FOL.IO GA Gl:J;;.o .S I g8 lo/tfs BUDGET REPORT Fiscal Year 1998 Zell Miller, Governor Director of the Budget Tim Burgess, Director Office of Planning and Budget QUOTE ON COVER: United States Senator Daniel Webster, in a speech on the Senate floor in 1830 supporting the sovereignty of the Union against claims that states had the right to nullitY the Union. CONTENTS Governor's Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 6 Highlights of the Governor's F.Y. 1998 Recommendations 8 An Economic Report 14 Results-Based Budgeting 18 State Strategic Plan--1997 20 Reader's Guide 22 FINANCIAL SUMMARIES Estimated State Fund Availability, Budget and Surplus 26 Georgia Revenues, Actual and Estimated 27 Expenditures and Appropriations by Department -- State Funds. . . . . . . . . . . . . . . . . . . . . . . .. 28 Expenditures and Appropriations by Department -- Total Funds 29 Sources of State Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 30 How State Dollars Are Spent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 Statement of Financial Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 Revenue Shortfall Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 33 Lottery Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 34 Lottery Reserves '.' 38 Governor's Redirection Recommendation . . . . .. 39 Recommended Salary Adjustments 40 Agency Budget Estimates 44 DEPARTMENT BUDGET SUMMARIES State Organization Chart 46 LEGISLATIVE BRANCH General Assembly. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 48 Department of Audits 49 JUDICIAL BRANCH 51 EXECUTIVE BRANCH Department of Administrative Services 55 Department of Agriculture 73 Department of Banking and Finance 85 Department of Children and Youth Services 92 Department of Community Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 106 Department of Corrections 126 Department of Defense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 151 State Board of Education 160 Employees' Retirement System , . . . . . . . . . .. 187 State Forestry Commission 196 Georgia Bureau of Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 208 Georgia State Financing and Investment Commission . . . . . . . . . . . . . . . . . . . . . . . . . . .. 221 Office ofthe Governor 227 Department of Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 244 Department ofIndustry, Trade and Tourism 298 Office of Commissioner of Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 313 Department of Labor 325 Department of Law 337 Department of Medical Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 346 Merit System of Personnel Administration 359 Department of Natural Resources 372 Department of Public Safety 392 Public School Employees' Retirement System 406 Public Service Commission 409 Regents, University System of Georgia 420 Department of Revenue 454 Office of Secretary of State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 467 State Soil and Water Conservation Commission 478 Georgia Student Finance Commission 488 Teachers' Retirement System 501 Department of Technical and Adult Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 510 Department of Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 524 Department of Veterans Service 539 State Board of Workers' Compensation 549 State of Georgia General Obligation Debt Sinking Fund . . . . . . . . . . . . . . . . . . . . . .. 558 CAPITAL OUTLAY Summary of Funds Recommended by the Governor 567 CAPITAL OUTLAY PROJECTS FOR F.Y. 1998 Department of Agriculture 568 Department of Children and Youth Services 569 Department of Community Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 572 Department of Corrections 573 State Board of Education 574 Georgia Building Authority 575 Georgia Bureau ofInvestigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 576 Department of Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 577 Department ofIndustry, Trade and Tourism 580 Department of Natural Resources 581 Department of Public Safety 583 Regents, University System of Georgia 584 State Soil and Water Conservation Commission 587 Department of Technical and Adult Education 588 Department of Transportation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 589 CAPITAL OUTLAY PROJECTED NEEDS FOR FISCAL YEARS 1999-2001 Department of Agriculture 590 Department of Children and Youth Services 591 Department of Community Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 594 Department of Corrections 595 Department of Defense 597 State Board of Education 598 State Forestry Commission .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 600 Georgia Building Authority 601 Georgia Bureau of Investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 602 Department of Human Resources 603 Department ofIndustry, Trade and Tourism 610 Department ofNatural Resources 611 Department of Public Safety 612 Regents, University System of Georgia 613 State Soil and Water Conservation Commission 617 Department of Technical and Adult Education 618 Department of Transportation .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 619 APPENDICES State Funds Surplus. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 622 Financing Capital Outlay Needs Through the Issuance of General Obligation Debt . . . .. 623 Constitutional and Statutory Bond Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 624 Total Debt Authorized by State in General Obligation and Revenue Bonds 626 Outstanding Debt Owed by State of Georgia 627 Principal and Interest Owed on Outstanding Bonds . . . . . . . . . . . . . . . . . . . . . . . . .. 628 State Debt by Percentage of Treasury Receipts 629 Authorized Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 630 The Budget Process in Georgia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 631 Glossary 634 ZeU Miller GOVERNOR STATE OF GEORGIA OFFICE OF THE GOVERNOR ATLANTA 30334-0900 TO MEMBERS OF THE GENERAL ASSEMBLY: Approaching the last two budgets of my Administration, I think it is important to concentrate most of our available resources towards completing the programs and projects that we have mutually launched over the last six years. I want Georgia to be able to compete nationally for the best teachers we can get. Therefore, I am recommending the third straight six percent salary increase for all of our teachers, including those in public schools, the University System and technical institutes. A chart on page 161 of this Budget Report dramatizes the fact that we are closing in on our goal. Higher salaries will attract better qualified teachers into our classrooms. It is these teachers who will ultimately define the achievements of our educational system. Also for education, I am recommending significant funding to manage growth and achieve excellence in all of our educational institutions.. .lottery funding to expand pre-kindergarten to a record 60,000 four-year-olds...expanded funding to provide HOPE and other lottery scholarship funds to 131,031 students...$66,350,888 in lottery and state funds that can be used to provide teacher training on how to effectively utilize technology in the classroom and to add to or replace some of the almost $200 million in classroom technology that has been purchased during my Administration...a reduction in the funded class size of our high schools from 23 to 20...and $108,740,000 in capital outlay bond funding for K-12 growth needs and equipment for our technical schools. Throughout this Budget Report, you will not find any funding for the old welfare entitlement program. Instead, on January 1, 1997, we replaced entitlement assistance with a block grant program called Temporary Assistance for Needy Families, which we call TANF. While spending on TANF will be about equal to the entitlement program, the focus will be on helping people to become self-sufficient and leave the program as soon as possible. We will focus on job preparation, work opportunities, child support enforcement and teen pregnancy prevention. Next to unemployment, teen pregnancy is the leading cause of welfare dependency. Ifwe can reduce teen pregnancy, we can continue the reduction in welfare rolls that we have witnessed over the last year. We must solve the problem of too many teens becoming mothers without the resources or maturity to support their children. I have also continued to place a significant emphasis on our University System. This budget provides the necessary funding to address the needs of a growing system; from $8 million to enhance the technology infrastructure to $126 million to enhance the physical infrastructure with new building construction. I am also recommending $1,950,000 to better prepare students to enter the University System and an increase of$1O.3 million to better maintain the classrooms and labs in which they will learn. In Fiscal Year 1998, we must continue to address the need for more space in our juvenile and adult prison system. For the Department of Children and Youth Services, I have approved funds to provide 1,130 new beds throughout the system and to annualize the operating cost of915 beds provided in the current state budget, increasing capacity to 4,040 beds. Funding is also recommended to operate 3,858 new adult prison beds that are in the process of being opened over the next year. Another critical need in state government is the necessity to improve the operating efficiency of our State Department of Revenue. A modernized Department with efficient management systems is an absolute must. Our process of tax collections and tag and title administration must be updated with the newest technology and systems development. Towards that goal, we are launching a five-year strategy called "Blueprint for Modernization." I have recommended that we appropriate $21,337,500 to fund the first phase of this program in the amended Fiscal Year 1997 and the Fiscal Year 1998 budgets. These investments will more than pay for themselves over time. State revenues will continue to grow for Fiscal Year 1998 at a rate of 4.6%. This is after we have set aside $152 million to account for the reduction of the sales tax on groceries by the third onepercent in October 1997 and after we have allowed for.all of our reserves to be full on June 30, 1998. Leaving this State to the next Governor with all of her reserves full is a major commitment of mine and one that I am determined to fulfill. With one more budget left in my Administration, I feel that we are on a schedule to meet the promises that I have made to the people of Georgia. I have prepared this Fiscal Year 1998 budget while constantly reviewing projections for the Fiscal Year 1999 budget. While our economy is slowing its rate of growth, it nevertheless remains strong enough, with prudent financial management and sound decision making, to provide the funding for us to complete our work a year from now. F.Y. 1998 BUDGET HIGHLIGHTS APPROPRIATIONS AND REVENUES Appropriations totaling $11,777,578,880 are recommended for expenditure by state agencies during F.Y. 1998, which begins July 1, 1997 and ends June 30, 1998. Officers working in high security mission institutions and a 5 percent supplement to food service and maintenance workers directly supervising inmates. LOTTERY FUNDS The appropriations would be funded from the following four sources: --$11,118,000,000 from taxes and fees as estimated by the Governor, an increase of 4.6 percent. --$510 million in lottery proceeds. --$148,828,880 from the Indigent Care Trust Fund. --$750,000 from anti-fraud levies. $510 million in lottery funds available for appropriation. These funds are recommended to be spent in four ways: --$208,545,359 for pre-kindergarten, 40.9 percent. --$175,439,127 for HOPE and other scholarship programs, 34.4 percent. --$68,496,592 for technology training, 13.4 percent --$57,518,922 for capital expenditures, 11.3 percent. SALARY ADJUSTMENTS PUBLIC SCHOOLS $321,057,345 to provide the following pay raises: --Six percent for public school teachers, effective September 1, 1997. --Four percent for school bus drivers and lunchroom workers, effective July I, 1997. --Six percent for University System academic personnel, effective September 1, 1997. --Six percent for University System non-academic personnel, effective July 1, 1997. --Six percent for technical institute instructors and statefunded librarians, effective September 1, 1997. --Pay for Performance increases to all state employees ranging from 0 to 7 percent in four increments: 0 percent, 4 percent, 5.5 percent, and 7 percent, effective October 1, 1997. This pay increase plan includes personnel in the central offices ofthe Department of Education, the Department of Technical and Adult Education and the Georgia Public Television Commission. --Four percent for the Department of Audits and the Judicial Branch, effective October 1, 1997. --Four percent for staff of the Legislative Branch, effective October 1, 1997. Supplemental salary increases of five percent to personnel in the Youth Development Worker and Facilities Police job classes of the Department of Children and Youth Services and five percent salary increases to Youth Development Workers who become POST certified. Also, a 5 percent conditional salary increase will be given to Correctional $116,100,917 to fund QBE formula increases caused primarily by growth in FTEs from 1,275,448 to 1,308,060, an increase of2.6 percent. $59,688,332 in redirected education funds to reduce the funded size of classes in high school from 23 to 20. The redirected funds will come primarily from the elimination of the high school and vocational lab programs ($39,974,187) and the removal of extended day from the high school program ($9,285,630). $23,408,440 to increase lottery spending for prekindergarten from 54,000 to 60,000 four-year-olds, increasing total expenditures over the current F.Y. 1997 budget to $208,545,359. The amended budget for F.Y. 1997 increased to 57,000 the number of students served and F.Y. 1998 funds will increase the total another 3,000 students. Launch a major initiative to provide funding to train teachers to integrate lottery-funded computers and technology into the classroom. The initiative includes: --$25,564,956 to fund a half-time technologist on site to provide teachers training in the use of computers and technology. --$39,241,800 to provide local schools $30 per FTE with the option of using the money to purchase technology and equipment, or for technology training. --$504,296 in state general funds to create two new technology training centers at University System sites, and 8 BUDGET HIGHLIGHTS $689,836 in lottery funds for equipment purchase and upgrade. $3,804,500 in lottery funds and $1,540,380 in general funds to implement a coordinated fund accounting, fmancial analysis and student information system in Georgia schools. The new system will replace GENESIS and begin to provide the state with more accountability in public school expenditures at school sites. It will also give Georgia taxpayers for the first time the ability to compare expenditures with achievements in the classroom. $97,835,000 in bonds to fund new construction and/or renovations and additions for 33 school systems. UNIVERSITY SYSTEM $49,467,822 in enhancements for the University System's 34 colleges and universities, including: --$23,509,822 for formula-related expenses, including a 1.7 percent increase in enrollment ($19,845,698) and other increases in operations ($3,664,124). $8 million to further preserve and protect the technology infrastructure ofthe University System, including $5 million in state general funds and $3 million in lottery funds. $1,950,000 for Partners in Success, a program designed to improve Georgia's secondary students' readiness for higher education and to help students develop skills needed for success in the workplace. Administration.Included in the funding is $4.5 million to complete the renovation of the Old Capitol Building on the Georgia Military College campus in Milledgeville and preserve its historical value and utility as a public school facility. $8,360,000 in support for initiatives of the Governor's Traditional Industries program, including $2,175,000 in bonds to purchase equipment for research projects, and $2.2 million in bonds to renovate plant and research facilities at the Food Science and Technology Building and to establish an Industry Interface Center for environmental research and development, both at the University of Georgia. $2 million for the Georgia Research Alliance, including $1.5 million to establish two eminent scholar chairs (digital commerce at Georgia State University and microbial physiology at the University of Georgia); and $500,000 for Technology Development Investments projects. These funds are in addition to $28 million for equipment and facilities in the F.Y. 1997 amended budget recommendations. $413,100 to renovate an existing facility at Georgia Tech's Center for Rehabilitation Technology for use as an Advanced Wood Products Laboratory to focus on research and development, and to train a potential work force, including people with disabilities. 1.5 million to expand the ICAPP, an economic development initiative that is designed to leverage the University System's assets. $9,903,735 to connect all K-12 schools, DTAE institutions and public libraries to the Internet through PeachNet access. $10.3 million to expand support for major repairs and rehabilitation throughout the University System by changing the funding formula from .75 to .99 percent of the F.Y. 1996 replacement value of more than $4.3 billion. $126,295,000 in bonds for 20 capital outlay projects throughout the University System and two other projects at facilities operated by the Board of Regents, increasing to more than $833 million the value of new construction for the state's 34 colleges and universities during the Miller TECHNICAL INSTITUTES $15.5 million in lottery funds to fund three capital outlay projects, increasing capital outlay funding during the Miller Administration to $204 million--the most extensive construction program for technical education in the state's history. The new projects include a technical institute satellite for Augusta-Burke County ($5 million); a regional business and industry training center for Heart of Georgia-Dublin ($5 million) and a new classroom building for overcrowded Ogeechee Technical Institute ($5.5 million). $9,276,761 to fully annualize the cost of opening nine new technical institute satellites and three technical institute 9 BUDGET HIGHLIGHTS expansions during F.Y. 1997. $1,643,539 to fund the opening of nine new technical institute facilities during F.Y. 1998. , $9 million in bonds to continue a multi-year program of repairs and renovations at the technical institutes. Youth Development Campus (YDC) system and 100 within the Regional Youth Development Center (RYDC) system. The expansion will increase capacity to 3,014 beds at the YDCs and 926 beds at the RYDCs. The Governor's recommendations include funding to annualize the operating cost of the expansion of916 beds that were added in the F.Y. 1997 budget. $3.5 million in lottery proceeds to replace obsolete instructional equipment systemwide. These funds are in addition to $1.5 million for equipment replacement in the F.Y. 1997 amended budget recommendations. $1,905,000 in bonds to equip facilities at Chattahoochee and North Georgia Tech undergoing major renovations and retrofitting. $1,641,740 to fund the first year ofa two-year phase-in to bring the Atlanta and Savannah technical institutes under state management, an action that will put 32 technical institutes under state management. The $19,400,000 in bonds include $14,200,000 to construct a new 150-bed Youth Development Campus in Sumter County, $1,580,000 to add a 25-bed unit at the Macon YDC; and $3,620,000 for renovations and repairs to existing facilities. $1,640,000 in bonds to design and construct a training facility for the Department of Children and Youth Services to be located atthe Public Safety Training Center. The center will be used to provide P.O.S.T. certified training for juvenile correctional officers in an initiative to address the increasing safety and security issues associated with incarcerated juveniles. ADULT LITERACY $2,080,000 for adult literacy to hire and equip 26 additional full-time adult literacy teachers, an action that will complete the Governor's plan to place one literacy teacher in every county. $9,200,000 in current bonds to be redirected to construct classroom facilities at the Eastman YDF ($3 million); construction of a new dining facility at the Bill E. Ireland YDC ($1.9 million); to expand the Metro RYDC by 25 beds ($1 million), and for major repairs and safety and security projects for existing facilities ($3.3 million). SCHOLARSHIPS HUMAN RESOURCES $6,180,275 to provide a second chance for students to earn a HOPE scholarship if they achieve a B grade point average after 45 quarter hours. Total funding for HOPE and other scholarships will increase to $208,545,359, ajump of$16,561,176 from the F.Y. 1997 funding level, with most of the funding coming from the state lottery. CHILDREN AND YOUTH SERVICES $14,883,302 in additional operating money and $19,400,000 in bonds to continue addressing the rapid growth in juvenile detention that is causing overcrowding at the state's juvenile facilities. The funds will provide for 630 new beds--530 at the The old welfare entitlement program has been replaced by a new program known as Temporary Assistance for Needy Families (TANF), which was launched on January I, 1997 and is funded in the amended budget for F.Y. 1997. Although spending under the revised budget will roughly equal expenditures under the old AFDC entitlement, the funds will be spent differently, focusing more on programs that will enable people to become self-sufficient and leave the program as soon as possible, and to prevent out-of-wedlock pregnancies that have created much of the need for welfare assistance. A rainy day reserve of$12 million using federal block grant funds--roughly 2.5 percent of spending in the first year--was set aside in the F.Y. 1997 amended budget to help Georgia's 10 BUDGET HIGHLIGHTS most needy families and children in case of future economic downturns. Since federal funding is capped under the new block grant--and there is no more entitlement--this reserve will help to ensure financial stability over the years. A reduction of $41,550,927 in total funds to reflect an estimated reduction in the number of welfare cases from 137,462 to 123,181 over a two-year period. F.Y. 1997 cases are estimated to drop to a level of 129,920, with a further dip in 1998. The F.Y. 1998 recommendations include $5,328,072 to continue new education, job training and placement measures started in the amended budget. Adults who are not working and have not received a high school diploma will receive support necessary to work toward their high school diploma, or GED, with emphasis on those adults up to age 25 with at least a tenth grade education. $3,492,545 to increase efforts to reduce teen pregnancy, a leading cause of welfare dependency. Reducing teen pregnancy will reduce the welfare rolls. MEDICAID $35 million in new state funds to continue providing payments of medical services for the 16 percent of Georgians eligible to receive Medicaid benefits. This represents a projected increase of 3.1 percent in benefit payments. $9.5 million from Indigent Care Trust Funds to expand the Children 1st program statewide, enhance teen pregnancy prevention efforts; and expand less costly community-based alternatives to institutionalization, targeted to the elderly and children. Federal matching funds will increase the total to $21.9 million for these initiatives. $37 million in state fund savings from various cost saving and cost containment initiatives in the state's Medicaid program, which serves one of every six Georgians. The cost savings are mainly centered on managed care, fraud and abuse, and provider reimbursement changes. WATER AND SEWER IMPROVEMENTS $3,495,989 in federal funds to add 88 staff in county DFCS offices to better coordinate our child care efforts and to determine eligibility for child care, as a way to ensure that the child care is reaching the right families and is of high quality. $2,773,300 to enforce child support obligations as a way of promoting parental responsibility by privatizing one-third of the non-TANF child support cases that are most at risk of going on welfare in the absence of any child support payments. $1 million in federal Substance Abuse Block Grant funds for services to pregnant and postpartum women in support of welfare reform. $9,380,000 in bonds to fund eight projects that make various types of improvements to the facilities operated by the Department of Human Resources. The projects include $605,000 to design a 196-bed maximum security forensic facility at Central State Hospital. $20 million in bonds to further expand the pool of money available to make low interest loans to local governments for water and sewer improvements. NATURAL RESOURCES $10 million to acquire additional land under the RiverCare 2000 program, increasing total funding for the program to $24.5 million. $1,368,000 to develop and establish adequate total maximum daily loads (TMDL) for 423 segments of Georgia's rivers and streams, as required by a federal court ruling against the federal Environmental Protection Agency (EPA). Although the ruling has been appealed by EPA, the state is preparing to comply with the federal court's desires within the five-year timeframe should the EPA not win the case on appeal. $1,725,000 in bonds to restore and preserve the Historic District on Jekyll Island. II BUDGET HIGHLIGHTS TRANSPORTATlON $110,000,000 in bonds to continue funding the Governor's Road Improvement Program, increasing funding for the progratp to $710 million during the Miller Administration. As of September 1996, over 42 percent of the 2,697-mile system had been completed or is under construction. $28.5 million in motor fuel funds to fully fund the off-system State Fund Construction Program. $14 million in motor fuel funds for the four-Ianingand multilaning program on the state road system. $17 million in motor fuel funds for projects of "greatest need"--projects identified by the department or other state or local entities as needed for economic development, congestion mitigation or safety. Tourism that will support the research and planning needed by the department and the Legacy Marketing program as well as support for the Governor and the General Assembly in the formulation of the overall state economic development strategy. $2,448,892 for a new Regional Economic Development Grant Program to encourage and support multi-county and regional collaboration for economic development. The department will r'edirect $1,967,500 and the Georgia Environmental Facilities Authority will redirect $481,392 to fund the new program. $200,000 for Georgia to join a 10-state group to participate in a public-private partnership to market the Southeast to the world. A total $5 million international marketing campaign will initially target the United Kingdom, Germany and Canada. $4.2 million in motor fuel funds for first-year funding to develop a comprehensive Transportation Information System over the next five years at a total cost of $53 million to help the department provide better information for making better decisions on future projects. $3.2 million in bonds to continue upkeep of dredge areas for Savannah Harbor. PORTS $27,790,000 in bonds for three new ports projects, including: $13.3 million to purchase two container cranes for CB7 at the Garden City Terminal; $8.7 million to expand Berth 13 at the Ocean Terminal in Savannah; and $5,790,000 to construct a 100,000 square foot Transit Shed adjacent to Berth 13. ECONOMIC DEVELOPMENT $1,091,164 to create a new Legacy Marketing Division within the Department of Industry, Trade and Tourism that will target growth industries with higher, value-added products that rely on new advanced technology and build on Georgia's competitive strengths. $598,327 to create a new Strategic Planning and Research Division within the Department of Industry, Trade and $150,000 in marketing funds for the International Trade Division ofthe Department ofIndustry, Trade and Tourism to establish an Incoming BuyersNisitors Program. $150,000 in marketing funds to be matched by $150,000 each from the Georgia Research Alliance and the University System to develop a multi-year marketing strategy that will more effectively position Georgia as a center for research and development. $500,000 in bonds to provide facility repairs and improvements at the state's visitor information centers. WORLD CONGRESS CENTER $10.5 million in bonds to fund the planning and design ofthe Phase IV expansion of the World Congress Center. The expansion is needed to keep the Congress Center competitive with exhibition centers in other cities that are expanding. CORRECTIONS $18,094,332 to fund the operation 00,858 new beds in the process of being opened in state prisons. These funds include $7,672,758 for 768 beds scheduled to open during F.Y. 1998; $7,893,805 to annualize the operational costs of 1,260 beds that opened during F.Y. 1997, and $2,527,769 to provide care 12 BUDGET HIGHLIGHTS and custody, medical and food costs for inmates placed in 1,830 beds added to existing prisons. GEORGIA BUREAU OF INVESTIGATION $3,930,000 in bonds to continue the expansion ofstate crime laboratories, including $3,285,000 to construct a new laboratory to replace the Columbus Branch Crime Lab and $645,000 to construct a new facility adjacent to the Macon Branch Crime Lab that will provide the fIrst medical examiner facilities in Middle Georgia. The new facility will include a morgue and autopsy area as well as offIce space. Medical examiner services will now be provided from four cities-Macon, Moultrie, Summerville and Atlanta. Three other initiatives are also recommended for the GBI: --$161,000 to expand the Crime Laboratory DNA profIle database on sexual assault cases to include both cases with and without suspects. --$128,700 to establish a statewide registry of violent sexual offenders to notify local authorities when offenders will be released from prison. --$197,000 to add four scientists and two clerk/transcribers for the Crime Laboratories to reduce a backlog in crime analysis and to assist with the growing number of cases each year. GEORGIA BUILDING AUTHORITY $30,050,000 in bonds to fund fIve projects involving government facilities, including $20 million to continue renovation of#2 Peachtree Building; $4,550,000 to renovate all floors and major mechanical systems at 244 Washington Street; $3 million to make ADA modifications; and $2.5 million to continue State Capitol renovations. REDIRECTION In the second year of Redirection, the Governor is recommending that $349,001,410 be redirected to higher priority purposes. However, $308,355,077, or 88 percent, of the funds are recommended for retention by the same agencies for expenditure on different programs. PRIVATIZATION The privatization offIve transitional centers and 17 diversion centers currently operated by the Department of Corrections. Savings of $1,965,814 are projected. $380,000 in savings by privatizing golf course maintenance and the elimination of 30 positions (Department of Natural Resources). PUBLIC SAFETY $867,500 to implement a new three-stage graduated driver's license for drivers under the age of 18 to reduce accidents and fatalities involving teenage drivers. A learner's permit would be issued to 15-year-old drivers, who would have to be supervised by a licensed adult at least 21 years old in the passenger seat. Drivers who remain accident- and convictionfree for six consecutive months would move to the second stage, which involves issuance of an intermediate license to 16- and 17-year-old drivers. Those drivers who remain accident- and conviction-free for 12 months are then eligible to receive a full, unrestricted license. The "graduated license" would also include restrictions on nighttime driving with certain exceptions, zero tolerance for alcohol or drugs, and will require all occupants to wear seat belts. $281,296 in savings by eliminating fIve positions in the Environmental Protection Division by discontinuing air quality monitoring for particulates at rock quarries and by privatizing the management and implementation of Georgia's Vehicle Inspection and Maintenance Program. (Department of Natural Resources) $77,310 in savings by contracting out operation of the Travelers Rest historic site in Stephens County, with the elimination of two positions. $650,000 in net savings in motor fuel funds by privatizing maintenance and operations of the Department of Transportation rest areas. $459,521 to implement privatization, outsourcing and staff at the Georgia War Veterans Nursing Home in Augusta. This privatization effort will begin on January 1, 1998. (Department of Veterans Service) 13 AN ECONOMIC REPORT THE ACTIVITY BASE FOR THE FISCAL YEAR 1998 BUDGET GoYernment budgets bridge the separation between the private and the public sectors of a state's economy. On the expenditure side, government's outlays on services and capital serve as indices of the output which will be delivered to businesses and individuals. On the revenue side, government's levy of taxes and fees on private activity registers the purchasing power which taxpayers will give up. Of course, a budgetary focus on fmancing inputs can give no specific insights about the magnitude (or worth) of government's value-added. Still, the budget does defme the crude dimensions of a bargain struck between voters and elected officials. A defmite amount of current private income is expected to be sacrificed for a prospective but ill-defmed flow of government output. More than that, the detail of planned spending on programs and services and of expected yields of various taxes and fees provides both elected officials and the electorate with information for judging the reward each can hope to reap from the bargain. Finally, the budget advertises a work plan for government for its taking from, adding to, and returning the pecuniary resources it has been given license to draw from the private sector. In Georgia, there are several public sectors. Accordingly, the State's budget must span the interstices among federal, local, and state sectors as well as between the state and the private sector. Yet, the exchange between the state government and Georgia's individuals and businesses is fundamental. Appropriately, its detail dominates the budget. I. Balancing for Continuity Georgia's constitution mandates that a state budget imbedded in an appropriation law must be "balanced". That is, the amount which government plans to spend in a given fiscal year cannot exceed the amount which government expects to have available from beginning surpluses and current collections in the period. Planned expenditures may be less than expected revenues would allow, an imbalance from below. However, foreseen excesses of spending over revenues, an imbalance from above, are ruled out. The conditional equivalence insures that what government spends on goods, services, or people in the private sector is no more than what the private sector in a given state of activity and expectation will provide to government through tax-and-fee channels which have already been established. Unlike the federal budget approach, balance in Georgia's budget is not necessary to protect against government borrowing in support of government services. Such protection has already been afforded by an accounting (commonplace among the states) which excludes borrowed monies from revenues. These "off-budget" monies, proceeds from the sale of bonds, are treated separately in a "capital budget". There, planned borrowing is exhausted, in time, by purchase or constniction of specifically-identified durables. The level at which this balancing occurs is constrained. By law, annual costs for interest and repayment of principal (debt service) must remain below ten percent of the net revenues flowing into the general-funds budget. Additionally, since debt service is included as an outlay in that budget, a further restraint on borrowing arises. Interest and principal payments always compete with (and, by law, win out over) the purchases of other inputs drawing upon expected taxes and fees. Since risks of deficit fmancing have already been hedged, the significance of the balancing requirement must lie elsewhere. Essentially, Georgia's budgetary balance gives assurance of the continuity of programs and allows compliance with a work plan within a fiscal year. It insures that what government proposes and what the electorate will pay are in accord. Bridges will be built all the way across the river and inoculation sequences will not be interrupted before they afford protection. So seen, real costs of several kinds never arise. Obviously, costs of time and money to renegotiate a public-sector strategy are avoided. So too are private and public shut-down and start-up costs for programs which might be discontinued. Finally, an erosion of the electorate's confidence in the quality of government decisionmaking is forestalled. The continuity provision of Georgia's budgeting has been significantly reinforced during the administrations of Governor Zell Miller. In the first place, to ensure that flows into and out of the private and public sectors of the economy remain in harmony, Governor Miller consistently uses as his revenue estimate the lower bound of an uncertainty range that surrounds any "best forecast" ofprivate activity and connected revenue yield. Under this practice, the revenue flow which is expected to result from government's outreach with taxes and fees is far more likely to be exceeded by actual collections than the flow is to fall short. Secondly, Governor Miller extends the notion of balance in a fiscal-year budget to balance in a fiscal-year fmancial plan. In addition to the appropriation, the "low-range estimate" is made to accommodate payments out of "excess collections" into the Revenue Shortfall Reserve (a "rainy-day" encumbrance of year-end surplus) and the Midyear Adjustment Reserve (a surplus-fmanced hedge against unforeseeable supplements needed at midyear for already-budgeted programs). Thirdly, the low-range estimate is made to cover the impact on current collections of legally-mandated adjustments to collections of an earlier period. Currently, the estimate covers payments (via refunds) to federal retirees whose income taxes in the 1980s were found by the United States Supreme Court to be in violation of federal law (Davis v. Michigan, 1989). Finally, Governor Miller makes the low-range estimate accommodate 14 a policy to shift forward to the next fiscal year some "excess revenues" which become surplus. Such inter-year transfers of funds can "smooth" the impact of a foreseen temporary slippage in revenues or of a phased reduction in taxes. The reduction of the 1997 estimate in order to carry revenues forward from 1997 to 1998 and so to be available to insulate the 1999 budget against the impact of eliminating the "fmal penny" from the sales tax on purchases of food well illustrates the procedure. By incorporating the four claims on revenues within a low-range estimate, Governor Miller establishes a fmancial balance which reinforces a budgetary balance. As a result, the risks of distortions and disruptions in government's programs are much reduced. II. Perspective on the State Government Sector In one popular image, government is simultaneously an institution which feeds its own growth, is inefficient in its choice and delivery of outputs, and is unresponsive to the electorate's preferences and needs. Whatever the origin of this casting, it does not fit Georgia's state government in the 19901996 period. Growth. Since government's output is not sold on a market, neither its volume nor its merit can be directly assessed and compared with output and qualify for other sectors. A measure of Georgia's state-government product is missing. While the measurement of growth might focus upon signallers of "needs" being satisfied, the "needs" that matter frequently have only a political expression. Their reflection is seen only in the costs and revenues reported in the state budget. The annual purchases which government fmances would rise over time if services expand with population and with the network of social and economic interactions that develop. Thus, in Georgia, it is not surprising that state revenues have grown substantially in, say, the past 25 years. In that period, population has climbed at an average annual rate of about 1.8 percent and personal income (adjusted for inflation) at a rate of about 3.8 percent. At the same, the State's revenues (adjusted for inflation) have climbed at an annual average rate of about 4.4 percent. Despite a severe recession, revenues climbed by a third in the 1970s. Under more stable conditions, revenues advanced by three-fifths in the 1980s. So far in the 1990s, revenues are up by about a third. Gross rates ofgrowth of course do not indicate whether the State's government, as an institution, is "feeding" an expansion of its importance. But, the ratio of claims of the state government on total personal income in the state when viewed over time does indicate whether government is becoming more dominant relative to the private sector. As is shown in Figure I, this ratio for Fiscal Year 1996 (6.45 percent) stands below that for the preceding economic peak in Fiscal Year 1990 (6.58 percent). It is also below the ratio for the post-war high at the activity peak in Fiscal Year 1974 (6.68 percent). Government does not appear to be increasing its relative economic claim. Another indicator of growth in the government sector is the proportion of total earnings (wages, salaries, and Percent 6.80, 6.63 FIgure I PROPORTION OF PERSONAL INCOME CLAIMED BY TIlE STATE FISCAL YEARS 1974 - 1996 S.7S I-r-----r-,-----,--,------,,---,----,---,---,--r--r-----r-,-----,--,---,---,----,---,-,..,.--, u u n w n ~ ~ U ~ ~ M% FIscal Yean proprietor's income) in the state made up by earnings in state government. Since it deals with direct "production" outlays, it is better suited to detect changes in government's importance in the short-run. This proportion has fallen from 3.6 to 3.3 percent from 1990 to 1995. Since the state's decline could have been made up by a local government increase, the ratio of local government earnings to total earnings also warrants examination. Again, the proportion falls over the 5-year period (from 11.0 percent to 10.4 percent). Thus, the state's government expenditures signal no current or recent "selfexpansion" of the state sector. Efficiency. Having no measure of output for state government, the efficiency with which its inputs are used cannot be evaluated directly. Obviously, the efficiency in the choice of output, a political selection, cannot be tested either. Yet, a crude indicator again appears. If it is assumed that government output is population-driven, the ratio of population to employment in state government can serve as an indicator of efficiency. Moreover, if it is assumed that per capita income registers a matrix ofneeds for services because it climbs with personal economic interactions, then the ratio of personal income (inflation-adjusted) to government employment becomes a registrant of efficiency. That ratio rises by almost 6 percent over 1990-1995. Consequently, there is at least a hint of improved efficiency of state government in Georgia. Responsiveness. Political accountability is not readily ascertained. Still, because of the unique pattern of economic advance in Georgia in the nineties, a ~coarse indicator of responsiveness emerges. Specifically, the economic recovery of the 1990s lacked the post-slump surge in output and employment. Instead of recovering strongly and quickly, activity growths lagged at first and then graduallY,. moved toward the rates that marked post-surge expansions in earlier upswings. As a result, the state's outreach into the private sector yielded revenues lower than trends of the eighties suggested would have been necessary to satisfy the public. Additionally, the growth in revenues that was recorded was too low to give government immediate hope of a return to prior revenue patterns. 15 An unresponsive government might have raised taxes in sales tax increase, the proportion rose to 89 percent and an effort to shift the revenue function upward to its "proper" remained there in Fiscal Year 1996. (and prior) growth plane. The MillerAdministration, instead, Among the major revenue sources, the importance of spearheaded a drive to do more with less, to downsize, to particular taxes has changed dramatically over the past 45 privatize, to outsource, to redirect spending, and, surprisingly, years. Motor fuel taxes have lost rank, dropping from around to cut taxes and thereby to initiate further revenue downshifts. 25 percent oftotal revenues in the 1950s to about 5 percent in Tax cuts were passed, first on incomes and then on the the 1990s. Corporation income taxes have on average purchases of food. Whereas the increase in the sales tax in accounted for approximately 7 to 8 percent oftotal collections 1989 had provided about a 10 percent revenue upshift at a time when revenues showed strong growth, the tax cuts of about one percent and 5 percent implemented in Fiscal Years 1995 and 1997 respectively were enacted when SBUUODS 10.6 Figure II GEORGIA'S STATE REVENUES: F.Y. 1980 -1996 (Adjusted for 4 Percent Sales Tax) (Ratio Scale) revenue yields were already 9.6 depressed. 8.6 In the main, the tax cuts shifted 7.6 yield functions downward but did 6.6 not change their slopes. Growth at 5.6 a lower revenue level was roughly as before. This may be seen in 4.6 Figure 11. the state budget in Fiscal Year 1996 is roughly $2.5 billion 3.6 below what it would have been if the time trend of collections prevailing through the 1980s and I I 80 81 ~ M M ~ M ~ ~ $ I I 00 ~ ~ M M ~ 00 Fiscal Years boosted by a sales tax increase in 1989 had continued. After reaching a growth peak in Fiscal Years 1980- 1982, revenues climbed much less rapidly in 1983. Revenues but, over economic cycles, have fluctuated widely in fell below trend. However, growth surged in 1984 and 1985 importance. From 1989 to 1996, for example, these taxes first pushing revenues above trend. A slower expansion rate in dropped roughly 30 percent by 1992 and then climbed about 1986 and 1987 headed revenues back to the growth plane of 80 percent by 1996. Such volatility has contributed to a the early eighties. There they remained until the recession of variable relationship between total revenues and private 1990-1991 dropped growth to almost zero. Revenues then fell personal income. Sales and use taxes in the 1950s were only far below the expansion path which the General Assembly and about a quarter of those generated by income taxes. Yet, by the Governor had affirmed as recently as the spring of 1989. 1989, the fraction had risen to two-thirds. Following the rate Gradually, growth resumed. From 1994 to 1996, revenues change, the proportion reached and has remained close to 80 advanced at roughly the trend rate of the 1980s. Nevertheless, percent. Income and sales taxes together have accounted for in Fiscal Year 1996, the state's revenues were some 25 percent roughly 85 percent of total revenues since 1989, up from 80 below what the earlier growth trend would have demanded. percent in the eighties. By lowering taxes at a time when economic growth was Obviously, there have been many tax changes over the pushing revenues off their expansion path, the Miller years. A substantial increase was implemented in 1989 and Administration "permanently" put Georgia's state government cuts were made in 1994 and 1996. Except for the sales tax on a downshifted revenue track. In view of the nationwide increase, adjustments have been mainly to the level of sentiment to contain government, the actions take by Governor collections rather than to their rates of growth. Yield Miller in the 1990s must be judged highly voter-responsive. functions have been shifted but marginal rates (except for 1989) have been little changed. A slight long-term decline in III. Perspective on Government Outreach the sensitivity of revenue yield to private economic activity Since 1951, when Georgia's 3-percent general sales tax has nevertheless occurred. It can be explained by the was implemented, the proportion of total state revenues shrinking relative importance ofthe taxable base in the case of generated by individual income, corporate income, sales and sales taxes and by a movement of taxable incomes (partly use, and motor fuel taxes has been rising. From the economic inflation-tied) past the bracket boundaries in the case of peak in Fiscal Year 1953 to Fiscal Year 1989 (when the state individual income taxes. sales tax was raised to 4 percent), the dominance of these Certainly, sensitivity to cyclical economic variations sources rose from 82 percent to 88 percent. Following the remains. Revenues again dropped much more sharply than 16 personal incomes in the recession of 1990-1991; they rose more rapidly than personal income (though the difference was less dramatic) in the expansion of 1992-1996. IV. Perspective on the Private Sector The economic coupling between the government and the private sectors, periodically at least, is quite loose. Hence, to see the Georgia economy, highlights of recent performance in Georgia's government economy must be supplemented with those for the private economy. Growth. In the eighties, personal income (adjusted for inflation) climbed by roughly 50 percent. From the cyclical peak in 1982 to that in 1990, real personal income climbed at approximately 5 percent per year. Employment rose at about 4 percent per year at the same time. This strong advance was fuelled by an increase in the participation rate exaggerating uda Peak -100 130 11. F1I;ure m EMPWYMENT IN GEORGIA IN THE RECOVERIES OF 1 _ AND 19900 (Pc.k: Ift1, I"') 11. ':1-1__1 3 4 Yean After Peak. m 19801 19901 the boost in labor force resulting from a 2 percent per year population gain. The 1983-1985 recovery was vigorous. Income growth climbed to 9.9 percent and employment growth touched 7.8 percent before each trailed off into the 3 to 4 percent range of a sustained expansion. From 1990 to 1996, the private economy again earned a reputation for performing well. Georgia experienced a brief decline from mid-1990 to mid-1991. But, like the Nation, the recovery in Georgia was lackluster and delayed relative to historical profiles.. Importantly, there was no quick resurgence that could have returned the state to the growth-plane of the eighties. As seen in Figure III, growth in Georgia's employment in the first six years following the economic peak in the nineties was only a third to two-thirds as strong as in the eighties. Personal income growth (adjusted for inflation) was also weaker in the 1990s. It climbed at an annual average rate 00.6 percent, barely three-fourths of the rate ofthe eighties. The growth that occurred was in the main people-driven. Wholesale and retail trade employment climbed by 22 percent in Georgia (9 percent in the U.S.) and services employment by 42 percent (23 percent in the U.S.). Significantly, employment in state and local government (also, "people driven") climbed by only 7 percent in the State (versus 8 percent in the Nation). Overall, the level of employment grew at an annual average rate of2.7 percent. Activity tied to the Olympic Games bolstered the private economy at least from 1992 forward. Venue construction began that year and ended shortly before the activity tied to the Games themselves began in the midsummer of 1996. The earlier phase, long ongoing and fully integrated into the activity structure, provided no clear-cut evidence of economic acceleration. Whether other activity would have been induced had the Olympics not been scheduled is not known and the "impact of the Olympics" is uncertain as a result. When the Games were held, wholesale and retail employment and services climbed by about 3 percent for a two-month period. The personal income gain for 1996 appears to have been raised by almost one percent as a result. Despite this assist, neither Georgia's private nor public sector reflected growth like that which had been experienced in the eighties. Efficiency. Perhaps the most basic manifestation of economic efficiency in the private sector is the advantage which the growth in personal income registers over growth in employment. In the eighties, the "productivity gain" was an unremarkable one percent per year. In the nineties, the improvement was essentially the same. Performance. Remembering that the economic system is intended to provide individuals with improved wellbeing, the ability of the economy to raise per capita personal incomes becomes a measure ofperformance. In the eighties, the rate of increase was 2.3 percent per year. In the nineties, it fell to 1.7 percent. Nonetheless, Georgia's per capita income came closer to that of the Nation. While 91.5 percent of the U.S. level was the highest level achieved in the eighties (1988), the level in 1996 reached 93.7 percent. V. Prospects With the Olympics now passed, the rates of growth in the public and private sectors are slipping to markedly lower levels. Yet, a "basic" economic momentum prevails. Revenues (adjusted for inflation) are advancing at around a 4 percent annual rate. Income growth is presently in the 3 to 4 percent range and employment gains are in the 2 to 3 percent range. No disruptive imbalances serious enough to end the expansion are presently in sight. In the U.S. and Georgia, the business expenditure boom that has driven the recent quarters ofthe expansion shows signs of flagging. Consumer spending . is being constrained Qy high debt ratios and by satiation stages in the cycles of buying durables and housing. In Georgia, moreover, growth in employment in trade and services leads the Nation and, at 5 to 6 percent, appears out of sync with the general economic advance. Despite these limitations, overall growth in Georgia's private sector appears well above stall-speed. For Fiscal Years 1997 and 1998, random variations around the real growth trends in income, employment, and revenues of 3 to 4, 1.5 to 2.5, and 3.5 to 4.5 percent respectively can be expected. These rates form the activity base for the "lowrange" revenue estimates offered in the Fiscal Year 1998 budget. 17 RESULTS-BASED BUDGETING The State of Georgia is launching a new budget initiative to assist in developing a more efficient and effective state government that will be accountable and responsive to the public for all tax dollars spent. The effort is Results-Based Budgeting (RBB), which is being phased in over the next several years, beginning with the F.Y. 1998 budget. When fully implemented, RBB will move the state towards a performance-based and results-oriented budget, as required by the 1993 Budget Accountability and Planning Act (Senate Bill 335). The new system will better link planning and evaluation to budget development and management. Performance measures will be used more systematically to assess progress made toward meeting stated goals and objectives for each department or agency of state government. Through RBB, all activities of state government will be grouped into programs and subprograms. For each program, goals will be identified, program outcomes for the fiscal year developed and progress towards achieving the outcomes measured. The first phase, as displayed in this F.Y. 1998 Budget Report, includes the following information by program for each department: Program Purpose outcomes will be displayed in future Budget Reports beginning on a limited basis in F.Y. 2000 and in more detail in the years following. In a memorandum to all agency heads on May 19, 1996, Governor Miller wrote of his full commitment to RBB and encouraged the same commitment from all agency heads. The Governor wrote: "Constantly focusing our attention on not simply how we spend our resources, but rather on what we achieve or accomplish will keep Georgia on the right track towards effectively addressing the most important needs of Georgia citizens. I think we can substantially implement this new concept as we develop the state budget over the next two years. Approaching this challenge with the same dedication with which you implemented budget redirection will carry the state and this administration a long way towards fulfilling the vision I have for a fiscally sound, effective and resultsoriented state government." "There has never been a time when prudently managing the state's fiscal resources is more important," Governor Miller told agency heads, listing some "compelling reasons" for the timeliness as: Program Goals Financial summaries, including the current F.Y. 1997 budget and the Governor's recommendations for F.Y. 1998. For the first time, a reader can review the various programs that define a department, the purpose and goals of that program and the money that is spent achieving these goals. These programs may differ significantly from the organizational structure. This initiative is designed to relate program results with program expenditures. The Governor and the General Assembly can then decide through public debate whether or not the State is making the proper investment. The second phase of RBB implementation in the F.Y. 1999 Budget Report will include the identification of objectives, subprograms and program outcomes that must be met. Progress towards achieving the program Georgia's economy likely will slow its growth rate for the remainder of the decade. Our citizens need and want better services from state government in those program areas they care most about. Citizens are not willing to see their tax burden increase; in fact, they want to pay less in taxes. Many Georgians do not believe they are currently getting maximum value for the taxes they are already paying. Georgia continues to be a rapidly growing state which will absolutely require that we invest the state's resources wisely to maximize our ability to be competitive in the world economy. 18 RESULTS-BASED BUDGETING Results Based Budgeting is a method the state will use to require accountability for every tax dollar spent by every Executive Branch department. RBB will organize a process of gathering information and documenting the state's efforts ofwhether or not expenditures are actually achieving stated objectives. The specific goals of Results Based Budgeting include: Focus the legislative process upon the policy implications offunds expended in state agency programs and services. Identify successful and unsuccessful programs Enable programs to be evaluated and funded on the basis of achieving a specific desired result. Aid policy makers in determining if it is in the best interest of the state to expend funds to achieve a program's identified result; i.e., it is worth it? Enhance the ability of the Office of Planning and Budget to track funding in programs across agency organizational boundaries. Identify similar programs across state agencies and assess total impact. 