total Examinations FY 1993 - FY 1996 300 400 500 600 700 800 900 73 DEPARTMENT OF BANKING AND FINANCE Total Budgeted Positions as of October 1, 1994 -- 141. Administrative Assistant COllIDissioner Deputy COllIDissioner Executive Deputy COllIDissioner Deputy COllIDissioner for Legal Affairs - Reviews examination reports and follows up with corrective action where indicated - Performs examinations of financial institutions - Investigates applications for new charters and expansions - Promotes sound financial practices and encourages institu- tions to provide a full line of services to the public - Coordinates and resolves con- sumer complaints Mortgage/Corporate Program 15 CORPORATE: - Processes and acts on applications from financial institutions for new charters, expansions and relo- cations Processes and acts on appli- cations to engage in the business of cashing checks Processes and acts on re- quests for permission to sell checks Processes and acts on appli- cations for amendments to articles of incorporation and name reservations Processes additions and changes to corporate data fi les Processes revisions to Department rules and regu- lations Processes requests to issue authorized but unissued stock Reviews check cashers and check sales examination reports and follows up with corrective action where indicated MORTGAGE: - Enforces laws and regu- lations pertaining to residential mortgage lending Processes and acts on applications for license to provide residental mortgage lending and residential mortgage broker services Performs compliance examinations of mortgage lenders and mortgage brokers Conducts investigations and resoLves consumer compLaints pertaining to residential mortgage lending Program 13 - Performs accounting services for the Department - Prepares the Department's budget request - Provides clerical support for the Supervision and Corporate Sections - Processes and distributes currency transaction report information to authorized law enforcement agencies both State and Federal - Provides personnel services for the Department - Provides examiner training for the Supervision Section - Provides prograllIDing and maintenance of EDP services for the Department 74 DEPARTMENT OF CHILDREN AND YOUTH SERVICES RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1996 $124,891,065 INCREASE OVERF.Y. 1995 BUDGET $35,336,197 CONTINUATION FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $95,517,106 IMPROVEMENT FUNDS $29,373,959 HIGHLIGHTS $2,537,992 for specialized placement. An additional 35 slots per year will be available for placement of youth so seriously disturbed they are unable to function in traditional alternatives. $2,700,000 for contracted medical care. This amount will provide full-time nursing services, medical tests and immunizations for youth in each of 20 Regional Youth Detention Centers (RYDCs) throughout the state. $1,953,000 to add 101 youth development worker positions in RYDCs. An additional worker can be added per shift at each RYDC to provide 24-hour, 7day per week coverage. $600,000 to fund Phase II of the state assumption of intake and probation services in Bibb, Richmond and Muscogee Counties begun in F. Y 1995. $300,000 to provide state funds to supplant declining Whitehead Foundation grant funds for Transitional Aftercare Group (TAG) programs and multi-service centers in Fulton, DeKalb and Chatham Counties. $328,172 to add 18 food service workers in RYDCs. Each of the R YDCs which prepare meals in-house will be able to add one worker to help prepare three meals per day, seven days per week. The following items were initiated in the current year to alleviate overcrowding in the RYDCs. - $10,355,225 for a contract with Irwin County to operate a facility for youth. Youth in this facility are sentenced for up to 90 days pursuant to the School Safety and Juvenile Justice Reform Act of 1994. The facility will house 316 youth. - $4,238,925 and 130 positions to provide additional beds in state institutions and administration for youth sentenced for up to 90 days. The Milledgeville Youth Development Campus (YDC) will house 120, Augusta YDC 36, and Lorenzo Benn 12 of these youth. - $2,165,705 for a contract with the Department of Corrections (DOC) for use of their Davisboro facility to house 100 youth. The DOC will staff and operate the facility for youth who are committed to the Department and recommended for a YDC placement. - $941,500 and 29 positions to provide 60 additional bed spaces for youth at the Milledgeville YDC. - $884,030 to provide bed spaces for youth tried in Superior Court as adults. Funds will be used to contract with local jails which have identified space. - $96,409 and 4 positions to provide a full-time nurse and additional youth development workers for the Marietta RYDC. - $114,249 and 3 positions to ensure that each of 20 R YDCs have a full-time Special Education Teacher. - $2,072,752 to contract with the EXCEL program operated by Inner Harbour. The program is an alternative to YDC placement. It will serve 132 youth in RECOMMENDED APPROPRIATIONS AS A PERCENTAGE OF THE BUDGET 1.16% a 17-week program. - $128,000 to provide an increase in the percent of cost paid institutional providers from 50 to 55 percent. Funds to provide a 6 percent payraise to positions in the youth development worker class in R YDCs and YDCs. See Governor's recommended salary adjustments section for F. Y 1996. 75 DEPARTMENT OF CHILDREN AND YOUTH SERVICES FINANCIAL SUMMARY Budget ClasseslFund Sources I PRlORYEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y.1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S ~COMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Utilities Institutional Repair and Maintenance Service Benefits for Children .....a Purchase of Service Contracts C\ County-0Mled Detention Centers Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds Governor's Emergency Funds Total Federal and Other Funds STATE FUNDS POSmONS MOTOR VEHICLES 57,868,962 4,426,594 743,776 209,281 373,722 1,024,988 1,714,937 175,152 662,025 144,000 1,949,718 342,001 8,397,218 182,311 2,265,400 80,480,085 105,579 2,720,418 2,825,997 77,654,088 1,999 176 59,760,073 4,881,881 850,369 305,121 829,341 1,651,023 2,399,711 1,086,236 765,652 1,040,000 2,097,738 1,235,052 10,249,811 832,004 2,686,400 90,670,412 1,632,983 4,418,359 12,071 6,063,413 84,606,999 1,943 180 63,362,365 4,511,435 768,438 234,700 322,695 1,540,689 2,703,000 272,100 742,400 28,000 2,027,600 547,600 13,344,313 308,000 2,686,400 93,399,735 65,306,408 6,339,918 1,029,900 811,223 1,216,017 1,803,347 3,131,610 244,600 975,538 2,180,379 591,408 17,150,420 308,000 2,686,400 103,775,168 15,365,749 3,218,731 313,772 56,000 113,488 565,100 3,720,091 888,640 101,322 12,989,612 3,688,371 15,922,078 56,942,954 64,115,620 5,294,531 891,150 296,100 344,045 1,657,964 2,739,781 244,600 825,346 2,162,050 591,501 16,533,582 308,000 3,496,711 99,500,981 7,312,669 638,683 6,000 4,952 2,000 16,425,300 4,833 10,274 58,504 4,610,744 29,073,959 71,428,289 5,933,214 897,150 296,100 348,997 1,659,964 19,165,081 249,433 835,620 2,220,554 591,501 4,610,744 16,533,582 308,000 3,496,711 128,574,940 3,844,867 3,721,146 3,844,867 89,554,868 1,989 177 3,721,146 100,054,022 1,989 177 (300,000) (300,000) 57,242,954 510 4 3,983,875 3,983,875 95,517,106 1,989 177 (300,000) 3,683,875 (300,000) 29,373,959 286 3,683,875 124,891,065 2,275 177 DEPARTMENT OF CHILDREN AND YOUTH SERVICES F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 89,554,868 CONTINUATION REDUCTIONS 1. Adjust for one time expenditures for Capital Outlay, Institutional Repairs and Maintenance and Computer Objects. (11,599) TOTAL REDUCTIONS (11,599) CONTINUATION ADDITIONS 1. Annualize contracts for the Blakely Wilderness program, a bootcamp and 2 additional wilderness programs authorized in F.Y. 1995. (The Department requested $3,237,154 to cover inflationary increases and provide an increase for 3,126,269 2. Provide for increased regular operating expenses for food, supplies and clothing due to increased population. (The Department requested $1,828,483.) 783,096 3. Increase personal services to provide for Fair Labor Standards Act mandate for overtime and to annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. 753,255 4. Provide for per diem rate and population increases in contract with Fulton County Detention Center. 810,311 5. Increase percent of cost paid to Institutional Foster Care providers from 50 to 55 percent. (The Department requested a 10 percent increase in institutional rates and an increase of $3.00 per day for family providers - $896,496.) 128,000 6. Provide for all other continuation increases including replacement of 16 vehicles. 372,906 TOTAL ADDITIONS NET CHANGES TOTAL STATE FUNDS - CONTINUATION IMPROVEMENTS 1. Contract for medical care services to include full-time nursing staff and physician services with 24-hour coverage. Medical tests, immunizations, laboratory and other medical services are included. (The Department requested 20 positions and funds for tests and immunizations for $2,933,777.) 5,973,837 5,962,238 95,517,106 2,700,000 77 DEPARTMENT OF CHILDREN AND YOUTH SERVICES GOVERNOR'S RECOMMENDATIONS 2. Add 101 youth development worker positions and 18 food service positions in Regional Youth Detention Centers (RYDCs). (The Department requested $3,612,671 for 18 food service and 155 youth development worker positions.) 2,281,172 3. Contract with Irwin County to operate a 316 bed facility for youth sentenced for up to 90 days by the Juvenile Court. 10,355,225 4. Add 130 positions and operating costs at Youth Development Centers (YDCs) to provide 168 beds for youth who have been sentenced for up to 90 days by the Juvenile Court. The beds will be located at the Milledgeville YDC (120), the Augusta YDC (36), and the Lorenzo Benn YDC (12). (The Department requested 145 positions and $4,485,254.) 4,238,925 5. Contract with the Department of Corrections (DOC) to operate their 100 bed Davisboro facility for youth recommended for YDC placements. (The Department requested $2,314,000.) 2,165,705 6. Add 29 positions and operating costs at the Milledgeville YDC to address growth in population. (The Department requested $952,567.) 941,500 7. Contract with Inner Harbor for 132 spaces in the EXCEL program, a 17-week alternative program. 2,072,752 8. Provide 35 additional slots per year for specialized placement for troubled youth. (The Department requested $5,108,750 for 50 slots.) 2,537,992 9. Fund Phase II of the state assumption of intake and probation services in Bibb, Richmond, and Muscogee Counties. (The Department requested $2,222,938, 54 positions and state assumption for 4 additional counties.) 600,000 10. Replace declining Woodruff Foundation funds for Transitional Aftercare Group (TAG) programs at multi-service centers in Fulton, DeKalb and Chatham County. (The Department requested the fund replacement as well as 28 positions to establish additional centers in 4 more counties for $1,669,688.) 300,000 11. Provide bed space for youth sentenced in Superior Court. Funds are for contracts with local jails. (The Department requested $5,045,030.) 884,030 12. Add 4 positions to provide a full-time nurse and additional youth development workers at the Marietta RYDC. 96,409 13. Add 3 positions at various RYDCs to ensure one full-time Special Education teacher at each facility. 114,249 14. Provide expenses associated with hearings held to transfer aggressive youth to the DOC's Eastman facility. 48,000 78 DEPARTMENT OF CHILDREN AND YOUTH SERVICES GOVERNOR'S RECOMMENDATIONS 15. Add 1 contract administration position and operating costs to meet the growing administrative needs of the Department in this area. (The Department requested 26 positions and $1,152,941.) 38,000 16. Fund the following capital outlay projects: See G.O. Bonds a. Construct two 150-bed YDCs and a 100-bed RYDC for Superior Court youth. b. Construct a multi-purpose building at the Athens RYDC. c. Construct a classroom/recreation room at the Gwinnett RYDC. d. Conduct minor construction and maintenance projects at various facilities. TOTAL IMPROVEMENTS 29,373,959 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 124,891,065 79 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Functional Budget Summary F.Y. 1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 1. Regional and Youth Development Centers TOTAL 22,296,722 STATE 21,044,903 TOTAL 29,389,532 STATE 28,357,532 2. Milledgeville State YDC 3. Augusta State YDC 8,050,557 8,241,771 7,701,969 7,585,491 25,251,580 9,075,409 24,707,680 8,517,740 4. Lorenzo Benn State YDC 4,682,742 4,373,823 5,257,414 5,009,916 5. Macon State YDC 5,018,614 4,690,400 5,235,784 4,970,003 6. Court Services 14,791,181 15,937,033 15,635,469 15,488,665 7. Community Treatment Centers 2,323,798 2,979,860 2,336,715 2,336,715 8. Day Centers 414,977 901,314 448,026 448,026 9. Group Homes 10. Purchased Services 11. Runaway InvestigationlInterstate Compact 12. Assessment and Classification 13. Youth Services Administration 14. Multi-Service Centers 932,651 15,321,121 980,826 604,159 5,966,970 3,773,646 964,130 14,332,820 895,497 671,091 7,356,537 120,000 995,879 23,07i,210 1,013,902 610,356 6,524,942 3,728,722 995,879 22,270,987 1,013,902 610,356 6,524,942 3,638,722 TOTAL APPROPRIATIONS 93,399,735 89,554,868 128,574,940 124,891,065 RECOMMENDED APPROPRIATION: The Department of Children and Youth Services is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $124,891,065. 80 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Roles and Responsibilities The Department of Children and Youth Services (DCYS) provides supervision, detention and rehabilitation services for juvenile delinquents committed to state custody, operates and provides assistance for prevention programs, and provides treatment for juvenile offenders with specialized needs. Organizationally, the operations of the Department are carried out by three divisions and three offices. INSTITUTIONS The Division of Detention Services is responsible for the temporary secure care and supervision of youth charged with offenses and awaiting court proceedings or found guilty of offenses and awaiting court disposition or placement by the Department. The Department currently operates 20 Regional Youth Detention Centers (RYDCs) statewide, with a bed capacity of 669. In addition to temporary secure detention, these centers provide education, individual guidance, counseling and recreation. Each center is required to have weekly religious services for youth desiring them. Clothing, meals, medical and emergency dental services are a part of each center's basic care program. These RYDCs handled 17,546 admissions during F. Y. 1994. The Division of Campus Operations is responsible for the management of the four State Youth Development Campuses (YDCs). The campuses, which are secure institutions located in Atlanta, Augusta, Macon and Milledgeville, house serious juvenile offenders and adjudicated youth sentenced up to 90 days in a YDC by a juvenile court judge. Macon serves males and females, and the rest are all male facilities. The campuses provide academic and vocational programs, medical services, individual and group counseling and religious services. All four campuses have school programs accredited by the Georgia Accrediting Commission. InF.Y. 1994,1,003 youth were admitted to the four YDCs. Each of the four campuses serves a somewhat different population: Lorenzo Benn has a capacity of 136, of which 12 are reserved for adjudicated youth sentenced to up to 90 days in a YDC. The campus serves males who have been assessed as having medium to high public risk ratings. Augusta serves males who have been assessed as having medium to high public risk ratings and youth who have significant prior histories ofdelinquency or previous YDC placements. The capacity of this campus is 280 of which 36 are reserved for 90day youth. Macon has a capacity of 136 and serves both males and females (96 beds for regular placements and 40 for 90- day youth). These youth have been assessed as having medium to high public risk. Milledgeville has a current capacity of 305 beds, with 185 being for regular admissions and 120 for 90-day youth. This campus serves those youth who have been assessed as having high public risk ratings, a history of aggressive behavior or escapes, and/or youth with medical needs. COMMUNITY PROGRAMS The Division of Community Programs is responsible for the management of community-based services, which include residential and non-residential treatment programs. Residential programs include group homes, attention and contract homes, specialized residential services, wilderness programs, short-tenn treatment programs and Project Challenge. Non-residential programs include in-home supervision (which includes electronic monitoring), community schools, community treatment centers, multi-service centers, intensive supervision, aftercare and general court services. In 124 counties, departmental staff also provide intake and probation services for the juvenile court, and in 21 counties these functions are shared between DCYS and county staff. Youth committed to the Department and not sentenced to a YDC are under the supervision of Community Programs. Each youth is evaluated on several different measures, and the composite score of the risk and needs assessments determines placement options and level of supervision. ADMINISTRATION ORGANIZATION The Office of Administrative Services is responsible for budgeting, personnel, accounting, general administrative support services, coordination of construction activity, property and leases, and management of staff training. The Office of Program Development and Evaluation develops conceptual designs and implementation strategies for departmental programs and services, including education and health services. In addition, this office is also responsible for prevention programs, quality assurance and program evaluation. The Office ofthe Deputy Commissioner is responsible for developing departmental policy, operating the Investigations Unit, planning and research, operating the Management Information Unit, providing support services to the Board of Directors, and serving as a liaison between the Department and the Legislature and other outside agencies. The Office of the Commissioner is responsible for the overall direction and management of the Department. AUTHORITY Titles 15-11, 39-3 and 49-4A, Official Code of Georgia Annotated. 81 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Programs and Services Youth committed to the Department of Children and Youth Services for violent offenses have almost doubled over the past five years. During this period, the overall commitments to the Department have increased by 16 percent. The increase in youth committing violent acts has resulted in more youth being sentenced to serve time in a Youth Development Center (YDC) and for longer lengths of stay. Juveniles classified as designated felons, who are required by law to serve their sentence in a YDC, comprise approximately 40 percent of the YDC population. The treatment needs for those juvenile offenders sentenced to a YDC have also increased dramatically. During the first year of his first term, Governor Miller decided to remove the Division of Youth Services from the Department of Human Resources and create the Department of Children and Youth Services. This action was approved by the 1992 General Assembly. Creating the new department provided the Governor and General Assembly an opportunity to focus on the growing demand to provide programs for those juvenile delinquents committed to the state's custody. NEW SENTENCING REQUIREMENTS In the 1994 session of the General Assembly, the Governor proposed that juveniles 13 to 17 years of age who are alleged to have committed particular violent crimes be tried in superior court as adults and sentenced to serve their time in facilities operated by the Department of Corrections. The offenses listed in the new legislation, the School Safety and Juvenile Justice Reform Act of 1994, are murder, voluntary manslaughter, rape, aggravated sodomy, aggravated child molestation, aggravated sexual battery, and armed robbery ifcommitted with a firearm. The legislation also increased the maximum length of time that a juvenile delinquent could be sentenced to a YDC from 18 months to 60 months. The new legislative allows a juvenile court judge to sentence a juvenile offender to a short term stay in a Youth Development Center for up to 90 days. This particular part of the legislation is being used extensively by some judges. Forty-five percent of those youth sentenced to a YDC under this provision committed property crimes. In order to accommodate the juveniles being sentenced for up to 90 days, the Governor authorized the Department to reopen some YDC bed space that was not being utilized. The Department also entered into a contract with the Irwin County Commission for the use of an existing 316-bed privately funded prison facility located in Ocilla. This facility, Irwin Youth Development Center, will be or two. They have identified a need for 2 additional YDCs solely for those youth receiving short term sentencing. Thus far, the Department has 524 available beds for the 90 day program including the Irwin Youth Development Center (316) and 208 beds in the four state-run YDCs. SECURE DETENTION BEDS: Regional Youth Detention Centers The Regional Youth Detention Centers (RYDCS) have become overcrowded with juveniles who are either mandated to serve their sentence in a YDC or for which the YDC is the most appropriate place for care. The primary mission of the RYDCs is to provide for COMMITMENTS BY OFFENSE TYPE F.Y. 1990 - F.Y. 1994 (Ranked on F.Y. 1990) OFFENSE TYPE Percent of Total F.Y.90 F.Y.91 F.Y.92 F.Y.93 F.Y.94 Property Public Order Violent (incl. sex) Drug Selling Status Drug Use Weapons Violation Sex Non-Violent Traffic Victimless 48 12 12 7 4 3 2 1 1 _ _1 46 13 15 7 3 4 2 1 0 _ _1 42 13 18 7 2 4 3 1 1 _ _1 45 13 19 5 3 3 3 1 0 _ _1 41 13 21 4 3 4 5 1 1 _ _1 Total Commitments 3,374 3,385 3,509 3,630 3,905 used exclusively for those juveniles sentenced to serve up to 90 days in a YDC. The Department projects that up to 60 youth per week will be sentenced to a short term stay in the YDC within the next year detention services for juveniles until there has been a disposition of their case resulting either in commitment to the Department or being released. The 20 RYDCs have a capacity of 670 and there are 131 beds in the 82 independent Fulton County RYDC for YOUTII DEVELOPMENT CENTERS: placements for the most violent juvenile which the Department reimburses on a per A SECURE RESIDENTIAL commitments, the Department contracts day basis. The Department also has 56 PROGRAM with the Department of Corrections to beds available in the city of Savannah jail operate a special 97-bed maximum for housing juveniles being detained for The state has not built a new YDC since security prison in Eastman for juvenile superior court trial. Other county and city 1979. The demand for new beds, coupled offenders who engage in violent behavior officials have indicated they would be with the longer lengths of stay, has toward other youth and staff and for youth interested in contracting for beds for increased the need for constructing who escape from a detention center or a detention services and the Department will additional YDCs. The Governor will be YDC and commit other offenses. This continue to pursue this approach for recommending a new construction facility now operates at capacity and the additional detention beds. These contracts program to begin in the Amended Governor is including funds in his Fiscal require strict compliance of sight and Appropriation Act for Fiscal Year 1995. Year 1996 budget recommendation to sound separation of juveniles and adults. As a result of the demand for additional expand this facility in the Department of To continue this contracting program, the bed space, the Department begin Correction's budget by 300 beds. Governor included a recommendation to contracting with the Department of contract with the Crisp County Sheriffs Corrections in October of 1994 to house ALTERNATIVE PROGRAMS: Office for 28 beds to be opened in the last 100 regular committed youth at the quarter of the current fiscal year. Davisboro Youth Development Facility. Many of the youth committed to the The Board of Children and Youth Other actions are being taken: specifically Department do not need to be incarcerated. Services asked the Department to plan for opening 60 beds at the Milledgeville YDC These youth can be appropriately placed adequate YDC bed space and alternatives that have been unfunded for several years in specialized programs that range from to incarceration to alleviate community treatment the overcrowding in the programs that emphasize RYDCs. This policy should result in juveniles being Regional Youth Detention Center tutoring, counseling, and job readiness skills to transferred to appropriate Occupancy Rates F.Y. 1988 - F.Y. 1994 residential programs for placements soon after 108 ,------,-------.-----,---,----,----,----, those youth with more disposition of their cases. RYDCs would then be used only for short-term detention -as intended. For juveniles in detention awaiting superior court trial, the Department's plan for Fiscal Year 1996 includes =~ ~ 1st ----- y ]~I- oy 100 ----- - serious behavior or mental disorders. The Governor's improvements for the current year and Fiscal Year 1996 include an increase in the funding level for treatment programs for committed youth that have expanding the RYDC specialized needs. The capacity. The Governor has :.:.:.:.:.;.>:. Fiscal Year 1996 budget included a 1DO-bed RYDC in his Fiscal Year 1996 Budget Recommendation that will be used solely for detention of 1988 1989 1990 1991 1m J'Iscal Yfal'll lm* 1994 *Decline in 1993 due to the addition of 15 beds at the Clayton RYDC recommendation includes the EXCEL program operated by contract with the Inner Harbour company. juveniles that will be tried in superior and initiating a new building program to This is an outdoor therapeutic program court. The juveniles may be in detention begin in Fiscal Year 1996 for two new used as an alternative to a YDC. The for a much longer period than a juvenile ISO-bed YDCs. program will serve 267 youth who are low under the juvenile court jurisdiction. The treatment needs for those and moderate-risk juvenile offenders. Efforts will continue to not only juveniles serving their time in a YDC has EXCEL provides programming for GED address the overcrowding in the RYDCs also changed during this period of and other educational components, but to improve health care and educational increased commitments. An increasing counseling and outdoor activities in a 17 services provided for juveniles being number of committed juveniles need week program. detained. The Department of Education special treatment for sex offenses, alcohol The Department has received funding has increased its grant for special and drug abuse, violent behavior and other for three additional wilderness programs education teachers to make certain that mental health treatment. Most of the over the past three years. This expansion each RYDC has a qualified special committed juveniles are also in need of of the successful Baxley Wilderness education teacher. The Governor is also remedial education courses. Ninety Institute provides educational and proposing to increase the RYDCs ability to percent of the juveniles are two or more vocational opportunities for repeat felony provide each juvenile detained in a RYDC grade levels below what their educational offenders that would have been placed in a with a complete health assessment before attainment should be for their age. YDC. The program serves 40 youth in a being released or transferred. In response to the need for secure wilderness/marine-related, educational and 83 vocational environment. Twenty youth are on-site and twenty are in aftercare. The goals ofthe program are to reduce or eliminate recidivism among participants, to increase each youth's academic skills and to develop each youth's vocational skills and work ethic. The average length ofstay in the program is six months on-site and six months on aftercare. The total funded capacity of this alternative is 95 beds which serve approximately 190 juveniles per year. The locations of the new sites coming on line during this fiscal year are Early County, Bleckley County and Fort Mountain State Park in the Chattahoochee Natural Park. The Group Home program is a placement for delinquent youth who come from unstable home situations. Youth from throughout the state are referred to one ofthree locations: Winder, Gainesville, and Savannah. An additional group home will be available in February 1995 in Albany. Group counseling is an integral part of all group home programs even though each home has a unique program. The home in Winder, Phillip Grace Group Home, is located in a state park and residents of the home are hired for park maintenance services. The youth in the Savannah Group Home work in the Georgia Regional Hospital in Savannah. The Gainesville group home residents work in the countymaintained parks under the direction of the Parks and Recreation Department. Contract homes, like group homes, provide residential treatment for delinquent and unruly youth whose home situation is contributing to their behavior. Services are provided in an atmosphere as much like home as possible through contracts with private families, institutions or community facilities. The Department has developed and expanded this program due to its cost effectiveness and statewide availability. The Contract Home Program makes maximum use of community resources as youth attend public schools and participate in community activities. COMMUNITY BASED PROGRAMS: The Department is also responsible for providing probation services and community-based programs. An example of a community-based program is the alternative school program which is located in Chatham, DeKalb and Fulton Counties. The community schools provide remedial and alternative education to DCYS youth who are in community placements and who are unable to return to their local school systems. This program is also used for youth who are returning to those communities from other residential programs such as a group home or wilderness program. The Department also operates three multi-service centers and four group homes that offer a wide range of educational, recreational and therapeutic activities for youth in the community. - 84 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Program Information F.Y.I993 ACTUAL F.Y.I994 ACTUAL F.Y.1995 BUDGETED F.Y.I996 RECOMMENDATIONS 1. Average daily population - Regional Youth Development Centers 2. Number of youth served - youth receiving court services 3. Number of commitments 4. Admissions - Youth Development Centers 5. Admissions - Regional Youth Detention Centers 821 30,630 3,631 998 15,762 1,010 35,207 3,905 1,003 17,546 1,317 37,319 3,900 1,044 18,423 1,000 38,319 4,000 1,164 18,000 Average Daily Population Regional Youth Development Centers 1,400 1,200 1,000 800 600 400 F.Y. F.Y. F.Y. F.Y. 1993 1994 1995 1996 BUD REC Number of Commitments F.Y. 1993 F.Y. 1994 F.Y. 1995 BUD F.Y. 1996 REC 85 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Total Budgeted Positions as of October 1, 1994 -- 1,989. Board of Children and Youth Services Conmissioner 19 Deputy Conmissioner 35 - Develops departmental policy - Manages conmunications and serves as liaison with the Board, State and local agencies, and the Legis- lature - Coordinates planning and research - Implements and administers management information systems - Coordinates apprehension of youth who have absconded from the Department's custody I Office of Administrative Services 38 - Develops and manages the budget - Performs accounting, payroll, and auditing functions and maintains the official departmental financial records - Administers contracts and agreements - Provides general departmental support and procurement - Administers all personnel related activities - Administers employee development and training programs - Coordinates facility repairs, maintenance and construction I Division of Detention Services 590 - Provides tempor~r~ sec~re care and supervIsIon, In a humane environment, for youth charged with offenses or found guilty of offenses and awaiting court disposition or placement by the Department. The Department operates 20 Regional Youth Development Centers I Office of Prevention, Program Development and Evaluation 13 - Develops conceptual designs and implementation strategies for programs and services needed to meet the missions and goals of the Department - Develops and implements a system for program evaluation which: Measures the effectiveness and cost efficiency of departmental programs Monitors programs for compliance with appropriate American Correctional Association, Department of Education and Federal School Lunch standards I Division of Campus Operations 718 - Provides treatment and reha- bilitation in a safe and humane environment for those youth assigned to the 4 state youth development campuses 86 I Division of Conmunity Programs 576 - Provides effective and efficient management of conmunitybased services witin the Department's continuum of care. Services include prevention programs, intake and probation, assessment and classification, residential and non-residential alternatives to youth development campuses and aftercare and transitional services DEPARTMENT OF COMMUNITY AFFAIRS RECOMMENDED STATE APPROPRIATIONS FORF.Y. 1996 DECREASE OVERF.Y. 1995 BUDGET CONTINUATION FUNDS IMPROVEMENT FUNDS $27,841,561 ~ $1,550,829 $24,392,943 $3,448,618 HIGHLIGHTS Although there is an overall decrease of $1,550,829 in recommended funding for F.Y. 1996 over the current fiscal year, $3,706,890 reflects a reduction in continuation funding for Local Assistance Grants added by the General Assembly and $1,000,000 reflects a reduction in funding for Regional Economic and Business Assistance Grants (currently budgeted at $2,000,000). Remaining in Local Assistance Grants is $134,000 to assist the Clark Atlanta University Public Access and Teacher Education Programs, $40,000 in continuation funding for the Aviation Museum plus an additional $50,000 in improvements for the Museum. The recommended appropriation for F. Y. 1996 Department operations actually increases over the current fiscal year. $180,000 in Local Assistance Grants to provide state funding for planning and design of an education facility in Houston County to train the personnel of companies connected with Robins Air Force Base to help prevent this base from being considered for closing. In the F. Y. 1995 Amended Budget, $300,000 in Local Assistance Grants is being recommended to assist communities in defending the need for military bases identified by the Base Realignment and Closure Commission for potential closing. $757,833 to provide start-up costs for operations of the Georgia Music Hall of Fame facility in Macon, tentatively scheduled to open in January, 1996. $225,000 to provide state funding for administration of federal awarded Empowerment Zones and Enterprise Community Grants. GEORGIA ENVIRONMENTAL FACILITIES AUTHORITY encourage expansion of existing industries. Funding is tied to job creation. $20 million in bonds for a water and sewer construction loan program for local governments through the Georgia Environmental Facilities Authority. $751,000 to establish a Flood Recovery Housing Program through the Georgia Housing and Finance Authority. GEORGIA HOUSING AND FINANCE AUTHORITY $2,185,000 for economic development incentives through the Georgia Housing and Finance Authority (GHFA). This improvement raises the incentive fund to $6,000,000. These incentives are used to recruit new industries to the state or to STATE FUNDING DEPARTMENT OF COMMUNITY AFFAIRS (MILUONS) 21.744 17.374 6.852 7.764 ~---8.004 14.13 29.392 27.842 10.754 14.13 .7 II .8 87 I I 81 82 FIscal Years 86 8. DEPARTMENT OF COMMUNITY AFFAIRS FINANCIAL SUMMARY Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications ARC Assessment Local Assistance Grants Capital Felony Expenses RDC Contracts Local Development Fund CDBGGrants QC ARC Revolving Loan Fund QC Georgia Music Hall of Fame Authority Georgia Environmental Facilities Authority - Operations Georgia Environmental Facilities Authority - Loans Georgia Environmental Facilities Authority - Solid Waste Grants Georgia Environmental Facilities Authority - Recycling Grants Georgia Housing and Finance Authority State Housing Trust Fund National and Community Service Program Regional Economic Business Assistance Grant Local Government Efficiency Grants Georgia Sports Hall of Fame 5,859,855 272,165 166,417 44,915 1,094 516,379 1,328,212 271,192 44,827 97,802 902,800 68,510 2,217,561 889,067 39,144,587 200,000 107,800 502,474 730,000 6,491,191 328,255 207,879 62,564 5,071 549,166 1,575,928 179,865 47,478 88,384 2,155,000 2,272,798 750,000 37,050,013 582,500 157,323 526,580 750,000 400,000 4,625,000 3,000,000 4,625,000 338,234 1,000,000 750,000 50,000 7,528,468 514,983 227,307 12,000 14,476 549,166 653,983 189,980 51,309 94,731 3,880,890 2,272,825 750,000 51,536,586 105,923 257,480 34,346,473 750,000 400,000 5,775,076 388,146 177,950 11,180 513,430 229,080 190,789 50,535 97,098 2,272,825 750,000 30,000,000 757,833 807,709 750,000 400,000 7,685,000 4,625,000 580,883 2,000,000 750,000 100,000 8,615,000 5,000,000 250,000 2,000,000 750,000 215,617 180,232 59,912 20,000 28,000 5,400 800 5,761,908 323,990 171,450 3,180 513,430 216,080 172,056 50,535 97,098 174,000 2,272,825 750,000 30,000,000 30,000,000 200,000 2,141,650 757,833 868,047 750,000 400,000 6,671,000 4,625,000 250,000 1,000,000 750,000 100,000 57,618 5,819,526 323,990 171,450 230,000 3,180 513,430 216,080 172,056 50,535 97,098 404,000 2,272,825 750,000 30,000,000 757,833 868,047 750,000 400,000 2,936,000 9,607,000 4,625,000 250,000 1,000,000 750,000 100,000 DEPARTMENT OF COMMUNITY AFFAIRS FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS EZJEC Administration National and Community Service Commission Regional and Local Plan Implementation Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds Governor's Emergency Funds Total Federal and Other Funds STATE FUNDS QlCPOSmONS \C MOTOR VEmCLES 100,000 57,990,657 41,658,892 1,620,790 683,899 43,963,581 14,027,076 120 9 64,043,229 40,233,674 1,672,293 1,043,538 42,949,505 21,093,724 127 13 180,000 210,000 120,057,463 55,421,297 35,098,776 145,000 90,665,073 29,392,390 125 16 60,212,268 30,904,056 341,433 31,245,489 28,966,779 102 7 500,000 33,135,994 33,135,994 3 210,000 56,888,432 30,904,056 1,591,433 32,495,489 24,392,943 102 7 225,000 225,000 210,000 3,448,618 60,337,050 30,904,056 1,591,433 3,448,618 32,495,489 27,841,561 102 7 DEPARTMENT OF COMMUNITY AFFAIRS F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 29,392,390 CONTINUATION REDUCTIONS 1. Eliminate funding for one-time Local Assistance Grants except for $134,000 for Clark Atlanta University's Public Access and Teacher Education Programs and $40,000 for operational expenses of the Aviation Museum. (3,706,890) 2. Reduce funding for Regional Economic and Business Assistance Grants. (The Department requested a funding level of $2,000,000.) (1,000,000) 3. Reduce real estate rentals due to a rate adjustment in the lease contract. (35,736) 4. Provide an increase in federal funds for administration of Community Development Block Grants and in fees from other administration programs. (36,884) 5. Georgia Housing and Finance Authority - Reduce state match funding for the federal HOME Housing Block Grant Program due to federal waivers for state matching requirements in Georgia's flood disaster counties. (The Authority originally requested $3,800,000.) (1,014,000) TOTAL REDUCTIONS (5,793,510) CONTINUATION ADDITIONS 1. Provide for a personal services lapse of 1.0% and annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. (The Department requested a 0.8% lapse.) 115,205 2. Provide an increase in operating expenses due primarily to reclassification of accounting for computer supplies and maintenance. (The Department requested an increase of $157,241 to fund anticipated increases in printing and publications.) 93,085 3. Georgia Music Hall of Fame Authority - Provide for start-up costs for operations of the Music Hall of Fame facility in Macon. The recommendation assumes an opening date of January, 1996. 500,353 4. National and Community Service Commission - Provide for an increase in personal services and related operating expenses which is matched by $40,000 in federal funds. 30,000 90 DEPARTMENT OF COMMUNITY AFFAIRS GOVERNOR'S RECOMMENDATIONS 5. Georgia Housing and Finance Authority - Continue a total appropriation level of $4,625,000 for the State Housing Trust Fund. (The Authority requested a total state funding level of $5,000,000.) 6. Georgia Environmental Facilities Authority - Provide a net increase in operating expenses due to the transfer of an $80,000 contract with the Georgia Rural Water Association from the Department of Natural Resources to the Authority which is partially offset by reducing funding for other Authority expenses. 7. Provide for all other continuation increases. No Change 46,453 8,967 TOTAL ADDITIONS NET CHANGES TOTAL STATE FUNDS - CONTINUATION IMPROVEMENTS 1. Provide additional funding in personal services to meet staffing requirements in the Economic Development section while providing assistance to the Governor in the development of the BEST programs for existing industry. Funding of $43,245 is also provided in the F.Y. 1995 Amended Budget. 