19 STATE STRATEGIC PLAN -1997 This State Strategic Plan for Georgia has been developed by the Governor's office and the Office of Planning and Budget with input from the legislative Budgetary Responsibility Oversight Committee. The plan fulfills the statutory requirements for a state strategic plan as outline.d in Code Section 45-12-73. It represents the first state strategic plan and a comprehensive vision for the future ofGeorgia. The strategic plan provides a view ofthe Georgia of tomorrow and the activities that are presently underway to move toward that future. Additional initiatives are identified that should be undertaken to attain our vision. Importantly, the plan sets forth results which are critical and must be accomplished so that Georgia can excel and be successful today and in the next century. VISION FOR THE STATE OF GEORGIA Georgia is a land blessed with natural resources and is fortunate to have residents who have been willing to work hard to support a dream for themselves and for their children. It is this dream of a better future that has been the driving force behind our state's economic development in the last generation. While we have made much progress toward meeting that goal, there is still work to be done. Achieving this goal of a brighter future will require work and perseverance. It will not simply happen but will occur only if we take the necessary steps that are required. These steps must be taken concurrently in a variety of areas which, while important separately, together can create the dynamic climate which will make Georgia a national leader. Georgians deserve an educational system which will allow them to reach their full potential by giving them the knowledge and skills needed for the new challenges of tomorrow. It must provide both the opportunity to learn, such as the prekindergarten program, and tangible rewards for hard work, as provided by HOPE scholarships. In the future Georgians will see education as a lifetime experience which prepares the individual for the constantly changing conditions of a world community. All Georgians also have the right to lead a life in a secure and safe community in which crime is controlled and fear of crime becomes a relic of another time. Government will maintain effective law enforcement to protect the public and guarantee swift and assured punishment for those who break the law. By continuing to build a fair and effective judicial system Georgia will create a climate of respect for the law which will help to break the cycle ofviolence found in parts ofour society. A prosperous future will be based on a strong state economy which can compete successfully with the nation and the world. Georgia's economic growth must be protected by continuing a multifaceted strategy which attracts new industry, strengthens existing industry and provides the foundation and infrastructure necessary to foster economic growth. In developing industry, Georgia must also be careful to protect the very resources upon which our prosperity is based. Rich agricultural areas, expansive forests, and abundant water have helped to foster strong growth. These resources must be protected in order to assure continued prosperity in the future. By developing resources in an ecologically sound manner, building upon the format established by Preservation 2000 and RiverCare 2000, Georgia can ensure that it maintains the very resources which have created its current prosperity. A good quality of life for themselves and for their children have long been goals of all Georgians. Adults as well as children deserve a social environment which allows them to develop to their fullest potential. Human services must be guided by principles which encourage and develop individual responsibility and accountability. Special emphasis must be given to policies which strengthen the family unit, because it is the breakdown of the family that has created the most serious consequences effecting the social and economic conditions in which children are raised. In striving to create a better future, state government cannot work alone. Because of limited resources government is just one of many partners in the public and private sectors which must work together if a better future is to be achieved. Our challenge is to keep government as a good partner, one which encourages quality development and growth. To accomplish this, government must work to deliver services to the citizens in an efficient and effective manner. An ineffective government will drain our economic strength and threaten our prosperity. As we proceed along convergent paths in all of these areas, a better Georgia will emerge. Our state will thrive in a climate of fiscal responsibility and personal security. It will prosper with the strength of an educated, well-trained workforce and an infrastructure unrivaled in the world. STRATEGIC AGENDA PRIORITIES This first strategic plan focuses on six primary issues which the Governor believes to be the top priorities in setting the agenda for moving into the future. These six major issues are: 20 Education Georgia's future economic growth and prosperity can be ensured only through the development of an educated and highly skilled workforce with the ability to change quickly to meet shifting economic demands. Our goal must be the development of an educational system which is inclusive, flexible and effective. To succeed, it must build on the current policy which provides both opportunities to learn, such as the preKindergarten program, and tangible rewards for hard work, as provided by HOPE scholarships. The skilled training for the jobs of tomorrow must be made available for all Georgia citizens. We must continue to build private and public partnerships which will increase the educational choices available to our citizens. Learning must be seen as a lifetime experience which prepares the individual for constantly changing conditions. Crime and Public Safety All Georgians have a right to live in safe and secure communities. Government has a responsibility to provide for the public safety. To accomplish this, the state must maintain well-trained, effective law enforcement and guarantee swift and assured punishment for those who break the law. Juveniles who commit certain violent crimes will be tried as adults and will senre adult sentences in special facilities. The Georgia judicial system must be organized and staffed so that the enforcement of Georgia's laws can be administered quickly, efficiently and fairly. While we must ensure that the judicial system protects the rights ofthe accused, the system must also protect the rights of the victim. Economic Development Success in economic development in Georgia has come because we believe that cooperation between government and business is crucial to long term economic growth. Our goal is to maintain and increase Georgia's economic growth rate which, in tum, will provide ongoing opportunities to Georgians. This goal will be achieved through a multifaceted strategy which attracts new industry, builds and supports existing industry, promotes Georgia and its products to the world, and provides the foundation and infrastructure for new industries of the future. Human Services All Georgians want and strive for a good quality of life for themselves and for their families. All children should grow up in a safe and nurturing environment which allows them to develop to their fullest potential. We believe that public welfare should be used for its original purpose: to offer short-term support to families in crisis or need. Georgia will achieve these goals by providing education, training and support to people to break the cycle of dependency. Additionally, the health care system in Georgia will provide access to quality health care in the appropriate setting and in a cost-effective manner. This system will emphasize affordable basic health care coverage and increased individual responsibility for personal health. Georgia's future is a society which promotes a healthy and productive existence for its citizens. The Environment Georgians are blessed to live in a state with remarkable ecological diversity. Creating a better environment in a rapidly growing state is a major undertaking. Increasing population and development places growing pressure upon natural resources. Georgia is making major progress in the fight to preserve its environment. Through public-private partnerships the amount of land placed in conservation has been greatly increased. Significant steps are being taken to reduce water and air pollution and to limit soil and land erosion. Building on existing effective programs will form a strong base for the creation of an environmentally sound state in the future. An Efficient and Effective State Government Delivering services to citizens in the most efficient and effective manner must be the primary concern of every government agency and every public employee. Changing long- term operating procedures is difficult for any organization. The very nature of government makes this challenge even more difficult for governmental organizations. A primary goal is breaking this mold and forcing state agencies at all levels to look at their operations in new ways. As public service providers, agencies must clearly identify their customers, focus their commitment and resources upon results, and be willing to measure their performance and be accountable. These six major issue areas do not address every initiative or service that state government now provides or should provide. However, these six areas are critical to setting the direction for state government as we begin to move into the changing world ofthe twenty-first century. This plan represents an important road map for the citizens of Georgia and state government. SUMMARY As Georgia state government moves forward in the implementation of this plan, several tools, including strategic planning, will be utilized by agencies to assist the citizens in realizing this vision for the future. With the advent ofresultsbased budgeting, redirection (a budget tool for creating efficiencies in state government), Quality Service Georgia and performance management through GeorgiaGain, state government is poised to create a system of quality services in which citizens are considered customers. All of these tools will create a more responsive and efficient state government and make this vision for Georgia a reality. For our citizens and those individuals in state government, this plan will provide the direction that will take the sJate into the next century. Every citizen of Georgia has a stake in our state's future. Through planning and sound management practices, with an eye on efficiency and effectiveness, state government will become a partner with citizens in building a dynamic Georgia. 21 READER'S GUIDE Two changes have been made in the F. Y. 1998 Budget Report of the State of Georgia: The first phase of implementing Results-Based Budgeting (RBB) is included as a part of the budget presentation of each department. The Program Information section has been abolished. RESULTS-BASED BUDGETING Results-Based Budgeting is a new initiative that divides all state government activities into programs. The future of all programs, in terms of their continuing existence and funding level, will be determined by how well they measure up to the measurements that will be recommended in the future by the Governor and approved by the General Assembly. The first phase of Results-Based Budgeting is presented in two parts for each department in this Budget Report. The first part, Program Summaries, presents each program by name, purpose and goals. The second part, Program Fund Allocations, provides the F.Y. 1997 appropriations and F.Y. 1998 Governor's recommendations for each program. For more details about the new RBB initiative, turn to pages 18 and 19 of this document for a special writeup. The Program Information section has been discontinued to help make room for the new RBB section and to avoid conflict with the performance measurements that will ultimately be the key component of RBB. DOCUMENT IMPROVEMENTS The State Office of Planning and Budget continues to make improvements in the Budget Report to make the document more user friendly and more informative. This guide explains the various sections of the document to help readers understand its contents. The Budget Report represents the Governor's recommendations to the General Assembly for state expenditures during the upcoming F.Y. 1998. The report also includes a wide range of other information, such as revenue growth, prior years' expenditures by agency; the roles and responsibilities of all state departments; details about the strategies and services for each department. THREE BUDGET DOCUMENTS The Governor's budget recommendations to the 1997 General Assembly are embodied in two budget documents, with a third document published after the session to explain the actual appropriation approved. The document you are now reading is the F. Y. 1998 Budget Report. It embraces the Governor's spending recommendations for F.Y. 1998 that begins July 1, 1997 and ends June 30, 1998. 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 new or amended expenditures authorized by the General Assembly for the current fiscal year and for the next fiscal year. THE REDIRECTION INITIATIVE Beginning with F. Y. 1997, a new dimension was added to the State of Georgia's budget process-redirection. An understanding of redirection and its impact on the budget is especially important in understanding the philosophy that is governing Governor Miller's approach to the budget during the last years of his Administration While the impact of redirection is spread throughout the entire budget, it especially impacts two sections in each department-~ the Financial Summary and Budget Summary pages. Redirection is a continuing thrust by Governor Miller to deal with a projected long-term trend of slower revenue growth at the same time that citizens are demanding better services from government. Through redirection, Governor Miller said that he expects all agencies to rethink how they do business. He wants them to study their expenditures carefully and eliminate or downsize those activities that are no longer needed. To achieve this goal, Governor Miller ordered all department heads to present F. Y. 1998 budget requests based on a reallocation of at least five cent of an agency's F.Y. 1996 adjusted base budget, with the reallocated funds to be used for three purposes: To fund ongoing services or enhancements within an agency using the current level of resources. To fund growth in formula and entitlement related services in a way that minimizes the amount of new resources historically required in these areas. 22 READER'S GUIDE To fund growth in formula and entitlement related services in a way that minimizes the amount of new resources historically required in these areas. To increase fund availability for priority areas within state government as a whole. The F.Y. 1998 redirection level could not exceed 100 percent of the F. Y. 1997 adjusted base budget. IDGHLIGHTS The Highlights page for each department provides a summary of new or expanded services that are being recommended for that department by the Governor. The page may be omitted for any agency that does not have sufficient enhancements to justify a separate page for Highlights. The adjusted base budget was determined in two stages. First, all non-recurring expenditures were deducted from the F. Y. 1997 budget. Second, funds were added to annualize carry-forward requirements such as 1997 salary adjustments and enhancements. Once the adjusted base budget was determined, agency heads were allowed to request enhancement funds for new or expanded services requested above the 100 percent adjusted base level. Agency requests, however, were limited to 6.5 percent of the adjusted base. Generally speaking, enhancement funds represent a funding level that in recent years has been known as improvement fund requests. The major difference is that there is now a cap on enhancement funds whereas there was no cap on funds requested for improvements. Also, much of the funding that was once requested as improvement funds must now be requested in redirected dollars, not the add-on dollars represented by enhancement allocations. THE 1998 BUDGET REPORT Departments can have as many as 11 separate sections in this F. Y. 1998 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. ORGANIZATION CHART An Organization Chart precedes each agency's section in the document. The chart displays the divisions that make up each department, with a description of the services performed by each division. The charts have been reformatted to make them more uniform and readable than in the past. The numbers in each block represent total budgeted state positions as of October 1, 1995 for each division. The total number of positions budgeted for each department is listed at the top of the page. FINANCIAL SUMMARY The Financial Summary provides up to 12 different levels of budget information by object class, including expenditures for two prior years, the current budget, agency requests and the Governor's recommendations. The first page will include the following information concerning Expenditures, Current Budget and Agency Requests: F.Y. 1995 and F.Y. 1996 actual expenditures. F.Y. 1997 current operating budget. F.Y. 1998 agency requests by redirection level, enhancements and totals. The second page will include the following information concerning the F. Y. 1998 Governor's Recommendations: Adjusted Base. Funds to Redirect. Additions. Redirection Totals. Enhancements. Totals. Total State Funds are shown at the end of each column, along with the number of positions and motor vehicles. BUDGET SUMMARY The Budget Summary explains the Governor's Recommendations, as displayed by object class in the Financial Summary section, from a perspective of the new budget initiatives being recommended by the Governor concerning new, expanded or directed programs and services that are to be funded. Each column Qf the Governor's Recommendations page of the Financial Summary is explained in sequence in the Budget Summary. ADJUSTMENTS TO CURRENT BUDGET. The first line lists the existing state appropriations for F. Y. 1997, adjusted to include budget transfers between 23 READER'S GUIDE appropriations that were necessary before work could begin on developing recommendations for F.Y. 1998 spending. These adjustments include additional funds to annualize salary adjustments and reductions for nonrecurring expenditures. These adjustments to the 1997 appropriation total result in an Adjusted Base, which is the starting point for the Governor in making decisions on his F.Y. 199 budget recommendations. REDIRECTION FUNDS. The section on Funds to Redirect is an explanation of the numbers displayed on column two of the Governor's Recommendations page of the Financial Summary. The Additions section explains column three, while the Total Redirection Level number represents column four. 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 Governor's recommendations for F.Y. 1998 are displayed, along with projects requested but not recommended. Together, these projects make up the first year of the plan. Shown next are agency projections for the next three fiscal years--1999, 2000 and 2001. The cost of construction is listed for all projects, by cash or bonds, either as recommended by the Governor for F.Y.1998 or as estimated by the departments. APPENDICES ENHANCEMENT FUNDS. Column five is explained in this section, separated by Enhancement Funds and Capital Outlay. The Total State Funds number matches with column six. FUNCTIONAL BUDGET SUMMARY Several items of general background information are displayed in this section, including state surplus for the prior two years, historical information and current statistical data about state bonds, a three-year record of authorized positions, and a glossary of budget-related terms. Functional budgets by total and state funds are displayed in this section for the current year's appropriations and for the following fiscal year. ROLES AND RESPONSmILITIES The missions that each department must fulfill as required by law, policy or mandate are described in this section by law, policy or mandate. The way each department is organized to carry out these missions is also described. THE BUDGET PROCESS IN GEORGIA Readers interested in a detailed explanation of how the budget process works in Georgia are urged to see a separate section on this topic in the Appendices of this document. The section explains the various sources of state revenues, how budgets are approved and how budgets are administered. The explanation includes how current budgets are amended and how original budgets are passed for the following fiscal year. STRATEGIES AND SERVICES The Strategies and Services section describes the programs underway for each department to carry out the missions, focusing on new or expanded operations, as well as results. Charts and graphics are especially important to this section. 24 Financial Summaries ESTIMATED FUND AVAILABILITY, BUDGETS AND SURPLUS SURPLUS: State Funds Surplus Audited Agencies' Lapse - State Funds Lottery Surplus Audited Agencies' Lapse - Lottery Total Surplus RESERVES: Midyear Adjustment Reserve FISCAL YEAR 1997 FISCAL YEAR 1998 $216,436,925 126,049,247 124,142,354 9,728,321 $476,356,847 $104,461,844 REVENUES: State Revenue Estimate Additional assessments to be collected by the Insurance Commissioner and deposited into the Treasury during the first quarter ofF.Y. 1998. Adjustment to current estimate. This adjustment replaces $129 million of current revenues with F.Y. 1996 surplus. Revised Revenue Estimate Indigent Care Trust Fund Lottery Proceeds Appropriated Surplus TOTAL STATE FUNDS AVAILABLE $10,629,000,000 ($129,000,000) $10,500,000,000 148,828,880 546,198,773 17,500,000 $11,793,346,344 $11,118,000,000 750,000 $11,118,750,000 148,828,880 510,000,000 0 11,777,578,880 26 GEORGIA REVENUES, ACTUAL AND ESTIMATED I. Revenues from Taxes and Fees Taxes: fucome Tax - Corp. & fudiv. Sales Tax - General Motor Fuel Tax - Gals. & Sales Motor Vehicle License Tax fusurance Premium Tax Cigar and Cigarette Tax Malt Beverage Tax fuheritance Tax Property Tax - General, Utility, futangible Alcoholic Beverage Tax Wine Tax Total Taxes F.Y.1994 Actual 4,130,724,467 3,254,969,605 488,355,998 203,724,388 198,773,186 80,655,967 70,538,229 87,808,192 32,286,806 28,215,577 14,377,805 8,590,430,220 F.Y.1995 Actual F.Y.1996 Actual F.. 1997 Estimated F.Y.1998 Estimated 4,510,904,989 3,506,939,197 521,853,591 207,777,395 195,823,332 91,938,104 71,440,716 73,607,282 31,871,319 30,580,188 15,316,520 9,258,052,633 4,960,148,235 3,811,584,749 536,249,661 208,013,024 205,159,193 85,819,503 73,806,071 66,538,071 34,361,199 33,419,646 16,843,048 10,031,942,400 5,054,000,000 3,942,000,000 557,000,000 206,000,000 196,000,000 86,000,000 71,000,000 62,000,000 33,000,000 34,000,000 16,000,000 10,257,000,000 5,344,000,000 4,102,000,000 567,000,000 209,000,000 202,000,000 84,000,000 72,000,000 67,000,000 36,000,000 35,000,000 17,000,000 10,735,000,000 Regulatory Fees and Services: Administrative Services: futerest on Deposits Other Fees and Sales Revenue: Peace Officer Training Funds Other Fees and Sales Natural Resources: Game and Fish Other Fees and Sales Human Resources Labor Department Georgia Net Authority Corrections Public Safety Secretary of State Workers' Compensation Banking and Finance Agriculture Corom.offusurance Public Service Corom. All Other Departments Total Regulatory Fees & Sales Total Taxes, Fees and Sales 44,795,155 25,409,959 14,370,268 35,286,270 20,551,514 15,541,638 31,292,869 9,987,434 37,868,794 26,112,627 9,349,212 9,129,692 6,410,888 5,439,703 1,503,233 15,442,404 316,085,589 8,906,515,809 88,179,144 20,580,088 14,708,435 42,613,667 20,009,511 17,634,193 24,212,700 1l,809,260 36,279,404 27,299,402 9,922,946 10,121,854 6,319,149 5,369,549 5,634,904 19,590,502 367,605,842 9,625,658,475 97,118,296 8,080,043 15,820,891 77,484,890 19,793,527 18,183,943 28,493,927 19,999,765 14,000,000 13,259,558 33,997,128 29,408,156 10,307,478 10,295,145 6,087,527 3,188,633 3,844,243 4,878,909 414,242,059 10,446,184,459 74,000,000 8,000,000 17,000,000 57,000,000 20,000,000 18,000,000 26,000,000 14,000,000 14,000,000 35,000,000 31,000,000 10,000,000 10,000,000 6,000,000 3,000,000 4,000,000 5,000,000 372,000,000 10,629,000,000 79,000,000 8,000,000 17,000,000 61,000,000 21,000,000 18,000,000 26,000,000 20,000,000 14,000,000 14,000,000 35,000,000 31,000,000 11,000,000 10,000,000 6,000,000 3,000,000 4,000,000 5,000,000 383,000,000 11,118,000,000 futer-year Shift of Revenues 129,000,000 fusurance Anti-fraud Levies 750,000 Net Revenues 8,906,515,809 9,625,658,475 10,446,184,459 10,500,000,000 11,118,750,000 II. Lottery Funds 362,420,743 514,881,260 558,473,887 546,198,773 510,000,000 ill. fudigent Care Trust Funds 140,440,391 163,033,326 162,177,246 148,828,880 148,828,880 GRANDTOTAL 9,409,376,943 10,303,573,061 11,166,835,592 11,324,027,653 ll,777,578,880 27 EXPENDITURES AND APPROPRIATIONS STATE FUNDS Departments!Agencies General Assembly Audits, Department of Judicial Branch Administrative Services, Department of Agency for the Removal ofHazardous Materials Agriculture, Department of Banking and Finance, Department of Children and Youth Services, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, State Board of Employees' Retirement System Forestry Commission, State Georgia Bureau of Investigation Georgia State Financing and Investment Commission 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 Merit System of Personnel Administration Natural Resources, Department of Public Safety, Department of Public School Employees' Retirement System Public Service Commission Regents, University System of Georgia Revenue, Department of Secretary of State, Office of Soil and Water Conservation Commission, State Student Finance Commission, Georgia Teachers' Retirement System Technical and Adult Education, Department of Transportation, Department of Veterans Service, Department of Workers' Compensation, State Board of State of Ga. General Obligation Debt Sinking Fund Salary Adjustments Olympic Safety and Security TOTAL STATE FUNDS F.Y. 1995 Actual 21,499,774 17,388,372 68,129,378 36,086,544 111,759 40,045,782 8,488,903 104,551,080 30,054,285 682,285,313 4,940,091 3,732,872,226 2,880,000 34,679,931 41,850,223 76,104,842 1,105,373,691 19,733,570 14,835,643 17,072,795 9,930,861 1,217,400,886 74,864,635 108,895,355 9,640,000 7,947,522 1,268,838,746 90,279,192 28,355,333 1,836,298 106,422,770 3,675,147 182,112,563 346,050,250 23,402,485 10,061,059 481,730,435 10,030,427,739 F.Y. 1996 Actual 21,773,082 18,753,251 68,366,645 39,811,659 117,064 40,973,212 8,750,515 126,532,977 38,631,133 713,269,532 4,666,607 3,980,171,872 35,293,149 46,568,203 31,705,758 1,180,013,923 27,812,275 14,434,456 440,072 12,067,063 1,258,083,443 86,648,830 122,506,753 13,315,000 7,980,389 1,324,849,884 99,522,812 30,085,686 2,015,784 152,332,294 6,400,389 212,604,785 384,298,411 24,644,782 10,400,389 524,313,203 9,500,000 10,679,655,282 F.Y.1997 Budgeted 26,278,571 19,706,494 85,346,430 42,233,157 42,020,166 9,318,265 148,978,886 40,635,112 706,631,420 4,230,851 4,294,581,901 35,443,370 46,619,323 31,157,257 1,222,802,126 20,841,481 15,205,413 19,628,869 12,521,718 1,311,742,066 97,790,864 115,663,223 14,212,500 8,487,316 1,388,162,182 91,872,904 30,746,948 2,122,473 192,146,016 4,130,000 258,033,726 542,896,193 21,567,780 10,702,701 414,482,451 12,245,000 11,341,185,153 F.Y.I998 Department's Requests I Governor's Recommendations 26,676,465 20,612,446 26,676,465 20,612,446 98,985,043 98,985,043 41,650,445 40,752,420 46,392,157 9,547,044 267,686,081 51,510,541 759,732,346 4,308,008 4,528,895,168 41,466,718 9,397,920 163,862,188 26,759,978 724,401,093 4,207,394 4,451,045,072 35,046,658 51,470,893 34,816,361 46,813,458 32,874,570 1,297,139,209 76,748,116 17,103,852 21,815,368 13,100,966 1,363,265,143 29,691,407 1,181,658,214 19,770,406 15,510,907 20,489,020 12,654,664 1,319,498,749 116,173,428 139,126,466 14,212,500 8,553,275 1,442;113,134 96,140,767 30,917,714 3,678,070 201,769,354 4,070,000 299,180,385 832,778,755 20,239,480 10,741,358 540,131,568 93,108,282 114,413,490 14,212,500 8,258,526 1,399,958,791 91,973,369 30,259,003 2,135,159 208,707,192 4,070,000 230,477,303 542,309,764 19,439,744 10,682,103 390,622,155 327,881,576 12,524,386,773 11,777,578,880 28 EXPENDITURES AND APPROPRIATIONS TOTAL FUNDS Departments/Agencies 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 Corrections, Department of Defense, Department of Education, State Board of Employees' Retirement System Forestry Commission, State Georgia Bureau of Investigation Georgia State Financing and Investment Commission 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 Merit System of Personnel Administration Natural Resources, Department of Public Safety, Department of Public School Employees' Retirement System Public Service Commission Regents, University System of Georgia Revenue, Department of Secretary of State, Office of Soil and Water Conservation Commission, State Student Finance Commission, Georgia Teachers' Retirement System Technical and Adult Education, Department of Transportation, Department of Veterans Service, Department of Workers' Compensation, State Board of State of Ga. General Obligation Debt Sinking Fund Salary Adjustments Olympic Safety and Security TOTALAPPROPmATIONS F.Y.1997 Appropriations 26,278,571 19,706,494 87,045,066 188,066,054 49,751,824 9,318,265 154,650,781 87,079,439 727,219,297 15,881,777 4,791,100,275 4,514,051 40,350,065 46,619,323 2,314,049 38,432,305 2,372,637,421 21,097,481 16,512,068 155,808,877 14,130,547 3,739,739,927 1,099,766,134 139,063,103 121,187,740 14,212,500 10,536,019 2,537,211,067 97,058,269 31,846,813 2,657,810 192,146,016 11,356,706 319,011,434 1,164,343,369 29,275,348 10,892,701 414,482,451 18,803,301,437 F. Y. 1998 Recommendations I Total Funds I I State Funds Federal Funds All Other Funds 26,676,465 20,612,446 26,676,465 20,612,446 100,887,549 98,985,043 1,902,506 179,486,691 40,752,420 138,734,271 49,199,004 9,397,920 168,664,861 59,285,430 742,313,843 17,246,480 4,945,983,966 4,382,732 39,723,056 46,813,458 2,281,676 37,105,794 2,345,198,330 19,996,406 16,917,562 152,131,414 14,263,493 3,767,839,500 1,097,765,985 135,178,709 119,938,007 14,212,500 10,653,198 2,579,732,040 97,158,734 31,304,003 2,497,859 208,707,192 11,082,683 291,455,011 1,165,593,660 27,501,896 10,872,103 390,622,155 41,466,718 9,397,920 163,862,188 26,759,978 724,401,093 4,207,394 4,451,045,072 34,816,361 46,813,458 29,691,407 1,181,658,214 19,770,406 15,510,907 20,489,020 12,654,664 1,319,498,749 93,108,282 114,413,490 14,212,500 8,258,526 1,399,958,791 91,973,369 30,259,003 2,135,159 208,707,192 4,070,000 230,477,303 542,309,764 19,439,744 10,682,103 390,622,155 327,881,576 3,477,835 30,917,632 1,500,000 12,857,551 493,176,247 822,000 6,385,471 924,450,105 1,356,295 129,846,862 2,332,155,207 9,824,869 2,724,517 2,394,672 362,700 21,668,472 605,268,508 8,062,152 4,254,451 4,802,673 1,607,820 16,412,750 181,535 1,762,647 4,382,732 4,084,695 2,281,676 1,028,916 239,090,011 226,000 50,360 1,795,532 1,608,829 116,185,544 1,097,765,985 32,245,558 2,800,000 1,179,773,249 5,185,365 1,045,000 7,012,683 39,309,236 18,015,388 190,000 18,960,683,811 11,777,578,880 4,587,251,095 2,'23,735,412 29 SOURCES OF STATE REVENUE Actual and Estimated F.Y. 1995 through F.Y. 1998 Actual F.Y. 1995 Actual F.Y. 1996 indigent Care-I.6% Sal.. Tax-34.0% . MotorFnel . Tax - 5.1/0 Indigent Care-I.S% Motor Fnel ': Tax - 4.8~. Estimated F.Y. 1997 Estimated F.Y. 1998 Indigent Care-I.3% Motor Fuel Tax-4.9% Indigent Care .. 1.3% Motor Fuel Tax-4.8% 30 HOW STATE DOLLARS ARE SPENT F. Y. 1997 Operating Budget and F.Y. 1998 Governor's Recommendations Education Transportation 4.6% 4.8% 55.8% Legislative! 1.3% Judicial t:: 1.2% Economic 0.8% Development::: 0.9% 0.0% 10.0% m F.Y. 1998 Governor's Recommendations F.Y. 1997 Operating Budget 20.0% 30.0% 40.0% 50.0% 60.0% 31 STATEMENT OF FINANCIAL CONDITION STATE OF GEORGIA June 30, 1996 June 30, 1995 Cash and Cash Equivalents ASSETS $ 3,088,364,732.15 $ 3,763,950,278.23 Investments $ 2,844,150,810.63 $ 1,404,525,745.96 Accounts Receivable State Appropriation Other $ 134,286,310.13 $ 120,160,701.51 $ $ 1,065.00 $ 134,286,310.13 $ 120,161,766.51 Amount Available in Debt Service Fund $ 134,259,330.13 $ 106,693,984.01 Amount to be Provided for Retirement of General Long-Term Debt $ 4,521,300,669.87 $ 3,940,556,015.99 Total Assets $ 10,722,361,852.91 $ 9,335,887,790.70 LIABILITIES AND FUND EQUITY Liabilities Undrawn Appropriation Allotments Cash Overdraft Interest Payable Funds Held for Others General Obligation Bonds Payable $ 1,492,807,795.78 134,259,330.13 0.00 3,373,768,153.90 4,655,560,000.00 $ 1,545,054,899.87 106,693,721.51 812.50 2,877,889,712.54 4,047,250,000.00 Total Liabilities $ 9,656,395,279.81 $ 8,576,889,146.42 Fund Equity Fund Balances ReselVed Appropriation to Department of Transportation Midyear Adjustment ReselVe Revenue Shortfall ReselVe For Debt Service For Lottery for Education Restricted Unrestricted For Old State Debt For Guaranteed Revenue Debt Common ReselVe Fund UnreselVed Designated Surplus $ $ 35,197,508.73 104,461,844.59 96,256,584.75 313,385,533.77 288,769,754.24 134,259,330.13 106,693,984.01 128,024,887.60 150,341,127.36 26,980.00 19,029,945.00 113,718,586.00 74,016,529.08 26,980.00 19,036,201.26 $ 849,529,648.45 $ 733,716,128.07 216,436,924.65 25,282,516.21 Total Fund Equity Total Liabilities and Fund Equity $ 1,065,966,573.10 $ 10,722,361,852.91 $ 758,998,644.28 $ 9,335,887,790.70 32 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, excluding lottery funds and the Indigent Care Trust Fund. Additional surplus over three percent is available for appropriation. The status of the reserve for the last 12 fiscal years follows: FY 1996 FY 1995 FY 1994 FY 1993 FY 1992 FY 1991 FY 199O FY 1989 FY 1988 FY 1987 FY 1986 FY 1985 $ 313,385,534 288,769,754 267,195,474 122,640,698 * -0-0-0194,030,593 176,727,306 162,639,563 150,621,753 138,234,402 * Partially filled 33 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 four areas: voluntary pre-kindergarten for four-year-olds; scholarships and student loans; capital improvements for education;, and costs of providing technology training to teachers and repairing and maintaining instructional technology. Available lottery funds are now projected to be $510,000,000 for F.Y. 1998. The Governor recommends $510,000,000 for the following programs. 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 kindergarten ready to learn. The Governor recommends funding of $208,545,359 in F.Y. 1998 to serve 60,000 fouryear-olds. This funding is based on public school programs serving 26,868 four-year-olds, and all other private providers serving 33,132 four-year-olds. Public schools will receive $3,125.23 in base earnings per student. The reimbursement rates for private providers are based on region due to varying costs of providing services. Weekly rates for F.Y. 1998 for the 36-week program represent a 3 percent increase over the F.Y. 1997 rates and are as follows: With a State-Certificated Teacher: Zone 1* Zone 2* Zone 3* $89.58 $80.64 $75.08 With a Non-Certificated Teacher: Zone 1* Zone 2* Zone 3* $82.11 $73.90 $65.69 * These zones are based on the 1994 survey of local market rates for child care sponsored by the Georgia Department of Human Resources, Division of Family and Children's Services in accordance with federal regulations. The zones are as follows: Zone 1 -- Metro Atlanta; Zone 2 -- Other Metro Georgia; Zone 3 -- Rural Georgia. The total funding includes $19,327,778 for at-risk services including extended day services for at-risk four-year-olds to allow their parents to participate in work or training and family service coordinators for families of at-risk four-year-olds. In addition, there is $400,000 to fund start-up costs for the expansion from 57,000 students in F.Y. 1997 to 60,000 in F.Y. 1998. There is also $2.8 million for training of new teachers, $2,586,185 for administration of the program, and $300,000 to complete phase-out funding for portable classrooms. Helping Outstanding Pupils Educationally (HOPE) and Other Scholarship Programs These programs are designed to increase higher education participation and completion rates for Georgia students. The Governor's recommendation for the HOPE program for F.Y. 1998 consists of the following components. All Georgia high school students who graduated in the 1993-1994 school year and after with a minimum 3.0 cumulative grade point average in the college preparatory curriculum or 3.2 cumulative grade point average in other curricula will be eligible to receive a HOPE grant at any Georgia public college or eligible private institution in the state. College sophomores who were eligible for HOPE grants in 1993-1994 and after who earned a 3.0 cumulative grade point average for their freshman year will receive grants for their sophomore year. Beginning in the 19971998 school year, college sophomores who achieved a 3.0 cumulative grade point average in their freshman year, whether or not they were eligible for HOPE grants in their freshman year, will be eligible for HOPE grants in their sophomore year. College juniors who earned a 3.0 cumulative grade point average at the end of their sophomore year will receive grants for their junior year. HOPE scholars in 1993-1994 and after who lost HOPE eligibility after their freshman year, but achieved a 3.0 cumulative grade point average at the end of their sophomore year, will receive grants for their junior year. College seniors who earned HOPE grants at the end of their sophomore year and who maintained a 3.0 cumulative grade point average at the end of their junior year will receive grants for their senior year. HOPE grant awards for eligible students attending public colleges will be equal to the difference between the cost of tuition and mandatory fees and the amount paid by Pell or other federal grant programs, plus an allowance for textbooks. HOPE grant awards for freshmen and sophomores enrolled at eligible private colleges in Georgia, who meet the academic requirements described above, will equal the cost of tuition and mandatory fees up to $3,000. All juniors and seniors who are otherwise eligible for tuition equalization grants will be entitled to receive a second-tier tuition equalization grant of $1,500. This second-tier HOPE Tuition Equalization Grant will be awarded in addition to existing Tuition Equalization Grants. HOPE grants will be paid to the colleges. All students working toward 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, plus an allowance for textbooks. Students, beginning with those who graduated from high school in the 1992-1993 school year, who are working toward a degree at public technical institutes in the state, and who earned a minimum 3.0 cumulative grade point average in the college preparatory curriculum or 3.2 cumulative grade point average in other curricula in high school, will receive a HOPE grant. Beginning in the 1997-8 school year, students working toward a degree at public technical institutes in the state who earned a 3.0 34 RECOMMENDED DISTRIBUTION OF LOTTERY PROCEEDS BY PROGRAMS cumulative grade point average in their freshman year, whether or not they were eligible for HOPE grants in their freshman year, will be eligible for HOPE grants for their sophomore year. Each grant will be equal to the difference between the cost of tuition and mandatory fees and the amount paid by Pell or other federal grant programs, plus an allowance for textbooks. HOPE grants will be paid to the technical institutes. Beginning July 1, 1993, any Georgia 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. The HOPE program will be administered by the Georgia Student Finance Commission. All non-administrative costs will be distributed to the University System, technical institutes and eligible private colleges. The cost for this program in F.Y. 1998 is projected to be $160,772,911. The Georgia Military Scholarship Program provides up to 66 military scho1arsh;ps for Georgia Military College students. Eligible students 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. 1998 is $755,480. The Law Enforcement Personnel Dependents Scholarship provides a full scholarship to the dependent children of public safety officers killed or permanently disabled in the line of duty. The cost of this program in F.Y. 1998 is $249,736. The HOPE Teacher Scholarship Program provides 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 who desire to enhance their critical teaching skills. Recipients who teach four years in Georgia public schools after receiving the loan will have their loans forgiven. Others will have one-fourth of the loan forgiven for each year they teach in Georgia public schools. The cost of this program in F.Y. 1998 will be $10,000,000. The Postsecondary Options Program pays tuition to allow eligible high school students to earn postsecondary course credit while still in high school pursuant to 20-2-161 O.e.G.A. The program includes a provision allowing those students living beyond a reasonable commuting distance from public colleges but within a reasonable commuting distance from a private college to attend the private college under the Postsecondary Options Program. The cost of this program in F.Y. 1998 is $1,661,000. The total cost of all scholarship, loan and grant programs recommended by the Governor is $175,439,127. Capital Expenditures for Education For F.Y. 1998, the Governor recommends $182,046,985 in capital expenditures for the following projects: for the State Board of Education, $500,000 to provide funds for technology and equipment at CrossRoads alternative schools, and $3,804,500 for the installation of a coordinated fund accounting, fmancial analysis, and student information system; for the Board of Regents, $7,100,000 to continue funding for the Chancellor's Initiatives funded in F.Y. 1997, $15,000,000 for the Equipment, Technology and Construction Trust Fund, $6,454,422 for an Internet connection for public schools, libraries, technical institutes, and public colleges, $1,500,000 to purchase distance learning programs for GPTC, and $1,120,000 to provide a distance learning studio and virtual museum capability for Fernbank Science Center; for the Department of Technical and Adult Education, $5,000,000 to construct a satellite center in Burke County, $10,500,000 for an Ogeechee Tech classroom building ($5,500,000) and Heart of Georgia Tech business and industry training center ($5,000,000), $3,500,000 for equipment replacement, and $1,040,000 for equipment for 26 new full-time literacy instructors. Technology and Training The Promise Program provides 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 public or private colleges with a minimum cumulative 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-fourth 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 at the student's discretion for tuition, dormitory fees, child care, transportation or other expenses related to education. The cost of this program in F.Y. 1998 will be $2,000,000. For technology training, equipment, and related technology needs, the Governor recommends the following: for the State Board of Education, $39,241,800, or $30 per FTE, for all local school technology, teacher training, and equipment purposes, including vocational equipment for new schools; also for the State Board of Education, $25,564,956 for te~hnology specialists for local systems at the rate of one specialist for every two schools; for the State Board of Regents, $3,000,000 for hardware and software for instructional technology, including teacher education. 35 GOVERNOR'S RECOMMENDED LOTTERY EXPENDITURES By Agency F.Y. 1998 282,007,451 SBOE 55.30% 173,778,127 GSFC 34.07% 34,174,422 Regents 6.70% 20,040,000 DTAE 3.93% (]J SBOE (State Board of Education) GSFC (Georgia Student Finance Commision) (]J DTAE (Department of Technical and Adult Education) o Regents (Regents, University System of Georgia) 36 GOVERNOR'S RECOMMENDED LOTTERY EXPENDITURES By Program F.Y. 1998 175,439,127 Scholarships 34.40% 208,545,359 Pre-Kindergarten 40.89% 57,518,922 Capital Expenditure 11.28% Capital Expenditure Pre-Kindergarten 68,496,592 Technology Training 13.43% EJ Scholarships o Technology Training 37 LOTTERY RESERVES Georgia's lottery laws require the establishment oftwo reserves that are funded as a percentage oflottery collections to avoid disruption in programs should collections fall short of annual appropriations. The Shortfall Reserve Subaccount was included in the original law and required that an amount be set aside each year equal to 10 percent ofthe total lottery proceeds deposited into the Lottery for Education Account for the preceding year. Ifnet funds in the account are not sufficient to meet appropriations, funds shall be drawn from the reserve to make up the shortage. Funds have been set aside for the reserve each year and totaled $50,306,302 on June 30, 1996. The lottery law was amended during the 1994 legislative session to require that a Scholarship Shortfall Reserve Subaccount also be maintained within the Lottery for Education Account. The scholarship reserve law requires that the subaccount be fully established over five years at a rate of 10 percent a year until the reserve equals 50 percent of the amount of scholarship proceeds disbursed during the preceding year. Lottery surplus available at the end ofF.Y. 1995 was sufficient to meet immediate needs in the amended F.Y. 1996 budget and still leave enough funds over to fully fund the scholarship reserve in its first year. Governor Miller wrote the State Auditor a letter requesting that the Scholarship Shortfall Reserve Subaccount be fully funded from the 1995 surplus, and the Auditor complied with the Governor's request. The two lottery reserves as of June 30, 1996 total as follows: Shortfall Reserve Subaccount Scholarship Shortfall Reserve Subaccount $ 50,306,302 77,718,586 TOTAL LOTTERY RESERVES $ 128,024,888 38 GOVERNOR'S REDIRECTION RECOMMENDATION The Governor's F. Y. 1998 budget recommends $349 million to be redirected from agencies' adjusted base budgets into higher priority areas. The following chart depicts changes made in agencies' F. Y. 1998 budgets that enabled the Governor to focus spending on education, new correctional facilities for adult and juvenile offenders, and salary adjustments. The redirection process also was instrumental in allowing the Governor to include a major tax cut in his revenue estimate which was approved by the 1996 session of the General Assembly. The agenices' F. Y. 1998 redirection level reflects improved services from efficiencies undertaken by department heads and their boards as well as the identification and elimination of various efforts considered to be a lower priorities. The chart below shows each agency's recommended redirection level, not including any enhancements. The enhancement level recommended by the Governor for each department will change the final level of funding for each department. Departments/Agencies State Funds - Fiscal Year 1998 I I I Adjusted Base Funds to Redirect Additions Redirection Totals General Assembly Audits, Department of Judicial Branch Administrative Services, Department of Agriculture, Department of Banking and Finance, Department of Children and Youth Services, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, State Board of Forestry Commission, State Georgia Bureau of Investigation Governor, Office 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 Soil and Water Conservation Commission Student Finance Commission, Georgia Teachers' Retirement System Technical and Adult Education, Department of Transportation, Department of Veterans Service, Department of Workers' Compensation, State Board of General Obligation Debt Sinking Fund 26,278,571 19,706,494 85,346,430 41,070,205 42,411,104 9,467,330 150,991,019 26,689,804 709,960,759 4,307,394 4,049,909,812 35,499,007 46,340,427 30,086,810 1,220,551,529 19,158,206 15,311,130 20,514,277 12,596,664 1,321,488,198 94,018,493 114,208,842 14,212,500 8,440,012 1,320,665,329 88,919,598 30,660,913 2,137,810 32,737,146 4,130,000 205,467,936 535,447,604 21,120,150 10,760,252 341,225,527 (1,147,410) (1,252,765) (462,740) (6,609,014) (2,850,322) (21,465,126) (215,400) (66,419,448) (1,749,175) (388,194) (910,403) (67,564,572) (837,300) (766,553) (25,257) (99,686) (36,989,449) (3,748,997) (4,959,474) (420,888) (70,060,937) (3,128,897) (1,356,460) (134,064) (1,642,475) (60,000) (10,283,031) (41,076,537) (1,754,930) (621,906) 397,894 905,952 10,315,873 829,625 308,379 393,330 6,552,452 2,825,496 18,444,042 115,400 59,721,621 1,066,529 861,225 115,000 28,671,257 599,500 216,330 157,686 35,000,000 2,838,786 4,296,622 239,402 65,111,805 6,182,668 954,550 131,413 1,642,475 10,902,787 47,938,697 74,524 543,757 26,676,465 20,612,446 95,662,303 40,752,420 41,466,718 9,397,920 150,934,457 26,664,978 706,939,675 4,207,394 4,043,211,985 34,816,361 46,813,458 29,291,407 1,181,658,214 18,920,406 14,760,907 20,489,020 12,654,664 1,319,498,749 93,108,282 113,545,990 14,212,500 8,258,526 1,315,716,197 91,973,369 30,259,003 2,135,159 32,737,146 4,,070,000 206,087,692 542,309,764 19,439,744 10,682,103 341,225,527 TOTAL STATE FUNDS 10,711,837,282 39 (349,001,410) 308,355,077 10,671,190,949 RECOMMENDED SALARY ADJUSTMENTS I. Salary Adjustments 1. Provide for salary adjustments for employees of the Judicial, Legislative and Executive branches to be awarded on October 1, 1997. The proposed salary adjustment for Executive branch employees is in conformance with the GeorgiaGain pay for performance system and ranges from 0% to 7% (0%, 4%, 5.5% and 7%) depending on the employee's performance rating on his or her annual performance appraisal. Each agency's allocation of this salary adjustment total is listed at the end of this section. The proposed salary adjustment for Judicial and Legislative branch employees is 4% for employees receiving at least "satisfactory" or "meets expectations" on his or her annual performance appraisal. Provide for an increase of 4% for each state official (excluding members of the General Assembly) whose salary is set by Act 755 (House Bill 262) of the 1978 General Assembly, as amended, as authorized in said act, Code Section 45-7-4 effective October 1, 1997. Additionally, $55,353 is included for a salary adjustment, effective October 1, 1997, for members of the General Assembly. 2. Provide for a 6% increase in state base salary on the teacher salary schedule for the State Board of Education effective September 1, 1997. Provide for a 4% increase for bus drivers and lunchroom effective July 1, 1997. This proposed 6% teacher salary improvement is in addition to the salary increases awarded to teachers through normal progression on the teacher salary schedule. 3. Provide for a 6% salary increase for teachers with the Department of Technical and Adult Education effective September 1, 1997. 4. Provide a 6% funding level for merit increases for Regents faculty and support personnel to be awarded on July 1, 1997 for non-academic personnel and on September 1, 1997 for academic personnel. 5. Provide a 5% conditional salary increase, effective October 1, 1997, for incumbents in the Correctional Officer job class series working in high mission (Security level V and VI) institutions. This increase is in addition to any pay for performance salary adjustment received under provision #1 above. 6. Provide a 5% supplemental salary adjustment, effective October 1, 1997, for Department of Corrections food service and maintenance workers directly supervising inmates. This increase is in addition to any pay for performance salary adjustment received under provision # 1 above. GOVERNOR'S RECOMMENDAnONS 61,074,535 179,776,409 9,497,975 69,138,510 5,067,000 1,460,250 40 RECOMMENDED SALARY ADJUSTMENTS 7. Provide supplemental salary adjustments, effective October I, 1997, for administrative law judges in the Office of State Administrative Hearings in order to conform with minimum salary levels established by the GeorgiaGain state personnel management program. These adjustments are in addition to any pay for performance salary adjustment received under provision # 1 above. 8. Provide supplemental salary adjustments and an additional 5% salary increase for Peace Officer Standards Training (POST) certified personnel in the Youth Development Worker and Facilities Police job class series within the Department of Children and Youth Services, effective October 1, 1997. The preceding items are in addition to any pay for performance salary adjustment received under provision #1 above. TOTAL - To be transferred to the appropriate budget units II. Merit System Assessment Provide for merit system position assessment for basic services to employees of the judicial and legislative branches of government, including the Department of Audits. The addition results from restructuring a revised merit system position assessment applicable to basic services as authorized in Senate Bill 635. TOTAL RECOMMENDED ADJUSTMENTS GOVERNOR'S RECOMMENDAnONS 60,541 1,569,916 327,645,136 236,440 327,881,576 41 RECOMMENDED SALARY ADJUSTMENTS AGENCY ALLOCATION I. Executive Branch GOVERNOR'S RECOMMENDAnONS Department of Administrative Services Department of Agriculture Georgia Agricultural Exposition Authority Georgia Agrirama Development Authority Department of Banking and Finance Georgia Building Authority Department of Children and Youth Services Department of Community Affairs Department of Corrections Department of Defense Department of Education Georgia Environmental Facilities Authority State Forestry Commission Georgia State Games Commission Georgia Bureau of Investigation Office of the Governor Department of Human Resources Department ofIndustry, Trade and Tourism Office of Commissioner of Insurance Department of Labor Department of Law Department of Medical Assistance Georgia Music Hall of Fame Authority State Commission on National and Community Service Department ofNatural Resources Board of Pardons and Paroles Department of Public Safety Public Service Commission Georgia Public Telecommunications Commission Regents, University System of Georgia Department of Revenue Georgia Sports Hall of Fame Authority Secretary of State Office of School Readiness State Soil and Water Conservation Commission Georgia Student Finance Commission Department of Technical and Adult Education Department of Transportation Department of Veterans Services State Board of Workers' Compensation TOTAL - To be transferred to the appropriate budget units 407,912 836,558 22,494 14,806 242,766 566,806 4,601,166 163,099 21,029,564 64,345 180,696,069 25,957 857,020 2,642 1,058,300 401,071 26,773,247 210,578 380,305 11,978 387,637 173,141 19,952 9,158 2,098,524 1,040,830 2,625,172 270,365 204,910 69,138,510 1,691,328 7,478 585,041 18,948 36,570 13,147 9,774,186 54,686 393,581 271,588 327,181,435 42 RECOMMENDED SALARY ADJUSTMENTS AGENCY ALLOCATION GOVERNOR'S RECOMMENDAnONS II. Judicial and Legislative Branches Judicial Branch Legislative Branch - Department of Audits - Legislative Staff - General Assembly Members TOTAL - To be transferred to the appropriate budget units TOTAL RECOMMENDED SALARY ADJUSTMENTS See Agency Request See Agency Request 408,348 55,353 463,701 327,645,136 43 F.Y. 1999 DEPARTMENT BUDGET ESTIMATES The Redirection Budget process used for Fiscal Year 1998 incorporates a multi-year estimating process required of state agencies. Agencies were required to estimate future costs of their Fiscal Year 1998 redirection level request. Estimating future cost of actions taken in any budget year should be an integral part of the budget decision making process. Agencies were asked to include Fiscal Year 1999 estimates of their redirection budget level and future operating costs associated with capital oqt1ay projects. The table below is a summary of the agencies' Fiscal Year 1999 estimate of their Fiscal Year 1998 redirection budget level request. F.Y. 1999 Estimates Administrative Services, Department of Agriculture, Department of Banking and Finance, Department of Children and Youth Services, Department of Community Affairs, Department of Corrections, Department of Defense, Department of Education, State Board of Forestry Commission, State Georgia Bureau of Investigation Governor, Office 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 Soil and Water Conservation Commission 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 TOTAL STATE GENERAL FUNDS 41,650,445 46,392,157 9,547,044 267,686,081 51,510,541 759,732,346 4,308,008 4,217,741,863 35,046,658 50,449,329 32,744,010 1,297,139,209 76,721,942 16,871,595 21,815,368 13,100,966 1,363,265,143 116,173,428 139,126,466 14,212,500 8,553,275 1,686,629,055 96,140,767 30,917,714 3,678,070 34,171,502 4,070,000 299,180,385 832,778,755 20,239,480 10,741,358 11,602,335,460 40,990,980 45,637,120 9,580,406 163,631,298 22,977,547 710,917,824 4,346,035 4,376,447,433 34,796,658 47,544,375 29,083,006 1,305,162,821 19,864,090 16,871,595 20,518,164 13,554,750 1,367,724,664 93,625,571 115,911,219 14,212,500 85,858,586 1,770,819,603 92,000,734 30,917,714 2,141,564 36,021,341 4,400,000 205,660,632 1,155,089,764 21,169,424 10,741,358 11,868,218,776 44 Department Budget Summaries GEORGIA ELECTORATE I SUPREME COURT I COliRTOF APPEALS \ COMMISSIONER OF LABOR I STATE SUPERINTENDENT OF SCHOOLS GOVERNOR I COMMISSIONER OF INSURANCE I .. COMMISSIONER OF AGRICULTURE DEPARTMENT STATE BOARD , OF LABOR OF EDUCATION r---t--- ------t-- I I I I SUPERIOR DISTRICT I I COURTS ATTORNEYS I I I I I 45 SUPERIOR COURT CIRCUITS I I DEPARTMENT OF EDUCATION r-----L ----- PROFESSIONAL OFFICE OF PRACTICES SCHOOL COMMISSION READINESS OFFICE OF COMMISSIONER OF INSURANCE DEPARTMENT OF AGRICULTURE . GEORGIA SEED TECHNOLOGY AND DEVELOPMENT COMMISSION GEORGIA AGRIRAMA DEVELOPMENT AUTHORITY GEORGIA DEVELOPMENT AUTHORITY CHILDREN AND YOUTH COORDINATING COUNCIL COMMISSION ON EQUAL OPPORTUNITY COMMISSION ON THE PRIVATIZATION OF GOVERNMENT SERVICES CRIMINAL JUSTICE COORDINATING COUNCIL GEORGIA COUNCIL ON VOCATIONAL EDUCATION GEORGIA EMERGENCY MANAGEMENT AGENCY GOVERNOR'S DEVELOPMENT COUNCIL GEORGIA POLICY COUNCIL FOR CHILDREN AND FAMILIES HUMAN RELATIONS COMMISSION INFORMATION TECHNOLOGY POLICY COUNCIL OFFICE OF CONSUMER AFFAIRS PROFESSIONAL STANDARDS COMMISSION 1-----------------------------1 iOFFICEOF OFFICE r::-:=:::':":"=::-t GOVERNOR'S I1 PLANNING OF THE OFFICE 1 : ANDBUDGET GOVER.