2. Provide additional funding for Local Assistance Grants to assist with operational expenses of the Aviation Museum. 3. Georgia Environmental Facilities Authority - Provide $20,000,000 for a Water and Sewer Loan Program for local governments. 4. Georgia Housing and Finance Authority - Increase state funding for the economic development incentives fund to $6,000,000. 5. Georgia Housing and Finance Authority - Provide state funds for the Authority's Flood Recovery Program. 6. Houston County Grant - Provide state funding for planning and design of an education facility in Houston County to train the personnel of companies connected with Robins Air Force Base to help prevent this base from being considered for closing. 7. Provide state funding for administration of Empowerment ZonelEnterprise Community Grants. 794,063 (4,999,447) 24,392,943 57,618 50,000 See G.O. Bonds 2,185,000 751,000 180,000 225,000 TOTAL IMPROVEMENTS 3,448,618 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 91 27,841,561 DEPARTMENT OF COMMUNITY AFFAIRS Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 1. Executive and Administration TOTAL 61,986,492 STATE 24,593,020 TOTAL 23,877,018 STATE 22,602,951 2. Planning, Information & Management 4,060,162 3,538,930 3,799,754 3,626,748 3. Business and Financial Assistance 54,010,809 1,260,440 32,660,278 1,611,862 TOTAL APPROPRIATIONS 120,057,463 29,392,390 60,337,050 27,841,561 RECOMMENDED APPROPRIATION: The Department of Community Affairs is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $27,841,561. 92 DEPARTMENT OF COMMUNITY AFFAIRS Roles and Responsibilities The mission of the Department of Community Affairs is to improve the quality of life for Georgians by enhancing the effectiveness of local governments and by developing and maintaining a positive relationship between state government and the 159 counties and over 550 municipalities in Georgia. There are several major areas of responsibility of the Department in fulfilling its mission. TECHNICAL ASSISTANCE The Department provides technical assistance to local governments to help solve operational problems and improve management systems. Assistance activities include, but are not limited to, Personnel Administration, Building Codes, Public Works, Governmental OrganizationlManagement Practices, and Regional Development Centers (RDCs). The Department provides training to local governments in a variety ofadministrative areas: payroll, budget and accounting, and procurement. The Department conducts code enforcement training for local government inspectors in implementing the statewide uniform construction and building codes. Additionally, training is provided to local governments that request assistance in installing a user fee system for local public works. The Department also develops sample policy and procedure manuals for local law enforcement and other governmental organizations. The Department also contracts with the 17 RDCs to provide technical assistance to local governments. COMPREHENSIVE PLANNING ASSISTANCEI SOLID WASTE MANAGEMENT PLANNING The Department has primary responsibility for implementing thePlanningAct of 1989 (Growth Strategies). In this regard, the Department develops and administers appropriate standards and procedures for local comprehensive planning; reviews plans submitted by local government; certifies local governments as qualified participants in the planning process; and assists the Governor and his Development Council in preparing a comprehensive statewide plan. In addition, the Department fulfills its statutory obligation to the Georgia Solid Waste Management Act by reviewing the waste reduction strategies adopted by regional/local government coalitions. lNFORMATION The Department has primary responsibility to serve as a clearinghouse for information and initial point of contact within state government for information, data, resources and assistance regarding activity related to local governments. Staff time and efforts are devoted to ongoing development and enhancement to the Georgia database and network. The database contains 10 years oflocal government fmance data; population, economic and other demographic data; census data; historical; and state agency data. Additionally, the database is incorporated into the state's Geographic Information System (GIS) planning efforts. Based on information collected from various sources, the Department prepares numerous surveys, reports, documents, publications and studies. PARTICIPATION IN FEDERAL PROGRAMS AND ADMINISTRATION OF GRANTS TO LOCAL GOVERNMENTS The Department administers the state and federal funds entrusted to the state for Community Development Block Grants (CDBG), Appalachian Regional Commission (ARC) grants and Revolving Loan Funds in the 35 Appalachian Regional Commission counties. The Department also functions as a manager and contract monitor for pass-thru grants. Pass-thru grants/contracts administered by DCA include state contracts for Regional Development Centers, Local Assistance Grants, Local Development Fund, Regional Economic and Business Assistance Grants, Local Government Efficiency Grants, and National and Community Service Educational Vouchers. ATTACHED AGENCIES The Georgia Environmental Facilities Authority makes low cost loans available to cities, counties and authorities for water supply, wastewater treatment and solid waste facilities. The Georgia Housing Finance Authority assists low and moderate income Georgians in obtaining adequate housing at an affordable cost. The State Housing Trust Fund is the mechanism for channeling state funds to support project initiatives in Homeless Assistance Programs; Low Income Rental Housing Programs; and Special Need Housing Programs. The Georgia Music HaD of Fame Authority has responsibility to construct (currently underway), operate, maintain and promote a facility to house the Georgia Music Hall ofFame. The Georgia Sports HaD of Fame Authority has responsibility to construct, operate, maintain and promote a facility to house the Georgia Sports Hall ofFame. The State Commission on National & Community Service has responsibility for developing and implementing community service programs in Georgia. AUTHORITY Titles 8, 12,36,48 and 50 of the Official Code of Georgia Annotated. 93 DEPARTMENT OF COMMUNITY AFFAIRS Programs and Services Strong communities are critical to Georgia's political, economic and social development. The future growth of the state is dependent upon the continued strength and viability of local governments. The Department of Community Affairs' (DCA) mission since its creation in 1977 by the Georgia General Assembly has been to improve Georgians' quality of life by enhancing the effectiveness of local governments and by maintaining the positive relationship between state government and the 159 counties and 550 municipalities in Georgia. DCA serves as an advocate for local governments and provides planning, management and fmancial assistance to help local officials meet the challenging community and economic development needs of the future. The Department promotes the orderly development of community services; responds to the need of the state to more effectively fulfill its responsibilities to local governments and communities; improves the coordination of federally required state and area-wide plans; serves as the Governor's representative to local communities in matters affecting social, economic or intergovernmental relations, and in this capacity, provides mediation, consultation and research services to local governments. Programmatic functions and services are carried out in six key areas. GRANT ADMINISTRATION The Department provides assistance to local governments through administration of a number of grant programs. The Community Development Block Grants (CDBG) Program funds four separate programs under which Georgia's communities may receive assistance. The Employment Incentive Program (EIP) funds projects which will result in new or retained jobs for low and moderate income persons. These EIP projects have already resulted in over 2,200 jobs created or retained, of which over 1,600 went to persons oflow and moderate income. The projects leveraged over $48 million in private investment. Also through EIP, 50 Georgia communities have established Revolving Loan Fund (RLF) programs. RLF provides loans to local start-up and expansion businesses which provide a variety of services to help local communities improve their quality of life and which provide important employment opportunities, particularly for low and moderate income people. The six RLF programs operated by the cities of Willacoochee, Rome and Americus, and Calhoun and Wheeler and Tift Counties The Innovative Grant Program is a new grant directed toward simulating new approaches to old problems and to encouraging projects which address the needs oflow and moderate income persons in innovative ways. Begun in 1992, this program has funded seven projects totaling over $2 million in assistance. Regular competitive grants (the majority of CDBG projects) fund public facilities, economic development and housing projects which primarily benefit low and moderate income persons. Between October 1990 and September GRANT ACTIVITY JULY 1,1991 TO APRIL 15, 1994 Type of Grant Number of Projects Funded Total Assistance Appalachian Regional Commission 21 $4,602,584 Community Development Block Grant 37 8,857,277 Employment Incentive Program 39 6,397,170 Governor's Emergency Fund 309 4,541,023 Local Assistance 74 3,763,100 Local Development Fund 374 5,070,601 Local Government Efficiency 18 346,582 Special Investment Fund Total 7 --- 1220 1,214,407 $4,792,744 provide good examples of what RLF has done for the citizens of Georgia. The Immediate Threat and Danger Program (lTD) assists communities with immediate threats to health or welfare where other resources are not available to meet those needs. SinceF.Y. 1991,31 of these immediate needs projects have been funded for a total of about $500,000 in assistance. 1993, CDBG funds were used to rehabilitate 1,223 housing unit, benefiting over 3,000 Georgians with low/moderate incomes. During the same period, CDBG funds were used to construct 81 senior centers, day care centers and health centers. These 81 facilities serve over 200,000 low/moderate income people. The Local Government Efficiency Grant Program promotes more effective 94 local governments by encouraging consolidation of governments or services. In F.Y. 1994, $750,000 in assistance will be awarded to Georgia communities for various consolidation projects. COMPREHENSWE PLANNING As a result of the Growth Strategies Commission, the Georgia Planning Act of 1989 was passed, creating a "bottom-up," comprehensive, integrated and coordinated planning process initially to be conducted at the local government level, then at the regional and state levels. To ensure unifonnity and consistency, DCA is responsible for the overall management of the planning process. For local comprehensive planning, the Department, with the assistance of a broad based policy group and associated work teams, developed a set of Minimum Planning Standards and Procedures to guide local governments in preparing their comprehensive plans. The planning standards include components such as environmental planning criteria, protection measures for mountain and river corridor resources, capital improvements, and developments of regional impact. o To date, 538 of Georgia's 696 local governments (77 percent) have completed comprehensive plans meeting the requirements of the Georgia Planning Act. o Plans for 28 local governments are currently in the review process. o Plans for III local governments are due in September 1995, which will complete the local planning phase of the state's three-tiered planning program. Other Department functions include planning assistance, primarily through training and publications. Training provided includes quarterly training workshops for Regional Development Centers (RDCs) and periodic training sessions for private consultants, designed to keep them abreast of emerging aspects of the coordinated planning program. Publications have included a model local comprehensive plan for the City of Villa Rica, completed in 1990; quarterly issues of the Policy Memo Series to answer policy-oriented and technical questions raised about implementation of the Georgia Planning Act; and a new publication, Tools for More Effective Local Government, designed to provide brief technical guidance on particular planning issues faced by local governments. The Department contracts with the RDCs to enable them to carry out their responsibilities lUlder the Georgia Planning Act. Approximately $2.1 million per year in funding has been provided to the RDCs during this period. Specific funding has been provided to the RDCs for purchase of a geographic information system (GIS) to enable them to participate in the Georgia data network. These GIS systems are part of a statewide program to map local information on infrastructure, natural resources and land use. Some ofthe benefits that have resulted from local comprehensive planning are the introduction of capital improvement budgeting for a number of local governments; new opportunities for consolidation of services/facilities with other governments; an update of zoning ordinances; an increase in local awareness ofenvironmental protection issues; and an increase in adoption of historic preservation, tree and sign ordinances. The next phase of the state's threetiered planning program is the development of regional plans that build upon local government comprehensive plans. The preparation of regional plans is expected to begin shortly after September 1995, when the last round of local government comprehensive plans is scheduled to be completed. A draft set of planning standards to guide the preparation ofregional plans has been developed by DCA with input from local governments, regional development centers, planning professionals and other interested parties. The draft standards are currently being reviewed and modified to facilitate maximum coordination with the development of the regional economic development strategies called for by the Governor's Development Council. SOLID WASTE MANAGEMENT The Comprehensive Solid Waste Management Act of 1990 brought about sweeping revisions to the way Georgia manages its solid waste. Among other things, the Act called for a 25 percent statewide reduction, by 1996, in the amount of garbage we send to disposal facilities. All local governments are required to STATUS OF LOCAL GOVERNMENT COMPREHENSIVE PLANS Plans In Review Plans Not Submitted Plans Approved 95 submit a solid waste management plan to the DCA for determination as to whether the plan meets the Minimum Planning Standards and Procedures for Solid Waste Management promulgated by DCA. Once a local plan is approved by DCA, it is sent back to the local government(s) for adoption. After the approved plan is adopted, the local government receives a letter from DCA making it eligible to receive solid waste related grants, loans and permits. Of the 696 local governments in the state: 598 (86 percent) have plans approved by DCA and locally adopted. These governments will retain their eligibility for permits, grants and loans for 10 years as long as they maintain assurance of disposal capacity and have a strategy to reduce waste. 55 (8 percent) have received DCA's approval but have not yet adopted their approved plans. 29 (4 percent) have plans currently in the review stage. 14 (2 percent) have not submitted a plan for review. All these local governments have been contacted and have assured DCA staffthat they are working on a plan. The Solid Waste Management Survey and Full Cost Report enables DCA to trace the amount of solid waste disposed in public and private landfills and monitor the cost of solid waste services. For example, the Department reported that 8,045,562 tons of waste were disposed in municipal solid waste disposal facilities during the second reporting year. This represents a decrease of 558,522 tons or a six percent decrease in the amount disposed between the revised base year (1992) and 1993. The Department provides technical assistance and information to local governments and other interested parties in a wide range of solid waste management issues from implementing systems for tracking expenditures and waste volume to assessing the need to consolidate solid waste management services of multiple jurisdictions Plans for the coming year in the technical assistance area include making the Regional Solid Waste Management Cost Model available to local governments and other interested parties. A users manual, diskettes, training and limited phone support will be afforded in the near future. In order to help Georgia's cities and counties achieve their goals for improved solid waste management, the Department's Georgia Clean and Beautiful (GCB) Program sponsors and coordinates special events, projects and training workshops, all focused on public awareness of solid waste issues. RDC PERFORMANCE AUDITS DCA is charged by law with conducting performance audits of RDCs. The RDCs are an essential element of the state-wide coordinated comprehensive planning process with a mission to focus on local and regional planning efforts. RDCs are governmental entities which exist for nonprofit and public purposes. As such, the RDCs' funds are public monies for which the RDCs are accountable. DCA has the responsibility to audit each RDC and each RDCs nonprofit corporations at least biennially. Currently, there are 17 RDCs within the state. As of October 1991, DCA has conducted 19 RDC performance audits and one special review ofthe City of Quitman. Two RDCs performance audits have had especially significant impacts: An audit of the Oconee RDC disclosed some serious deficiencies in financial management practices. As a result, the Oconee RDC was dissolved in July of 1993. A recent performance audit of the Coastal Georgia RDC (CGRDC) and its nonprofit lending arm, the Coastal Area District Development Authority (CADDA) raised the issue of DCA's right to audit nonprofit corporations created by RDCs. DCA's authority and responsibility to audit the CGRDC and CADDA was upheld by the Georgia Supreme Court. SURVEY ADMINISTRATION The Department of Community Affairs has the most comprehensive local government data base in the nation, including a 13-year historical data base of financial informati0n about Georgia local governments. fuformation in the data base is used by DCA staff, RDCs, local government associations, requesting state agencies, statewide organizations and the local governments themselves. Information collected by DCA from surveys, service bureaus and state/federal government sources is made available as responses to questions about the operations and management of local governments implementing comprehensive plans. Members of the Georgia General Assembly routinely request information during the annual session and throughout the year. DCA's local government data base allows it to provide important information to state and local officials on local government fmances and operations. The Department collects four surveys mandated by the General Assembly, as well as several popular voluntary surveys. The four mandated surveys provide officials with information on local government fmances, bonded indebtedness of independent authorities, solid waste management, and the hotel/motel tax. The voluntary surveys, in which over 75 percent of local governments participate, provide information on wages and salaries and local government operations. Among other uses, information collected on the annual city/county financial survey is used in the "Census of Governments" published by the U.S. Census Bureau. Additionally, the information collected on the. solid waste and full cost accounting survey is used to track the statewide goals of reducing per capita waste disposal by 25 percent by 1996. During the past two and a halfyears, DCA has distributed over 8,100 publications and responded to nearly 4,200 requests for information. Included among the responses to information requests are the production of multimedia presentations of the history ofregionalism in Georgia; a training module on the uses of data to support economic development in the Council of Economic Development (CEDO) regions; and other media/data base publishing activities. - 96 DEPARTMENT OF COMMUNITY AFFAIRS l. Number of performance audits conducted Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED 6 3 6 F.Y.l996 RECOMMENDATIONS 6 2. Number of local government comprehensive plans reviewed 110 127 100 130 3. Number of technical assistance calls handled from local governments 1,400 1,500 1,500 1,500 4. Number of solid waste training sessions conducted 48 50 50 50 5. Major local government personnel 14 12 7 5 systems established or updated 6. Number of local governmental 43 38 35 35 entities provided assistance in law enforcement management/jail management 7. Number of solid waste plans or amendments reviewed 8. Number of requests for technical assistance in Geographic Information Systems 100 134 100 35 110 150 175 185 9. Number ofbond allocation requests processed 110 120 120 120 97 DEPARTMENT OF COMMUNITY AFFAIRS Total Budgeted Positions as of October 1, 1994 -- 118. Board of Community Affairs Attached for Administrative 16 r- Purposes O-n-Ly--------- --------1 Georgia EnvironmentaL FaciLities Authority 19 Georgia Housing and Finance Authority 160 Georgia Music HaLL of Fame Authority 9 Georgia Sports HaLL of Fame Authority 0 Office of the Commissioner 6 Works with other agencies and LegisLators - Provides pubLic information - Administers LocaL DeveLopment Fund - Administers ruraL deveLopment activity - Provides staff assistance to Georgia Music HaLL of Fame and Georgia Sports HaLL of Fame I Office of Administration 10 I Georgia Peach Corps Program 1 - Provides administrative support functions of budgeting, payroLL, personneL, accounting, procurement, property controL, and computer training/maintenance - Provides grants management services - Administers Bond ALLocation Program I I I Business and FinanciaL Assistance Division 31 PLanning, Information and Management Division 54 - Administers two piLot programs in Thomson/McDuffie County and VidaLia/Toombs County - Coordinates with State Commis- sion on NationaL and Community Service - Director's Office: Administers division; handLes ROC FinanciaL Audits and QuarterLy Report Review - Office of Business and Economic Assistance: Provides financiaL packaging assistance to smaLL businesses through avaiLabLe state funding or federaL funding; admin- isters the Bond ALLocation Program - Office of Grant Administration: Administers the ReguLar, Immediate Threat, and EmpLoyment Incentive Community DeveLopment BLock Pro- grams under the U.S. Department of Housing and Urban DeveLopment; administers AppaLachian RegionaL Commission grants and RevoLving Loan Fund - Office of Performance Audits: Conducts RegionaL DeveLopment Center performance audits; conducts per- formance audits on non-profit corporations that are created by RegionaL DeveLopment Centers - Office of the Director: Administers division; conducts research and training; prepares speciaL reports and product deveLopment - Office of GovernmentaL Manage- ment: Provides soLid waste assistance; provides direct technicaL assistance to LocaL governments; administers LocaL Government Efficiency Grant Program - Office of Coordinated Planning: Administers the Georgia PLanning Act of 1989; deveLops the State BuiLding Codes; administers the State IndustriaLized BuiLding Program; handLes ROC contract administration and monitoring - Office of Information Services: Administers and deveLops surveys; performs Geographic Information System (GIS) services; administers Georgia Data Bank and Network 98 DEPARTMENT OF CORRECTIONS RECOMMENDED STATE APPROPRIATIONS FORF.Y. 1996 INCREASE OVER F.Y. 1995 BUDGET CONTINUATIONFUNDS IMPROVEMENT FUNDS $704,107,472 $34,308,208 , $692,619,151 $11,488,321 HIGHLIGHTS $6,900,000 in bonds to provide for prison expansions at two existing institutions. This recommendation provides for construction of a 192 bed housing unit at Hancock CI and a 192 bed housing unit at Washington CI. The availability date ofthese beds is anticipated for July, 1996. Further, $1,700,000 in bonds is recommended for planning two 1,000 bed prisons. $3,151,765 to open and operate the 224 bed Haralson Detention Center. Opening for this facility is expected October 1995. $1,500,000 in Community Corrections to begin Phase I ofa mandatory community service program for all felons and - misdemeanants sentenced to probation. The F.y. 1996 recommendation will begin the program. It will provide for 18 community service coordinators who will locate community service projects, screen offenders, set up work details, provide orientation to client agencies and monitor community service hours performed by offenders. If successful, it is anticipated that this program will be expanded to other circuits in F. y. 1997 and F. Y. 1998. $1,500,000 to provide for expansion of substance abuse treatment programs. It is estimated that 75 percent of inmates and 65 percent of probationers have serious alcohol and/or drug related problems. The Department has developed a plan which will provide assessment as a part of the diagnostic/intake process and, based on the results, varying levels of substance abuse program services will be provided to inmates. RECOMMENDED APPROPRIATIONS AS A PERCENTAGE OF THE BUDGET 6.6% 99 DEPARTMENT OF CORRECTIONS Budget ClasseslFund Sources I PRIOR YEARS F.Y.1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.199S CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y.1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Utilities Court Costs County Subsidy Jail Subsidy Grants-County Camp Construction =; Central Repair Fund Payments to CSH-Meals Payments to CSH - Utilities Payments to Public Safety - Meals Irunate Release Fund Health Service Purchase Payments to MAG - Certification UGA Contract Minor Construction Fund Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds Total Federal and Other Funds STATE FUNDS POSmONS MOTOR VEmCLES 383,423,261 45,693,454 2,233,724 3,204,184 4,195,613 7,544,976 5,060,148 5,585,490 5,324,611 10,000 14,595,323 890,866 13,346,590 7,186,975 533,338 3,313,759 1,241,875 444,500 1,403,573 36,546,001 54,983 325,000 1,671,954 543,830,198 422,225,984 55,373,986 2,471,697 3,705,489 5,196,438 8,043,733 5,231,164 7,100,446 6,127,497 17,393,608 1,617,873 13,518,990 5,081,100 447,000 871,479 3,642,587 1,258,466 444,500 1,196,584 46,786,000 58,050 337,260 1,299,801 609,429,732 2,650,024 15,683,335 450,000 18,783,359 525,046,839 13,156 1,227 2,375,776 7,253,295 450,000 10,079,071 599,350,661 14,594 1,437 476,026,146 63,701,237 2,789,375 3,379,064 4,337,210 8,304,082 6,630,314 5,440,130 6,660,295 20,547,180 950,000 13,928,400 2,767,200 886,000 3,985,806 1,340,100 459,900 1,400,000 51,972,153 60,400 352,357 675,917,349 495,502,553 66,697,051 3,497,749 4,616,420 12,312,702 8,962,594 9,265,895 11,934,230 7,983,746 23,598,642 2,745,000 14,205,000 7,550,000 1,500,000 4,257,995 1,399,854 461,160 1,400,000 71,199,310 63,420 352,357 4,697,500 754,203,178 1,260,010 4,408,075 450,000 6,118,085 669,799,264 15,295 1,550 264,568 4,145,520 450,000 4,860,088 749,343,090 15,295 1,581 20,275,959 1,829,015 653,145 1,219,220 1,395,769 339,824 9,172,297 4,656,693 1,016,850 119,610,000 7,102,230 117,000 660,381 168,048,383 482,418,294 57,241,866 2,862,395 2,826,930 4,341,460 8,934,956 6,708,834 5,523,904 7,589,231 23,598,642 1,100,000 14,200,000 6,020,000 1,152,000 4,131,295 1,366,902 461,160 1,400,000 65,804,035 63,420 352,357 734,000 698,831,681 168,048,383 883 90 1,260,010 4,502,520 450,000 6,212,530 692,619,151 15,295 1,550 4,502,075 528,443 25,000 260,700 488,040 0 2,485,125 267,590 172,400 117,000 2,641,948 11,488,321 486,920,369 57,770,309 2,887,395 3,087,630 4,829,500 8,934,956 9,193,959 5,791,494 7,761,631 23,715,642 1,100,000 14,200,000 6,020,000 1,152,000 4,131,295 1,366,902 461,160 1,400,000 68,445,983 63,420 352,357 734,000 710,320,002 11,488,321 84 15 1,260,010 4,502,520 450,000 6,212,530 704,107,472 15,379 1,565 DEPARTMENT OF CORRECTIONS F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 669,799,264 CONTINUATION REDUCTIONS 1. Provide for adjustments to operating costs and increases in federal and other fund sources. (The Department requested $7,625,215.) 2. Provide for the replacement of 174 motor vehicles in F. Y. 1996, compared with 226 replaced in F.Y. 1995. (The Department requested replacement of 252 vehicles and 31 additional vehicles.) (4,442,862) (438,334) TOTAL REDUCTIONS (4,881,196) CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995 and provide for tort liability and workers compensation increases. This recommendation maintains a 5.2% personal services lapse factor. (The Department requested a 2.5% lapse.) 5,948,563 2. Provide funds for the purchase of replacement equipment. (The Department requested $11,763,949.) 1,179,736 3. Provide for increases in the inmate health care program necessitated by an increasing inmate population. This recommendation assumes costs associated with the more favorable contract. (The Department requested $19,197,157.) 13,806,882 4. Provide funding for minor construction and repair projects. (The Department requested $5,311,500.) 1,000,000 5. Fund court cost increases. The Governor recommends that $400,000 be appropriated to the Department of Law to assume primary responsibility for the Cason v. Seckinger litigation. (The Department requested $1,795,000.) 150,000 6. Provide for adjustments to Jail Subsidies and County Subsidies based on inmate population projections. (The Department requested $5,059,400.) 3,524,400 7. Additional funds for on-going computer operations, telecommunications network hookups and expansion from three to seven telemedicine sites and from three to nine distance learning sites. 8. Reflects continuation increases for the Board of Pardons and Paroles. (The Board requested $4,452,666.) 1,111,908 979,594 101 DEPARTMENT OF CORRECTIONS TOTAL ADDITIONS NET CHANGES GOVERNOR'S RECOMMENDATIONS 27,701,083 (4,881,196) TOTAL STATE FUNDS - CONTINUATION IMPROVEMENTS 1. Add 18 community service coordinators to implement Phase I of a three year implementation of a mandatory community service work program. This program will require community service of all felons and misdemenants sentenced to probation. 2. Provide funds for the department to contract for substance abuse counseling and treatment services at varying levels throughout the department depending on needs of inmates and mission of institutions. 3. Annualize the cost of 118 security positions recommended in the F.Y. 1995 amended budget. These positions are required due to mission changes at Lee Arrendale and Hancock Correctional Institutions. 4. Provides start-up funding for the 224 bed Haralson Probation Detention Center. This recommendation includes 64 positions, 15 vehicles and nine months operating costs. 5. Provides for additional health services contract positions at GSP, Valdosta CI, Phillips CI and Baldwin CI to begin implementing regionalized health care ($498,000) and to provide for mental health care services to meet the needs of the increasing inmate population ($1,981,567). (The Department requested an increase of $2,000,000 to annualize the F.Y. 1995 amended budget request for mental health services and an increase of $2,040,000 in the F.Y. 1996 continuation budget.) 6. Adds 2 positions and associated expenses to conduct victim notification in compliance with Senate Bill 252 which was passed in the 1993 session of the General Assembly. 7. Fund the following capital outlay projects: Construct an additional 192 beds at Hancock CI Construct an additional 192 beds at Washington CI Security, repairs and maintenance projects at various institutions Planning funds for two 1,000 bed prisons. (The Department requested $119,610,000 for these and other capital outlay projects .) TOTAL IMPROVEMENTS 692,619,151 1,500,000 1,500,000 2,700,000 3,151,765 2,479,567 156,989 See Bonds 11,488,321 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 704,107,472 102 DEPARTMENT OF CORRECTIONS Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 1. Administration and Central Support TOTAL 69,782,574 STATE 68,031,464 TOTAL 77,455,916 STATE 75,701,506 2. Inmate Security and Support 461,990,172 460,890,613 483,743,901 482,653,784 3. Community Corrections 106,210,947 102,943,531 110,206,935 106,838,932 4. Board of Pardons and Paroles 37,933,656 37,933,656 38,913,250 38,913,250 TOTAL APPROPRIATIONS 675,917,349 669,799,264 710,320,002 704,107,472 RECOMMENDED APPROPRIATION: The Department of Corrections is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $704,107,472. I IPercent of Total Budget by Function 11% 5% mAdministration and Central Support o Inmate Security and Support mCommunity Corrections mBoard of Pardons and Paroles 103 DEPARTMENT OF CORRECTIONS Roles and Responsibilities The Department of Corrections administers all sentences given to criminal offenders by state courts, including incarceration, probation and parole. At the end ofF.Y. 1995, the Department is expected to be housing 35,250 offenders in around-the-clock, 365-day correctional centers, to be supervising 136,000 persons on probation. and to be supervising 24,550 persons on parole--serving a total of 195,800 sentenced offenders. This undertaking requires a staff of 14,424 employees who in F.Y. 1995 are operating 85 separate facilities, including 38 correctional institutions, with a budget in excess of $670 million. The Department of Corrections as a budget unit is comprised of three separate inter-related state agencies: The Department,of Corrections. The State Board of Pardons and Paroles, which is assigned to the Department for administrative purposes only. The Georgia Correctional Industries Administration, a public corporation also assigned for administrative purposes only. A vast array of programs are in place to serve the large number of offenders under the supervision and control of these correctional-related agencies. DEPARTMENT OPERATIONS The Department is entrusted with the responsibility of protecting the public by enforcing the sentences handed down by state courts and supervising adjudicated offenders in the prison system and in community corrections programs. In collaboration with the community and other agencies, the Department provides programs which offer offenders the opportunity to become responsible, productive, law-abiding citizens. INCARCERATION--The Department operates the following types of institutions for the incarceration of inmates: Correctional institutions, involving around-the-clock, year-long administrative, custodial and life maintenance support for offenders. Inmate boot camps, which are short-term incarceration units co-located with prisons. Transitional centers, which provide general preparation for reentry into society for offenders close to being released from prison. While at the center, the offender obtains paid employment and pays room and board. The Department pays a $10.00 per day subsidy to 28 counties to house state inmates in county-operated work camps. A variety of offender services are provided to inmates, including physical and mental health, counseling, education, vocational training, recreation, library and chaplaincy services. To feed the inmates under its jurisdiction, the Department projects to serve over 30 million meals during F.Y. 1995. To accomplish this, the Department operates a central food distribution warehouse, three meat processing plants, and a canning plant. In addition it operates 10 farms that contain 10,000 acres offarm and pasture land. PROBATION--The Department is responsible for the management of all persons placed on probation as an alternative sentence to incarceration. Probation supervisors provide counseling and supervision for offenders, while ensuring that special judicial conditions such as fmes, restitution and community services are met. Besides administering the regular probation programs, the Depar1ment also operates institutions as a part of its community corrections function. They include: Special alternative incarceration/probation boot camp programs, which offer the court a sentencing alternative for young felony offenders emphasizing a military style basic training and programs addressing substance abuse and other offender problems with aftercare supervision. Detention centers provide a structured short-term period of confinement in a minimum security facility emphasizing daily work details, military structure and programming during evening hours. Diversion centers provide counseling to resident offenders, who during their sentence must maintain full employment and pay room and board, as well as any fmes restitution or dependent support for which they are liable. ATTACHED AGENCIES The State Board of Pardons and Paroles is empowered to grant, deny, condition, and revoke executive clemency to individuals convicted of violating Georgia's criminal laws. The Board reviews the sentences of all inmates to detennine what degree of executive clemency may be warranted, recommends clemency action and supervises offenders who have been paroled or conditionally released from prison until the completion of their sentence. The Georgia Correctional Industries Administration, a component of the state's prison system, is a public corporation, wholly owned by the state. GClA utilizes the inmate work force to manufacture products and provide services to government agencies, create correctional work programs and provide industrial work and training for inmates. GClA currently operates 14 manufacturing facilities statewide that generate more than $16 million a year in income. It receives no revenue from the state. AUTHORITY Titles 9, 42, and 77 of the Official Code of Georgia Annotated. 104 DEPARTMENT OF CORRECTIONS Programs and Services Correctional costs nationally have been growing at a rate between 10 and 15 percent annually over the past several years. This level of expenditure accounts for approximately five percent of total state funding. Responding to the public demand to deal with the rising rate of violent crime and successful legislative initiatives such as "two strikes and you're out" and "truth in sentencing", will bring even greater pressures upon Georgia's correctional system. In F.Y. 1985, the Georgia Department of Corrections' budget was $196,842,384 or 4.5 percent of the total state budget. The Department employed 6,948 employees. Ten years later, the Department's budget is $670,249,264, 6.85 percent of the total state budget, and employs a staff of 14,424. OPERATING CAPACITY GROWTH The Department of Corrections' operating capacity has increased from 24,194 at 87 facilities in January 1991 to 39,634 at 113 facilities by the end of F.Y. 1995. This capacity includes all facilities: prisons, county camps, transitional centers, boot camps, diversion centers, detention centers and a youth development facility. Included in these numbers, prison capacity was 22,140 in January 1991 and will increase to 35,149 by the end of F.Y. 1995. This is a 58 percent increase in inmate bed capacity. The frrst chart on this page illustrates the increase in prison bed capacity by year. The active inmate population has changed significantly over the past decade. As the second chart indicates, the number of inmates in the system for violent/sex offenses has increased 95 percent, current inmates incarcerated for substance abuse offenses have increased by 178 percent. Accordingly, the sentence lengths of the inmate population have increased overall. The number of sentences over 10 years has more than doubled since 1985. Prison Capacities / 25,789/ 23,610~ 22,t40~ / 30i49 ,/ I I I 1991 1992 1993 1994 Fiscal Year 35,1 49 ./ 1995 Active Inmate Population By Crime Type As of June 1985, 1989 and 1994 Property .. Substance Abuse Other Crimes o 5,000 10,000 15,000 EJ til 1985 1989 1994 20,000 105 and efficiently. For example, the Central Active Inmate Population by Sentence Length State Hospital complex in Milledgeville makes heavy use of inmates in its day-to- day operations. The Department provides inmate labor in the areas of food service, grounds maintenance and other facility maintenance operations at Central State Hospital complex buildings. The Georgia Public Safety Training Center in Forsyth is a centralized training facility 5,000 o June 1985 June 1989 June 1994 10 Yrs or Less 15.1 - 20Yrs rrrrrn liliill 10.1 - 15 Yrs [[[ll]] 20 + Yrs LifelDeath for public safety personnel. Inmates provide grounds maintenance, housekeeping, food service and vehicle maintenance for the Center. Inmates also perfonn community service work details such as fITe fighting services for local areas, maintaining state parks, general clean-up and ground maintenance, public roadway clean-up, tree planting and providing food service, housekeeping and ground maintenance for state office buildings. Inmate construction crews are renovating the Wachovia Building (#2 Peachtree Street) for state offices, building an athletic training facility at Middle BOOT CAMP PROGRAM The Governor's comprehensive boot camp program began in January 1991. Comprehensive correctional boot camps provide an intense prison experience in a strict military-like environment. By the for work release, nor are they paid wages for prison work. However, it is part of the mission of the Department to provide offenders with opportunities to become productive, law abiding citizens. To accomplish this, inmates perfonn jobs that keep the Department of Corrections and other state facilities operating safely Georgia College, completed work at three new boot camps and worked on construction at Metro Correctional Institution. In F.Y. 1994, the Inmate Construction crews were assigned a total of 115 projects worth a dollar value of $88,654,545. Of these projects, 66 were Department of Corrections projects worth $48,432,727 and 49 were for other state end of F.Y. 1994, the Department of Corrections had 3,730 boot camp beds as illustrated in the chart. As of June 1994, over 19,780 offenders had been through the Boot Camp Capacities comprehensive correctional boot camp program, of which approximately 18,300 or 92 percent successfully completed the program. Reasons for non-completion include such factors as medical, disciplinary, voluntary withdrawal and criminal justice removal, which refers to those program withdrawals by offenders with other cases pending and/or who are standing trial in other jurisdictions. 