~OR 1 I I --------1--------------------- DEPARTMENT OF ADMINISTRATIVE SERVICES DEPARTMENT OF BANKING AND FINANCE BOARD OF COMMUNITY AFFAIRS I GEORGIA BUILDING AUTHORITY AGENCY FOR REMOVAL OF HAZARDOUS MATERIALS STATE PROPERTIES COMMISSION HEALTH PLANNING REVIEW BOARD OFFICE OF STATE ADMINISTRATIVE HEARINGS OFFICE OF TREASURY AND FISCAL SERVICES GEORGIA GOLF HALL OF FAME AVIATION HALL OF FAME GEORGIA NET AUTHORITY DEPARTMENT OF COMMUNITY AFFAIRS GEORGIA ENVIRONMENTAL FACILITIES AUTHORITY GEORGIA MUSIC HALL OF FAME AUTHORITY GEORGIA SPORTS HALL OF FAME AUTHORITY GEORGIA HOUSING AND FINANCE AUTHORITY HOUSING TRUST FUND FOR THE HOMELESS COMMISSION STATE COMMISSION ON NATIONAL AND COMMUNITY BOARD OF CORRECTIONS BOARD OF PARDONS AND PAROLES DEPARTMENT OF CORRECTIONS GA CORRECTIONAL INDUSTRIES ADMINISTRATION -- BOARD OF PUBLIC SAFETY I DEPARTMENT OF PUBLIC SAFETY GEORGIA BUREAU OF INVESTIGATION : GEORGIA POLICE ACADEMY OFFICE OF HIGHWAY SAFETY GEORGIA FIRE ACADEMY GEORGIA PEACE OFFICER STANDARD AND TRAINING COUNCIL GEORGIA FIREFIGHTER STANDARDS AND TRAINING COUNCIL GEORGIA PUBLIC SAFETY TRAINING BOARD OF INDUSTRY, IrRADEAND TOURISM DEPARTMENT OF INDUSTRY, TRADE AND TOURISM BOARD OF MEDICAL ASSISTANCE DEPARTMENT OF MEDICAL ASSISTANCE I WORLD CONGRESS CENTER/GEORGIA DOME GEORGIA PORTS AUTHORITY 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 I LAKE LANIER ISLANDS DEV. AUTHORITY STONE MOUNTAIN MEMORIAL ASSOCIATION JEKYLL ISLAND STATE PARK AUTHORITY AGRICULTURAL EXPOSmON AUTHORITY STATE BOXING COMMISSION GEORGIA STATE GAMES COMMISSION CIVIL WAR COMMISSION DEPARTMENT OF DEFENSE DEPARTMENT OF REVENUE ATIORNEY GENERAL DEPARTMENT OF LAW PUBLIC SERVICE COMMISSION I SECRETARY OF STATE I LIElJrENANT GOVER."IOR OFFICE OF THE SECRETARY OF STATE : : STATE ETHICS COMMISSION DRUGS AND NARCOTICS AGENCY REAL ESTATE COMMISSION HOLOCAUST COMMISSION I GENERAL ASSEMBLY PRESIDENT OF THE SENATE SPEAKER OF THE HOUSE SENATE HOUSE OF REPRESENTATIVES LEGISLATIVE SERvlCES COMMITIEE DEPARTMENT OF AUDITS BD. OF TRUSTEES-STATE EMPLOYEES' RETIREMENT SYSTEM BD. OF TRUSTEES-PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM STATE EMPLOYEES' RETIREMENT SYSTEM OF GAIPUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM OF GEORGIA ! OFFICE OF THE LEGISLATIVE FISCAL OFFICER OFFICE OF THE LEGISLHIVE BUDGET A."IALYST I OFFICE OF LEGISLATIVE COUNSEL I STATE FORESTRY COMMISSION STATE FORESTRY COMMISSION HERTY FOUNDATION I GEORGIA STATE FINANCING AND INVESTMENT COMMISSION I BOARD OF HUMAN RESOURCES DEPARTMENT OF HUMAN RESOURCES : CHILDREN'S TRUST FUND HEALTH PLANNING AGENCY DEVELOPMENTAL DISABILmES COUNCIL I I STATE TRANSPORATION BOARD DEPARTMENT OF TRANSPORTATION GEORGIA RAIL PASSENGER AUTHORITY I BOARD OF REGENTS UNIVERSITY SYSTEM OF GEORGIA I STATE SOIL AND WATER CONSER VATION COMMISSION JOINT BOARD OF FAMILY PRACTICE STATE MEDICAL EDUCATION BOARD PUBLIC TELECOMMUNICATIONS COMMISSION I GEORGIA STIJDENT FINANCE COMMISSION GEORGIA STIJDENT FINANCE AUTHORITY GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION , I BOARD OF TRUSTEES TEACHERS' RETIREMENT ITEACHERS' RETIREMENT SYSTEM OF GEORGIA I VETERANS SERVICE BOARD STATE DEPART MENTOF VETERANS SERVICE NONPUBLIC POST SECONDARY EDUCATION COMMISSION I STATE BOARD OF WORKERS' ~OMPENSATION I BOARD OF GEORGIA LOTIERY CORPORATION GEORGIA LOTTERY CORPORATION STATE COMMISSION ON THE CONDEM !NATION OF PUBLIC PROPERTY I BOARD OF CHILDREN ANDYOlJrH SERVICES DEPARTME1'I'T OF CHILDREN AND YOUTH SERVICES GENERAL ASSEMBLY Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources F.Y.1995 Expenditures Personal Services - Staff Personal Services - Elected Officials Personal Services - Combined 14,735,582 Regular Operating Expenses 2,037,171 Travel - Staff Travel - Elected Officials Travel - Combined 53,703 Equipment 610,423 Real Estate Rentals 3,680 Per Diem, Fees & Contracts- Staff Per Diem, Fees & Contracts - Elected Officials Per Diem, Fees & Contracts- 2,237,786 Combined Per Diem Differential Computer Charges 252,564 Telecommunications 481,349 Photography 62,591 Expense Reimbursement 1,024,925 Total Funds 21,499,774 Total State Funds 21,499,774 F.Y.1996 Expenditures 15,554,971 1,932,218 39,376 131,437 3,680 F.Y.1997 Current Budget 14,022,258 3,840,461 2,639,647 98,000 7,000 232,000 5,000 125,980 2,374,925 2,167,302 372,407 276,501 476,456 70,383 748,351 21,773,082 21,773,082 585,000 475,000 650,500 90,000 1,132,800 26,278,571 26,278,571 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 14,266,980 3,920,726 2,577,235 100,000 7,000 250,000 5,000 130,230 2,403,794 519,200 608,000 650,500 105,000 1,132,800 26,676,465 26,676,465 The budget request for the General Assembly has been included in the Governor's recommendation in estimating the total financial needs ofthe state for F.Y. 1998. EXPLANATION OF REQUEST: The General Assembly requests an increase of $397,894 for operations in F.Y. 1998. 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 overridden by a two-thirds majority vote of both houses. REQUESTED APPROPRIATION: The General Assembly is the budget unit for which the following State fund Appropriation for F.Y. 1998 is requested: $26,676,465. 48 DEPARTMENT OF AUDITS State Auditor I Medicaid and Local Government Audits Division Audits various Medicaid providers... reviews all local government audit reports... determines fiscal impact of bills affecting retirement systems... determines fiscal impact of certain bills introduced in General Assembly. I Financial Audit Operations Division I Performance Audit Operations Division To provide decision makers with creditable management information to promote improvements in accountability and stewardship in state and local government. .. in addition, the State Auditor serves on a number of state boards, authorities and commissions. 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. Professional Practice Division I Sales Ratio Division Conducts financial and compliance audits/reviews of State agencies, authorities, boards and commissions...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. Conducts performance audits and program evaluations to determine the degree to which state programs are accomplishing their goals and objectives... provides measures of program results and effectiveness...identifies other means of achieving the goals and objectives...and evaluates resource allocation. Responsible for research, review and comments to professional bodies regarding auditing standards and accounting principles... performs quality assurance functions to assure adherence to Government Auditing Standards...prepares and publishes the Report of the State Auditor, Comprehensive Annual Financial Report and Statewide Single Audit... revises! amends the Accounting Procedures and Instructions Manual issued by the State Auditor. .. provides technical assistance to other divisions and agencies of state government ... performs report preparation and support 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. 49 DEPARTMENT OF AUDITS Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Total State Funds F.Y.1995 Expenditures 14,224,540 434,580 514,994 106,234 143,931 835,733 33,949 958,132 136,279 17,388,372 17,388,372 F.Y.1996 Expenditures 15,670,942 574,569 554,178 137,764 15,060 870,195 119,460 656,083 155,000 18,753,251 18,753,251 F.Y. 1997 Current Budget 16,470,396 602,030 575,000 268,695 15,000 895,000 58,225 660,000 162,148 19,706,494 19,706,494 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 17,137,802 649,054 601,000 434,038 15,000 908,710 51,000 636,304 179,538 20,612,446 20,612,446 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. 1998. F.Y. 1998 Budget Summary F.Y. 1997 STATE APPROPRIATIONS 19,706,494 FUND CHANGES REQUESTED: 1. Basic current services. TOTAL FUND CHANGES 905,952 905,952 TOTAL BUDGET REQUEST - F.Y. 1998 20,612,446 The Department of Audits performs the following functions: (1) annual audits and reviews of state agencies, authorities, retirement systems, and state colleges and universities; (2) annual financial audits of local boards of education, regional and local libraries; (3) develop and maintain a uniform chart of accounts; (4) performance audits on the efficiency and effectiveness of state programs and activities; (5) program evaluations to assist the General Assembly in establishing an ongoing review and evaluation of all programs and functions of state government; (6) financial and program audits on Medicaid providers; (7) desk reviews of city and county financial audits; (8) prepare fiscal notes that estimate the financial impact of proposed legislation; and (9) prepare an equalized property tax digest for public school funding. REQUESTED APPROPRIATION: The Department of Audits is the budget unit for which the following State Fund Appropriation for F.Y. 1998 is requested: $20,612,446. 50 JUDICIAL BRANCH Financial Summary Expenditures, Current Budget and Agency Requests Budget Classes/Fund Sources Personal Services Other Operating Prosecuting Attorney's Council Judicial Administrative Districts Payment to Council of Superior Court Clerks Payment to Resource Center Computerized Information Network Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds F.Y.1995 Expenditures 10,072,414 56,960,151 1,969,089 1,242,858 33,800 300,000 654,806 F.Y.1996 Expenditures 11,092,959 66,560,739 2,015,363 F.Y.1997 Current Budget 12,311,126 70,149,871 2,227,465 1,290,967 1,346,564 31,040 26,240 300,000 683,800 300,000 683,800 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 13,082,377 81,645,146 2,729,037 2,194,639 58,350 378,000 800,000 71,233,118 81,974,868 87,045,066 100,887,549 334,344 3,696,643 4,030,987 67,202,131 3,400,187 25,000 3,425,187 78,549,681 1,698,636 1,698,636 85,346,430 1,902,506 1,902,506 98,985,043 The budget request for the Judicial Branch has been included in the Governor's recommendation in estimating the total financial needs of the state for F.Y. 1998. 51 JUDICIAL BRANCH F.Y.1998 Budget Summary F.Y. 1~97 STATE APPROPRIATIONS ADDITIONAL FUNDS REQUESTED FOR CURRENT SERVICES 1. Supreme Court 2. Court of Appeals 3. Superior Courts - Judges 4. Superior Courts - District Attorneys 5. Juvenile Court 6. Institute of Continuing Judicial Education 7. Judicial Council . 8. Judicial Qualifications Commission 9. Indigent Defense Council 10. Georgia Courts Automation Commission 11. Georgia Office of Dispute Resolution Total Additional Funds TOTAL STATE FUNDS REQUESTED ENHANCEMENT FUNDS ENHANCEMENTS I. Fund a contract for microfilming of documents (Court of Appeals). 2. Implement a new payscale for staff attorneys and administrative staff (Court of Appeals). 3. Add one computer support position (Court of Appeals). 4. Add 10 computer support positions for Judicial Administrative Districts (Superior Courts-Judges). 5. Increase county grants (Indigent Defense Council). TOTAL ENHANCEMENT FUNDS TOTAL STATE FUNDS AGENCY'S REQUEST 85,346,430 817,342 314,096 2,678,664 4,720,221 143,060 146,532 457,035 7,727 250,000 753,925 27,271 10,315,873 95,662,303 58,438 85,465 55,277 623,560 2,500,000 3,322,740 98,985,043 52 JUDICIAL BRANCH Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Supreme Court 2. Court of Appeals 3. Superior Courts - Judges 4. Superior Courts - District Attorneys 5. Juvenile Court 6. Institute of Continuing Judicial Education 7. Judicial Council 8. Judicial Qualifications Commission 9. Indigent Defense Council 10. Georgia Courts Automation Commission 11. Georgia Office of Dispute Resolution 6,641,102 7,945,611 35,735,637 27,700,551 1,053,172 758,378 2,026,094 168,197 3,000,000 1,767,256 249,068 6,015,631 7,895,611 35,667,637 26,745,386 1,053,172 758,378 2,026,094 168,197 3,000,000 1,767,256 249,068 7,502,223 8,478,887 39,043,861 32,490,593 1,196,232 904,910 2,547,399 175,924 5,750,000 2,521,181 276,339 6,832,973 8,408,887 38,969,861 31,465,607 1,196,232 904,910 2,483,129 175,924 5,750,000 2,521,181 276,339 TOTAL APPROPRIATIONS 87,045,066 85,346,430 100,887,549 98,985,043 REQUESTED APPROPRIATION: The Judicial Branch is the budget unit for which the following State Fund Appropriation for F.Y. 1998is requested: $98,985,043. 53 DEPARTMENT OF ADMINISTRATIVE SERVICES Total Budgeted Positions as of October 1, 1996 -- 956 Georgia Building Authority Georgia Net Authority State Properties Commission Health Planning Review Board Office of State Administrative Hearings Office of Treasury and Fiscal Services 631 Commissioner's 11 Office 6 0 Attached for Admin- ------------61 istrative Purposes Only 14 I Administration 99 Internal Business Services: Performs internal processes including procurement, contracts, inventory management, facility management, and MIS management...Controller: Oversees department's budget, accounting, payroll, billing, and rate setting... Privatization and Business Process Improvement: Monitors program performance, coordinates strategic planning, conducts internal audits... Information and Communication: Communicates new and enhanced DOAS services '" Human Resources: Conducts personnel management, training and team development for staff members... Intergovernmental and Customer Relations: Manages customer service operations and serves as the liaison with DOAS customers, provides legislative liaison services. I Interagency Support Services 110 I Statewide Operations and Support Services 128 Mail and CourierlRapid Copy: Provides interagency mail services to state agencies in the Atlanta metropolitan area, operates two U.S. Post Office substations, provides quick copying services to state agencies in three Capitol Hill locations... Motor Vehicle Services: Operates a Capitol Hill motor pool for state employees, manages an interagency gasoline billing system, provides motor vehicle maintenance... Alternative Fuels Program: Insures state adheres to state mandate on environmental fuels ... Surplus and Supply: Disposes of state and federally owned surplus property, purchases office and supplies in bulk for resale to state agencies. Purchasing: Processes purchase requisitions for state agencies by soliciting bids and issuing purchase orders, develops statewide contracts, operates State Purchasing Information System (SPIN), maintains Georgia Procurement Registry... Small and Minority Business: Manages Small and Minority Business Program... RFP/Contract Technical Assistance: Provides technical assistance in the development of contracts and RFP's... Risk Management: Insures all state real and personal property, administers the State Tort Claims Liability Fund... Workers' Compensation: Processes all claims under workers' compensation for state employees injured on the job...Space Management: Negotiates commercial office space leases for state agencies, maintains an inventory of state agency occupied space... State Directory Assistance: Provides telephone directory and information services. 55 I Information Technology 619 Integrated Technology Services: Designs and manages the state's voice and data communications network, operates the state's consolidated computer center, provides information technology products and services to state government, develops and maintains the statewide computer systems for financial, personnel, vehicle management, property control, and data processing, provides technical and information processing consulting services to state agencies, operates and maintains the Georgia Statewide Academic and Medical System (GSAMS), operates radio and paging communications systems for state agencies ... Customer Account Teams: Serves as 'the central point of contact for customers... Product and System Development: Conducts network capacity and technology planning. DEPARTMENT OF ADMINISTRATIVE SERVICES Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay D.P. Rents and Maintenance Distance Learning Grants Telephone Billings Radio Billings Pub. Sfty. Ofcrs.' Indmnty. Fnd. Utilities, Federal Materials for Resale Payments/DOAS Fiscal Admin. Health Planning Review Board Aviation Hall of Fame Golf Hall of Fame Payments to Building Authrty. Total Funds F.Y.1995 Expenditures 44,029,284 25,871,117 357,113 997,756 5,875,721 2,877,265 15,181,005 19,744,477 4,246,133 12,867 14,428,913 4,491,059 77,231,134 1,030,897 239,563 65,940 29,349,674 2,817,096 26,642 800,000 249,673,656 Less Federal & Other Funds: Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 213,572,473 14,639 213,587,112 36,086,544 1,048 344 F.Y.1996 Expenditures 48,192,827 16,394,575 534,669 870,458 9,357,276 3,592,497 19,838,605 19,201,169 3,580,824 F.Y.1997 Current Budget 50,938,519 13,042,606 434,831 696,459 1,608,195 3,586,862 3,045,376 11,737,692 4,134,175 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 50,017,100 12,213,555 472,231 666,934 1,394,276 3,569,350 2,792,950 11,649,033 3,831,867 163,220 514,470 50,180,320 12,213,555 472,231 666,934 1,394,276 3,569,350 2,792,950 12,163,503 3,831,867 12,428,220 5,360,027 85,128,482 5,182,393 650,000 11,796,710 60,183,280 929,406 700,000 10,908,892 56,363,800 929,406 700,000 10,908,892 56,363,800 929,406 700,000 33,022,419 2,972,744 86,905 48,500 85,000 781,972 267,309,562 21,000,000 2,972,744 35,000 48,500 85,000 1,090,699 188,066,054 20,039,840 2,974,797 85,000 48,500 85,000 178,742,531 20,039,840 2,974,797 85,000 48,500 85,000 677,690 179,420,221 227,497,903 145,832,897 137,769,776 227,497,903 39,811,659 1,057 345 145,832,897 42,233,157 1,037 344 137,769,776 40,972,755 1,010 345 677,690 137,769,776 137,769,776 41,650,445 1,010 345 56 DEPARTMENT OF ADMINISTRATIVE SERVICES Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay D.P. Rents and Maintenance Distance Learning Grants Telephone Billings Radio Billings Pub. Sfty. Ofcrs.' Indmnty. Fnd. Utilities, Federal Materials for Resale Payments/DOAS Fiscal Admin. Health Planning Review Board Aviation Hall of Fame Golf Hall of Fame Payments to Building Authrty. Total Funds Adjusted Base 51,419,469 12,826,875 482,406 648,934 1,664,784 3,567,350 2,779,916 11,700,914 4,122,879 1l,794,657 60,183,280 929,406 700,000 21,139,840 2,974,797 35,000 48,500 75,000 187,094,007 Less Federal & Other Funds: Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 146,023,802 146,023,802 41,070,205 1,037 345 Redirection Level Funds To Redirect Additions (1,704,518) (619,320) (20,175) (270,508) 366,665 371,669 15,300 18,000 4,036 (136,966) (700,431) (293,012) 7,170 1,141,159 18,860 (885,765) (3,819,480) (1,100,000) (148,739) 148,739 (9,698,914) 2,091,598 (8,551,504) (8,551,504) (1,147,410) (29) (5) 1,261,973 1,261,973 829,625 4 Redirection Totals 50,081,616 12,579,224 477,531 666,934 1,398,312 3,567,350 2,650,120 12,141,642 3,848,727 10,908,892 56,363,800 929,406 700,000 20,039,840 2,974,797 35,000 48,500 75,000 Enhancements Totals 50,081,616 12,579,224 477,531 666,934 1,398,312 3,567,350 2,650,120 12,141,642 3,848,727 10,908,892 56,363,800 929,406 700,000 20,039,840 2,974,797 35,000 48,500 75,000 179,486,691 179,486,691 138,734,271 138,734,271 40,752,420 1,012 340 138,734,271 138,734,271 40,752,420 1,012 340 57 DEPARTMENT OF ADMINISTRATIVE SERVICES F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost ofthe F.Y. 1997 salary adjustment. 2. Adjust for non-recurring expenditures: --Various equipment purchases. --Planning and development funds for the Georgia Golf Hall Of Fame. --State property appraisals and surveys related to Senate Resolution 457. --Georgia Building Authority payments. 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 42,233,157 126,807 (25,100) (10,000) (150,000) (1,090,699) (5,693) (8,267) ADJUSTED BASE 41,070,205 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Eliminate in-house development of the federal statewide cost allocation plan. 2. Reflect decrease in computer charges expenditures. 3. Eliminate one position and reduce other operating expenses in the procurement administration section. 4. Eliminate ten positions and reduce various expenses in the data processing services section. 5. Reduce per diem, fees and c.ontract expenses for the State Pi-operties Commission. 6. Decrease state funded portion of expenses for the Office of Treasury and Fiscal Services. 7. Decrease personal services and other operating expenses within the Office of State Administrative Hearings (117,737) (487,811) (139,439) (191,621) (23,000) (333,781) (184,223) Total Funds to Redirect (1,477,612) ADDITIONS 1. Contract with outside vendor for development of the federal statewide cost allocation plan. 2. Begin modernization of the Personnel Accounting and Control System (PACS) computer system. 3. Replace one motor vehicle for the State Properties Commission. 4. Fund critical personal services expenses for the Office of State Administrative Hearings. 22,546 1,002,281 18,000 117,000 Total Additions 1,159,827 TOTAL REDIRECTION LEVEL 40,752,420 58 DEPARTMENT OF ADMINISTRATIVE SERVICES -- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDAnONS ENHANCEMENT FUNDS ENHANCEMENTS 1. Revise Office of State Administrative Hearings administrative law judge salaries to confonn with the minimum starting salary established by the GeorgiaGain state personnel management program. See Pay Package TOTAL ENHANCEMENT FUNDS TOTAL STATE FUNDS 40,752,420 59 DEPARTMENT OF ADMINISTRATIVE SERVICES Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE l. Administration 5,312,568 3,719,945 4,108,935 2,542,980 2. Statewide Operations and Support Services 8,087,269 4,292,753 7,662,900 4,160,012 3. Interagency Support Services 32,911,521 31,070,908 4. Information Technology Services 136,333,481 29,646,787 130,975,762 30,001,111 ATTACHED AGENCIES: 5. State Properties Commission 668,788 668,788 517,844 517,844 6. Office of Treasury and Fiscal Services 1,092,425 519,051 1,534,260 188,560 7. Office of State Administrative Hearings 3,660,002 3,385,833 3,616,082 3,341,913 TOTAL APPROPRIATIONS 188,066,054 42,233,157 179,486,691 40,752,420 RECOMMENDED APPROPRIATION: The Department of Administrative Services is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $40,752,420. 60 DEPARTMENT OF ADMINISTRATIVE SERVICES Roles and Responsibilities The Department of Administrative Services (DOAS) provides a wide range of support services to all state agencies and many interested local governments and their entities. DOAS receives most of its revenues by charging for services as they are rendered. Of a budget totaling $196,792,307 in F.Y. 1996, direct state funds totaled only $41,319,650, or 21 percent. The Department operates through the Executive Operations, General Services, Computer Services and Telecommunications Division, which provide support services to its many sections. DOAS SERVICES Computer Services--Designs, develops, programs, manages and maintains data processing systems for agencies. Provides centralized data processing services that include payroll, personnel, accounting, budgeting, vehicle management and inventory services adaptable to all 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 state-owned 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 Vehicle 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 selfservice 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 of printing 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 government 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 I 1 million pieces ofmail in F.Y. 1994 with a savings of over $300,000. ATTACHED AGENCIES The Office of Treasury and Fiscal Services manages, invests and disburses most state revenues. The Georgia Building Authority provides maintenance, groundkeeping, food service, parking and security for the employees and facilities within the Capitol Hill office complex and other specified areas. The Agency for Removal of Hazardous Materials operates through the Georgia Building Authority, and is responsible for managing the removal of hazardous material from state-owned buildings. The State Properties Commission coordinates the purchase, management, inventory records and disposition of real property acquired and owned by the state. The Health Planning Review Board conducts appeal hearings on decisions of the Health Planning Agency. The Georgia Net Authority provides centralized marketing, provision, sale, and leasing, or executing license agreements for access on line or in volume, of certain public . information maintained in electronic format to the public. The Office of State Administrative Hearings conducts administrative hearings of contested cases for specified state agencies .. DISTANCE LEARNING AND TELEMEDICINE UNIVERSAL FUND A statewide telecommunication network that utilizes audio and video systems to teach in Georgia's public !;chools, and to enhance and improve the delivery of medical care throughout the state.. Both systems allow communication from a central point to a remote area. AUTHORITY Section 40-3548 Georgia Code Annotated. 61 DEPARTMENT OF ADMINISTRATIVE SERVICES Strategies and Services The Department of Administrative Services provides an assortment of services to state agencies. A few of the areas in which the department furnishes agencies services or support are described below. The items featured are the: Child Support Tracking Accounting and Reporting System ($TARS), Electronic Benefits Transfer System (EBT), state agency and University System dial-in data communications service, the Workers' Compensation section's development of a transitional return to work program for injured state employees, and developments in the Printing Services section. CHILD SUPPORT TRACKING ACCOUNTING AND REPORTING SYSTEM ($TARS) The department's Computer Services Division has developed and implemented a new computer system to better enable the Department of Human Resources' Division of Family and Children Services (DFCS) to collect due and overdue child support payments from the parent responsible for these payments. Referred to as the Child Support Tracking Accounting and Reporting System ($TARS), Georgia's new system is the largest one of the five state systems nationwide to be federally certified as satisfying U.S. Department Health and Human Services standards for automating the tracking and recovery of child support payments. $TARS is one of the main tools DFCS' Child Support Recovery Program uses to locate the parent responsible for child support payments and to collect these payments from that individual. $TARS accomplishes its mission of fmding and collecting from delinquent paying parents through interfacing with the Internal Revenue Service, the Federal Parent Locator System, and private sector organizations (i.e. credit bureaus, collection agencies, etc.). The system also communicates with systems in other states via the Child Support Enforcement Network, and is accessible to DFCS field personnel through field office personal computers. $TARS possesses features which offer superior data processing, payment check sorting, and data and fmancial control capabilities than was available with the previous system used. The improved technology and design of $TARS has resulted in DFCS locating defaulting parents and recovering child support payments much more accurately and quickly. Payments are forwarded to the proper party sooner and more frequently than under the former system. In the near future, $TARS will interface with all state agencies issuing occupational and professional licenses to more comprehensively enforce the recently enacted state law requiring the suspension of these licenses belonging to parents overdue on child support payments. The system will also begin charging interest on unpaid child support payments as required in another recent change to the state law. $TARS is planning to add the Social Security Administration to its list of government system interfaces to further expand efforts in locating defaulting parents. ELECTRONIC BENEFITS TRANSFER SYSTEM (EBT) In response to recent federal initiatives concerning the development of a nationwide system that will electronically deliver government benefits, the Computer Services Division of the Department of Administrative Services and the Division of Family and Children Services of the Department of Human Resources are working jointly to design and implement such an electronic benefits transfer system (EBT) for Georgia. Georgia's effort is part of an eight state coalition organized to meet the challenge of implementing an EBT system for most government benefits by the 1999 federal deadline. Georgia plans to have its EBT system operational by December 1997. When implemented, the EBT system will be available in the 189 county assistance offices serving the state's 350,000 welfare recipients. The system will transfer state issued Aid for Dependent Children (AFDC) and food stamp benefits to recipient accounts to which recipients will have access using their EBT debit card and personal identification number. The EBT system is expected to save the state $1.57 million annually stemming from the elimination of paper food stamps, welfare vouchers and benefit checks. The improved monitoring, accounting, and reporting of benefit accounts and payments this system affords is anticipated to result in the reduction of lost or stolen benefits, easier recipient access to their issued benefits, and savings from the efficient delivery of one or more types of awarded benefits through an eligible recipient's single EBT debit card. As the EBT system is refmed, it may include the delivery of other benefits and services, besides AFDC and food stamp benefits, as is deemed appropriate. DIAL-IN DATA COMMUNICATIONS SERVICE The department, working with the University System, has initiated a dialin data communications service for state agencies and University System institutions. This joint project is the culmination of earlier independent efforts of both groups. Unlike the previous data communication ventures, an outside vendor, MCI, was chosen to administer this joint dial-in data communications service. Use of an outside vendor was prompted by the need for flexibility in incorporating changes in technology into the system without expanding the staff overseeing and managing this data communications network. The vendor arrangement allows the state to continue to effectively deliver services in an efficient manner. 62 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Strategies and Services During F.Y. 1997, various components of this new system will implemented allowing state agencies and the University System schools greater, more convenient access to data from most locations around the state. One particular application of this dialin system's technology is providing the public access to University System and state technical institute library materials and periodicals from a broad range of locations reaching most of the state's populace. Another benefit ofthis dialin network is the enhanced communication it encourages wihin and between state agencies leading to improved operation of state government and better service to the state's citizens. TRANSITIONAL RETURN TO WORK PROGRAM The department's Workers' Compensation section is currently developing a transitional return to work program which is designed to help injured state employees return to work sooner. The goal of this program is to restore an employee's productivity after an injury under a timely process that results in less time lost from the job and reduced medical costs. Workers' Compensation Payments Payment Currently, the Department's plan concerning this project consists of five phases: Establish policies and strategies for handling behavioral issues and stress claims. Design a plan to reduce medical expenses and the cost of time lost from the job. Decrease Americans with Disabilities Act (ADA) exposure through fair implementation. Create a framework for doctors to understand and support this program. In the long term, successful implementation ofthis program will not only maintain employee productivity, but reduce the cost of lost productivity and medical expenses to state government. PRINTING SERVICES The department's Printing Services section, continuing a process begun in F.Y. 1994, has now completed decentralizing the responsibility of handling and/or coordinating the contracting of state agency printing and graphic arts needs. The final stage of this decentralization occurred at the start of F.Y. 1997 with the dissolution ofthe section's Graphic Arts unit due to agencies being able to contract for graphic arts services more effectively and at less long term cost. The section also returned responsibility for procuring and coordinating printing contracts to state agencies. Additionally, the department, since F.Y. 1994, in its approach to lower the state's printing costs and return direct control of agency printing services to the agencies has eliminated the state print shop, and privatized state agency printing and rapid copy operations. The Printing Services section's only remaining activity is the general oversight of the three privatized rapid copy centers serving state agencies in the Capitol Hill complex. 63 DEPARTMENT OF ADMINISTRATIVE SERVICES Results-Based Budgeting Program Summaries STAT, EWIDE FINANCIAL INFORMATION SYSTEMS SERVICES PURPOSE: Support state agencies in meeting their financial management and reporting responsibilities. GOAL Support the state agencies and technical schools by providing on-going consulting services, training and standardized fmancial software. GENERAL SERVICES PURPOSE: Provide interagency support in the areas of (a) Mail and Courier, (b) Motor Vehicle Services, (c) Surplus (d) Supply (e) Rapid Copy GOALS Increase the timelines1! and effectiveness of agency mail services. Provide cost effective, efficient motor vehicle services. Expand and improve central supply and surplus property services. Improve rapid copy products and services. STATEWIDE OPERATIONS & SUPPORT SERVICES PURPOSE: Provide policy, guidelines, assistance in areas of purchasing, insurance and space to statewide agency customers GOALS Reduce State Purchasing's direct involvement in open market purchases and focus on broader impacts such as delegation of purchasing authority to agencies, purchasing cards, statewide contracts, agency coritracts, request for proposals, training and audits. Work with state procurement officers as well as small and minority vendors to facilitate more effectively. Provide state agencies functional work space in an optimal location while maintaining cost effective rental rates. 64 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting ELECTRONIC MAINTENANCE SERVICES PURPOSE: Provide installation, problem determination, and repair services for telephone sets, wiring, two-way radio, CSU/DSU, modems, ATM switches, and local area networks (LAN's). GOALS Provide timely installation and repair response. Be technically competent across all product lines. Be the lowest cost provider of service. Be the customer's provider by choice. Work with the Customer Service Team to establish expectations. GEORGIA STATEWIDE ACADEMICffELEMEDICINE SYSTEM PURPOSE: Administer a quality video conferencing system that is focused on customer service and customer/vendor relationships in the areas of procurement, installation and maintenance. GOALS Improve the quality of service to all customers. Continue the expansion process for new distance learning sites. Develop contracts for technical implications for GSAMS growth and added value such as connectivity for desktop video conferencing and recommendations in regard to next-generation platforms. NETWORK SERVICES PURPOSE: Provide cost-effective digital telecommunications backbone (GIST) for voice and data to State agencies. GOALS Provide cost-effective and competitively priced quality services that bring value to our customers. Continue growth in all network services based on customer demand for service and/or funding provided. Investigate and selectively implement new technologies (desktop videoconferencing, broadband network, frame relay) based on availability and customer needs. Develop contracts for new and growth areas of all services. 65 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting TELEPHONE SYSTEMS PURPOSE: Provide efficient and cost-effective telephone services to 95 cities in Georgia through consolidated joint-use systems, state-wide paging services, voice processing services, and commercial long ,distance. GOALS Provide consistent, reliable, and cost-effective paging, telephone, and voice processing services. Provide upgrades to features and capabilities. Provide new technologies and applications to meet customer demands. Work with customers to establish expectations. Provide access to all customers who need to make commercial long distance calls, international calls, credit card calls, and access to local and long distance public directory information. DOAS COMPUTER SERVICES/COMPUTER OPERATIONS SUPPORT PURPOSE: Provide and maintain the physical operations, technical support and technical planning for the DOAS/CSD'S mainframe computer complexes, related print output facilities, and the internal DOAS Local Area Network (LAN). GOALS Provide the highest quality, most cost efficient mainframe data processing services to DOAS customers. Provide data center optimum availability for scheduled time. Provide sub-second response time for non-batch teleprocessing. Provide advanced hardware and software technology such as automatic tape library systems, and automated scheduling software to increase efficient support of customers data processing needs. Provide and maintain an effective Disaster Recovery Plan in support of customers' mainframe based resources, utilization and availability, 66 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting INFORMATION SYSTEMS SOLUTIONS PURPOSE: Provide innovative information systems solutions in an efficient manner to enable customers to achieve their business objectives. GOALS Understand and satisfy customer needs. Enhance employee efficiency and effectiveness. Develop, implement and evaluate on an on-going basis recruitment and selection standards for suppliers and consultants. Provide customers with the most cost-effective and innovative technology available. Expand the number of customers served. ATTACHED AGENCIES STATE PROPERTIES MANAGEMENT PURPOSE: Provide real estate expertise and guidelines to State Agencies and Authorities in the acquisition of real estate; establish and maintain an inventory of the State's property holdings; review and assess proposals regarding the acquisition or dispersion of property by the state. (State Properties Commission) GOALS Coordinate and interact with State Agencies and Authorities in order to better defme their needs in the effective use of the State's Real Property. Maintain a current inventory of State property holdings including: their valuation, location, size and other relevant information. Evaluate proposals on the sale, purchase or leasing of property involving the state and forward the recommendation to the legislature for action. RECEIPT OF FUNDS PURPOSE: Receive and keep safe all moneys paid to the state treasury. (Office of Treasury and Fiscal Services) GOAL Receive and accurately record all funds in a timely manner, employing the proper internal controls. 67 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting DISBURSEMENT OF FUNDS PURPOSE: Pay all warrants and drafts legally drawn on the state treasury. (Office of Treasury and Fiscal Services) GOALS Distribute all funds in accordance with state law. Maintain good and sufficient accounting records. INVESTMENT OF FUNDS PURPOSE: Invest all general funds, health benefit funds, self-insurance funds and custodial funds in accordance With investment policy and guidelines established by the State Depository Board. (Office of Treasury and Fiscal Services) GOALS Ensure the safety of investment capital. Generate a competitive level of income. Meet daily cash flow requirements. Conform to all statutes and policies governing the investment of public funds. CASH MANAGEMENT AND ACCOUNTING PURPOSE: Implement the cash management policies established by the State Depository Board. Monitor state agency banking relationships, invest and monitor state time deposits, monitor collateral for state time deposits, monitor and report compliance with federal funds transfer requirements. (Office of Treasury and Fiscal Services) GOALS Ensure thatstate agencies utilize efficient banking and funds transfer practices. Maximize interest income from state time deposits. Ensure that all state time deposits are adequately collateralized. 68 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting LOCAL GOVERNMENT INVESTMENT POOL PURPOSE: Offer local governments, state agencies and public entities a safe and efficient investment alternative for investing their funds. (Office of Treasury and Fiscal Services) GOALS Maintain the safety of invested funds. Maintain sufficient liquidity of capital to meet the demands of the participants. Attain a competitive rate of return on the invested funds. Manage the invested funds in an efficient manner, offering participants secure, convenient access to their funds. Make available timely and accurate disclosure of operation and investment information. Maintain the highest fund rating available from a nationally recognized rating service. STATE ADMINISTRATIVE HEARINGS PURPOSE: Hear and decide cases under the Georgia Administrative Procedure Act (O.C.G.A. Section 50-13-let seq.). (Office of State Administrative Hearings) GOALS Conduct hearings mandated by federal and state law in an impartial manner. Administer the hearing process in accordance with all requirements of the Code of Judicial Conduct. FOOD SERVICE PURPOSE: Provide meals and banquet services. (Georgia Building Authority) GOAL Provide quality food services and accommodations in a responsible and cost effective manner. FACILITY OPERATION PURPOSE: Provide quality facilities, real property management and related support services. (Georgia Building Authority) GOAL Provide a safe and pleasant work environment for state officials, employees and the general public and manage the operation of GBA facilities in an efficient, effective, innovative and responsible manner. 69 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting ENERGY CONSERVATION PURPOSE: Reduce state government's energy consumption through the implementation of a energy conservation program. (Georgia Building Authority) GOAL Fund a statewide energy conservation study of all state facilities. FACILITIES PROGRAMMING AND ROOFING PURPOSE: Identify the operational and physical needs of facilities occupied by tenants and to oversee/review the design of facility projects. (Georgia Building Authority) GOALS Ensure and maintain quality standards for various types of roofs and to provide quality design of roofs and roof repairs as well as review of designs prepared by consultants. Provide comprehensive programming, document review and design expertise for facility projects. RECYCLING PURPOSE: Establish and coordinate a statewide recycling program for state agencies and to establish and engage in contract for or otherwise allow or arrange for a collection program for recovered materials generated as a result of agency operations including but not limited to aluminum, high grade office paper, and corrugated paper and for the mulching of composing of yard waste. (Georgia Building Authority) GOAL Have all state entities actively participate in recycling efforts. VAN POOL PURPOSE: Provide altemative\transportation services to state employees. (Georgia Building Authority) GOAL Provide safe, reliable and economical transportation to state employees thereby contributing to a reduction in traffic, pollution, and demand for limited parking on Capitol Hill. 70 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE AGENCY PROGRAMS 1. Statewide Financial Information Systems 2. General Services 3. Statewide Operations and Support Services 4. Electronic Maintenance Services 5. Georgia Statewide Academic/ Telemedicine System 6. Network Services 7. Telephone Systems 8. DOAS Computer Operations/Support 9. Information System Solutions TOTAL ATTACHED AGENCY PROGRAMS 1. State Properties Management 2. Receipt of State Treasury Funds 3. Disbursement of State Treasury Funds 4. Investment of Funds 5. Cash Management and Accounting 6. Local Government Investment Pool 7. State Administrative Hearings 8. Food Service* 9. Facility Operation* 13,494,401 33,456,781 8,465,905 5,407,146 3,723,211 10,447,298 4,558,727 17,809,739 50,357,358 37,425,618 11,245,481 181,385,640 6,283,080 15,111,181 36,400,286 668,788 89,569 89,569 132,209 207,704 573,374 3,660,002 668,788 89,569 89,569 132,209 207,704 3,385,833 14,025,129 31,552,894 8,677,688 5,799,388 3,723,211 10,998,724 4,406,732 18,096,254 46,396,162 34,254,889 11,134,390 173,660,005 6,264,681 14,875,466 36,545,603 517,844 90,166 90,166 133,092 208,917 1,011,919 3,616,082 517,844 32,568 32,568 48,073 75,351 1,341,913 1O. Energy Conservation* 71 DEPARTMENT OF ADMINISTRATIVE SERVICES -- Results-Based Budgeting Program Fund Allocations 11, Facilities Programming and Roofmg* 12. Recycling* 13. Van Pool* TOTAL PASS-THROUGH FUNDING 1. State Health Planning Review Board 2. Aviation Hall of Fame 3. Golf Hall of Fame 4. Payments to the Georgia Building Authority F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 5,421,215 4,573,672 35,000 48,500 85,000 1,090,699 35,000 48,500 85,000 1,090,699 5,669,114 4,049,245 35,000 48,500 75,000 35,000 48,500 75,000 TOTAL 1,259,199 1,259,199 158,500 158,500 TOTAL APPROPRIATIONS 188,066,054 42,233,157 179,589,930 40,752,420 * These are programs of the Georgia Building Authority (GBA) which is adminstratively attached to the Department of Administrative Services (DOAS), but is not budgeted through DOAS. The GBA fmances its operating budget mainly through funds collected from state office space rentals and fees for program services provided. 72 DEPARTMENT OF AGRICULTURE Total Budgeted Positions as of October 1, 1996 -- 871 Commissioner Georgia Seed Technology and Development Commission Georgia Agrirama Development Authority Georgia Development Authority 10 Attached for Admin- 25 istrative Purposes Only 8 I Division of Plant Industry 192 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 Animal Industry 246 Controls all veterinary and related activities...conducts animal disease program operates laboratory facilities tests milk quality...provides poultry and livestock news...grades livestock...enforces laws and regulations 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 Internal Administration 66 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 Fuel and Measures 82 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. 73 Agnculture CommodIty t---- Commissions Peaches-Sweet PotatoesTobacco-Apples-CottonSoybeans-Milk-EggsCanola-Pecan-Corn I Division ofMarketing 120 Operates the Atlanta Farmers Market. ..operates regional and seasonal farmers markets... assists in locating, sustaining or expanding foreign markets ... supervises the eight agricultural commodity commissions...operates international trade office in Brussels. I Division of Consumer Protection 165 Regulates food retail and wholesale stores and food processors...administers grade A milk laws and rates milk quality. DEPARTMENT OF AGRICULTURE Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Market Bulletin Postage Poultry Vet Diagnostics Labs Veterinarian Fees Indemnities Advertising Contract Payments to Georgia Agrirama Major/Minor Market Repairs Southern Cooperative Contract Georgia Development Authority Athens and Tifton Vet Labs Total Funds F.Y.1995 Expenditures 31,316,945 5,142,358 937,984 458,889 272,515 808,272 1,023,368 387,686 407,174 352,932 1,020,000 2,130,411 243,502 101,923 175,000 623,860 699,872 40,000 250,000 2,515,782 48,908,473 Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 3,434,279 5,428,411 8,862,690 40,045,783 888 287 F.Y.1996 Expenditures 30,988,278 5,068,364 1,074,896 830,002 404,514 813,832 1,018,078 741,237 407,717 30,590 946,000 2,535,464 258,108 50,316 175,000 705,708 2,883,633 40,000 250,000 2,658,940 51,880,677 F.Y.1997 Current Budget 32,289,979 4,514,508 959,114 692,227 439,750 814,475 992,587 550,000 412,585 1,046,000 2,719,702 312,000 60,000 175,000 633,431 350,000 40,000 2,750,466 49,751,824 3,501,058 7,406,405 10,907,463 40,973,214 895 295 3,477,835 4,253,823 7,731,658 42,020,166 881 295 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 32,724,659 4,587,408 1,074,894 960,264 439,750 814,475 992,587 970,430 439,185 195,747 53,942 30,000 36,100 50,010 23,500 10,458 32,920,406 4,641,350 1,104,894 960,264 439,750 850,575 1,042,597 993,930 449,643 1,046,000 3,000,933 312,000 60,000 175,000 659,898 2,000,000 40,000 65,000 1,046,000 3,065,933 312,000 60,000 175,000 659,898 2,000,000 40,000 2,988,841 53,286,324 290,280 755,037 3,279)21 54,041,361 3,477,835 4,171,369 7,649,204 45,637,120 881 295 755,037 8 3,477,835 4,171,369 7,649,204 46,392,157 889 295 74 DEPARTMENT OF AGRICULTURE Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Market Bulletin Postage Poultry Vet Diagnostics Labs Veterinarian Fees Indemnities Advertising Contract Payments to Georgia Agrirama Major/Minor Market Repairs Southern Cooperative Contract Georgia Development Authority Athens and Tifton Vet Labs Total Funds 32,690,222 4,514,508 959,742 692,227 439,750 814,475 992,587 550,000 412~585 1,046,000 2,795,555 312,000 60,000 175,000 659,898 40,000 2,988,841 50,143,390 Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 3,477,835 4,254,451 7,732,286 42,411,104 881 295 Redirection Level Funds To Redirect Additions (764,864) (87,495) (41,191) 120,430 (139,778) (37,000) (32,995) 110,378 32,995 (149,442) (1,252,765) 44,576 308,379 (1,252,765) (13) 308,379 Redirection Totals 31,925,358 4,514,508 959,742 604,732 439,750 814,475 951,396 670,430 412,585 1,046,000 2,766,155 275,000 60,000 175,000 659,898 40,000 2,883,975 49,199,004 Enhancements 3,477,835 4,254,451 7,732,286 41,466,718 868 295 Totals 31,925,358 4,514,508 959,742 604,732 439,750 814,475 951,396 670,430 412,585 1,046,000 2,766,155 275,000 60,000 175,000 659,898 40,000 2,883,975 49,199,004 3,477,835 4,254,451 7,732,286 41,466,718 868 295 75 DEPARTMENT OF AGRICULTURE F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRlATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust for non-recurring expenditures: --Relocation of the Thomasville Farmers' Market. 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 42,020,166 775,375 (350,000) (21,641) (12,796) ADJUSTED BASE 42,411,104 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Discontinue the milk production program, a voluntary non-regulatory program. 2. Eliminate ten positions within the Plant Industry, Animal Industry, Marketing and Internal Administration divisions which have been vacant over one year. 3. Reduce various object class expenses. 4. Reduce expenses associated with the Poultry Veterinary Diagnostic laboratories contract. 5. Reduce expenses associated with the Athens and Tifton Veterinary Diagnostic laboratories contract. 6. Reduce payment to the Georgia Agrirama Development Authority. (200,000) (278,673) (451,877) (139,778) (149,442) (32,995) Total Funds to Redirect (1,252,765) ADDITIONS 1. Replace obsolete personal computers, monitors and printers. 2. Provide for supplies and materials ($40,000) and toxicology personnel ($70,378) expenses associated with the Poultry Veterinary Diagnostic laboratories contract. 3. Provide for additional laboratory technician personnel expenses ($22,554) and laboratory equipment purchases ($22,022) associated with the Athens Veterinary Diagnostic Laboratory portion of the Athens and Tifton Veterinary Diagnostic laboratories contract. 4. Replace vehicle van and sufficiently fund cost of part-time personnel at the Georgia Agrirama Development Authority. 120,430 110,378 44,576 32,995 Total Additions 308,379 TOTAL REDIRECTION LEVEL 41,466,718 76 DEPARTMENT OF AGRICULTURE -- F.Y.1998 Budget Summary ENHANCEMENT FUNDS GOVERNOR'S RECOMMENDAnONS CAPITAL OUTLAY 1. Fund construction of a replacement Diagnostic and Investigational Laboratory in Athens to provide regulatory and surveillance testing in compliance with laws governing the sale, interstate transport and export of animals. See Bonds 2 Conduct repairs and renovations at the Atlanta Farmers' Market. See Bonds TOTAL ENHANCEMENT FUNDS TOTAL STATE FUNDS 41,466,718 77 DEPARTMENT OF AGRICULTURE Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Animal Industry 16,017,486 13,010,351 15,795,769 12,788,634 2. Plant Industry 8,530,409 7,899,409 8,492,019 7,861,019 3. Marketing 6,696,286 6,621,286 6,301,736 6,226,736 4. Internal Administration 6,116,254 5,928,754 6,246,210 6,058,710 5. Fuel and Measures 3,453,769 3,449,069 3,497,474 3,492,774 6. Consumer Protection Field Forces 8,355,517 5,111,297 8,283,065 5,038,845 7. Seed Technology and Development 582,103 582,731 TOTAL APPROPRIATIONS 49,751,824 42,020,166 49,199,004 41,466,718 RECOMMENDED APPROPRIATION: The Department of Agriculture is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $41,466,718. 78 DEPARTMENT OF AGRICULTURE Roles and Responsibilities The Department of Agriculture is responsible for enforcing laws and conducting programs safeguarding the quality of agricultural products and encouraging growth in the productivity and income of the state's agricultural industry. The Department's effort 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 test 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 Feed Law, Prompt Pay ofAuctioned Livestock Bill and both inter-state and intrastate 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 meat supply which is wholesome, sound, free of disease, produced under sanitary conditions and bears a truthfuUabel. 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 seasonal/local 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 an 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 farmer foundation agricultural seed stocks of 18 or more different crops comprising 60 to 65 different v{lI"ieties and hybrids according to the requirements and needs for such seed stocks by Georgia farmers. AUTHORITY Title 5, 42-208, Georgia Code Annotated. 79 DEPARTMENT OF AGRICULTURE Strategies 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 (i.e., retail food stores, petroleum products, meat and poultry inspections, etc.). The following strategies and services overviews illustrate activities occurring in the Food and Milk Safety, Pesticide and Pesticide Container Disposal, Agriculture Product Promotion, Fuel and Measures, Structural Pest Control, and the Animal Protection programs. meat for sell to the public. Another event affecting the entire meat inspection program is the federal government's stipulation that state meat inspection programs convert to the Performance Based Inspection System (PBIS). This system electronically generates an objective inspection schedule and criteria based on the specified meat establishment's processes and compliance history. The long range goal of the Meat Inspection program is to provide inspections that are comparable to those conducted at federally inspected establishments in degree and scope, and to effectively PESTICIDE AND PESTICIDE CONTAINER DISPOSAL The Pesticide Division is coordinating a program in conjunction with local governments and organizations to collect plastic pesticide containers for recycling. Presently, 30 counties are involved in this endeavor. The program is projected to recycle 150,000 pounds of chipped plastic in 1996 through these efforts. The division is also sponsoring a program, through a grant from the federal Environmental Protection Agency (EPA), to collect pesticides which can no longer be legally used. In FOOD AND MILK SAFETY The Food and Milk Safety Program consists ofthe following types of inspections: retail food store, meat and milk. The rising number of nontraditional retail sales establishments expanding into the retail food sector has prompted the department to begin implementing a new electronic inspection system to cope with the added workload and other demands these developments in the retail food industry have placed on the department's inspectors. Additionally, the department's retail food inspectors are also continuing to receive advanced level training in all areas of food processing, including in-store meat processing, seafood handling, deli operations and bakery operations in order to remain abreast of developments in the retail food field. Meat inspectors currently inspect and license 158 red meat slaughter and processing facilities for the purpose of assuring the production of wholesome, unadulterated and properly labeled meat/poultry products. The Meat Inspection program's responsibilities were expanded with the commencement of the voluntary inspection program concerning ratite (i.e. ostrich, emu, rhea) slaughter and processing. This new program allows red meat slaughter/processing plants to be approved to slaughter/process ratite Food Establishment Inspections 70,000 .J ~60,000 ..s '0 ] ~ 50,000 70,248 92 93 94 95 96 Fiscal Years cross-utilize resources in performing these inspections whenever possible. Milk safety inspectors inspect dairy facilities for compliance with health and safety regulations concerning milk and dairy products. The federal Food and Drug Administration (FDA) has selected the Georgia Milk Safety Program as one of its state pilots in the development and testing of a new electronic inspection system to be eventually used nationwide. this program, targeted illegal pesticides are collected and disposed by authorized disposal firms to prevent illegal disposal of and environmental contamination from these outlawed pesticides. The three counties (Dooly, Houston and Peach) participating in the program for 1995 collected a total of 8,000 pounds of pesticides for disposal. In 1996, the program enlisted another five counties (Berrien, Brooks, Colquitt, Cook and Lowndes) raising program membership to eight counties. 