12.7% 49.9% 3.7% [] Prob. Det. Ctr. 1,860 [] Prob. Boot CIIIIlP 475 []]]] rnm. Boot CIIIIlp 1,258 Q Jnten. Disc Unit 137 WORK DETAILSIINMATE LABOR 33.7% The Department of Corrections has mrique relationships with various agencies and communities that are worthy of note. Inmates cannot hold paying jobs, except 106 The Use of Inmate Labor Saves the State Money 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 o Total Projects = 115 III $ Value Dept. Projects = 66 Non-Dept. Projects = 49 Actual Outlay agencies, counties and local communities estimated to be worth $40,221,818. These figures include the value of inmate labor, which is approximately 45 percent of the total cost. Therefore, over $39 million in taxpayers' money has been saved by using inmate labor. Projects that would have cost state and local governments $88,654,545 actually cost only $48,760,000 in materials. More than 1,200 inmates work in Correctional Industries, producing garments, furniture, chemicals, license plates, fabricated metal products and printed materials. These goods and services save taxpayers money. Nearly 3,000 inmates work in food and farm activities, raising crops, processing meat, canning fruit and vegetables, and preparing and serving food to offenders. Farming operations at 10 sites include 10,000 farm acres, 5,000 head of beef, 200 dairy cows, 6,500 hogs, 80,000 laying hens and row crops, fruits and vegetables. COMMUNITY CORRECTIONS Georgia has struggled with a persistent problem of prison overcrowding during the past decade. In Total Probations Collections: $46,879,000 [ll] To Counties: $28,834,000 1m To Child Support $204,000 EJ To State Treasmy $9,102,000 To Victims: $8,739,000 addition to extensive prison construction, a significant part of the strategy for addressing prison overcrowding has been to increase the use of probation supervision for felony offenders who traditionally would have been incarcerated. During the past decade the number of probationers has increased from 88,573 to 136,990. As compared to a cost of $51.74 per day to house an inmate in prison, basic supervision probation costs only $1.17 per day. The primary purpose of community corrections is to provide supervision which is consistent with public interest and safety; provide pre-sentence investigations to the courts; and to enforce conditions of probation to include collection of court-ordered fees and monies. Total caseload in F.Y. 1994 was approximately 135,000 probationers with the average caseload per probation officer at 207 cases. In F.Y. 1994, a total of $46,879,000 in fees, fmes and other monies were collected. Of this amount $9,102,000 was returned to the state treasury, $28,834,000 to counties, $204,000 to child support, and $8,739,000 to victims' restitution. Additionally, 2,300,000 hours of community services were provided by probationers, with an estimated value to the communities of $11,500,000. OFFENDER MANAGEMENT SYSTEM (OMS) The Offender Management System is a total institutional management system developed by the Department of Corrections and is unique in the field of corrections. It provides a comprehensive system for managing the activities of inmates for all kinds of activities. When fully implemented it will impact every area of the day-to-day operations and provide for: The more efficient and effective use of all resources, including staff, time space and offenders. Enhanced safety and security by reducing inmate idleness by as much as 80 percent, with the capability to effectively schedule all inmate activity. Improved staff accountability and productivity. 107 Increased inmate accountability. The capability logistically to access the entire offender population with program services without disrupting daily operations. An integral part of the OMS is the management software component which supports the overall management system. !tis a highly adaptable integrated software application that assists in the provision of information and scheduling necessary to operations of the system. The development of the Offender Management System began three and one-half years ago, followed by its introduction at pilot sites about six months later. Responding to the needs of the Department's facilities, OMS has continued to evolve and is currently in various stages of implementation at 40 prisons and community corrections facilities. As the charts indicate institutions with OMS implemented show a dramatic increase in the participation of inmates in all programs. For example, at Phillips Correctional Institution, a 57 percent increase in work details, a 61 percent increase in the counseling Phillips Correctional Institute Number of Inmates o Work Details Library limI Apri11994 Recreation Counseling Vocation Education Sept. 1992 (Pre OMS) program, a 213 percent increase in use of educational programs, and a 45 percent increase in library use were experienced after OMS was installed. Comparable results were seen at Ware Correctional Institution. ELECTRONIC MONITORING Ware Correctional Institute Work DetaIls UbnIry_- Voa6lnaI Tralntlg EclJcaUQn o 100 200 Dec. 1993 Totals 300 400 500 mID Sept. 1992 Totals 600 The Board of Pardons and Paroles formally implemented the electronic monitoring pilot program on November 1, 1991. A total of eight supervision district offices were included in this program. On May 1, 1992 an additional eight supervision district offices were brought into the program. The pilot program was in operation for approximately 18 months, concluding in April 1993. During this period, the Parole Board continuously evaluated its worth. The research and evaluation data revealed that this program, accompanied by ski11fu1 supervision, provided the Board with an effective tool for responding to parolee violations short of revocation and return to prison. Electronic monitoring enables the Board to implement an intrusive sanction that allows for the surveillance of parolees up to 24 hours per day. This program represents the Parole Board's fmal sanction short of revocation. It is designed for those parolees who continuously and wi1lfu11y violate the 108 conditions of parole. Electronic The State Board of Pardons and accessible to all users and will provide the monitoring brings added structure and Paroles and the Department of security data. Development of ORMS stability to the lives of many parolees. Corrections are in the process of jointly will allow managers accurate data This structure can provide a catalyst for developing an "Offender Records concerning workflow in all areas of the positive change and ensures compliance Management System" (ORMS). By the consideration process. with the conditions of parole, thereby end of F.Y. 1995, the Georgia ORMS will be developed in three encouraging law-abiding behavior. Department of Corrections' inmate phases. Phase I will transform the inmate The Parole Board implemented the capacity will be 34,305. The Parole folder from paper to electronic records. It electronic monitoring program on a Board can no longer maintain paper mes will integrate the Parole Board and statewide basis during September 1993. with an inmate population of this size and Corrections' hard copy mes with Offender Currently, the program covers 50 has far exceeded capacity for storage. Tracking Information System records to supervising district offices. The Parole Developing an Offender Records provide whole me access capability via Board has access to 100 electronic Management System will not only computer work stations. A review monitoring units. This equates to only alleviate space problems, but will alleviate committee has been formed to thoroughly two units per office. consider all The Governor proposes that for F.Y. 1996 the number of Decreased Paroles, Stable Prison Admissions, And An Increased Prison Population Mean paperwork and procedures involved in an inmate me and electronic monitoring Inmates Are Staying In Prison Longer how these functions units be increased can be automated from one hundred and paperwork units to two hundred reduced. Phase II units. This will allow will be the parole officers across integration of the the field to double the parole field offices current usage rate. with ORMS. Phase The Parole III will be analyzing Board's long range goal for the electronic FY 92 - ,::::::.:.:.....:........ . new software applications and monitoring programs technologies for is two-fold. The fIrst possible insertion is to upgrade the into ORMS. current units to one that includes a FY 94 - ,::::::.:.:.....:........ . SUBSTANCE intoximeter. This upgrade allows for the o 5,000 10,000 15,000 20,000 25,000 30,000 ABUSE COUNSELING parolees to be tested for alcohol consumption. This Prison Population Prison Admissions PROGRAM Since 1991 the testing can be Parole Board Releases Parole Board's completed at any time unique Substance in the parolee's Abuse Counseling residence without any Program (SACP) has assistance from parole employed officers. The results professional of the test are then addiction counselors electronically sent to the monitoring problems associated with the need for to move parolees toward the goal of life- center and forwarded to the Parole office. multiple site access and the need for long recovery from alcohol and other The second part of this long, range goal is certain staff to be closely located for drug abuse. This is accomplished through to have these upgraded electronic access to paper meso ORMS will reduce individualized cognitive-behavioral monitoring units available to parole the dependence on hard copies, reduce change planning and, in conjunction with officers on an as-needed basis. This will duplicate records by creating a single parole officer supervision, diverse service contribute greatly to the overall repository for inmate information, and delivery that promotes the development of effectiveness of supervision. reduce loss of productivity locating paper pro-social beliefs, values and behaviors. files and manual reviews. ORMS will The primary component of the SACP is a increase the integrity of the records statewide network of outpatient RECORDS MANAGEMENT maintained on inmates by ensuring that counselors, but also included SYSTEM accurate and complete records are administratively are the therapeutic 109 community parole center programs at Homerville and Hays correctional facilities. Currently, the SACP consists of 34 senior substance abuse counselors who work in some of the 52+ district parole offices and sub-offices providing assessment and outpatient counseling services, along with four clinical supervisors who ensure that professional development and quality assurance standards are being met. Another important link in the SACP is the parole center liaison who works with field services division staff to monitor parolee pro gress in the Homerville therapeutic community program, certify when a resident has completed the program, and facilitate effective aftercare placement or services for each program graduate. In 1994, the Board adopted a set of philosophical principles and operational standards to direct the SACP. These standards, based on the last 25 years of research and practice by human services and correctional professionals, employ program effectiveness principles which have demonstrated empirical validity. With the advent of the SACP standards, counseling is now more available than ever to parolees with approximately 25 percent of the total population being served. In times of shrinking community resources, especially those capable of handling the special issues of criminal conduct, the SACP is a significant bridge over the recidivism crevasse. To further accomplish the supervIsIon of rehabilitation goals of the Board, the SACP seeks to expand in the following ways: In the long run, the Board plans to seek additional positions so that each district parole office houses at least one senior substance abuse counselor who specializes in conducting assessments and formulating counseling plans and at least one human services provider who specializes in individual and group counseling with drug-abusing offenders. Secondly, additional clinical supervisors will be needed to adequately ensure that quality services are being provided and to maximize the professional development of each clinical staff member. With these provisions, the SACP will provide assessments and intervention plans for the 60-70 percent of the parolee population who abuse drugs; identify and treat the high-risk, recidivistic drugabusing offenders in each parole district in the state; and provide a continuum of incommunity, high-quality and specialized services. SPECIALIZATION (CLASSIFICATION/CASE MANAGEMENT) On February 1, 1994, the Board of Pardons and Paroles implemented a new system for parolee classification and case management Parolees are now classified into one of three levels of supervision based on a formal, instrument-based assessment of the risk they present to the community. The higher their risk, the higher their level of supervision. On October 1, 1994, formal case plalllling began. The adoption of case plalllling will complete the statewide implementation of the new supervision case management model. This system of supervision enables the Board to allocate its field staff in a more rational and efficient fashion, and to ensure that those parolees who represent a clear risk to public safety receive the greatest amount of supervision. Depending on the district in question, parole officer caseloads may be as high as 70-80, although in other districts they are lower. Certain groupings of parolees require more intensive supervision due to the special needs or problems they exhibit or the heightened risk they present. Plalllling is underway to expand the Board's already existing program for specialized parole supervision from 21 districts to all 50 supervision districts across the state. Three parolee groupings will be targeted, including boot camp parolees, sex offenders and parolees with drug and alcohol problems. These specialized caseloads will be maintained at 20 to 30 parolees to ensure that they receive intensive supervision. Specialization will be carried further through the creation of program specialists. Parole officers functioning as program specialists will service one or more districts by delivering a cognitive skills training program for parolees, parolee orientation programs, and a volunteer-mentoring program. These progranlillatic initiatives, as well as classification/case management and specialization, form the core of the Board's comprehensive strategy for reducing parolee recidivism and enhancing the effectiveness of supervision. - 110 DEPARTMENT OF CORRECTIONS Total Budgeted Positions as of October 1, 1994 -- 14,474. Board of Corrections Correctional Industries 198 I Conmissioner 20 Attached for Administrative ~----------P-urp-os-es-O-nl-y -------- I Community Corrections Associate Conmissioner 2,767 - Administration - Probation Facilities - Probation Field Operations Chief of Staff 161 - Conmissioner Awareness/ Victim Affairs - Executive Support Services - Inmate Construction - Internal Investigations - Legal Services - Legislative Services - Medical Services - Olympic Liaison - Public Information - Quality Improvement - Special Services - Strategic Management I Offender Services Deputy Conmissioner 95 - Chaplaincy Services - Counseling/Substance Abuse - Education Services - Library Services - Mental Health Services - Offender Employability and Transitional Services - Offender Management System - Volunteer Services I Business and Support Services Deputy Conmissioner 314 - Accounting/Payroll - Asset Management - Business Practices - Budget - Care and Custody - Contracts/Leases/Grants - Engineering and Maintenance - Food and Fare Services - Governmental Regulations - Management and Administration Support - Teleconmunications I Institution Operations Associate Conmissioner 11,008 - Administration - Field Operation - Women's Services I Human Resources Deputy Conmissioner 109 - Employee Support Programs - Management Organization Development - Personnel - Training and Employee Development 111 DEPARTMENT OF DEFENSE Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts . Computer Charges Telecommunications Capital Outlay Repairs and Renovations Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds ........ Other Funds N Governor's Emergency Fund Total Federa1 and Other Funds STATE FUNDS POSmONS MOTOR VEHICLES 6,999,806 4,570,980 28,744 32,847 82,430 565,658 5,423 56,344 12,342,232 8,532,360 224,613 8,756,973 3,585,259 215 13 7,923,912 7,159,453 28,992 13,646 314,127 45,732 534,256 144,041 525,305 517,843 17,207,307 12,870,259 333,092 13,203,351 4,003,956 268 14 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 7,084,802 4,724,530 22,550 24,000 10,000 547,400 11,000 41,845 9,290,654 6,314,236 30,000 27,000 31,000 24,400 456,000 13,977 40,825 12,466,127 16,228,092 17,772 978,000 1,750,000 5,835,495 8,581,267 8,937,291 6,306,036 26,600 27,000 29,000 24,400 456,000 11,977 40,625 15,858,929 8,937,291 6,306,036 26,600 27,000 29,000 24,400 456,000 11,977 40,625 15,858,929 8,378,162 11,473,251 254,612 1,295,329 11,473,251 254,612 11,473,251 254,612 8,378,162 4,087,965 270 14 11,727,863 4,500,229 272 14 1,295,329 7,285,938 1 11,727,863 4,131,066 272 14 11,727,863 4,131,066 272 14 DEPARTMENT OF DEFENSE F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 4,087,965 CONTINUATION REDUCTIONS 1. Provides for other continuation decreases. (The Department requested increases of $176,405.) (74,338) TOTAL REDUCTIONS (74,338) CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. (The Department requested $94,861 which included the above along with $50,498 for military allowances. ) 44,363 2. Provides increases in operating expenses for 73 armories and maintenance facilities. (The Department also requested in addition to the above, $3,573,625 for deferred maintenance and repair projects at the 73 armories and maintenance facilities.) 73,076 TOTAL ADDITIONS NET CHANGES TOTAL STATE FUNDS 117,439 43,101 4,131,066 113 DEPARTMENT OF DEFENSE Functional Budget Summary F.Y. 1995 APPROPRIATIONS F.Y.1996 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Office of the Adjutant General 1,361,592 1,237,315 1,498,109 1,364,505 2. Air National Guard 4,604,969 533,129 5,252,239 506,056 3. Army National Guard 6,499,566 2,317,521 9,108,581 2,260,505 TOTAL APPROPRIATIONS 12,466,127 4,087,965 15,858,929 4,131,066 RECOMMENDED APPROPRIATION: The Department of Defense is the budget unit for which the following State Fund Appropriation is recommended: $4,131,066. 114 DEPARTMENT OF DEFENSE Roles and Responsibilities The Department of Defense serves the nation and Georgia by organizing and maintaining National Guard forces which the President can call to active duty to augment the nation's regular armed services, or which the Governor can order deployed in instances of disaster, riot, violence or other dangers threatening the state and its citizens. The Department achieves these objectives through its three components: Office of the Adjutant General, Air National Guard and the Army National Guard. Using these three components, the Department operates and manages approximately 800 training centers, armories, maintenance and logistics facilities statewide. GEORGIA Am NATIONAL GUARD The role of the Georgia Air National Guard is to provide fully equipped, fully qualified combat ready units which are prepared to respond to state or national emergencies. The activation/deactivation, organization, administration, training, equipping and housing ofits units as well as the evaluation of its wartime capability are mandated responsibilities. GEORGIA ARMY NATIONAL GUARD The Georgia Army National Guard is assigned with sustaining a level of operational readiness in order to respond immediately and effectively to state or national emergencies, civil disturbances and natural disasters. It is mandated with providing for all aspects of administration and organization of its military units as prescribed by the federal government. OFFICE OF THE ADJUTANT GENERAL The role ofthe Office ofthe Adjutant General (OTAG) is to provide overall command and control of the entire organization with a staffofprofessionals that provides administrative support to the Department and its head officer, the Adjutant General. The Adjutant General is also the state's director of the Selective Service System. AUTHORITY Title 38, Official Code of Georgia Annotated us DEPARTMENT OF DEFENSE Programs and Services The Georgia Department of Defense administers its programs and services through the Air and Army National Guards. These activities range from training high school dropouts to protecting local communities and the state in times of emergency or natural disaster. Some of the Department's programs and services are described below. YOum CHALLENGE PROGRAM The Georgia Department of Defense (with funds from the National Guard Bureau) began its Youth Challenge Program in F.Y. 1994. This is a program designed to give high school dropouts, between 16 and 18 years of age, a chance to earn a GED and to gain the necessary life skills in order to seek employment or to continue their education. Graduates earn $2,500 toward future goals. DISASTER ASSISTANCE projects recently, the 1993 major snow storm and July 1994 flood. The National Guard can provide immediate manpower and equipment to assist in emergency operations on any level. COUNTER DRUG OPERATIONS The National Guard is heavily involved in educating the youth of Georgia about the hazards of drug use. Support is also provided to law enforcement agencies throughout the state in locating and seizures of illegal drug operations. OLYMPIC SECURITY The services of the National Guard will be heavily relied upon during the 1996 Olympics for security purposes. CIVIC ACTIONS FOR LOCAL COMMUNITIES communities with projects ranging from ballfield lights--lake dredging-- to school site preparation. MILITARY SUPPORT The National Guard furnishes support on the federal level when necessary such as on recent missions to Rwanda, Bosnia, Somalia and the Persian Gulf. The National Guard has been Engineering units within the National involved in two major disaster recovery Guard are actively involved in supporting 116 DEPARTMENT OF DEFENSE Total Budgeted Positions as of October 1, 1994 -- 272. Office of the Adjutant General State Selective Service 6 Public Affairs Office* Administrative I----------~---------_I Servi ces Divi si on* 4 12 - Prepares information materials for electronic and print media for internal and external publics - Serves as official spokesman for the Department - Prepares and executes information programs designed to produce better understanding of the Department - Manages all disbursements of State funds for payroll, procurement services and all other expenditures - Prepares financial/management program and maintains all State accounting records for the Department - Manages the State civilian personnel program I Georgia Army National Guard 158 I Georgia Air National Guard 92 - Administers Georgia's Army and Air National Guard as prescribed by the Federal Government - Provides a trained ready reserve force, organized and equipped as directed by the U.S. Department of Defense, capable of participating on short notice in military operations with the active forces of the United States - Provides direction and supervision of about 1,700 full-time Federal employees who support National Guard activities - Administers continuous recruiting and retention programs and other personnel actions in support of about 14,000 members of the Georgia National Guard - Operates and maintains 73 armories and 5 bases for flying activities and various other maintenance and logistical support facilities throughout the State - Operates Youth Challenge Program for at-risk youth * Activities budgeted through Office of the Adjutant General 117 STATE BOARD OF EDUCATION RECOMl\1ENDED STATE APPROPRIATIONS FORF.Y. 1996 INCREASE OVER F.Y. 1995 BUDGET CONTINUATION FUNDS IMPROVEMENT FUNDS $3,725,736,179 $194,397,858 $3,592,685,107 $133,051,072 HIGHLIGHTS $147 million to provide a 6 percent pay raise to the teachers in the state. Recommended salary increase funds for teachers are listed elsewhere in this Budget Report and are not reflected in the State fund totals for any department. $4,912,751 to fund a 5 percent pay raise for Department of Education staff, including lunchroom workers and bus drivers. Recommended salary increase funds for Department of Education employees are listed elsewhere in the Budget Report and are not reflected in the State fund totals for any department. $3.5 million to provide additional funds for the second year of a summer school program for at-risk students in grades 4-8. $4 million in continuation funds are also recommended, to bring the total recommendation to $7.5 million. These funds will provide classes in math, language arts, science and social studies for students across the state. $16,152,790 to establish and support technology training. $14,979,790 will provide a technology specialist at each school site, with at least one full-time equivalent specialist in each school system. The specialist will be released from traditional assignments (two periods per day for elementary schools, and three periods per day for middle and high schools) to help teachers use classroom technology. The remaining $1,173,000 will fund one week of training for the technology specialist from each of the schools in the state. $12,799,645 to provide counselors for students in grades K-3 at a ratio of 1 counselor per 624 FTEs, with a minimum of one per school system. $6,662,259 is recommended to continue the counselors for grades 4-5, for a total recommended appropriation of $19,461 ,904. $3.4 million to provide funds for Pay for Performance Awards at a rate of $2,000 per certified staffmember for all qualifying schools. $2,350,000 to provide funds for 30 new Youth Apprenticeship Programs across the state and for 50 additional sites to receive planning grants of $5,000 each. The existing sites will use an additional $2 million to continue apprenticeship activities begun in F. Y. 1995. $12,376,442 to provide funds to continue and expand the Crossroads alternative school program for chronically disruptive students in local school systems. $2 million to provide funds for systems to develop and implement a Mentoring Program for middle school students. $125,455,000 in bonds to fund capital outlay projects for 56 local school systems. $11 ,040,000 in bonds to construct 11 public libraries in Bulloch, Cherokee, Clayton, Habersham, Laurens, Mitchell, Oconee (two projects), Randolph, Talbot, and Washington counties. $75,950 to provide funds to increase the supplement for system food service managers from $350 to $400 per year. $50,000 to provide planning grants for Charter Schools. Ten of these grants, at $5,000 each, will be awarded to systems seeking to establish a charter school. RECOMMENDED APPROPRIATIONS AS A PERCENTAGE OF THE BUDGET 34.8% $157,646,245 in lottery proceeds to provide funding to continue and expand the voluntary PreKindergarten Program for 4year olds and their families to every county in the state and to increase the number of children and families being served in F. Y. 1996. $8 million in lottery proceeds to provide Special Needs Capital Outlay funds for the PreKindergarten Program. $500,000 in general funds and $500,000 in lottery proceeds to provide matching funds for the Next Generation Schools Project. $1 million in lottery proceeds to provide funds for an additional Leaming Logic site in each congressional district. $1.2 million in lottery proceeds to provide tuition funds for the Postsecondary Options program. 118 STATE BOARD OF EDUCATION Budget Gasses/Fund Sources I PRIOR YEARS F.Y. 1993 : F.Y. 1994 EXPENDITIJRES EXPENDITIJRES F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY AGENCY REQUESTS F. Y. 1996 GOVERNOR'S RECOMMENDATIONS I F.Y. 1996 F.Y. 1996 I I CONTINUATION IMPROVEMENTS CONTINUATION IMPROVEMENTS TOTALS GENERAL FUNDS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Computer Charges Real Estate Rentals Telecommunications Per Diem, Fees and Contracts Utilities Capital Outlay Department of Education Downsizing QBE Formula Grants: Kindergarten/Grades 1-3 ...... Grades 4-8 Grades 9-12 IC High School Laboratories Vocational Education Labs Special Education Gifted Remedial Education Staff & Professional Dev. Media Indirect Cost Pupil Transportation Local Fair Share Central Office Administration Other Categorical Grants: Equalization Formula Sparsity Grants In-School Suspension Special Instructional Assistance (SIA) Middle School Incentive Special Education Low- Incidence Grants English to Speakers of Other Languages (ESOL) 35,995,643 3,664,642 903,440 242,744 7,924,193 2,153,451 967,553 12,734,578 769,807 53,600 751,461,519 700,793,074 299,625,646 107,088,791 99,674,648 259,710,473 35,763,301 57,541,020 20,748,780 85,311,350 583,201,228 125,212,107 (593,395,462) 153,097,318 3,452,877 20,515,623 42,162,178 49,852,255 415,326 6,009,348 36,706,385 4,854,287 968,640 113,896 222,204 17,757,659 1,464,280 1,077,242 14,221,636 861,522 38,658 39,065,117 4,054,586 1,186,316 138,000 381,756 12,622,435 1,495,141 1,258,862 17,301,762 764,752 25,000 40,185,877 6,700,696 1,373,847 161,000 499,479 7,202,768 1,514,966 1,536,246 17,702,979 1,023,166 759,921,314 721,385,180 297,422,530 124,988,870 102,574,758 278,830,860 40,026,562 59,244,823 28,987,901 87,721,767 600,119,184 126,831,106 (614,111,575) 775,391,628 735,657,774 286,005,522 151,108,426 104,603,623 299,194,977 43,433,599 65,783,964 29,835,699 89,791,383 615,158,563 130,609,130 (635,320,498) 821,638,106 785,623,721 287,946,795 191,056,908 111,240,116 332,274,578 49,459,131 75,620,665 32,413,513 95,655,125 645,192,071 139,398,317 (658,378,043) 144,854,014 2,966,091 20,901,157 51,051,591 56,908,600 411,712 7,452,253 149,778,370 3,609,604 20,872,296 57,066,117 61,396,016 416,000 8,601,007 157,268,477 3,609,604 21,936,036 67,020,406 74,967,355 416,000 10,710,171 453,967 1,062,320 18,000 9,729 36,009,058 5,009 12,800 3,549,110 882,000 450,000 550,000 39,376,934 5,618,477 1,146,504 161,000 346,576 7,399,589 1,514,966 1,306,555 16,172,979 962,818 (2,000,000) 831,655,358 784,104,855 296,267,331 180,765,770 111,308,035 330,833,965 48,974,895 73,557,727 32,094,107 95,995,346 563,005,553 137,656,763 (658,824,689) 42,011,412 160,621,962 3,609,604 22,028,857 68,775,971 67,230,336 416,000 10,702,989 50,000 39,376,934 5,618,477 1,146,504 161,000 346,576 7,399,589 1,514,966 1,306,555 16,222,979 962,818 (2,000,000) 831,655,358 784,104,855 296,267,331 180,765,770 111,308,035 330,833,965 48,974,895 73,557,727 32,094,107 95,995,346 563,005,553 137,656,763 (658,824,689) 42,011,412 160,621,962 3,609,604 22,028,857 68,775,971 67,230,336 416,000 10,702,989 STATE BOARD OF EDUCATION Budget Classes/Fund Sources Mentor Teachers Non-QBE Grants: Education of Children of LowIncome Families (Federal) Even Start (Federal) Retirement (H.B. 272 and H.B. 1321) Instructional Services for Handicapped (Federal) Tuition for the Multi- Handicapped Severely Emotionally Disturbed (SED) School Lunch (Federal) School Lunch (State) Supervision/Assessment of Students and Beginning ~ Teachers (SASBT) = Regional Education Service Agencies (RESAs) Georgia Learning Resources System (GLRS) High School Program Special Education/State Institutions Governor's Scholarships Serve America Job Training and Partnership Act (JTPA) Vocational Research and Curriculum Salaries and Travel of Public Librarians Public Library Materials Talking Book Centers Public Library Maintenance and Operation Child Care Lunch Program (Federal) Chapter II/Block Grant Flow Through (Federal) I PRIOR YEARS F.Y. 1993 : F.Y. 1994 EXPENDITURES EXPENDITURES 703,740 999,940 198,714,081 186,023,794 1,375,167 4,600,914 2,720,906 4,950,000 51,519,023 54,732,103 1,529,877 1,065,438 37,034,242 38,965,519 165,074,766 23,265,716 2,003,500 187,111,477 24,213,192 2,032,955 6,944,268 3,190,797 25,063,945 3,818,413 2,378,647 356,345 2,959,584 258,213 10,762,697 3,652,606 871,713 3,764,428 22,467,116 10,019,306 7,072,130 3,397,226 28,379,568 3,673,574 2,702,000 382,597 293,213 11,183,401 4,232,790 911,019 4,039,390 24,569,967 9,663,513 F.Y.1995 CURRENT BUDGET 1,250,000 198,714,081 1,422,160 4,950,000 51,519,023 1,841,080 37,229,829 165,074,766 24,758,747 1,500,000 7,001,200 3,300,462 25,605,564 3,991,103 2,972,200 356,000 293,213 10,760,927 5,151,409 934,522 4,039,395 37,880,233 10,019,305 FINANCIAL SUMMARY AGENCY REQUESTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I F.Y. 1996 F.Y. 1996 I I CONTINUATION IMPROVEMENTS CONTINUATION IMPROVEMENTS TOTALS 1,500,000 1,500,000 1,500,000 143,999,894 143,999,894 143,999,894 2,720,906 5,173,750 2,720,906 5,173,750 2,720,906 5,173,750 54,732,103 54,732,103 54,732,103 1,896,312 1,896,312 1,896,312 41,348,816 41,348,816 41,348,816 188,375,722 26,723,035 2,013,950 75,950 188,375,722 26,723,035 2,013,950 75,950 188,375,722 26,798,985 2,013,950 7,593,567 3,579,177 24,699,072 4,991,486 3,061,366 382,597 2,246,789 7,547,838 7,593,567 3,579,177 18,207,101 4,991,486 2,972,200 382,597 7,593,567 3,579,177 18,207,101 4,991,486 2,972,200 382,597 293,520 11,985,472 4,233,796 992,239 4,039,395 25,244,070 9,663,513 101,025 462,793 81,088 432,793 293,520 11,345,284 4,233,796 992,239 5,524,741 25,244,070 9,663,513 293,520 11,345,284 4,233,796 992,239 5,524,741 25,244,070 9,663,513 STATE BOARD OF EDUCATION Budget Oasses/Fund Sources Payment of Federal Funds to Department of Technical and Adult Education Innovative Programs Technology Grants Drug-Free Schools (Federal) Transition Program/Refugee Children (Federal) Emergency Immigrant Education Program (Fed.) Title II Math-Science Grant (Federal) R. C. Byrd Scholarship (Federal) Nutrition Education Training (Federal) Health Insurance for Non- .... Certificated Personnel ....N and Retired Teachers Pre-School Handicapped Teacher Salary Schedule Adjustment Capital Outlay-Local Schools Public Library Construction Pre-Kindergarten Program Textbooks - Seven-Year Cycle Textbooks - For Increased FTEs Increase Art, Music and PE Specialist Ratio At Risk Summer School Program Grades K- 5 Counselors Advanced Placement (AP) Exams Education of Homeless ChildrenlYouth (Federal) Next Generation Schools Youth Apprenticeship Program Family Connection I PRIOR YEARS F.Y. 1993 : F.Y. 1994 EXPENDITURES EXPENDITURES 13,311,011 14,380,742 2,348,634 375,000 12,505,817 1,524,035 11,625,943 228,503 4,570,112 253,000 57,032 67,167,892 164,514 5,162,005 273,723 90,047,892 11,525,052 14,112,004 411,994 2,593,489 (36,919,947) 3,526,005 920,000 186,752 1,056,649 601,772 2,945,001 280,272 1,982,199 F.Y. 1995 CURRENT BUDGET 17,093,803 2,349,999 12,505,800 312,864 4,806,083 513,000 169,893 99,047,892 14,602,242 116,776,474 3,691,270 6,448,277 1,100,400 540,250 500,000 2,000,000 2,575,000 FINANCIAL SUMMARY AGENCY REQUESTS F. Y. 1996 GOVERNOR'S RECOMMENDATIONS I F.Y. 1996 F.Y. 1996 I I CONTINUATION IMPROVEMENTS CONTINUATION IMPROVEMENTS TOTALS 14,395,919 14,395,919 14,395,919 1,690,215 11,625,943 6,290,507 1,690,215 11,625,943 1,690,215 11,625,943 164,514 5,042,895 273,723 164,514 5,042,895 273,723 164,514 5,042,895 273,723 99,047,892 17,925,149 171,500,000 241,937,056 15,224,899 99,047,892 99,047,892 15,945,728 See Pay Raise Package 15,945,728 13,993,147 7,682,776 1,842,422 601,772 2,443,700 4,000,000 2,907,199 17,460,767 3,500,000 3,750,000 4,000,000 6,662,259 1,842,422 601,772 2,443,700 2,000,000 SeeD.H.R. 3,500,000 12,799,645 2,350,000 7,500,000 19,461,904 1,842,422 601,772 2,443,700 4,350,000 STATE BOARD OF EDUCATION Budget Gasses/Fund Sources Pay for Perfonnance Instructional Technology Plan Remedial Summer School Superintendent's Base Salary Alternative Programs Environmental Science Education Grants Student Mentoring Program QBE Responsibility Supplement Textbook Entitlement Library Federal Grants - LSCA Education Technology Centers QBE - Midtenn Adjustment QBE - Audit Adjustment Salary Increases I PRIOR YEARS F.Y. 1993 : F.Y. 1994 EXPENDITURES EXPENDITURES 915,613 62,734,041 (1,114,213) 1,485,346 68,563,220 (86,214) F.Y.1995 CURRENT BUDGET 1,650,000 1,876,182 1,130,820 7,500,000 100,000 FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS 5,788,000 1,951,229 1,193,433 7,500,000 400,000 31,788,650 7,500,000 F. Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 3,400,000 3,400,000 16,152,790 16,152,790 1,951,229 1,951,229 In Central Office Admin. 7,500,000 4,876,442 12,376,442 150,000 150,000 7,250,758 2,000,000 2,000,000 1,485,346 12,500,000 7,050,000 12,666,043 See Pay Raise Package ... SUBTOTAL GENERAL FUNDS: N N STATE LOTTERY FUNDS: Voluntary Pre-Kindergarten For 4-Year-Olds Special Needs Pre-Kindergarten Capital Outlay Computers in Classrooms Educational Technology Centers Next Generation School Projects Satellite Dishes Postsecondary Options Alternative Programs Drug and Anti-Violence Education Safe Schools Grant Media Ctr & Library Equipment Model Technology Schools Learning Logic Sites Algebra Classrooms Applied Technology Labs Assistive Tech. for Handicapped 3,601,575,942 3,794,209,922 3,969,142,395 4,074,387,961 35,565,485 80,000,000 80,000,000 612,150,096 60,000,000 32,889,196 1,236,400 1,000,000 14,111,078 545,855 1,025,000 20,000,000 37,450,000 924,000 752,700 900,000 500,000 2,300,000 8,500,000 1,000,000 7,800,000 6,300,000 900,000 755,330 2,300,000 8,500,000 1,000,000 7,800,000 6,300,000 86,224,170 3,000,000 8,500,000 5,000,000 4,550,000 7,300,000 2,508,000 4,013,644,535 80,000,000 See Regents See Regents 500,000 See Regents 45,204,827 4,058,849,362 77,646,245 8,000,000 157,646,245 8,000,000 1,200,000 500,000 1,200,000 1,000,000 1,000,000 STATE BOARD OF EDUCATION Budget Oasses/Fund Sources Calculators tor Math Classes SUBTOTAL LOTTERY FUNDS: PRIOR YEARS F.Y. 1993.1 F.Y. 1994 EXPENDITURES EXPENDITURES 145,499,714 F.Y.1995 CURRENT BUDGET 107,300,000 FINANCIAL SUMMARY I I I AGENCY REQUESTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROV1E,2M28E,N85T0S CONTINUATION IMPROVEMENTS TOTALS 107,555,330 178,311,020 80,500,000 87,846,245 168,346,245 Total Expenditures/Appropriations 3,601,575,942 3,939,709,636 4,076,442,395 4,181,943,291 790,461,116 4,094,144,535 133,051,072 4,227,195,607 Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds 522,228,567 8,977,386 340,000 537,529,544 22,412,945 340,000 543,432,033 1,332,041 340,000 497,551,236 4,565,391 2,321,718 496,894,037 4,225,391 340,000 496,894,037 4,225,391 340,000 Total Federal and Other Funds STATE GENERAL FUNDS LOTTERY PROCEEDS TOTAL STATE FUNDS POSITIONS -MOTOR VEHICLES N IN 531,545,953 3,070,029,989 3,070,029,989 956 55 560,282,489 3,233,927,433 145,499,714 3,379,427,147 948 55 545,104,074 3,424,038,321 107,300,000 3,531,338,321 954 55 502,116,627 3,572,271,334 107,555,330 3,679,826,664 950 55 2,321,718 609,828,378 178,311,020 788,139,398 5 501,459,428 3,512,185,107 80,500,000 3,592,685,107 906 55 45,204,827 87,846,245 133,051,072 10 501,459,428 3,557,389,934 168,346,245 3,725,736,179 916 55 STATE BOARD OF EDUCATION UNIT FINANCIAL SUMMARY Unit B - Lottery Programs PRIOR YEARS F.Y. 1993 ;1 F.Y. 1994 EXPENDITURES EXPENDITIJRES F.Y.1995 CURRENT BUDGET AGENCY REQUESTS F.Y. 1996 1 F.Y. 1996 CONTINUATIO IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Expenditures/Appropriations By Objects: Voluntary Pre-Kindergarten For 4-Year-Olds Special Needs Pre-Kindergarten Capital Outlay Classroom Computers Educational Technology Centers Next Generation School Projects Satellite Dishes Postsecondary Options Alternative Schools Technology Drug & Anti-Violence Education Safe Schools Grant Media Center and Library Equipment Model Technology Schools Leamiug Logic Sites :::: Algebra Classrooms "" Applied Technology Labs Assistive Tech. for Handicapped Calculators for Math Classes 35,565,485 80,000,000 80,000,000 32,889,196 1,236,400 1,000,000 14,111,078 545,855 1,025,000 20,000,000 37,450,000 924,000 752700 900,000 500,000 2,300,000 8,500,000 1,000,000 900,000 755,330 2,300,000 8,500,000 1,000,000 7,800,000 7,800,000 6,300,000 6,300,000 60,000,000 80,000,000 86,224,170 3,000,000 See Regents See Regents 500,000 8,500,000 5,000,000 4,550,000 See Regents 7,300,000 2,508,000 1,228,850 77,646,245 157,646,245 8,000,000 8,000,000 1,200,000 0 500,000 1,200,000 0 1,000,000 1,000,000 LOTTERY PROCEEDS 145,499,714 107,300,000 107,555,330 178,311 ,020 80,500,000 87,846,245 168,346,245 QUALITY BASIC EDUCAliON FUNDING COMPARISON Program Area DIRECT INSTRUCTIONAL Kindergarten, Primary and Elementary Grades (1-3) Middle Grades (4-8) High School Grades (9-12) High School Non-Vocational Labs (9-12) High School Vocational Labs (9-12) Special Education Gifted Remedial Education TOTAL DIRECT INSTRUCTIONAL STAFF AND PROFESSIONAL DEVELOPMENT MEDIA CENTER INDIRECT COST TOTAL aBE FORMULA EARNINGS OTHER CATEGORICAL GRANTS Pupil Transportation Sparsityllsolated Schools Equalization Middle School Incentive English to Speakers of Other Languages (ESOL) Low-Incidence Special Education Special Instructional Assistance (SIA) In-School Suspension Innovative Programs Central Office Salaries for Superintendents, Accountants, Secretaries TOTAL aBE FUNDS LOCAL FAIR SHARE Expenditures Appropriations Recommendations F. Y. 1994 F.Y. 1995* F.Y. 1996** 759,921,314 721,385,180 297,422,530 124,988,870 102,574,758 278,830,860 40,026,562 59,244,823 2,384,394,897 28,978,901 87,721,767 600,119,184 3,101,214,749 800,183,642 764,882,110 297,405,987 157,120,167 108,414,205 309,228,077 45,180,921 67,899,853 2,550,314,962 30,480,582 92,728,016 625,083,559 3,298,607,119 831,655,358 784,104,855 296,267,331 180,765,770 111,308,035 330,833,965 48,974,895 73,557,727 2,657,467,936 32,094,107 95,995,346 563,005,553 3,348,562,942 126,831,106 2,966,091 144,854,014 56,908,600 7,452,253 411,712 51,051,591 20,901,157 333,820 134,604,297 3,609,604 149,779,504 63,428,740 9,027,195 416,000 59,164,341 21,887,659 500,000 137,656,763 3,609,604 160,621,962 67,230,336 10,702,989 416,000 68,775,971 22,028,857 500,000 42,011,412 3,512,925,093 3,741,024,459 3,862,116,836 (614,111,575) (635,320,498) (658,824,689) *Includes F.Y. 1995 Teacher Pay Increase of $116,776,474 **Does Not Include Teacher Pay Increase 125 FY 1996 QBE FORMULA RECOMMENDATION Base Amount = 1,650.22 Program Area Kindergarten Grades 1-3 Grades 4-5 Grades 6-8 Grades 9-12 High School Lab Vocational Lab Special Education I Special Education II Special Education III Special Education IV Gifted Remedial TOTAL DIRECT INSTRUCTION FTE 104,703 284,541 172,095 279,809 173,231 83,986 47,403 5,347 13,743 28,474 1,943 16,294 32687 1,244,256 Weight 1.341162 1.254662 1.019784 1.023795 1.000000 1.241343 1.359988 2.335165 2.707192 3.440939 5.555719 1.632130 1.310288 Weighted FTE 140,424 357,003 175,500 286,467 173,231 104,255 64,467 12,486 37,205 97,977 10,795 26,594 42829 1,529,233 Total FTE Earnings 231,729,761 589,132,444 289,612,922 472,733,072 285,868,975 172,044,185 106,385,438 20,604,835 61,396,270 161,683,949 17,813,716 43,885,780 70677 831 Direct Cost Proportion 0.7799 0.7655 0.7114 0.7316 0.7342 0.7433 0.7657 0.8417 0.8607 0.8868 0.9236 0.7803 0.7899 Direct Instructional Cost + T&E Training and Experience Adjustment 237,521,371 594,133,987 292,637,935 491,466,920 296,267,331 180,765,770 111,308,035 24,595,339 75,781,784 205,176,971 23,479,871 48,974,895 73557,727 2,523,569,176 2,655,667,936 Staff Development Professional Development Media Center (Including T&E) Indirect Cost (including T&E) - Includes Central Administration Operations, Special Education, and Psychologists, School Administration, Facility Maintenance and Operation 7,693,444 24,400,663 95,995,346 563005553 TOTAL aBE FORMULA EARNINGS 3,346,762,942 Plus: Pupil Transportation Sparsity/Isolated Schools Equalization Middle School Incentive English to Speakers of Other Languages (ESOL) Low-Incidence Special Education Itinerant/Supplemental Speech Special Instructional Assistance (SIA) In-School Suspension Innovative Programs Central Office Salaries for Superintendents, Accountants, Secretaries 137,656,763 3,609,604 160,621,962 67,230,336 10,702,989 416,000 1,800,000 68,775,971 22,028,857 500,000 42,011,412 TOTAL aBE EARNINGS 3,862,116,836 Less: Local Fair Share (1993 40% Equalized Tax Digest less exemption allowances X .005) (658 824 689) 126 STATE BOARD OF EDUCATION F.Y. 1996 Budget Summary F.Y. 1995 State Appropriations CONTINUATION REDUCTIONS GOVERNOR'S RECOMMENDATIONS 3,424,038,321 1. Vocational Education High School Program - Eliminate state funding for Extended Year activities, Projects, Short term Courses, Adult Agriculture, and Food Processing Programs and reduce funding for the Young Farmer Program. (4,212,416) 2. Education Information Network (GENESIS) - Recommend current continuation level for Education Information Network (GENESIS) and Student Information System (SIS) and reduced equipment funding. 3. To provide decreased funding for the base salary for local school superintendents ($1,228,175) and eliminate excess salary improvement funding ($537,516). 4. Family Connection - Transfer funding to the Department of Human Resources in order to maximize matching funds and technical assistance opportunities. 5. Pay for Performance - Recommend Improvement funds. 6. Grades 4 & 5 Counselors - Provide funding based on FTEs. 7. To downsize the state department office by approximately ten percent, including 42 positions. 8. To transfer Instructional Technology and Media Services, including 14 positions, operating funds, and technology center operations to Georgia Public Telecommunications Commission per Executive Order. TOTAL REDUCTIONS CONTINUATION ADDITIONS 1. Department Operations - Recommend increases in Personal Services, Contracts, Computer Charges, Equipment, Regular Operating Expenses, Travel, Telecommunications, Real Estate Rentals, Utilities, and decreases in Capital Outlay and Motor Vehicle Purchases. 2. State Schools for the Sensory Impaired - Provide additional operating funds and to reflect adjustments made in the F.Y. 1995 amended budget for additional security, medical, and utility expenses. (5,016,654) (1,765,691) (2,575,000) (1,650,000) (54,790) (2,000,000) (2,197,642) (19,472,193) 2,173,689 1,320,304 127 STATE BOARD OF EDUCATION GOVERNOR'S RECOMMENDATIONS 3. QBE Equalization Formula - Add state funds to local funds available per mill for each weighted FTE student to equalize the funding per mill per weighted student at the level of the 18th wealthiest system (90th percentile) for up to 3.25 mills levied beyond the Local Fair Share. Recommend funds based on 1993 local tax digests, F.Y. 1994 FTE counts, and updated revenue data. 4. Environmental Science Education - Provide increased funds. 10,842,458 50,000 5. Regional Educational Service Agencies (RESAs) - Recommend increased funding. 329,092 6. Special Education State Institutions - Recommend increased funding. 1,000,383 7. Georgia Learning Resources System (GLRS) - Recommend increased funds for grants. 74,408 8. Severely Emotionally Disturbed (SED) Grant - Recommend annualization of F.Y. 1995 salary adjustment and increased operations funds. 1,532,187 9. School Lunch Grants - Provide funds for current staff level and 2 days of sick leave for the current level of school lunch personnel. 1,032,336 10. QBE Pupil Transportation - Recommend increased funds for 100 additional stateoperated buses for a total of 8,305 state funded buses, 115 denied bus replacements and $475,675 for transportation costs required in the Savannah/Chatham County court settlement. 11. QBE Formula Grants - Provide funds for annualization of the QBE Formula Grants based on an estimated weighted full-time equivalent (PTE) base cost of $1,650.22, including Local Fair Share of $658,824,689 and Central Office reduction of $28,178,763. 3,052,466 68,403,028 12. Pre-School Handicapped - To provide services to eligible 3- and 4-year-olds, including transportation services, based on the most recent incidence rates and to maintain federal matching funds. 719,435 13. Special Instructional Assistance (SIA) - Provide increased funds to the SIA program for developmentally at-risk students in grades K, 1,2 and 3. 9,611,630 14. QBE English to Speakers of Other Languages (ESOL) - Increase funds to provide English language proficiency skills for eligible students. 1,675,794 15. QBE Middle Schools - Provide increased funds for 13% incentive grants to newly qualified schools implementing the middle grades program consistent with state criteria. 3,801,612 16. Mentor Teachers - Provide increased funding. 250,000 17. Provide funds for payment of Advanced Placement Exams/ Postsecondary Options in accordance with S.B. 417. 742,022 18. Public Library Services - Provide funds to increase Salary and Travel ($146,461) and Talking Book Centers ($57,717) based on latest population data. 204,178 128 STATE BOARD OF EDUCATION GOVERNOR'S RECOMMENDATIONS 19. To provide an adjustment to Health Insurance for Non-Certificated Personnel. 223,750 20. In-School Suspension - Provide increased funding. 141,198 21. Tuition for the Multihandicapped - Provide increased funding. 55,232 22. Remedial Summer School - Provide funds for summer school programs for students that fail the high school graduation test. 75,047 23. At-Risk Summer School- Provide funds for summer school programs for students who fail academic subjects or are retained in grades 4-8. 308,730 TOTAL ADDITIONS 107,618,979 NET CHANGES 88,146,786 TOTAL STATE FUNDS - CONTINUATION 3,512,185,107 IMPROVEMENTS 1. Provide funds for the second year of a summer school program for students who fail academic subjects or are retained in grades 4-8. 3,500,000 2. Provide funds to support teacher technology training including $14,979,790 to provide instructional technology specialists at each school based on two periods at elementary schools and three periods at middle and high schools with a minimum of one full time equivalent specialist at each school and $1,173,000 for specialists' release time. 16,152,790 3. Provide funds for counselors based on FIEs in grades K -3, with one counselor for each 624 FIEs, or a minimum of one per system. 12,799,645 4. Provide funds for Pay for Performance Awards (S.B. 488) at a rate of $2,000 per certified staff member for all qualifying schools. 5. Provide funds to begin 30 new Youth Apprenticeship Programs, provide 50 new planning grants, and continue statewide staff development, training, and curriculum development for the Youth Apprenticeship Program. 6. To provide funds to expand and support the Crossroads Alternative Program for disruptive students in local school systems. 3,400,000 2,350,000 4,876,442 7. Provide funds to begin a Mentoring Program for middle school students. 2,000,000 8. Provide funds for a 6% salary increase for certificated personnel and 5% for other state employees, including lunchroom workers and bus drivers. See Pay Raise Package 129 STATE BOARD OF EDUCATION GOVERNOR'S RECOMMENDATIONS 9. Public Library Capital Outlay - Provide $11,040,000 in G.O. bond funds to construct 11 public libraries for Bulloch, Cherokee, Clayton, Habersham, Laurens, Mitchell, Oconee, Randolph, Talbot, and Washington Counties. See G.O. Bonds 10. Capital Outlay- Provide $125,455,000 in G.O. bond funds for local school construction projects. 11. Provide funds to increase the supplement for food service managers from $350 per year to $400 per year. 12. Provide Charter School planning grants of up to $5,000 to ten schools. See G. O. Bonds 75,950 50,000 TOTAL IMPROVEMENTS 45,204,827 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 3,557,389,934 LOTTERY PROGRAMS 1. To provide funding to continue and expand the voluntary Pre-Kindergarten Program for 4-year-olds and their families to every county in the state and increase the number of children and families being served in F.Y. 1996. 2. To provide Special Needs Capital outlay funds for Pre-Kindergarten programs. 3. To provide funds for Next Generation Schools. 4. To provide funds for an additional Learning Logic site in each congressional district. 5. To provide tuition funds for the Postsecondary Options program. TOTAL LOTTERY PROGRAMS 157,646,245 8,000,000 500,000 1,000,000 1,200,000 168,346,245 TOTAL STATE AND LOTTERY FUNDS 3,725,736,179 130 STATE BOARD OF EDUCATION Functional Budget Summary F.Y. 1995 APPROPIUATIONS F.Y. 1996 RECOMMENDATIONS 1. State Administration TOTAL 5,170,028 STATE 4,641,560 TOTAL 2,930,364 STATE 2,128,341 2. Instructional Programs 25,236,170 20,361,921 24,468,008 19,821,781 3. Governor's Honors Program 1,196,467 1,105,305 1,248,899 1,164,073 4. Administrative Services 23,194,362 18,558,569 18,168,729 13,928,118 5. Special Services 6,444,528 2,995,189 6,951,430 3,577,463 6. Local Programs 3,891,198,668 3,360,597,594 3,987,142,964 3,499,619,510 7. Georgia Academy for the Blind 4,721,121 4,486,530 5,209,052 4,966,424 8. Georgia School for the Deaf 6,341,409 6,128,184 6,717,277 6,488,181 9. Atlanta Area School for the Deaf 4,802,603 4,326,430 5,123,439 4,806,843 10. Professional Practices Commission 11. Lottery Funded Programs 837,039 107,300,000 837,039 107,300,000 889,200 168,346,245 889,200 168,346,245 TOTAL APPROPRIATIONS 4,076,442,395 3,531,338,321 4,227,195,607 3,725,736,179 RECOMMENDED APPROPRIATION: The State Board of Education is the budget unit for which the following State Fund Appropriation for F. Y. 1996 is recommended: $3,725,736,179. Growth in FTE Enrollment for K-12 Education 1,250,000 1,200,000 ~ ~ 1,150,000 ......,=
  • (MILLIONS) I I I I I I I I I 86 87 88 89 90 91 92 93 94 95 96 FISCAL YEAR 188 DEPARTMENT OF HUMAN RESOURCES FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y.1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y.1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Authority Lease Rentals Computer Charges Telecommunications Capital Outlay Utilities Postage Institutional Repairs and .... Maintenance QC I,C Benefits: Cash Cancer Control Case Services Children's Services Children's Medical Services Children's Medical Services Clinics E.S.R.P. Case Services Family Planning Kidney Disease Medically Indigent High Risk Pregnant Women and Their Infants Payments to DMA for Community Care Contracts: Purchase of Service Special Purpose Children's Trust Fund 533,955,214 162,243,810 4,344,240 2,032,147 3,354,693 11,353,299 54,239,847 714,900 40,740,729 6,596,351 621,994 12,253,477 4,894,549 553,278,062 177,503,975 4,802,129 2,041,935 4,025,662 11,963,815 58,559,534 47,462,518 8,138,683 9,102,831 12,444,673 5,279,214 1,930,957 2,200,733 446,072,882 2,025,129 19,001,205 134,284;802 7,774,771 . 628,779 26,891 514,336 196,171 445,845,903 3,847,221 22,669,275 166,241,183 7,596,438 661,953 25,098 703,222 285,938 449,579 13,211,252 77,350,875 6,005,412 880,245 732,364 12,980,022 85,327,223 5,859,413 1,212,262 577,735,484 130,709,457 4,892,349 2,317,218 3,034,876 13,177,715 41,550,021 33,649,284 9,466,404 12,584,128 5,700,403 2,099,599 473,719,363 3,340,000 24,908,151 208,191,785 8,131,654 672,400 27,675 653,222 308,000 592,658,087 144,672,105 5,223,067 5,981,820 9,801,549 13,874,383 44,508,720 45,935,084 17,560,906 13,255,253 7,869,789 2,263,306 480,839,883 4,007,000 25,008,152 254,173,205 8,538,237 28,783 656,222 323,400 13,913,085 71,653,321 6,275,192 1,095,001 14,250,478 77,473,077 6,560,936 1,006,013 5,301,757 3,371,885 102,312 302,482 578,946 3,135,852 4,253,866 325,194 8,386,900 225,736 30,637,200 41,415,661 43,750 578,487,865 138,321,154 5,004,646 2,442,763 2,972,044 13,799,959 45,443,531 37,827,253 15,985,253 13,230,335 6,845,405 2,257,868 452,948,978 3,528,000 25,008,152 235,037,387 8,375,604 28,783 656,222 315,247 2,054,389 4,820,006 1,000,000 14,250,478 73,201,198 6,502,940 1,006,013 597,644 37,004 2,250 57,759 3,127,000 774,100 172,114 8,259,842 579,085,509 138,358,158 5,006,896 2,442,763 3,029,803 13,799,959 48,570,531 38,601,353 16,157,367 13,230,335 6,845,405 2,257,868 452,948,978 3,528,000 25,008,152 243,297,229 8,375,604 28,783 656,222 315,247 1,575,559 813,600 15,826,037 74,014,798 6,502,940 1,006,013 DEPARTMENT OF HUMAN RESOURCES FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y.1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Community Mental Health Center Services Mental Health Community Services Mental Retardation CommWlity Services COWlty DFCS - Operations Substance Abuse CommWlity Services Grant-in Aid to COWlties Regional Maternal and Infant Care Total Expenditures/Appropriations _ Less Federal and Other FWlds ~ Federal FWlds OtherFWlds DOAS - Indirect FWlds Governor's Emergency FWlds Total Federal and Other FWlds STATE FUNDS POSmONS MOTOR VEHICLES 52,770,633 57,463,510 20,534,305 24,849,644 90,050,112 245,404,016 87,382,661 263,076,896 43,400,333 82,613,644 47,203,342 92,575,895 747,761 2,083,219,340 747,761 2,224,090,988 72,563,927 30,357,434 124,109,174 98,378,277 265,328,206 120,477,300 276,412,105 48,587,663 96,043,451 49,977,154 104,367,142 821,135 2,261,885,880 862,192 2,452,674,522 874,595,762 239,003,735 6,032,000 262,088 1,119,893,585 963,325,755 16,966 1,816 913,578,526 276,541,641 6,032,000 205,268 1,196,357,435 1,027,733,553 17,159 1,815 899,154,029 229,872,845 6,032,000 923,327,846 238,288,854 6,032,000 1,135,058,874 1,126,827,006 16,707 1,816 1,167,648,700 1,285,025,822 16,647 1,819 19,889,172 113,324,701 6,562,952 11,929,321 99,487,892 278,968,866 11,301,162 7,643,662 49,643,997 103,119,356 163,282,205 845,769 2,328,867,659 21,160,697 (1,862,574) 899,816,735 243,587,459 6,032,000 19,298,123 143,984,082 217 1,149,436,194 1,179,431,465 16,631 1,816 4,669,270 117,993,971 915,927 100,403,819 278,968,866 49,643,997 103,119,356 21,002,069 845,769 2,349,869,728 5,112,842 904,929,577 243,587,459 6,032,000 5,112,842 15,889,227 14 1,154,549,036 1,195,320,692 16,645 1,816 DEPARTMENT OF HUMAN RESOURCES F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 1,126,827,006 CONTINUATION REDUCTIONS 1. Reflect projected Aid to Families with Dependent Children (AFDC) caseload. The Governor's recommendation includes a 2.0 percent growth over the reduced F.Y. 1995 projected amount. (5,816,620) TOTAL REDUCTIONS (5,816,620) CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. 11,351,483 2. Fund increase in Workers Compensation ($480,700) and comply with the provisions of the Fair Labor Standards Act ($3,893,000). 4,373,700 3. Increase State funds due to a decrease in the federal financial participation rate. 2,361,155 General Administration and Support 4 Annualize the F.Y. 1995 improvement for community-based services for the elderly. 515,278 5 Fund Troubled Children Benefits for current placements and annualize placements added in the Governor's F.Y. 1995 Amended Budget recommendations. (The Department requested $15,971,835). 10,135,257 6. Decrease overestimated federal funds in Regulatory Services for inspections of nursing homes, hospitals, labs, hospices and x-ray facilities. (The Department requested $2,029,895). 1,064,062 7. Transfer transition and operating funds from the Department of Education for 30 Family Connection sites. 2,250,000 Division of Public Health 8. Annualize the F.Y. 1995 improvement for the Early Intervention program which completes the 3-year phase-in ofthe program. 775,348 9. Annualize the F.Y. 1995 improvement for the Migrant Health program. (The Department requested $97,796). 51,936 10. Incre;lSe funding for various direct service benefit programs including: Cancer Control, High Risk Pregnant Women and Infants, Children's Medical Services and Kidney Disease. (The Department requested $926,749). 341,856 191 DEPARTMENT OF HUMAN RESOURCES GOVERNOR'S RECOMMENDATIONS Division of Rehabilitation Services 11. Fund a 3 percent inflationary increase for the Community Vocational Rehabilitation Facilities. (The Department requested $175,199). 116,802 Division of Family and Children Services 12. Annualize the cost of the F.Y. 1995 Welfare Reform improvement for 106 PEACH positions and employability services. 1,527,196 13. Annualize the cost of the F.Y. 1995 improvement for 149 Child Protective Services and 8 Adult Protective Services positions. 977,665 14. Annualize the cost of expansion and renovations of 42 DFCS county offices recommended in the F.Y. 1995 Amended Budget. 657,435 15. Fund the cost of the Healthy Families project. Pilot sites are located in Gainesville, Milledgeville, Tifton and Cordele. 500,000 16. Fund a projected 3 percent increase in Family Foster Care clients. (The Department requested $5,056,438.) 1,124,392 17. Fund a projected 5 percent increase in the number of children in Institutional Foster Care and increase the percent of cost reimbursed from 50% to 55%. (The Department requested $2,263,299.) 1,068,296 18. Provide for a 16 percent increase in the number of children in Specialized Foster Care. (The Department requested $275,538.) 108,387 19. Fund a projected 15 percent increase in Adoption Supplement clients. (The Department requested $1,044,821.) 889,015 20. Increase funds for Prevention of Foster Care services. (The Department requested $3,172,558.) 1,000,000 21. Fund projected increase in services cost for the PEACH Program. (The Department requested $671,581.) 443,739 22. Provide for a projected 4.2 percent roll growth in the Day Care program and a 2 percent inflationary increase for the various Day Care providers. (The Department requested $2,088,695.) 1,389,682 23. Complete the development of the System for Uniform Calculation and Consolidation of Economic Support Services (SUCCESS) statewide computer network which will replace the current PARISIPARISOL System. (The Department requested $4,668,63.) 1,668,639 192 DEPARTMENT OF HUMAN RESOURCES GOVERNOR'S RECOMMENDATIONS 24. Increase funds for production cost in computer and data telecommunications for Child Support Recovery due to mandated federal requirements. 2,415,789 Division of Mental Health, Mental Retardation, Substance Abuse and Institutions 25. Annualize the following F.Y. 1995 improvements: a. Chronically Mentally Ill. 1,127,716 b. Severely Emotionally Disturbed Children and Adolescents. 1,595,151 c. Mental Retardation Waiver (HOD Homes). (686,261) 26. Adjust for the reduction in Medicare, Medicaid and Mental Health Block Grant funds. 2,373,816 27. Provide continuation costs for ongoing programs. 6,903,545 TOTAL ADDITIONS NET CHANGES TOTAL STATE FUNDS - CONTINUATION IMPROVEMENTS 1. Develop community-based mental health services for emotionally disturbed children in the Bibb, Fulton, Gwinnett, Lowndes and Thomas County service areas; and fund regional support staff. This recommendation includes $303,374 to match federal Medicaid dollars. (The Department requested $10,506,518 for 14 areas.) 2. Provide 12 systems support staff, computer equipment and software to support the development of the Information Network for Public Health Officials. 3. Authorize the Department to utilize existing resources to begin development of a computer system to improve case management of child protection, placement and other social services and to meet federal reporting requirements. 4. Expand community-based services for the elderly by: a. Providing services to an additional 800 low-income clients who are not eligible for Medicaid. (The Department requested $1,932,000 for 1,900 clients.) b. Funding 500 additional Community Care Service Program slots. (The Department requested $1,614,899 for 800 slots.) 58,421,079 52,604,459 1,179,431,465 4,016,368 1,458,059 Yes 813,600 798,051 193 DEPARTMENT OF HUMAN RESOURCES GOVERNOR'S RECOMMENDATIONS c. Increasing Medicaid reimbursement for respite services from $9 to $12 per hour and provide a 5% rate increase for other community care service providers to cover inflation. 777,508 5. Expand services for the chronically mentally ill by: a. Funding an emergency receiving facility in DeKalb County. (The Department requested $1,620,684 for DeKalb County.) 456,714 b. Support the operation of single room occupancy housing for 100 individuals who are homeless and mentally ill and expand the Phoenix House for the homeless by 21 beds. 241,000 6. Provide funding for 24 mentally retarded individuals in HOD financed living arrangements in DeKalb, Dooley and Fulton Counties. This recommendation includes $228,000 to match federal Medicaid dollars. 915,927 7. Provide state funds to purchase child care for approximately 4,440 children in low-income working families. (The Department requested $5,112,842 to purchase child care for 7,082 children.) 3,147,000 8. Provide operating funds of $100,000 to each of the 25 Family Connection sites that received planning grants in F.Y. 1995 ($2,500,000); planning grants of $25,000 to 15 new sites ($375,000); and state matching funds for operations ($240,000). 3,115,000 9. Provide operating funds and staff support for the State Policy Council for Children and Families. 150,000 10. Capital Outlay and Institutional Repairs and Maintenance. (The Department requested $39,024,100.) See G.O. Bonds Section a. Replace or upgrade HVAC systems at Central State Hospital ($820,000), Savannah Regional Hospital ($230,000) and Southwestern Regional Hospital ($139,000). b. Replace water and sewer systems at Brook Run ($300,000) and Central State Hospital ($750,000). c. Repair or replace roofs at Gracewood State School and Hospital ($511,000), West Central Regional Hospital ($230,000), and the Albany Regional Health Building ($42,000). d. Meet safety and regulatory requirements at Atlanta Regional Hospital ($200,000), Brook Run ($305,000), Gracewood State School and Hospital ($94,000), Northwest Regional Hospital ($201,000), West Central Hospital ($80,000) and Roosevelt Warm Springs Institute for Rehabilitation ($128,000). e. Fund minor construction projects at Georgia Mental Health Institute ($60,000) and Southwestern Regional Hospital- Bainbridge ($128,000). 194 DEPARTMENT OF HUMAN RESOURCES GOVERNOR'S RECOMMENDATIONS f. Renovate the East Wing - Phase I at Roosevelt Warm Springs Institute for Rehabilitation ($2,295,000). g. Renovate the auditorium - Phase II at Central State Hospital ($220,000). h. Upgrade telephone systems at Gracewood State School and Hospital ($267,000). TOTAL IMPROVEMENTS 15,889,227 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 1,195,320,692 195 DEPARTMENT OF HUMAN RESOURCES ACTIVITY FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y.1994 EXPENDlTIJRES EXPENDlTIJRES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 1. GENERAL ADMINISTRATION AND SUPPORT Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Service Benefits for Children Special Purpose Contracts Purchase of Service Contracts .... Institutional Repairs and 10 ~ Maintenance Postage Payments to DMA for Community Care 42,697,734 1,866,426 1,141,251 1,479,540 198,341 4,525,972 2,446,696 1,582,887 521,142 21,004,148 283,000 30,524,076 59,237 912,890 13,211,252 51,421,729 1,988,975 1,269,398 1,502,448 205,624 4,609,700 2,225,960 1,946,176 580,480 32,105,194 244,000 35,005,112 60,297 936,622 12,980,022 58,125,146 2,026,774 1,327,696 1,554,768 148,992 4,961,394 852,879 1,355,714 653,026 30,809,504 244,000 35,021,311 67,500 961,336 13,913,085 51,481,620 2,644,569 1,485,787 1,717,027 191,126 4,878,258 1,090,441 1,868,563 784,824 50,601,940 254,980 39,981,421 73,440 1,157,384 14,250,478 407,083 46,664 23,063 18,366 25,000 43,162 6,097 3,159,006 290,100 1,336 2,054,389 50,601,320 2,289,641 1,379,426 1,672,736 86,131 4,878,258 3,855,500 1,352,727 719,874 43,895,723 244,000 35,532,131 73,440 1,003,066 14,250,478 95,000 11,000 44,000 3,115,000 813,600 1,575,559 50,696,320 2,300,641 1,379,426 1,672,736 130,131 4,878,258 6,970,500 1,352,727 719,874 43,895,723 244,000 36,345,731 73,440 1,003,066 15,826,037 Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds 122,454,592 40,778,244 9,168,412 412,600 5,000 147,081,737 42,105,044 14,352,340 412,600 15,200 152,023,125 40,587,736 17,224,655 412,600 172,461,858 39,557,320 21,426,842 412,600 6,074,266 161,834,451 236,083 39,278,795 21,341,389 412,600 5,654,159 167,488,610 39,278,795 21,341,389 412,600 Total Federal and Other Funds 50,364,256 56,885,184 58,224,991 61,396,762 236,083 61,032,784 61,032,784 STATE FUNDS POSmONS MOTOR VEillCLES 72,090,336 806 233 90,196,553 815 234 93,798,134 827 233 111,065,096 827 233 5,838,183 13 100,801,667 827 233 5,654,159 2 106,455,826 829 233 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y.1995APPROPRIATIONS F.Y.1996 RECOMMENDATIONS TOTAL STATE TOTAL STATE GENERAL ADMINISTRATION AND SUPPORT 1. Commissioner's Office 973,240 973,240 7,143,295 6,486,096 2. Budget Administration 2,094,214 2,094,214 2,036,588 2,036,588 3. Office of Children and Youth 30,809,504 22,564,521 43,895,723 32,699,727 4. Administrative Support Services 27,721,053 26,143,846 20,175,920 18,532,766 5. Facilities Management 5,606,386 4,485,460 5,537,729 4,283,733 6. Administrative Appeals 2,012,276 2,012,276 1,981,282 1,981,282 7. Regulatory Services - Program Direction and Support 712,133 702,133 791,675 781,675 8. Child Care Licensing 2,859,304 2,859,304 2,904,373 2,904,373 9. Health Care Facilities Regulation 9,232,991 2,558,166 9,500,586 3,889,823 10. Fraud and Abuse 6,080,909 2,275,651 6,075,853 2,248,066 11. Financial Services 5,638,547 5,438,547 5,626,666 5,426,666 12. Auditing Services 1,805,459 1,805,459 1,835,784 1,835,784 13. Personnel Administration 1,719,924 1,719,924 1,731,905 1,731,905 14. Indirect Cost (7,945,954) (7,854,642) 15. Public Affairs 516,081 516,081 521,864 521,864 16. Aging Services 52,552,209 23,986,371 56,085,960 27,386,713 17. State Health Planning Agency 1,688,895 1,608,895 1,643,407 1,563,407 TOTAL APPROPRIATIONS 152,023,125 93,798,134 167,488,610 106,455,826 197 DEPARTMENT OF HUMAN RESOURCES Program Information F.Y.1993 ACfUAL F.Y.1994 ACfUAL F.Y.1995 BUDGETED GENERAL ADMINISTRATION AND SUPPORT F.Y.1996 RECOMMENDATIONS Administrative Services 1. Number of fraud claims dispositions 2. Number offraud claims adjudicated 3. Number offood stamps fraud hearings disposed 4. Number of child support hearings disposed Aging Services 23,325 16,463 1,048 4,139 25,517 19,092 1,230 2,510 22,000 17,000 1,230 4,500 22,000 17,000 1,230 4,800 1. Unduplicated number of clients receiving congregate meals 2. Cost per congregate meal 3. Unduplicated number of clients receiving home-delivered meals 4. Cost per home-delivered meal 5. Unduplicated number of clients receiving in-home services (homemaker/chore and home-health) 6. Cost per hour of in-home service 7. Community Care Services Program client slots 8. Average cost per community care client slot 9. Uilduplicated number of clients receiving transportation 10. Cost per one-way trip 17,435 $5.14 11,873 $3.14 4,383 $16.00 8,327 $4,175 13,819 $2.47 17,353 $4.84 9,140 $2.66 4,693 $14.00 8,327 $4,175 14,026 $2.50 $17,500 $4.84 9,300 $2.66 4,800 $14.00 8,577 $4,175 15,000 $2.50 $17,700 $4.84 9,500 $2.66 5,000 $14.00 9,077 $4,413 15,200 $2.50 Regulatory Services 1. Number of child care providers licensed and inspected annually 2. Number oflong-term care providers licensed and inspected annually 3. Number of health care and industrial programs licensed and inspected annually a. Hospitals, general b. Laboratories c. X-ray 2,043 356 165 503 4,590 2,062 361 158 511 4,514 2,113 363 158 521 4,477 2,164 370 160 540 4,520 198 DEPARTMENT OF HUMAN RESOURCES Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED F.Y.1996 RECOMMENDATIONS State Health Planning Agency 1. Number of applications submitted 2. Number of completed reviews 3. Dollar volume reviewed 4. Dollar volume saved* 131 85 $273,916,055 $74,788,912 126 86 $176,439,169 $58,719,577 140 95 $194,083,086 $64,591,535 158 105 $213,492,395 $71,050,689 *These figures include those projects withdrawn. Troubled Children's Benefits 1. Number of troubled children placement slots 391 530 665 631 45 40 35 3~ 30 25 -..J 20 i 15 10 5 o Growth in Troubled Children Funding (Total Funds) 20% F.Y.92 F.Y.93 F.Y.94 F.Y. 95 Proj. F.Y. 96 Proj. Troubled Children Program Average Annual Cost/Slot $80,000 -y----------------------, $70,000 ~ $60,000 ~ (,) $50,000 51,848 $40,000 F.Y.92 F.Y.93 F.Y.94 F.Y. 95 Proj. F.Y. 96 Proj. 199 DEPARTMENT OF HUMAN RESOURCES Activity Roles and Responsibilities General Administration and Support The Division of General Administration and Support provides executive and policy direction and administrative support to all divisions and offices of the Department ofHuman Resources (DHR). The primary purpose of the Division is to improve the efficiency and effectiveness of management, administration and programs. The Division also assists in ensuring that the Department complies with mandates and legal requirements. COMMISSIONER'S OFFICE--The Commissioner and staff provide leadership for one of the largest state agencies in state government to ensure that the goals and objectives of the Department are met. There are approximately 35,000 state and county employees in over 100 programs in 1,000 locations in all 159 counties. The Commissioner is appointed by and accountable to the Board of Human Resources which is appointed by the Governor. BUDGET AND FINANCIAL SERVICES--Budget and Financial Services has responsibility for auditing, budget preparation and management, fmancial tracking and reporting. This office provides guidance to all divisions and offices regarding all items related to the budget and/or requested appropriations. PERSONNEL ADMINISTRATION-This office is responsible for classification and compensation; the flexible benefits program; complaint and discipline management; managing employee relations; equal employment opportunity; and maintenance ofpersonnel records. POllCY AND GOVERNMENT SERVICES--The Office of Policy and Government Services is responsible for administrative appeals. It also provides the Department support in the areas of legal services, constituent services and communications, including public information, graphic arts and publications and printing. FRAUD AND ABUSE--The Office of Fraud and Abuse investigates suspected fraud and abuse within the Department's public assistance programs and seeks adjudication through the judicial or administrative process This office also receives, reviews and investigates all reports of criminal misconduct by employees of the Department. REGULATORY SERVICES--The Office of Regulatory Services is responsible for inspecting, monitoring, licensing, certifying and registering a variety of health, long-term and child care programs to ensure that facilities and programs are operated in compliance with appropriate state statutes or rules and regulations adopted by the Board of Human Resources. It also certifies various health care facilities to receive Medicaid and Medicare funds, through contracts with the Health Care Financing Administration of the U. S. Department of Health and Human Services and the State Department ofMedical Assistance. AGING--The Office of Aging administers statewide programs that provide community-based support services to the elderly. These programs allow the elderly to remain in their homes and communities as long as possible and prevent premature or unnecessary placement of individuals in long-term care facilities. Programs are classified in two broad categories: Community Care Services Program (CCSP) and Aging Services. The CCSP was developed to implement the Georgia Community Care and Services for the Elderly Act. The program provides for client assessment, case management and six major services, including adult day rehabilitation and home-delivered services under a Medicaid waiver to individuals who meet specified income and health-related criteria. The Aging Services component is a series of related services and fund sources that do not have specific income-based eligibility criteria but are targeted to the most economically or socially needy individuals. Services are provided statewide through contracts with 18 Area Agencies on Aging, each coordinating service delivery in a designated geographical area of the state. Services include outreach, senior centers, home-delivered and congregate meals, transportation and Alzheimer's programs. TROUBLED CIDLDREN--The Troubled Children program purchases treatment from intensive and intermediate residential treatment facilities and therapeutic foster care for children with severe emotional and behavioral problems. Treatment may include the services of psychiatrists, social workers, therapists and other medical professions. In F.Y. 1995, this program will provide 665 placements. ATTACHED AGENCY The State Health Planning Agency is attached to the Department of Human Resources for administrative purposes. It serves as staff to the Health Strategies Council and provides research and technical assistance in developing the components of the State Health Plan. The agency also administers Georgia's Certificate ofNeed review program which determines whether a proposed health care project conforms with state statute provisions and guidelines contained in the State Health Plan. AUTHORITY Titles 3,5,8, 9,12,13, 14, 16, 18, 19,25,26,31,34,36, 37,40,43,44,45,47,48,49, and 50, Official Code of Georgia Annotated; Governor's Executive Orders of September 13 and October 3, 1983; Public Laws 89-73 as amended, 90-174, 92603 as amended, 97-35 as amended by 98-558 and 99-500, 100223, 100-578, 100-690, 101-496; Title XIX of the Social Security Act: HCFA 2176 Waiver; Older American's Act; Urban Mass Transit Act of 1964; Commercial Motor Vehicle Act of 1986; and the Single Audit Act of 1984. 