80 DEPARTMENT OF AGRICULTURE -- Strategies and Services AGRICULTURE PRODUCT PROMOTION The department is continuing its activities to promote Georgia agricultural products in campaigns directed at the domestic and international markets. These campaigns use the theme "Georgia...Always In Good Taste" in publicizing and displaying Georgia products at food and trade shows nationally and internationally. The department is also pursuing broadening the use of the "Georgia...Always In Good Taste" logo in concert with its product promotion efforts. The department is working with large retailers in identifying and marketing Georgia grown and processed items. FUEL AND MEASURES The Fuel and Measures Division is responsible for regulating the accuracy of all commercial weighing and measuring devices, and the quality of petroleum products. The division has recently been able to upgrade three of its four trucks used in inspecting and testing heavy weigh scales to comply with the latest revised federal Department ofCommerce standards for large weigh scale testing. The Division's petroleum fuel and antifreeze inspection and testing outfits now inspect nearly 8,300 service stations and test approximately 17,000 petroleum fuel and antifreeze samples annually. STRUCTURAL PEST CONTROL The Structural Pest Control Program regulates firms, certified operators and employees involved in supplying household pest control services for controlling ants, roaches and other insects, along with wood destroying organisms such as termites, wood destroying beetles and wood destroying fungi. The Governor's and General Assembly's authorized addition of seven positions to this program in F. Y. 1996 is allowing for more timely inspections of dwellings and products treated for these pests. These inspections verify that the dwellings and products have been properly treated for the pest(s) in question. ANIMAL PROTECTION The department enforces the Animal Protection Act which requires pet industry operators (i.e. pet dealerslbrokers, breeders, animal shelters, kennel operators, etc.) to satisfy a variety of standards before being issued an operating license. The Act's purposes are to prevent unhealthy pets from being sold to the public, and to protect animals from abuse or neglect while they are awaiting sale. Inspectors also enforce federal laws regarding the use of controlled drugs for euthanasia at animal shelters, and monitor federal certificates of veterinary inspection and rabies inoculation records. The seven inspectors assigned to this licensing and enforcement program inspect over 2,000 establishments and respond to nearly 300 complaints annually. Petroleum Samples Analyzed 96 9S - 93 - '2~ 14,000 16,000 18,000 Number ofPetroleum Samples Analyzed I 20,000 81 DEPARTMENT OF AGRICULTURE Results-Based Budgeting Program Summaries MAR, KETING AND PROMOTION PURPOSE: Promote agricultural products from Georgia throughout the world. GOAL Increase the value and volume of agricultural products produced in Georgia. FOOD SAFETY AND REGULATORY SERVICES PURPOSE: Provide excellence in service and regulatory functions using state-of the art technology and a professional work force to ensure an abundance of wholesome and disease-free food and fiber to Georgia, America and the world. Regulate through inspections pesticide industries and applicators, fertilizer industries, fuel dispensers, tobacco and grain warehouse and dealers. Regulate through inspections industries engaged in raising, processing and selling hogs, cattle and chickens to the public; to regulate food establishments, dairy processing plants and to inspect bee colonies. GOAL Provide wholesome and disease-free food and fiber by regulating the measuring of quantity and quality standards of Agriculture, Agricultural related goods and petroleum products. ATTACHED AGENCIES SEED TECHNOLOGY AND DEVELOPMENT PURPOSE: Produce, process, treat, store and distribute foundation seed and plant stocks to Georgia seedsmen, nurserymen and grass sod/sprig producers and others where commercialization has established markets. Manage production and marketing licensing agreements for University of Georgia, USDA/ARs plant culivar intellectual properties. (Seed Technology and Development Commission) GOAL Provide high quality seed stocks to Georgia Seedmen, nurseries and grass sod/sprig farms. develop and implement commercialization strategy for University of Georgia. USDA!ARS developed cultivars. Develop manage and implement license agreements for protected cultivars. 82 DEPARTMENT OF AGRICULTURE -- Results-Based Budgeting GEORGIA AGRIRAMA PURPOSE: Market and provide the infrastructure for the preservation and demonstration of Georgia's rural agrarian society in a museum depicting the time period 1870 - 1910. (Georgia Agrirama Development Authority) GOALS Preserve living history interpretation and education for the public. Increase the number of private donations to the museum, both artifacts and funds. Inform the public of educational and entertaining capabilities of the living history museum. Increase visitation and revenue from admissions. Create more merchandising opportunities and income from sales. 83 DEPARTMENT OF AGRICULTURE -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Marketing and Promotion 2. Food Safety and Regulatory Services F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 10,784,853 37,711,437 10,685,853 30,660,882 10,526,263 37,390,112 10,427,263 30,339,557 TOTAL ATTACHED AGENCY PROGRAMS 1. Seed Technology and Development 2. Georgia Agrirama TOTAL PASS-THROUGH FUNDING 1. Federation of Southern Cooperatives/ Land Assistance Fund 48,496,290 41,346,735 582,103 633,431 1,215,534 633,431 633,431 40,000 40,000 47,916,375 40,766,820 582,731 659,898 1,242,629 659,898 659,898 40,000 40,000 TOTAL APPROPRIATIONS 49,751,824 42,020,166 49,199,004 41,466,718 84 DEPARTMENT OF BANKING AND FINANCE Total Budgeted Positions as of October 1, 1996 -- 141 Administrative Assistant 1 I Supervision Program 102 Reviews examination reports and follows up with corrective action if necessary...performs examinations of financial institutions ... investigates applications for new charters and expansions...promotes sound financial practices and encourages institutions to provide a full line of services to public... coordinates and resolves consumer complaints. Commissioner 1 Deputy Commissioner 1 Mortgage/Corporate Program 21 MORTGAGE Processes and acts on applications for license to provide residential mortgage lending and residential mortgage broker services...enforces laws and rules pertaining to residential mortgage lending ...performs compliance examinations of mortgage lenders and brokers...conducts investigations and resolves consumer complaints pertaining to residential mortgage lending. CORPORATE Processes and acts on various applications, including new charters, expansions, relocations, check cashers, check sellers, amendments to articles of incorporation, and name reservations...processes additions and changes to corporate data files... processes revisions to rules and regulations... reviews check cashers and check seller exams. Deputy Commissioner for Legal Affairs 1 I Administrative Program 14 Performs accounting services... prepares budget request. .. provides clerical support for all programs ... processes and distributes currency transaction reports... provides personnel services...provides examiner training...provides programming and maintenance of EDP services... provides an ongoing review of the Department's Strategic Plan initiatives. 85 DEPARTMENT OF BANKING AND FINANCE Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 6,912,624 381,943 373,329 105,602 18,568 300,860 9,986 327,531 58,460 8,488,903 8,488,903 141 55 F.Y.1996 Expenditures 7,059,006 468,038 403,183 80,388 6,776 334,070 5,908 314,037 79,109 8,750,515 8,750,515 141 54 F.Y.1997 Current Budget 7,701,330 455,685 400,000 36,750 8,200 335,000 13,300 295,000 73,000 9,318,265 9,318,265 141 54 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 7,799,806 463,737 404,910 112,380 28,379 364,290 12,935 285,478 75,129 9,547,044 9,547,044 7,799,806 463,737 404,910 112,380 28,379 364,290 12,935 285,478 75,129 9,547,044 9,547,044 141 141 53 53 86 DEPARTMENT OF BANKING AND FINANCE Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Total State Funds Positions Motor Vehicles Adjusted Base 7,839,357 455,685 400,000 36,750 8,200 364,291 12,935 277,112 73,000 9,467,330 9,467,330 141 53 Redirection Level Funds To Redirect Additions (462,740) 317,700 75,630 (462,740) (462,740) (8) 393,330 393,330 7 Redirection Totals 7,694,317 455,685 400,000 112,380 8,200 364,291 12,935 277,112 73,000 9,397,920 9,397,920 140 53 Enhancements Totals 7,694,317 455,685 400,000 112,380 8,200 364,291 12,935 277,112 73,000 9,397,920 9,397,920 140 53 RECOMMENDED APPROPRIATION: The Department of Banking and Finance is the budget unit for which the following State Fund Appropriation for F.Y. 1998 is recommended: $9,397,920. This recommendation is contingent upon the Department's collection of$10,337,712 in examination and administrative fees, which is included in the F.Y. 1998 State Revenue Estimate. The difference between the Department of Banking and Finance's F.Y. 1998 revenue collections and the recommended F.Y. 1998 State Fund Appropriation represents overhead and is intended to cover the cost of support provided by other agencies to the Department of Banking and Finance. 87 DEPARTMENT OF BANKING AND FINANCE F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 3. Reflect a decrease in agency self-insurance rates. 9,318,265 147,729 3,274 (1,938) ADJUSTED BASE 9,467,330 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reallocate eight staff members -- two from the corporate program due to the privatization of the examination of check cashers and six from the bank examination program. 2. Redirect operating expenses. (365,755) (96,985) Total Funds to Redirect (462,740) ADDITIONS 1. Reassign four positions to the mortgage program, two to the data processing section and one to the bank charter program. 2. Fund the replacement of six high mileage vehicles. 3. Fund an increase to the entry level salary for Assistant Financial Examiners granted in F.Y. 1997. 257,700 75,630 60,000 Total Additions 393,330 TOTAL REDIRECTION LEVEL 9,397,920 TOTAL STATE FUNDS 9,397,920 RECOMMENDED APPROPRIATION: The Department of Banking and Finance is the budget unit for which the following State Fund Appropriation for F.Y. 1998 is recommended: $9,397,920. 88 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 of state-chartered fmancial institutions in Georgia. The department provides for: Safe and sound operation of fmancial institutions. Public confidence in our fmancial institutions. Protection for the interests of the depositors, creditor and shareholders of fmancial 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 of Banking 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, 1996, 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 three principal functions: Supervise and regulate fmancial institutions. Licensing mortgage brokers and lenders. Conduct examinations of fmancial institutions and mortgage brokers and lenders as required by law. SUPERVISION AND REGULATION The department has the authority to adopt rules and regulations regarding the operation offmancial institutions to: Allow state-chartered fmancial 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 315 statechartered banks, 94 credit unions, 237 Georgia holding companies, 22 international bank agencies and other regulated companies, 251 check sale and check cashing companies, and seven large bank data processing services. As a result of the Georgia Residential Mortgage Act, Chapter 7-1, Article 13, passed during the 1993 legislative session, the department also regulates mortgage leaders and mortgage brokers required to be registered under the new law. As ofJune 30,1996,1,501 mortgage brokers and lenders were licensed with the department. 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 lenders/brokers--under its regulation at least once each year. Mortgage lenders/brokers are to be examined at least once every 24 months. If necessary, the department may require extra reports and conduct additional examinations to obtain essential infonnation. The department is authorized to issue and enforce orders requiring fmancial institutions to correct unacceptable conditions discovered though fmancial examinations. During 1996, the department conducted 737 examinations, including 165 banks, 90 credit unions, 327 mortgage broker/lenders, and 155 others. OTHER RESPONSIBILITIES Other responsibilities of the department include approval of all proposals to incorporate as a state-chartered fmancial institution, approval of all attempts to change existing articles of incorporation, and approval of all mergers and consolidations offmancial institutions. Due to the passage of the Reigle-Neal Interstate Banking and Branching Efficiency Act, effective September 29, 1995, activity for the department increased because of the allowance of interstate banking. 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 of fmancial institutions. AUTHORITY Title 7 of the Official Code of Georgia Annotated. 89 BANKING AND FINANCE Results-Based Budgeting Program Summaries FINA, NCIAL INSTITUTION SUPERVISION PROGRAM PURPOSE: Perform examinations of financial institutions, including investigating applications for new charters and expansions; and conducting investigations and attempting to resolve consumer complaints. GOALS Ensure the safety and sound operation of financial institutions. Provide for the public confidence in financial institutions. Protect the interests of depositors, creditors, and shareholders of fmancial institutions. Foster appropriate competition among financial institutions. MORTGAGE BROKER EXAMINATION PROGRAM PURPOSE: Monitor the examination of licensed mortgage brokers and lenders to assure compliance with the Georgia Residential Mortgage Act, and investigate consumer complaints. GOALS Determine that the applicants and licensees operate mortgage lending or brokerage activities in compliance with the laws of Georgia and in a marmer which protects contractual and property rights of citizens. Monitor the fmancial responsibility of applicants and licensees. Ensure that applicants and licensees have reasonable policies and procedures to receive and process customer grievances and inquiries promptly and fairly. Determine that the applicant has and maintains an agent for service. FINANCIAL INSTITUTION MONITORING PROGRAM PURPOSE: Act on applications from the financial institutions for new charters, expansions, relocations, and amendments to articles of incorporation; and review check cashers and check sellers. GOALS Provide prompt service on the applications received. Monitor/review statutory requirements regarding applications process and legal factors. Provide for the licensing of check cashers and check sellers. 90 DEPARTMENT OF BANKING AND FINANCE -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Financial Institution Supervision Program 2. Mortgage Broker Examination Program 3. Financial Institution Monitoring Program TOTAL APPROPRIATIONS F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 7,716,162 327,129 1,274,974 9,318,265 7,716,162 327,129 1,274,974 9,318,265 7,772,080 328,927 1,296,913 9,397,920 7,772,080 328,927 1,296,913 9,397,920 91 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Total Budgeted Positions as of October 1, 1996 -- 2,894 Board of Children and Youth Commissioner 4 Deputy Commissioner Administration 52 Manages communications and serves as Liaison with the Board, state and local agencies, and the Legislature... coordinates planning and research...provides legal ser- vices...coordinates apprehension of youth who have absconded from the Department's custody...provides prevention, program development and evaluation services. I Deputy Commissioner for Business Services 52 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 .. .implements and administers management information systems. Deputy Commissioner for Programs 3 I Division of Campus Operations 1,404 Division of Community Programs 610 Provides treatment and rehabilitation in a safe and humane environment for those youth assigned to the five state youth development campuses. Provides effective and efficient management of community-based services within 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. l Division of Detention Services 772 Provides temporary secure 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... operates 20 regional youth development centers. 92 DEPARTMENT OF CHILDREN AND YOUTH SERVICES RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 INCREASE OVER F.Y. 1997 BUDGET REDIRECTION LEVEL ENHANCEMENT FUNDS $163,862,188 $14,883,302 , $150,934,457 $12,927,731 HIGHLIGHTS The Governor's recommended budget for the Department of Children and Youth Services addresses the rapid growth in juvenile detention. The major initiative is to address the overcrowding at the state's juvenile facilities. The F.Y. 1998 budget provides for an increase of 530 beds in the state's Youth Development Campus (YDC) system and an increase of 100 beds in the state's Regional Youth Development Center (RYDC) system. Additionally, the budget provides for the annualized cost of 916 beds partially funded in F.Y. 1997. With these additional beds, capacity will total 3,014 beds at the YDCs and 926 beds at the RYDCs. $7,261,867 to annualize the operating cost of YDC beds and program slots appropriated in F.Y. 1997 as follows: Bill E. Ireland YDC - 182 beds, Augusta YDC - 40 beds, Lorenzo Benn YDC - 20 beds, Pelham YDC - 120 beds, Wrightsville YDC - 500 beds, Augusta Boot Camp - 30 beds and North Georgia Wilderness Program - 24 slots. $8,314,760 to contract with private providers to operate the following new facilities scheduled to open in Fiscal Year 1998: Metro RYDC (200 beds) scheduled to open January 1998. McIntosh YDC (168 beds) scheduled to open February 1998. Emanuel YDC (168 beds) scheduled to open February 1998. $462,733 to provide POST certified training to upgrade youth development worker staff to a correctional officer level. The Governor also recommends the transfer of the Eastman Youth Development Facility to the Department of Children and Youth Services effective July 1, 1997. This will provide flexibility and additional beds for the Department of Children and Youth Services to meet the projected growth in juvenile offenders. Total State Funds Budgeted for Children and Youth Services $ Millions 163.8 148.9 I 126.6 106.3 I ....lllllllllllllllllll! L----,---'"''--,--I------'''--I--,-_-'''---I--,---'"''-I-,-----'''--I--,-_-'''--I---,-~/. 92 93 94 95 96 97 98 Fiscal Years 93 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources F.Y. 1995 Expenditures F.Y. 1996 Expenditures F.Y.1997 Current Budget F.Y. 1998 Agency Requests Redirection Level Enhancements Totals Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Service Benefits for Children Purchase of Service Contracts Grants To Co. Owned Det. Cent Institutional Repairs & Maint. Utilities Total Funds 66,989,770 6,740,555 893,850 262,116 616,324 1,852,749 4,601,861 1,398,007 991,790 623,000 14,902,666 7,522,917 3,014,208 837,513 2,113,642 113,360,968 77,348,990 8,721,288 990,530 455,075 486,381 1,759,978 5,121,645 993,693 967,119 939,042 18,252,062 13,122,428 3,452,738 574,063 2,228,471 135,413,502 93,718,324 8,445,881 929,357 147,402 465,630 1,690,885 6,004,109 280,336 1,012,355 17,610,980 17,129,342 3,715,495 509,559 2,991,126 154,650,781 94,546,107 8,388,867 950,763 147,402 345,294 1,765,885 9,459,260 276,204 1,032,878 17,610,980 17,336,447 509,559 2,985,474 155,355,120 802,174 147,849 10,362 2,500 1,572,160 3,750 4,466 109,696,400 961,930 3,378,782 10,628 116,591,001 95,348,281 8,536,716 961,125 147,402 347,794 1,765,885 11,031,420 279,954 1,037,344 109,696,400 18,572,910 20,715,229 509,559 2,996,102 271,946,121 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 1,839,731 6,923,907 46,250 8,809,888 104,551,080 2,205 187 1,139,822 7,703,203 37,500 8,880,525 126,532,977 2,525 187 5,671,895 5,671,895 148,978,886 2,894 236 4,168,822 4,168,822 151,186,298 2,882 236 91,218 4,260,040 91,218 116,499,783 2 4,260,040 267,686,081 2,884 236 94 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Service Benefits for Children Purchase of Services Contracts Grants to Co. Owned Det. Ct. Institutional Repairs & Main. Utilities Total Funds Adjusted Base 94,353,175 8,494,317 949,357 217,402 357,369 1,765,885 5,892,109 280,036 1,012,355 17,922,910 17,180,906 3,715,495 570,041 2,991,126 155,702,483 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds 4,711,464 4,711,464 150,991,019 Positions Motor Vehicles 2,896 236 Redirection Level Funds To Redirect Additions (3,099,734) (592,740) (6,327) 2,688,355 294,720 7,150 (12,075) (578,486) (25,000) (10,941) 3,494,919 18,250 29,658 (711,328) (1,653,923) (47,510) (6,738,064) 34,900 6,567,952 (129,050) (129,050) (6,609,014) (123) 15,500 15,500 6,552,452 102 Redirection Totals 93,941,796 8,196,297 950,180 217,402 345,294 1,765,885 8,808,542 273,286 1,031,072 17,922,910 16;469,578 2,061,572 570,041 2,978,516 155,532,371 Enhancements 3,210,988 1,298,470 231,758 38,386 188,032 13,000 461,498 116,350 9,966 850,000 6,703,414 10,628 13,132,490 Totals 97,152,784 9,494,767 1,181,938 255,788 533,326 1,778,885 9,270,040 389,636 1,041,038 18,772,910 23,172,992 2,061,572 570,041 2,989,144 168,664,861 4,597,914 4,597,914 150,934,457 2,875 236 204,759 4,802,673 204,759 12,927,731 93 3 4,802,673 163,862,188 2,968 239 95 DEPARTMENT OF CHILDREN AND YOUTH SERVICES F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost oftheF.Y. 1997 pay increase. 2. Transfer special education funding from the Department of Education. 3. Adjust for non-recurring expenditures (equipment purchases). 4. Reflect a decrease in the merit system positions assessments due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 5. Reflect a decrease in agency self-insurance rates. 148,978,886 900,000 1,415,673 (108,261) (130,109) (65,170) ADJUSTED BASE 150,991,019 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Eliminate 211 temporary beds and 41 positions at the Bill E. Ireland, Lorenzo Benn and Augusta YDCs. 2. Redirect funds from existing beds to provide additional treatment services for juveniles with specialized needs at the Lorenzo Benn and Augusta YDCs 3. Redirect funds from Grants to County Owned Detention Centers to privatize the Metro RYDC. The 100 bed Fulton Detention Center will be replaced by a 200 bed facility. Total Funds to Redirect ADDITIONS 1. Provide enhanced educational, counseling and mental health treatment services for juveniles with specialized needs at the Lorenzo Benn and Augusta YDCs. This recommendation reduces the number ofjuveniles at RYDCs awaiting specialized placements. - 2. Add funds to operate the Metro RYDC as a private, 200 bed facility. The facility is projected to open in January 1998. 3. Provide 20 staff and operating cost for the department's transportation network, which transports youth from RYDCs and Court Services to YDCs. 4. Annualize the cost of 100 beds appropriated in F.Y. 1997 for new cottages at Bill E. Ireland, Augusta and Lorenzo Benn YDCs. Total Additions TOTAL REDIRECTION LEVEL (2,527,841) (2,427,250) (1,653,923) (6,609,014) 2,283,694 3,258,000 567,434 443,324 6,552,452 150,934,457 96 DEPARTMENT OF CHILDREN AND YOUTH SERVICES -F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDAnONS ENHANCEMENT FUNDS ENHANCEMENTS 1. Annualize the cost of YDC beds and program slots added in the F.Y. 1997 appropriation as follows: Bill E. Ireland YDC - 142 beds, Pelham YDC - 120 beds, Augusta Boot Camp - 30 beds and North Georgia Wilderness Program - 24 slots. 2. Annualize the cost to convert the Wrightsville YDC from an adult correctional facility to a juvenile facility. 3. Add funds to operate the following new facilities opening during Fiscal Year 1998: Emanuel YDC - 168 bed facility projected to open in February 1998. McIntosh YDC - 168 bed facility projected to open in February 1998. 4. Fund resources needed to meet educational standards in the department's school system. Includes education materials, staff development and distance learning equipment costs. 5. Provide POST certified training to upgrade youth development worker staff to correctional officer level. 2,860,756 3,957,787 5,056,760 589,695 462,733 CAPITAL OUTLAY 1. Fund new construction and institutional repairs and maintenance for DCYS facilities. (Recommend $9,200,000 in Redirected Fiscal Year 1995/1996 Bonds and $19,400,000 in Fiscal Year 1998 Bonds for a total of $28,600,000) See Bonds TOTAL ENHANCEMENT FUNDS 12,927,731 TOTAL STATE FUNDS 163,862,188 97 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Functional Budget Summary 1. Regional Youth Detention Centers 2. Bill E. Ireland Youth Development Campus 3. Augusta Youth Development Campus F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 32,044,339 30,065,778 33,736,722 32,605,504 16,244,894 15,467,451 16,265,999 15,604,236 11,882,349 11,127,663 11,113,984 10,615,301 4. Lorenzo Benn Youth Development Campus 6,875,019 6,551,563 6,579,081 6,339,647 5. Macon Youth Development Campus 6. Wrightsville Youth Development Campus 7. YDC Purchased Services 8. Court Services 9. Day Centers 10. Group Homes 11. Community Purchased Services 12. Law Enforcement Office 13. Assessment and Classification 14. Multi-Service Centers 15. Youth Services Administration TOTAL APPROPRIATIONS 5,564,824 11,479,031 16,281,342 19,210,029 496,745 1,043,480 19,956,552 1,094,527 591,587 3,886,910 7,999,153 154,650,781 5,228,227 11,328,888 15,994,092 19,063,225 496,745 1,043,480 19,129,597 1,094,527 591,587 3,796,910 7,999,153 148,978,886 5,596,491 15,559,857 22,434,992 19,347,410 472,970 1,050,147 21,071,149 1,739,294 594,587 3,938,918 9,163,260 168,664,861 5,308,932 15,149,232 21,969,338 19,191,558 472,970 1,050,147 20,209,264 1,739,294 594,587 3,848,918 9,163,260 163,862,188 RECOMMENDED APPROPRIATION: The Department of Children and Youth Services is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $163,862,188. 98 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. 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 726. 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 23,284 admissions during F.Y. 1996. The Division of Campus Operations is responsible for the management of the five State Youth Development Campuses (YDCs). The campuses, which are secure institutions located in Atlanta, Augusta, Macon, Milledgeville and Wrightsville, house serious juvenile offenders and adjudicated youth sentenced up to 90 days in a YDC by a juvenile court judge. Macon serves 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 five campuses have school programs accredited by the Georgia Accrediting Commission. Each of the five campuses serves a different population: Lorenzo Benn (Atlanta) has a capacity of 148, of which 24 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 of delinquency or previous YDC placements. The capacity of this campus is 368 of which 80 are reserved for 90-day youth. Macon has a capacity of 166 ofwhich 96 are assigned for regular placements and 70 for 90-day youth. These youth have been assessed as having medium to high public risk. Bill E. Ireland (Milledgeville) has acurrent capacity of 522 beds, with 320 being for regular admissions and 202 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. Wrightsville has a capacity of 500 of which 200 are assigned for regular placements and 300 for 90-day youth. This campus serves those youth who have been assessed as having medium to high public risk ratings. The Division of Campus Operations also manages four major contracts to provide facilities for committed youth: Irwin Youth Development Campus, Pelham Youth Development Campus (YDC), Davisboro Youth Development Facility and Eastman Youth Development Facility (YDF). The contract for the Irwin YDC is with the Board of Commissioners of Irwin County which contracts with a private corporation to operate the 316 bed campus. The Department contracts with a private vendor to operate the Pelham YDC which will provide 120 beds for female juveniles. The contract for the Davisboro YDF is with the Department of Corrections to maintain a 100 bed facility for juvenile offenders. The Eastman YDF was established by the Legislature in Fiscal Year 1990 as a specially commissioned 100 bed institution solely dedicated to the housing and rehabilitation of delinquent youth. The youth are transferred from the Department of Children and Youth Services after completing due process procedures. The funding for the Eastman YDF is appropriated in the Department of Corrections budget. In F.Y. 1996,7,370 youth were served in the youth development campuses and youth development facilities. 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-term treatment programs and Project Challenge. Non-residential programs include in-home supervision (which includes electronic monitoring), community schools, multi-services centers, intensive supervision, aftercare and general court services. In 135 counties, departmental staff also provide intake and probation services for the juvenile court, and in 13 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. AUTHORITY Titles 15-11,39-3 and 49-4A, Official Code of Georgia Annotated. 99 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Strategies and Services Youth committed or sentenced to the Department of Children and Youth Services have doubled over the past five years. Overall, Georgia's incarcerated juvenile population for Fiscal Year 1997 to Fiscal Year 2000 is projected to grow at an average rate of eight percent annually. Juveniles account for 20 percent of the property crimes, 10 percent of the violent crimes and 17 percent of the index crimes (such as murder, rape, robbery, aggravated assault, burglary, larceny and motor vehicle theft) reported in Georgia. The School Safety and Juvenile Justice Reform Act of 1994 increased the maximum length of time that a juvenile could be committed to a Youth Development Campus from 18 months to 60 months as a designated felon. The legislation also allows a juvenile court judge to sentence a juvenile offender for a specified term in a DCYS 90-day program. Lengths of sentences range from 60 to 180 days. This part of the legislation is being used extensively by juvenile court judges. Approximately 60 percent of the total number of youth served in the YDCs in Fiscal Year 1996 were under the 90-day provision. COMMITMENTS Commitments of a youth to the Department of Children and Youth Services is often the fmal disposition of the Juvenile Court when probation or other alternative services have failed to prevent a chronic or serious offender from returning to the attention of the court. When a youth is committed to the department, a treatment plan is developed which includes counseling, supervision and placement. Possible placements include admission to a community-based treatment program, 10,000 The Number of Youth Served by the 90-Day Program Continues to Increase 1993 1994 1995 1996 1997 1998 1999 2000 Fiscll1Yean L~ 9O-Day Commitments Regular Commitments admission to a YDC, referral to an outside agency or placement in the youth's own home under specified supervision. The department maintains a classification system of committed youth. The system provides staff with information to: assist in placement decisions; assist in establishing program priorities once a placement is made; and establish a method for security classification for Youth Development Campus placement. Three assessment instruments are completed on all youth: Placement Assessments are used to determine whether a youth will be placed at a YDC or in an alternative program; Risk Assessments determine the youth's potential or risk to re-offend and include factors such as age at first adjudication, number of informal adjustments, number of prior out-ofhome placements, runaways, school problems, use of weapons, etc; Needs Assessments determine the treatment needs of each youth. Areas of concern are residential support, medical, mental health, alcohol and drug treatment, educational and vocational needs. EDUCATION Enabling legislation creating the Department of Children and Youth Services included the department's designation as a Special School District. The DCYS Commissioner serves as the school superintendent. The Board of DCYS functions as the Board of Education. The education programs are accredited by the Georgia Accrediting Commission. The programs provide a full range of academic education which includes regular education services and special education. Annually over six thousand juveniles are educated at the DCYS facilities, meeting the required 300 minutes of education of instructions required of regular school systems. 100 DEPARTMENT OF CHILDREN AND YOUTH SERVICES -- Strategies and Services Currently the YDCs have an average daily population of 1,100 students, the RYDCs have an average daily population of 1,200 students and the community programs serve an average of 105 students daily. The DCYS school system ranks in size with such county systems as Union, Pike and White county school systems in average daily population. REGIONAL YOUTH DETENTION CENTERS The Regional Youth Detention Centers (RYDCs) provide a statewide network of regional detention services for all youth who are determined by the juvenile courts to require secure detention. The primary mission of the RYDCs is to provide detention services for juveniles until there has been a disposition of their case resulting either in commitment to the department or being released. Currently there are 20 RYDCs with a capacity of 726 beds located statewide. In addition the department contracts with Fulton county for 100 beds in the metro area. YOUTH DEVELOPMENT CAMPUSES Youth Development Campuses (YDC) are residential institutions providing education and treatment for those youth committed to the Department of Children and Youth Services by Juvenile or Superior Courts of Georgia. Five campuses, Augusta YDC, Bill E. Ireland YDC, Macon YDC, Lorenzo Benn YDC, and Wrightsville YDC currently have a total capacity of 1,704 beds. The department also manages four major contracts, Irwin YDC, Pelham YDC, Davisboro YDF, and Eastman YDF which provide a total capacity of 654 beds. In order to meet the growing commitments of juveniles in the Georgia juvenile system, the Governor has authorized the department to expand current facilities and open new facilities expanding the number of An Increasing Youth Development Campus Population Leads to More Beds 3,500 3,000 2,500 2,000 1,500 1,000 500 o 1995 1996 1997 1998 1999 2000 Fiscal Years Beds Population available YDC beds to 3,014. Expansions are at the Lorenzo Benn YDC (20-beds) and the Eastman YDF (300-beds). The new facilities will be opening in McIntosh and Emanuel counties with 168 beds each during fiscal year 1998. The department has developed and expanded the Boot Camp program which is a major program within the campus system to deliver services to the growing number ofjuveniles. The Boot Camp program is based on a para-military model with spartan living conditions and strict discipline. The youth receive educational instructions as required by the Department of Education. They receive daily training in drill and ceremony, physical training, work details and group counseling. All movement is in a military fashion. All of the boot camp programs are for the 90-day youth except for the program at the Bill E. Ireland YDC, which serves regular committed juveniles. COMMUNITY PROGRAMS Many of the youth committed to the department do not need to be incarcerated. These youth can be appropriately placed in specialized programs that range from community treatment programs that emphasize tutoring, counseling andjob training to residential programs for those youth with more serious behavior or mental disorders. The community treatment programs include Non-residential programs as follows: Court Services which provide intake, counseling, case management, probation, detention planning, supervision and aftercare services in 159 counties. Community Schools are nonresidential, community-based alternative schools for delinquent and unruly offenders. The department works with the local school systems to provide remedial and basic educational 101 DEPARTMENT OF CHILDREN AND YOUTH SERVICES -- Strategies and Services services to the youth and assist their reentry into the education system. In-Home Supervision allows the youth to remain at home while awaiting court -hearings or out of home placements. The level of supervision and frequency of contacts by the court service worker is determined by an assessment process. Intensive Supervision minimize out-of-home placements by providing daily contact with youth, which extend into the evening hours. The program involves a variety of supervision techniques which include but are not limited to electronic monitoring, curfew checks, drug and alcohol testing, home, school and work visits. Aftercare Services are provided to youth returning to home from YDCs and other out-of-home placements. The program is accomplished by assigning each youth returning to the community to an aftercare team who ensures each youth is afforded education and supervision services in hope of returning the youth back into the community successfully. The community programs include Residential Programs as follows: Attention Homes provide a nonsecure alternative to detention in a RYDC or jail. Placements are located either with private families, group homes or larger institutions. They provide 24-hour emergency care for youth needing temporary placement. Group Homes / Contract Homes provide residential treatment for youth whose home situation is contributing to their behavior. Group Homes are state operated programs located in Albany, Winder, Gainesville and Savannah. Contract Homes are operated statewide with private institutions, community facilities and families. Wilderness Youth Development Programs and Outdoor Therapeutic Programs are outdoor -based treatment programs purchased from private providers. The budget includes five major programs: Baxley Wilderness Program; Blakely Wilderness Program; Middle Georgia Wilderness Program (Cochran); Georgia Wilderness Camping Program (White county); and the EXCEL program . $ Millions YDCs-$82.1 FY 1998 Program Fund Allocations Law Enforcement $1.8 Community - $49.1 102 DEPARTMENT OF CHILDREN AND YOUTH SERVICES Results-Based Budgeting Program Summaries COMMUNITY PROGRAMS PURPOSE: Provide supervision, treatment and rehabilitation ofjuvenile offenders through planning, development and management of community based programs and services. The programs seek to address each youth's need for supervision as well as their physical, mental health, residential support, drug/alcohol and educational/vocational needs. GOALS Provide intake services for diversion or processing into the juvenile justice system for youthful offenders. Provide highly structured, non-secure alternatives to incarceration. Provide supervision and treatment for probated and committed youth consistent with the individual needs of each youth. Assess and classify in a timely manner each youth committed to the Department of Children and Youth Services (DCYS). Operate three non-residential, community based alternative schools for delinquent and unruly offenders intensifying services to the youth and facilitating their re-entry into the public school system. Operate non-secure residential programs (group homes and contract homes) which meet or exceed the Office of Regulatory Services standards for privately operated group homes for delinquent youth. YOUTH DEVELOPMENT CAMPUSES (YDCs) PURPOSE: Protect the youth of Georgia and the public by providing appropriate supervision to juvenile offenders in a safe and secure setting and teaching them to become productive and law-abiding citizens. GOALS Provide a safe and secure facility for all youthful offenders referred to state YDCs. Eliminate all escapes. Rehabilitate youthful offenders to become law abiding and productive citizens. Work to advance youth in academic achievement. Comply with American Correctional Association (ACA) standards for juvenile correctional facilities. DETENTION SERVICES PURPOSE: Provide safe, secure detention services for youth awaiting court hearings or placement in a treatment program. GOALS Provide secure detention ofjuvenile offenders in a safe, clean environment for youth and staff. Provide adequate supervision, health care, education, counseling, recreation and food services to the youth in detention. Meet American Correctional Association (ACA) standards for juvenile detention facilities. 103 DEPARTMENT OF CHILDREN AND YOUTH SERVICES -- Results-Based Budgeting LAW ENFORCEMENT SERVICES PURPOSE: Provide specialized training, security audits and employee background checks, apprehension ofjuvenile offenders and internal/criminal investigations. GOALS Apprehend and return DCYS youth in a secure and timely manner. Transport youth in a safe, secure and timely manner. Train and certify DCYS employees in required areas. Perform background investigations of potential employees, interns, volunteers and contract home parents. 104 DEPARTMENT OF CIDLDREN AND YOUTH SERVICES -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Community Programs 2. Youth Development Campuses (YDCs) 3. Detention Services 4. Law Enforcement Services F.Y. 1997 APPROPRIATIONS TOTA~ STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 47,649,842 72,054,264 33,792,154 1,154,521 46,586,083 69,424,689 31,813,593 1,154,521 49,114,903 82,072,153 35,647,521 1,830,284 48,006,166 79,509,435 34,516,303 1,830,284 TOTAL APPROPRIATIONS 154,650,781 148,978,886 168,664,861 163,862,188 105 DEPARTMENT OF COMMUNITY AFFAIRS Total Budgeted Positions as of October 1, 1996 -- 276 Attached for Administrative Purposes Only Georgia Housing and Finance Authority--o Georgia Environmental Facilities Authority--19 Georgia Music Hall of Fame Authority--15 GeOgia Sports Hall of Fame Authority--3 State Commission for National and Community Service--6 - Housing Trust Fund for the Homeless Commission--Q Board of Community Affairs I Commissioner 16 Manages Board relations... develops policy...initiates special 5 projects...oversees Housing Trust L..- --,....;;-J Fund Commission and Bond Allocation System. I Research and Information Division 38 Collects and analyzes data...writes and edits publications...produces Fiscal Notes and Legislative Analysis...staffs the Georgia Future Communities Commission... handles internal and external requests for local government information...manages Department Geographic Information System (GIS)...develops local government land use and community facilities data...administers Digital Orthophoto Quads (DOQs)...administers Georgia Clean and Beautiful program... oversees local and regional solid waste planning... designs and maintains Department's World Wide Web Home Page. I Business and Financial Assistance Division 32 Oversees Georgia Export Finance Fund, Employment Incentive Program (EIP), Business Disaster Flood Assistance Program (BDFA), Local Revolving Loan Fund programs, Loans for Rural Industry Program, Incentive Loans for Industry Program, Business Retention and Expansion Program (BREP), Regional Economic and Business Assistance Grants (REBA), ARC Revolving Loan Program, Community Development Block Grants (CDGB), Regular Competition Grants, Immediate Threat Grants, Innovative Grants, Supplemental CDBG Flood Program, Lead Abatement Program, Appalachian Regional Commission (ARC) Program and Empowerment Zone! Enterprise Community (EZ!EC) Program. I Planning and Management Division 27 Oversees local and regional comprehensive planning... administers Developments of Regional Impact (DRI) ... administers Regionally Important Resources (RIR)...promulgates State Building Codes...administers State Industrial Building Program ... Administers and monitors Contracts for Regional Planning and Development...provides technical assistance in financial management, personnel, jail management, law enforcement ...administers Local Government Efficiency Grant Program... provides capital projects consulting ...oversees Georgia Music Hall of Fame Authority...oversees Georgia Sports Hall of Fame Authority. I Housing Finance Division 49 Oversees Home Buyer Program (Bond), Own Home Program (HOME)...administers SingleFamily Loan Program, State Home Mortgage Loans, Supportive Housing Operational Funding Program, Supportive Housing Acquisition Fund Program... manages bonds and investments. I Accounting, Audits and Administration Division 41 Administers Local Assistance Grants...administers Local Development Fund: .. conducts RDC Financial Audits, Quarterly Reports Review, Performance Audits, Non-profit Corporations Performance Audits... processes and monitors grants. 106 I Rental Assistance Division 68 Conducts Administrative Hearings ...conducts fraud and abuse hearings... Oversees Ineligible list. .. issues promissory notes ... administers Portability Control Program.. .issues housing assistance payments to landlords... monitors HUD applications and contracts...operates Family SelfSufficiency Program. DEPARTMENT OF COMMUNITY AFFAIRS RECOMMENDED STATE APPROPRIATIONS FORF.Y. 1998 DECREASE OVER F.Y. 1997 BUDGET REDIRECTION LEVEL ENHANCEMENT FUNDS $26,759,978 $13,875,134 $26,664,978 $95,000 HIGHLIGHTS $2,448,892 for a new Regional Economic Development Grant Program. The department will redirect $1,967,500 and the Georgia Environmental Facilities Authority (GEFA) will redirect $481,392 to fund this new program. Businesses and communities share concerns for the regions in which they reside. Labor markets, transportation infrastructure, telecommunication links, technical education and training facilities, and essential product and material suppliers are not confmed to community or county lines but are regional in nature. Increasingly, a community or county will only be competitive for business relocations and expansion if its region is competitive. The Regional Economic Development Grant Program will be designed to encourage and support multi-county and regional collaboration for economic development. Projects eligible for funding will include regional industrial parks, water and sewer treatment facilities, regional transportation and communications facilities (not eligibIe for other funding), regional marketing and recruitment programs and other projects important to regional economic development. This new program responds to the requests of Georgia's local governments to reward and provide incentives for multi-county and regional economic development. Funding for this program in DCA comes primarily from redirecting funds from the Regional Economic Business Assistance (REBA) Progam and the Local Government Efficiency Grant Program. REBA for F.Y. 1998 will have $5.5 million primarily for economic development incentives to help close relocation and expansion deals for specific prospects. Also eligible for REBA funding are assessments of the economic impact of specific relocations and expansions and engineering and design assistance that is part ofa recruitment or expansion incentive package. The Local Government Efficiency Grant Program will be eliminated. Created in 1993 it aimed to stimulate the consolidation of local government units and services. To date, most of the funding has been for consolidation studies or for consolidating 911 services and emergency services. Only one major government consolidation, has occurred - Augusta-Richmond County. $224,000 in Local Assistance Grants to provide state funding to assist Clark Atlanta University's Public Access and Teacher Education Programs ($134,000) and funding to assist with operational expenses ofthe Aviation Museum ($90,000). Clark Atlanta University uses the funding to provide scholarships to eligible students majoring in Education and Library Science. GEORGIA ENVIRONMENTALFACILITIES AUTHORITY $20 million in bonds to provide low interest loans to local governments for water supply and wastewater treatment facilities. $5 million for the removal and remediation of state-owned underground and above ground storage tanks. The Governor recommended $5 million in F.Y. 1996 for this purpose and another $5 million will be needed in F.Y. 1999 to comply with the federal requirements of the safety and regulation of these tanks. Georgia Environmental Facilities Authority Water and Sewer Loan Activity 1991 - 1996 Year 1991 Emergency Loans $169,700 State Bonds $42,456,853 Program Repayments $463,000 1992 $811,068 $41,408,986 $2,382,530 1993 $220,000 $19,404,339 $2,098,000 1994 $780,259 $19,878,660 $22,483,975 1995 $757,750 $18,987,925 $20,933,835 1996 $876.196 $20000000 $33483284 TOTAL $3,614,973 $162,136,763 $81,844,624 Note: Years 1991 and 1992 include Guaranteed Revenue Bonds. TOTAL $43,089,553 $44,602,584 $21,722,339 $43,142,894 $40,679,510 $54359480 $247,596,360 107 DEPARTMENT OF COMMUNITY AFFAIRS Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Felony Expenses Regional Planning and Development Contracts Local Assistance Grants ARC Assessment HUD - CDBG Grants Georgia Environmental Facilities Authority Georgia Housing and Finance Authority ARC - Revolving Loan Fund Local Development Fund Ga. Music Hall of Fame Auth. State Housing Trust Fund National and Community Service Program Ga. Sports Hall of Fame Auth. Regional Economic Business Assistance Grants Local Government Efficiency Grants State Commission on National and Community Service EZIEC Administration EZIEC Grants F.Y.1995 Expenditures 6,980,379 390,050 204,625 12,872 31,293 549,166 4,491,070 221,443 55,070 41,203 2,272,823 4,282,890 91,716 51,042,780 1,971,594 5,286,824 178,526 750,000 287,480 4,625,000 387,186 100,000 788,500 750,000 180,000 107,275 F.Y.1996 Expenditures 7,041,072 667,912 189,716 F.Y.1997 Current Budget 13,171,803 1,615,940 342,534 30,822 508,593 3,419,251 220,265 143,848 96,673 1,102,988 1,257,446 387,197 344,452 2,251,695 2,167,374 10,031,652 97,098 78,822,969 2,305,898 17,412,335 112,439 30,000,000 2,407,840 4,607,000 2,814,244 32,300 750,000 774,059 4,625,000 650,000 715,278 4,625,000 F.Y. 1998 Ajl;ency Requests Redirection Level Enhancements Totals 6,043,511 335,591 175,696 6,043,511 335,591 175,696 1,368 488,430 249,160 132,424 82,110 1,368 488,430 249,160 132,424 82,110 2,063,100 2,063,100 133,355 30,000,000 2,407,840 2,673,532 25,000,000 133,355 30,000,000 27,407,840 2,673,532 650,000 713,860 4,625,000 650,000 713,860 4,625,000 126,790 13,553,133 750,000 216,138 176,728 11,454,604 281,541 6,650,000 500,000 214,856 209,499 190,510 5,500,000 204,114 199,024 103,982 294,492 5,500,000 95,886 300,000 199,024 108 DEPARTMENT OF COMMUNITY AFFAIRS Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Felony Expenses Regional Planning and Development Contracts Local Assistance Grants ARC Assessment HUD - CDBG Grants Georgia Environmental Facilities Authority Georgia Housing and Finance Authority ARC - Revolving Loan Fund Local Development Fund Ga. Music Hall of Fame Auth. State Housing Trust Fund National and Community Service Program Ga. Sports Hall of Fame Auth. Regional Economic Business Assistance Grants Local Government Efficiency Grants State Commission on National and Community Service EZ/EC Administration EZ/EC Grants Adjusted Base 6,234,864 334,749 167,696 1,368 513,430 279,160 132,424 54,610 2,167,374 224,000 112,439 30,000,000 2,408,293 2,814,244 650,000 705,860 4,625,000 215,390 6,650,000 500,000 214,856 209,499 Redirection Level Funds To Redirect Additions (301,138) (7,858) 117,045 8,700 8,000 (25,000) (30,000) (104,274) 27,500 (481,392) 20,916 481,392 (35,693) (168,750) (25,000) (1,150,000) (500,000) (10,742) (10,475) 25,693 168,750 Redirection Totals 6,050,771 335,591 175,696 1,368 488,430 249,160 132,424 82,110 2,063,100 224,000 133,355 30,000,000 2,408,293 2,814,244 Enhancements 650,000 695,860 4,625,000 190,390 5,500,000 204,114 . 199,024 95,000 Totals 6,050,771 335,591 175,696 1,368 488,430 249,160 132,424 82,110 2,063,100 224,000 133,355 30,000,000 2,408,293 2,814,244 650,000 695,860 4,625,000 190,390 5,500,000 299,114 199,024 109 DEPARTMENT OF COMMUNITY AFFAIRS -- Financial Summary Expenditures, Current Budget and Agency Requests Budget ClasseslFund Sources , Business Flood Disaster Recovery Program Regional Economic Development Grant Program F.Y.1995 Expenditures 1,589,704 Total Funds 87,669,469 F.Y.1996 Expenditures (35,355) F.Y.1997 Current Budget 142,761,188 87,079,439 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 1,967,500 58,836,125 25,199,868 1,967,500 84,035,993 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 54,136,392 1,800,813 1,677,976 57,615,181 30,054,288 127 16 93,122,099 8,632,280 2,375,676 104,130,055 38,631,133 124 18 34,498,744 11,945,583 46,444,327 40,635,112 260 7 30,917,632 1,607,820 32,525,452 26,310,673 99 7 25,199,868 30,917,632 1,607,820 32,525,452 51,510,541 99 7 110 DEPARTMENT OF COMMUNITY AFFAIRS -- Financial Summary .F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Business Flood Disaster Recovery Program Regional Economic Development Grant Program Total Funds 59,215,256 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 30,917,632 1,607,820 32,525,452 26,689,804 101 7 Redirection Level Funds To Redirect Additions (2,850,322) 1,967,500 2,825,496 (2,850,322) (4) 2,825,496 2 Redirection Totals Enhancements 1,967,500 59,190,430 30,917,632 1,607,820 32,525,452 26,664,978 99 7 95,000 95,000 Totals 1,967,500 59,285,430 30,917,632 1,607,820 32,525,452 26,759,978 99 7 111 DEPARTMENT OF COMMUNITY AFFAIRS F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment: --Department of Community Affairs --Georgia Music Hall of Fame Authority --Georgia Sports Hall of Fame Authority 2. Reflect a decrease in agency self-insurance rates of $1 ,296 for the Department of Community Affairs and $120 for the Sports Hall of Fame and an increase in agency self-insurance rates of $453 for the Georgia Environmental Facilities Authority. 3. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 4. Adjust for non-recurring expenditures: --Department of Community Affairs - Reduce funding for one-time Local Assistance Grants. Funds remain for Clark Atlanta University's Public Access and Teacher Education Programs ($134,000) and for operational expenses at the Aviation Museum ($90,000). --Georgia Music Hall of Fame Authority - Delete funding for equipment purchases for start-up operations. --Georgia Sports Hall of Fame Authority - Remove funding for temporary labor. --Georgia Sports Hall of Fame Authority - Remove funding in equipment ($4,000), real estate rentals ($11,000), computer charges ($10,000), and per diem, fees, and contracts ($35,000) for . initial start-up operations. 5. Adjust for federal and other revenue sources: --State Housing Trust Fund - Payment of $3,260,000 in receipts from the Georgia Housing and Finance Authority (generated from repayment of loans by six communities that received economic incentive loans through the authority's loan program). Using additional funds, the total appropriation level for the Housing Trust Fund remains at $4,625,000. --Georgia Music Hall of Fame Authority - Reflect an adjustment in projected authority revenues. ADJUSTED BASE 40,635,112 50,883 2,802 740 (963) 8,556 (17,188,335) (14,260) (6,771) (60,000) 3,260,000 2,040 26,689,804 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Abolish two positions ($133,681), increase the lapse ($22,500), and replace state funds with other funds for two positions ($144,957). 2. Decrease printing costs in two divisions ($7,858) and reduce rent ($25,000) due to office move. 3. Reduce consultant contracts for Regionally Important Resources ($20,000) and Solid Waste Plans ($10,000). 4. Reduce funding for Regional Planning and Development Contracts by 5%. 5. Reduce administrative fees for the Empowerment Zone/Enterprise Community Program by 5%. 6. Reduce funding for Regional Economic Business Assistance Program by 17.29%. 7. Eliminate the Local Government Efficiency Grant Program. 8. Georgia Music Hall of Fame Authority - Reduce funding for non-sponsored music programs. 9. Georgia Sports Hall of Fame Authority - Use carry over funding from F.Y. 1996 ($7,000) and excess funding for F.Y. 1997 ($18,000) to fund F.Y. 1998 operations. (301,138) (32,858) (30,000) (104,274) (10,475) (1,150,000) (500,000) (35,693) (25,000) 112 DEPARTMENT OF COMMUNITY AFFAIRS ~- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDAnONS 10. Georgia Environmental Facilities Authority - Reduce personal services ($31,283) and regular operating expenses ($18,906). 11. Georgia Environmental Facilities Authority - Eliminate financial/audit consulting contracts. 12. Georgia Environmental Facilities Authority - Redirect funds from the Emergency Loan Program, reducing program funding to $676,875. 13. Georgia Environmental Facilities Authority - Eliminate the Regional Solid Waste Grant Program. 14. State Housing Trust Fund - Decrease state funding for existing programs. 15. Georgia Commission for National and Community Service - Reduce lapse ($5,242), regular operating expenses ($4,000), travel ($500), and telecommunications ($1,000). (50,189) (15,578) (35,625) (380,000) (168,750) (10,742) Total Funds to Redirect (2,850,322) ADDITIONS 1. Provide state funds in order to retain two positions ($117,045) and operating expenses ($16,700) for the Incentive Loans for Rural Industry Program currently supported by GHFA funds. 2. Increase telecommunication costs for increased phone line charges. 3. Fund a new assistance program for regional economic development - Regional Economic Development Grant Program. 4. Increase the state's share for the Appalachian Regional Commission assessment. 5. Georgia Music Hall of Fame Authority - Provide funds for regular operating expenses ($167,018), marketing ($20,687), telecommunications ($4,000), and per diem, fees, and contracts ($22,266), but partially off-set by increases in projected authority revenues ($188,278) from sponsorships, foundations, and other promotional activities. 6. Georgia Environmental Facilities Authority - Fund a multi-county, regional environmental facilities program to be part ofthe Regional Economic Development Grant Program. 7. State Housing Trust Fund - Fund the Care for the Children of Homeless Families Program. 133,745 27,500 1,967,500 20,916 25,693 481,392 168,750 Total Additions 2,825,496 TOTAL REDIRECTION LEVEL 26,664,978 ENHANCEMENT FUNDS ENHANCEMENTS 1. Georgia Commission for National and Community Service - Increase the state match for administrative costs to 50 percent ($299,114) as required by new federal regulations. 95,000 CAPITAL OUTLAY 1. Georgia Environmental Facilities Authority - Provide $20 million for low interest loans to local governments for construction of water and sewer facilities. 2. Georgia Environmental Facilities Authority - Provide $5 million for removal, replacement or remediation of underground and above ground storage tanks. TOTAL ENHANCEMENT FUNDS See G.O. Bonds See G.O. Bonds , 95,000 TOTAL STATE FUNDS 26,759,978 113 DEPARTMENT OF COMMUNITY AFFAIRS Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS 1. Executive 2. Research and Infonnation 3. Planning and Management 4. Business and Financial Assistance TOTAL 1,053,363 2,896,369 4,481,067 39,376,604 STATE 546,906 2,448,142 4,276,254 7,828,061 TOTAL 552,492 4,329,062 3,800,775 37,913,048 STATE 552,492 4,329,062 3,626,247 6,839,491 5. Housing and Finance 4,005,987 6. Accounting, Audits, and Administration 31,675,352 25,535,749 12,690,053 11,412,686 7. Rental Assistance 3,590,697 TOTAL APPROPRIATIONS 87,079,439 40,635,112 59,285,430 26,759,978 RECOMMENDED APPROPRIATION: The Department of Community Affairs is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $26,759,978. 114 DEPARTMENT OF COMMUNITY AFFAIRS Roles and Responsibilities The mission ofthe Department ofCommunity 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. 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 of administrative areas such as payroll, budget and accounting, and procurement. The department conducts code enforcement training for local government inspectors in implementing the statewide uniform cCilnstruction 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 and also contracts with RDCs to provide technical assistance to local governments. COMPREHENSIVE PLANNING ASSISTANCE/SOLID WASTE MANAGEMENT PLANNING The department has primary responsibility for implementing the Planning Act 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 governments; 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. INFORMATION 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 finance data; population, economic and other demographic data; census data; the historical data; and state agency data. Additionally, the database is incorporated into the states'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-through grants. Such grants/contracts administered by DCA include state contracts for Regional Planning and Development, Local Assistance Grants, Local Development Fund, Regional Economic and Business Assistance Grants and Local Government Efficiency Grants. ATTACHED AGENCIES The Georgia Environmental Facilities Authority makes low cost loans available to local governments for water supply, wastewater treatment and solid waste facilities and coordinates the remediation and removal of state owned underground storage tanks. The Georgia Housing Finance Authority assists low and moderate income Georgians in obtaining affordable housing. 