200 DEPARTMENT OF HUMAN RESOURCES ACTIVITY FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 2. PUBLIC HEALTH Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Children's Medical Services Benefits Kidney Disease Benefits Cancer Control Benefits Benefits for Medically Indigent High Risk Pregnant Women and Their Infants eN Family Planning Benefits Children's Medical Services Clinics Special Purpose Contracts Purchase of Service Contracts Grant-in-Aid to Counties Institutional Repairs and Maintenance Postage Grants for Regional Maternal and Infant Care Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds 46,714,618 109,755,181 1,001,326 45,455 308,640 996,668 8,385,338 1,037,858 700,631 7,774,771 196,171 2,025,129 449,579 514,335 628,778 654,009 18,851,771 82,613,644 29,286 125,087 747,761 283,556,036 132,131,782 40,697,680 549,718 158,000 48,089,174 120,011,630 1,123,903 13,206 335,761 1,013,705 9,485,552 2,192,817 875,720 7,596,438 285,938 3,847,221 732,364 703,222 661,953 663,609 18,771,634 92,575,895 32,100 135,020 747,761 309,894,623 147,216,021 40,765,124 549,718 54,005,810 74,946,444 957,489 125,029 1,226,139 4,992,551 969,959 747,866 8,131,654 308,000 3,340,000 55,593,286 78,620,527 1,006,102 13,687 219,530 1,516,479 5,225,473 1,078,429 1,114,519 8,538,237 323,400 4,007,000 653,222 672,400 672,246 11,800,246 96,043,451 34,500 139,801 821,135 260,587,942 115,937,922 6,088,601 549,718 656,222 705,858 11,615,811 104,367,142 37,260 154,572 862,192 275,655,726 118,945,687 6,285,021 549,718 2,587,528 2,257,959 27,850 5,000 67,680 1,782,452 2,731,360 203,392 54,642,247 78,157,496 980,283 121,410 1,462,250 5,118,679 921,307 931,339 8,375,604 315,247 3,528,000 43,750 656,222 219,000 7,643,662 4,000 17,573,633 227,530 689,349 11,740,118 103,119,356 37,260 144,155 845,769 271,786,091 119,650,176 6,231,302 549,718 470,349 3,750 5,000 807,600 171,360 55,112,596 78,161,246 980,283 126,410 1,462,250 5,118,679 1,728,907 1,102,699 8,375,604 315,247 3,528,000 656,222 1,458,059 689,349 11,740,118 103,119,356 37,260 144,155 845,769 273,244,150 119,650,176 6,231,302 549,718 Total Federal and Other Funds 173,537,180 188,530,863 122,576,241 125,780,426 227,530 126,431,196 126,431,196 STATE FUNDS POSmONS MOTOR VEHICLES 110,018,856 1,300 6 121,363,760 1,412 7 138,011,701 1,343 7 149,875,300 1,343 7 17,346,103 50 145,354,895 1,343 7 1,458,059 12 146,812,954 1,355 7 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y.1996 RECOMMENDATIONS PUBLIC HEALTH 1. District Health Administration TOTAL STATE TOTAL STATE 11,726,253 11,596,578 11,888,156 11,758,481 2. Newborn Follow-Up Care 1,215,549 970,020 1,262,001 1,016,472 3. Dental Health 1,384,187 1,174,012 1,485,749 1,275,574 4. Stroke and Heart Attack Prevention 2,093,863 1,563,863 2,156,784 1,626,784 5. Genetic Sickle Cell, Vision and Hearing 4,153,698 3,757,396 4,195,261 3,798,959 6. High-Risk Pregnant Women and Infants 5,298,173 5,186,173 5,450,300 5,338,300 7. Sexually Transmitted Diseases 2,725,256 326,612 2,496,129 359,442 8. Family Planning 8,798,317 4,481,255 9,018,383 4,373,000 9. Malnutrition 78,171,909 81,939,387 10. Grant-in-Aid to Counties 54,939,354 54,083,354 59,014,117 58,158,117 11. Children's Medical Services 13,321,447 6,660,723 13,620,391 6,810,196 12. Emergency Health 2,863,683 1,807,135 2,911,739 1,855,191 13. Primary Health Care 1,716,889 1,588,858 1,799,704 1,659,158 14. Epidemiology 539,785 400,650 577,556 438,840 15. Immunization 958,300 954,732 16. Community Tuberculosis Control 6,512,513 5,257,908 6,480,518 5,227,456 17. Maternal and Child Health Management 1,071,457 741,805 1,056,156 733,060 18. Infant and Child Health 1,397,111 561,596 1,338,217 491,630 19. Maternal Health - Perinatal 1,958,714 847,523 2,013,168 864,485 20. Chronic Disease 978,633 978,633 1,010,907 1,010,907 21. Diabetes 515,002 515,002 526,711 526,711 22. Cancer Control 4,264,369 202 4,264,369 4,465,855 4,465,855 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y.1995APPROPRIATIONS F.Y.1996 RECOMMENDATIONS TOTAL STATE TOTAL STATE 23. Director's Office 24. Employee's Health 25. Health Program Management 26. Vital Records 27. Health Services Research 28. Environmental Health 29. Laboratory Services 30. Community Care 31. Community Health Management 32. AIDS 33. Vaccines 34. Drug and Clinic Supplies 35. Adolescent Health 36. Public Health - Planning Councils 37. Early Intervention 38. Public Health - Division Indirect Cost 855,244 303,499 1,879,236 1,833,430 1,213,030 909,075 5,355,679 3,955,146 465,163 7,945,713 11,462,507 3,220,025 3,051,019 172,330 11,362,384 658,019 303,499 1,745,635 1,609,737 990,212 732,982 5,355,679 1,504,262 285,714 4,131,724 1,474,809 2,485,942 1,990,259 155,178 9,360,303 (1,535,718) 1,049,977 323,330 1,893,245 1,812,765 2,938,256 906,462 5,493,762 4,115,282 474,494 8,037,799 11,462,507 3,331,026 3,099,654 161,261 12,482,409 852,752 323,330 1,801,030 1,583,086 2,715,438 730,369 5,493,762 1,563,807 295,045 4,170,141 1,624,280 2,786,089 2,038,894 149,390 10,432,641 (1,535,718) TOTAL APPROPRIATIONS 260,587,942 138,011,701 273,244,150 146,812,954 203 DEPARTMENT OF HUMAN RESOURCES Activity Roles and Responsibilities Public Health The general mission of the Division of Public Health is to assure conditions in which people can be healthy and to provide leadership in the prevention of disease and injury. Public Health accomplishes this mission through the provision of two broad categories of services: Individual health services. Direct delivery of health and medical care to individuals. Population-based services. Activities and interventions that are targeted to protect entire populations from illness, disease and injury. RANGE OF HEALTH SERVICES Approximately 25 percent of Georgia's residents, or 1,500,000 individuals, receive health services at county health departments each year. However, all Georgians benefit from the population-based services provided by the Division. Specific duties of the Division ofPublic Health include: Preventing, controlling and treating a variety of diseases and afilictions which affect physical health, including cancer, diabetes, heart attacks, hypertension, kidney disease, sickle cell anemia, tuberculosis, AIDS and sexually transmitted diseases. Providing services in family planning, teenage pregnancy prevention, family health care, maternal and infant health care, dental hygiene, community care for the elderly, malnutrition and immunizations. Providing and disseminating health information and education. Conducting laboratory testing, epidemiological investigations and reporting of communicable and infectious diseases. Monitoring various aspects of environmental health, including inspections of restaurants, sewage systems, hotels and motels, and other facilities for compliance with health laws. Collecting vital statistics and maintaining records of all births, deaths, marriages and abortions occurring in Georgia. Licensing and regulating ambulance services and certifying emergency medical personnel. "CORE" FUNCTIONS Because the responsibilities ofPublic Health have evolved to be so broad and varied, there has been much discussion about what the basic role ofPublic Health should be. To address these concerns, the Division has adopted three "core" functions: Assessment. Analyzing and evaluating, on a continuous basis, the prevailing health status and health needs of the community. Policy Development. Using the information gathered from assessment to develop and direct comprehensive state and local public health policies. Assurance. Making sure that needed health services are available, either through the public or private sector, that address the health status and health needs of the community. SERVICE DELIVERY SYSTEM The Division of Public Health has 19 district health offices located across the state. Each district office is headed by a director who must, by law, be a medical doctor. The director, along with the district health staff, provides leadership, administrative and program support to county health departments in the delivery of health services and in community health assessment. In each of Georgia's 159 counties there is a county health department which is governed by a county board of health. These boards are responsible for planning, developing and implementing health programs and activities. Services are provided through 274 health department clinic sites. Grant-in-aid funding from the state is provided to County Boards of Health to supplement local funds which support health services and staff. Low fees are charged for some services based on income; however, no one can be denied services based on inability to pay. CENTER FOR HEALTH INFORMATION The Center has three major functions: Vital records, health assessment services and management information systems. The Vital Records Unit registers and certifies all births, deaths, marriages, divorces and adoptions. The Health Assessment Services Unit conducts public health research, identifies needs and causes of health problems, monitors and forecasts health trends, and evaluates mortality and morbidity data. The Management Information System Unit provides computer infrastructure development and maintenance for the Division. It also maintains a wide area network for information dissemination to public health officials. AUTHORITY Titles 31 and 49-6-60, Official Code of Georgia Annotated; and Public Laws 78-410 as amended, 89-564 as amended, 95623,95-627,96-212 as amended, 96-510, and 99-457. 204 DEPARTMENT OF HUMAN RESOURCES Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED F.Y.1996 RECOMMENDATIONS PUBLIC HEALTH Maternal and Child Health 1. Infant mortality rate (per 1,000 births) 2. Low birth weight rate (per 1,000 births) 3. Percent oftwo-year olds with completed immunization series 4. Number of clients served by Children's Medical Services 5. Teenage pregnancy rate (per 1,000 females 10-19 years old) 6. Number of children receiving preventive health screens Community Health 1. Heart attack mortality rate (per 100,000 population) 2. Hypertensives with controlled blood pressure (percent of clients) 3. Stroke mortality rate (per 100,000 population) 4. Cancer mortality rate (per 100,000 population) 5. Percent of women 50 or over screened within prior year for breast cancer Communicable Disease 10.4 8.8 80% 11,000 74.9 193,250 11.3 8.6 84% 12,000 73.0 213,497 11.1 8.7 88% 12,000 73.0 240,000 82.6 59% 54.6 175.1 56% 81.7 58% 56.0 179.2 62% 81.7 58% 56.0 184.0 65% 10.9 8.7 90% 12,000 71.0 268,800 81.7 58% 56.0 184.0 67% 1. Incidence of infectious disease (per 100,000 population) a. Syphilis b. Tuberculosis 2. AIDS educational workshops and seminars (persons educated) 53.7 11.9 252,720 39.9 11.7 225,000 39.9 11.6 240,000 39.9 11.4 255,000 205 DEPARTMENT OF HUMAN RESOURCES ACTIVITY FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 3. REHABILITATION SERVICES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Case Services E.S.R.P. Case Services Special Purpose Contracts = . . . ~ Purchase of Service Contracts 0'\ Institutional RepaIrS and Maintenance Utilities Postage 64,727,049 10,121,612 1,027,849 128,035 673,790 3,573,232 8,227,250 4,949,954 1,356,118 616,094 19,001,205 26,891 593,500 8,266,975 168,955 810,367 706,432 66,041,732 11,477,436 1,151,651 55,056 821,914 3,777,761 8,447,069 2,386,557 1,455,641 9,102,832 22,669,275 25,098 675,500 8,728,502 222,977 834,890 655,677 68,784,363 11,336,039 1,128,735 63,700 528,325 4,176,935 7,661,196 2,769,298 1,541,468 24,908,151 27,675 692,387 9,131,679 208,554 912,445 753,068 72,076,781 12,893,663 1,193,682 186,727 978,434 4,400,219 8,565,330 2,720,385 1,826,376 25,008,152 28,783 723,545 9,542,608 220,438 940,543 835,080 550,000 856,400 3,261,100 400,000 988,800 70,396,373 11,916,078 1,130,256 71,277 589,927 4,384,844 8,118,861 2,421,325 1,730,645 25,008,152 28,783 713,163 9,640,953 215,000 940,543 753,443 70,396,373 11,916,078 1,130,256 71,277 589,927 4,384,844 8,118,861 2,421,325 1,730,645 25,008,152 28,783 713,163 9,640,953 215,000 940,543 753,443 Total Expenditures/Appropriations Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds 124,975,308 81,895,338 23,068,795 100,000 138,529,568 88,413,319 28,520,708 100,000 17,500 134,624,018 87,688,100 24,428,569 100,000 142,140,746 92,113,974 25,718,324 100,000 6,056,300 138,059,623 89,518,387 25,479,188 100,000 138,059,623 89,518,387 25,479,188 100,000 Total Federal and Other Funds 105,064,133 117,051,527 112,216,669 117,932,298 115,097,575 115,097,575 STATE FUNDS POSmONS MOTOR VEHICLES 19,911,175 1,794 70 21,478,041 1,788 71 22,407,349 1,767 72 24,208,448 1,767 72 6,056,300 22,962,048 1,767 72 22,962,048 1,767 72 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y. 1995 APPROPRIATIONS F.Y.1996 RECOMMENDATIONS TOTAL STATE TOTAL STATE REHABILITATION SERVICES 1. District Field Senices 45,453,275 9,104,662 46,142,663 9,273,327 2. Independent Living 863,713 581,518 881,663 585,358 3. Sheltered Employment 1,709,209 793,009 1,695,464 812,958 4. Community Facilities 8,208,236 3,234,533 8,454,483 3,266,010 5. State Rehabilitation Facilities 6,473,709 1,359,940 6,760,261 1,439,936 6. Diversified Industries of Georgia 789,944 804,046 7. Program Direction and Support 4,007,700 1,268,731 4,232,946 1,410,894 8. Grants Management 701,682 701,682 722,663 722,663 9. Disability Adjudication 32,188,837 33,048,076 10. Georgia Factory for the Blind 12,120,947 861,387 12,423,156 882,864 11. Roosevelt Warm Springs Institute 22,106,766 4,501,887 22,894,202 4,568,038 TOTAL APPROPRIATIONS 134,624,018 22,407,349 138,059,623 22,962,048 DEPARTMENT OF HUMAN RESOURCES Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED F.Y.1996 RECOMMENDATIONS REHABILITATION SERVICES 1. Total clients served - Competitive Employment 2. Percent clients coded severely disabled - Competitive Employment 45,229 60.8% 34,676 77.8% 34,700 78.0% 34,700 78.0% 3. Number of employees - Sheltered Employment 4. Average hourly wage - Georgia Industries for the Blind 5. Number of disability claims adjudicated 6. Individual Plans - Independent Living 7. Number provided information, referral and technical assistance - Independent Living 8. Referrals - Roosevelt Warm Springs Institute 694 $5.56 101,703 181 4,344 1,845 403 $6.10 99,980 185 3,027 1,864 400 $6.10 101,835 185 3,030 1,870 400 $6.10 101,835 190 3,030 1,870 9. Admissions - Roosevelt Warm Springs Institute 934 969 970 970 10. Average daily census - Roosevelt Warm Springs Institute 228 225 225 225 209 DEPARTMENT OF HUMAN RESOURCES ACTIVITY FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 4. FAMILY AND CHILDREN SERVICES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Children's Trust Fund Benefits Cash Benefits Special Purpose Contracts Service Benefits for Children ~ Purchase of Service Contracts = Postage Grants to Counties DFCS Operations 39,353,086 4,284,863 849,826 12,192 396,135 1,931,831 20,503,209 28,480,893 1,682,479 880,245 446,072,882 4,202,785 113,280,654 19,708,054 3,150,140 245,400,914 41,552,445 5,572,863 902,873 565,382 2,227,858 23,473,562 33,678,681 2,859,490 1,212,262 445,845,903 3,982,186 134,135,989 22,821,975 3,551,896 263,076,896 42,275,282 3,886,903 1,062,673 348,301 2,618,805 19,166,211 23,829,161 4,060,760 1,095,001 473,719,363 4,372,441 177,382,281 15,700,085 3,846,198 265,328,206 43,481,714 5,112,106 1,054,883 405,266 2,875,229 20,042,876 34,200,007 9,920,686 1,006,013 480,839,883 4,569,200 203,571,265 16,333,237 5,722,753 276,412,105 3,380,048 873,473 76,400 283,348 408,900 472,000 13,855,353 399,357 1,000,000 41,415,661 1,042,000 220,400 12,606,751 42,938,002 4,766,338 1,048,065 374,342 2,870,653 19,335,226 28,008,842 9,872,623 1,006,013 452,948,978 4,549,185 191,141,664 16,287,996 4,944,741 278,968,866 8,259,842 42,938,002 4,766,338 1,048,065 374,342 2,870,653 19,335,226 28,008,842 9,872,623 1,006,013 452,948,978 4,549,185 199,401,506 16,287,996 4,944,741 278,968,866 Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds 930,190,188 551,661,760 36,417,632 2,565,582 85,088 985,460,261 558,722,242 62,677,038 2,565,582 134,372 1,038,691,671 1,105,547,223 587,484,536 50,153,716 2,565,582 606,656,940 55,754,604 2,565,582 76,033,691 1,059,061,534 33,467,636 1,139,049 585,315,452 56,585,214 2,565,582 8,259,842 1,067,321,376 5,112,842 590,428,294 56,585,214 2,565,582 Total Federal and Other Funds 590,730,062 624,099,234 640,203,834 664,977,126 34,606,685 644,466,248 5,112,842 649,579,090 STATE FUNDS POSmONS MOTOR VEHICLES 339,460,126 1,171 101 361,361,027 1,249 98 398,487,837 1,207 98 440,570,097 1,207 98 41,427,006 145 414,595,286 1,207 98 3,147,000 417,742,286 1,207 98 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y. 1995 APPROPRIATIONS F.Y.1996 RECOMMENDATIONS FAMILY AND CHILDREN SERVICES 1. Director's Office TOTAL STATE 511,332 511,332 TOTAL STATE 516,045 516,045 2. Social Services 4,118,470 3,740,286 4,181,396 3,788,241 3. Administrative Support 6,209,832 5,023,547 6,318,160 5,093,874 4. Quality Assurance 3,745,413 3,745,413 3,793,592 3,793,592 5. Community Services 11,611,153 858,784 12,119,887 883,662 6. Field Management 1,098,176 1,098,176 1,108,105 1,108,105 7. Human Resources Management 2,029,320 1,847,863 2,025,188 1,835,566 8. Public Assistance 28,650,128 12,438,679 32,455,906 14,915,760 9. Child Support Recovery 51,072,649 2,615,249 59,803,063 4,619,619 10. AFDC Payments 460,160,668 173,526,588 441,109,858 167,709,968 11. SI - Supplemental Benefits 100 100 100 100 12. Refugee Programs 2,799,421 2,799,420 13. Energy Benefits 11,613,174 9,893,600 14. County DFCS Operations - Eligibility 103,690,602 51,695,151 106,872,201 53,353,194 15. County DFCS Operations - Social Services 83,874,318 28,015,144 89,902,751 31,922,742 16. Food Stamp Issuance 3,053,351 3,190,752 17. County DFCS Operations - Homemakers Services 7,688,443 2,257,516 7,860,363 2,429,436 18. County DFCS Operations - Joint and Administration 57,909,053 26,581,948 60,205,798 29,743,074 19. County DFCS Operations - Employability Program 12,165,790 4,589,157 14,127,753 5,371,372 20. Employability Benefits 26,196,997 10,841,651 29,013,559 11,985,349 211 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 21. Legal Senices TOTAL 2,884,700 STATE 1,762,504 TOTAL 3,160,971 STATE 2,398,580 22. Family Foster Care 32,999,018 21,898,980 34,581,746 23,023,372 23. Institutional Foster Care 8,399,105 6,725,777 9,824,560 7,794,823 24. Specialized Foster Care 2,198,812 1,920,404 2,324,639 2,028,791 25. Adoption Supplement 9,538,644 7,256,644 10,978,964 8,145,659 26. Prevention of Foster Care 10,345,743 6,008,762 11,111,088 7,008,762 27. Day Care 90,303,653 27,236,623 104,247,090 32,411,698 28. Outreach - Contracts 152,058 152,058 156,620 156,620 29. Special Projects 1,620,548 1,595,766 1,667,693 1,643,461 30. Children's Trust Fund Commission 2,051,000 2,051,000 1,970,508 1,970,508 31. Indirect Cost (7,507,265) (7,909,687) TOTAL APPROPRIATIONS 1,038,691,671 398,487,837 1,067,321,376 417,742,286 212 DEPARTMENT OF HUMAN RESOURCES Activity Roles and Responsibilities Family and Children Services The Division ofFamily and Children Services (DFCS) was established to administer and supervise the state's public assistance programs and social services. The mission of the Division is to enable families and individuals to protect and care for their children and themselves. The Division works to prevent dependency and to keep families together. There are county departments offamily and children services in each ofthe 159 counties. The county offices are administered by a county director and a local board. The county director oversees the daily operations and administers the programs for the county. The board serves as an advocate for the county department and approves the budget for the agency's operations and for county-funded programs. The board members are appointed by the County Commission. BENEFIT PROGRAMS AND ELIGmaITY DETERMINATION Eligibility staff in the 159 counties receive applications, certi1Y benefits and provide ongoing case management to families and individuals for Aid to Families with Dependent Children (AFDC) , Food Stamps, Medicaid and Energy Assistance. AFDC is cash assistance for poor children and their caretakers. A monthly average of 147,037 families receive AFDC. Of these, 69 percent are children. Ninety-two percent of all AFDC cases are families offour or fewer. Benefits total $441 million, with an average family grant of $250 per month. Benefits are approximately 62 percent federally funded and 38 percent state funded. The food stamp program supplements the food budget for eligible individuals with coupons redeemable at grocery stores for basic foods. A monthly average of 330,622 low-income households receive food stamps each month. Benefits total $648 million with an average household grant of $170 per month. Benefits are 100 percent federally funded. The Energy Assistance program provides fmancial assistance (including weatherization) to low-income families to meet home energy costs. This program is 100 percent federally funded. The Department ofMedical Assistance contracts with DFCS to determine eligibility for the Medicaid program which pays medical expenses for low-income families. EMPLOYMENT PROGRAMS CHILD SUPPORT Child Support Enforcement helps any custodial parent or caretaker with collecting regular child support from a parent who should be contributing but is not. Child Support money collected goes directly to single parents and their children to offset welfare payments. In 1994, this office collected $252.9 million from absent parents for the support of their children. Operating expenses totaled $45.8 million, of which $3.4 million were state funds. The statewide operations of child support are performed through 71 offices in 46 Judicial Circuits. Legal assistance is provided by local Assistant District Attorneys or Special Assistant Attorney Generals. The federal funding includes incentives earned on collections, based on cost effectiveness. Georgia is sixth in the nation in removing families from AFDC through child support collections and tenth in the nation in collections for AFDC clients. SOCIAL SERVICES County level staff provide a wide variety of social services, including protective services for abused and neglected children. Workers receive approximately 76,000 reports of child abuse and neglect annually. The staff investigates reports of abuse and assesses the level of risk the family situation poses on the child. Ifdanger exists, a foster home or emergency shelter placement is found to provide temporary care. The Prevention ofUnnecessary Placement program provides services to families at risk of having a child removed from the home. Over 18,000 children are in the protective custody of the state. Child care services are purchased to enable low-income parents to maintain employment and participate in job training programs. Care may also be purchased in child protection situations. The adoption supplement provides adoptive resources for children of parents whose rights have been terminated by the judicial system or whose parents have relinquished custody to DHR. Over I, I00 children were placed in 1994. The Division is also responsible for administering the Community Services Block Grant, refugee resettlement program and support services for the homeless. AUTHORITY The Positive Employment and Community Help (pEACH) program provides training and employment services to AFDC parents to increase their ability to provide for their families. Services have been available statewide since January 1994. Titles 15-11,19-7-5,19-8,19-9,29-5-2,30-5,31-7-2-.2,38-329,39-4,49-2,49-3,49-4-3, and 49-5, Official Code of Georgia Annotated; and Public Laws 93-288, 95-113, 96-272, 96-422, 97-35,98-558,100-203,100-485 and 49 Stat., 620 as amended. 213 DEPARTMENT OF HUMAN RESOURCES Program Information F.Y.1993 ACfUAL F.Y.1994 ACfUAL F.Y.1995 BUDGETED FAMILY AND CHILDREN SERVICES F.Y.1996 RECOMMENDATIONS 1. Average number eligible families per month-AFDC 2. Average family grant per month AFDC 3. Average number of certified households per month - Food Stamps 4. Average number of eligible individuals per month - Medical Assistance Only 5. Number of grants awarded - Children's Trust Fund 6. Amount child support collected for AFDC clients 7. Amount child support collected for nonAFDC clients 142,305 $252.04 304,891 51,374 96 $87,878,851 $131,402,167 142,927 152,630 $249.22 $251.24 317,906 330,622 57,476 63,798 72 72 $93,069,500 $96,333,972 $159,893,427 $174,358,356 147,037 $250.00 343,847 70,816 72 $105,400,000 $189,953,379 AFDC Eligible Families Per Month 155,000 150,000 145,000 140,000 135,000 F.Y. 1993 F.Y. 1994 F.Y. 1995 BUD F.Y. 1996 REC # Certified Households Per Month - Food Stamps ::EP : : 100,000 t----+-----+------Jl. F.Y.1993 F.Y.1994 F.Y.1995 F.Y.1996 BUD REC Eligible Individuals Per Month - Medical Assistance Onl 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 F.Y. 1993 F.Y. 1994 F.Y. 1995 BUD F.Y. 1996 REC $210,000,000 Child Support Collected $175,000,000 $140,000,000 $105,000,000 $70,000,000 F.Y. 1993 F.Y. 1994 F.Y. 1995 BUD I I mnmm AFDC Clients -+- Non-AFDC Clients F.Y. 1996 REC 214 DEPARTMENT OF HUMAN RESOURCES ACTIVITY FINANCIAL SUMMARY Budget ClasseslFund Sources I PRlORYEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 5. COMMUNITY MENTAL HEAL1WMENTAL RETARDATION/SUBSTANCE ABUSE AND INSTITUTIONS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Authority Lease Rentals Special Purpose Contracts Substance Abuse Community Service ~ Mental Retardation Community til Services Mental Health Community Services Community Mental Health Center Services Institutional Repairs and Maintenance Utilities Grants to Counties DFCS - Operations 340,462,727 36,215,728 323,989 366,925 1,777,787 325,596 14,677,355 4,689,136 2,335,981 5,900 714,900 272,118 43,400,333 90,050,112 20,534,305 52,770,633 1,673,479 11,443,110 3,102 346,172,982 38,453,071 354,304 471,225 2,096,980 334,789 14,927,390 7,258,287 2,367,353 294,118 47,203,342 87,382,661 24,849,644 57,463,510 1,885,359 11,609,783 354,544,883 38,513,297 415,756 698,750 1,884,229 194,442 8,877,184 4,725,152 2,463,284 370,024,686 45,401,240 482,613 4,064,379 8,007,193 204,198 9,584,600 6,067,700 3,914,501 294,118 48,587,663 98,378,277 30,357,434 72,563,927 1,789,045 11,671,683 307,353 49,977,154 120,477,300 124,109,174 1,932,168 12,314,710 (1,072,902) (186,211) 4,999 14,134 84,000 7,611 5,125,800 11,301,162 6,562,952 19,889,172 359,909,923 41,191,601 466,616 698,750 1,800,234 203,954 9,015,265 5,123,052 2,730,772 307,243 49,643,997 99,487,892 113,324,701 29,358,300 1,932,168 12,289,792 32,295 754 2,250 8,759 754 359,942,218 41,192,355 468,866 698,750 1,808,993 203,954 9,015,265 5,123,052 2,731,526 915,927 4,669,270 307,243 49,643,997 100,403,819 117,993,971 1,932,168 12,289,792 Total Expenditures!Appropriations 622,043,216 643,124,798 675,959,124 756,868,969 71,089,017 698,125,960 5,630,009 703,755,969 Less Federal and Other Funds Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds 68,128,637 129,651,217 2,404,100 14,000 77,121,900 130,226,430 2,404,100 38,196 67,455,735 131,977,304 2,404,100 66,053,925 129,104,063 2,404,100 (3,465,236) 66,053,925 133,950,366 2,404,100 66,053,925 133,950,366 2,404,100 Total Federal and Other Funds 200,197,954 209,790,626 201,837,139 197,562,088 (3,465,236) 202,408,391 202,408,391 STATE FUNDS POSmONS MOTOR VErnCLES 421,845,262 11,895 1,406 433,334,172 11,895 1,405 474,121,985 11,563 1,406 559,306,881 11,503 1,409 74,554,253 9 495,717,569 11,487 1,406 5,630,009 501,347,578 11,487 1,406 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y. 1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS COMMUNITY MENTAL HEALTH, MENTAL RETARDATION, SUBSTANCE ABUSE AND INSTITUTIONS 1. Southwestern State Hospital TOTAL STATE 39,261,457 25,667,156 TOTAL STATE 40,042,801 26,002,175 2. Brook Run 31,922,281 14,672,169 32,914,066 15,100,869 3. Georgia Mental Health Institute 26,717,469 24,604,785 27,210,625 25,635,189 4. Georgia Regional Hospital at Augusta 21,539,780 20,250,039 22,076,843 20,623,211 5. Northwest Regional Hospital at Rome 26,588,041 19,932,760 28,638,829 21,896,409 6. Georgia Regional Hospital at Atlanta 28,311,133 23,938,785 29,427,141 25,315,219 7. Central State Hospital 141,698,441 86,436,969 142,707,336 86,728,379 8. Georgia Regional Hospital at Savannah 18,845,470 17,508,957 19,051,563 17,733,754 9. Gracewood State School and Hospital 50,146,809 23,931,000 50,406,565 23,191,204 10. West Central Georgia Regional Hospital 18,817,772 16,610,754 19,533,402 17,174,492 11. Outdoor Therapeutic Program 3,699,108 2,799,990 3,853,986 2,952,696 12. Mental Health Community Assistance 1,995,646 1,884,357 2,724,599 2,612,837 13. Mental Retardation Community Assistance 1,357,393 1,332,395 1,371,583 1,345,935 14. Day Care Centers for Mentally Retarded 73,453,274 37,164,016 75,676,568 39,387,310 15. Supportive Living 30,000,750 26,558,797 33,023,436 30,325,366 16. Georgia State Foster Grandparentsl Senior Companion Program 806,641 806,641 822,340 822,340 17. Project Rescue 540,887 540,887 552,086 552,086 18. Drug Abuse Contracts 48,587,663 25,914,175 49,643,997 26,970,509 19. Community Mental Health Center Services 72,563,927 68,540,907 84,606,286 81,182,151 20. Project ARC 444,351 444,351 454,089 454,089 216 DEPARTMENT OF HUMAN RESOURCES Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 21. Metro Drug Abuse Centers TOTAL 1,541,706 STATE 1,346,206 TOTAL 1,564,081 STATE 1,368,581 22. Group Homes for Autistic Children 294,701 294,701 300,992 300,992 23. Project Friendship 356,684 356,684 364,249 364,249 24. Community Mental Retardation Staff 6,220,726 6,220,726 6,365,267 6,365,267 25. Community Mental Retardation Residential Services 17,036,169 17,036,169 16,662,358 16,662,358 26. Contract with Clayton County Board of Education for Autistic Children 95,472 95,472 97,859 97,859 27. Regional Offices 2,962,556 2,962,556 3,212,257 3,212,257 27. MHIMR/SA Administration 10,152,817 6,269,581 10,450,765 6,969,795 TOTAL APPROPRIATIONS 675,959,124 474,121,985 703,755,969 501,347,578 RECOMMENDED APPROPRIATION: The Department of Human Resources is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $1,195,320,692. 217 DEPARTMENT OF HUMAN RESOURCES Activity Roles and Responsibilities Mental Health, Mental Retardation and Substance Abuse The Division of Mental Health, Mental Retardation and Substance Abuse was created within the Department of Human Resources to establish, administer and supervise the state programs for mental health, mental retardation and substance abuse. The Division is charged by law to: Provide adequate mental health, mental retardation and substance abuse services to all Georgians. Provide a unified system which encourages cooperation and sharing among government and private providers. Provide services through a coordinated and unified system which emphasizes community-based services. The mission of the Division is to provide and promote the services necessary to prevent and reduce the disabling effects of mental illness, mental retardation and substance abuse. These services are designed to maximize the client's level of personal and social competency, independence and self-sufficiency. SERVICE DELIVERY SYSTEM The 1992 General Assembly created the State Commission on Mental Health, Mental Retardation and Substance Abuse Service Delivery to develop a "comprehensive plan for an improved service delivery system. .. " Based on the recommendation ofthis Commission and the resulting legislation, service planning and coordination have been separated from service delivery. The Division is responsible for setting policy regarding the use of all federal and state funds and will maintain policy oversight. The 19 regional boards are responsible for service planning, coordinating, contracting and resource allocation fimctions. The Division and the regional planning boards will be responsible for setting outcome measures and monitoring and evaluating the achievement of service providers. Twenty-eight new Community Service Boards have been established to govern the operation of public mental health, mental retardation and substance abuse community services. The Regional and Community Boards are responsible for encouraging availability of consumer choice of providers by expanding participation of public and private providers. STATE HOSPITALS AND INSTITUTIONS. There are eight regional hospitals primarily addressing psychiatric and substance abuse problems. These hospitals are located in Atlanta (2), Augusta, Columbus, Milledgeville, Rome, Savannah and Thomasville. Additionally, patients are sent to state hospitals by court order for evaluation before trial and for treatment if found incompetent to stand trial or not guilty by reason of insanity. Two state institutions, Brook Run in Atlanta and Gracewood State School and Hospital in Augusta, serve people with mental retardation exclusively. Four of the regional hospitals have special units serving people with severe mental retardation. The 10 institutions have a total staff of 11 ,186 which provide inpatient and outpatient services, therapies and other support services to clients within multi-county service areas. With an average client load of approximately 4,900 for all institutions, they serve 24,000 patients annually. AREA PROGRAMS The 28 community service areas are made up of a variety of dispersed but coordinated subprograms serving all age and primary disability groups. Basically, this service network includes 162 community mental health center clinic sites, 131 mental retardation day training centers, 25 detoxification units, 19 28-day treatment programs for substance abusers, nine day treatment programs for adolescent substance abusers and a variety of residential programs for all disability groups. Additionally, there are a number of community programs operated through contracts with private nonprofit agencies. This service network delivers comprehensive preventive, early detection, rehabilitation and treatment services for five major groups: adults with serious or chronic mental illness, children and adolescents who are severely emotionally disturbed, people who are mentally retarded, people addicted to alcohol or other drugs and teens with alcohol and drug problems. The Division requires that 80 percent of new admissions to the programs meet the most-in-need criteria. Clients most in need are those with social, emotional, developmental and/or physical disabilities resulting from mental illness, mental retardation or substance abuse, and who, without state-supported services, are unable to function. With the involvement of the clients and their families, program staffdevelop an individual service plan for each of these clients. The people who do not meet the most-in-need criteria receive short-term crisis intervention and referral to public and private services. Additionally, community staff screen patients for admission to regional hospitals and gives follow-up care to patients who are discharged from the hospitals. The community service programs are comprised of 446 state staff and over 10,000 local staff who provide services to approximately 116,000 mentally ill, 14,000 mentally retarded and 42,000 substance abuse clients annually. AUTHORITY Titles 15-11-40,17-7-130,17-7-131,26-5,31-3,37-1-20, 37-2 through 37-10 and 40-5, Official Code of Georgia Annotated; and Public Laws 97-35 as amended, 100-960, 100203,101-476 and 101-496. 218 DEPARTMENT OF HUMAN RESOURCES Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED COMMUNITY MENTAL HEALTH, MENTAL RETARDATION, SUBSTANCE ABUSE AND INSTITUTIONS Mental Health, Mental Retardation and Substance Abuse Institutions 1. Average Client Load (all institutions) 2. Mental Retardation 3. Substance Abuse 4. Child and Adolescent 5. Adult Mental Health 6. Medical InfirmarylHospital 7. Extended Care 8. Other Clients (Special Care, Forensics, Severely Psychiatrically Regressed, Veterans Nursing and Domililiary) 9. Percent discharges picked up by community programs within 15 days Adult Mental Health Child and Adolescent Mental Retardation Substance Abuse 4,835 2,045 30 194 1,109 101 317 1,343 66% 62% 80% 50% 4,795 2,038 30 183 1,077 95 311 1,039 71% 65% 88% 59% 4,922 2,052 31 217 1,118 109 322 1,073 75% 72% 100% 55% Community Mental Health, Mental Retardation, Substance Abuse Services 1. Unduplicated clients served in community programs 2. Mental Retardation Day Services 3. Mental Retardation Community Residential 4. Community Mental Health Center Services 5. Supportive LivinglResidential 6. Outdoor Therapeutic Program 7. Substance Abuse Regional Services 8. Family Support 9. MR Respite 148,188 9,995 2,010 108,130 3,666 181 40,572 955 156,451 10,149 1,883 115,889 4,624 172 41,903 948 175,185 10,034 2,097 116,064 4,640 172 41,903 955 1,824 F.Y.1996 RECOMMENDATIONS 4,863 1,989 31 203 1,126 107 315 1,092 75% 72% 100% 55% 176,258 10,058 2,131 116,299 4,731 172 41,903 955 2,736 219 DEPARTMENT OF HUMAN RESOURCES Programs and Services The Department ofHwnan Resources (DHR) was created by the General Assembly in 1972 to fonn a coordinated network of hwnan service agencies in the communities. The Department's mission is to assist Georgians in achieving their highest levels of health, development, independence and self-sufficiency. Services are provided through over 100 health, financial assistance, social services, regulatory and rehabilitation programs in 1,500 locations. DHR has adopted the following principles to guide in provision of services. Services should be: Based on individual and family strengths and needs rather than program or agency need. Focused on prevention and early intervention for those at highest risk. Available when and where they are needed and measured by customer satisfaction. Sensitive to cultural differences and strengths. Built on community-based planning. Oriented to results and effectiveness measurement. Balanced between public and private community-based organizations. The Board of Hwnan Resources and departmental leadership have identified three priority areas to target resources and efforts: Prevention and Early Intervention, Supporting Families, and Self Sufficiency. To achieve its goals and objectives in these areas, the Department is working closely with other state agencies, local communities, private enterprises, and private foundations and charitable organizations. Recently, DHR has intensified its efforts to generate additional resources to better meet the many hwnan service needs. Examples include: increasing child support collections; utilizing Medicaid waiver programs to expand services or cover services previously state funded; revising patient cost of care provisions to generate more income for expansion of community-based services; and changing cost allocation plans, sampling and record- keeping procedures to better defme and docwnent seIVices eligible to participate in federal funding. The Department is also actively seeking to privatize services where possible. Day care, child support recovery and community-based services for the elderly and for the mentally retarded are areas where privatization has been most successful. WELFARE REFORM One of the Department's goals is to create and sustain functional families and break the cycle of dependence on public assistance. In recent years, the Georgia General Assembly has passed legislation, sponsored by the Governor, which encompasses a variety of approaches to enforcing parental responsibility, assisting families to become independent, and reducing the financial obligation of the state. Family Cap. A parent who has received Aid to Families with Dependent Children (AFDC) for 24 months (after December 31,1993) will receive no additional cash benefits if she has a child while on welfare. The additional child will be covered by Medicaid. Teenage Mothers Residency Requirement. Effective January 1, 1994, in order to receive welfare for themselves and their child, most unmarried teenage mothers must live with a parent, a legal guardian or another adult relative or in a supportive living program supervised by an adult. Exemptions to this requirement protect the mother and child from abusive living situations. Employment Requirement. Ablebodied AFDC recipients with no children under age 14 who quit or refuse to take a suitable full-time job paying at least minimwn wage will be sanctioned by a reduction in cash benefits. Children will continue to receive assistance. Exemptions include recipients who take care of ill or disabled household members, those who are in school or in job training programs full-time, and those who have no transportation to the job. Work for Welfare. This program would require able-bodied recipients who are 18 years or older and noncustodial parents who are at least two months behind in paying child support for children on AFDC to work for 20 hours per month. The jobs, in government or nonprofit agencies, will be identified by local coordinating councils. The program applies to recipients who have received cash assistance for 24 of the last 36 months and will begin as a pilot in the following 10 counties: Bibb, Cook, Crisp, Dooly, Irwin, Jenkins, Lowndes, Walker, Wayne and White. A recipient who fails to participate as required will be sanctioned by a reduction in cash assistance. Exemptions include parents caring for a child under five years old, those enrolled in PEACH or already working 20 hours per month, and those who do not have transportation. Child Support Recovery. During Governor Miller's administration, child support collections have increased by 84 percent, from $143 million inF.Y. 1991 to $270 million projected for F. Y. 1995. In 1993, legislation was passed requiring employers to report new employees to the Office of Child Support Recovery to help locate absent parents who are behind in their paynients. Georgia is one of the first states to privatize child support collections by contracting with collection agencies to handle difficult cases. PEAClL PEACH is Georgia's job training and education program geared to prepare people on welfare for work. In F.Y. 1991, state-funded PEACH programs were available in 16 counties. Through Governor Miller's initiative, the program is now available in each of the state's 159 counties. Client participation has increased from 9,000 to close to 39,000 projected for F. Y. 1995. Between 1986 and 1994, more than 23,000 welfare recipients have gone to work. 220 ELECTRONIC BENEFITS TRANSFER PROJECT Georgia, along with six other southern states (Alabama, Arkansas, Florida, Missouri, North Carolina and Tennessee) government services by reducing waste and fraud and better serving the citizens of Georgia. ClllLD PROTECTION PEACH Participation 38 39 34 40,000 25 35,000 30,000 25,000 20,000 15,000 10,000 5,000 O-"'---,---=--.--"--.-"--.------"---.