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 Hall of Fame Authority has responsibility to operate, maintain and promote a facility housing the Georgia Music Hall of Fame. The Georgia Sports Hall of Fame Authority has responsibility to construct, operate, maintain and promote a facility to house the Georgia Sports Hall of Fame. 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 ofthe Official Code of Cieorgia Annotated. 115 DEPARTMENT OF COMMUNITY AFFAIRS Strategies and Services Strong communities are critical to Georgia's political, economic and social development. The future growth of the state i& 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 a positive relationship between state government and the multitude of local governments in Georgia. DCA serves as an advocate for local governments and provides planning, management and financial assistance to help local officials meet the challenging community and economic development needs of the future. Moreover, the department 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. COMPREHENSIVE PLANNING As a result ofthe 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 uniformity and consistency, DCA is responsible for the overall management of the planning process. For local comprehensive planning the department, with 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. To date, all but twelve of Georgia's 692 local governments have completed comprehensive plans meeting the requirements of the Georgia Planning Act. Some of the benefits resulting from local comprehensive planning include: 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 of environmental protection issues; and an increase in adoption of historic preservation, tree and sign ordinances. REGIONAL DEVELOPMENT Many problems transcend local boundaries and multi-jurisdictional or regional solutions are needed. Communities have asked for financial assistance in creating regional solutions. The Governor is recommending such a program that focuses on regional economic development activities. The Regional Economic Development Grant Program is a grant program whose focus is to encourage and support multi- county/regional economic development projects such as regional or multi- county industrial parks, water/sewer facilities and regional marketing and recruitment programs and regional transportation and communications projects. For F.Y. 1998 a total of $2,448,892 is recommend for this program. The department is contributing $1,967,500 and the Georgia Environmental Facilities Authority is contributing $481,392. With this new program, the Regional Economic Business Assistance Grant Program (REBA) will be focused primarily on economic development incentives for prospect driven projects. The department also assists with regional planning and development through contracts with RDCs and other eligible regional organizations to address regional planning and development issues. For F.Y. 1998, $2.17 million is available for these contracts. The funds are being used for activities such as: providing information required by DCA for setting the regional planning standards; providing technology (e.g., hardware, software, Geographic Information Systems enhancements) needed to facilitate use or development of information required in regional regional planning; and preparing regional plans. DCA is charged by law with conducting performance audits ofRDCs. The RDCs are an essential element of the statewide 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 16 RDCs within the state. To date, DCA has conducted 25 RDC performance audits, one special review of the City of Quitman and three RDC nonprofit corporation audits. HOUSING ASSISTANCE. This department administers programs aimed at increasing the number offirst time home owners in the state. The state and federally funded HOME programs offer qualified first time home buyers low interest loans and down payment assistance. Additionally, multifamily housing programs encourage developers to increase the number of low income residential rental developments they build or rehabilitate. Developers can obtain public and private financing from a number of sources including the HOME Investment Partnerships (HOME) Program, Low Income Housing Tax Credits, and Georgia Housing Trust Fund monies. Finally, the department administers 116 DEPARTMENT OF COMMUNITY AFFAIRS -- Strategies and Services the federally funded Stewart B. Georgia's communities with economic housing units that benefit Georgians with McKinney Homeless Assistance Act development. low/moderate incomes. During the programs and the state funded Georgia The Employment Incentive same period, CDBG funds were used to Housing Trust Fund for the Homeless Programs (EIPs) funds projects which construct 147 facilities like senior programs. These state and federal will result in new or retained jobs for centers, day care centers, and health programs aid homeless shelters and low and moderate income persons. centers. These 147 facilities serve over agencies with assisting the state's These projects have already resulted in 154,358 low/moderate income people. homeless with r - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - , The state adequate housing. GRANT ACTIVITY funded Regional In F.Y. 1996, 359 July 1, 1991 to June 30,1996 Economic Business projects received Assistance Grant funds from these Type of programs. Grants Projects Funded Total (REBA) Program Assistance provides flexible RENTAL Appalachian Regional Commission and timely financial 98 $14,197,041 assistance to job ASSISTANCE Community Development Block Grant Employment Development Programs Administering Governor's Emergency Fund the federal Section 8 Local Assistance Grants 511 $192,336,442 retaining or job 99 $15,175,867 677 $6,927,361 c rea t i n g 337 $16,022,798 de vel 0 p men t program in 149 of Local Development Fund 570 $4,790,299 projects. For F.Y. Georgia's 159 Local Government Efficiency 90 $2,214,307 1997, this grant counties is the Regional Economic Business Assistance Grants 68 $15,354,336 program allocates d epa r t men t ' s 75 percent of its responsibility. This TOTAL program provides L- 2,450 $267,018,451 budgeted funding for ---' direct community low income families e con 0 m i c with quality affordable rental housing. over 17,879 jobs created or retained, of development assistance projects. DCA Funded by the department of Housing which over 13,908 went to persons of guidelines for grant awards for direct and Urban Development (HUD), the low and moderate income. The projects economic development assistance program's regional offices are in leveraged over $566,471,997 in private stipulate that projects will be considered Albany, Athens, Carrollton, Eastman, investments. Also through EIPs, based upon: numbers and types ofjobs and Waycross. Rent subsidies are Georgia communities have established retained and/or created; total private provided to landlords who agree to Revolving Loan Fund (RLF) programs. capital investment; impact on the state, maintain their rental properties at the RLFs provide loans to local start-up and regional and community tax base; degree required Housing Quality Standards and expansion businesses which provide a of local commitment; consistency with to rent to qualified low income families. variety of services to help local local and regional development goals The Family Self Sufficiency communities improve their quality oflife and objectives; project impact; program is an effort to reduce and which provide important reasonableness of cost estimates; and participants dependency on Section 8 employment opportunities, particularly assessment of criticality of state and other public support. Public and for low and moderate income people. assistance to retention and recruitment of private sector resources provide The Innovative Grant Program is a companies. The department seeks the education, counseling, job placement new grant directed toward simulating advice ofother state agencies such as the assistance, job training and other new approaches to old problems and to Department of Industry, Trade, and supportive services to help participants encouraging projects which address the Tourism in making this final assessment. become self sufficient. needs of low and moderate income For F.Y. 1997, $ 4,987,500 was set persons in innovative ways. Begun in aside for direct funding assistance for COMMUNITY ECONOMIC 1992, this program has funded 10 community and economic development DEVELOPMENT GRANTS projects totaling over $3.2 million in projects. The department provides economic development assistance to local governments through administration ofa number of grant programs. The assistance. Regular competitive grants (the majority ofCDBG projects) fund public facilities, economic development and This fiscal year, a total of32 grant awards with a funding commitment of $318,410 has been made for direct project assistance. federally funded Community housing projects which primarily benefit For F.Y. 1998, the Governor is Development Block Grants (CDBG) support several programs which assist low and moderate income persons. CDBG funds were used to rehabilitate recommending $5,500,000 for REBA's direct project assistance grants. 117 DEPARTMENT OF COMMUNITY AFFAIRS -- Strategies and Services Included in these grants is assistance for assessment of the economic impact of projects and for design and engineering services that are part of an economic incentive package. GEORGIA ENVIRONMENTAL FACILITIES AUTHORITY The Georgia Environmental Facilities Authority primarily provides low interest loans to local governments for water supply and wastewater treatment facilities. An addition to the authority's legislation in 1989 allowed for loans for solid waste management facilities from authority assets. In F.Y. 1995, GEFA assumed responsibility for administering two federal programs including the disbursement ofall federal energy related program funds and the administration of the State Revolving Loan Fund (SRF) for sewer and wastewater projects. During F.Y. 1997, GEFA will receive two years of funding totaling approximately $25 million to administering a new federal drinking water program. These funds will be used primarily for loans to local governments for drinking water related projects. The drinking water fund will be about $13 million in each subsequent fiscal year. In F.Y. 1996, the responsibility of the removal and remediation of stateowned underground and above ground storage tanks was given to GEFA. The F.Y. 1996 budget included $5 million in G.O. bonds for assessment, remediation and removal of the tanks. Governor Miller is recommending another $5 million in F.Y. 1998 to bring stateowned fuel storage tanks (both underground and above ground) into compliance. One more year qf funding at the $5 million level will be required for the state to meet the requirements of the law for its tanks. Since the loan program for water and sewer construction started in 1984, GEFA has loaned approximately $347 million for 466 different projects to local governments. During Governor Miller's administration, the state has provided loan assistance to local governments for water and sewer projects for a total of $239,587,353. For F.Y. 1998 the Governor is again recommending $20 million in general obligation bonds for water/sewer and wastewater loans. GEORGIA AMERICORPS In response to President Bill Clinton's signing of the National and Community Service Trust Act in 1993, Governor Zell Miller signed an executive order in the same year, creating the Georgia Commission for National and Community Service. The commission was charged with creating a program of community service for citizens in the State of Georgia. The intention is to meet critical needs (i.e., education, human, and public safety) in Georgia's communities by providing direct community-based service. To date, Georgia has over 400 Americorps members who provide over 600,000 hours ofcommunity service to rural and urban communities all over the state. Members run after school programs for at-risk and disabled children, take senior citizens on morning walks, revitalize urban creeks, provide in home services to the disabled and elderly etc. 118 DEPARTMENT OF COMMUNITY AFFAIRS Results-Based Budgeting Program Summaries LOCAL AND REGIONAL PLANNING AND DEVELOPMENT PURPOSE: Implement programs that encourage and provide financial assistance for comprehensive and coordinated planning for all local governments and regional planning organizations. GOALS Encourage local governments to develop comprehensive plans that reflect citizens needs and help guide local decision making. Encourage awareness ofthe implications of increased regional cooperation. Promote the protection of critical resources. Enhance the effectiveness and efficiency of public service delivery. Promote economic and community development objectives ofthe state and its local governments. Reward local government planning by funding assistance for specific projects. Increase the number of multi-county and/or regional economic development projects. Achieve greater economies of scale through multi-county/regional cooperation. COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PURPOSE: Distribute HUD non-entitlement CDBG funds to local units of government on a competitive basis for projects that benefit low-moderate income persons. GOALS Provide decent housing and suitable living environment for low-moderate income persons. Assure compliance with federal law and regulations by local units ofgovernment administering CDBG funds. Provide technical assistance and training to local grantees. INFORMATION, RESEARCH AND ANALYSIS PURPOSE: Provide information and analysis on local government operations and issues in a format useful to state and local decision makers; collect and distribute geospatial data for local, regional and state planning and development. GOALS Provide fiscal impact analysis to the General Assembly on bills and joint resolutions affecting local governments. Produce publications that present local and statewide data in an easily assessable and understandable format. Identify economic, governmental, and social issues affecting local governments. Provide information on Department of Community Affairs programs and activities. Maintain a global positioning system (GPS) base station. Review geographical data collected from state, regional, and federal agencies. Distribute geographical information to local governments and regional development centers for local planning purposes. Collect accurate and relevant local government data. Provide quality information to local governments in their planning and management efforts. 119 DEPARTMENT OF COMMUNITY AFFAIRS -- Results-Based Budgeting TARGETED AREA ASSISTANCE PURPOSE: Improve the social and economic condition of Georgians living in the state's Appalachian Regiop and act as a fiscal intermediary for Georgia's Empowerment Zones and Enterprise Communities. GOALS Provide residents with the skills and knowledge necessary to compete in a world economy. Provide necessary infrastructure for self-sustaining economic development. Foster leadership opportunities to the people in the specified targeted areas. Provide access to financial and technical resources to help build local economies. Provide access to affordable health care. Ensure compliance with the terms and conditions of grant awards. GOVERNMENTAL MANAGEMENT PURPOSE: Provide technical assistance to local governments in the areas of operations, organizational structure, and community development. GOALS Provide workshops and training to local government officials. Promote implementation of the comprehensive planning process. HOUSING ASSISTANCE PURPOSE: Provide financial assistance for the acquisition, construction or rehabilitation of quality affordable housing for low and moderate income families in Georgia. GOALS Assist in increasing the number of first time home buyers in the state. Assist in increasing the number of new and rehabilitated low income residential developments. Provide income housing to low income families through rent subsidies to landlords. SOLID WASTE REDUCTION AND EDUCATION PURPOSE: Assist local governments with identifying ways to reduce the amount of solid waste being placed in local area landfills; provide solid waste public education; support local Keep America Beautiful affiliates; and promote litter awareness. GOALS Market and support the Keep America Beautiful concept to local communities. Promote public education and information on a statewide basis on issues dealing with solid waste. Promote state litter reduction program. Review state and local solid waste management planning activities. Assist local governments in developing needed infrastructure for waste reduction activities. Provide waste reduction management and financial technical assistance to local governments through workshops, publications, and consultation. 120 DEPARTMENT OF COMMUNITY AFFAIRS -- Results-Based Budgeting REGIONAL ECONOMIC BUSINESS ASSISTANCE PURPOSE: Provide for business expansion and relocation to Georgia through funding assistance to local governments, authorities, and state agencies in the area of public works improvements, land acquisition, and the promotion of commerce. GOALS Create jobs and increase private investment by assisting communities with company expansion or location commitments. BUILDING ASSISTANCE AND REGULATION PURPOSE: Ensure greater quality construction of housing by promoting the Georgia State Minimum Standard Codes for Construction used by local government officials and the general public and ensure compliance with these codes when homes or buildings are manufactured inside a factory and then transported and constructed at a offsite location. GOALS Regularly review, update, and interpret the Georgia State Minimum Standard Codes. Provide technical assistance to local governments for code enforcement programs. Monitor industrialized building manufacturers and inspection agencies. Issue Industrialized Building Insignia. Maintain and interpret the Rules of the Commissioner for Industrialized Buildings. REGIONAL DEVELOPMENT CENTER AUDITS PURPOSE: Assess and report on the efficiency and effectiveness ofRDC operations and the extent to which regional development center's comply with state and federal statutes, rules, and regulations. GOALS Ensure regional development centers use public funds efficiently. Help improve regional development centers' operations. Provide federal agencies with information regarding regional development centers' management of federal grant programs. ATTACHED AGENCIES ENERGY RESOURCES PURPOSE: Provide financial assistance in the form of grants to institute and encourage energy efficiency in all sectors of the economy. (Georgia Environmental Facilities Authority) 121 DEPARTMENT OF COMMUNITY AFFAIRS -- Results-Based Budgeting GOALS Provide funding support to local governments and non-profit agencies for a broad range of energy initiatives including the State Energy Code. Assist state agencies in complying with alternative fuel vehicle requirements. P~ovide comprehensive energy information to education systems and the general public. ENVIRONMENTAL RESOURCES PURPOSE: Provide low-cost capital to local governments in Georgia for water supply, wastewater collection and treatment, solid waste management and recycling projects through loans and grants. Provide technical assistance to owners of small water systems and provide assistance to personnel responsible for providing proper management and compliance of state-owned fuel storage tanks. (Georgia Environmental Facilities Authority) GOALS Stimulate economic development and job creation through the provision of loans for the water and sewer aspects of local economic development contracts. Assist local governments in complying with environmental standards and addressing capacity problems. Promote effective management of local water, sewer and solid waste management systems. Encourage removal and remediation of state-owned fuel storage tanks. MUSIC MUSEUM PURPOSE: Promote Georgia's musical heritage to Georgians and out-of-state visitors through maintenance of a first class museum with quality exhibits. (Music Hall of Farne) GOALS Serve as a conduit by which Georgia's contributions to music history and lore can be preserved in perpurtuity. Achieve operational self-sufficiency within five years. Attract visitors to the Music Hall of Fame Provide creative, informative, and entertaining exhibits for children and adults. SPORTS MUSEUM PURPOSE: Promote Georgia's sports heritage to Georgians and out-of-state-visitors through maintenance of a first class museum with quality exhibits. (Sports Hall of Farne) GOALS Serve as a conduit by which Georgia's contributions to sports history and lore is preserved in perpurtuity. Achieve operational self-sufficiency within five years. Attract visitors to the Sports Hall of Fame Provide creative, informative, and entertaining exhibits for children and adults. 122 DEPARTMENT OF COMMUNITY AFFAIRS -- Results-Based Budgeting HOMELESS ASSISTANCE PURPOSE: Provide financial support, through loans and grants, and technical assistance to entities whose mission is to increase the supply, quality and affordability of shelter and housing for homeless and very low income persons and families. (State Housing Trust Fund) GOALS Improve the administrative and technical capacity of local nonprofit housing providers. Award grants to organizations who provide daycare and after school facilities for the care of children from homeless families. Assist nonprofit organizations with the operation of shelter facilities and the provision of essential services to homeless persons. Provide low interest loans to local nonprofit housing providers for the construction and rehabilitation housing units that target the homeless or other special need populations. STATE COMMUNITY SERVICE PURPOSE: Implement a national program of community service in Georgia. (State Commission for National and Community Service) GOALS Create and operate an effective state Americorp program in Georgia that provides projects useful to the development of Georgia's communities. Provide educational vouchers to Americorp participants. 123 DEPARTMENT OF COMMUNITY AFFAIRS -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Local and Regional Planning and Development 2. Community Development Block Grant 3. Information, Research and Analysis 4. Targeted Area Assistance 5. Governmental Management 6. Housing Assistance 7. Solid Waste Reduction and Education 9. Regional Economic Business Assistance 10. Building Assistance and Regulation 12. Regional Development Center Audits 13. Local Government Efficiency TOTAL ATTACHED AGENCY PROGRAMS 1. Energy Resources 2. Environmental Resources 3. Music Museum 4. Sports Museum 5. Homeless Assistance 6. State Community Service TOTAL F.Y. 1997 APPROPRIATIONS TOTAL STATE 3,768,155 3,562,192 32,729,841 1,510,050 469,419 831,581 12,978,551 952,691 6,650,000 721,822 310,476 500,000 61,422,586 1,007,763 1,231,687 360,704 721,063 3,912,872 818,576 6,650,000 450,588 272,817 500,000 19,488,262 711,160 2,277,500 715,278 281,541 4,625,000 214,856 8,825,335 279,563 2,128,277 715,278 281,541 115,000 214,856 3,734,515 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 5,616,477 32,335,569 1,340,856 481,088 765,759 2,814,244 943,706 5,500,000 732,841 312,233 5,531,202 1,433,229 1,335,980 381,767 763,134 2,814,244 939,956 5,500,000 555,687 312,122 50,842,773 19,567,321 462,419 2,491,331 1,695,848 190,390 4,625,000 591,559 10,056,547 75,822 2,332,471 695,860 190,390 3,375,000 299,114 6,968,657 124 DEPARTMENT OF COMMUNITY AFFAIRS -- Results-Based Budgeting F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE PASS-THROUGH FUNDING 1. Local Assistance Grants 17,412,335 17,412,335 224,000 224,000 TOTAL APPROPRIATIONS 87,660,256 40,635,112 61,123,320 26,759,978 125 DEPARTMENT OF CORRECTIONS Total Budgeted Positions as of October 1, 1996 -- 14,000 Board of Corrections COnHdential Secretary Board Liaison - 1 Executive Assistant f- 38 Administers special projects and ongomg operations of specialized services on behalf of the Commissioner ...includes projects such as Canine Units, Communications Center, Internal Affairs, Law Enforcement Liaison, Tactical Squads, and Telecommunications. I Commissioner I Assistant Commissioner Correctional Industries ----- I 1 I I I I ____ JI 178 Oversees the activities of the Executive Operations Division of the Department...these ongoing programs/operations include: Commissioner's Awareness Program, Engineering and Inmate Construction, Public Affairs, Legal Services, Legislative Services, Strategic Management, and Victims' Services. I Facilities Division 12,085 Supervises the operations of state incarceration facilities including Boot Camps, Diversion Centers, Parole Centers, Probation Detention Centers, and Transitional Centers...also supervises Offender Programs and services for special offender population groups such as juveniles and women. I Human Resources Division 141 Administers all personnel operations including training...also oversees offender medical services. I Administration Division 126 Provides support services for the Department, including budget preparation and monitoring, grant administration, payroll accounting, fiscal and property audits, fleet/risk management, offender care and custody services, and purchasing...oversees the activities of the Management Information System and the Food and Farm systems of the Department. I Probation Division 1430 Supervises the operations of all field activities related to supervising probationers in the community...includes services for the courts and for the communities (using unpaid offender labor) as well as basic and intensive supervision for offenders. 126 DEPARTMENT OF CORRECTIONS RECOMMENDED STATE APPROPRIATIONS FORF.Y. 1998 INCREASE OVERF.Y. 1997 BUDGET REDIRECTION LEVEL ENHANCEMENT FUNDS $724,401,093 $17,769,673 $706,939,675 $17,461,418 HIGHLIGHTS $7,672,758 provides for start-up and operating costs for 768 additional prison beds scheduled to come on-line during Fiscal Year 1998. This prison bed expansion includes 384 beds at Pulaski State Prison and 384 beds at Augusta Correctional Medical Institution. $7,893,805 provides funds to annualize operational costs of 1,260 additional beds opened during Fiscal Year 1997. This includes 384 beds at Autry State Prison, 192 at Coastal State Prison, 192 beds at Lee State Prison, 192 beds at Hancock State Prison and 300 beds at Eastman Youth Development Facility. The Governor recommends privatization of 5 Transitional Centers and 17 Diversion Centers currently operated by the Department of Corrections. It is projected that a ten percent savings over the current state cost will be realized through this privatization. $5,067,000 is recommended for a 5% conditional pay increase for correctional officers who work in high security prisons. This includes 17 Level V and Level VI institutions which are the most secure and restrictive within the system. These institutions house inmates who are high escape risk, have a history of violence, were convicted of a heinous or notorious crime, or who present management problems at other institutions. The conditional pay for security staff at these high mission prisons will help ease the continuing recruitment and retention problems. $1,460,250 fimds a 5% special pay provision for food service and maintenance workers who directly supervise inmates. $2,527,769 is recommended to provide care and custody, medical and food costs for inmates placed in 1,830 beds added to existing prisons. F.Y. 1996 Cost Allocation (By Type of Facility/Supenision) EJI State Prisons D Transitional Centers ~ County CIIJail Subsidies [ill Probation Detention Centers ~ Probation Diversion Centers ~ Field Probation 6.1% 3% 1.8% 77.2% Total Costs: $691,462,382 127 DEPARTMENT OF CORRECTIONS Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Utilities Court Costs County Subsidy Jail Subsidy Central Repair Fund Payments to CSH - Meals Payments to CSH - Utilities Payments to Public Safety-Meal Inmate Release Fund Health Service Purchases Payments to MAG-Certification UGA Contract Minor Construction Fund Total Funds F.Y.1995 Expenditures 482,275,593 63,766,016 2,670,677 3,494,059 5,603,006 8,370,952 7,769,867 6,572,162 6,724,208 227,749 20,553,462 1,547,759 13,457,380 8,401,605 847,026 3,737,634 1,081,003 459,900 1,053,423 61,474,200 60,400 352,357 571,908 701,072,346 Less Federal & Other Funds: Federal Funds Other Funds DOAS Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 2,836,451 15,488,068 450,000 18,774,519 682,297,827 15,649 1,552 F.Y. 1996 Expenditures 510,166,584 59,208,810 2,649,313 3,764,203 5,167,747 8,729,599 9,237,650 7,444,471 7,925,727 216,322 21,209,833 1,207,398 15,651,505 5,579,115 1,114,375 3,949,297 1,129,906 461,160 1,470,693 64,916,040 63,420 366,244 1,687,372 733,316,784 F.Y.1997 Current Budget 504,468,245 58,249,448 2,681,094 2,926,384 4,840,654 8,793,776 9,540,974 6,308,366 7,702,873 20,659,455 900,000 16,786,950 7,493,750 1,127,250 4,059,700 1,376,000 461,160 1,300,000 66,219,554 63,420 366,244 894,000 727,219,297 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 497,989,241 57,992,419 2,648,030 2,926,384 3,955,187 8,047,930 26,425,774 6,308,366 7,527,223 20,698,177 1,200,000 17,386,950 3,113,750 1,033,636 4,059,700 1,576,000 577,160 1,500,000 65,741,842 66,620 366,244 894,000 13,918,284 5,701,060 281,460 813,456 77,223 332,910 2,124,910 55,375 17,989,000 994,585 3,322,200 511,907,525 63,693,479 2,929,490 3,739,840 4,032,410 8,047,930 26,758,684 8,433,276 7,582,598 17,989,000 21,692,762 1,200,000 17,386,950 3,113,750 1,033,636 4,059,700 1,576,000 577,160 1,500,000 69,064,042 66,620 366,244 894,000 732,034,633 45,610,463 777,645,096 3,537,356 16,059,896 450,000 20,047,252 713,269,532 15,759 1,591 1,500,000 18,637,877 450,000 20,587,877 706,631,420 14,836 1,614 1,500,000 15,962,750 450,000 17,912,750 714,121,883 14,268 1,530 45,610,463 342 90 1,500,000 15,962,750 450,000 17,912,750 759,732,346 14,610 1,620 128 DEPARTMENT OF CORRECTIONS Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Utilities Court Costs County Subsidy Jail Subsidy Central Repair Fund Payments to CSH - Meals Payments to CSH - Utilities Payments to Public Safety-Meal Inmate Release Fund Health Service Purchase Payments to MAG-Certification UGA Contract Minor Construction Fund 512,045,180 57,309,100 2,658,594 1,439,840 3,388,626 8,793,776 8,991,774 6,252,190 7,542,873 21,659,455 1,200,000 17,386,950 5,493,750 1,127,250 4,059,700 1,576,000 577,160 1,500,000 66,219,554 66,620 366,244 894,000 Total Funds 730,548,636 Less Federal & Other Funds: Federal Funds Other Funds DOAS Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 1,500,000 18,637,877 450,000 20,587,877 709,960,759 14,963 1,701 Redirection Level Funds To Redirect Additions (18,411,301) (1,808,743) (33,064) 751,714 (85,467) (745,846) (538,328) 17,692,328 (175,650) (961,278) (809,250) (93,614) (477,712) (24,140,253) 18,444,042 (2,675,127) (2,675,127) (21,465,126) (562) (76) 18,444,042 Redirection Totals 493,633,879 56,252,071 2,625,530 1,439,840 3,303,159 8,047,930 26,145,774 6,252,190 7,367,223 20,698,177 1,200,000 17,386,950 4,684,500 1,033,636 4,059,700 1,576,000 577,160 1,500,000 65,741,842 66,620 366,244 894,000 724,852,425 Enhancements 8,925,907 4,739,566 185,933 25,593 203,984 331,176 312,593 560,408 2,176,258 17,461,418 Totals 502,559,786 60,991,637 2,811,463 1,439,840 3,328,752 8,047,930 26,349,758 6,583,366 7,679,816 21,258,585 1,200,000 17,386,950 4,684,500 1,033,636 4,059,700 1,576,000 577,160 1,500,000 67,918,100 66,620 366,244 894,000 742,313,843 1,500,000 15,962,750 450,000 17,912,750 706,939,675 14,401 1,625 17,461,418 228 1,500,000 15,962,750 450,000 17,912,750 724,401,093 14,629 1,625 129 DEPARTMENT OF CORRECTIONS Budget Unit A: Financial Summary Expenditures, Current Budget and Agency Requests Departmen, t of Corrections Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Utilities Court Costs County Subsidy Jail Subsidy Central Repair Fund Payments to CSH - Meals Payments to CSH - Utilities Payments to Public Safety-Meal hunate Release Fund Health Service Purchases Payments to MAG-Certification UGA Contract Minor Construction Fund Total Funds F.Y.1995 Expenditures 450,970,460 62,371,204 2,048,669 3,210,266 5,419,849 5,693,034 7,521,342 6,084,542 5,880,560 227,749 20,553,462 1,547,759 13,457,380 7,751,715 847,026 3,737,634 1,081,003 459,900 1,053,423 61,469,201 60,400 352,357 571,908 662,370,843 Less Federal & Other Funds: Federal Funds Other Funds DOAS fudirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 2,420,357 15,469,798 450,000 18,340,155 644,030,688 14,770 1,407 F.Y.1996 Expenditures 477,221,931 57,266,322 2,085,845 3,394,034 5,019,661 6,046,746 8,262,309 6,813,278 7,003,556 216,322 21,209,833 1,207,398 15,651,505 4,929,135 1,114,375 3,949,297 1,129,906 461,160 1,470,693 64,892,030 63,420 366,244 1,687,372 691,462,372 F.Y.1997 Current Budget 471,081,032 56,633,771 2,139,094 2,848,384 4,649,230 6,008,776 6,797,324 6,017,166 6,772,873 20,659,455 900,000 16,786,950 6,843,750 1,127,250 4,059,700 1,376,000 461,160 1,300,000 66,194,554 63,420 366,244 894,000 683,980,133 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 464,300,682 56,376,742 2,106,030 2,848,384 3,763,763 5,262,930 23,982,124 6,017,166 6,597,223 20,698,177 1,200,000 17,386,950 2,463,750 1,033,636 4,059,700 1,576,000 577,160 1,500,000 65,716,842 66,620 366,244 894,000 13,918,284 5,701,060 281,460 813,456 77,223 332,910 165,588 55,375 17,989,000 994,585 3,322,200 478,218,966 62,077,802 2,387,490 3,661,840 3,840,986 5,262,930 24,315,034 6,182,754 6,652,598 17,989,000 21,692,762 1,200,000 17,386,950 2,463,750 1,033,636 4,059,700 1,576,000 577,160 1,500,000 69,039,042 66,620 366,244 894,000 688,794,123 43,651,141 732,445,264 3,106,464 15,468,073 450,000 19,024,537 672,437,835 14,886 1,444 1,500,000 18,637,877 450,000 20,587,877 663,392,256 14,000 1,459 1,500,000 15,962,750 450,000 17,912,750 670,881,373 13,432 1,375 43,651,141 342 90 1,500,000 15,962,750 450,000 17,912,750 714,532,514 13,774 1,465 130 DEPARTMENT OF CORRECTIONS Budget Unit A: Financial Summary F.Y. 1998 Governor's Recommendations Department ofCorrections Budget ClasseslFund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals, Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Utilities Court Costs County Subsidy Jail Subsidy Central Repair Fund Payments to CSH - Meals Payments to CSH - Utilities Payments to Public Safety-Meal mmate Release Fund Health Service Purchase Payments to MAG-Certification UGA Contract Minor Construction Fund 477,974,348 55,693,423 2,116,594 1,361,840 3,197,202 6,008,776 6,248,124 5,685,990 6,612,873 21,659,455 1,200,000 17,386,950 4,843,750 1,127,250 4,059,700 1,576,000 577,160 1,500,000 66,194,554 66,620 366,244 894,000 Total Funds 686,350,853 Less Federal & Other Funds: Federal Funds Other Funds DOAS Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 1,500,000 18,637,877 450,000 20,587,877 665,762,976 14,125 1,546 Redirection Level Funds To Redirect Additions (18,380,530) (1,808,743) (33,064) 751,714 (85,467) (745,846) (88,328) 17,692,328 (175,650) (961,278) (809,250) (93,614) (477,712) (23,659,482) 18,444,042 (2,675,127) (2,675,127) (20,984,355) (562) (76) 18,444,042 Redirection Totals 459,593,818 54,636,394 2,083,530 1,361,840 3,111,735 5,262;930 23,852,124 5,685,990 6,437,223 20,698,177 1,200,000 17,386,950 4,034,500 1,033,636 4,059,700 1,576,000 577,160 1,500,000 65,716,842 66,620 366,244 894,000 681,135,413 Enhancements 8,925,907 4,739,566 185,933 25,593 203,984 331,176 312,593 560,408 2,176,258 17,461,418 Totals 468,519,725 59,375,960 2,269,463 1,361,840 3,137,328 5,262,930 24,056,108 6,017,166 6,749,816 21,258,585 1,200,000 17,386,950 4,034,500 1,033,636 4,059,700 1,576,000 577,160 1,500,000 67,893,100 66,620 366,244 894,000 698,596,831 1,500,000 15,962,750 450,000 17,912,750 663,222,663 13,563 1,470 17,461,418 228 1,500,000 15,962,750 450,000 17,912,750 680,684,081 13,791 1,470 131 DEPARTMENT OF CORRECTIONS Budget Unit B: Financial Summary Expenditures, Current Budget and Agency Requests Board of Pa,rdons and Paroles Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Jail Subsidy Health Service Purchases Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 31,305,133 1,394,812 622,008 283,793 183,157 2,677,918 248,525 487,620 843,648 649,890 4,999 38,701,503 F.Y.1996 Expenditures 32,944,653 1,942,488 563,468 370,169 148,086 2,682,853 975,341 631,193 922,171 649,980 24,010 41,854,412 F.Y. 1997 Current Budget 33,387,213 1,615,677 542,000 78,000 191,424 2,785,000 2,743,650 291,200 930,000 650,000 25,000 43,239,164 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 33,688,559 1,615,677 542,000 78,000 191,424 2,785,000 2,443,650 291,200 930,000 650,000 25,000 1,959,322 33,688,559 1,615,677 542,000 78,000 191,424 2,785,000 2,443,650 2,250,522 930,000 650,000 25,000 43,240,510 1,959,322 45,199,832 416,094 18,270 434,364 38,267,139 879 145 430,892 591,823 1,022,715 40,831,697 873 147 43,239,164 836 155 43,240,510 836 155 1,959,322 45,199,832 836 155 132 DEPARTMENT OF CORRECTIONS Budget Unit B: Financial Summary F.Y. 1998 Governor's Recommendations Board of Pardons and Paroles Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Jail Subsidy Health Service Purchase Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 34,070,832 1,615,677 542,000 78,000 191,424 2,785,000 2,743,650 566,200 930,000 650,000 25,000 44,197,783 44,197,783 838 155 Redirection Level Funds To Redirect Additions (30,771) (450,000) (480,771) (480,771) Redirection Totals 34,040,061 1,615,677 542,000 78,000 191,424 2,785,000 2,293,650 566,200 930,000 650,000 25,000 43,717,012 Enhancements 43,717,012 838 155 Totals 34,040,061 1,615,677 542,000 78,000 191,424 2,785,000 2,293,650 566,200 930,000 650,000 25,000 43,717,012 43,717,012 838 155 133 DEPARTMENT OF CORRECTIONS F.Y. 1998 Budget Summary BUDGET UNIT A - DEPARTMENT OF CORRECTIONS ADJUSTMENTS TO CURRENT BUDGET GOVERNOR'S RECOMMENDATIONS F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Annualize the cost of the F.Y. 1997 payraise for correctional officers. 3. Adjust for non-recurring expenditures: --Start-up costs for Autry, Coastal, Eastman and Lee State Prisons. --Basics program contract funds. --Motor vehicle replacements. 4. Reflect a decrease in agency self-insurance rates. 5. Reflect a decrease in the merit system position assessment due to the policy change that assessmentsin the future will be applied to all agency authorized positions for a base level of statewide services. ADWSTED BASE 663,392,256 4,826,088 3,029,207 (3,892,596) (130,000) (500,000) (377,758) (584,221) 665,762,976 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Privatize five transitional centers and seventeen diversion centers. This redirection eliminates 562 positions. 2. Reduce jail subsidy funding based on maintaining a lower jail backlog. 3. Annualize the transfer of eight positions to the Board of Pardons and Paroles and the transfer of two positions and computer charges to the Department of Children and Youth Services. Total Funds to Redirect (19,658,142) (809,250) (516,963) (20,984,355) ADDITIONS 1. Provide contract funds for the operation of the privatized transition and diversion centers. 2. Fund care and custody costs for 1,830 beds added to existing prison facilities. 3. Fund a 5% conditional pay increase for correctional officers wl).o work in high mission prisons (security levels V and VI), to be effective October 1, 1997. 4. Fund a 5% special pay provision for food service and maintenance workers who directly supervise inmates, to be effective October 1, 1997. 17,692,328 751,714 See Pay Package See Pay Package Total Additions TOTAL REDIRECTION LEVEL 18,444,042 663,222,663 134 DEPARTMENT OF CORRECTIONS -- F.Y. 1998 Budget Summary ENHANCEMENT FUNDS ENHANCEMENTS 1. Annualize operational costs of new fast track beds partially funded in F.Y. 1997. This includes Autry State Prison (384 beds), Coastal State Prison (192 beds), Lee State Prison (192 beds) and Hancock State Prison (192 beds). Recommendation provides eight months operating cost at Eastman Youth Development Facility (300 beds). 2. Provide start-up funding and 114 positions for 384 beds at Pulaski State Prison and start-up funding and 114 positions for 384 beds at Augusta Correctional Medical Institution. This is in addition to $2,137,398 in start-up equipment and vehicle costs recommended in the Fiscal Year 1997 amended budget. 3. Provide four months operating costs for 384 beds at ACMI and ten months operating costs for 384 beds at Pulaski State Prison. 4. Funds medical and food costs associated with 1,830 beds added to existing prison facilities. 5. Provides operating costs for the nine new GSAMS sites to provide inmates greater access to educational services. 7,893,805 2,091,490 5,581,268 1,776,055 118,800 CAPITAL OUTLAY 1. Minor construction projects statewide ($2,500,000). 2. Roof repairs at various state prisons statewide ($6,670,825 in existing bonds). 3. Environmental projects including refrigerant conversion ($510,000), water tower repairs at Georgia State Prison and Lee State Prison ($492,000), and upgrade grease traps at various prisons statewide ($724,000). 4. Security related projects including electronic perimeter detection ($1,794,000), entry buildings at four prisons ($84,000), and security hardening at Lee State Prison (56,400). 5. Food and farm projects including dairy expansion at Rogers State Prison ($315,000) and construction of a meatplant storage/maintenance building at the Food Distribution Unit in Milledgeville ($167,000). Bonds Existing Bonds Bonds Bonds Bonds TOTAL ENHANCEMENT FUNDS 17,461,418 TOTAL STATE FUNDS 680,684,081 135 DEPARTMENT OF CORRECTIONS F.Y. 1998 Budget Summary BUDGET UNIT B - STATE BOARD OF PARDONS AND PAROLES ADJUSTMENTS TO CURRENT BUDGET GOVERNOR'S RECOMMENDATIONS F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Annualize the cost of the position transfers from the Department of Corrections. 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 5. Annualize the cost of the position transfer from the Board of Pardons and Paroles to the Office of School Readiness ($55,394) and provide for computer equipment ($275,000). ADmSTED BASE 43,239,164 301,346 480,771 (12,675) (30,429) 219,606 44,197,783 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce funding for the electronic monitoring contract due to a favorable contract bid. 2. Reduce personal services funding. (450,000) (30,771) Total Funds to Redirect TOTAL REDIRECTION LEVEL TOTAL STATE FUNDS (480,771) 43,717,012 43,717,012 136 DEPARTMENT OF CORRECTIONS Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS 1. Executive Operations TOTAL 14,939,592 STATE 14,582,592 TOTAL 14,712,276 STATE 14,355,276 2. Administration 81,041,687 77,732,612 82,637,401 79,328,326 3. Human Resources 12,470,517 12,470,517 12,311,622 12,311,622 4. Field Probation 59,672,669 59,192,669 59,672,669 59,192,669 5. Facilities 515,855,668 499,413,866 529,262,863 515,496,188 6. Board of Pardons and Paroles 43,239,164 43,239,164 43,442,012 43,717,012 TOTAL APPROPRIATIONS 727,219,297 706,631,420 742,038,843 724,401,093 RECOMMENDED APPROPRIATION: The Department of Corrections is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $724,401,093. 137 DEPARTMENT OF CORRECTIONS Roles and Responsibilities The Georgia Department of Corrections (GDC) administers the prison and probation sentences of offenders adjudicated by Georgia state courts. More than 34,800 .ofthese offenders are serving'prison sentences. More than 134,000 offenders are on probation, nearly 3,000 ofwhom are in residential programs. The mission ofthe GDC is to protect the public and staffby managing offenders either in a safe and secure environment or through effective community supervision according to their needs and risks. In collaboration with the community and other agencies, GDC provides programs which offer offenders the opportunity to become responsible, productive, law abiding citizens. GDC has adopted six management directions to guide operations: Increase efficiency, effectiveness, and accountability. Ensure that prison is an undesirable experience. Have well-run, secure facilities. Supervise and monitor compliance with probation conditions. Offenders will work. Have effective programs and training. DEPARTMENT OPERATIONS Incarceration offers a highly structured, secure environment which removes from the community those offenders who pose a high risk. GDC provides legally mandated services in the areas of physical and mental health,. counseling, education, vocational training, chaplaincy and recreation. GDC requires offenders in its facilities to work to support the system and the community. Inmates and probationers work on prison farms; in food preparation, laundry, and construction; in facility and landscape maintenance; and doing factory work in Correctional Industries' manufacturing plants. The types of GDC institutions include: State Prisons (38). These institutions are typically reserved for felony offenders with more than one year of incarceration to serve. County Prisons (25). The state pays a subsidy to county institutions to house and supervise state inmates. Inmates assigned to the county prisons typically work on roadway or construction projects for the county in which they are housed. Inmate Boot Camps, Probation Boot Camps, Probation Detention Centers (21). These three components of Georgia's Comprehensive Correctional Boot Camp Program offer a shortterm, intensive incarceration period. The boot camp program enforces strict discipline and military protocol. Transitional Centers (5). These community-based centers are designed to allow offenders nearing the end of their prison term to prepare for life in the free-world. GDC requires offenders to work in jobs in the local community, pay room and board to the center and support their families. Probation Diversion Centers (17). Judges may sentence offenders to diversion centers as an alternative to prison. Like transitional center residents, offenders in the diversion centers work and pay room and board, restitution, fmes, and family support. Probation is designed to enforce judicial sentences in the community. The Statewide Probation Act of 1956 laid the legal foundation for the Probation Division. The law provides for standardized supervision by sworn peace officers of those offenders sentenced to probation, either directly from court on a straight probation sentence, or after completing a specified term of imprisonment on a split sentence. The mission of GDC's Probation Division is to serve the courts and to collaborate with other criminal justice agencies in protecting the public by effectively enforcing sentences of probation. Probationers are required to be employed and to pay restitution, fees, fines, and court costs. Many probationers are also required to perform community service, unpaid labor for the local community. Probationers are supervised with increasing levels of intensity in accordance with the risk they pose to the community. Requirements at these varied supervision levels may include adherence to a curfew, wearing an electronic device to monitor movements, drug testing, home and job visits by the probationer officer. ATTACHED AGENCIES The State Board of Pardons and Paroles is empowered to grant, deny, condition and revoke executive clemency. The board reviews the sentences of all inmates to determine what degree of executive clemency may be warranted, recommends the clemency action, and supervises the offenders who have been paroled or conditionally released from prison until the completion oftheir sentences. The Georgia Correctional Industries Administration is a public corporation, wholly owned by the state. GCIA utilizes inmate labor to manufacture products and provide services to government agencies. This work also allows the inmates to receive training in these areas. AUTHORITY Titles 9, 42 and 77 of the Official Code of Georgia Annotated. 138 DEPARTMENT OF CORRECTIONS Strategies and Services JAIL BACKLOG REDUCTIONIBEDSPACE MANAGEMENT At the beginning of F.Y. 1996, Georgia's jail backlog (people sentenced to state prison, awaiting pickup from jails) stood at 2,885. Six months later, the jail backlog had declined to 2,183. By the end of F.Y. 1996, the backlog was at one of its lowest points in five years -- 788 -- a 72 percent decrease over all ofF.Y. 1996. By mid-August 1996, the backlog had dropped to 309, its lowest point in twelve years. The backlog of female offenders awaiting pickup reached zero for the first time in Georgia's correctional history. Jail backlog grows and diminishes as commitments to prison (sentences and revocations) and pickups by GDC ebb and flow. Two important factors contributed to this year's historic low level: Commitments to prison during F. Y. 1996 were at their lowest levels in three years. Releases (clemency and discharges) were stable. These two elements gave the department the window of opportunity it needed to focus specifically on the jail backlog. In January 1996, the department embarked on a three-phase action to lower the backlog. In the first phase: GDC filled vacant county correctional institution beds from the existing inmate population. Widening the criteria concerning sentence length allowed additional non-violent offenders with longer sentences to be transferred. GDC approved limited overtime at several prisons to expedite filling beds held vacant due to staffing issues. GDC increased the number of women's diagnostic beds at Metro State Prison by 50 percent, from 120 to 180, immediately reducing the female backlog by 18 percent. At the beginning of the year the number of vacant prison beds available for females nearly equaled the number backlogged in county jails. In the second phase, the department reviewed and reassessed the use of space at each institution. GDC took the following actions: Double-bunked the few remaining single-bunk units. Moved additional beds into group areas previously used for daytime programs that had been discontinued. This added more than 200 beds. Double-bunked some isolation/segregation space at some facilities in order to add more general population beds. Established mental health caseloads at additional prison sites. This allowed quicker transfer of low-level mental health inmates to permanent assignments and opened up diagnostic beds for inmates from county jails. The Department also reviewed the allocation of bedspace to specific programs, taking several more bedspace-related actions: Reallocated West Central Detention Center as a state prison. This added 166 state prison beds to capacity from a consistently under utilized area. (192 new detention center beds are scheduled to come on-line in F. Y. 1998.) Forged an agreement with the Parole Board to phase out the programmatic use of 400 beds at Hancock and Hays as Parole Revocation units and switch them to general population prison beds. Identified 100 inmates as probation technical violators and secured their release via Parole Board commutations to time served. These offenders are, by law (HB. 1607) limited to being sentenced to alternative programs such as detention and diversion centers. RESTRUCTURING PROBATION SUPERVISION Georgia's active probation population grew at a relatively stable rate during the latter part of the 80's, and experienced two years of significant growth between 1990-1992. The population then dropped significantly due to legislation removing low-risk misdemeanants from state supervision. One consequence of this legislation was the "toughening" of the overall probation population. The active probation population that was 29 percent felon ten years ago is now more than 74 percent felon. Jail Backlog of Inmates Awaiting Entry to Prison 5,000 4,326 4,000 ----- 3,744 ~3,052 3,071 3,000 2,000 1,000 309 0-+-------,-------,-------.------,--------, Apr 89. Apr 90 Mar 92 Jun95 Aug 96 139 DEPARTMENT OF CORRECTIONS -- Strategies and Services mandated to maximum supervision by Active Probation Population: 1985-1995 95.ii.II.II.Ii2~_1I1I1 their conviction offense must be placed in the high supervision level. All misdemeanants are automatically ?4 1 111 93 assigned to standard supervision level. Effective March 1, 1996, the three- level system increased the presence of the officer at the offender's home, place 92 91-. 