~'--r_../ 1991 1992 1993 1994 1995 1996 SFY and counseling to families at risk of having a child removed from the home. Since 1991 , state funding for prevention of foster care has increased from $1.5 million to $6 million budgeted for F.Y. 1995. The Governor is recommending an additional $1 million in the 1996 budget. The Healthy Families Georgia program is designed to improve family coping skills and functioning; promote positive parenting skills and parent-child interaction; promote optimal child development; and, as a result, prevent child abuse and neglect. All births are screened to identify risk factors for child abuse. Those identified as high risk are served through the home visitor component of the program which provides case management and regular home visits for a minimum of three years. Currently, there are five pilot projects in Gainesville, Milledgeville, Tifton, Cordele and Savannah. SEVERELY EMOTIONALLY DISTURBED CHILDREN AND ADOLESCENTS have fOimed the Southern Alliance of States to develop an Electronic Benefits Transfer (BBT) prototype. EBT uses automated financial transaction processing and card access technologies to electronically deliver federal and state benefits to recipients. It is intended to streamline the process by which government benefits are issued, spent and redeemed. EBT systems will eventually include eligibility determination and certification, as well as benefit transfers. Georgia has taken the initiative in this effort primarily because of the central location ofAtlanta and its proximity to the federal regional offices. The advantages of EBT are extensive. EBT will reduce costs and wastes associated with many human services, especially welfare programs, such as Aid to Families with Dependent Children and Food Stamps. For example, electronic processing of food stamp benefits would eliminate paper food coupons and trafficking in those coupons. Retailers and banks will no longer have to handle food stamps or cash welfare checks. EBT will reduce crime associated with the postal delivery of welfare checks and coupons. In summary, EBT represents an excellent opportunity to improve The state has expanded its efforts to assist and strengthen families to meet the needs oftheir children and to avoid out-ofhome placements. Strategies focus on moving from a crisis-response orientation to a family-centered prevention and supportive one. However, the safety of the child must be the state's top priority. When families cannot care for their children, the state arranges substitute homes through foster care and adoptions. Reflecting a nationwide trend, Georgia's child abuse and neglect reports for F.Y. 1994 were close to 84,000 compared to 22,616 in F.Y. 1984. Since 1991,256 additional child protection staff have been funded to investigate reports and to work with abusive families. In 1993, the Governor initiated legislation to transfer the Statewide Child Abuse Prevention Panel from the Department of Human Resource to the Criminal Justice Coordinating Council and recommended state funding to support panel activities. The Prevention of Unnecessary Placement program, along with the Homestead program, provide a range of services, including assistance in paying rent and utilities, buying food and clothes, Most of the needs of emotionally disturbed children could be met in their own communities, but the lack of community-based mental health services in Georgia results in an over reliance on hospital and out-of-community residential treatment. Children in areas without an array of services go relatively unserved until their problems demand drastic solutions. Increased appropriate, effective community services will decrease the number of inappropriate hospitalizations, the average length of stay in hospitals and out-of-community placements. Prior to F.Y. 1989, the only community mental health services available for youth in Georgia were limited to outpatient services and two group homes. Based on a long-range plan developed by the Department in 1989, the state began to fund comprehensive services in a number of areas across the state. Under Governor Miller, services have been expanded in 15 of 27 areas at an annual cost of over $19 million in state funds. For F. Y. 1996, the Governor is recommending an additional $4 million to expand services in the Bibb, Fulton, Gwinnett, Lowndes and Thomas County servIce areas. Services include: counseling, family 221 education and support, in-home services for families in crises, after-school and weekend treatment programs, respite care, therapeutic foster care and group homes, 24-hour emergency services, and case management. In F.Y. 1995, the Department is planning to redirect some resources from state psychiatric units for children and adolescents which have reduced their average client load as a result of the expansion of community base services. These funds would be used to partially fund child and adolescent mental health evaluation teams. The Multi-Agency Team for Children (MATCH) purchases and arranges therapeutic residential services for children up to age 18 with severe emotional problems who cannot be served in the community. This is an interdivisional program which serves children referred by local agencies through a statewide network. Funding has increased from $13 million ($12.5 million state) inF.Y. 1991 to $30.8 million ($22.6 million state) in F. Y. 1995. The Governor is recommending afimding level of $43.9 million ($32.7 million state) in F.Y. 1996. CHRONICALLY MENTALLY ILL People who suffer from mental illness can live productive lives as members of their community ifappropriate communitybased services are available. Since 1988, the General Assembly has authorized over $37 million in new state and federal funds to develop community-based services for the chronically mentally ill in target areas across the state. Twelve of Georgia's 27 community mental health service areas have been fully funded. Ten service areas have been partially funded, and five are unfunded. Services include day treatment, residential services, crisis intervention and case management. Areas with community-based programs have been able to reduce their use of state hospitals by serving people more effectively at home. The first three areas to be fully funded decreased their state hospital admissions 23 percent in the year after funding began. In the northwest region, where all three areas are now fully funded, Northwest Georgia Regional Hospital was able to close 25 state hospital beds and transfer money to the community. For F.Y. 1996, Governor Miller is recommending $456,714 to operate an emergency receiving facility in DeKalb County. Crisis intervention provided by such a facility is crucial to reducing unnecessary hospitalization. In Georgia, as in the rest of the country, there is a severe shortage of housing for people who are homeless and mentally ill. Through a joint effort by the Department of Human Resources, the Georgia Housing and Finance Authority and the Corporation for Supportive Housing, permanent housing with support services is being developed for individuals who are homeless. The Governor is recommending $241,000 in F.Y. 1996 to support the operation of a 100-bed single room occupancy housing unit and to expand Phoenix House for the homeless by 21 beds. COMMUNITY SERVICES FOR THE ELDERLY Program provides a full range of community-based services as a deterrent to unnecessary institutionalization. Services include assessment, case management, home-delivered services, adult day rehabilitation, alternative living services respite care, homemaker aid and emergency response services. These services are reimbursed under a Georgia Medicaid Home and Community-Based Services waiver program. To qualify, clients must meet the same medical, functional and fmancial criteria as those who receive Medicaid benefits for nursing facility placements. The state also provides a statewide network of community services for elderly who are not eligible for Medicaid but who are low income and at risk of nursing home placement. The Governor is recommending funding to expand both of these programs inF.Y. 1996. The Georgia General Assembly enacted the Community Care for the Elderly Act in 1982. This bill recognized that the functionally impaired elderly should be able to live as independently as possible in their own homes or with their families. The Community Care Services Admissions to State Hospitals Chronically Mentally III Impact of Community Funding in 1991 Hall Program Area 800 750 76 710 719 700 -------.....- - - - - - " , 650 .,, " '-, ''(i24 600 ''-, '" , 550 '-'~-23-------5+19 500 450 400 -t------.------,-----.------,-----, F.Y.89 F.Y.90 F.Y.91 F.Y.92 Fiscal Year F.Y.93 F.Y.94 Hall Area Includes: Union, Towns, Rabun, Lumpkin, White, Habersham! Stephens, Dawson, Forsyth, Hall, Banks, Franklin and Hart Counties 222 GEORGIA'S CmLDREN AND FAMILIES INITIATIVE Georgia's Initiative for Children and Families serves as an umbrella for Georgia's many existing services, providing a statewide focus and coordination. Its objective is to develop family- and community- centered services designed by those who use them, with a single point of access. In addition, the initiative is designing a new approach to governance that includes partnerships among the public, private, and nonprofit sectors, as well as the families themselves, to facilitate joint problem solving. In 1991, at the request of Governor Miller, the Georgia Departments of Education, Human Resources, and Medical Assistance formed The Family Connection, a collaborative partnership with local communities to integrate services for children and families at risk. Funded by a $5 million grant from the Joseph B. Whitehead Foundation. The Family Connection initially targeted 15 pilot communities. State funds have been appropriated to support the original sites, as well as 15 new sites, and to provide planning grants for 25 additional sites. The Governor continues the expansion of these sites in his F.Y. 1996 budget recommendations. In 1992, Georgia was one of five states selected to participate in the development phase of the Pew Children's Initiative, a multiyear, multimillion dollar effort to restructure the way education, health, and social services are provided to families and children. In the spring of 1994, it was announced that Georgia would receive $2.5 million for five counties: Chatham, DeKalb, Fulton, Murray, and Ware. The State Policy Council for Children and Families was created by Executive Order in June 1993. The Council was charged with developing a strategic plan for coordinating services among organizations and agencies that impact children; developing specific goals and outcomes that the state would like for its children and families; and making policy recommendations to the Governor regarding the best strategies, including a govemance mechanism, for improving the lives of Georgia's children. The Family Preservation and Support Services Program enacted by Congress in August of 1993 presents Georgia with a new, exciting opportunity for furthering its efforts to improve the well-being of children and families. The new legislation is intended to assist states with planning and implementation of preventive and crisis intervention services for children. The federal policy direction outlined in the new program is aimed in the same direction the state is headed with Georgia's Initiative for Children and Families. Both the federal and state efforts promote: Strategic planning with a broad range of community and state partners. Access to a comprehensive array of health, education, and social services. Reform of the current patchwork system of services. Georgia can use the opportunity presented by the new federal program to accomplish three important goals: Integrate the planning required for the federal Family Preservation and Support Program with Georgia's Children and Families Initiative and accelerate implementation of the state's plan. Invest the new federal funds strategically to develop new promising service strategies. Build a stronger intergovern- mental partnership with the federal Department ofHealth and Human Services through joint consultation and planning, application for discretionary federal funds for innovative programs, and shared development of evaluation mechanisms. The policy framework and service strategy outlined in the legislation is virtually indistinguishable from the conceptual framework and service strategy developed for Georgia's Children and Families Initiative. The Initiative embraces the same vision for children and families -- strong families and better outcomes for children. The federal requirements set forth for a five year strategic plan have been substantially met in the ten year strategic plan developed for the Georgia's Children and Families Initiative. The approach proposed by the Initiative calls for the development of a comprehensive system ofhealth. education, and social services in communities with a single point of access that makes maximum use of community resources. It defmes a continuum of services, including preventive, early intervention and intensive or crisis intervention services, which provides for continuity of inter- vention starting at the earliest possible stage in a child's life. - 223 DEPARTMENT OF HUMAN RESOURCES Total Budgeted Positions as of October 1, 1994 -- 16,677. Children's Trust Fund 3 Hea lth Planning Agency 27 . . . .A..tt...a.c.h.ePd~f~opr~~A~~d.mO~ini.Yis trative Isoard of Human Resources I I I JOffice of Commissioner Iand Deputy COllin; ss ion~~ , Assistant Commissioner Budget/F i nanc i a 1 Services 255 I ;Assistant Commissioner !Po 1icy/Government Services 168 I :AodffmicienisotfraPtieornsonnel l 3B I ~Office of Regulatory Services 263 - Deve lops the Department's budget - Coordinates with Legislative Budget Office and Covernor's Office of Planning and Budget - Develops financial/ procurement/contracts po licy and procedure and maintains officia 1 OHR financial records, accounti n9 records, procurement and contract documents - Audits subrecipients and field offices for compl iance with appl icable policies, principles, and regulations and for appropriate usage of funds - Provides general support services for DHR such as mail room, inventory, fact 1ities support, space management, maintenance, transportation and te 1econwnu n i ca t ions - Manages communications and legislative liaison activities with Con- X~:~l~~ea~~nf~~~ra1, State and local agencies - Conducts administrative hearings for public assistance pro- 1~~:~S~~~/~:~~~~~~~ns, employee grievances, and hospita 1izationl habi 1itation - Serves as 1ia ison between DHR and Law Department and Legislative Counsel - ~ ~~~:~ i ~~~~d :~~ :b~:~- within the Department's publ ic assistance pro- - ~~:k: adjudication through judi cia1 or administrative processes - Reviews and investigates all instances of criminal mi sconduct by Department employees - Manages const i tuent requests and inqu iries and provides public information on DHR - Administers DHR's personnel and training functions - Provides the following services: operations, classification and compensation, flexible benefits, complaint and discipline management, po 1icy deve lopment review, legislative analysis, employee relations, equal employment opportun i ty, personne1 related litigation, human resource development and employee criminal record review - Administers regulatory programs for 1icensure and certification of child care facilities, health care facilities (hospitals, specialized medical centers, labs), and nursing homes Division of Family I and Chi ldren Services 1,204 Division I Health of Public I 1,343 - Provides basic income mainte- nance grants to recipients of Aid to Fami 1ies with Dependent Chi ldren (AFDC); provides Supplement (MSS) agrManatn;dap"trooryvidSetas te financial assistance to resettled refugees - Provides financial assistance to lOW-income households for home heat- ing and weatherization - Administers statewide Community Ser- vices Block Grant Program - Administers the troubled chi ldren program and the adoption supplement - Provides funding to County Departments of Fami ly and Chi ldren Services to determine initial and continued eligibility for AFDC, Food Stamps, Med i ca i d, Refugee Assistance Program, and Mandatory State Supplement Provides non-monetary resources to social service clients of County OFCS Administers statewide program for recovery of chi ld support for AFOC and non-AFDC fami 1ies including establishment of paternity, establishment and modification of support orders, location of absent parents, and procurement of medical support - Advocates and promotes opt imum public health in the community through a health environment and appropriate emergency mad i ca 1 care - Provides for the organization of emergency medica 1 services and clinical laboratory services in support of public hea lth programs throughout the State - Provides State and Federa 1 funds to county Boards of Health to help finance local health services through the activities of service delivery personnel in 159 county health departments and 19 health districts Division of Mental Hea lth, Mental Retar- dation and Substance Abuse 11,563 Provides care, treatment, habilitation and outpatient evaluation services for mentally retarded cit i zens - Provides psychiatric, psychological, medical, educational, rehabi 1itative, social and other therapy services to mentally ill and substance abusing citizens Division of Rehabilitat ion Services 1,767 - Provides the following cant i nuum of comprehens i ve services which lead to the rehabi 1itation of disabled individua ls: Prepares disabled persons for their employment in the compet i t i ve 1abor market Obta ins emp 1oyment ina protected envi ronment by offering sheltered employment opportun i ties Assists persons with severe disabilities in becoming independent Receives and processes all appl ications for Disability Insurance Benefits (Title II) and for Supplemental Security Income Claims (Title XVI), screens claims for possible referral to other rehabilitat ion services, and conducts periodic reviews of individual claims - Offers medical, social, psychological, vocational and therapeutic recreationa 1 programs through the Roosevelt Warm Springs Institute for Rehabilitation Division of Aging I Seniors 63 Administers funds for aging services throughout the State - Provides for the development, implementation and provision of comprehensive and coordinated community-based health and social services and nutrit i on programs des i gned to prevent premature institutionalization of the elderly 224 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM RECOMMENDED STATE APPROPRIATIONS FORF.Y. 1996 INCREASE OVERF.Y. 1995 BUDGET CONTINUATION FUNDS IMPROVEMENT FUNDS $27,367,139 $8,051,037 $18,956,558 $8,410,581 HIGHLIGHTS MARKETING TRADE PORTS $10 million to initiate a new statewide marketing campaign entitled "Georgia Global Now" to advertise and promote a powerful image of Georgia, its products, tourist locations and business climate to the world. By taking advantage of the state's heightened visibility because of the Olympics, the marketing plan will target the influential traveler in the U.S. and in the primary world markets of Europe, North America and the Pacific Rim, as well as those planning to travel to Atlanta for the 1996 Olympics. The influential traveler is viewed as the individual who travels for business and pleasure and makes or influences business decisions. When combined with the $1.5 million Olympic-related marketing funds in the F. y. 1995 budget, this will be a $1l.5 million marketing campaign for the two fiscal years. Funding of $300,000 is provided in the Marketing continuation budget for an African-American Tourism effort in association with the Peach State Black Tourism Association. This funding will enable the state to target a rapidly growing segment of the tourist market. $150,000 to fund a special marketing and advertising program to tell the business world about the Georgia Research Alliance (GRA), the HOPE program, and related state initiatives in research, technology transfer and education. $261,581 for 3 trade positions, a 1-800 Export Assistance Line, video conference/distance learning equipment and operating expenses for an Export Assistance Center to be co-located with the new Federal Regional Export Assistance Center. The Center will provide direct counseling, as well as work with state and local partners to represent and help coordinate all services that are available. Companies will be assisted in all phases of exporting, with emphasis on market penetration and fmancing. The Center is designed to help small and medium-sized companies achieve their export potential. $400,000 in contract funds to expand international trade representation in South America and in other emerging world markets such as China, Southeast Asia, India and South Africa. This recommendation builds on the contract funding for Canada, Mexico and Taiwan in the EY. 1995 budget and gives an important boost to the state's export efforts. GEORGIA ACADEMY $100,000 to provide one-time funding for the Georgia Academy for Economic Development to complete preparation of its curriculum and implement its training program for economic development personnel throughout the state. This program is a public-private partnership which will become self-supporting and has been endorsed by the Governor's Development Council. $40 million in bonds for construction of a new container berth (Container Berth Seven) for the Georgia Ports Authority (GPA) at the Garden City Terminal. The construction of this new dock and container storage area will allow GPA to meet existing and future demands for container cargo at this terminal. The project will require $54 million to complete but the remaining funding will not be needed until F. Y. 1997. MARITIME TRADE CENTER $10.2 million in bonds for second year funding of the state's commitment to the Maritime Trade Center in Savannah. This recommendation is part of an overall $18.25 million state commitment with $7.5 million in bonds and $550,000 in general funds being appropriated in EY. 1995. Chatham County is committing more than $37 million to the project and additional funds for the project will be raised from the private sector. 225 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM FINANCIAL SUMMARY Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y.1996 F.Y.1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Authority Lease Rentals General Obligation Bonds Local Welcome Center Contracts Marketing ~ Foreign Office Reserve Waterway Development in Georgia (Tri-Rivers) Georgia World Congress Center Lanier Regional Watershed Commission Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds Emergency Funds Total Federal and Other Funds STATE FUNDS POSmONS MOTOR VEHICLES 7,691,800 1,443,452 245,178 60,321 56,630 833,548 723,200 105,230 202,867 1,445,000 18,966,964 126,910 4,444,997 8,064,465 1,554,314 288,094 19,856 60,909 906,547 740,665 112,556 243,772 1,445,000 17,485,674 138,315 4,665,751 24,500 9,800 36,380,397 300,000 36,025,918 8,360,275 1,494,818 335,000 32,000 60,883 947,130 690,178 152,440 227,000 1,450,000 171,600 6,479,578 50,000 50,000 8,661,847 1,904,823 411,034 67,000 130,343 1,017,415 921,093 222,419 317,878 1,240,000 171,600 6,837,950 43,094 50,000 1,289,829 112,710 105,500 18,000 102,530 62,000 428,600 192,700 50,000 5,497,500 15,063,566 8,539,637 1,581,479 335,000 35,000 70,202 1,009,874 693,178 177,303 260,413 1,240,000 171,600 5,679,578 43,094 50,000 20,500,902 21,996,496 22,922,935 19,886,358 20,417,929 20,417,929 15,962,468 202 23 18,985,729 85,000 19,070,729 16,955,189 203 22 1,184,800 1,184,800 19,316,102 205 23 819,800 819,800 21,176,696 205 23 929,800 22,922,935 26 1 929,800 18,956,558 205 23 122,211 15,570 54,800 10,000 500,000 8,000 20,000 7,680,000 8,661,848 1,597,049 335,000 35,000 125,002 1,019,874 1,193,178 185,303 280,413 1,240,000 171,600 13,359,578 43,094 50,000 8,410,581 28,296,939 929,800 8,410,581 3 929,800 27,367,139 208 23 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 19,316,102 CONTINUATION REDUCTIONS 1. Eliminate marketing and advertising funds for the Governor's Development Council and provide no fee increases for the Department's marketing and advertising agency. (800,000) 2. Provide a decrease in the foreign office reserve fund for Tokyo and Brussels offices. (6,906) TOTAL REDUCTIONS CONTINUATION ADDITIONS 1. Increase personal services to annualize the cost of the 4% merit pay increase authorized in F.Y. 1995 and for other personal services adjustments including a 2.6% lapse. (The Department requested a 1.4% lapse.) 2. Provide an increase in regular operating expenses for prospect subsistence, trade shows and business recruitment. (The Department requested a $410,005 increase.) 3. Increase real estate rentals for the Atlanta and Foreign offices. 4. Provide state funds to offset the projected shortfall in revenue from the declining sales of the Manufacturing Directory. 5. Increase other common object classes. 6. Provide funding of $300,000 in the Marketing continuation budget for an AfricanAmerican Tourism effort in association with the Peach State Black Tourism Association. The F.Y. 1995 funding for African-American Tourism is $200,000. (806,906) 179,362 86,661 62,744 45,000 73,595 o TOTAL ADDITIONS NET CHANGES TOTAL STATE FUNDS - CONTINUATION 447,362 (359,544) 18,956,558 227 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM GOVERNOR'S RECOMMENDATIONS IMPROVEMENTS 1. Initiate a new $10 million statewide marketing campaign entitled "Georgia Global Now" to advertise Georgia, its products, tourist locations and business climate to the world. The Governor is recommending that the $1,500,000 for Olympic marketing in the continuation budget for the Governor's Development Council be allocated to the Georgia Global Now marketing effort. The Department is reallocating $1,000,000 of its F.Y. 1996 continuation budget to Georgia Global Now to achieve the $10 million campaign. 7,500,000 2. Add 3 positions, a 1-800 Export Assistance Line, video conference/distance learning equipment and associated operating expenses for a state Export Assistance Center to be co-located with the new Federal Regional Export Assistance Center. 260,581 3. Provide contract funds to expand international trade representation in South America, and in other emerging world markets such as China, Southeast Asia, India and South Africa. 400,000 4. Fund a special marketing and advertising program to tell the business world about the Georgia Research Alliance (GRA), the HOPE program, and related state initiatives in research, technology transfer and education. 150,000 5. Provide one-time funding for the Georgia Academy for Economic Development to complete preparation of its curriculum and implement its training program for economic development personnel throughout the state. This program is a public-private partnership which will become self-supporting and has been endorsed by the Governor's Development Council. 6. Provide $40,000,000 for construction of a new container berth (Container Berth Seven) for the Georgia Ports Authority (GPA) at the Garden City Terminal. 7. Provide $10,200,000 for second year funding of the state's commitment to the Maritime Trade Center in Savannah. TOTAL IMPROVEMENTS 100,000 See G.O. Bonds See G.O. Bonds 8,410,581 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 27,367,139 228 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 1. Administration TOTAL 10,561,880 STATE 9,732,080 TOTAL 17,580,022 STATE 16,960,222 2. Economic Development 4,259,672 4,114,672 4,246,204 4,146,204 3. International Trade 960,298 960,298 1,624,841 1,624,841 4. Tourism 4,719,052 4,509,052 4,845,872 4,635,872 TOTAL APPROPRIATIONS 20,500,902 19,316,102 28,296,939 27,367,139 RECOMMENDED APPROPRIATION: The Department of Industry, Trade and Tourism is the budget unit for which the following State Fund Appropriation for F.. 1996 is recommended: $27,367,139. State Funding Department of Industry, Trade and Tourism 27.4 18.9 15.1 16 (millions) 87 88 89 90 91 92 93 94 95 96 Fiscal Years 229 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Roles and Responsibilities The Department ofIndustty, Trade and Tourism administers programs designed to promote and encourage responsible development of tourism, business and industty in the state. The Department of Industty, Trade and Tourism as a budget unit includes four divisions: Administration Economic Development International Trade Tourism ADMINISTRATION The Administration Division not only supports the Department in personnel, accounting, and procurement, but provides audio-visual and graphic design support to the economic development, trade and tourism efforts. ECONOMIC DEVELOPMENT The Economic Development Division markets Georgia as a location for new industries (manufacturing, warehousing, distribution, office and commercial facilities) by providing out-ofstate and international companies considering a Georgia location with accurate information on such topics as wage data, labor availability and taxes on potential sites; accompanying industty officials on tours of communities for prospective industrial development, and helping support local communities in their business development programs. The Division also helps existing industries to expand their present facilities or relocate to other Georgia communities. In addition, the economic development efforts include coordinating the support and operations of the overseas offices in Tokyo and Brussels. The Division also provides research and information support by publishing promotional material on transportation, international facilities, education, quality of life and available buildings. The Division also publishes the Georgia Manufacturing Directory which lists nearly 10,000 manufacturing companies in the state, and maintains current economic development profiles on Georgia communities. The Film Program, as part of the Economic Development Division, functions to develop and promote the state's film, television and commercial production industty. The staff working in the Film Program actively pursue film prospects through various marketing efforts, including direct mail, prospect visits, advertising and trade show participation. Film also provides a program of on-location assistance to production companies through scouting and securing locations, securing technical talent, housing and office needs, and coordinating the filming needs of the company with other state agencies and local governments. INTERNATIONAL TRADE The role of the International Trade Division is to increase employment through promoting the sale of Georgia products and services to customers abroad. The Trade Division also assists small and medium size businesses involved in exporting with trade leads, market analysis, trade shows and identification of financial assistance options. This mission is accomplished through two work groups: International Programs. Builds relationships with companies around the state in order to develop and implement marketing programs that will lead to Georgia companies selling their products or services to buyers in foreign markets. In-State Programs. Builds relationships across the state with local private sector partners, primarily chambers of commerce, that will lead to more companies becoming aware of the benefits of, and participating in, exporting. Additional responsibilities ofthe Division include overseeing the Department's contracts for foreign trade efforts in Taiwan, Mexico and Canada. TOURISM The Tourism Division's role is to increase the number of travelers by developing information services to reach the traveler before he or she leaves home and by developing a marketing strategy that leads travelers to choose Georgia as a vacation destination. The tourism stafffulfills the inquiries that result from the marketing efforts with various brochures and information packages about Georgia's tourism destinations. Tourism is also responsible for the operation of the state's 11 visitor information centers. These centers serve approximately 17 million visitors annually with travel information, reservations and assistance. The centers serve as the front door to Georgia and in many cases create the first impression for visitors to our state. ATTACHED AGENCIES The Georgia Ports Authority is responsible for the operations, administration and maintenance of Georgia's four ports--two ocean ports located in Savannah and Brunswick, and two inland ports located in Columbus and Bainbridge. Additionally, the Authority promotes the port facilities to shipping lines worldwide through its sales offices in Atlanta, New York, Tokyo, Oslo and Athens. The state provides no operating funds to the Ports Authority. The Georgia World Congress Center Authority is responsible for promoting and servicing regional, national and international events, conventions and trade shows which generate economic benefits to the state. The Authority owns and operates the Georgia World Congress Center and Georgia Dome, which is also the home of the Atlanta Falcons. The state provides no operating funds to the Congress Center. AUTHORITY Title 50-7, Official Code of Georgia Annotated. 230 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Programs and Services The Department of Industry, Trade and Tourism is Georgia's official state agency for attracting and encouraging capital investment by business and thereby the creation of new jobs. This mission is carried out by encouraging new business investment, the expansion of existing industry, locating new markets for Georgia products, promoting tourism and promoting the state as a location for film and video projects. The Department offers services in three major business areas: Economic Development, International Trade and Tourism. MARKETING As the state's economic development marlceting arm, the Department ofIndustry, Trade and Tourism provides advertising, public relations, trade show and marketing mission assistance services for Georgia. The primary focus of these marketing efforts is to position Georgia as the best possible location for business deVelopment. With the assistance of an advertising agency, the Department evaluates and selects publications that offer the most efficient and effective use of advertising dollars that both deliver a positive image of Georgia and generate the inquiries from business prospects, exporters and travelers. Whether tourism, trade or new company prospect, the Department emphasizes the state's quality of life, quality educational and training programs and technological developments. F. Y. 1996 funding will bring the Department's marketing efforts to a new level with the Governor's recommendation ofa new $10 million marketing campaign entitled Georgia Global Now to advertise Georgia, its products, tourist locations and business climate to the world. ECONOMIC DEVELOPMENT The Department's economic development effort focuses on recruiting new industry and encouraging the expansion of existing industry to create new jobs and generate more capital investment in Georgia. Each year, approximately 600 new business prospects are identified through the marketing and recruitment efforts and are assigned to project managers. As members of a sales team, project managers attempt to match the needs of a company's facility requirements with Georgia communities that can best meet those needs. The Department's efforts along with the efforts of private statewide developers and local economic development organizations have produced significant results even with changing global investment conditions. On average, about 150 new manufacturing facilities locate in Georgia each year, announcing between 6,000 and 9,000 new manufacturing jobs, with $300 to $700 million in capital investment. In addition, non-manufacturing projects such as warehouse/distribution centers also locate in Georgia communities, producing 5,000 to 8,000 new jobs, and adding millions more in capital investment. Similar recruitment efforts for the film industry are done on a smaller scale. The Department's Film Division promotes Georgia as a location for feature films and television productions and serves as community liaison for visiting production company officials. In addition, the Division actively promotes the development of a Georgia-based film and video industry. As a result of the Film Division's marketing efforts, a number of award-winning films including Glory and Driving Miss Daisy have been produced on location in Georgia over the past two decades. INTERNATIONAL TRADE Since the creation of a separate Trade Division in 1993, the Department's trade efforts have focused on assisting companies in specific industries with export potential. Targeted sectors in 1993 included technology products, construction products/services and agricultural technologies. In 1994, the Trade Division began a new program targeting the promotion of exports from environmental technology companies. A federal grant for $25,000 was obtained to promote the environmental industry in the southeast Asian market, and the Trade Division researched and printed a directory of approximately 200 environmental companies in Georgia. The Governor's recommendation for F. Y. 1996 includes $400,000 in contract funds to expand international trade representation in South America, and in other emerging world markets such as China, Southeast Asia, India and South Africa. This recommendation builds on existing contracts in Mexico, Canada and Taiwan and offices in Tokyo and Brussels to enable the Division to directly aid Georgia exporters in most major world markets. EXPORT ASSISTANCE CENTER The Trade Promotion Coordinating Committee of the federal government announced on July 28, 1994, Atlanta's selection for a Regional and District Export Assistance Center. This new Export Assistance Center will assist companies in all phases of exporting, with emphasis on market penetration and financing. Specialists from the U.S. Department of Commerce, EX-IM Bank, the Small Business Administration and other federal, state and local organizations will work together to meet the needs of Georgia's exporters. The Center will provide direct counseling, as well as work with state and local partners to represent and help coordinate all services that are available to exporters. The Export Assistance Center is designed to assist small and medium-sized companies achieve their export potential. TOURISM In 1993, tourist expenditures grew by 6.5 percent, from $10.5 billion in 1992 to $11.2 billion in 1993. State and local governments in Georgia collected a combined total of $1.6 billion in revenues 231 NUMBER OF VISITORS COUNTED AT ELEVEN STATE VISITOR CENTERS 15,000,000 I 20,000,00o 15,000,000 '! 01. 10,000,000 5,000,00o 0 15,195,145 15,483,290 17,617,959 18,498,853 21,273,681 earned from tourism expenditures. The Tourism Division continues to develop and implement a comprehensive plan to market Georgia tourism to the conswner and the group traveler. The goal is to increase the number of visitors, the length of stay, and the amount of money visitors spend in Georgia. VISITOR CENTERS During the development of the Interstate Highway System in the 1960's, Georgia was one of the fIrst states in the country to establish a Visitor Center Program. Visitor centers are the front door to our state and, therefore, must make the fIrst impression a visitor has on our state. This fIrst impression can determine the state's ability to be a vacation destination to the 17 million visitors who stop at the II centers each year. In the past two fIscal years, the Governor recommended the reconstruction of the visitor centers in Ringgold and Lavonia The F. Y. 1995 amended budget includes planning and design funds for the reconstruction of the Augusta Visitor Center and for major repairs to the other state visitor centers. ATTACHED AGENCY Under the management of the Georgia Ports Authority, the Port of Savannah has emerged as one of the premier container ports in the U.S., offering service to more than 100 countries by more than 50 major steamship lines. Savannah now is the tenth largest container port in the United States and the third largest in the South Atlantic, offering more than 6,000 linear feet of contiguous container berthing and 300 acres of paved container storage. Today, more than 50 major steamship lines use the Savannah and Brunswick ports, reaching more than 100 countries worldwide. The Georgia Ports Authority places particular importance on the breakbulk business (kaolin, forest products and steel), with the Brunswick and Savannah ports handling about 65 percent of all breakbulk cargo moving through South Atlantic ports. Besides terminal operations in Brunswick and Savannah, the Georgia Ports Authority operates two inland barge terminals in Bainbridge and Columbus. Under the Miller Administration, a total of $88.7 million has been appropriated for improvements for the Georgia Ports Authority. These improvements have consisted of deepening the Savannah River from 38 feet to 42 feet to allow the latest generation of container ships to use the Port of Savannah. Since completion of the Savannah River deepening project, container tonnage has increased 7.6 percent over of the same period last year. Other improvements include a new container berth, 30 acres of paving, and upgrading and purchasing new container cranes. In addition to these improvements, Governor Miller has allowed the Ports Authority to use $8 million in revenues that it generates internally to provide for an expansion at Mayor's Point in Brunswick and a new liquid bulk import berth in Savannah. The completion of the new, 42-foot channel in Savannah helped spur cargo volumes to their highest levels in the history of the Georgia Ports Authority during the F.Y. 1994. As a result of this volume increase, and other new shipping line contracts in F.Y. 1995, the Governor recommends $40 million in general obligation bonds for the Georgia Ports Authority to construct a new container berth (Container Berth Seven) at the Garden City Tenninal. These funds consist of removing existing structures, construction of a new dock and paving over 75 acres for container storage for the new container berth. 232 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM 1. Number ofjobs created by new and expanded plant locations Program Information F.Y.1993 ACfUAL F.Y.1994 ACfUAL F.Y.1995 BUDGETED 13,701 13,282 14,000 F.Y.1996 RECOMMENDATIONS 15,000 2. Number of new facility locations 556 541 560 566 3. Total number of international facilities in Georgia 1,420 1,521 1,550 1,600 4. Number of Georgia firms involved in foreign trade activities 1,879 1,916 1,940 1,986 5. Value of export sales generated NA NA $10,475,000 $14,072,500 6. Number of film projects produced in Georgia 26 24 24 24 7. Number of visitors to State Visitor Information Centers 16,936,018 17,617,959 18,498,853 21,273,681 8. Average cost per visitor at State Visitor Information Centers 9. Travel industry employment for previous calendar year $0.17 337,483 $0.18 364,668 $0.19 370,000 $0.20 370,000 233 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Total Budgeted Positions as of October 1, 1994 -- 205. Board of Industry, Trade and Tourism World Congress Center/ 464 Georgia Dome Georgia Ports Authority 6DD Attached for Administrative Commissioner Purposes Only I Administration Division 30 - Performs support functions of finance, budget preparation and administration, graphics, personnel, printing, procurement, warehousing, computer support and audio-visual presentations I International Trade Division 10 - Promotes exports of Georgia products and services - Provides industry-specific export promotion programs, international marketing information and trade leads - Organizes Georgia pavilions at international trade shows - Provides trade representatives in strategic export markets - Provides trade finance counsel ing - Encourages use of Georgia's transportation and distribution facilities and fosters Georgia as a recognized center of international trade 234 I Economic Development Division 52 - Markets Georgia as the best location for national and international businesses - Provides site location services to new and existing businesses - Analyzes and prepares comprehensive economic information for industrial prospects - Promotes Georgia as a prime location for film production - Develops comprehensive information on industrial sites and buildings - Assists communities in planning their economic development programs - Publishes the Georgia Manufacturing Directory and Economic Development Profiles I Tourism Division 112 - Plans, coordinates and conducts comprehensive marketing and sales programs to attract both national and international individual and group visits - Offers information to travelers through a network of visitor information centers - Provides location services to tourism entertainment businesses - Offers staff services through a network of 8 regional representatives located throughout the state OFFICE OF COMMISSIONER OF INSURANCE Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITIJRES EXPENDITIJRES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS FINANCIAL SUMMARY F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Total Expenditures!Appropriations Less Federal and Other Funds Federal Funds Other Funds ~ Total Federal and Other Funds CN Ul STATE FUNDS POSmONS MOTOR VEHICLES 11,095,799 739,463 359,934 40,500 124,122 518,988 498,862 678,140 226,514 14,282,322 1,044,472 406,516 1,450,988 12,831,334 321 47 12,099,767 744,361 376,809 72,000 88,181 585,552 482,583 416,038 281,300 15,146,591 1,051,476 281,286 1,332,762 13,813,829 324 47 12,844,345 713,762 401,560 84,000 55,750 806,814 202,990 447,756 251,433 15,808,410 1,109,444 50,556 1,160,000 14,648,410 324 47 13,453,540 735,290 413,610 150,000 92,040 806,814 227,600 465,180 315,280 16,659,354 1,256,440 50,360 1,306,800 15,352,554 324 47 933,390 19,950 9,000 200,000 70,380 39,500 1,272,220 1,272,220 27 16 13,148,362 716,430 408,120 87,500 61,940 806,814 219,600 425,417 315,280 16,189,463 1,256,440 50,360 1,306,800 14,882,663 324 47 114,493 3,850 7,000 5,850 3,000 134,193 134,193 4 13,262,855 720,280 408,120 87,500 68,940 806,814 219,600 431,267 318,280 16,323,656 1,256,440 50,360 1,306,800 15,016,856 328 47 OFFICE OF COMMISSIONER OF INSURANCE F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS KY. 1995 State Appropriations 14,648,410 CONTINUATION REDUCTIONS 1. Reflects an increase in federal funds associated with the inspection of mobile homes and nursing homes. (146,996) TOTAL REDUCTIONS (146,996) CONTINUATION ADDITIONS 1. Annualize the cost of the 4% merit pay increase authorized in F.Y. 1995. 