90 89 88 87-.11111 of employment, etc., at any time, including non-traditional hours such as nights and weekends. Also, to further protect the public and for their own safety, probation officers will now be armed. The department's Intensive Supervision Program continues to operate as a court-ordered sentencing 85 --lllllllliiilllllllllIIIII: option. This highly structured surveillance-oriented program involves curfews, drug testing and strict court standards. The agency also continues to investigate new monitoring technologies The type of felons being supervised officers' time in the field/community, as which could enhance the effectiveness of has also changed significantly. During well as extend office hours to make staff supervision. the past decade the number of incoming more accessible. probationers convicted of violent crimes The agency established a new LINKS WITH OTHER AGENCIES more than doubled, and the number of "maximum" supervision level and Collaboration with Parole Board probation starts for sex crimes increased increased contact standards for the More than 60 percent of offenders by 50 percent. highest risk offenders. Offenders admitted to prison report some form of As portrayed in the following pie convicted of one of 21 sex/violent substance abuse problems. Offenders charts: offenses are automatically placed on with substance abuse problems return to The type of violent crime for maximum supervision. These crimes prison almost double the rate of those which probationers were sentenced has include: murder, rape, child molestation, without substance abuse problems. remained the same during the past 10 aggravated assault and armed robbery. More than halfofthe inmates admitted to years. All boot camp releasees who are not prison during the past five years read at Probationers coming onto caseloads for sex crimes have become more violent: 77 percent of all probationers sentenced for a sex crime in Most Common Violent Crimes: 1995 had been convicted of rape or child molestation compared with 47 percent Probation Starts, 1985 and 1995 10 years earlier. By the end of F.Y. 1996, 15 percent of the active probation population were violent or sex offenders. As part of the F. Y. 1997 Budget Redirection process, GDC's Probation Division lost 101 positions. With average caseloads over 200 and expected to rise, the division established new supervision priorities in an effort to focus the majority of staff and resources 1985 1995 on probationers who presented the highest risk to the public. These new priorities will maximize probation [ill Battery Robbery Assault Other 140 DEPARTMENT OF CORRECTIONS -- Strategies and Services Most Common Sex Crimes: Probation Starts, 1985 and 1995 1985 El iI Child Molestation SodomylProstitution 1995 II Other ~ Rape Crimes the seventh grade level or below. These and other imnate deficiencies affect their ability to fimction in the prison system, and more importantly their ability to maintain law-abiding behavior once released. GDC has always tried to provide resources to facilitate, teach or supervise inmate programs. The Legislature, the Federal Courts and the Georgia Board of Pardons and Paroles have also mandated the availability or completion of certain programs. During F.Y. 1996, GDC presented to the Parole Board a set of programs that would be available to inmates in all facilities. The Board agreed to this core curriculum, which focuses on the basic deficiency areas common to most inmates. GDC and the Parole Board also agreed upon a set of programs that will be offered to identified high-risk groups such as substance abusers and sex offenders. The Core Curriculum tracks are intended to assist with the management of inmates while in the institution, and focus on reducing their risk of reoffending. Each of these tracks will eventually be available at all facilities. Collaboration with DCYS At the end of F.Y. 1996, GDC transferred a 1,014-bed prison facility, complete with 285 positions, the staff in those filled positions, and equipment to the Department of Children and Youth Services (DCYS). This transfer provided some quick relief for the overcrowding problems facing DCYS. The Wrightsville Youth Development Center, formerly known as Johnson State Prison, was completed in 1992 and opened in 1993. The facility housing areas consist of five units containing 96 single cells, and one unit with four 50-bed open dormitories. By the endofF.Y. 1997, GDC will transfer the Pelham Pre-Transitional unit to DCYS. This unit, located just outside Autry State Prison contains dormitory style housing and has a capacity of 200. GDC continues to operate specialized juvenile programs at the Eastman Youth Development Facility. This facility, houses "unruly" offenders transferred from the regional youth development centers (RYDC). Eastman Youth Development Facility currently has a capacity of 118 with 300 new beds to be available in F. Y. 1998. The Governor recommends the transfer of Eastman YDF to the Department of Children and Youth Services to be effective July 1, 1997. In addition, the department continues, by contract, to operate a 100bed facility for youthful offenders in Davisboro. This facility maintains the same high level of structure and discipline as the inmate and probation boot camps. OLYMPIC PREPARATION AND SECURITY FORCE PARTICIPATION During the Centennial Olympic Games, more than 1,600 GDC staff were devoted full- or part-time to Olympic .Security. Even before their Olympic assignments began, these staff left their regular duties to attend training and otherwise prepare for their assignments. Many were deployed, full time, by the middle of June, a full month before the Olympics actually began. Some staffhad been involved full or part-time long before the Olympics actually took place: GDC staff were working on manpower studies for the Olympic security force as early as 1993. GDC staffrepresented Georgia in the preparation for the Torch Relay, planning the torch route through 42 states. Agency staff collaborated with federal, state and local law enforcement agencies along a l5,000-mile path. GDC staff later provided security and logistics assistance along the torch route. GDC assigned nearly 200 probation officers to special intelligence teams before and during the Olympics. These officers were part of the effort to identify potential trouble-makers before they disrupted the Games. GDC used offender labor to oversee tree planting and litter pick-up in Olympic area and along Olympic routes. GDC staffand offenders prepared housing areas for the law enforcement staff. They cleaned the area, set up trailers, built security fences and built rest areas. GDC provided offender labor to build housing and stable areas for the horses used by the U.S. Park Police. INFORMATION SYSTEM INITIATIVES During F. Y. 1996, the department focused Management Information Systems (MIS) resources on building the 141 DEPARTMENT OF CORRECTIONS -- Strategies and Services foundation for an integrated automated system for managing offender data and offender records. This effort had two major thrusts: Identify hardware and software standar~s. Automate GDC's offender records system. Hardware/Software Standards GDC's Standard Technology Environment Project (STEP) is designed to architect a standard computing environment which meets the current and future needs of the department. STEP specifies the hardware and software components and the operating system to be used for desktop and network computers throughout the agency. Providing standard components and standard configurations of those components allows GDC to: More clearly understand, plan for and support the needs of the agency. Fully integrate the hardware and software available in today's market in a supportable environment. Provide an environment where staff can move from site to site without retraining. Provide a foundation for data sharing. The Local Area Networks (I;AN) will enable designated areas of a facility to access and share management information, offender demographics, daily schedules, sick call, court production, etC. A Wide Area Network (WAN) will allow this same information to be shared between facilities when necessary. Automation of Offender Records System The second focus of activity is the conversion of the offender records system to a paperless system. The Offender Records Management System (ORMS), first proposed in 1994, will significantly enhance the department's ability to deal with volumes of paper work and documentation connected with the ever-increasing inmate population. The current system presents numerous physical and managerial problems, including escalating requirements for expensive floor space, potential fIre hazards, misplaced and inaccessible information due to manual processing and storage. A paper system also does not allow more than one person to access a fIle at anyone time. In a paperless office, paper documents are electronically processed (scanned) and stored for later viewing, printing or archiving. Data on offenders will be held in electronic folders containing "imaged" pictures of paper documents and information entered into computer databases. An "imaged" document may be a photograph, drawing, sketch, x-ray or a typed or handwritten document. A paperless office will provide many intangible benefIts: Eliminate incidents of lost fIles. Enable multi-user access to a single fIle. Replace manual checklists and schedules with a work-flow system that automatically integrates and routes documents to the appropriate work station. Consolidate all offender paper files into one electronic fIle that can be updated and shared between central office and facilities across the state. Reduce costs by an estimated $500,000 a year for the next five years: savings are in personnel services, space expenses and other supply and support costs. BytheendofF.Y. 1997, GDC will: Upgrade networks and computer equipment in all prisons. Image fIles of offenders being released. Create initial imaging fIles for new admissions. Introduce the work flow technology, scheduling, etc. Implement the release and agreements component, integrating OTIS transactions. Implement classification work flow, inmate transfers, and diagnostic packets processing. RESULTS-BASED BUDGETING In preparation for Results-Based Budgeting, GDC has begun to develop performance measures from the local unit to the division and agency level. Staff will track this information through an integrated database of budget, staff and performance measures. Beginning in F.Y. 1998, budgeting resources will be connected with verifIable performance associated with these locally developed measures. This process will help the agency to identify and capture cost savings, increase accountability of managers and increase the effectiveness of operations. PRWATIZATION GDC, like other state agencies, has been working with the Governor's Privatization Council to identify opportunities for privatizing various operations and service delivery entities. The department has developed a Request for Proposals (RFP) for construction and operation of private prisons in Coffee and Wheeler counties. Contracts will be awarded in early calendar year 1997 and will be Georgia's fIrst venture into privatized prisons at the state level. A pilot project to privatize inmate stores began during September 1996. A contractor took over the stores at two prisons and has committed to demonstrating improved, more efficient operations within a three to four month period. If the pilot is successful, GDC plans to move forward with the privatization of inmate stores at all prisons by the beginning ofF.Y. 1998. Other areas under consideration for privatization include: Substance abuse treatment programs (some of which are already under contract). Transitional centers. Diversion centers. Facility maintenance. Laundry services. ELECTRONIC MONITORING The Parole Board formally implemented the electronic monitoring (EM) pilot program on November 1, 1991. Following a successful eight site pilot, the program was expanded through April 1993 to include an additional eight parole districts and an on-going 142 DEPARTMENT OF CORRECTIONS -- Strategies and Services evaluation was conducted. The research and evaluation data showed the electronic monitoring program, accompanied by skillful supervision, provided the Board with an effective tool for responding to parolee violations short of revocation and return to prison. Following the eighteen month pilot, the EM program was expanded statewide and has continued to grow. In fiscal year 1996 the program grew to the use of 926 electronic monitoring units. Electronic monitoring enables the Board to implement an intrusive sanction that allows for the surveillance of parolees up to twenty-four hours per day. This program can represent the Parole Board's final sanction short of revocation. The program is targeted for three groups of parolees; those who present a high risk to the community, those who have a high level of needs, and/or parolees that continuously and willfully violate the conditions of parole. Electronic monitoring brings added structure and stability to the lives of many parolees. This added structure can provide the catalyst for positive change and ensure compliance with the conditions of parole, thereby encouraging law-abiding behavior. During fiscal year 1997 the number of electronic monitoring units will increase to 1400 units. These units will be utilized to expand the types of parolee placed under the structure of EM. The electronic monitoring program will be used in conjunction with the Specialized Parole Supervision (SPS), to provide a balanced, intensive approach to dealing with high risk/need parolees. This program is handled by staff specially trained in the use, operation and management of electronic monitoring. The Board's plan for electronic monitoring has expanded to include front-end application by paroling inmates directly to EM. There are currently in excess of 1,000 prison inmates serving their first prison sentence for non-violent crimes. Paroling these offenders directly to electronic monitoring will free hard prison beds while providing a structured, intensive surveillance parole scenario. Additionally, this application of electronic monitoring provides transition from the highly structured prison environment to the community in a gradual, less dramatic and hopefully less problematic way. The net result to the state through these applications is savings in prison bed construction and operating costs without sacrificing community safety. SUBSTANCE ABUSE COUNSELING In 1995 the Parole Board made the decision to redirect funding for the substance abuse counseling program. An arrangement was made with the Department of Human Resources Division of Mental Health, Mental Retardation, and Substance Abuse to contract for local treatment services. A reduction-in-force was effectuated in June 1996, eliminating 43 senior substance abuse counselor and two clinical supervisor positions. Treatment professionals in the local public health systems provide substance abuse assessment and treatment services for offenders under parole supervision beginning September 1, 1996. The program continues to be administered by the substance abuse counseling coordinator and two personnel monitor the contracted programs and parolees progress in substance abuse and special needs therapeutic programs at Homerville and Hays State Prisons. The program at Hays State Prison is scheduled to be moved to Whitworth Detention Center at the end of 1996. The contracts with the local treatment providers are essential to maximizing the chances of recovery for the 900 plus offenders released to parole each month. The aftercare provided by this network is critical to the success of all prison-based treatment programs. Participation in these services, combined with parole officer supervision and alcohol and other drug testing, is expected to significantly enhance offenders' prosocial living skills while reducing the recidivism rate. SPECIALIZATION/CASE MANAGEMENT In February, 1994, the Board 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. In October 1994, formal case planning began. Case planning completes the statewide implementation of the new supervision case management model. Efforts continue to refine the process. This system of supervision enables the Board to allocate its field staff in a more rational fashion and to ensure that those parolees who represent a clear risk to public safety receive the highest quality and most intensive amount of supervision. Specialization will be carried further through the creation of program specialists. Parole officers functioning as program specialists will service district offices by delivering cognitive skills training to parolees, parolee orientation programs, developing volunteer programming through collaboration with community based organizations. These programmatic initiatives, as well as classification/case management and specialization, continue to form the core of the Board's comprehensive strategy for reducing parole recidivism and enhancing the effectiveness of supervision, while preserving community safety. 143 GEORGIA DEPARTMENT OF CORRECTIONS Results-Based Budgeting Program Summaries BUDGET UNIT A: DEPARTMENT OF CORRECTIONS PROBATION MANAGEMENT/SECURITY PURPOSE: Serve the courts and to collaborate with other criminal justice agencies in protecting the public by effectively enforcing sentences of probation. GOALS Ensure that probationers work. Manage probationers based on their risk to public safety. Implement data-driven decision processes. Enforce conditions of probation set by the court. INMATE AND DETAINEE MANAGEMENTISECURITY PURPOSE: Protect the public by operating well run, secure and clean correctional facilities that provide a highly structured and disciplined environment which offers appropriate work and programs for all offenders. GOALS Maintain safety of public by incarcerating offenders for times specified by courts. Provide a safe, secure and orderly environment for staff and inmates. Ensure that all inmates are assigned to work details. Provide programs consistent with the needs of offenders. FOOD SERVICE PURPOSE: Provide nutritionally sound meals to inmates/detainees at the lowest possible cost to taxpayers. GOALS Provide nutritionally sound diets to inmates/detainees in state facilities. Provide meals to inmates / detainees at the lowest possible cost to Georgia taxpayers. Provide work details for prison population. Implement a preventive maintenance program on all food service equipment. Provide kitchen ready meals to the facilities. 144 GEORGIA DEPARTMENT OF CORRECTIONS -- Results-Based Budgeting FARM OPERATIONS PURPOSE: Use inmates/detainees in production offood products at the lowest possible cost to the taxpayers. GOALS Produce farm commodities at or below comparative wholesale prices giving consideration to market trend analysis which would determine the efficiency and viability of each respective farm enterprise. Provide work for inmates/detainees in state facilities. Provide kitchen ready meats to the facilities. PHYSICAL PLANT OPERATIONSIDEVELOPMENT PURPOSE: Provide safe, secure, economical facilities that support the department's mission of protecting the public and departmental personnel by furnishing and supporting the maintenance of the essential physical infrastructure mandated by the mission. This program provides resources for facility planning, construction, maintenance, fire safety, environmental compliance and personal security. GOALS Provide sufficient facilities at minimal cost to safely house all inmates assigned to the department. No escapes through facility or security infrastructure weakness. No system down time of severity or length to cause significant disruptions to operations or require movement of inmates. In dealing with fire safety, provide a fully safe environment for staff and offender. No fmes from Environmental Protection Division or the Environmental Protection Agency caused by environmental compliance infractions. PHYSICAL HEALTH SERVICES PURPOSE: Ensure that a constitutional level of health care is provided to the Georgia Department of Corrections' prisoner population in the most cost-efficient manner. GOALS Provide the required constitutional level of health care to prison population. Insure current health services contract is delivered as required by the invitation to bid document. Continue to search for methods of decreasing health care costs within the Georgia Department of Corrections. MENTAL HEALTH SERVICES PURPOSE: Ensure that a constitutional level of mental health care is provided to the Georgia Department of Corrections' prisoner populations in the most efficient manner possible. GOALS Provide the required constitutional level of mental health care to the Corrections' population with a need. Continue to search for methods of decreasing mental health care costs within GDC. 145 GEORGIA DEPARTMENT OF CORRECTIONS -- Results-Based Budgeting EDUCATION PURPOSE: Prepare prisoners to reenter society as productive citizens by providing basic academic and vocational educational training in a secure setting. GOALS Develop a stronger work ethic in prisoners. Facilitate effective and efficient coordination of institutional service by interacting with other work units and security. Develop entry level job skills ofprisoners by providing occupational training and live work experience. Increase the rate of GED graduates by providing GED preparatory instruction. Increase the literacy level of prisoners by providing mandated literacy instruction. CASE SERVICESICOUNSELING PURPOSE: Develop positive offender behavior/adjustment and assist operations with offender management. GOALS Increase offender knowledge offacility expectations/rules. Insure appropriate placement by accurately identifying offender needs. Accurately track the progress or lack thereof toward meeting offenders assessed needs. Increase the opportunities for positive behavior by providing comprehensive group counseling. Increase the efficiency of the facility operation by providing case management services. RECREATION PURPOSE: The purpose of recreation (wellness education) is to provide a structured, well supervised wellness program that enhances the efficiency, effectiveness and security ofall GDC facilities. GOALS Deliver mandated wellness core curriculum to improve the mental, physical and nutritional health and security of all GDC facilities. Provide organized programs that develop positive life skills. Organize mandated wellness/walks. Supervise recreation work details to increase the efficiency and effectiveness of the wellness programs. 146 DEPARTMENT OF CORRECTIONS -- Results-Based Budgeting CHAPLAINCY PURPOSE: Assist in the protection of society by providing for the spiritual well being and protection of First Amendment rights of prisoners and correctional staff through clinical, pastoral, and practical programs which motivate prisoners toward correct moral and responsible behavior. GOALS Create visible and accessible pastoral presence to all prisoners and stafffor effective ministry. Create and nurture a spiritual component within the prison which will serve to remind and lift the prisoners and staff to an appropriate standard and moral conduct and behavior. Involve and educate the community regarding the prison system. Assist prisoners in internalizing discipline and self-control and maintaining correct moral and responsible behavior while incarcerated and upon release. LffiRARY SERVICES PURPOSE: Support effective facility operations, to provide access to legal information and to maximize the constructive use of prisoners' unscheduled time. GOALS . Improve performance of offenders in program areas. Insure compliance with court mandates. Increase prisoners' usage of library services during unscheduled time. DIAGNOSTICS AND CLASSIFICATION PURPOSE: Manage the state prison population by insuring the prompt receipt of state sentenced prisoners. Assign all prisoners in compliance with state policy and sound judgement to meet departmental work mission, required program goals, and to protect the safety of the community, prisoners, and institutional staff GOALS Assume custody from the county jails of state-sentenced inmates as soon as space permits and efficiently process prisoners through diagnostics centers. Assign prisoners in compliance with policy to satisfy work mission, community safety and effective, safe fimctioning of the facility. Assign prisoners as needed to comply with state mandated programming, parole-referred programming, and departmental self-help programs. 147 GEORGIA DEPARTMENT OF CORRECTIONS -- Results-Based Budgeting TRAINING AND STAFF DEVELOPMENT PURPOSE: Provide relevant and legally defensible training in the most effective, effective manner possible to comply with statutory, court-ordered and agency mandates. GOALS Provide job relevant, legally defensible training to employees who are basic sworn peace officers, work in specialized units, and/or are agency managers/supervisors. Provide job relevant, legally defensible inservice training in accordance with standard operating procedures to all GDC staff, contract staff, and county employees. Train and certify GDC staff as agency trainers. Insure efficient and effective documentation of training services and delivery of training. DEPARTMENT OF TRANSPORTATION WORK DETAILS PURPOSE: Assist the State Department of Transportation in the maintenance of state roads and roadside parks in addition to providing the prisoner population the opportunity to learn self-discipline and gain valuable job skills and positive work habits while incarcerated. GOALS Maintain safety of public while providing prisoners with work opportunities. Keep all state roads and roadside parks in affected counties clear of trash. Provide prisoner population with the opportunity to learn self-discipline through structured details and to gain valuable job skills through utilization of on-the-job-training programs. BUDGET UNIT B: STATE BOARD OF PARDONS AND PAROLES PAROLE SUPERVISION PURPOSE: Investigate offenders' criminal history in order to select those offenders who will be paroled and those who will not; and to monitor and supervise the ones paroled to assure compliance with the conditions of parole and transition them back into the community. GOALS Maintain the safety of the general public through a careful selection process and appropriate post-release supervision. Reserve prison beds for high risk offenders. Produce a parolee that is law-abiding, employable and self-sufficient. Identify and return to prison those offenders who demonstrate they will not abide by their release conditions. 148 DEPARTMENT OF CORRECTIONS -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE AGENCY PROGRAMS Budget Unit A: Department of Corrections 1. Probation Management/Security 2. Inmate and Detainee Management/ Security 68,731,901 345,960,418 67,876,338 339,300,963 68,560,782 370,012,538 67,705,270 366,028,160 3. Food Service 4. Farm Operations 5. Physical Plant Operations/Development 6. Physical Health Services 42,201,457 8,667,809 57,027,090 76,763,324 40,403,409 8,606,788 56,518,689 74,505,342 39,295,243 8,660,502 55,964,974 76,136,318 37,497,195 8,599,481 55,456,573 73,878,336 7. Mental Health Services 8. Education 9. Case Services/Counseling 10. Recreation 11. Chaplaincy 12. Library Services 13. Diagnostics and Classification 14. Training and Staff Development 15. Department of Transportation Work Details Sub-Total 13,286,484 16,641,859 33,589,289 6,283,076 2,114,883 2,083,709 3,490,126 5,664,401 1,474,308 683,980,134 6,747,506 16,376,464 33,260,314 6,184,894 2,114,883 2,060,497 3,490,126 5,664,401 281,642 663,392,256 13,248,660 16,716,401 29,123,609 6,264,395 2,037,702 2,079,555 3,481,981 5,545,899 1,468,272 698,596,831 6,709,682 16,451,006 28,794,634 6,166,213 2,037,702 2,056,343 3,481,981 5,545,899 275,606 680,684,081 Budget Unit B: State Board of Pardons and Paroles 1. Parole Supervision 43,239,164 43,239,164 43,717,012 43,717,012 TOTAL APPROPRIATIONS 727,219,298 706,631,420 742,313,843 724,401,093 149 \SO DEPARTMENT OF DEFENSE Total Budgeted Positions as of October 1, 1996 -- 284 Office of the Adjutant General State Selective Service State Defense Force 5 Public Affairs Office* Administrative 1 - - - - - - - - - + - - - - - - - - - - 1 Management Office* 2 13 Prepares informational 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 173 I Georgia Air National Guard 91 Administers Georgia's Army and Air National Guard as prescribed by the federal govemment...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 69 armories and five 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. 151 DEPARTMENT OF DEFENSE Financial Summary Expenditures, Current Budget and Agency Requests , Bud.e;et Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 12,967,108 9,827,631 82,669 134,813 64,466 755,558 76,923 1,129,604 25,038,772 F.Y.1996 Expenditures 9,740,963 12,583,209 62,790 15,024 77,879 85,349 715,064 119,542 834,851 24,234,671 F.Y.1997 Current Bud.e;et 9,090,415 6,198,797 29,375 28,840 24,400 458,000 11,125 40,825 15,881,777 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 10,307,732 6,446,797 29,375 10,307,732 6,446,797 29,375 28,840 24,400 458,000 11,125 40,825 17,347,094 28,840 24,400 458,000 11,125 40,825 17,347,094 19,404,037 550,935 143,709 20,098,681 4,940,091 270 14 18,927,354 640,710 19,568,064 4,666,607 279 14 11,474,416 176,510 11,650,926 4,230,851 284 13 12,857,551 181,535 13,039,086 4,308,008 284 13 12,857,551 181,535 13,039,086 4,308,008 284 13 152 Bud~et ClasseslFund Sources Personal 'Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles DEPARTMENT OF DEFENSE Financial Summary F.Y.1998 Governor's Recommendations Adjusted Base 10,307,118 6,198,797 29,375 28,840 24,400 458,000 11,125 40,825 17,098,480 Redirection Level Funds To Redirect Additions (542,151) 690,151 (542,151) 690,151 Redirection Totals 10,307,118 6,346,797 29,375 28,840 24,400 458,000 11,125 40,825 17,246,480 Enhancements 12,609,551 181,535 12,791,086 4,307,394 284 13 (326,751) (326,751) (215,400) 574,751 574,751 115,400 12,857,551 181,535 13,039,086 4,207,394 284 13 Totals 10,307,118 6,346,797 29,375 28,840 24,400 458,000 11,125 40,825 17,246,480 12,857,551 181,535 13,039,086 4,207,394 284 13 153 DEPARTMENT OF DEFENSE F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Reflect a decrease in agency self-insurance rates. 3. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 4,230,851 77,157 (762) 148 ADJUSTED BASE 4,307,394 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce regular operating funds for utility and maintenance expenses. (215,400) Total Funds to Redirect (215,400) ADDITIONS 1. Provide for major repairs to Air and Army National Guard facilities. 115,400 Total Additions 115,400 TOTAL REDIRECTION LEVEL 4,207,394 TOTAL STATE FUNDS 4,207,394 154 DEPARTMENT OF DEFENSE Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS 1. Office of the Adjutant General TOTAL 1,281,075 STATE 1,241,926 TOTAL 1,306,752 STATE 1,268,055 2. Air National Guard 5,316,273 618,360 5,533,850 598,376 3. Army National Guard TOTAL APPROPRIATIONS 9,251,478 15,848,826 2,370,565 4,230,851 10,405,878 17,246,480 2,340,963 4,207,394 RECOMMENDED APPROPRIATION: The Department of Defense is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $4,207,394. 155 DEPARTMENT OF DEFENSE Roles and Responsibilities The Department ofDefense serves the nation and the State of Georgia by organizing and maintaining National Guard forces which the President can call to active duty to augment the nation'!i regular armed services, or which the Governor as Conunander-in-Chief of the State Militia can order deployed in instances ofdisaster, riot, violence or other dangers threatening the state and its citizens. The department achieves these objectives through its four components: Office of the Adjutant General, Air National Guard, the Army National Guard and the State Defense Force. Using these three components, the department operates and manages approximately 1,200 training, maintenance, logistics army facilities statewide. GEORGIA ARMY NATIONAL GUARD The Georgia Army National Guard is responsible for maintaining a level of operational readiness which allows for immediate and effective response to state or national emergencies, civil disturbances, and natural disasters. OFFICE OF THE ADJUTANT GENERAL The role ofthe Office ofthe Adjutant General is to provide command and control of the entire organization as well as centralized administrative support for the department. The Adjutant General also serves as the state's director of the Selective Service System. GEORGIA AIR NATIONAL GUARD The role of the Georgia Air National Guard is to provide fully equipped, fully trained combat 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. STATE DEFENSE FORCE The role of the State Defense Force is to provide a caretaker administration in the event of a full mobilization. AUTIIORITY Title 38, Official Code of Georgia Annotated. 156 DEPARTMENT OF DEFENSE Strategies and Services FACILITIES OPERATIONS AND MAINTENANCE The Facilities Operations and Maintenance program is the largest and most important program within the agency. This program provides the foundation which supports the infrastructure of the Georgia National Guard. The Georgia Department of Defense currently manages approximately 1,200 buildings and facilities throughout the state, the majority ofwhich are licensed for use by the state at no cost to the federal government. Most of these facilities are 100 percent federally funded for operations and maintenance, and a significant number require 25 percent matching state fimds. The industrial type facilities and the heavy equipment repair shops fall into this category. The balance of the facilities comprise of 69 National Guard armories and a number of office buildings at headquarters. These facilities are 100 percent state supported as required by law. In addition to the portion of the program that receives federal and state appropriations, the armories are rented as community centers, used for meetings and conferences, voting precincts, and a host of other activities. These funds historically have been reinvested into the facilities which have generated the revenues. Source of Funds MatchingFederal 13% State 15% Self-Generated 2% Federal 70% To maxnmze the use of state funding, some accomplishments have been . made. The Department has reduced facility operating costs through consolidation at the Army National Guard Headquarters, closed five armories, and renegotiated utility rates. MILITARY AND COMMUNITY RELATIONS The Military Relations program provides assistance to approximately 13,000 Georgia National Guardsmen both active and retired as well as their families during military mobilizations. During the Persian Gulf War, the program established approximately 30 Family Assistance Centers around the state to ensure that the spouses and families of activated personnel were able to negotiate paychecks, receive medical care, and receive any supplements for which they are eligible during the mobilization. The program also provides information and assistance to retirees in order to secure for them all of the benefits and entitlements for which they legally qualify. Casualty assistance is also provided to the families of deceased Guard members. yourn CHALLENGE PROGRAM This program provides high school aged at-risk youth an opportunity to receive a High School Graduation Equivalency Degree. In addition to academics, life skills such as money management, balancing a checkbook, establishing and maintaining fmancial credit among others aim to provide these youth with social and life skills necessary to lead productive and rewarding lives and to divert them from self-destructive behaviors. The program is conducted at Ft. Stewart in a military boot camp environment. Military personnel serve as platoon leaders and mentors for the students. The curriculum includes vigorous physical regimen, and job and vocational training. Each session runs for 22 weeks during which time certain needs (food, clothing, housing, medical, psychological counseling, etc.) are attended. The program prepares students for, and aid them in securing, gainful employment. Guidance counseling is provided for students seeking secondary education and careers in the military. Contact by mentors is maintained with the students for three years after completion of the course. STATE DEFENSE FORCE The Georgia State Defense Force provides for an organized, trained, disciplined, rapid response volunteer force and civilian relief organization in impending or actual emergencies to assure the welfare and safety of the citizens. This program provides well trained and equipped volunteer individuals and leaders to perform duties as they may be called upon. These activities include search and rescues under the supervision functions which augment the. ability of other agencies to perform their missions. State fimds provide for minimal support. COUNTER DRUG OPERATIONS The Georgia National Guard provides ground reconnaissance and observation support to requesting drug law enforcement agencies (DLEAs) by providing personnel and equipment necessary to perform operations for the purpose of drug interdiction and eradication. The guard also provides personnel to requesting agencies to research and document information necessary to the establishment of probable cause. Other support includes visual, photo, video and thermal imagery observation capabilities. Georgia National Guard personnel are also assigned to perform tasks which include but are not limited to operational planning, transportation for elements of DLEAs, assist in information gathering, provide security and crowd control, marking and cataloging evidence found at the scene, and assisting in the dismantling of crime scenes. 157 DEPARTMENT OF DEFENSE Results-Based Budgeting Program Summaries YOUTH CHALLENGE PURPOSE: Provide Georgia high school dropouts with a GED or high school diploma. GOAL Graduate 360 students per year with a GED and/or High School diploma. Prepare students for, and aid them in securing, gainful employment. COUNTER DRUG OPERATIONS PURPOSE: Provide reconnaissance, observation, and surveillance support to drug law enforcement agencies (DLEAs). GOALS: Reduce the flow of illegal drugs into and through Georgia. Provide manpower and resources to DLEAs to allow law enforcement officers to conduct more "on the street" law enforcement activities. Create a public awareness of the hazards ofdrug use and abuse through prevention and outreach programs. STATE DEFENSE FORCE PURPOSE: Provide an organized, trained, disciplined, rapid response volunteer force to assist state and local governmental agencies and civilian relief organizations in impending or actual emergencies. GOALS Provide trained individuals and teams to conduct search and rescues under the supervision of supported agencies. Provide support for disaster area reconnaissance operations. Provide emergency operations center support to GEMA and other agencies. Establish and operate emergency shelters. FACILITIES OPERATIONS AND MAINTENANCE PURPOSE: Operate, maintain and repair departmental facilities. GOALS Maximize the useful life offacilities. Provide functional, aesthetic, energy efficient facilities. 158 DEPARTMENT OF DEFENSE -- Results-Based Budgeting MILITARY AND COMMUNITY RELATIONS PURPOSE: Provide assistance to members of the Georgia National Guard and their families during activations as well as the performance of community service projects. GOALS Maintain accurate records of retirees as a contingency force in the event ofa declared emergency. Provide the best possible service to retirees and their families concerning earned benefits and entitlements. Fulfill a request for civil/engineer projects. Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE AGENCY PROGRAMS 1. Youth Challenge 2. Counter Drug Operations 3. State Defense Force 4. Facilities Operations and Maintenance 5. Military and Community Relations 1,446,303 12,017 4,800 13,487,987 897,719 149,031 12,017 4,800 3,167,284 897,719 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 2,089,954 12,649 5,318 14,305,496 933,063 152,960 12,649 5,318 3,103,404 933,063 TOTAL APPROPRIATIONS 15,848,826 4,230,851 17,346,480 4,207,394 159 STATE BOARD OF EDUCATION Total Budgeted Positions as of October 1, 1996 -- 802 The State Board of Education Professional Practices Attached for State Superintendent of Schools Attached for Office of School Commission ------- ------- Readiness 10 Administra- 5 Administra- '-- ---';;..:-J tive Purposes I - - - - - - - - r - - - - - . . : : . . . . J tive Purposes 38 Reviews and resolves Only Only cases against profes- sional educators. I I Comptroller General Human Resources 47 18 I Georgia Academy for the Blind 141 Policy and Communications 58 I External Affairs 2 Disburses funds to Provides personnel Provides age appro- Legal Services (3) Coordinates agency local school systems support to other units priate instruction and Special Programs (4) interactions with ...provides technical within the department interactions for Federal Programs colleges and universi- assistance in budget- ... recruits personnel students of Georgia (35) ties, technical insti- ing, accounting and for the Department of who are visually Help Desk (8) tutes, other national, financial reporting... Education. impaired and cannot Infonnation and PR state and local agen- reviews and tracks receive appropriate (5) cies. contract items. service in their local Communications (3) system. r---------------l Administers federal programs -- School Instruction 229 State Schools (2) Technology (55) Student Learning and Assessment (101) Quality and School Support (71) Provides leadership in developing and implementing curriculum for elementary, middle and secondary students...administers student support programs...administers the Governor's Honors, student assessment, and special education and programs... designs Georgia School for and Community the Deaf Nutrition, Drug-free, 153 Homeless, Headstart, Title I and Migrant Provides age appro- Education... provides priate instruction and information on the interactions for Department's pro- students of Georgia grams to interested who are hearing parties. impaired and cannot receive appropriate service in their local system. guidelines for the expenditure of statenottery funds for K-12 technology...provides information to LEAs regarding training in technology... coordmates WIth GSAMS Atlanta Area School for the Deaf 101 agencies for K-12 site selection and delivery Provides age appro- of instructional programs...develops and priate instruction and delivers leadership and organizational interactions for students development programs that focus on systemic of Georgia who are change for local system personnel and for hearing impaired and school board members... administers funds cannot receive appro- and provides technical assistance for school priate service in their improvement activities. local system. 160 STATE BOARD OF EDUCATION RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 $4,451,045,072 INCREASE OVER F.Y. 1997 BUDGET $156,463,171 REDIRECTION LEVEL $4,278,983,300 ENHANCEMENT FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $172,061,772 HIGHLIGHTS The Governor recommends $176,362,110 to provide a six percent pay increase for certificated personnel, continuing his commitment to raise Georgia teachers' salaries. The Governor is making this recommendation because he wants Georgia to be able compete nationally for the best teachers Georgia can get. Recommended pay increase funds for teachers are listed elsewhere in this budget report and are not reflected in the state fund totals for any department. Also Teacher Salary Projections $44,000 Based on SREB Salary Estimates $42,000 $40,000 $38,000 $36,000 -----~--------~-------_.-------_. $34,000 $32,000 +------r----,--------,~--__, ~% ~n ~~ _ _ _ Georgia - ...-- ViIginia ~~ +.... ..... U.S ~oo recommended is a total of $3,414,299 for a four percent salary increase for bus drivers and lunchroom workers. $59,688,332 in redirected education funds will allow the reduction of class size in the high school program from 23 to 20. The redirected funds will come primarily from the elimination of the high school and vocational lab programs ($39,974,187) and the removal of extended day from the high school program ($9,285,630). $25,564,956 in lottery funds so that each school can have a half-time technology specialist on site to provide K-12 teachers necessary training in the use and application of computers and advanced electronic technology consistent with O.c.GA 50-27-3(8). $300,000 to begin a Dropout Prevention Program utilizing bounty hunters. $2,115,391 to provide Internet and GALILEO access to every Georgia public school. (Additional lottery funds for equipment and installation appear in the Board of Regents budget.) $3,804,500 in lottery funds and $1,540,380 in general funds to implement a coordinated fund accounting, financial analysis, and student information system in schools throughout Georgia. $300,000 to complete the elementary foreign language program by expanding it to the fifth grade in 24 pilot schools in 15 school systems. $114,709,342 to fund QBE formula increases caused primarily by growth in FTEs from 1,275,448 to 1,308,060 -an increase of 2.6 percent. $854,296 in general funds to create two new technology training centers at University System sites and to provide additional salary and operating funds at existing sites, plus $689,836 in lottery funds to purchase equipment for the two new sites and upgrade equipment at existing sites. $97,835,000 in general obligation bonds for 33 school systems to fund new school construction and/or renovations and additions. $208,545,359 in lottery funds to serve 60,000 four-yearolds through the Voluntary Pre-Kindergarten Program. $39,241,800 in lottery funds to provide local schools $30 per FTE for the purchase of technology, equipment, and/or technology training. 161 STATE BOARD OF EDUCATION Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Utilities Capital Outlay QBE Formula Grants: Kindergarten/Grades 1-3 Grades 4-8 Grades 9-12 High School Laboratories Vocational Education Laboratories Special Education Gifted Remedial Education Staff and Professional Development Media Indirect Cost Pupil Transportation Local Fair Share Mid-Term Adjustment Reserve Other Categorical Grants: Equalization Formula Sparsity Grants In School Suspension Special Instructional Assistance Middle School Incentive Special Education LowIncidence Grants Limited English-Speaking Students Non-QBE Grants: Education of Children of Low-Income Families F.Y.1995 Expenditures 36,764,499 4,518,245 1,076,731 131,662 319,475 1,494,104 25,684,682 12,613,974 1,166,417 775,350 25,000 F.Y.1996 Expenditures 36,369,005 6,492,892 1,549,015 139,665 349,162 1,521,366 22,400,389 8,659,343 1,331,761 962,485 F.Y.1997 Current Budget 31,390,727 4,405,530 933,224 80,914 134,371 1,256,614 18,612,146 7,973,126 1,108,607 912,272 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 36,016,290 4,766,850 965,284 61,161 120,249 1,271,679 18,836,136 8,120,783 1,124,886 912,272 24,191 3,650,000 36,040,481 4,766,850 965,284 61,161 120,249 1,271,679 22,486,136 8,120,783 1,124,886 912,272 800,183,642 764,882,110 297,405,987 157,120,167 108,414,205 861,279,137 818,340,850 311,639,548 189,439,018 116,242,554 997,621,233 856,200,685 350,962,605 168,564,020 111,007,756 1,039,157,742 892,809,088 360,390,997 173,462,272 115,569,644 309,288,077 45,180,921 67,899,853 30,126,581 346,213,274 51,241,172 76,335,052 32,446,142 384,401,822 58,064,303 89,508,479 33,759,340 400,826,649 60,583,813 3,753,051 35,208,350 92,728,016 625,247,059 133,357,336 (635,201,965) 70,767,219 99,492,691 633,258,428 138,533,602 (658,766,066) 77,462,514 106,022,187 691,835,455 142,429,530 (673,892,309) 90,239,847 712,802,164 153,918,805 (700,269,186) 18,315,394 1,039,157,742 892,809,088 360,390,997 173,462,272 115,569,644 400,826,649 60,583,813 3,753,051 35,208,350 90,239,847 731,117,558 153,918,805 (700,269,186) 149,779,502 3,257,609 21,906,464 59,211,783 66,129,306 483,628 9,027,195 160,777,465 3,301,936 23,317,032 72,733,808 72,512,817 563,759 11,417,099 165,250,422 3,609,604 25,291,984 87,838,070 77,226,063 563,759 14,363,735 171,860,439 3,717,891 26,738,987 4,648,999 81,322,878 614,497 15,151,443 171,860,439 3,717,891 26,738,987 4,648,999 81,322,878 614,497 15,151,443 170,268,471 186,319,566 143,999,894 143,999,894 143,999,894 162 Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Utilities Capital Outlay QBE Formula Grants: Kindergarten/Grades 1-3 Grades 4-8 Grades 9-12 High School Laboratories Vocational Education Laboratories Special Education Gifted Remedial Education Staff and Professional Development Media Indirect Cost Pupil Transportation Local Fair Share Mid-Term Adjustment Reserve Other Categorical Grants: Equalization Formula Sparsity Grants In School Suspension Special Instructional Assistance Middle School Incentive Special Education LowIncidence Grants Limited English-Speaking Students Non-QBE Grants: Education of Children of Low-Income Families STATE BOARD OF EDUCATION Financial Summary F.Y. 1998 Governor's Recommendations Adjusted Base 31,843,476 5,226,647 967,224 57,592 117,371 1,256,614 17,929,784 7,840,193 1,109,107 912,272 Redirection Level Funds To Redirect Additions (39,759) (3,000) (5,000) 4,500 (11,062) 19,539 9,250 Redirection Totals 31,803,717 5,228,147 962,224 57,592 117,371 1,276,153 17,927,972 7,840,193 1,109,107 912,272 Enhancements 19,279 4,810,067 Totals 31,803,717 5,228,147 962,224 76,871 117,371 1,276,153 22,738,039 7,840,193 1,109,107 912,272 1,007,794,672 865,788,060 354,846,952 170,422,886 112,129,512 4,232,411 3,602,983 239,241,991 (170,422,886) (112,129,512) 388,713,099 58,715,786 90,522,321 33,845,289 1,705,162 272,396 391,687 (534,267) 107,003,538 694,546,122 142,429,530 (673,335,756) 372,030 (15,991,812) (6,748,858) (5,736,772) 77,602,127 1,005,278,225 863,654,271 671,691,070 31,714,427 13,567,865 6,394,167 1,036,992,652 877,222,136 678,085,237 (2,708,055) (430,482) (624,568) 625,853 387,710,206 58,557,700 90,289,440 33,936,875 (592,544) (1,698,369) 106,783,024 676,855,941 142,429,530 (673,335,756) 29,582,216 7,898,049 4,780,139 1,054,570 2,997,412 18,112,072 728,900 (30,146,833) 417,292,422 66,455,749 95,069,579 34,991,445 109,780,436 694,968,013 143,158,430 (703,482,589) 165,250,422 3,609,604 25,582,600 88,633,891 77,969,848 563,759 14,518,623 143,999,894 (100,000) 165,250,422 3,509,604 25,582,600 88,633,891 77,969,848 563,759 14,518,623 2,585,739 1,058,883 12,054,335 3,784,336 2,732,412 167,836,161 3,509,604 26,641,483 100,688,226 81,754,184 563,759 17,251,035 143,999,894 143,999,894 163 STATE BOARD OF EDUCATION -- Financial Summary Expenditures, Current Budget and Agency Requests Budget C,lasseslFund Sources Retirement (H.B.272 and H.B. 1321) Instructional Services for Handicapped Tuition for Multi-Handicapped Severely Emotionally Disturbed School Lunch (Federal) School Lunch (State) Supervision and Assessment of Students and Beginning Teachers and PerformanceBased Certification Regional Education Service .Agencies Georgia Learning Resources System High School Program Special Education at State Institutions Governor's Scholarships Counselors Vocational Research and Curriculum Even Start Salaries and Travel of Public Librarians Public Library Materials Talking Book Centers Public Library M & 0 Child Care Lunch Program (Federal) Chapter 11- Block Grant Flow Through Payment of Federal Funds to Board of Technical and Adult Education Education of Homeless ChiidrenNouth Innovative Programs Next Generation School Grants Drug Free School (Federal) At Risk Summer School Program Emergency Immigrant Education Program F.Y.1995 Expenditures 5,185,712 59,252,742 1,047,294 40,369,243 202,115,138 25,571,964 2,022,309 7,264,296 3,603,975 31,574,464 4,097,533 2,972,200 6,717,000 2,448,485 11,838,868 5,505,249 934,520 4,039,391 30,126,534 8,100,763 14,862,911 655,331 1,208,875 1,447,000 8,513,874 4,691,270 312,864 F.Y.1996 Expenditures 5,173,750 F.Y.1997 Current Budget 5,408,750 54,732,103 54,732,103 1,546,207 41,734,146 188,375,722 27,712,817 2,012,291 1,308,088 44,078,591 188,375,722 29,128,663 1,491,147 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 5,408,750 5,408,750 54,732,103 54,732,103 1,366,952 45,131,428 188,375,722 30,002,515 1,491,147 1,366,952 45,131,428 188,375,722 30,002,515 1,491,147 9,012,044 3,656,765 39,645,442 4,782,130 2,818,424 6,995,656 294,520 2,963,956 12,571,011 6,301,325 992,239 4,039,395 25,244,070 9,663,513 16,892,002 9,722,497 3,489,010 21,712,907 5,041,480 1,720,000 7,580,313 293,520 2,720,906 25,244,070 9,663,513 14,395,919 10,059,624 3,611,357 21,712,907 5,268,347 1,771,600 7,862,924 293,520 2,720,906 25,244,070 9,663,513 14,395,919 637,478 1,690,215 2,443,700 11,625,943 6,000,000 397,666 601,772 1,690,215 500,000 11,625,943 5,979,345 164,514 601,772 1,690,215 500,000 11,625,943 6,158,724 164,514 10,059,624 3,611,357 21,712,907 5,268,347 1,771,600 7,862,924 293,520 2,720,906 25,244,070 9,663,513 14,395,919 601,772 1,690,215 500,000 11,625,943 6,158,724 164,514 164 STATE BOARD OF EDUCATION -- Financial Summary F.Y.1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Retirement (H.B.272 and H.B. 1321) Instructional Services for Handicapped Tuition for Multi-Handicapped Severely Emotionally Disturbed School Lunch (Federal) School Lunch (State) Supervision and Assessment of Students and Beginning Teachers and PerformanceBased Certification Regional Education Service Agencies Georgia Leaming Resources System High School Program Special Education at State Institutions Governor's Scholarships Counselors Vocational Research and Curriculum Even Start Salaries and Travel of Public Librarians Public Library Materials Talking Book Centers Public Library M & 0 Child Care Lunch Program (Federal) Chapter II - Block Grant Flow Through Payment of Federal Funds to Board of Technical and Adult Education Education of Homeless ChildrenlYouth Innovative Programs Next Generation School Grants Drug Free School (Federal) At Risk Summer School Program Emergency Immigrant Education Program 5,408,750 54,732,103 1,308,088 42,646,349 188,375,722 29,128,663 1,491,147 9,722,497 3,341,772 21,712,907 3,625,807 1,720,000 7,667,396 293,520 2,720,906 25,244,070 9,663,513 14,395,919 601,772 1,690,215 500,000 11,625,943 5,979,345 164,514 Redirection Level Funds To Redirect Additions (1,525,939) Redirection Totals 5,408,750 54,732,103 1,308,088 42,646,349 188,375,722 29,128,663 1,491,147 Enhancements 961,580 1,282,684 821,808 9,722,497 3,341,772 21,712,907 3,625,807 1,720,000 7,667,396 293,520 2,720,906 216,456 18,852 2,480,000 3,310,428 25,244,070 9,663,513 14,395,919 601,772 1,690,215 500,000 11,625,943 4,453,406 164,514 Totals 5,408,750 54,732,103 2,269,668 43,929,033 188,375,722 29,950,471 1,491,147 9,722,497 3,558,228 21,712,907 3,644,659 4,200,000 10,977,824 293,520 2,720,906 25,244,070 9,663,513 14,395,919 601,772 1,690,215 500,000 11,625,943 4,453,406 164,514 165 STATE BOARD OF EDUCATION -- Financial Summary Expenditures, Current Budget and Agency Requests Bud~et ClasseslFund Sources , Title II Math/Science Grant (Federal) Robert C. Byrd Scholarship (Federal) Health Insurance-Non-Cert. Personnel and Retired Teachers Pre-School Handicapped Program Mentor Teachers Nutrition Education Advanced Placement Exams Serve America Program Family Connection Grants Youth Apprenticeship Grants Remedial Summer School Alternative Programs Superintendent's Base Salary Environmental Science Grants Pay for Performance State and Local Education Improvement Mentoring Program Charter Schools Technology Specialist Migrant Education Dropout Prevention School Improvement Activities Instructional Resources Vocational Equipment F.Y.1995 Expenditures 5,238,972 513,000 99,047,892 15,226,209 1,236,710 131,943 1,771,560 351,427 3,195,000 2,000,000 1,874,991 7,240,788 1,228,175 100,000 1,048,000 56,000 LOTTERY FUNDS: Pre-kindergarten for 4-year-olds Applied Technology Labs Next Generation Schools Drug and Anti-Violence Education Alternative Programs Educational Technology Centers Distance Learning-Satellite Dishes Model Technology Schools Instructional Technology Capital Outlay Technology Installation 75,925,510 12,280,040 500,000 1,000,000 8,471,564 877,582 4,206,507 10,499,998 31,237,453 61,405,934 18,989,992 F.Y.1996 Expenditures 5,042,895 F.Y.1997 Current Bud~et 5,042,895 772,500 273,723 99,047,892 99,047,892 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 5,042,895 5,042,895 273,723 273,723 99,047,892 99,047,892 14,953,763 1,250,000 63,913 382,597 4,340,000 1,875,664 12,394,075 100,000 2,018,000 1,674,891 500,000 620,000 13,655,450 266,403 16,877,102 1,250,000 17,636,572 1,250,000 382,597 4,340,000 1,875,664 12,976,442 100,000 2,000,000 382,597 4,340,000 1,996,933 13,740,732 100,000 2,500,000 500,000 55,000 15,289,138 266,403 500,000 55,000 15,984,698 274,395 205,108,467 17,636,572 1,250,000 382,597 4,340,000 1,996,933 13,740,732 100,000 2,500,000 10,465,928 11,582,000 500,000 55,000 15,984,698 274,395 205,108,467 10,465,928 11,582,000 176,837,481 500,000 5,000,000 900,000 250,000 11,688,000 185,136,919 3,650,000 1,100,000 64,726,684 204,981,185 5,550,000 204,981,185 5,550,000 500,000 500,000 166 STATE BOARD OF EDUCATION -- Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Title II Math/Science Grant (Federal) Robert C. Byrd Scholarship (Federal) Health Insurance-Non-Cert. Personnel and Retired Teachers Pre-School Handicapped Program Mentor Teachers Nutrition Education Advanced Placement Exams Serve America Program Family Connection Grants Youth Apprenticeship Grants Remedial Summer School Alternative Programs Superintendent's Base Salary Environmental Science Grants Pay for Performance State and Local Education Improvement Mentoring Program Charter Schools Technology Specialist Migrant Education Dropout Prevention School Improvement Activities Instructional Resources Vocational Equipment 5,042,895 273,723 99,047,892 16,877,102 1,250,000 382,597 4,340,000 1,875,664 12,976,442 100,000 2,000,000 500,000 55,000 15,289,138 266,403 LOTTERY FUNDS: Pre-kindergarten for 4-year-olds Applied Technology Labs Next Generation Schools Drug and Anti-Violence Education Alternative Programs Educational Technology Centers Distance Learning-Satellite Dishes Model Technology Schools Instructional Technology Capital Outlay Technology Installation 185,136,919 Redirection Level Funds To Redirect Additions (185,733) (15,289,138) Redirection Totals 5,042,895 273,723 99,047,892 Enhancements Totals 5,042,895 273,723 99,047,892 16,877,102 1,250,000 772,485 17,649,587 1,250,000 382,597 4,340,000 1,689,931 12,976,442 100,000 2,000,000 254,936 1,670,380 382,597 4,340,000 1,689,931 13,231,378 100,000 3,670,380 500,000 55,000 266,403 7,992 300,000 500,000 55,000 274,395 300,000 185,136,919 23,408,440 208,545,359 500,000 689,836 500,000 689,836 167 STATE BOARD OF EDUCATION -- Financial Summary Expenditures, Current Budget and Agency Requests BudJ!;et Classes/Fund Sources Postsecondary Options Safe School Grants Assistive Technology Computers in the Classroom Media Center and Library Equipment Learning Logic Sites Technology Specialists Equipment, Technology and Teacher Training Accounting, Management and Student Information System Safe School Grants SIS Implementation Internet Research Access Education Technology Centers Teacher Technology Training Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS Indirect Funds Governor's Emergency Funds Total Federal & Other Funds F.Y.1995 Expenditures 1,128,214 4,000,000 F.Y.1996 Expenditures 1,313,015 F.Y.1997 Current Budget 1,000,000 2,160,000 2,100,000 27,104,660 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 65,398,950 13,079,787 65,398,"950 13,079,787 4,289,296,571 4,553,537,550 4,791,100,275 4,881,773,415 1,620,000 4,672,750 10,018,464 1,100,000 19,619,681 165,597,145 4,672,750 10,018,464 1,100,000 5,026,130,879 545,599,484 10,297,861 340,000 187,000 556,424,345 563,015,127 9,920,051 340,000 90,500 573,365,678 494,755,727 1,422,647 340,000 496,518,374 495,473,064 1,422,647 340,000 497,235,711 495,473,064 1,422,647 340,000 497,235,711 State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 3,502,349,432 230,522,794 3,732,872,226 951 55 3,779,423,376 200,748,496 3,980,171,872 894 55 4,011,863,638 282,718,263 4,294,581,901 802 55 4,179,556,519 204,981,185 4,384,537,704 808 55 44,037,513 121,559,632 165,597,145 4,223,594,032 305,301,136 4,528,895,168 808 55 168 STATE BOARD OF EDUCATION -- Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Postsecondary Options Safe School Grants Assistive Technology Computers in the Classroom Media Center and Library Equipment Learning Logic Sites Technology Specialists Equipment, Technology and Teacher Training Accounting, Management and Student Information System Safe School Grants SIS Implementation Internet Research Access Education Technology Centers Teacher Technology Training Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS Indirect Funds Governor's Emergency Funds Total Federal & Other Funds State General Funds Lottery Funds Total State Funds Positions Motor Vehicles Adjusted Base 1,661,000 Redirection Level Funds To Redirect Additions Redirection Totals 1,661,000 Enhancements 2,000,000 Totals 1,661,000 2,000,000 25,564,956 39,241,800 3,804,500 25,564,956 39,241,800 3,804,500 4,731,646,625 (66,419,448) 59,721,621 4,724,948,798 221,035,168 4,945,983,966 493,176,247 1,422,647 340,000 494,938,894 4,049,909,812 186,797,919 4,236,707,731 805 55 (66,419,448) (66,419,448) 493,176,247 1,422,647 340,000 494,938,894 59,721,621 59,721,621 4,043,211,985 186,797,919 4,230,009,904 805 55 493,176,247 1,422,647 340,000 494,938,894 125,825,636 95,209,532 221,035,168 4,169,037,621 282,007,451 4,451,045,072 805 55 169 STATE BOARD OF EDUCATION Quality Basic Education Funding Comparison Program Area DIRECT INSTRUCTION Kindergarten, Primary and Elementary Grades (1-3) Middle Grades (4-8) High School Grades (9-12) Special Education Gifted Remedial Education TOTAL DIRECT INSTRUCTIONAL MID-TERM ADJUSTMENT RESERVE STAFF AND PROFESSIONAL DEVELOPMENT MEDIA CENTER INDIRECT/CENTRAL ADMINISTRATION TOTAL QBE FORMULA EARNINGS OTHER CATEGORICAL GRANTS Pupil Transportation Sparsity/Isolated Schools Equalization Middle School Incentive English to Speakers of Other Languages (ESOL) Low-Incidence Special Education Special Instructional Assistance (SIA) In-School Suspension Counselors (Grades 4-5) Innovative Programs Expenditures Appropriations F.Y.1996 F.Y.1997 Recommendations F.Y.1998 861,279,137 818,340,850 617,321,120 346,213,274 51,241,172 76,335,052 2,770,730,605 77,462,514 32,446,142 99,492,691 633,258,428 3,613,390,380 997,621,233 856,200,685 630,534,381 384,401,822 58,064,303 89,508,479 3,016,330,903 33,759,340 106,022,187 691,835,455 3,847,947,885 1,036,992,652 877,222,136 678,085,237 417,292,422 66,455,749 95,069,579 3,171,117,775 34,991,445 109,780,436 694,968,013 4,010,857,669 138,533,602 3,301,936 160,777,465 72,512,817 11,417,099 563,759 72,733,808 23,317,032 6,995,656 500,000 142,429,530 3,609,604 165,250,422 77,226,063 14,363,735 563,759 87,838,070 25,291,984 7,580,313 500,000 143,158,430 3,509,604 167,836,161 81,754,184 17,251,035 563,759 100,688,226 26,641,483 10,977,824 500,000 TOTAL QBE FUNDS LOCAL FAIR SHARE STATE SHARE 4,104,043,554 4,372,601,365 (658,766,066) 3,445,277,488 (673,892,309) 3,698,709,056 4,563,738,375 (703,482,589) 3,860,255,786 170 STATE BOARD OF EDUCATION F.Y.1998 QBE Formula Recommendation Base Amount (Grades 4-5) = $1,867.38 Program Kindergarten Grades 1-3 Grades 4-5 Grades 6-8 Grades 9-12 Special Education I Special Education II Special Education III Special Education IV Special Education V Gifted Remedial Total Direct Instruction Weighted FTE Weight FTE 109,928 303,629 176,501 286,075 319,881 6,142 14,819 32,004 2,663 427 19,970 36,021 1.3083 1.2311 1.0000 1.0048 1.0749 2.3201 2.6997 3.4295 5.5333 2.4059 1.6254 1.2795 143,819 373,798 176,501 287,448 343,840 14,250 40,007 109,758 14,735 1,027 32,459 46,089 1,308,060 1,583,731 Total FTE Earnings Direct Cost Proportion Direct Instructional Cost Plus T&E Training and Experience 268,566,501 697,994,305 329,594,690 536,784,987 642,106,240 26,612,763 74,706,501 204,958,160 27,515,888 1,919,160 60,616,621 86,063,058 0.8102 0.7982 0.7516 0.7714 0,7956 0.8643 0.8834 0.9077 0.9381 0.8681 0.8102 0.8206 292,054,172 744,938,480 327,832,514 549,389,622 678,085,237 32,502,716 91,050,491 255,856,934 35,642,172 2,240,109 66,455,749 95,069,579 2,957,438,874 3,171,117,775 Staff Development Professional Development Media (Including T&E) Indirect/Central Admin. (Including T&E) TOTAL QBE FORMULA EARNINGS Plus: Pupil Transportation Sparsityllsolated Schools Equalization Middle School Incentive English to Speakers of Other Languages (ESOL) Low-Incidence Special Education Special Instructional Assistance In-School Suspension Counselors (Grades 4-5) Innovative Programs 9,632,596 25,358,849 109,780,436 694,968,013 4,010,857,669 143,158,430 3,509,604 167,836,161 81,754,184 17,251,035 563,759 100,688,226 26,641,483 10,977,824 500,000 TOTAL QBE EARNINGS Less: Local Fair Share (1994 40% Equalized Tax Digest less exemption allowances x .005) STATE FUNDS - F.Y. 1998 (Includes $1,067,754,268 for Training and Experience) 4,563,738,375 (703,482,589) 3,860,255,786 171 STATE BOARD OF EDUCATION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the F.Y. 1997 teacher salary increase and adjust local fair share to reflect the most recent equalized tax digest. 2. Annualize the FY 1997 salary adjustment for the department and agencies attached. 3. Reflect a decrease in agency self-insurance rates. 4. Reflect an increase in the merit system position assessment due to a policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 5. Transfer 41 positions and $4,754,097 in state funds among activities to implement a department reorganization. 6. Transfer $905,684 among object classes and among functions to properly classify program expenses, to comply with accdpnting procedures and to cover the agency's projected administrative costs as recommended in the F.Y. 1997 Amended Budget. 7. Transfer 2 positions and related operating expenses to the Office of School Readiness from the Department of Human Resources. 8. Transfer a position and personal services funds to the Office of School Readiness from the Board of Pardons and Paroles. 9. Transfer funds for a special education contract with the Department of Children and Youth Services to that agency. ADJUSTED BASE REDIRECTION FUNDS 4,011,863,638 39,009,098 283,896 (10,746) 34,205 Yes Yes 90,000 55,394 (1,415,673) 4,049,909,812 FUNDS TO REDIRECT 1. Remove extended day from 9-12, high school and vocational lab programs. 2. Eliminate high school lab program and vocational lab program. 3. Change the funding basis for Technology Specialists. 4. Redirect funds from At-Risk Summer School ($1,525,939), Remedial Summer School ($185,733) and Sparsity Grants ($100,000). 5. Professional Practices Commission - reduce per diem, fees and contracts. 6. Office of School Readiness - Reduce personal services through a consolidation of child care licensing and child and adult care food programs. 7. Office of School Readiness - reduce repairs and maintenance ($3,000) and travel ($5,000). Total Funds to Redirect ADDITIONS 1. Lower high school class size from 23 to 20. 2. Professional Practices Commission - increase real estate rentals. 3. Office of School Readiness - increase regular operating expenses for supplies and materials and publications and printing ($4,500), real estate rentals ($8,500) and per diem, fees and contracts ($9,250). Total Additions (9,285,630) (39,974,187) (15,289,138) (1,811,672) (11,062) (39,759) (8,000) (66,419,448) 59,688,332 11,039 22,250 59,721,621 TOTAL REDIRECTION LEVEL 4,043,211,985 172 STATE BOARD OF EDUCATION - FY 1998 Budget Summary GOVERNOR'S RECOMMENDAnONS ENHANCEMENT FUNDS ENHANCEMENTS 1. Provide funds for the QBE formula grants based on projected FTE increases. 2. Increase funding for Equalization Grants. 3. Provide additional Local Fair Share to reflect the most recent equalized tax digest. 4. Add funds for Special Instructional Assistance based on projected student counts. 5. Provide increased funding for Middle School Incentive based on projected student counts. 6. Add funds for Limited English Speaking Students based on projected student counts. 7. Increase funding for the Governor's Scholarship Program based on student growth. 8. Increase funding for In School Suspension based on projected student counts. 9. Provide funding changes to other grant programs based on projected student counts. 10. Provide additional funds for Pay for Performance based on increased participation. 11. Provide funding for a change in funding formula for Psychoed Centers (Severely Emotionally Disturbed). 12. Provide increases for various grant programs based on projected needs. 13. Add funds for staff at existing technology centers. 14. Provide for 2 additional technology centers. 15. Increase funding to complete the elementary foreign language program by expanding it to the fifth grade in 24 pilot schools in 15 local systems. 16. Implement a coordinated fund accounting, fmancial analysis, and student information system at schools throughout the state. 17. Implement a new Dropout Prevention program. 18. Provide Internet access at public education facilities. 19. Professional Practices Commission - add funds for the replacement of a motor vehicle. 116,100,917 2,585,739 (30,146,833) 12,054,335 3,784,336 2,732,412 2,480,000 1,058,883 6,129,229 1,670,380 1,282,684 964,208 350,000 504,296 300,000 1,540,380 300,000 2,115,391 19,279 CAPITAL OUTLAY 1. Provide $27,420,000 in Regular Capital Outlay funds to construct and/or renovate schools in 12 school systems (requested $27,419,910). 2. Provide $33,115,000 in Regular Advance Capital Outlay funds to construct and/or renovate schools in 13 school systems (requested $33,113,281). 3. Provide $16,300,000 in Incentive Advance Capital Outlay funds to construct and/or renovate schools in four school systems (requested $16,302,734) 4. Provide $63,569,201 in Growth Capital Outlay funds to construct and/or renovate schools in 27 school systems (requested $63,569,201). 5. Provide $21,000,000 in Incentive Advance Capital Outlay funds for F.Y. 1997 applicants to construct and/or renovate schools in four school systems (requested $21,000,492). See G.O. Bonds See G.O. Bonds See G.O. Bonds See FY 1997 Amended See G.O. Bonds TOTAL ENHANCEMENT FUNDS TOTAL STATE GENERAL FUNDS 125,825,636 4,169,037,621 173 STATE BOARD OF EDUCATION - FY 1998 Budget Summary GOVERNOR'S RECOMMENDAnONS LOTTERY FUNDS LOTTERY PROGRAMS 1. Serve 60,000 children through the Voluntary Pre-Kindergarten Program. 2. Provide funds for technology, equipment, and technology training for local schools at $30 per FTE. 3. Implement a coordinated fund accounting, fmancial analysis, and student information system at schools throughout the state. 4. Change the funding basis for technology specialists, consistent with the intent of O.C.G.A. 50-27-3(8). 5. Provide funds for assistive technology for students with special needs. 6. Provide additional funds for Postsecondary Options based on projected participation. 7. Purchase equipment for two new technology training centers and upgrade equipment at existing centers. 8. Provide for technology needs at alternative schools. 9. Provide for Internet access at public education facilities. 208,545,359 39,241,800 3,804,500 25,564,956 2,000,000 1,661,000 689,836 500,000 See Regents TOTAL LOTTERY FUNDS 282,007,451 TOTAL STATE FUNDS 4,451,045,072 174 STATE BOARD OF EDUCATION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. State Administration 2. Student Learning and Assessment 3. Governor's Honors.Program 4. Quality and School Support 5. Federal Programs 6. Technology 7. Local Programs 8. Georgia Academy for the Blind 9. Georgia School for the Deaf 10. Atlanta Area School for the Deaf 11. Professional Practices Commission 12. Office of School Readiness 13. Unit B - Lottery Programs 9,401,981 7,944,287 10,889,377 19,654,549 15,588,596 16,600,874 1,217,128 1,139,539 1,221,550 7,382,683 2,094,391 4,784,083 6,014,872 11,334,813 1O,261,1l7 14,425,291 4,441,924,481 3,958,344,023 4,592,262,421 5,399,800 5,146,415 5,455,217 4,997,037 4,767,941 5,048,370 5,047,306 4,773,751 5,095,763 1,100,049 1,100,049 1,130,310 922,185 703,529 1,048,387 282,718,263 282,718,263 282,007,451 9,431,683 12,534,921 1,143,961 4,784,083 726,580 13,351,595 4,110,261,443 5,201,832 4,819,274 4,822,208 1,130,310 829,731 282,007,451 TOTAL APPROPRIATIONS 4,791,100,275 4,294,581,901 4,945,983,966 4,451,045,072 RECOMMENDED APPROPRIATION: The State Board of Education is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $4,451,045,072. 175 STATE BOARD OF EDUCATION Roles and Responsibilities The State Board of Education establishes policies that the Georgia Department of Education administers under the directi(>n of the State Superintendent of Schools. The department disburses state education funds, provides technical assistance and support services to local school systems, operates three state schools for hearing- and visually-impaired students, and evaluates the effectiveness of public education in the state. OFFICE OF INSTRUCTION The Office of Instruction consists of four divisions: State Schools, Technology, Student Learning and Assessment, and Quality and School Support. The office: provides leadership in developing and implementing curriculum for elementary, middle and secondary students; administers student support programs; administers the Governor's Honors, student assessment and special education programs; designs guidelines for the expenditure of state/lottery funds for K-12 technology; provides information to local school systems regarding training in technology; coordinates with GSAMS agencies for K-12 site selection and delivery of instructional programs; develops and delivers leadership and organizational development programs that focus on systemic change for local system personnel and for school board members; administers funds and provides technical assistance for school improvement activities including Charter Schools, Pay for Performance, and Next Generation Schools; and provides technical assistance for and processes waiver requests. OFFICE OF POLICY AND COMMUNICATIONS The Office of Policy and Communications consists of six divisions: Legal Services, Special Programs, Federal Programs, Help Desk, Information and Public Relations, and Communications. The office: administers federal programs, including School and Community Nutrition, Drug-Free Schools, Homeless grants, Headstart, Title I and Migrant Education; and provides information on the department's programs to interested parties. OFFICE OF THE COMPTROLLER GENERAL The Office of the Comptroller General: disburses funds to local school systems; provides technical assistance in budgeting, accounting and fmancial reporting; and reviews and tracks contract items. OFFICE OF HUMAN RESOURCES The Office of Human Resources: provides personnel support to other units within the department; and recruits personnel for the Department of Education. OFFICE OF EXTERNAL AFFAIRS The Office of External Affairs coordinates agency interactions with colleges and universities, technical institutes, and other national, state and local agencies. ATTACHED AGENCIES Office of School Readiness administers the Georgia Voluntary Pre-Kindergarten Program, licenses private child care centers that operate pre-kindergarten programs, and administers the federal Child and Adult Care Food Program. Professional Practices Commission develops and enforces codes of ethics and performance standards for teachers in local school systems. AUTHORITY Title 20 of the Offical Code of Georgia Annotated. 176 STATE BOARD OF EDUCATION Strategies and Services LINKING SCHOOL RESOURCES, SERVICES, AND STUDENT ACHIEVEMENT In 'Georgia, as well as nationwide, per-student educational spending has been steadily increasing over the past decades. Yet, we have seen only limited, if any, improvement in student achievement. Obviously, many other changes that affect educational achievement have occurred in our society over these decades -- changes in family structure, changes in TV viewing, changes in family income -- in addition to changes in educational spending. For these reasons, many educators insist that educational improvement is only a few hundred or a few thousand dollars per student away. Yet even considering these and other factors, researchers have been unable to find a consistent relationship between increased educational spending and improved student achievement, leading some to ask, "Does money matter?" The Governor believes, and research supports, that money does matter -- ifit is used wisely to improve student instruction directly in the classroom. International comparisons indicate that a smaller proportion of U.S. education spending goes into direct classroom instruction than in other countries and that proportionally more U.S. spending goes into administration. Yet research suggests that dollars spent directly on improving student academic instruction are the most effective way to raise student achievement. High-performing schools are characterized by faculty members who understand the school's mission, who have a sense of control over what they do in the classroom, and who take coordinated school-based responsibility for the students they accountability system. School-based teach. We can assist all schools in accountability requires school-level becoming high-performing schools by data on expenditures and achievement. giving them the tools to monitor However, school-level expenditure data individual student progress and to link is not available and school-level this progress to the financial resources achievement data is difficult to track. and programs available in particular A CEO of a corporation would not schools and classrooms. The tolerate having no data on how much availability of school-level fmancial, each factory or branch office cost and programmatic, and achievement data how productive it was. Yet this is just for the first time will allow citizens, the situation that we have asked local school personnel, and others to taxpayers and policy-makers to accept evaluate school-level effectiveness and for years with regard to public plan for further progress. education. It is time we learn the cost The Governor's initiatives have and effectiveness of what we do at the consistently been moving Georgia level where learning takes place -- the school and the classroom. Real Expenditures per Student in U.S. Governor Miller is recommending ss,ooo Source: Hanushek & Rivkin, 1994 $3,160,950 in the F.Y. 1997 amended 54,000 '"~ $3,000 budget (lottery and general funds) and $5,344,880 in F.Y. J$2,000 1998 (lottery and general funds) for a $1,000 J. _ _- - comprehensive fund accounting, student $0 -t----,-----,------,---,---, 1940 1950 1960 1970 1980 1990 information system, and financial analysis model. The new fund accounting system will replace the ten-year-old towards increased school-level GENESIS system. GENESIS' accountability. At least three groups, technology has become unwieldy to including the Department of Education adapt to current uses and expensive to and the Council for School maintain. Plus GENESIS is subject to Performance offer "report cards" on the "Year 2000 problem," meaning that student achievement by school. the system will have to be replaced by Other initiatives such as Pay for F.Y. 2000 or school systems will be Performance and Charter Schools unable to run their payrolls or perform encourage teachers and principals to other necessary activities. take responsibility for improving their The Student Information System schools and reward them at the school [SIS] is a technology package that will level for doing so. The Governor's allow Georgia school systems to constant emphasis has been on the transmit the mandated student record to classroom and improving student the state in electronic form. performance. Transmission of the record becomes The next logical step is to put in mandatory in June 1998. School place the fmal pieces necessary for a systems can also use SIS to collect and 177 STATE BOARD OF EDUCATION--Strategies and Services transmit FTE funding data to the state. edge technology into Georgia's purchase, including vocational In$ite is fmancial analysis classrooms and schools. Students equipment. Clearly schools are at software from Coopers & Lybrand that cannot be effectively educated for the different stages in their purchase and provides the state, school systems, and 21 st century using classroom training in the use of technology. A taxpayers concise, easy-to-understand technology of the 19th century. "one size fits all" approach, with fixed Since F.Y. 1994 amounts for equipment and training over $196 million in does not make sense. Teachers as % of Total School Staff lottery funds have OTHER TRAINING --- --D- (OECDIndicators, 1995) been appropriated to put computers, satellite dishes, and other instructional INITIATIVES--In addition to allowing per-FTE technology earnings to be used for technology training, the Governor also recommends two other 40"10 --, : 1J I. I" ri technology into Georgia's classrooms. In 199293, before lottery training initiatives. The first involves increasing the funding basis for technology specialists to $25,564,956 in lottery funds to enable every school 0% -'-'-r'----,---'--,-L--'-T-L-'--r---'-T-'--'-+'---"'.". f,,--.'---'-r"-- I I I I I France Australia Japan U.S. Denmarl< Finlawl Italy Belgium funding, only 26 percent of Georgia classrooms had to have a half-time technology specialist on site with a minimum of one full-time-equivalent position per computers and only school system. The current program 15 percent had allots funds according to a "threshold" information on education expenditures distance learning capability. By 1995- formula based on the number of down to the school and classroom 96, after three years of lottery funding, schools in the system. This funding is level. In$ite prepares timely and clear distance learning capability was not sufficient to fund a half-time management reports for both internal available to almost half (49 percent) of specialist at every site. Research and external use. all classrooms, and 62 percent of supports the idea that having a The advantage of implementing all classrooms had an average of 2.2 specialist "on call" at the school site is three parts ofthis accountability system computers each. essential to giving teachers the support simultaneously is that all hardware and Governor software will be compatible and will be Miller is able to "talk" to each other. For continuing this Lottery-funded Technology & Equipment example, SIS will interface with the fund accounting system in order to commitment by recommending that F.Y. 1994-1998 (proposed) SI20 upload classroom teacher assignments $30 per FTE for a Sloo to the payroll system. Implementation total of of In$ite at the same time as the new $39,241,800 be $80 ,-- fund accounting system will insure that appropriated for . charts of accounts will only have to be mapped to In$ite codes once and the mapping will be uniform across the state. Complete installation of this technology and equipment from F.Y. 1998 lottery funds. Senate Bill $40 ..... $20 n r-l F.Y.94 F.Y.9S F.Y.96 F.Y.97 F.Y.98 comprehensive accountability system 46, passed in will allow Georgia taxpayers for the 1996, made it first time ever to be able to see what possible for lottery funds to be used to and training they need to feel they are getting for their expenditures train teachers in the use of instructional comfortable using technology in the in terms of student achievement at the technology. Rather than dictating a classroom. school and the classroom level. specific amount to be used for Another technology training technology training, the Governor initiative provides $689,836 in lottery TECHNOLOGY INSTRUCTION FOR recommends that schools receive a single FTE-based technology allotment funds and $504,296 in general funds to create two new technology centers at that they can use for their technology University System institutions and to One of the Governor's prime needs as they see fit -- whether that be upgrade equipment at existing commitments has been to put cutting technology training or technology technology centers. 178 STATE BOARD OF EDUCATION--Strategies and Services Together the three parts of this the country over $200 billion over their indicating that they understand the dire training initiative FTE-driven life times in lost earnings and economic consequences of dropping funding that can be used for technology unrealized tax revenues. The majority out of school. training, increased funding for on-site of new jobs being created require technology specialists, and expansion education beyond high school, let alone GEORGIA VOLUNTARY PRE- of the technology centers -- fonn a a high school diploma. High school KINDERGARTEN PROGRAM balanced and coherent plan to spend dropouts are disqualified for these jobs almost $65 million training Georgia's even before they walk in the door, Georgia is proud to have the teachers today in the use of tomorrow's setting them up for a life of low wages largest and most comprehensive pre- technology. and possible welfare dependency. kindergarten program serving four- CONNECTIVITY--One of the Georgia has one of the ten highest year-olds and their families of any state dropout rates in the in the country. The program country. The senior successfully combines services from 120,000 Enrollment by Grade Fall 1995 class in Georgia's public high schools is approximately40 percent public and private providers of early childhood education in order to provide a high-quality pre-kindergarten 100,000 80,000 60,000 40,000 smaller than the entering freshman class. Clearly, Georgia has a serious problem. To address this experience for every Georgia family that wants it. Georgia is already experiencing the benefits of the Pre-Kindergarten Program through the higher skills and 20,000 o 7th 8th 9th 10th 11th 12th Grade problem the Governor recommends $300,000 to begin a pilot dropout prevention lower retention rates that "graduates" have been demonstrating when they reach kindergarten and first grade. There is every reason to hope that this program in F.Y. 1998. pattern of early success in school will The program may be stay with these youngsters and keep most exciting new technology modeled in part on a successful dropout them on track to eventually completing initiatives is $2,115,391 in general prevention program in the Central Linn school successfully. funds for the Internet/Connectivity school district of Oregon. The Central The Governor is maintaining his project. (Additional lottery funds Linn program incorporates the use of commitment to the Pre-Kindergarten appear in the Board of Regents budget.) two "bounty hunters" who track down Program through his recommendation The initiative will provide all Georgia students that are absent from school or of $208,545,359 in lottery funding to public schools, public libraries, and the have dropped out. Department of Technical and Adult The bounty hunters Education institutions with ready keep tabs on the Pre-K Students Served access to the Internet and GALILEO students and attempt 60,000 through PeachNet. GALILEO is the to provide them 50,000 University System of Georgia's on-line services such as library and computerized database tutoring and 40,000 system. Through this initiative transportation that 30,000 Georgia's K-12th grade students will they need to stay in have access to the resources of school. The women 20,000 Georgia's university librarie's -- and more -- through the convenience of the Internet. are paid for each dropout they enroll in school, and then receive an additional 10,000 0+-----,----,--------.----.------., FY93 FY 94 FY 95 FY 96 FY 97" FY 98" DROPOUT PREVENTION amount for monitoring his or her Students who drop out of school progress, and a bonus if the student serve 60,000 four-year-olds and their before obtaining their high school fmishes school. families in F.Y. 1998. This represents diploma represent a huge human and The Governor's initiative will also an increase of 3,000 students over the economic cost for Georgia. It has been include a "dropout diploma" that the 57,000 four-year-olds served in F.Y. estimated that each year's dropouts cost student and parent will have to sign, 1997. 179 STATE BOARD OF EDUCATION--Strategies and Services 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 -0'1 0'1 ->~- Growth in Funding FTEs -N 0'1 0'1 >~- ->-("\ 0'1 0'1 ~ "- ~ Proposed* o Remedial Ii Gifted Special Ed. o Labs Grades 9-12 II Grades 6-8 Grades 4-5 DGrades 1-3 Kindergarten FTEs Per Certificated Staff 15.8 15.6 ~ ~ 15.4 "'0 15.2 CI) ~ t) 15.0 .t;.:.::.:.: i 14.8 t) '"' 14.6 CpI.), <:I) 14.4 ~ ~ ~ 14.2 14~0 13.8 1991 1992 1993 1994 1995 1996 1997 1998 Fiscal Year 180 STATE BOARD OF EDUCATION Results-Based Budgeting Program Summaries STUDENT INSTRUCTION PURPOSE: To provide access to a high-quality public education to all Georgia students in grades kindergarten through 12. GOALS To provide state-level funding, administration, and technical assistance for the delivery of a high-quality basic public education to students in grades kindergarten through 12 in the areas of student instruction adopted by the State Board of Education. To provide an equitable public education fInance structure to insure that every Georgia student has an opportunity to receive a high-quality public education in grades kindergarten through 12, regardless of where the student lives. To directly operate state schools to provide a high-quality public education in grades kindergarten through 12 for those special populations of Georgia students who otherwise could not effectively and efficiently be served through their local public school system. CONTENT AND CURRICULUM PURPOSE: To assist local school systems in developing and implementing high-quality curricula and standards in those educational content areas necessary for a world class education. GOALS To establish and maintain statewide educational standards that insure that all Georgia students have access to a high-quality public education in grades kindergarten through 12 so that they can compete effectively in the larger world. To provide state-level technical assistance regarding instructional content and curriculum to insure that every Georgia public school student in grades kindergarten through 12 has access to current and relevant instruction, including the use of proven instructional innovations. STAFF DEVELOPMENT SERVICES PURPOSE: To improve the quality of public school instruction in Georgia through professional staff development and in-service training of teachers, school leadership, and other school staff. GOALS To provide state-level administration and technical assistance for professional staff development and support of local school leadership and teachers, including teachers new to the profession. To disseminate up-to-date information and technical assistance to local school systems, RESAs and other agencies in the area of professional staff development. 181 STATE BOARD OF EDUCATION--Results-Based Budgeting SPECIAL POPULATIONS PURPOSE: To assist in providing a high-quality public education to those special populations of students who would not receive such an education through the regular kindergarten through 12th ~ade program. GOALS To provide state-level funding, leadership, technical assistance, and administration for programs related to the education of special populations of students, which may include students requiring special education, gifted students, students needing remedial services, students guilty of serious disciplinary infractions, students whose primary language is not English, migrant students, and students at risk of school failure. To assist local school systems in interpreting and implementing federal, state and local guidelines for the delivery of instructional services to special populations of students, and to monitor local school systems to insure that they are in compliance with federal and state laws, regulations, and guidelines for serving special populations of students. To assist local school systems in identifying and determining the eligibility of students for special needs programs. To assist local school systems in delivering appropriate instructional materials and activities to special populations of Georgia students. To disseminate information and act as a clearinghouse for Georgia school systems, parents, and citizens regarding support services available to students with special needs. To act as a resource and liaison with other state, local and federal agencies on behalf of students with special needs, their parents, and local school systems where necessary and appropriate. To serve students with special needs in their own communities and homes where possible and appropriate. To provide technical assistance and professional training to teachers, administrators, and parents to assist them in educating students with special needs. To work collaboratively with other state agencies and programs serving special populations of students. To meet all state-level requirements necessary to insure the flow of federal education funds for special populations, and to insure that these federal funds are distributed appropriately and effectively to local school systems for their legal purposes. To assist local school systems in dealing with students who have committed serious disciplinary infractions in such a way that 1) allows the student to continue and improve his or her educational progress, and 2) protects the safety of other students and their rightto receive an education free of classroom disruptions. SUPPORT SERVICES PURPOSE: To support the academic instruction of Georgia public school students in grades kindergarten through 12 while protecting their health and safety through state assistance to local school systems in the provision of services necessary to support the instructional program -- these services may include facility design, construction, and maintenance; student transportation; food services; and other integral operations. GOALS To assist local school systems in providing appropriate school facilities in which quality educational programs may be offered, particularly in small and sparsely populated school systems which otherwise might have difficulty providing such services. To assist local school systems in developing and implementing a facility plan. To disburse capital outlay funds in an appropriate and effective manner, and to monitor local school systems' 182 STATE BOARD OF EDUCATION--Results-Based Budgeting compliance with federal and state laws, regulations, and guidelines relating to facility funding, construction, and maintenance. To assist local school systems with transportation planning, training, and funding to allow all students to attend school, and to travel to and from home safely and efficiently. To provide technical assistance, leadership, and training to local school systems in providing nutritious meals to students so as to enhance their learning; to assist local school systems in insuring that all students have access to nutritious meals during the school day, regardless of income. To provide leadership and assistance to local school systems in meeting federal and state guidelines for food programs and to insure that public resources are used in an effective and accountable manner; to meet all state-level requirements to insure the flow of federal school nutrition funds. SCHOOL IMPROVEMENT PURPOSE: To improve public education in grades kindergarten through 12 in Georgia through support and implementation of promising state and local education reform efforts. GOALS To provide local school systems with the incentives, resources, and technical assistance they need to plan and implement continuing improvements in their education programs. To act as a clearinghouse for information on proven educational reforms, and to promote and assist local schools and school systems in implementing such reforms. To assist local schools and school systems in using funds efficiently and effectively as part of a comprehensive school improvement plan and to use state funds efficiently and effectively to support the needs and educational activities of local schools and school systems. To be responsive to local schools and school systems regarding the type oftechnical assistance they desire for school improvement. RESEARCH AND ACCOUNTABILITY PURPOSE: To improve public education in grades kindergarten through 12 in Georgia by coordinating internal evaluation ofthe effectiveness of the Department of Education's programs and by collecting and publicly disseminating data on the effectiveness ofK-12 public education in Georgia including the statewide testing program. GOALS To improve decision-making by assessing the effectiveness of Department of Education programs through internal evaluations and/or external contracts. To receive the public's inquiries, concerns, and complaints about specific educational situations,circumstances, and decisions and to respond to them appropriately so as to promote understanding of educational practices. To manage the collection and dissemination of data relevant to the effectiveness and public accountability of state-level public education programs for grades kindergarten through 12 in Georgia. To manage the statewide testing program and to assist local schools and school systems regarding the testing program and the interpretation and use of test results. 183 STATE BOARD OF EDUCATION--Results-Based Budgeting TECHNOLOGY PURPOSE: To improve public education in grades kindergarten through 12 in Georgia by providing state-level guidance and support for the purchase and use of technology for classroom instruction, research, data collection, management, and professional staff development. GOALS To assist local schools and school systems in the choice, purchase, and use of appropriate technology to educate students and manage schools more effectively. To provide training to local schools and school systems using "state-of-the-art" equipment and educational software to assist educators in integrating technology into the curriculum and effectively utilizing technology available to them. To develop, implement, and revise an instructional technology plan for Georgia schools as needed. To manage collection of the official Student Record by local school systems and to assist local schools and school systems in collecting the necessary data for the Record. To manage collection from local schools and school systems of fmancial and accounting data necessary to insure accountable and effective use of state education funds. ATTACHED AGENCIES REGULATORY SERVICES PURPOSE: To license private child care facilities which operate pre-kindergarten programs and to administer the United States Department of Agriculture's Child and Adult Care Food Program (CACFP). (OCGA 20-1A-5) (Office of School Readiness) GOALS To insure that pre-kindergarten child care facilities provide high-quality care and services to the children and parents they serve and that the food programs in these facilities serve nutritious meals to the children they serve and operate in accord with federal requirements. PRE-KINDERGARTEN PROGRAM FOR FOUR-YEAR-OLDS PURPOSE: To provide a high-quality preschool educational program to four-year-old children in Georgia. (Office of School Readiness) GOALS To provide a high-quality preschool program that helps four-year-old children develop basic skills in six areas: language and literacy, math, art, science, physical and social development. To increase the academic success of children through participation in the Pre-Kindergarten Program. To increase school attendance through participation in the Pre-Kindergarten Program. To encourage and increase participation by parents of pre-kindergarten children in their child's education. 184 STATE BOARD OF EDUCATION--Results-Based Budgeting ENFORCEMENT OF PROFESSIONAL STANDARDS FOR GEORGIA EDUCATORS PURPOSE: To develop, adopt and enforce standards of competent professional performance and a Code of Ethics for educators. (Professional Practices Commission) GOALS To minimize incidents of ethical misconduct and substandard performance by Georgia educators in grades kindergarten through 12. To respond in an effective and timely manner to requests from local school districts arising out of the Fair Dismissal Law. To provide appropriate investigation and due process in cases of alleged misconduct by educators that are brought before the Commission. 185 STATE BOARD OF EDUCATION -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE AGENCY PROGRAMS 1. Student Instruction 2. Content and Curriculum 3. Staff Development Services 4. Special Populations 5 Support Services 6. School Improvement 7. Research and Accountability 2,548,209,560 2,513,551,516 7,462,707 4,731,003 38,945,427 38,836,363 972,508,332 757,492,454 757,442,761 540,620,947 83,137,554 81,444,849 6,992,792 6,963,075 2,657,536,210 2,622,878,166 7,505,879 4,774,175 40,184,626 40,075,562 1,042,944,178 829,507,780 670,369,682 453,547,868 89,359,219 87,666,514 7,005,549 6,975,832 8. Technology TOTAL 164,285,523 163,188,976 4,578,984,656 4,106,829,183 195,361,694 194,265,147 4,710,267,037 4,239,691,044 ATTACHED AGENCY PROGRAMS 1. Professional Practices Commission 1,386,797 1,342,339 1,436,142 1,391,684 2. Office of School Readiness 186,319,390 186,060,379 209,871,355 209,612,344 TOTAL 187,706,187 187,402,718 211,307,497 211,004,028 PASS-THROUGH FUNDING 1. Payments to DTAE 2. Chapter II - Block Grants 14,395,919 9,663,513 14,395,919 9,663,513 3. National Science Center Foundation TOTAL 350,000 24,409,432 350,000 350,000 350,000 24,409,432 350,000 350,000 TOTAL APPROPRIATIONS 4,791,100,275 4,294,581,901 4,945,983,966 4,451,045,072 186 EMPLOYEES' RETIREMENT SYSTEM Total Budgeted Positions as of October 1, 1996 -- 45 Board of Trustees I Administrative 6 Conducts classes for members in preparation for retirement...prints and distributes ERS publications . coordinates staff training . LAN administration. I Director 2 I Deputy Director 2 I I General Services/State Employees' Assurance Department 8 Performs mail and messenger services...maintains active and retired member files... administers group term life insurance for state employees. I Retirement Services 7 Calculates benefits for retiring state employees... answers correspondence pertaining to membership service, deaths, and other matters pertaining to the ERS law...counsels with members regarding benefits...makes estimates of benefit amounts ... calculates benefits for beneficiaries of deceased ERS retirees. PayrolllMembership - 8 Maintains controls on benefit and refund payrolls...calculates amounts of refunds of member contributions and interest.. .maintains member master files ... processes monthly member contributions and reports... updates and reconciles annually member contributions on master file. 187 Public School Employees Retirement System, Trial Judges' and Solicitors' Retirement Fund, Georgia Legislative Retirement System, Georgia Defined f---Contribution Plan, and Superior Court Judges' and District Attorneys' Retirement Systems 12 Calculates benefits for retiring members...answers correspondence pertaining to membership service, deaths and other matters...counsels with members regarding benefits...makes estimates of benefit amounts...calculates and processes refunds of member contributions and interest. EMPLOYEES' RETIREMENT SYSTEM Financial Summary Expenditures, Current Budget and Agency Requests , Budget C1asses/Fund Sources F.Y.1995 Expenditures Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Forfeited Leave - New Members 1,674,316 255,183 15,953 9,074 301,840 1,198,401 509,210 26,195 2,880,000 Total Funds 6,870,172 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 3,990,172 3,990,172 2,880,000 44 2 F.Y.1996 Expenditures 1,772,829 242,944 18,570 13,827 301,840 1,169,914 585,050 40,417 F.Y.1997 Current Bu~et 1,969,849 301,000 18,000 13,220 306,040 1,313,358 554,222 38,362 4,145,391 4,514,051 4,145,391 4,145,391 0 44 2 4,514,051 4,514,051 0 45 2 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 1,920,759 260,600 18,000 5,105 306,040 1,291,250 544,663 36,315 1,920,759 260,600 18,000 5,105 306,040 1,291,250 544,663 36,315 4,382,732 4,382,732 4,382,732 4,382,732 0 45 2 4,382,732 4,382,732 0 45 2 188 EMPLOYEES' RETIREMENT SYSTEM Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Aciiusted Base 1,988,220 301,000 18,000 13,220 306,040 1,313,358 554,222 38,362 4,532,422 Redirection Level Funds To Redirect Additions (67,461) (40,400) (8,115) (22,108) (9,559) (2,047) (149,690) Redirection Totals 1,920,759 260,600 18,000 5,105 306,040 1,291,250 544,663 36,315 4,382,732 Enhancements Totals 1,920,759 260,600 18,000 5,105 306,040 1,291,250 544,663 36,315 4,382,732 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 4,532,422 4,532,422 0 45 2 (149,690) (149,690) 0 4,382,732 4,382,732 0 45 2 4,382,732 4,382,732 0 45 2 RECOMMENDED APPROPRIATION: No state funds by direct appropriation are required to administer the Employees' Retirement System. Operation of the Employees' Retirement System is funded by investment earnings charged Pension Plans for which the System provides administrative services. 189 EMPLOYEES' RETIREMENT SYSTEM F.Y. 1998 Budget Summary ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 AGENCY FUNDS 1. Annualize the cost of the F.Y. 1997 salary adjustment. ADmSTED BASE REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce operating costs in various object classes. GOVERNOR'S RECOMMENDATIONS 4,514,051 18,371 4,532,422 (149,690) Total Funds to Redirect (149,690) TOTAL AGENCY FUNDS 4,382,732 190 EMPLOYEES' RETIREMENT SYSTEM Roles and Responsibilities By statute, the staff of the Employees' Retirement System of Georgia administers seven separate systems/programs: the Public School Employees' Retirement System, the Trial Judges and Solicitors Retirement Fund, the Legislative Retirement System, the Georgia Defmed Contribution Plan, the State Employees' Retirement System, group term life insurance by contract with the State Employees' Assurance Department, and Social Security contracts with political subdivisions. the Employees' Retirement System to provide group term life insurance for members of the Employees' Retirement System. GEORGIA LEGISLATIVE RETIREMENT SYSTEM AND DEFINED CONTRIBUTION These two plans are placed under the administration of the Board of Trustees of the Employees' Retirement System of Georgia. EMPLOYEES' RETIREMENT SYSTEM BOARD OF TRUSTEES The Board of Trustees consists of seven members as follows: the State Auditor, ex officio; the Director of the Office of Treasury and Fiscal Services, ex officio; the Commissioner of Personnel Administration, ex officio, one member appointed by the Governor; two members appointed by the first four members, (each of the two members have at least five years of creditable service with an agency included in the Employees' Retirement System of Georgia); and a seventh and remaining trustee who must not hold public office, not be a member of the retirement system and have at least 10 years of experience in the investment ofmoneys. This member is appointed by the first six members. Non ex officio members serve four-year terms. PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM The Board of Trustees consists of the seven Employees' Retirement System trustees plus two additional members appointed by the Governor for four-year terms. TRIAL JUDGES AND SOLICITORS RETIREMENT FUND The Board of Trustees consists of the seven Employees' Retirement System and three additional members appointed by the Governor as follows: one state court judge; one state court solicitor; and one juvenile court judge. These appointments are for four-year terms. STATE EMPLOYEES' ASSURANCE DEPARTMENT The Board of Directors consists of the Director of the Office of Treasury and Fiscal Services, the Commissioner of Labor, the State Auditor, the Commissioner of Personnel Administration and two members appointed by the Governor. The State Employees' Assurance Department contracts with SOCIAL SECURITY COVERAGE FOR EMPLOYEES OF TIlE STATE AND POLITICAL SUBDIVISIONS OF THE STATE In 1956, state legislation was enacted that designated the Employees'Retirement System of Georgia as the "state agency," authorized to enter, on behalf of the state, into an agreement with the Secretary of Health and Human Services to extend the benefits of the federal old-age, survivors, and disability insurance system to the employees of the political subdivisions of the state. PUBLIC RETIREMENT SYSTEM STANDARDS In 1983, legislation was enacted that defined funding standards, assured the actuarial soundness of any retirement or pension system supported wholly or partially from public funds, and established legislative control procedures to prevent the passage of retirement legislation without concurrent funding in accordance with defined funding standards. OTHER By contract with the Department of Administrative Services, the Employees' Retirement System makes retirement benefit payments to members and beneficiaries of the four following funds: Superior Court Judges Retirement Fund of Georgia; Senior Judges (Emeritus). Superior Court Judges Retirement Fund of Georgia; Senior Judges. District Attorneys Emeritus and the District Attorneys Retirement Fund of Georgia. District Attorneys' Retirement System. AUTHORITY Title 47, Chapters 2, 4, 6, 8, 9, 10, 12, 13, 18, 19 & 22. 191 EMPLOYEES' RETIREMENT SYSTEM Strategies and Services ADMINISTRATION As indicated on the Roles and Responsibilities page, staff of the Employees' Retirement System (ERS) has administrative responsibility for seven plans/programs. Included are the group term insurance program for members of the ERS; the Georgia Defined Contribution Plan for part-time, temporary and seasonal employees; maintenance of agreements with the Federal Secretary of Health and Human Services which enables employees of the state and its political subdivisions to be covered by the Social Security System; and eight separate retirement fimds. EDUCATIONAL PROGRAMS Since 1970, ERS has offered a PreRetirement Program in the Atlanta area for prospective retirees ofERS. who are within five years of retirement eligibility. In recent years the program was expanded. The programs are now called SERIES I, SERIES II, and SERIES III. With this expansion, ERS now offers educational planning for all members of the system. The seminars provide exploration and discussion of topics such as retirement, Social Security, Medicare, health insurance, estate planning and wills. Classes are coordinated by ERS staff with the assistance of outside resources. GROUP TERM LIFE INSURANCE By contract with the State Employees' Assurance Department, the ERS provides group term life insurance to members of the ERS. Upon employment, a system member receives insurance coverage equal to 18 times current monthly compensation. For most system members, the amount of insurance coverage is frozen at age 60 and decreases one percent a month until age 65. At age 65, coverage is fixed at 40 percent of the age 60 amount. For Employees'Retirement System members hired on or after July 1, 1982, "new plan members", employee premiwns are onefourth of a percent of monthly salary and the state contributes one-fourth of a percent. For System members hired before July 1, 1982, "old plan members", employee premiums are one-half of a percent, half of which is contributed by the state on behalf of the employee. The actuarial report on valuation of the Georgia Employees' Group Term Life Insurance Plan as of June 30, 1995, provided the information on membership coverage and plan assets. (See table.) MEMBERSHIP Total membership in the eight plans, including all three categories of active, retired, and inactive was 259,02las of June 30, 1996. An 192 EMPLOYEES' RETIREMENT SYSTEM -- Strategies and Services additional 86,262 were members of the Defined Contribution Plan as of June 30, 1996. The ERS estimates that approximately two-thirds of its annual operating budget is required to provide accounting for all active and inactive members, including the processing of refunds and monthly benefit payments due to terminated and retired members. (See table.) INVESTMENTS The ERS has its own "in-house" Investment Services Division which handles the day-to-day investment transactions with advice from five outside advisors. Five members of the ERS Board of Trustees along with the Executive Secretary comprise the Investment Committee. Investment recommendations made by the Investment Committee require approval by the entire ERS Board of Trustees. (See table.) 1982 AMENDMENT EMPLOYEES' RETIREMENT SYSTEM In 1982, the ERS of Georgia Act was amended to assure future actuarial soundness. Members employed on or after July 1, 1982, are referred to as "new plan members." Members joining the ERS prior to July 1, 1982, are referred to as "old plan members." Approximately 70 percent of the ERS members have joined under the new plan provisions. A primary difference beween the old plan and new plan provisions is in benefits. The "benefits formula factor" in the old plan allows for a range with a minimum of 1.45 percent up to a maximum of2.2 percent for 35 or more years of creditable ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::;,. " A E~ RSh~rfiJr.~lsIt~f~u~~lIl;il.i~~~....................... i ii : :::: ~ ::::::::::jjjjjjjjjjjjjjjjjjjj::j:::::j:jj:jj:jjj:jjjjjjjjjjjjjjjjjj jjjjjjjj j jjjj::j::j:;. :;:::::::: :::::::::::: j : j : j j j j j j ~ : j j j j : j : : : : : : : : : : : : :: : : : : .B~k-Yatl4~:.. .......... .~mp18y~s,'R~~#-~m~~ty~t#t# . $6,OQ9,427,OOO PQbliC ShlEiriplQye.s'Re.lli"riirits-ystm $s7Lz97,dbd 'fila! J~4ge$ Wt~ ~blt~~ipt$ :R.etitCtXie~t~U#4 S28,'726,dbQ . p~tricf AttbT#~' . . .. I$$1II~11giPPs~~l~~atrrivGq~<(>R)~~eJltlillii'dedgtXgeesislet~tjeettI$ilyl~l"teeeItt1XXtii:eFt.jIt:SIyI.s.ltleft.X.i..................'....$$61.$43.6.',.S5. ,9. .91.2. 93'0. .',.0'0. '0. .0000'0. .... .EIllPlqye~s'orQlIP'I'R~ieItilileLhi1fetf:uItr$l.y~s~f9e~Il~'lJilIJj ..........................$..$3..71..7.9....".32. '.95.18..:,.0...0. b~:fih~cl.()ritJ:i;i:hfuQtiPl8h . ........ $17;31$);000 : :::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::;::::;:::::::::::::::::::::: ::::::::: :::::::::::::::::::::::::::::::::::::::::::::::: : :::::::::::::::::::::::::::::::::::::::::"::::::::':::::::::::::::::::::::::::::::::::::::::::::::: ::::::::: :::::::::::::::::::::::::::::::::::::::::::::::: .M~~k~tV~~~~ . ~ifiplqy~$lf{~titet#$t $y~tCtXi ~7,413,6~t,O()ffi T1>r*iabl1JiucdSg~eh~Po~t~$i$i~ltpilcioiyoersesR:etliti~eI~le'tltiftuSi~yUs1tI~~ H/ '$ $4~752:51~4~6:0OP0P0 . 'l,eiistlltlV~ R~tiieh1~ $yst~Il'l ............ $1~,27'7,()o() . pI>~()r?tJ#A~~~*~m-~m#I~~yS,t~m .. ~'7~,1)1,qq() Dp1S3ilte$irpntinpfliitick.biql~yCreJ~CO\sP#\rpQli.tlmtJr.~:i(tyb))@$tiii'tpig'Rof~neitiiPRtiAltJllcUtii:iimC.f'~e~tit1Ii$lYl$:$1t~itcfFmal.hir.icl.:~i;Plan.........$4$~71$~1O1j[.:7103o3P1d175[:d000b00qd00q !!!!!!i!i!iii!!!!!!!!!!!!!!!!!!!!!!!!!!!!!i!!!!!!!!!!!iii!!!!! iii!!! :::::::::::::;:::;::::::..::::::.:.:.:.:.;.-.:""::::::,"::.:.:":.:,:::::::::::::.:.:.::::::::::::::::::::::::::::::::::::::::::::::..:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:.:::..::::.::' :..;:;;:::',. service. The"benefit formula factor" in the new plan allows for a fixed percent factor of 1.64 percentage regardless of the number of years of creditable service. A minimum of 1 years of creditable service is required under either plan. SOCIAL SECURITY PROGRAM STATE AGREEMENT The ERS is authorized to enter, on behalf of the state and the political subdivisions of the state, an agreement with the secretary of health and human services that extends benefits of the federal old-age, survivors and disability insurance system to employees of the state and political subdivisions of the state. There are over 2,000 political subdivisions (authorities, school boards and local governments). The majority of these are covered by the state agreement and their employees have Social Security benefits. The main activity in this program involved political subdivisions joining the state agreement. 193 EMPLOYEES RETIREMENT SYSTEM OF GEORGIA Results-Based Budgeting Program Summaries RETIREMENT SYSTEM ADMINISTRATION PURPOSE: Implement applicable laws, rules and regulations, and policies as established by the particular Boards of Trustees in connection with the retirement systems administered by the Employees' Retirement System of Georgia, including the State Employees Assurance Department, providing all personnel in covered positions and their families retirement benefits relative to their service and compensation in the event of their retirement, death or disability. GOALS Soundly invest retirement funds to insure adequate financing for future benefits due and other obligations of the system. Provide statewide counseling services for system members. Accurately account for the status and contributions of all active and inactive members. Process monthly benefits due retired members. Process refunds due terminated members. Provide life insurance coverage for active and retired members. 194 EMPLOYEES' RETIREMENT SYSTEM -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE AGENCY PROGRAMS 1. Retirement System Administration 4,514,051 4,514,051 4,382,732 4,382,732 TOTAL APPROPRIATIONS 4,514,051 4,514,051 4,382,732 4,382,732 195 STATE FORESTRY COMMISSION Total Budgeted Positions as of October 1, 1996 -- 800 Herty Foundation State Forestry ..... --_................. Commission 58 , Attached for Administra- tive Purposes Only Director I Deputy Director 2 I I General Administration and Support Division I Administration and Accounting Section 34 Performs internal administrative functions...provides personnet functions. Forest Utilization and Marketing Section 3 Encourages efficient utilization of wood in manufacturing process and recycling of wood ...promotes Georgia's forest products. I Forest Education Section 10 Provides leadership in forest education and fire prevention. I I Seedling Production 20 Plants, cultivates and sells forest tree seedlings. Reforestation Division I Tree Improvement 2 Establishes and maintains genetically improved seed orchards. I I Forest Management 13 Provides field management services to land owners. Field Services Division Forest Protection Department 36 Supports Field Services. I I Field Services 679 Provides fire protection and forest management assistance. 196 STATE FORESTRY COMMISSION RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 DECREASE OVER F.Y. 1997 BUDGET , REDIRECTION LEVEL " $34,816,361 $627,009 $34,816,361 HIGHLIGHTS $394,834 to assume the costs of conducting the Forestry level over a five-year interval. This will be equivalent to a Inventory Analysis. The Forestry Inventory Analysis is a 100% inventory on a five-year interval. comprehensive compilation of forest statistics and other data providing vital information about forest resources, health and $631,695 to purchase fifteen "Quick Response" trucks and productivity levels. Historically, the analysis has been provide operating expenses for the new Wildland/Urban conducted every ten years by the U.S. Forest Service. Recent Interface Program. These "Quick Response" trucks will make federal budget reductions have made it apparent that the U.S. it easier to suppress fires in forested areas that contain homes Forest Service will no longer collect the data, but will continue and other structures. Additionally, these trucks provide for more to analyze all data. efficient extinguishment and mop up of forest fires as well as With the forestry industry contributing more than $16 billion utilize environmentally acceptable tactics. Each truck weighs to the state economy, the availability of the Forest Inventory approximately one ton and will be fabricated by existing Analysis data is necessary to make accurate projections for personnel from the commission's Rural Fire Defense program. future forest products development opportunities. Industry finds the Forest Inventory useful and would like to have the $40,000 tQ fund two research proposals related to traditional survey done on a more frequent basis. industries. Ifsuccessful, the research conducted in the proposals The Forestry Commission proposes to take over the data will have positive implications for future timber supply for both collection for the Forestry Inventory Analysis and conduct the the paper products industry and solid wood products inventory analysis on a more frequent basis. Eleven positions manufacturers in the state. will be needed to conduct this analysis. The commission proposes to collect the data at the 20 percent per year sample $469,980 is redirected as a result of a realignment of fire control responsibilities in the metro Atlanta area. Fifteen positions will be abolished and fire protection will no longer be provided by the commission to Fulton, DeKalb and Douglas Counties. These counties have Average Fire Size for Southeastern States (1991 - 1995) signed contractual agreements with the commission to provide their own fire protection. Additionally, Gwinnett, Fayette 30 29.02 and Clayton Counties will have their fire protection provided by surrounding 25 23.93 commission district offices. Specifically, the Gainesville and Athens district offices will 20 I11.71 provide fire protection for Gwinnett County and the Newnan district offices will provide fire protection for Fayette and Clayton Counties. The highly urbanized character of the metro Atlanta area does not warrant 10 wildland fire. control measures as do more rural counties. 5 o Ga NCar S Car Ala Tenn Miss Fla Ken 197 STATE FORESTRY COMMISSION Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Ware County Grant for Road Maintenance Ware County Tax for Southern Forest World Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 29,065,504 7,664,195 161,470 1,343,444 1,484,709 55,914 1,380,105 405,504 937,673 260,229 60,000 30,000 F.Y.1996 Expenditures 29,203,482 7,051,967 259,203 1,281,727 1,765,859 53,757 1,139,500 533,891 1,001,588 308,377 60,000 F.Y.1997 Current Budget 29,325,553 5,643,951 159,937 921,785 1,580,419 54,764 1,094,798 310,500 928,106 241,752 60,000 30,000 28,500 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 28,056,823 5,729,207 161,926 1,371,785 1,688,518 21,420 1,345,103 323,000 925,319 241,752 60,000 28,056,823 5,729,207 161,926 1,371,785 1,688,518 21,420 1,345,103 323,000 925,319 241,752 60,000 28,500 28,500 42,848,747 42,689,351 40,350,065 39,953,353 39,953,353 (6,824,985) 13,724,654 6,899,669 35,949,078 802 754 2,298,156 5,098,046 7,396,202 35,293,149 803 756 822,000 4,084,695 4,906,695 35,443,370 774 746 822,000 4,084,695 4,906,695 35,046,658 742 741 822,000 4,084,695 4,906,695 35,046,658 742 741 198 Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Ware County Grant for Road Maintenance Ware County Tax for Southern Forest World Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles STATE FORESTRY COMMISSION Financial Summary F.Y.1998 Governor's Recommendations Adjusted Base 29,381,190 5,658,891 159,937 921,785 1,598,518 21,420 1,095,103 310,500 928,106 241,752 60,000 28,500 Redirection Level Funds To Redirect Additions (1,731,298) (40,179) (3,111) 358,434 110,495 5,100 450,000 90,000 28,200 (2,787) 40,000 12,500 Redirection Totals 28,008,326 5,729,207 161,926 1,371,785 1,688,518 21,420 1,163,303 323,000 925,319 241,752 60,000 28,500 Enhancements 40,405,702 (1,749,175) 1,066,529 39,723,056 822,000 4,084,695 4,906,695 35,499,007 774 746 (1,749,175) (43) (20) 1,066,529 11 15 822,000 4,084,695 4,906,695 34,816,361 742 741 Totals 28,008,326 5,729,207 161,926 1,371,785 1,688,518 21,420 1,163,303 323,000 925,319 241,752 60,000 28,500 39,723,056 822,000 4,084,695 4,906,695 34,816,361 742 741 199 STATE FORESTRY COMMISSION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustments. 2. Reflect a decrease in rates for personal liability ($21,663), unemployment insurance ($15,201), worker's compensation ($58,815), and merit system assessments ($599). 