225,162 2. Furnishes additional funds for the replacement of 7 vehicles in F.Y. 1996. (The Department requested the replacement of 12 vehicles.) 3,500 3. Provides for other continuation increases. (The Department requested increases of $254,800.) 152,587 TOTAL ADDITIONS 381,249 NET CHANGES 234,253 TOTAL STATE FUNDS - CONTINUATION 14,882,663 IMPROVEMENTS 1. Adds 2 receptionist positions, 1 investigator position, and additional telephones and telephone lines to the Consumer Services section enabling the Department to handle and resolve more expediently a larger number of insurance consumer complaints and inquiries. (The Department requested $366,676 for 4 receptionists and 7 investigators.) 89,443 2. Provides for 1 additional engineer to assist the Department in dealing with the surge in construction plan reviews and building inspections due to growth in the state's economy, and from construction activity arising from the 1996 Olympics. (The Department requested $609,927 for 6 engineers, 4 fire safety compliance officers and 16 vehicles.) 44,750 TOTAL IMPROVEMENTS 134,193 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 15,016,856 236 OFFICE OF COMMISSIONER OF INSURANCE Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y.1996 RECOMMENDATIONS 1. Internal Administration TOTAL 4,379,113 STATE 4,379,113 TOTAL 4,399,823 STATE 4,399,823 2. Insurance Regulation 6,299,191 6,299,191 6,561,845 6,561,845 3. Industrial Loan 435,688 435,688 477,486 477,486 4. Fire Safety and Manufactured Housing 4,694,418 3,534,418 4,884,502 3,577,702 TOTAL APPROPRIATIONS 15,808,410 14,648,410 16,323,656 15,016,856 RECOMMENDED APPROPRIATION: The Office of Commissioner of Insurance is the budget unit for which the following State Fund Appropriation is recommended: $15,016,856. 237 OFFICE OF COMMISSIONER OF INSURANCE Roles and Responsibilities The Office of Commissioner of Insurance is accountable for upholding state laws regulating insurance, frre safety, mobile homes and sma11loans. The Department organizes its efforts in fulfilling these responsibilities around four divisions. INTERNAL ADMINISTRATION DIVISION The Internal Administration Division provides management, policy direction, enforcement and administrative support for the Department's program regulating companies and protecting consumers in the areas of insurance, industrial loan regulation, frre safety, manufactured housing, arson investigation, building inspection, hazardous material handling and storage, and other related areas. The Division's activities include performing personnel, purchasing payroll, budgeting, and accounting duties for all agency divisions; coordinating computer activities for each division; and establishing Department policy, procedures, regulations and enforcement capabilities. INSURANCE REGULATION DIVISION The Insurance Regulation Division is responsible for administering Georgia insurance laws and regulations by reviewing and approving insurance company property, casualty, life, accident and sickness policy forms and rates; approving applications for insurance companies to conduct business in Georgia; approving applications for individuals to obtain insurance agent licenses; and regulating group self-insurance funds for workers' compensation insurance. The Division oversees the regulation of automobile self-insurers, Captive Insurance companies, and Interlocal Risk Management. INDUSTRIAL LOAN REGULATION DIVISION The Industrial Loan Regulation Division administers the Georgia Industrial Loan Act by performing examinations and on-site investigations of all accounts held by the industrial loan companies (small loan companies making loans of $3,000 or less) licensed to do business in Georgia, accounting for all fees and taxes payable by the industrial loan companies, and approving applications for new industrial loan company licenses and investigating consumer complaints. FIRE SAFETY AND MOBILE HOME REGULATION DIVISION The Fire Safety and Mobile Home Regulation Division administers and enforces compliance with Georgia and federal laws affecting manufactured housing and frre safety by reviewing applications for licenses and permits to use or store hazardous or physically unstable substances and materials; by reviewing construction plans for public buildings and manufactured houses for adequate frre hazard prevention and protection. The Division inspects public facilities for compliance with Georgia's fire safety laws and investigates cases involving suspicious frres in Georgia. AUmORITY State Constitution; Official Code of Georgia - Annotated Title 45-14 238 OFFICE OF COMMISSIONER OF INSURANCE Programs and Services The Office of Commissioner of Insurance employs a number of programs and services to fulfill its duties in regulating the state's insurance industry, industrial loan companies and flIe safety standards. These activities are geared toward enabling the Department to satisfy its regulatory responsibilities effectively, and to protect and assist the public in the areas the Department oversees. A few of these programs and service's are explained below. FRAUD INVESTIGATION ACTIVITIES Since its inception in late 1991, the Fraud Unit of the Insurance Commissioner's Office has participated in over 200 administrative and criminal actions in its fight to curb insurance fraud. Working with the insurance industry and other state agencies has opened new doors in prosecuting insurance fraud. The Unit has worked to implement changes by: Standardizing the motor vehicle accident report forms. Developed fraud detection techniques by networking with other agencies, both state and federal, in presenting the flIst National Basic Fraud Training seminar through the National Association of Insurance Commissioners (NAIC). Active in bridging the gap between industry and government through the use of special investigative units to fight insurance fraud such as health insurance fraud, school bond rip-offs, unauthorized insurers, unprofessional lawyers, unscrupulous chiropractors and professionals who have attempted to defraud Georgia consumers. NAIC ACCREDITATION PROCESS The National Association of Insurance Commissioners (NAIC) developed a list of criteria which they believed an insurance regulatory authority should comply with. The NAIC set a tlrree-year time limit (until December 1993) for all states to be evaluated according to these accreditation criteria. A state's failure to become accredited within the three-year period would cause other states to ignore the unaccreditated state's fmancial analysis and fmancial examinations, and would substantially increase costs for the insurance companies domesticated in that unaccreditated state. The accreditation standards fall into three basic categories: Law and regulations. Financial analysis and fmancial examinations. Organizational and personnel practices. The NAIC performed a preliminary review at the Georgia Insurance Department in May 1993. During the visit, recommendations were made: To clarify existing statutes through regulations or directives. To improve fmancial analysis and fmancial examination procedures. To improve upon existing personnel and training practices. The fmal review by the NAIC was performed in October 1993. The NAIC accreditation team subsequently recommended to the NAIC that the Georgia Insurance Department be accredited. At that time, less than onehalf of the states had successfully passed the accreditation process. Georgia received its accreditation in December of 1993. The NAIC continues to propose new laws and regulations and stricter guidelines for evaluating a state's fmancial analysis, fmancial examination and organizational personnel practices. A short follow-up review of the Georgia Insurance Department-- using these newer stricter guidelines--was performed again in November 1994. The NAIC was satisfied with the Department's performance. It is expected that each state insurance department will now be subject to a yearly desk audit by the NAIC, and an extensive on-site review by NAIC personnel at least once every five years. Achieving and maintaining NAIC accreditation gives the Department and the state an advantage in regulating Georgia's insurance industry. Any state which is not accredited (or which loses accredited status, as some states have done) creates an additional regulatory and fmancial burden on its domestic insurance industry. For example, fmancial examinations performed by an unaccredited state cannot be accepted by the other accredited states. Consequently, unaccredited states need to have the assistance of fmancial examiners from an accredited state in order to "legitimize" their fmancial examination work papers and fmal report. Moreover, the accredited states are entitled to perform their own independent financial analysis or fmancial examination of companies in unaccredited states. This usually results in a duplication of efforts and costs to these insurance companies. The fmancial analysis and fmancial examination work from an accredited state is generally accorded a greater degree of credibility than the work from an unaccredited state insurance department. Thus, insurance company decisions regarding initial placement of the home office or relocation of a home office must now factor in whether the intended site is within an accredited state. BOOK ENTRY AND SECURITIES The Department's privatization of the maintenance of insurance company securities, in physical form, to a book entry format with a local bank custodian was the project ofthe Regulatory Services Division and attorneys from the Enforcement Division. Privatization of the function afforded a more efficient means of handling the approximately $190 million in securities for 1,644 insurance entities and to reallocate resources from this time-consuming function. The outmoded process of recording, by hand, all securities on a card ftle, and physically handling the documents was tedious with a possibility of human error. 239 A standard request for proposals was sent to various local fmancial institutions. The proposal selected came from Wachovia Bank. The Department and Wachovia personnel began developing procedures in the spring of 1994. The physical transfer of the securities is targeted for fall of 1994. Clerical responsibilities will be considerably reduced, leaving greater time to perform other necessary functions of the division. The Department will be able to retrieve account information immediately by using communication software, through the office's local area network, directly to Wachovia's system without relying on researching the information through other personnel. The insurance companies will, likewise, be able to obtain verification of accounts in a similar setup provided by Wachovia for a nominal quarterly assessment. PRIVATIZATION OF AGENTS LICENSING The Department began privatizing its Agents Licensing Section in 1990 when it contracted the responsibility for the compilation and sale of study manuals to an outside vendor. These manuals are used in the preparation for the various licensure examinations. By contracting this service, individuals receive their manuals sooner. Privatization of this activity allowed staff to devote approximately 15 more hours per week to other responsibilities relating to the processing of agents licensing work. In October 1992, the responsibility for administering and scoring the Agent Licensing examinations was privatized to an outside frrm (approximately 10,000 examinees per year). This effort has proven to be a success because the examinees are now notified immediately whether they have passed or failed an examination. This privatization allows employees more time to perform other critical job responsibilities by not having to administer or grade the examinations. The Department has also implemented a lockbox system whereby licensing fees submitted are immediately deposited. This function is performed by Wachovia Bank. Agents Licensing is now studying the benefits of allowing a private vendor to maintain the computer records of over 70,000 agents, which entails processing 70,000 annual license renewals. The vendor would also provide and process the certificate of authority renewal listing and confrrmations which number over 250,000 appointments each year; process new issue certificates of authority, which number 65,000 per year; and process Certificate of Authority terininations which number over 25,000 per year. Privatization of these functions would allow employees more time to devote to other critical job tasks, enabling them to provide faster service to the insurance agents and companies. Before any steps toward this phase of privatization can occur, legislation must be proposed and passed. HEALTH CARE UTILIZATION REVIEW A process called Health Care Utilization Review (DR) has been implemented by some insurers and employers in recent years. This process evaluates the appropriateness, necessity and quality of health care provided at various stages in the health care delivery system. Although this feature is technically a part of the health insurance plan design, it is different in that the utilization review process analyzes whether the care prescribed and delivered is justifiable and appropriate. In today's cost conscious, competitive health care market, hospitals and providers need effective utilization reviews. Utilization Review companies (private review agents) manage costs through a case-by-case assessment of the clinicaljustification for proposed medical services. Utilization Review Companies and agents currently have a significant influence on the provision of payment for health care. Because recommendations made by these organizations may have an impact on the types of care approved for payment, a utilization review company might affect a patient's access to health care. As a result, there is a considerable amount of interest concerning the individuals who make utilization review decisions, the professional experience, and the review criteria these companies and individual agents use. To help protect health care consumers against inappropriate recommendations, standards have been developed by utilization review representatives and health care providers. State legislation has been enacted to specify the types of individuals, procedures and protocols that should be used in making a utilization review decision. Georgia law establishes minimum standards for all private review agents (utilization review organizations) to follow in making recommendations on the necessity and appropriateness of health care services. The Department is responsible for enforcing the standards through periodic reviews of these utilization review organizations. CONSUMER SERVICES ACTIVITIES The Consumer Services Section has the responsibility of providing assistance to the public who have complaints or make inquiries regarding the insurance industry. These complaints and inquiries are received via telephone, mail, walk-ins and from the Department's investigators. It is essential that investigations be conducted quickly and the investigation reports be prepared accurately, logically and promptly. The main goal of this Section is to provide the best possible services to Georgia insurance consumers, both individuals and businesses. In January 1991, the Consumer Services Section implemented a Computer Database Management System. The System is providing statistical data critical in the successful completion of this Section's mission and goals including the development of the intake unit, which assists consumers immediately. More complicated cases are forwarded to the case unit, disaster team and hot line. In addition, the Department handles speaking engagements, training and seminars for consumers, and inter-office training. The increased load of hearing requests, which are done within a 24-hour period, and self-insured cases are now being handled by this Section. The Consumer Services Division has recovered $21,690,761.33 for Georgia consumers for additional insurance claims since 1991. 240 OFFICE OF COMMISSIONER OF INSURANCE Total Budgeted Positions as of October 1, 1994 -- 324. Conmissioner Deputy Conmissioner Executive Office 7 Administrative Division 61 - Provides personnel services for the Department - Supplies educational materials and information to the public - Provides staff support to the Conmissioner's Office - Provides accounting ser- vices for the Department - Prepares budget requests for the Department - Coordinates printing, supplies and procurement services for the Depart- ment - Enforces compliance of insurance, industrial loan and fire safety laws and regulations - Suspends or revokes licenses and levies fines for violations of the laws and regu- lations - Administers court-appointed rehabilitation and/or liquidation of insolvent insurers I Insurance Division 131 - Administers State insurance laws and regulations - Reviews and approves policy forms - Acknowledges rates when appropriate - Reviews applications for certificates of authority - Examines insurance companies - Administers tax laws relative to insurers - Prepares and conducts all license exams and license agents - Administers pre-need funeral service contracts - Administers workers' compensation group selfinsurance program - Administers third party prescription program - Coordinates consumer complaints and inquiries - Administers insurance holding company laws and health maintenance laws Industrial Loan Division 10 - Administers the Georgia Industrial Loan Act - Reviews applications for industrial loan licenses - Accounts for fees payable by industrial loan companies - Examines all industrial loan companies - Administers tax laws relative to industrial loan companies I Safety Fire Division 115 - Administers, inspects and licenses facilities for compliance with State fire safety laws - Administers Federal standards concerning the construction of mobile homes - Administers Federal standards affecting life and fire safety in hospitals and nursing homes Investigates fires of suspicious nature for arson and assists in prosecution when appl icable - Licenses and inspects liquefied petroleum gas facilities - Administers the Blasting Standards Act of 1978 - Licenses and inspects motor vehicle racetracks 241 DEPARTMENT OF LABOR Budget Classes/Fund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Capital Outlay Payments to State Treasury Per Diem, Fees and Contracts (ITPA) Total Expenditures/Appropriations Less Federal and Other Funds ~ Federal Funds N Other Funds Governor's Emergency Funds Total Federal and Other Funds STATE FUNDS POSmONS MOTOR VEHlCLES 67,313,209 6,154,530 1,069,701 10,003 2,428,683 1,537,722 3,885,146 7,689,094 1,253,053 939,795 1,774,079 66,493,115 160,548,130 141,426,097 2,661,451 5,000 144,092,548 16,455,582 1,843 11 71,501,432 6,264,963 1,233,196 828,050 1,637,595 4,291,127 5,057,247 1,281,287 1,774,079 60,142,357 154,011,333 136,375,145 1,603,486 25,000 138,003,631 16,007,702 1,920 11 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y. 1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 66,661,469 5,609,533 1,102,315 68,328,006 7,427,071 1,346,643 479,071 11,165 7,500 68,138,958 7,424,929 1,346,137 68,138,958 7,424,929 1,346,137 903,198 2,187,517 3,020,853 8,302,843 1,166,682 1,013,125 1,774,079 69,792,752 161,534,366 844,965 2,150,518 3,249,280 7,151,101 1,343,321 3,685,000 1,774,079 66,500,000 163,799,984 15,600 3,757 5,500 3,338 525,931 844,965 2,150,518 3,164,280 7,151,101 1,343,288 3,685,000 1,774,079 66,500,000 163,523,255 844,965 2,150,518 3,164,280 7,151,101 1,343,288 3,685,000 1,774,079 66,500,000 163,523,255 142,487,770 1,870,346 143,764,978 1,832,318 143,764,978 1,832,318 143,764,978 1,832,318 144,358,116 17,176,250 1,920 11 145,597,296 18,202,688 1,920 11 525,931 13 145,597,296 17,925,959 1,920 11 145,597,296 17,925,959 1,920 11 DEPARTMENT OF LABOR F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 17,176,250 CONTINUATION ADDITIONS 1. To accurately reflect increases in safety inspections, administrative assessments and collected penalties and interest. 749,709 TOTAL ADDITIONS 749,709 NET CHANGES 749,709 TOTALSTATEFUNDS-CONTINUATION 17,925,959 243 DEPARTMENT OF LABOR Functional Budget Summary F.Y. 1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 1. Administration TOTAL 27,871,775 STATE 5,330,899 TOTAL 29,100,084 STATE 5,421,641 2. Employment and Training 133,662,591 11,845,351 134,423,171 12,504,318 TOTAL APPROPRIATIONS 161,534,366 17,176,250 163,523,255 17,925,959 RECOMMENDED APPROPRIATION: The Department of Labor is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $17,925,959. 244 DEPARTMENT OF LABOR Roles and Responsibilities The Department ofLabor is empowered to administer federal labor programs and to enforce various state laws pertaining to labor, with an overall mission to promote the economic wellbeing of the state. The Department, through its programs and wide spectrum of services, plays an important role in the development of the state's work force. Major areas of responsibilities of the Department are in training, services, protection and information. TRAINlNG In a joint partnership with businesses and other community leaders, the Department provides job training to economically disadvantage youth and adults, older workers, summer youth, and dislocated workers to increase employment opportunities and improve the quality ofthe labor force in the state. Through the Georgia Job Training Partnership program, authorized and fimded under the federal Job Training Partnership Act (lIPA), the Department's responsibilities include: Administering over $75 million in federal funds annually as grants and contracts. Issuing regulations and monitoring programs to ensure operations in accordance with applicable federal and state laws. Providing technical assistance and training to local staff to improve program administration. Approving local job training plans. Managing a performance standards system and tracking local operations against federal standards to determine areas of excellence, award of incentive funds and the need to assist or sanction local programs. During the past fiscal year, over 35,000 Georgians participated in one or more of the Partnership programs. The Partnership is directed locally in each of the state's 22 service deliveIy areas by a private industry council that participates in the unified planning process and oversees implementation of the planning function. Basic program decisions regarding what job training is needed in an area are made by the council. SERVICES The Department reduces the adverse impact of unemployment by providing monetary payments to eligible individuals for a limited period, and by assisting employers in minimizing their unemployment insurance tax liability. During F.Y. 1994, approximately 423,184 unemployment claims were filed with the Department. The Department also provides federally-fimded supplemental benefits to unemployed job seekers who have exhausted their regular unemployment insurance benefit. One of the Department's primary responsibilities is the administration of the public employment service in the state. Through a statewide network of 52 offices, the Department provides an array of services which include: Referral of qualified applicants to employers who have listed job openings. Counseling and other services to help evaluate workers' job skills and better prepare them for available jobs. Referral to services provided by other agencies in the community, such as job training, adult education, vocational rehabilitation, veterans' programs, medical care and supportive services. A total of 39,505 applicants received employment or vocational counseling in F. Y. 1994. The Department also provides basic readjustment services for "dislocated workers" whose job losses resulted from changing technology or other economic conditions. These services include assessment, counseling, testing, and job search and relocation assistance. Additionally, the Department serves 765 at-risk youth at 17 sites located in school systems statewide through its Jobs for Georgia Graduates program; provides employment service to disabled individuals who register for the service; and provides placement and employment service to migrant/seasonal farm workers and Armed Forces veterans who are making the adjustment from military life to a civilian environment. PROTECTION The Department has responsibility for administering Georgia laws regulating the employment of children and regulatory responsibility of equipment such as amusement and carnival rides, elevators and escalators, safety glass, high voltage apparatus, boilers and pressure vessels. The Department processed 52,711 work permits for students during F. Y. 1994 and the Safety Engineering staffperformed a total of 30, 102 safety inspections of elevators, boilers and amusement rides. INFORMATION Compiling and disseminating labor market information is a primary responsibility of the Department. Available information includes data on employment, unemployment, worker availability, wages and historic and projected trends. Several of the statistical series published by the Department, such as Georgia Labor Market Trends and Area Labor Profiles, serve as key indicators of the state's economic health. AUTHORITY Titles 8, 34, 39 and 46 of the Official Code of Georgia Annotated. 245 DEPARTMENT OF LABOR Programs and Services Federally funded programs comprise almost all of the Department of Labor's activity in its mission to promote employment and employability throughout the state. Of the Department's total appropriation, generally about 89 percent is obtained from federal fund sources. Ten percent is obtained from collected state administrative assessments; penalty and interest funds associated with the Unemployment Compensation Fund; and state funds collected from mandated inspections of facilities regulated by the Department. Actual state initiated and :fi.mded programs account for less than one percent of the Department's activities and funding. Major federal program areas are in Unemployment Insurance, Employment Service and programs under the Job Training Partnership and Placement Act. State programs provided by the Department are Safety Inspections and Child Labor Inspections. UNEMPLOYMENT INSURANCE Service provisions for unemployment insw"ance consist of claims processing and benefits payments, appeals and hearings, and employer tax functions. Workers who become unemployed through no fault of their own may be eligible to receive unemployment insurance benefits while seeking work. These weekly benefit payments replace part of the worker's lost income and help promote economic stability in communities affected by layoffs and business closings. Current unemployment insurance benefit payments range from $37 per week to a maximun of $185 per week for up to 26 weeks. Extended benefits allow an additional 13 weeks whenever the unemployment rate exceeds five percent. The Emergency Unemployment Compensation Act, which went into effect in November 1991, provides federally-funded supplemental benefits up to an additional 20 weeks to unemployed job seekers who have exhausted their regular unemployment benefits. Unemployment insurance is financed by employer taxes paid under the Federal Unemployment Tax Act. Reserve funds for the payment of regular unemployment benefits are held in the Unemployment Insurance Trust Fund. Georgia's Trust Fund is consistently among the most solvent funds in the nation and had a balance of $968,336,976 at the end of F.Y. 1994. In addition to making claim determinations and processing benefits checks, the Department also hears appeals, investigates fraud, and collects/processes employer wage reports and unemployment insurance. EMPLOYMENT SERVICE Employment Service activities involve maintenance ofa job bank, intake, referrals and placement. The Department utilizes automation in maintaining a bank of job listings. Job listings can be retrieved by a specific geographic area, statewide or nationwide through an Automated Job Information System. The system enables FUND SOURCE I PROGRAM STATE FUNDED PROGRAMS Child Labor Inspections Ga. Commission on Women CURRENT APPROPRIATION $399,944 65,000 TOTAL STATE FUNDS COLLECTIONS FUNDED Administrative Assessment Penalty and Interest Safety Inspections $464,944 $11,494,000 3,282,336 1,934,970 TOTAL COLLECTED FUNDS FEDERAL FUNDS Unemployment Insurance Employment Service Job Training Partnership Act (JTPA) Veteran's Program Bureau ofLabor Statistics Other Federal Funds TOTAL FEDERAL FUNDS $16,711,306 $40,430,446 17,236,934 78,465,593 3,598,764 1,478,890 2,615,760 $143,826,387 %of BUDGET 0.25% 0.04% 0.29% 7.12% 2.03% 1.20% 10.35% 25.02% 10.67% 48.58% 2.23% 0.92% 1.62% 89.03% 246 job applicants to search for job openings through a network of 316 computer terminals located in the Department's 52 field offices statewide. The Department also has established a direct computer linkage with the interstate Job Bank in Albany, New York. This facility serves as a hub allowing 54 state employment service agencies to exchange information on job listings and applicants. The system gives job seekers access to information on jobs in other states and provides employers with a way to recruit nationwide. With this computer linkage, the Department of Labor can directly exchange updated job order information daily. Under service provisions for intake, referrals and placement, the Department conducts an assessment of job seeking applicants in matching qualified applicants and their specific skills with employers seeking those skills. For unemployment insurance claimants, the Department's Claimant Assistance Program provides job search training, employment counseling, job development, job matching and referral, and referral to other agencies and services when further assistance is needed. A total of 27,263 claimants participated in the program inF.Y. 1994, which resulted in a savings of over $17 million to Georgia's Unemployment Insurance Trust Fund. These savings are the result of intensive efforts to return unemployment insurance claimants to work as quickly as possible. General public employment services provided by the Department include counseling, employability development, referral and testing, along with Migrant Seasonal Farmworker outreach and assistance, alien labor certification, and training/reemployment services for workers displaced due to the imposition of federal import tariffs and changing economic conditions. When job losses result from changing economic and technology conditions, the Department's field services offices provide basic readjustment services for job-ready dislocated workers who require minimal assistance with their job search in order to move back into suitable employment. Moreover, the federal Trade Act of 1974 provides special benefits for eligible workers who have lost their jobs or whose hours of work and wages have been reduced due to increased imports. After certification of Trade Act petitions by the U.S. DeplU1ment ofLabor, workers receive benefits including the employment-related services referenced above. Upon exhaustion of unemployment insurance compensation, Trade Readjustment Allowances are also paid to persons enrolled in approved training. For employers requesting alien certification, the Department processes labor certification applications as authorized by the Wagner-Peyser Act and Immigration and Nationality Act. The Department's Jobs for Georgia Graduates program is a comprehensive school-to-work transition program which focuses on youth considered most at risk for unemployment or who do not plan to seek higher education. Specific areas of assistance include career association advisement, employability skills instruction, job placement, job development and follow-up services. There are also service delivery provisions for remediation needs and basic skills education. A total of 765 youths are currently participating in the program at 17 sites located in school systems throughout the state. Since 1987, approximately 2,599 students have been served, and for the 1993 program year, approximately 98.8 percent of students enrolled in the program completed requirements for graduation and 84 percent were placed in jobs, post-secondary institutions or the military. JOB TRAINING PARTNERSHIP ACT (JTPA) Department programs under the federal Job Training Partnership Act (JTPA) provide employability assessment and training for economically disadvantaged adults and youth. Job training services were provided to approximately 37,000 disadvantaged and dislocated Georgians. Specific services for each type of activity provided under JTPA are: Title II-A Adult and Youth Program The Title II-A program is the largest single JTPA program for assisting disadvantaged adults and youth. An annual average of over 13,000 clients receive training during the year. Follow-up telephone interviews conducted with former participants of Title II-A programs indicated that 65 percent of all adults leaving the program had found employment within 13 weeks. Title II-A Education Coordination and Grants Program The Title II-A Education Coordination and Grants Program provides education and support services to complement occupational training. Examples of services include remediation and counseling. Administered by the Georgia Department of Education, the program provided education services to 1,839 participants duringF.Y. 1994. Title II-A Older Workers Program The Title II-A Older Workers Program targets year-round training activities serving economically disadvantaged persons 55 years of age or older. During the 1993-1994 program year, the Older Workers Program served 636 disadvantaged older persons in Georgia through limited grants awarded on a competitive basis to service delivery areas. The number of enrollments for the 1993-1994 program year was up 25 percent over the previous year's total. Title II-B Summer Youth Employment and Training Program The Title II-B Summer Youth Employment and Training Program provides training during the summer months to economically disadvantaged youth. More than 11,000 youth were enrolled in the Title II-B summer program. Enrollments for the 1993-1994 program year showed an increase over the previous year, due largely to special supplemental funds added to existing grant awards. Title m Worker Adjustment Program The Title III Worker Adjustment Program provides training and employment assistance to workers who have lost their jobs as a result of layoffs, plant closings or economic conditions. A total of 9,089 Georgians were served during the 1993-94 program year, a decrease from the previous year's enrollment of 11,527. Jobs Corps The DeplU1ment provides recruitment and placement services for the federal 247 Jobs Corps Program. This nationwide program provides training for economically disadvantaged young people between the ages of 16 and 24. During F.Y. 1994, 1,055 Georgia youth enrolled in Job Corps centers. Other federally funded programs and services assisting in the Department's efforts to promote employment and employability are veterans programs and labor market information. VETERANS PROGRAMS The Department provides intensive services to service-connected disabled veterans,Vietnam veterans and veterans who are recently seperated from militllI)' service. Through its Transition Assistance Program, the Department conducts workshops for personnel making the transition from militllI)' to civilian life and their spouses on eight militllI)' installations. In the workshops, participants learn jobseeking skills to enable them to compete more effectively in the civilian labor market. Approximately 600 participants are served monthly. A Georgia MilitllI)' Transition Council, chaired by the Commissioner of Labor, is established to further assist personnel transitioning out of the militllI)'. Through its efforts targeted at local veterans and disabled veterans the Department has found jobs for 12,795 Georgia veterans and served over 69 percent of the disabled individuals who registered for service provisions, placing 1,027 in jobs. LABOR MARKET INFORMATION Labor market information is gathered and assimilated by the Department's Labor Information and Economic Development Division to provide users with data on employment, unemployment, worker availability, wages and employment trends. Users of the information include individual workers, employers, economic developers, employment and training program planners, economists, researchers and economic forecasters. Much of the information is produced in cooperation with the U.S. Bureau of Labor Statistics and provide key indicators of the state's economic health. Labor market and other economic information is also invaluable to businesses that are considering locating or expanding facilities in Georgia. SAFETY INSPEcrIONS The responsibility for promoting and protecting the safety of Georgia's citizens is carried out through a variety of state mandates regulated by the Department's Safety Engineering Section. Through the levying of inspection fees, inspection and regulatory services provided by this section are self-supporting and require no appropriation from general state revenues. The safety programs include the regulation of boilers, pressure vessels, elevators, escalators, safety glass, high voltage and amusement park and carnival rides. These inspections include existing equipment as well as new installations, and during F:Y. 1993, a total of 31,884 safety inspections were conducted. The Public Employee Hazardous Chemical Protection and Right-to-Know Program is also administered by this section, and during F.Y. 1994, it approved 75 hazardous communications plans and conducted 20 on-site technical surveys. Collection of occupational injury, illness and fatality data, under a state/federal cooperative agreement, was obtained from some 8,100 employers and refmed for release to data users during F.Y. 1994. CHILD LABOR INSPECTIONS The Child Labor Inspection Program, which is the sole Department program that requires an appropriation of state funds, provides for the regulation and inspection ofchild labor laws through the processing of employment certificates for youth and inspections . of youth worksites. Inspections focus on violation of federal child labor laws with respect to hazardous occupations and number of hours of employment. The program processes an annual average of over 50,000 permits or employment certificates for youth entering the workforce. COMMISSION ON WOMEN The Georgia Commission on Women, attached to the Department for administrative purposes, holds public hearings throughout the state that address a variety ofwomen 's issues in its mission to promote and provide advisory assistance to state, local and community organizations for women. - 248 DEPARTMENT OF LABOR 1. Number of child labor requests reviewed 2. Number of elevator and boiler inspections conducted 3. Number of elevators and boilers certified 4. Number of amusement ride inspections 5. Unemployment claims filed 6. Applications for employment assistance 7. Number of individuals counseled for employment service 8. Individuals placed in employment training 9. Enrollments (JTPA) Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED 50,108 52,711 58,000 34,898 28,932 32,794 24,656 29,921 22,040 1,018 1,170 1,068 456,571 639,888 423,184 622,799 514,611 691,079 32,769 39,505 39,323 83,872 39,099 96,144 35,016 100,646 38,000 F.Y.1996 RECOMMENDATIONS 68,000 31,428 31,407 1,228 509,650 605,983 47,626 110,212 38,518 249 DEPARTMENT OF LABOR Total Budgeted Positions as of October 1, 1994 -- 1,928. CCN1Wissioner of Labor 6 Program Analysis 18 Provides management assistance and program review functions - Provides employment services, t.akes unemployment insurance claims, provides spec ia1ized services for Veterans, dislocated workers, and economically disad- vantaged youth Unemp 1oyment Insurance (UI) 428 - Provides administrative functions and technica 1 assistance for UI - Processes UI claims and employer tax payments, hears appeals, investigates fraud - Collects delinquent taxes and tax reports Collects claimant overpayments - Administers Child Labor Inspections program Employment Service 76 - Provides planning, palie i as, procedures, tra i ni"9 , reporting, and technical assistance for Employment Service programs - Provides field offices support Job Tra ining 40 - Manages JTPA grants - Provides recipient services - Performs compl iance audits Deputy Commissioner Finance Systems and Audits 3 Deput.y Commissioner Administration 3 Internal Audits 7 - Prov ides i nt.erna 1 investigations Financial Services 58 - Provides accounting payroll and bUdget services Information Services 144 - Provides data processing services Support Services 47 - Provides ma i 1room , printing, supply, courier, records management, procurement, and property control services Human Resources 18 - Prov ides personne1 funct ions Safety Engineering 37 Performs saftey inspections of businesses to administer State elevator, boiler, and carniva 1 and amusement. ride laws Facilities Management 14 - Provides and controls services for maintenance, parking, space rental and telecCN1Wunications in the Sussex leasing and maintenance of facilities, and a 11 telecommunications services Labor Information 48 - Collects and compiles labor market information Economic Development and Employer Relations 7 Responsible for economic development and employee relations functions 250 DEPARTMENT OF LAW Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Library Books Total Expenditures/Appropriations Less Federal and Other Funds Other Funds Governor's Emergency Funds Total Federal and Other Funds N til """ STATE FUNDS POSmONS 8,144,051 465,108 93,495 36,956 461,537 461,527 381,674 101,464 109,919 10,255,731 1,698,219 107,929 1,806,148 8,449,583 145 8,218,888 568,075 89,306 88,483 438,946 1,368,099 156,698 114,317 139,775 11,182,587 1,711,974 500,000 2,211,974 8,970,613 146 F.Y.1995 CURRENT BUDGET FINANCIAL SUMMARY I AGENCY REQUESTS F.Y. 1996 F.Y.1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS 9,471,091 504,005 102,540 26,136 455,147 60,000 342,637 125,317 140,000 11,226,873 9,674,644 608,291 98,800 46,505 462,438 60,000 381,590 130,413 147,000 11,609,681 1,271,736 70,140 9,900 48,750 127,600 15,860 1,543,986 9,895,480 579,299 126,550 55,871 480,438 60,000 344,778 136,388 147,000 11,825,804 363,871 33,259 5,400 24,375 62,500 10,595 500,000 10,259,351 612,558 131,950 55,871 504,813 60,000 407,278 146,983 147,000 12,325,804 906,767 905,940 905,940 905,940 906,767 10,320,106 154 905,940 10,703,741 154 1,543,986 26 905,940 10,919,864 159 500,000 13 905,940 11,419,864 172 DEPARTMENT OF LAW F.Y. 1996 Budget Summary GOVERNOR'S RECOMMENDATIONS F.Y. 1995 State Appropriations 10,320,106 CONTINUATION ADDITIONS 1. Annualize the cost of the 4.0% merit pay increase authorized in F.Y. 1995 and provide for other personal services adjustments. (The Department requested $203,553.) 149,173 2. Add operating expenses to provide a full range of legal services to state agencies. (The Department requested $180,082.) 50,585 3. Transfer of funds from court costs within the Department of Corrections to add 5 positions to assume primary responsibility for issues related to Cason v. Seckinger. 400,000 TOTAL ADDITIONS 599,758 NET CHANGES 599,758 TOTAL STATE FUNDS - CONTINUATION 10,919,864 IMPROVEMENTS 1. Allow for salary enhancement of 5% for merit performance based raises and to provide a salary structure that is more competitive with the courts and other governmental attorneys. See Pay Package 2. Add 13 positions to deal with increases in the number and complexity of cases handled by the Department. The recommendation adds 6 attorneys, 2 paralegals and 5 support staff. (The Department requested $1,074,112.) 500,000 TOTAL IMPROVEMENTS 500,000 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 11,419,864 RECOMMENDED APPROPRIATION: The Department of Law is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $11,419,864. 252 DEPARTMENT OF LAW Roles and Responsibilities The Department of Law, headed by the Attorney General, provides legal representation and advice to agencies, officials and employees in the executive branch of state government. The Attorney General is the chief legal officer of the state and is a constitutional officer elected to a four-year term in the same general election as the Governor. DUTIES The Department of Law represents the state in civil and criminal actions, in all capital felony actions before the Georgia Supreme Cowt, in all actions before the U.S. Supreme Court, and in all actions against a district attorney. Another duty of the Attorney General is to provide opinions on any question oflaw involving the interests of the state or duties of any department. The Department of Law also prepares and reviews contracts and other legal documents in which the state is interested and drafts proposed legislation or rules and regulations for state agencies. The Department investigates the conduct of state agencies, officials, or employees, and firms or corporations for violations in their dealings with the state. The Attorney General and his staff are authorized to prosecute civil and criminal actions to recover loss, damage or injury to the state. The Department also operates the State Law Library, a noncirculating law and legislative reference library for use by state government officials and employees, and the general public. DEPARTMENT ORGANIZATION To accomplish its duties, the Department is organized into a Department Head's Office, 11 law practicing divisions, an administrative division, a computer services division and the State Law Library. The 11 law practicing divisions provide a full range oflegal services to designated state departments, authorities and agencies. The Law Department is reimbursed by the state agencies for litigation expenses incurred, such as court costs, witness fees, filing costs, reporting costs, etc. The 11 law practicing divisions are the: Government Services Division. Conservation Division. Criminal Division. Transportation and Construction Division. Fiscal Affairs Division. Real Property Division. Personnel Affairs Division. Government Operations Division. Business and Professional Regulations Division. Public Safety Division. Litigation/Special Prosecution Division. AUTHORITY Article 5, Section 3, Paragraph 1, Georgia Constitution; Title 45, Chapter 15 of the Official Code of Georgia Annotated. 253 DEPARTMENT OF LAW Programs and Services The Department of Law does not develop and operate programs on its own initiative, but serves as the attorney for state agencies in the executive branch of government. In the last few years, the Department's workload has increased in volume and complexity. New program initiatives and almost every statutory revision results in state agencies requiring the legal advice and representation provided by the Law Department. During F.Y. 1994, the Department received 8,462 requests for its legal services -- an increase of 18% over the previous year. The Law Department has been called upon to provided legal counsel in the establishment ofthe Georgia Lottery Corporation, in cases arising from the Georgia Tort Claims Act, and in challenges to the state's tax statutes and to the 11 th Congressional District. Examples of other cases and issues requiring the Department's legal services are: Prison population increases. Environmental protection. Road construction projects. PRISON POPULATION The Department represents the state in all capital felony appeals, in habeas corpus proceedings, and in other litigation involving state prisoners. Approximately, one of every 15 prisoners engages in some type of litigation, not counting habeas corpus. Therefore, the number of inmates in confinement directly affects the number of lawsuits defended by the Law Department. As the prison capacity and inmate population have grown, so has the number of cases handled by the Department. During F. Y. 1994, the attorneys in the Department's Criminal Division had an average caseload of 285, up from 255 inF.Y. 1992. In addition, the Department received ten new death penalty cases last year, increasing the total number of inmates on death row to 108 as ofJuly, 1994. Death penalty cases are time consuming and routinely involve the use of expert witnesses, such as psychiatrists and psychologists. ENVIRONMENTAL PROTECTION A number of new and expanded federal and state environmental programs has led to increased litigation in this area. Examples of programs the Department's staff attorneys have worked on are: Hazardous Waste Management Hazardous Site Response Solid Waste Management Underground Storage Tanks Water Resource Management Air Quality Protection ROAD CONSTRUCTION The Law Department represents the state in the acquisition, through purchase, lease or condemnation of all property required for the construction of highways. The Governor's Road Improvement Program, as well as other road construction projects authorized under federal and state laws, have contributed to workload increases for staff attorneys. The Law Department also represents the Department of Transportation in all of its civil litigation to include property damage claims, wrongful death actions, personal injury actions, environmental litigation, damage recovery and administrative proceedings. The Department is counsel to all departments, agencies and authorities on matters related to construction activities. This includes the preparation and examination of contracts for architectural and engineering services, as well as contracts for the actual construction or repair of state buildings, roads, and bridges. CASELOAD With the increasing number of cases, the Department's attorneys cannot handle the entire workload. To meet its legal obligations in a reasonable amount oftime, the Department contracts with private attorneys, Special Assistant Attorneys General (SAAGs), to handle a variety of cases. During F. Y. 1994 the Department contracted with 344 SAAGs at a cost of $14.5 million. Almost 50% of the total fees and expenses were incurred for legal work done on behalf of the Department of Human Resources and the Department of Transportation. - DEPARTMENT OF LAW FY 1994 PER DIEM AND FEES FOR SAAGs AND BOND COUNSEL Total Fees and Expenses Department of Human Resources Depmiment of Transportation Collections Department of Administrative Services Department of Corrections Fleet Finance and Voting Rights Cases Georgia Lottery Corporation Remaining Client Agencies 3,827,898 3,105,807 1,182,449 1,058,789 1,046,084 751,696 478,625 3,028,562 TOTAL 14,479,910 Percent of Total 26.4 21.5 8.2 7.3 7.2 5.2 3.3 20.9 100.0 254 DEPARTMENT OF LAW Program Information F.Y.1993 ACfUAL F.Y.1994 ACfUAL F.Y.1995 BUDGETED F.Y.1996 RECOMMENDATIONS 1. Cases, Administrative Hearings, Potential Litigation -. Received 4,267 5,177 5,436 5,708 2. Cases, Administrative Hearings, Potential Litigation -- Closed 3. Cases, Administrative Hearings, Potential Litigation -- Ending Balance 3,414 8,789 4,297 9,669 4,512 10,152 4,737 10,660 4. Transactions -- Received 5. Transactions -- Closed 6. Transactions -- Ending Balance 2,916 3,051 962 3,285 3,083 1,164 3,449 3,237 1,222 3,622 3,399 1,283 State Funding Department ofLaw Fiscal Years 1990 - 1996 $8.7 $7.9 Millions 1990 1991 1992 1993 1994 1995 1996 Fiscal Year 255 DEPARTMENT OF LAW Total Budgeted Positions as of October 1, 1994 -- 154. At.torney General 3 Execut ive Ass i stant Attorney Genera1 Deputy Attorneys General Advice Litigation Administration 4 :covernment Services Division \ 14 - Represents the State before State and Federa1 courts - Handles litigation and matters related to health, child and adult _ ~~~~~~~i::di~~~i~~~ other pub 1ic assistance programs Conservation Division 9 - Represents the State before State and Federal courts, as well as at quasi-judicial hearings - Provides legal representation in matters relating to t.he environment, defense, tourism and agriculture Criminal Division 15 - Represents the State in capital felony appeals and in State and Federa I habeas corpus Transportation and Cons~ruction Division 10 - Represents the Department of Transportation in all legal matters - Represents State Agencies and Authorities in construction contract matters and lit igat ion Iriscal Affairs IDiVision 12 - Hand 1es tax and revenue litigation in State and Federa 1 courts - Provides legal representation in the issue and sa le of genera1 obl igation and revenue bonds Real Property Division 10 - Handles a 11 real property transactions for the State except those :~i1~;nr~~:p~~~:~~~n - Represents most State Author i ties - Provides appropriations and contract advice Personnel Affairs Division 10 - Represents all State Agencies in employment discrimination in State and Federal courts - Handles all matters relating to labor relat ions and State pens i on systems Government Operations Division 11 - Represents the State before State and Federal courts. as well as at quas i-judie ia1 hearings - Handles inquiries concerning county and municipa 1 officers. public education and elections BUS i ness and Profes- sional Regulations r 15 - Provides legal representat ion to 1icensing and regulatory boards. bar exami ners and the Secretary of State (less elections) Public Safety Division 16 - Represents the State in matters concerning State law enforcement Agenc i as. Judges. District Attorneys. the Department of Corrections, and the State Board of Pardons and Paroles IFomputer Services IDiVislon Provides word processing. data process iog and control of documentation services lit igation/Specia1 Prosecution Division 4 - Represents the State before State and Federal courts in tort 1itigation - Assists other divisions in civil litigation - Assists other divisions in litigation training - Prosecutes publ ic corruption on State level - Prosecutes criminal and civi 1 cases as directed by the Governor or requested by District Attorneys Administrative Division 9 - Coordinates office duties - Hand 1es budget. f i sca 1 and personnel matters IFtate law library (iViSiOn Ma i nta i ns bound 1aw YO 1urnes and other legal publications - Maintains the State legislative and law Reference library 256 DEPARTMENT OF MEDICAL ASSISTANCE RECOMMENDED STATE APPROPRIATIONS FORFY. 1996 INCREASE OVERF.Y. 1995 BUDGET CONTINUATION FUNDS IMPROVE:MENT FUNDS $1,344,623,942 $51,198,159 $1,328,669,000 $15,954,942 HIGHLIGHTS $24 million to continue providing payments ofmedical services for Georgia's Medicaid eligible population. In F. Y 1996, it is estimated that more than one in seven Georgians, or 17 percent of the state's population, will be covered by Medicaid. Over 44,000 private providers statewide participate in the Medicaid program by providing health care services to enrolled recipients. Medicaid coverage for health services continues to focus primarily on Georgia's aged, blind and disabled population and pregnant women and children with low income and limited resources. Approximately half of all newborn deliveries that occur in Georgia each year are paid for by Medicaid. In addition, 57 percent of all Medicaid recipients are children under the age of 21. $15.2 million to increase reimbursement rates for 1,383 hospital, nursing home, and home health providers statewide. The Governor recommends updating cost reports and applying the most current inflation factors in order to maintain a fair reimbursement rate for these major providers of Medicaid services. Payments to these three provider groups comprise 57 percent of all Medicaid expenditures. The Governor's recommendation reflects a $28 million savings in state funds from cost containment initiatives in the Non-Emergency Transportation (NET) program. In the last ten years, NET expenditures have increased 2,866 percent, comprising 3.1 percent of the total Medicaid budget compared to .4 percent in 1984. $1 million in state funds to develop a Management Information System (MIS) database for enhanced Medicaid information. The database will provide the necessary information support for the Department's managed care initiatives including the Georgia Better Health Care program and the proposed Health Maintenance Organization (HMO) pilot project. Additionally, the database will provide more advanced information to support program evaluation, budgeting, and cost containment efforts. The MIS database would receive 50 percent federal funding. RECOMMENDED APPROPRIATIONS AS A PERCENTAGE OF THE BUDGET 12.6% STATE FUNDING DEPARTMENT OF MEDICAL ASSISTANCE Sl~~ ~1~82 .,. ..'..' S972.-5 ~~~.7 S7j.7 ~~.1.' S5~1l$ .' ~~w, $3~J (MILLIONS) I I I 1988 1989 1990 I I I 1994 1995 Proj. 1996 Proj. 257 DEPARTMENT OF MEDICAL ASSISTANCE FINANCIAL SUMMARY Budget ClasseslFund Sources I PRIOR YEARS F.Y. 1993 F.Y. 1994 EXPENDITURES EXPENDITURES F.Y.1995 CURRENT BUDGET I AGENCY REQUESTS F.Y. 1996 F.Y.1996 CONTINUATION IMPROVEMENTS F.Y. 1996 GOVERNOR'S RECOMMENDATIONS I I CONTINUATION IMPROVEMENTS TOTALS Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees and Contracts Computer Charges Telecommunications Audit Controls Medicaid Benefits Reserves for Medicaid Benefits Total Expenditures/Appropriations Less Federal and Other Funds ~ Federal Funds ~ Other Funds Total Federal and Other Funds STATE FUNDS POSmONS MOTOR VEIllCLES 12,502,712 3,263,215 104,026 294,578 923,920 49,427,095 16,560,430 299,843 633,388 2,438,792,234 257,986,609 2,780,788,050 12,938,103 3,916,876 123,124 70,890 560,739 59,817,347 19,282,070 355,261 765,486 2,833,591,741 292,705,714 3,224,127,351 1,740,913,424 78,625,662 1,819,539,086 961,248,964 308 4 2,024,282,646 91,348,056 2,115,630,702 1,108,496,649 306 4 13,726,336 4,007,985 188,400 74,644 885,000 74,483,924 19,138,965 425,000 772,500 3,523,208,009 44,325,329 3,681,236,092 14,479,127 4,664,984 204,500 39,500 885,000 78,567,416 22,874,346 425,000 772,500 3,739,345,430 3,862,257,803 2,313,997,569 73,812,740 2,387,810,309 1,293,425,783 306 4 2,402,543,882 92,539,441 2,495,083,323 1,367,174,480 306 4 78,148,031 14,259,774 4,928,289 191,867 37,883 885,000 74,786,240 27,357,162 425,000 772,500 3,654,523,393 78,148,031 3,778,167,108 47,934,686 3,030,195 50,964,881 27,183,150 2,360,601,910 88,896,198 2,449,498,108 1,328,669,000 306 4 734,000 47,708,348 14,259,774 4,928,289 191,867 37,883 885,000 75,520,240 27,357,162 425,000 772,500 3,702,231,741 48,442,348 3,826,609,456 29,917,551 2,569,855 32,487,406 15,954,942 2,390,519,461 91,466,053 2,481,985,514 1,344,623,942 306 4 DEPARTMENT OF MEDICAL ASSISTANCE F.Y. 1996 Budget Summary F.Y. 1995 State Appropriations (Includes $139,287,133 in Indigent Care Trust Funds) CONTINUATION REDUCTIONS 1. Adjust for F.Y. 1994 Medicaid benefits funded in the F.Y. 1995 Appropriation. GOVERNOR'S RECOMMENDATIONS 1,293,425,783 (16,728,379) TOTAL REDUCTIONS CONTINUATION ADDITIONS 1. Provide for increased utilization of Medicaid benefits. (The Department requested $58,042,692.) 2. Increase state funds to offset the decrease in the Federal Financial Participation (FFP) rate from 62.23% to 61.90% effective October 1, 1995. (The Department requested $19,164,572 based on a projected FFP rate of61.61%.) 3. Annualize F.Y. 1995 improvements, including implementation and expansion of the Severely Emotionally Disturbed Children, Early Intervention, and Mentally Retarded Waiver programs. 4. Cover processing costs for the estimated increase in number of claims from 59 to 73 million and associated postage costs and annualize increased claims and postage costs added in the Governor's F.Y. 1995 Amended Budget recommendations. 5. Develop an MIS database for enhanced Medicaid information. 6. Adjust Indigent Care Trust Fund. The Governor recommends including $250,000 for the Healthy Mother, Babies Best Start perinatal program. (Total Indigent Care Trust Fund: $146,300,000.) 7. Provide for basic continuation for administration, including temporary labor for the implementation of Georgia Better Health Care and HMO pilot projects. (The Department requested $3,258,013.) (16,728,379) 28,594,278 10,759,058 1,338,482 1,986,088 1,000,000 7,012,867 1,280,823 TOTAL ADDITIONS NET CHANGES TOTALSTATEFUNDS-CONTINUATION 51,971,596 35,243,217 1,328,669,000 259 DEPARTMENT OF MEDICAL ASSISTANCE GOVERNOR'S RECOMMENDATIONS IMPROVEMENTS 1. Update per case rates for inpatient hospital admissions based on the 1992 cost reports plus the most current DR! inflation rates, effective July 1, 1995. (The Department requested $5,169,920.) 2. Increase reimbursement rates for nursing facilities. The Governor recommends that per diem rates be updated based on the 1994 cost reports plus the most current DR! inflation rates, effective July 1, 1995. (The Department requested $14,539,034 which included $348,441 to extend computerization funding for nursing facilities.) 3. Increase reimbursement rates for home health agencies. The Governor recommends that per visit rates be updated based on the 1993 cost reports plus the most current DR! inflation rates, effective July 1, 1995. (The Department requested $1,165,103.) 4. Increase the reimbursement rate from $55.38 to $75.38 for providers who conduct health screening preventive services to school age children under the Health Check program. 5. Provide funding for the Healthy Mothers, Babies Best Start perinatal program, provided through the Maternal and Child Health Institute, to be matched with federal funds. Yes 14,097,989 1,157,499 332,454 367,000 TOTAL IMPROVEMENTS 15,954,942 TOTAL STATE FUNDS - CONTINUATION AND IMPROVEMENTS 1,344,623,942 PAYMENTS BY CATEGORY OF SERVICE Drugs 8.00% Medicare Premium 9.40% Nursing Homes 23.7% PAYMENTS BY AID CATEGORY Aged/Blind/ Disabled 57.30% AFDC 24.50% Other 0.20% RSM (1) 18.0 (1) - "Right from the Start Medicaid" program. Includes certain pregnant women and children who are not AFDC eligible. 260 DEPARTMENT OF MEDICAL ASSISTANCE Functional Budget Summary F.Y.1995 APPROPRIATIONS F.Y. 1996 RECOMMENDATIONS 1. Commissioner's Office TOTAL 60,515,270 STATE 2,356,104 TOTAL 61,410,947 STATE 3,027,233 2. Benefits 3,208,571,022 1,135,321,404 3,325,091,957 1,174,872,785 3. Long Term Care 1,347,171 516,503 1,142,257 468,097 4. Systems Management 24,288,004 6,353,528 33,251,825 10,183,016 5. Professional Services 2,347,775 1,001,508 2,361,336 1,012,116 6. Maternal and Child Health 872,783 332,213 996,827 395,564 7. Financial and Hospital Reimbursement 4,473,502 2,192,758 4,647,780 2,279,400 8. Nursing Home Reimbursement 4,851,441 2,425,720 4,998,605 2,499,303 9. Managed Care 2,044,167 936,542 2,005,656 918,795 10. Legal and Regulatory Services 5,404,741 2,702,370 5,335,266 2,667,633 11. Indigent Care Trust Fund 366,520,216 139,287,133 385,000,000 146,300,000 TOTAL APPROPRIATIONS 3,681,236,092 1,293,425,783 3,826,242,456 1,344,623,942 RECOMMENDED APPROPRIATION: The Department of Medical Assistance is the budget unit for which the following State Fund Appropriation for F.Y. 1996 is recommended: $1,344,623,942. Average Annual Cost per Recipient by Age 6000 5000 .I.I.I 4000 .!!! ~ 3000 2000 1000 0 0-5 Years $1,360 6-20 Years 21-44 Years 45-64 Years 65+ Years 261 DEPARTMENT OF MEDICAL ASSISTANCE Roles and Responsibilities The Georgia Department of Medical Assistance (DMA) operates the Medicaid program which pays for health care services for individuals or families with low income and limited resources. The mission of the Department is to provide prompt access to quality health care in the most appropriate setting. Medicaid is funded by state and federal dollars. The largest share of Medicaid costs is paid by the federal government. Georgia's Medicaid program receives various levels of federal reimbursement for different services and functions. For example, the federal government pays 90 percent of the cost of family planning services and 62 percent for most other benefits. Computer costs are 75 percent federally funded, and most other administrative costs receive 50 percent federal funding. ADMINISTRATION Administrative costs represent less than three percent of total expenditures. Electronic Data Systems (EDS) is the fiscal agent for the Georgia Medicaid program. While DMA is responsible for the administration of the program, EDS processes claims and maintains reporting systems which enable the Department to monitor the program and enforce its policies and procedures. Working with EDS, the Department processes over 50 million claims annually. The Department works to ensure accurate and appropriate payment for services using a claims processing system with an intricate series of computer edits and audits. Program integrity and compliance with state and federal regulations are monitored through reviews, audits and investigations. When overpayments are identified, the Department makes collections. Other measures such as precertification and prior approval have been instituted to prevent payment for services which are not appropriate or medically necessary. In F.Y. 1994, collections and measurable cost avoidance saved over $700 million. The national trend in state Medicaid agencies is for contracting and capitation for services. This allows these agencies to control expenditures and to more accurately project budgets. DMA intends to seek ways in which it can enter into contracts for services wherever possible to contain costs. Medicaid coverage is available for certain people based on eligibility requirements, such as income, resources or assets, as specified by law. Some categories of eligibility are mandated by the federal government while others are optional. The Department contracts with the Georgia Department of Human Resources (DHR) to determine eligibility. DMA works with DHR's Division of Family and Children Services to see that eligibility determinations are accurate. Georgia maintains an error rate below the federal tolerance level of three percent. BENEFITS Making health care available and accessible to medically indigent Georgians is the focus of the state's Medicaid program. A broad array ofservices is available to address the needs of those covered by the program. Reimbursement for physician, pharmacy, hospital and nursing facility services account for almost 76 percent of benefit expenditures. MeOicaid pays for inpatient hospital services when services cannot be provided on an outpatient basis. Most inpatient hospital stays must be certified prior to admission. Services are reimbursed at a flat rate for each admission. Reimbursement for outpatient hospital services is based primarily on reasonable costs. Hospital reimbursement accounts for approximately 32 percent of benefit expenditures. Medicaid pays for care in institutional settings for recipients who are unable to remain at home or in the community. Nursing facilities are reimbursed using per diem rates calculated from standardized cost reports. Certification is required prior to admission to determine the level of care needed by the recipient. The Department contracts with the Georgia Medical Care Foundation to perform this function. Reimbursement for nursing facility services accounts for aproximately 23 percent of benefit expenditures. Medicaid pays for services provided by licensed physicians. More than 84 percent of all recipients visited physicians last year. The Department uses a statewide maximum allowable fee schedule for physician services. Physician services account for close to 13 percent of benefit expenditures. Drugs requiring a prescription, insulin, diabetic supplies and certain nonprescription drugs are covered by Medicaid. A few drugs require prior approval. The Department contracts with the Georgia Pharmacy Foundation to review and process requests for prior approval. Reimbursement for drugs accounts for 8 percent of benefit expenditures. A variety of other services account for 24 percent of benefit expenditures. Among the services in this category are health check screenings for children under 21, dental services, mental health services, transportation, home health and laboratory services. AUTHORITY Title XIX ofthe Social Security Act; Title 49-4, Official Code of Georgia Annotated. 262 DEPARTMENT OF MEDICAL ASSISTANCE Programs and Services In F.Y. 1995, Medicaid will pay for health care services to 1.2 million individuals. Payments for services are projected to total $ 3.4 billion or approximately $2,833 per recipient. Since F. Y. 1986, the number of recipients has risen 145 percent, largely due to eligibility expansions mandated by the federal government. However, the Department is now experiencing a decline in the rate of growth in recipients (six percent projected forF.Y. 1996). While the program was experiencing 15 to 25 percent annual increases in benefit expenditures during the late 1980s and the early I 990s, the state is now seeing a slowdown in the rate of growth in benefits. F.Y. 1995 projected expenditures reflect a 10 percent increase over F. Y. 1994. The Governor's recommendation for F.Y. 1996 represents a seven percent increase. Per recipient costs have remained fairly flat, increasing less than five percent annually since F.Y. 1991. The Department has worked to maximize the federal portion of the budget by refmancing programs in the Departments of Human Resources and Children and Youth Services. Federal Medicaid dollars now help to support programs such as targeted case management for adults and children in protective services, treatment for severely emotionally disturbed children in specialized and institutional foster care, and targeted case management for children at risk of incarceration. Aggressive management programs and a sharpened focus on cost containment are largely responsible for holding down the program costs. The Department is pursuing managed care options through two pilot programs: Georgia Better Health Care and enrollment of Health Maintenance Organizations (HMO). The goals of these .programs are to reduce Medicaid expenditures, reduce inappropriate utilization of medical services, improve access to appropriate care, encourage and enhance continuity of care, and increase the use of preventive services such as immunizations and health checks for children. GEORGIA BETTER HEALTH CARE Georgia Better Health Care (GBHC) is a Medicaid primary care case management program currently operating in 19 counties. GBHC is a pilot program authorized through federal waiver of certain Medicaid regulations. The program contracts with primary care physicians and providers to deliver, coordinate and manage the health care of Medicaid recipients. Enrollment in GBHC is mandatory for all Medicaid recipients living within the target counties, except for those residing in nursing facilities, personal care homes, mental hospitals, and other domiciliary facilities, as well as recipients with short- specialty care and inpatient admissions. The primary care case managers receive a monthly case management fee of $3 .00 per recipient for coordinating the recipient's health care services, regardless of whether the recipient is seen by the provider. When other services are provided, the regular fee-for-service reimbursement applies. The Georgia pilot primary care case management program began October 1, 1993 in seven counties. Currently, 465 primary care providers deliver and manage care for approximately 90,000 Medicaid recipients in Dougherty, Baker, Lee, Calhoun and Terrell Counties in the Albany area; Richmond, Burke, Candler, Columbia, Evans, Jefferson, Jenkins, Lincoln, McDuffie and Screven Counties in the Augusta area; and Whitfield, MEDICAID RECIPIENT & AVERAGE COST TREND PERCENT CHANGE FROM FY 1988 BASE 120 100 - .:. 80 I:l t...:...l.. 60 t It 40 20 __J - - - - .,-- ..-- 0 I 88 89 ---'I"" - I 90 _ -Ir- - - - - - - .... - - - - - - - I I I I 91* 92* 93* 94* Fiscal Year - . _. Recipients - - . - - Average Cost per Recipient *Does not include Indigent Care Trust Fund term Medicaid enrollment. Each of these recipients is linked to a primary care provider who is responsible for providing primary care services and authorizing Catoosa, Murray and Walker Counties in the Dalton area. Another 13 counties (Fannin, Gilmer, Bulloch, Sumter, Crisp, Early, Miller, Seminole, Decatur, Mitchell, 263 Colquitt, Grady and Thomas Counties) and approximately 50,000 recipients are scheduled to be phased into the program by April 1995. HEALTH MAINTENANCE ORGANIZATIONS The Department is developing a managed care program to be initiated as a demonstration in five metro Atlanta counties (Clayton, Cobb, DeKalb, Fulton and Gwinnett). The Department will contract with HMOs to provide a comprehensive array of health care services to Medicaid eligibles who choose to enroll. The Department intends to offer contracts to every state licensed HMO that applies for a contract and meets the state's standards for participation. The target date for start-up of the pilot is late spring of 1995. The HMO contract will focus on the needs of women, particularly pregnant women, and children. Financing incentives will be included to encourage HMO contractors to achieve much higher Health Check screenings and immunization rates than are currently experienced in the regular, fee-for-service program. HMOs will be required to demonstrate that they have made a good faith effort to encourage Medicaid enrollees to participate in their health plan for preventive health care, rather than waiting until they have an acute need for medical services. HMOs will be compensated based on a per-member, per-month capitated rate deVeloped by an actuarial firm. The rates will be age and gender specific by aid category. All HMOs will be required to provide the same basic Medicaid services and encouraged to provide expanded services. All HMOs will be paid the same rates, which will be less than 100 percent of expected fee-for-service expenditures for an equivalent population. Of the approximately 200,000 Medicaid eligibles in the pilot area, it is estimated that 81,000 will be enrolled in HMOs by the end of the third year. INDEPENDENT CARE WAIVER PROGRAM The Independent Care Waiver Program (ICWP) was initiated in 1992 to offer services to help adult Medicaid recipients with severe physical disabilities live in their own homes or in other community placements instead of in an institutional setting. To be eligible for this program, a recipient must meet one of the following criteria: Is medically stable enough to leave the hospital but cannot do so without advocacy groups run by and for people with disabilities engage in fund raising efforts to obtain assistance for rent, food and utilities and provide extensive peer support and resource development. Currently, 43 ICWP slots are funded, and there are 87 individuals on the waiting list. The cost per slot is $47,500 compared COST COMPARISON Independent Care Waiver vs Institutional Setting $150,000 $100,000 $50,000 SO-"'---"---+--"-----.L--"----+---"-----./ FY94 FY9S m (Avenge per dleat.,.. per yar) IMtltUtionaJ setting Independent C_ Walv., support services. Would be admitted to a hospital on a long-term basis without support services. Could return from out-of-state nursing home if support services were available. Is at immediate risk of nursing home placement. The ICWP is a unique program that offers services that meet the individual needs of each participant. Among the services are case management, home modification, skilled nursing, transportation, companion services, medical equipment and supplies, occupational therapy, counseling and personal emergency response services. Independent Care funds may not be used for room and board. Local planning and to an annual cost of $179,000 in an institutional setting. INDIGENT CARE TRUST FUND Georgia's Indigent Care Trust Fund, which was established in 1991, uses interagency transfers from hospital authorities which serve a higher than average number ofMedicaid and other low income patients to match additional federal dollars. During F.Y. 1995, the 69 participating hospitals contributed $139.3 million which was matched with $227.2 million in federal funds for a total trust fund of $366.5 million. Most of these funds are used to help participating hospitals recover a portion of the cost of providing services to patients unable to pay for their medical care. 264 About 74 percent of these hospitals are in rural areas of the state; without the trust fund, many of these hospitals would have been forced to close or to seek help through higher county taxes. Improving access to health care for indigent Georgians is a primary objective of the trust fund. Hospitals must use at least 15 percent of their trust fund receipts to provide and expand primary care services. Additionally, the fund has been used to expand coverage to pregnant women and children. MATERNAL AND CHILD HEALTH Under Governor Miller, proceeds from the Indigent Care Trust Fund (ICTF) have been used to expand Medicaid coverage to over 100,000 additional pregnant women, infants and children. ICTF proceeds have also been used to: Expand perinatal case management statewide. Provide an incentive payment of $100 to physicians who initiate prenatal care to Medicaid recipients in the fIrst trimester. Provide an add-on payment to hospitals which offer birthing and parenting classes to Medicaid recipients. Reimburse for two postpartum visits in the home. Provide funds to the Department of Human Resources to expand family planning services. Provide funds for the "Healthy Mothers, Babies Best Start" prenatal care incentive program in cooperation with Grady Memorial Hospital, the Maternal and Child Health Institute, private businesses and health providers in DeKalb and Fulton Counties. Recruit and train women to serve as a resource for pregnant teens and siblings who may be at risk of conceiving or fathering children. In 1992, funds were appropriated for substance abuse day treatment services designed to help pregnant women overcome their addiction and deliver healthy babies. Substance abuse day treatment placements are available for approximately 200 recipients annually with programs located in Atlanta, Brunswick, Macon and Statesboro. All children under 21 covered by Medicaid can receive preventive health care under Health Check. Health check provides comprehensive examinations and immunizations. In an effort to improve the health screening rates among school-age children, the Governor's F. Y. 1996 budget recommendations include funds to provide an incentive payment of $20 to providers for each school-age child receiving the Health Check screening. This incentive would more fairly compensate the practitioner for the additional time it takes to perform a physical examination; obtain a medical, social, and educational history; and provide health education appropriate to the older child. STATE MEDICAID FRAUD CONTROL UNIT DMA currently has a staff of 10 employees who respond to inquiries of potential abuse, investigate abuse claims 1993, states must establish a State Medicaid Fraud Control Unit within the Attorney General's Office or an investigative agency such as the Georgia Bureau of Investigation (GBI). Federal matching funds will support the unit at a rate of 90 percent for the fIrst three years and 75 percent thereafter. The Governor proposes to issue an Executive Order to establish the Medicaid Fraud Control Unit in the GBI. He also plans to strengthen the state's efforts against fraud and abuse. The operation of the unit will consist of support from DMA, the Law Department, the GBI and the Department of Audits. DMA will retain some staff to screen incoming information and work as liaison with the GBI. The investigation will then be passed on to the GBI. The Law Department will hire eight positions to handle prosecutions for the unit and four auditors will be hired to assist Indigent Care Trust Fund FY I",. [ill]] Hospital Pay Adjustment EJ EUgibi6ty Expansion FYI'95 ~ Primary Care and work with the Attorney General's Office to prosecute cases. State funds are matched 50 percent with federal funds in support of this unit. Under provisions of the Omnibus Budget Reconciliation Act of the umt m investigations. Under the Governor's proposal, staff support for the unit will be increased from 10 to 37. 265 DEPARTMENT OF MEDICAL ASSISTANCE Program Information F.Y.1993 ACTUAL F.Y.1994 ACTUAL F.Y.1995 BUDGETED F.Y.1996 RECOMMENDATIONS 1. Benefits recovery collections 2. Audit savings (nursing homes) 3. Dollars saved by pre-payment review 4. Dollars saved by prior approval of procedures 5. Number of cases reviewed for quality control 6. Number of surveillance and utilization reviews 7. Number of investigations for fraud and abuse 8. Cost avoidance and recoveries due to monitoring TPL resources, including Medicare 9. Expenditures for Medicaid benefits (Includes the Indigent Care Trust Fund) 10. Medicaid recipients of services $35,775,511 $7,741,922 $7,012,433 $1,288,070 4,963 635 824 $45,810,042 $8,585,748 $7,390,240 $1,358,963 4,714 751 583 $52,681,548 $9,015,035 $7,654,732 $1,422,444 4,800 816 1,000 $637,697,003 $726,043,741 $798,648,115 $2,696,778,843 $3,126,297,455 $3,567,533,338 944,378 1,058,918 1,164,809 $56,632,664 $9,240,411 $8,003,691 $1,502,074 4,900 816 1,000 $838,580,521 $3,702,231,741 1,234,697 Growth in Recipients FY 92 - 96 projected 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 O-J