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a decrease in the merit system assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 35,443,370 200,412 (96,278) (14,996) (33,501) ADJUSTED BASE 35,499,007 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Abolish one nursery coordinator position in the Reforestation Division. 2. Abolish 39 positions ($1,556,776) and related costs ($46,077) in the Field Services Division but add $28,200 in contract costs associated with having Fulton, Douglas and DeKalb counties provide fIre protection service. 3. Abolish one accounting technician position ($39,202), one forester position ($32,531), and one administrative secretary position ($46,103) in the General Services Administration Division. Total Funds to Redirect ADDITIONS I. Assume the responsibility and costs of conducting the U.S. Forest Service Forestry Inventory Analysis every fIve years. Eleven positions ($358,434) and associated operating expenses ($36,400) will be needed to assume this new responsibility. 2. Provide funds for 15 trucks ($450,000) and operating expenses ($181,695) for a new Wildland Urban Interface Program that improve fIre protection services. 3. Fund two research proposals related to forest management that benefIt the pulp and paper and forest products industries. Total Additions TOTAL REDIRECTION LEVEL TOTAL STATE FUNDS (56,686) (1,574,653) (117,836) (1,749,175) 394,834 631,695 40,000 1,066,529 34,816,361 34,816,361 200 STATE FORESTRY COMMISSION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS 1. Reforestation 2. Field Services 3. General Administration and Support TOTAL APPROPRlATIONS TOTAL 1,843,044 34,489,238 4,017,783 40,350,065 STATE 52,726 31,541,016 3,849,628 35,443,370 TOTAL 1,790,926 34,009,003 3,923,127 39,723,056 STATE 608 31,060,781 3,754,972 34,816,361 RECOMMENDED APPROPRIATION: The State Forestry Commission is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $34,816,361. 201 STATE FORESTRY COMMISSION Roles and Responsibilities The State Forestry Commission is responsible for the perpetuation of Georgia's public and private forest resources by furnishing forest tree seedlings, protecting the forest through fire and distlase control, managing and utilizing forest products and providing educational programs in forested areas. At the same time, the commission strives to emphasize the environmental and economic value of this renewable resource--the state's forests. Forestry contributes $16.4 billion to the economy and provides more than 144,000 jobs in Georgia. The Forestry Commissi9n protects and manages Georgia's 24 million acres of forest land, which represents an approximate $36 billion asset. The Forestry Commission as a budget unit includes three divisions: Reforestation. Field Services. General Administration and Support. The Forestry Commission provides a wide variety of services to the rural forest landowner and offers technical assistance to landowners in urban areas. FOREST PROTECTION AND MANAGEMENT Forest Protection, the primary functions of the Forestry Commission, includes a statewide network ofcounty and district offices adequately supplied with manpower and equipment necessary for the suppression of Georgia's more than 9,000 amiual wildfires. The basic fire suppression function includes the prompt detection and reporting of fires. This is followed by a powerful initial attack with trained firefighters operating crawler tractor-plow units and water trucks. The effectiveness of the Forest Protection program is a direct result of properly maintained equipment that can be quickly mobilized at the early phases of a forest fire. The average size fire in Georgia is four acres while the average for the southern region is 13 acres and the national average is 42 acres. The Rural Fire Defense program is the most valu~ble forest protection community outreach program offered by the Forestry .Commission. Since the early 1970s, the program has provided community fire departments statewide with more than 1,000 low cost/lease fire trucks. The commission also provides assistance with training and operations for local fire departments statewide. In the area of Forest Management, the commission provides technical assistance to private and industrial landowners. Some of the services provided include forest stewardship; forest health monitoring (insect and disease surveys and eradication); promotion of forest water quality; education and compliance surveys; and promotion of sound forestry practices. Other services include management of four state-owned and two non-state-owned forests using forest stewardship principles and field staff support. REFORESTATION The role of the Reforestation Division is to provide high quality, genetically superior forest tree seedlings to the citizens of Georgia at a reasonable price without cost to the taxpayer. Reforestation efforts are accomplished through the commission's tree improvement and seedling producing program, its intensively managed seed orchards, its low-cost seed cleaning and conditioning plant and its two tree seedling nurseries. EDUCATION AND URBAN FORESTRY The Education and Urban Forestry program involves educational programs (Le., Smoky Bear Fire Prevention) in all media areas to make the citizens of Georgia aware of the importance of their forest resources. Professional urban foresters provide educational materials and urban forestry assistance on a variety oftopics. This division of the Forestry Commission also administers federal and state urban grants to communities in Georgia. UTILIZATION, MARKETING AND DEVELOPMENT The commission provides technical assistance to Georgia's small to medium forest product companies in the area of wood utilization (fiber supply and recycling of wood products) to ensure that these industries remain a strong and stable force in the state and local economy. The commission also provides input about fiber supply to the Georgia Pulp and Paper Initiative. ATTACHED AGENCY The Herty Foundation supports Georgia's pulp and paper industry by providing research and product development opportunities to manufacturers at its facility in Savannah. This support consists of providing laboratory services and several pilot scale production paper machines to allow Georgia's pulp and paper manufacturers to conduct research, develop new products or improve their existing products. AUTHORITY Title 12-6 of the Official Code of Georgia Annotated. 202 STATE FORESTRY COMMISSION Strategies and Services The protection, regeneration and effective management of Georgia's forests ensure the vigorous development and growth of an important element of Georgia's economy - an element that has a significant impact on every region of the state. Through the combined efforts of reforestation, forest protection and management and forest utilization programs, the Georgia Forestry Commission continues to provide an invaluable service to all the state's forest related industries while saving landowners millions of dollars each year. Georgia has continued to plant more trees each year than any other state in the nation and has the best fire control record in the southeast- a five year (1991-95) average occurrence of7,763 fires burning an average 3.58 acres. The commission's programs are focused on protecting 24 million acres offorest land that represents a $36 billion dollar asset to the state. The following description provides an overview of how the Forestry Commission is able to play such a significant role as steward ofour forests. FIRE PROTECTION Fire control is administered through a network of approximately 134 county offices and 12 district offices. Beginning in F.Y. 1998, the commission will no longer provide wildland fire protection to DeKalb, Douglas and Fulton Counties. Instead, those counties have entered a contractual agreement with the commission to provide their own fire protection via their own fire delivery systems. Additionally, commission fire protection in Clayton and Fayette Counties will be covered by the commission's Newnan District office. Operations in Gwinnett County will be covered by the commission's Gainesville and Athens District offices. This consolidation and devolution of fire protection services save the commission over $469,980 in state funds. Fire suppression equipment, vital to the Forestry Commission's operations, consists mainly of 349 tractor-plow bulldozers with accompanying transport trucks and trailers. Fire detection and suppression are supplemented with the use of 18 state owned and 12 contract single engine airplanes and three UH-IH helicopters acquired through the Federal Excess Property Program at no cost to the state. Fire suppression equipment is used to plow approximately 16,000 miles oflandowner requested firebreaks each year. Continued improvements in response time and suppression capability, as well as advances in technology, are critical to the operation ofthe fire protection program. In F.Y. 1997, the commission began utilizing Global Positioning System (GPS) receivers to help accurately map the location of fires that were detected via aircraft. The use of this technology as well as continued improvements in response time and suppression capability assist commission staffwith successfully providing fire protection to the landowners in the state. Current statistics indicate that Georgia's rural population is expanding. The intermingling of houses with forest lands that are susceptible to fire requires the commission to seek changes to traditional firefighting strategy and tactics. For F.Y. 1998, the commission has requested and the Governor has recommended $631,695 to purchase fifteen one ton fire trucks for a new WildlandlUrban Interface Program. These "Quick Response" fire trucks will give the commission the ability to operate effectively in and around the increasing number of homes situated in wildland settings. REFORESTATION The Forestry Commission's seed orchards provide a reliable source of seeds and opportunity to exploit the genetic potential ofthe state's forests. In pine trees alone, tree improvement efforts have reduced unwanted occurrences of infection and improved growth rates by 10 to 15 percent. A 10 percent increase in volume growth per acre will translate to a dollar value increase of$56.8 million. Through the Flint River and Walker nurseries, the commission offers approximately 50 million tree seedlings, primarily southern pines with some hardwood species, for sale to Georgia landowners in an effort to encourage reforestation. These seedlings reforest approximately 71,000 acres each year, helping to reduce the gap between acres harvested and regenerated, while at the same time providing wildlife food and habitat, preventing soil erosion, and enhancing urban or rural aesthetics. The value of these trees at rotation age will exceed $228 million. FOREST MANAGEMENT Programs and services offered to private landowners in the Forest Management Program include reforestation, site preparation, forest management plans, timber marking, forester referrals, insect and disease detection, timber stand improvement, natural regeneration, and marketing of forest products. Through forest stewardship, the commission encourages and enables non-industrial private landowners to practice better stewardship of their woodlands, including timber, wildlife, soil, water, historic, scenic and recreational resources. Many of the federal government's forest management programs, such as the stewardship program, are available to landowners through the State Forestry Commission. As funding for federal programs decline, the Forestry Commission will explore options for the state to use in protecting and effectively managing the state's forest resources. In addition to these services, the Dixon Memorial, Baldwin, and'Alamo State Forests, along with the Gracewood, Dawson and Paulding Forests are managed by the Georgia Forestry Commission. Through management of the state's forests, the commission promotes multiple resource management 203 STATE FORESTRY COMMISSION -- Strategies and Services and environmental awareness in the areas of timber, soil, water, wildlife, recreation and aesthetics. UTILIZATION, MARKETING, AND DEVELOPMENT The forest utilization efforts ofthe commission include providing technical assistance to the forestry community of wood manufacturers, contractors, banks, entrepreneurs and other state agencies to ensure an efficient, sustainable, productive forest resource that will provide job creation opportunities for Georgians. These services range from encouraging efficient use ofwood in the manufacturing process, providing information on recycling of wood and wood products, collecting and analyzing marketing and resource data and expanding markets for Georgia's forest products. The Forest Inventory Analysis is a comprehensive compilation of forest statistics and other data providing vital information about forest resources, forest health and forest productivity levels. Historically, the data has been collected by field crews ofthe U.S. Forest Service on approximately a ten year cycle. Budget reductions in the U.S. Forest Service has placed the program in jeopardy. With forestry being one ofthe largest industries in the state, contributing over $16 billion to the economy, the commission at the urging of landowners and forest products industries felt it necessary to request funding to assume the responsibility for collecting data for the inventory. For F.Y. 1998, the Governor has recommended $394,834 for the program. Funding will allow the commission to collect the data at five year cycles rather than the current seven to ten year cycle conducted by the U.S. Forest Service. BERTY FOUNDATION The Herty Foundation's mission is to enhance the competitiveness of Georgia's and the nation's pulp and paper industry through the Herty Research and Development Center in Savannah. This facility supports industry by providing quality, flexible responses to development trials, accurate laboratory testing services and rapid answers to product and process development problems in a pilot plant setting that protects and ensures the confidentiality ofthe work beiitg done. It is the largest facility of its kind in the United States. The Herty Foundation conducts a broad range of laboratory tests and experiments, and provides pilot scale production runs at its facility in Savannah for Georgia's and the nation's pulp, paper, and fiber producing companies. This public-private partnership started in 1939 when the Georgia General Assembly created the Herty Foundation to enhance research and development for all fibrous materials. Since 1989, this partnership has invested over $29 million in a new state-of-the-art facility and equipment to create the largest independent pulp and paper research and development center of its kind in the United States. As a result ofthis investment, Herty enjoys a national reputation and is frequently asked to participate in national studies. Herty primarily supports Georgia manufacturers through research and development in fiber supply, specifically in raw material evaluation, alternative agricultural fiber, wood chip quality improvement and pulping modification to increase yield. In addition to fiber supply projects, Georgia manufacturers also use Herty for environmental and recycling research. Some of Herty's projects have been funded through the Pulp and Paper Consortium, a group created by the Governor's Traditional Industries Program and functioning under Herty's leadership. Finally, since the pulp and paper industry is the most capital-intensive of all industries, many companies cannot afford their own pilot equipment. Therefore, use of Herty's pilot equipment constitutes a substantial saving for companies that would otherwise have to interrupt their forprofit production runs. Georgia's pulp and paper mills produce in excess of seven million tons ofpaper products per year and have an $8 billion impact on Georgia's economy. 204 STATE FORESTRY COMMISSION Results-Based Budgeting Program Summaries REFORESTATION PURPOSE: Develop genetically improved sources of southern pine seedlings appropriate for planting in Georgia in order to increase the productivity of Georgia's forests. Provide high quality seedlings for Georgia forest landowners at a reasonable cost. GOALS Improve the productivity of Georgia's non-industrial private forests by increasing the growth potential of seedlings available through Georgia Forestry Commission nurseries. Maintain seed orchards and seed production areas and efficiently clean and condition seed collected to support Georgia Forestry Commission nurseries. Enhance the commercial forests of Georgia by providing genetically improved slash and loblolly seedlings for the diverse geographic planting regions in Georgia. Increase supply of rust resistant slash and loblolly seedlings for high rust hazard sites in Georgia. Provide high quality minor pine species and hardwood seedlings for Georgia landowners. FOREST MANAGEMENT TECHNICAL SUPPORT PURPOSE: Protect, manage and harvest Georgia's twenty-three million acres of forest land in a manner that is sensitive to the environment and promotes clean air and water. GOALS Improve the productivity of Georgia's pdvate forests through technical assistance to private and industrial forest landowners. Promote multiple use management through forest stewardship on both private and public lands. FOREST PROTECTION PURPOSE: Continue to maintain the state's leadership role in fire prevention, detection and suppression and to be recognized for providing forest protection services to the citizens of Georgia. GOALS Limit the amount of fire damage to Georgia's forests through rapid response to fires. Keep Georgia the leading state in the southeast in controlling and limiting fire damage. Increase service to landowners. Diversify equipment and training to handle the special situations ofthe wildland/urban interface brought on by Georgia's expanding population. 205 STATE FORESTRY COMMISSION -- Results-Based Budgeting RURAL FIRE DEFENSE PURPOSE: ~upport the Georgia Forestry Commission's mandate of protecting lives and property from the destruction and damage caused by forest fires through support of local fire defense efforts. GOALS Provide dependable firefighting equipment to internal/external customers at minimum cost. Provide technical assistance to groups and individuals in order to mitigate wildland/urban interface fire problems statewide. Monitor and maintain backup force of manpower and equipment for use in extreme fire emergencies. FORESTS PRODUCTS UTILIZATION, MARKETING AND DEVELOPMENT PURPOSE: Maintain and enhance the sustainable development of the state's 23+ million-acre forest resource. GOALS Provide technical forestry assistance to Georgia's forest product industries. Maintain and periodically update listing of forest product firms. Provide current forest inventory analysis data to users. Create an awareness ofthe state's forest products industry and products manufactured to further the development of Georgia's economy, especially in rural areas. CONSERVATION EDUCATION PURPOSE: Provide information and conservation education to Georgia's residents with particular emphasis directed at young students. GOALS Increase public knowledge about the environment and forests of Georgia. Inform Georgia citizens of the worth of forests to Georgia's environment and economy. Work all avenues of media to get the conservation message across. URBAN AND COMMUNITY FORESTRY PURPOSE: Provide forestry leadership, technical advice and financial assistance to communities. GOALS Increase the capacity of local governments, non-profit organizations and the private sector to create and implement local programs that will sustain and improve community natural resources. Encourage citizens to become actively involved in the management and protection of their urban and community natural resources. Provide education and training for the urban forestry community. Encourage protection of urban forest watersheds. Increase understanding of the economic and environmental benefits of tree management, and issues of urbanirural interface. 206 STATE FORESTRY COMMISSION -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE AGENCY PROGRAMS 1. Reforestation 2. Forest Management Technical Support 3. Forest Protection 1,992,083 7,397,002 28,945,973 127,911 6,151,992 27,513,476 4. Rural Fire Defense 5. Forests Products Utilization, Marketing and Development 6. Conservation Education 7. Urban and Community Forestry 652,634 462,193 551,812 348,368 287,618 462,193 551,812 348,368 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 1,888,250 7,282,297 28,554,839 653,740 453,710 24,078 6,037,287 27,122,342 288,724 453,710 538,010 352,210 538,010 352,210 TOTAL APPROPRIATIONS 40,350,065 35,443,370 39,723,056 34,816,361 207 GEORGIA BUREAU OF INVESTIGATION Total Budgeted Positions as of October 1, 1996 -- 728 Board of Public Safety . I .Director 2 Executive Assistant Director 2 Assists GBI Director in managing all functions of the organization. I Georgia Crime Information Center 134 Investigative Division 400 Administration Staff 35 Performs fiscal, personnel, supply and training functions for the Bureau...conducts internal investigations and legislative liaison. I Division of Forensic Sciences 155 Collects fingerprints for criminal identification and disseminates criminal history information to authorized recipients... maintains the computerized uniform crime reporting system...operates the statewide Criminal Justice Information System Network... conducts training and compliance audits on a statewide basis...operates and maintains an instant gun check program for the state. Assists local law enforcement agencies in the investigation of crimes upon requests...conducts investigations against organized criminal groups... assists local law enforcement by providing expert crime scene investigations...monitors terrorist groups regulates and licenses bingo collects criminal data...conducts background investigations... conducts investigations concerning the smuggling of drugs into Georgia...assists local agencies by conducting street level undercover investigations...purchases drugs and makes buyslbusts from major violators...coordinates activities of Governor's Strike Force for Drug Suppression... investigates clandestine laboratories which manufacture illicit drugs...conducts long-term conspiracy investigations into major drug cartels ... maintains liaison with federal drug agencies to compile intelligence information. Conducts the following services for law enforcement agencies statewide: firearms identification, criminalistics, photographics, drug identification, questioned documents, blood alcohol, serology, DNA, toxicology, medical examiner and fingerprint identification... testifies as to test results in court ...reports scientific conclusions on evidence examined. 208 GEORGIA BUREAU OF INVESTIGATION RECOMlYlENDED STATE APPROPRIATIONS FORF.Y. 1998 INCREASE OVERF.Y. 1997 BUDGET REDIRECTION LEVEL $46,813,458 $194,135 $46,813,458 HIGHLIGHTS $161,000 in net new dollars to expand the Crime Laboratory DNA profile database on sexual assault cases to include cases with suspects and cases without suspects. Currently, DNA is only processed on sexual assault cases with a suspect. For the program to be effective, DNA should be tested on all sexual assault cases and the database searched. This additional search ofthe database will assist in identifying suspects in cases where investigators have few leads. The F. Y. 1998 recommendation will provide for four scientists and related expenses. Including current fimds that are being directed, the total fimding for this program will be $325,000. $128,700 to add one project manager and related expenses to the Georgia Crime Information Center to establish a statewide registry of violent sexual offenders in order to notify local authorities when offenders will be released from prison. The GEl is required to create a data file of offenders identification, planned residences and nature of offenses as provided by the Department of Corrections and the Courts. $197,000 to add four scientists and two clerk/transcribers for the Crime Laboratories statewide to reduce a backlog in crime analysis and to assist with an increased number of cases each year. $645,000 in bonds to construct a new facility in Macon to provide medical examiner services to Middle Georgia. .The facility will be adjacent to the existing Macon Branch Crime Laboratory and will contain a morgue/autopsy area and associated medical examiner office space. Medical examiner services will now be offered at four locations: Macon, Moultrie, Summerville and Atlanta. $3.2 million in bonds to construct a new laboratory to replace the existing Columbus Branch Crime Laboratory. The 13,000 sq. ft. building will provide for adequate working conditions to accommodate the current staff and an increasing workload. State Funds Increase for Georgia Bureau of Investigation (F.Y. 98 includes bond proceeds) $ Millions 46.6 46.6 47.1 42 ILilI III:.---;? 92 93 94 95 96 97 98 Fiscal Years 209 GEORGIA BUREAU OF INVESTIGATION Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Ouday Evidence Purchase Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 32,142,249 4,022,580 754,718 1,964,685 2,174,879 2,077,485 1,489,505 1,869,615 814,791 32,114 621,747 47,964,368 F.Y.1996 Expenditures 35,010,156 5,752,179 543,777 1,153,253 2,046,868 2,259,816 2,483,629 2,697,520 983,906 478,829 549,802 53,959,735 F.Y.1997 Current Budget 35,463,836 3,998,630 463,187 476,558 606,640 2,086,425 1,268,740 680,837 1,090,470 484,000 46,619,323 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 34,125,805 4,752,509 410,227 1,031,370 606,640 2,086,425 1,468,740 680,837 1,095,470 305,000 385,000 477,474 48,396 6,000 40,000 13,000 8,000 3,930,000 34,603,279 4,800,905 416,227 1,031,370 606,640 2,086,425 1,508,740 693,837 1,103,470 4,235,000 385,000 46,948,023 4,522,870 51,470,893 5,436,723 478,737 65,526 5,980,986 41,983,382 702 478 6,937,681 453,851 7,391,532 46,568,203 729 486 46,619,323 728 494 46,948,023 683 494 4,522,870 16 51,470,893 699 494 210 GEORGIA BUREAU OF INVESTIGATION Financial Summary F.Y. 1998 Governor's Recommendations Budget ClassesIFWld Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Evidence Purchase Total FWlds Adjusted Base 35,637,330 3,916,612 448,187 476,558 576,640 2,063,325 1,094,772 620,837 1,022,166 484,000 46,340,427 Redirection Level FWlds To Redirect Additions (313,660) (74,534) 379,845 310,855 2,000 55,000 95,525 13,000 5,000 (388,194) 861,225 Redirection Totals 35,703,515 4,152,933 450,187 531,558 576,640 2,063,325 1,190,297 633,837 1,027,166 484,000 46,813,458 Enhancements Less Federal & Other FWlds: Federal FWlds OtherFWlds Governor's Emergency FWlds Total Federal & Other FWlds Total State Funds Positions Motor Vehicles 46,340,427 728 494 (388,194) (5) 861,225 11 46,813,458 734 494 Totals 35,703,515 4,152,933 450,187 531,558 576,640 2,063,325 1,190,297 633,837 1,027,166 484,000 46,813,458 46,813,458 734 494 211 GEORGIA BUREAU OF INVESTIGATION F.Y.1998 Budget Summary ADJUSTMENTS TO CURRENT BUDGET GOVERNOR'S RECOMMENDATIONS F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust for non-recurring expenditures: --Personal services ($110,736) and regular operating expenses ($148,000). --Health Care Fraud Unit ($420,825). 3. Reflect a decrease in agency self-insurance rates. 4. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. ADJUSTED BASE REDIRECTION FUNDS 46,619,323 338,700 (679,561) (24,823) 86,788 46,340,427 FUNDS TO REDIRECT 1. Eliminate the DNA database whereby Forensic Sciences would cease developing profiles on convicted sex offenders. 2. Delete three vacant administrative positions. Total Funds to Redirect (164,000) (224,194) (388,194) ADDITIONS 1. Add four scientists and related expenses to create a DNA database of both offenders and unknown suspects. 2. Provide for the purchase of supplies ($100,000) and replace three vehicles for the lab ($55,000). 3. Increase per diem, fees and contract for the Fulton County contract for autopsy assistance in the lab. 4. Add four scientists, two clerk/transcribers and related expenses to reduce case turn-around time in the lab. 5. Add one project manager and related expenses for the statewide registry of violent sexual offenders in the Georgia Crime Information Center. Total Additions TOTAL REDIRECTION LEVEL 325,000 155,000 55,525 197,000 128,700 861,225 46,813,458 212 GEORGIA BUREAU OF INVESTIGATION -- F.Y. 1998 Budget Summary ENHANCEMENT FUNDS GOVERNOR'S RECOMMENDATIONS CAPITAL OUTLAY 1. Construct a 3,000 sq. ft. free-standing facility adjacent to the Macon Branch Lab for a morgue and autopsy area. See Bonds 2. Construct a new laboratory to replace the Columbus Branch Crime Laboratory. TOTAL ENHANCEMENT FUNDS See Bonds o TOTAL STATE FUNDS 46,813,458 213 GEORGIA BUREAU OF INVESTIGATION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Administration 3,803,372 3,803,372 4,342,134 4,342,134 2. Investigative Division 3. Forensic Sciences 4. Georgia Crime Information Center 24,683,509 10,166,954 7,965,488 24,683,509 10,166,954 7,965,488 23,635,998 10,811,985 8,023,341 23,635,998 10,811,985 8,023,341 TOTAL APPROPRIATIONS 46,619,323 46,619,323 46,813,458 46,813,458 RECOMMENDED APPROPRIATION: The Georgia Bureau ofInvestigation is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $46,813,458. 214 GEORGIA BUREAU OF INVESTIGATION Roles and Responsibilities The Georgia Bureau of Investigation (GBI) serves as a primary investigation and enforcement agency in the state's fight against crime and corruption. Upon request, the GBI provides investigative and enforcement support services to local and federal law enforcement agencies throughout the state. In addition to conducting general and special investigations, the bureau provides forensic laboratory examinations and collects data on crime and criminals. Numerous programs are operational and the latest technological advancements in crime fighting are in place to combat drug trafficking and other crimes. The operations of the GBI include a staff of 728 employees. These employees are located at the Bureau Headquarters, and are strategically housed in 15 General Investigation Offices, four Regional Drug Enforcement Offices and five Regional Crime Laboraties through which the various support services are carried out. GENERAL INVESTIGATION The mission of the General Investigation Section is to provide assistance to local law enforcement agencies in the investigation of crimes committed throughout the state on a daily basis. The office also has original jurisdiction in the investigation of crimes committed on state property; the enforcement laws governing non-tax paid alcohol and tobacco; and the investigation of crimes committed on the basis of race, creed, religion or national origin. The majority of the manpower resources are distributed among the 15 regional field offices and the four regional drug enforcement offices. The regional field. offices conduct general investigations of all crimes and comprise the most significant program in the General Investigation Section of the division's budget. The regional drug enforcement offices investigate all levels of drug trafficking with an emphasis on major violators. These offices comprise the most significant program in the Drug Enforcement Section of the division's budget. There are seven specialized areas of operations: Crime Analysis Unit. Crime Scene Specialist Program. Financial Investigations Unit. Intelligence Unit. Multi-Jurisdictional Task Forces. Polygraph Unit. A number of services are provided to assist local agencies in solving crimes throughout the state: Aid in the detection, apprehension and conviction of criminals, and behavioral science related services. Criminal investigations into auto thefts, carjacking, organized crime, fugitives, and controlled substances. Arson investigations. Publications and dissemination ofthe Criminal Activity Bulletin. Polygraph exams for other criminal justice agencies upon request. Assistance with security and crowd control for major organized events and civil disturbances in the state. FORENSIC SERVICES The Division of Forensic Sciences operates the headquarters laboratory in Atlanta and five regional laboratories in Savannah, Columbus, Augusta, Moultrie and Macon. An additional lab is being constructed in northwest Georgia and is scheduled to open in F.Y. 1997. The laboratories examine submitted evidence, report scientific conclusions about that submitted evidence, and testify in court about results. These services must be timely and as up-to-date as possible to satisfy the needs of the courts and the police. The Headquarters Lab consists ofthe following programs: Administration Criminalistics DNA Database Drug Identification SerologylDNA Questioned Document Implied Consent Photography Toxicology Latent Examiner Firearms Identification Medical Examiner Services. GEORGIA CRIME INFORMATION CENTER The role of the Crime Information Center includes the operation of a statewide Criminal Justice Information System (CnS) Network, linking criminal justice agencies to automated state and national information data bases. The center also operates and maintains a central repository of statistical data describing the nature and extent of reported crime known under the name of its FBI counterpart, the Uniform Crime Reporting system. It performs audits of Georgia's criminal justice agencies. AUTHORITY Title 35 of the Official Code of Georgia Annotated. 215 GEORGIA BUREAU OF INVESTIGATION Strategies and Services CRIME LABORATORY SERVICES With the resources provided to the laboratories statewide, the Division of ForenSic Sciences has been able to meet changing demands for forensic services while also laying the groundwork for innovative solutions to meet these and future demands. Governor Miller continues to address these demands through the addition of new scientists and upgraded facilities. Additional scientists and administrative personnel, nine in F. Y. 1997 and eight being recommended in F.Y. 1998, will provide the necessary personnel resources to improve productivity as well as improve quality control. Scientific services have been expanded throughout the state with the construction of a new branch laboratory in Summerville scheduled to be opened in the spring of 1997. This full service laboratory will give law enforcement agencies and the courts direct access to the expertise they need to solve cases and convict criminals. In F. Y. 1996 the Division of Forensic Sciences provided more service at less cost per service and did it faster than ever before. The Division processed over 113,000 individual services related to incoming case evidence. Overall service processing in 1996 was up by 19 percent over F.Y. 1995. The increased number of services completed is the equivalent to an extra 45 days of work. The cost per service in F. Y. 1996 was $93, down from $112 inF.Y. 1995. In terms of the F. Y. 1996 budget this translates into real cost savings of approximately $2,147,000 worth of additional casework. Fifty-five percent of all services were completed in 30 days or less, up from the fifty-three percent in F.Y. 1995. Six of eight major service areas improved turn-around time. The Division is currently processing 57 percent within 30 days. LABORATORY UPGRADES-The Governor's F. Y. 1998 Budget recommendations include $3.2 million in general obligation bonds for construction of a new building to replace the existing Columbus Branch Crime Laboratory. Acquired by the GBI in 1974, the a small amount of biological evidence left at a crime scene. However, the database is not searched in cases where no suspect has been identified, and as displayed in the chart, numerous rape Rape Cases Not Processed Against DNA Database 1993 1994 1995 1996 FiIealYean current facility was designed for a staff of four working 3,000 cases. There are currently eight employees working 5,500. The surrounding 19 counties will continue to receive the forensic services currently being offered such as testing drug identification, toxicology, serology and criminalistic. Also included in the F.Y. 1998 Governor's budget recommendation is $645,000 in general obligation bonds to construct a regional medical examiner facility adjacent to the existing Macon Branch Crime Laboratory. The facility will contain a morgue/autopsy area and associated medical examiner staff office space. DNA SERVICES ARE EXPANDED--With funding of $172,688 and three scientist positions in F.Y. 1995, GBI began a database file of DNA samples from every convicted sex offender in the state, which improved the chances of matching victims with their suspects. The technique gives the crime laboratory the capability to identify an assailant from a list of suspects based on cases have not been processed against the DNA database. For the program to be effective, DNA should be tested on all sexual assault cases and the database searched. This improvement to the system will make possible the identification of a suspect by comparing the DNA type of an unknown offender to those in the database. For F.Y. 1998, Governor Miller has recommended additional funding of $161,000 for two more scientists and related expenses to expand the DNA database to include cases where no suspect has been identified. The DNA testing can now be compared against the CODIS system, the national system of unsolved cases. INVESTIGATIVE PROGRAMS MUL II-JURISDICTIONAL DRUG TASK FORCE--GBI provides an assistant special agent-in-charge (ASAC) to supervise multi-jurisdictional drug task forces throughout the state. The initial task force was funded with a federal grant and was staffed with representatives from various local law 216 GEORGIA BUREAU OF INVESTIGATION -- Strategies and Services Georgia Bureau of Investigation Crime AgainstPropertyfor 1996 Burglaly 35.8% Forgery 9.0% [ffiJ] Theft 37.9% o Mtr Veh Theft 8.3% Arson 7.4% Crim Damage Prop 1.6% criminal intelligence information. The unit provides specialized support to GBI work units as well as other state, federal and local law enforcement agencies throughout the country. Information from intelligence files is disseminated upon request to all law enforcement agencies. An average of over 13,000 requests are received each year. The unit publishes and disseminates the Criminal Activity Bulletin, which is the means of notifying local law enforcement agencies and district attorneys of the impending release from prison, ofpersons convicted of crimes in their jurisdictions. enforcement agencies within a judicial circuit. Over the years, the bureau has had numerous requests to provide ASACs to serve as supervisors for multi-jurisdictional task forces throughout the state. Federal grants, which are used as the initial fimding sources for these task forces are administered by the Governor's Criminal Justice Coordinating Council. Currently the GBI is responsible for the supervision of 13 multi-jurisdictional task forces that work street to mid-level and in some instances major drug investigations in 50 of the 159 counties in Georgia. These supervisors provide experienced, capable leadership and help to ensure an organized and cooperative effort between not only the GBI and the task forces but also other law enforcement agencies. CRIME SCENE SPECIALIST PROGRAM--GBI assigns one special agents as a crime scene specialist to each of the 15 regional investigative offices statewide. Each of theses special agents is an experienced investigator who has demonstrated success in the investigation of nonviolent crimes as well as an aptitude for conducting crime scene examinations. Each specialist is equipped with and trained in the use of the latest state of the art instruments designed to identifY, collect and preserve physical evidence from a crime scene. Additionally, they are trained to reconstruct each crime as it occurred and testify to their [mdings after an examination of the physical evidence. FINANCIAL INVESTIGATIONS UNIT--The Financial Investigations Unit serves as a mechanism for removing the financial rewards gained by persons and organizations involved in illicit drug trafficking. In the six years following the inception of this program, the unit has played a key role in successful seizures of over $40 million in illicit assets, and has been involved in training over 1,500 officers in the various investigative disciplines of financial investigations. The investigative process utilized in drug related financial crimes apply as well to traditional and non-drug related white collar crimes, and state fimded personnel have been added over the years to handle these type of crimes. Unit personnel have begun investigating financially motivated crimes such as fraud (to include telemarketing and healthcare fraud), political corruption, embezzlement, theft and even murder. INTELLIGENCE UNIT--The Intelligence Unit acts as a repository for CRIME INFORMATION FIREARMS PROGRAM (Instant Gun Check)--The Firearms Program provides a state background check for handgun purchasers. Administered to be in conformity with the provisions of Georgia law and the federal Brady Handgun Violence Protection Act, the program provides the means for a federally licensed firearms dealer to call a 1-800 number to obtain an "instant check" on individuals prior to the transfer/sale of a handgun. This check is to insure the individual is not prohibited by law to possess a handgun. Initially fimded in F. Y. 1996 at a cost of $1.1 million, GCIC has processed 59,870 transactions of which 7,023 were denied. INSTANT GUN CHECK DENIAL STATISTICS Felony Warrants. . . . . . . . . .. 95 Convicted Felons . . . . . . . . 3,124 Felony Arrests 3,796 (no disposition) Mental Incompetency. . . . . . .. 4 cns NETWORK--The cns Network provides law enforcement and other criminal justice agencies quick access to critical state and national information pertaining to criminal and 217 GEORGIA BUREAU OF INVESTIGATION -- Strategies and Services drivers' records; vehicle, boat and airplane registrations; stolen vehicles and property; wanted persons; and missing children and adults. There are currently 4,829 terminals on the cns Network. AUTOMATED FINGERPRINT IDENTIFICATION SYSTEM (AFIS)-AFIS technology automates the processing of criminal, latent and applicant fingerprints in speed and accuracy. The processing of criminal documents such as fingerprint cards and reports of final disposition create and update computerized criminal history records which are used by all criminal justice agencies throughout the state and nation. Automation of final disposition information is occurring in two ways. Agencies can enter final dispositions directly into the computerized criminal history database via the Go Network and second a transaction is generated as a by-product of a courts own data capture system. Automated agencies submit 11 % ofthe Judicial Data to GCIC. Remote sites where AFIS workstations are communicating with the GBI's AFIS are capable of sending and receiving electronic fingerprint images and making fingerprint identifications remotely. The current upgrade will give the GBI the capability to receive fingerprint images electronically. Law enforcement agencies will be able to transmit images directly into the GBI's AFIS via a Live Scan device. The chart on this page depicts the number of documents that were received on a quarterly basis for AFIS operations during F.Y. 1996. The AFIS database files currently total 1,785,313. Tenprint files of 1,097,684 represent two thumbs stored for each offender and latent cognizant files, which represents 10 fingers stored for each offender that meets certain criteria such as violent offenders and repeat offenders total 687,629. The latent database contains 3,963 prints lifted from crime scenes that do not match any prints in the tenprint files nor the latent cognizant files. These prints are stored for future reference. GBI plans for future upgrades to handle the increase in submissions and to take advantage of new technology through remote terminals installed throughout the state in local law enforcement agencies. 35,000 Document Receipts for FY 1996 AFIS Operations 30,000 25,000 20,000 15,000 10,000 5,000 o Jul95 Oct 95 Jan 96 Apr 96 Jun96 ' - - - - - - - - - - - - - - , III CriminalCards Dispositions Applicant Cards I 218 GEORGIA BUREAU OF INVESTIGATION Results-Based Budgeting Program Summaries CRIMINAL INVESTIGATIONS PURPOSE: Provide criminal investigative assistance to all agencies of the criminal justice system and to perform other mandated and regulatory law enforcement duties. GOALS Supplement resources of local law enforcement agencies by providing investigators, drug agents, child abuse specialists, crime scene specialists and other personnel as needed. Reduce public access to illegal drugs by ensuring that laws regarding the manufacture, sale and use of controlled substances are strictly enforced. Reduce drug use by juveniles by providing Drug Abuse Resistance Education CDAR.E.) training for use in schools. Maintain the safety of the general public. FORENSIC SCIENCES (CRIME LADORATORY SERVICES) PURPOSE: Provide forensic science (crime laboratory) services to law enforcement agencies to determine if crimes have occurred, and assist in successful prosecution of those crimes. GOALS Meet the forensic science (crime laboratory) service demands for quality, accuracy and timeliness as directed by our customers and scientific standards so that customers are successful in detecting and prosecuting criminal activity. Compile a comprehensive DNA database to include all sexual assault cases. Establish medical examiner services in all regions of the state. GEORGIA CRIME INFORMATION CENTER (GCIC) PURPOSE: Provide criminal information to law enforcement agencies and others through the design, implementation, operation and audit of the state's Criminal Justice Information System (CnS). GOALS Collect and provide mandated criminal justice information services to the Georgia criminal justice community and citizens as required. Ensure the quality and accuracy of information reported to GCIC. 219 GEORGIA BUREAU OF INVESTIGATION -- Results-Based Budgeting AGENCY PROGRAMS 1. Criminal Investigations 2. Forensic Sciences 3. Crime Information Center Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 26,870,448 11,022,713 8,726,162 26,870,448 11,022,713 8,726,162 26,159,060 11,775,023 8,879,375 26,159,060 11,775,023 8,879,375 TOTAL APPROPRIATIONS 46,619,323 46,619,323 46,813,458 46,813,458 220 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION Total Budgeted Positions as of October 1, 1996 -- 28 Georgia State Financing and Investment Commission I Construction Division 25 Manages contracts for design and construction of capital outlay projects. I Financing and Investment Division 3 Sells general obligation bonds as authorized by the General Assembly.. .invests bond proceeds... manages the bond debt...purchases bonds from the secondary market. 221 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications F.Y.1995 Expenditures 1,431,846 93,852 29,143 53,458 130,433 131,065 56,096 14,030 F.Y.1996 Expenditures 1,421,235 47,474 41,371 3,959 157,608 99,673 164,797 F.Y.1997 Current Budget 1,662,062 72,576 40,000 800 157,607 308,800 52,600 19,604 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 1,638,807 71,384 40,000 1,800 157,607 308,800 42,600 20,678 1,638,807 71,384 40,000 1,800 157,607 308,800 42,600 20,678 Total Funds Less Other Funds: Other Funds Total Other Funds Total State Funds Positions 1,939,923 1,939,923 1,939,923 24 1,936,117 1,936,117 1,936,117 26 2,314,049 2,314,049 2,314,049 28 2,281,676 2,281,676 2,281,676 28 2,281,676 2,281,676 2,281,676 28 222 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION Financial Summary F.Y.1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Adjusted Base 1,638,807 71,384 40,000 1,800 157,607 308,800 42,600 20,678 Redirection Level Funds To Redirect - Additions Redirection Totals 1,638,807 71,384 40,000 1,800 157,607 308,800 42,600 20,678 Enhancements Totals 1,638,807 71,384 40,000 1,800 157,607 308,800 42,600 20,678 Total Funds Less Other Funds: Other Funds Total Other Funds Total State Funds Positions 2,281,676 2,281,676 2,281,676 28 2,281,676 2,281,676 2,281,676 28 2,281,676 2,281,676 2,281,676 28 223 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 APPROPRIATION (AGENCY FUNDS) 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Provide continuation adjustments for ongoing programs. ADmSTED BASE TOTAL REDIRECTION LEVEL TOTAL AGENCY FUNDS 2,314,049 10,735 (43,108) 2,281,676 2,281,676 2,281,676 224 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION Roles and Responsibilities The Georgia State Financing and Investment Commission (GSFIC) is responsible for managing the state's public debt. This responsibility includes providing various administrative services in issuing bonds and in investing the bond proceeds. GSFIC also manages capital outlay construction projects related to the issuance of the bonds. The Georgia General Assembly authorizes GSFIC, through the annual appropriations bill, to sell general obligation bonds to [mance the construction of various capital outlay projects. In the amended F.Y. 1996 and F.Y. 1997 appropriations, $495,450,000 in general obligation bond debt was authorized. For F.Y. 1998, Governor Miller is recommending $508,800,000 in bonds. In F.Y. 1997, GSFIC had an annual operating budget of $2,314,049. This agency does not receive state funds for its operations but instead generates its own funds from interest derived from the bond proceeds. The commission members consist of the Governor, the President of the Senate, the Speaker of the House of Representatives, the State Auditor, the Attorney General and the Director of Office of Treasury and Fiscal Services. GSFIC provides all of its services through two statutory divisions-Financing and Investment, and Construction. FINANCING AND INVESTMENT The Financing and Investment Division has three employees who are responsible for selling the general obligation bonds and investing the bond proceeds. Additionally, this division manages the bond debt and purchases bonds from secondary markets. In F.Y. 1996, GSFIC generated $96,210,213 in interest income on investments from bond proceeds that were on deposit in the construction fund. CONSTRUCTION The Construction Division manages the contracts for the design and construction of the capital outlay projects for the various state agencies and other state entities. The division's management of projects involves preparing bids for the selection of a contractor to construct the facility; monitoring the progress of the projects; and providing the accounting services associated with disbursements of payments. In F.Y. 1995, the division disbursed approximately $724 million for construction and administered 69 projects. In F.Y. 1996, the division disbursed $669.5 million for construction and administered 72 projects. Additionally, as of June 30, 1996, the division had over $1.820 billion in the construction fund account for disbursement on the various capital outlay projects. AUTHORITY Titles 20 and 50 of the Official Code of Georgia Annotated. 225 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION Results-Based Budgeting Program Summaries FINANCING AND INVESTMENT PURPOSE: Perform all services related to the issuance and management of public debt, including the investment and accounting of all proceeds derived from issuance of General Obligation (G.O.) bonds or from other amounts appropriated by the Legislature for capital outlay purposes. GOALS Issue 100 percent of General Obligation (G.O.) bonds authorized by the General Assembly. Invest all bond proceeds at maximum investment yield. CONSTRUCTION PURPOSE: Provide construction management services for state agencies. GOAL Provide effective construction management services to facilitate delivery of capital projects on time and within budget. AGENCY PROGRAMS 1. Financing and Investment 2. Construction Management TOTAL APPROPRIATIONS Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 289,282 2,024,767 2,314,049 291,907 1,989,769 2,281,676 226 OFFICE OF THE GOVERNOR GOVERNOR I Director Office of Planning and Budget I I Governor's Office Executive Secretary Senior Executive Assistant Executive Counsel to the Governor Director of Communications Executive Assistant for Education Policy Executive Assistant for Community Relations I Educational Development Division I General Government and Public Safety Division I Human Development Division I Physical and Economic Development Division 1 Administration Division Performs budget Performs budget Performs budget Performs budget Performs administraanalysis and policy analysis and policy analysis and policy analysis and policy tive functions for the planning for the agen- planning for the agen- planning for the agen- planning for the agen- entire Office of the cies related to public cies related to the cies related to state cies related to natural Governor including schools, higher educa- protection of persons tion and scholarships and property and for ... serves on staff for general government health planning, resources, transporta- accounting, payroll, welfare, veterans tion and economic personnel, purchasing administration, work- development, and and general support Council for School activities. ers' compensation, employment and services. Performance and education study groups. children and youth, and other human and social services. worker training... develops plans and programs for state economic develop- ment. I I I Georgia Council I Pro.gram Evaluation I I for the Arts and Management I Services I I Provides grants and Coordinates and per- I I technical assistance to forms jointly with the I local governments and Department of Audits on I I art groups. evaluation of programs I in state government. .. I I performs other manage- I I ment studies as assigned. I : Children and Youth Coordinating Council I Commission on Equal Opportunity : Commission on Privatization of Government I Service : Criminal Justice Coordinating Council ~ Georgia Council on Vocational Education Georgia Emergency Management Agency Governor's Development Council I Operational Support and Development Division Provides agency-wide technical support for all computer-related services...operates the State Data Center. .. provides research services on an asrequested basis...coordinates agency oversight of legislative activity...operates the State Clearinghouse for liaison for federal funding...monitors the state's capital budget needs and provides I Intergovernmental Relations Division Monitors and analyzes Congressional proposals that would impact state and local governments ... coordinates interagency activities with Congress and the federal government. l Strategic Planning Coordinates the development of the annual statewide strategic plan... establishes statewide standards and procedures for the development of individual state agency strategic plans ... facilitates selected state agencies in the development of their in-house strategic plans and operational plans. Georgia Policy Council for Children and Families technical support and Human Relations Commission evaluation expertise to Information Technology Policy Council other divisions. Office of Consumer Affairs Professional Standards Commission 227 OFFICE OF THE GOVERNOR Financial Summary Expenditures, Current Budget and Agency Requests . Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Cost of Operations Mansion Allowance Governor's Emergency Funds Intern Stipends and Travel Art Grants - State Funds Art Grants - Non-State Funds Humanities Grant Juvenile Justice Grants Grants to Local Systems Children & Youth Grants Crime Victims Asst. Prog. Grants- EMA Grants - Civil Air Patrol Grants - Disaster Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds F.Y.1995 Expenditures 15,153,827 2,236,471 307,510 17,900 330,381 997,278 15,663,696 734,280 448,289 3,337,267 40,000 49,488,000 275,000 3,149,557 383,850 60,000 1,130,622 524,364 290,975 500,000 1,092,800 60,000 136,490,487 232,712,554 F.Y.1996 Expenditures 15,689,936 1,619,113 261,041 F.Y.1997 Current Budget 15,250,328 954,076 266,239 235,113 1,126,878 19,711,087 901,409 592,478 3,058,148 40,000 6,270,220 210,333 3,952,500 439,005 130,600 1,534,156 290,975 500,877 1,235,329 60,000 46,341,286 104,200,484 63,776 1,002,683 4,306,578 582,757 455,681 3,432,344 40,000 4,000,000 165,000 3,850,000 214,000 150,000 1,477,500 684,400 290,975 100,000 1,085,968 60,000 38,432,305 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 15,232,524 1,047,012 253,944 34,000 3,000 15,266,524 1,047,012 256,944 63,892 978,701 4,101,490 557,928 473,622 3,279,364 40,000 3,000,000 156,750 3,476,169 405,832 150,000 1,499,100 684,400 276,426 100,000 1,085,968 60,000 10,000 2,741,888 190,048 117,500 63,892 988,701 6,843,378 557,928 473,622 3,279,364 40,000 3,000,000 156,750 3,666,217 405,832 267,500 1,499,100 684,400 276,426 100,000 1,085,968 60,000 36,923,122 3,096,436 40,019,558 25,710,815 110,766,219 22,130,647 158,607,681 38,375,942 28,341,125 5,777,659 72,494,726 6,347,132 927,916 7,275,048 6,245,672 899,316 7,144,988 6,245,672 899,316 7,144,988 State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 74,104,873 1,999,969 76,104,842 303 20 31,705,758 31,705,758 296 21 31,157,257 31,157,257 298 21 29,778,134 29,778,134 285 20 3,096,436 32,874,570 32,874,570 286 20 228 Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Cost of Operations Mansion Allowance Governor's Emergency Funds Intern Stipends and Travel Art Grants - State Funds Art Grants - Non-State Funds Humanities Grant Juvenile Justice Grants Grants to Local Systems Children & Youth Grants Crime Victims Asst. Prog. Grants - EMA Grants - Civil Air Patrol Grants - Disaster Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds OFFICE OF THE GOVERNOR Financial Summary F.Y. 1998 Governor's Recommendations Adjusted Base 15,235,280 943,683 262,039 63,276 1,005,038 4,269,223 577,728 452,525 3,451,962 40,000 3,000,000 165,000 3,850,000 214,000 150,000 1,499,100 684,400 290,975 100,000 1,085,968 60,000 Redirection Level Funds To Redirect Additions (269,764) (12,656) (21,476) 101,000 15,000 (4,500) (16,337) (346,838) (28,300) (4,635) (172,598) 100,000 (8,250) (7,500) (14,549) (3,000) Redirection Totals 15,066,516 946,027 240,563 58,776 988,701 4,022,385 549,428 447,890 3,279,364 40,000 3,000,000 156,750 3,850,000 214,000 142,500 1,499,100 684,400 276,426 100,000 1,085,968 57,000 Enhancements 400,000 37,400,197 (910,403) 216,000 36,705,794 400,000 6,385,471 927,916 7,313,387 101,000 101,000 6,385,471 1,028,916 7,414,387 Totals 15,066,516 946,027 240,563 58,776 988,701 4,022,385 949,428 447,890 3,279,364 40,000 3,000,000 156,750 3,850,000 214,000 142,500 1,499,100 684,400 276,426 100,000 1,085,968 57,000 37,105,794 6,385,471 1,028,916 7,414,387 State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 30,086,810 30,086,810 292 20 (910,403) (910,403) (6) 115,000 115,000 2 29,291,407 29,291,407 288 20 400,000 400,000 29,691,407 29,691,407 288 20 229 OFFICE OF THE GOVERNOR F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Delete non-recurring appropriations for: --Council on Vocational Education ($89,000) --Office of State Olympic Coordination ($94,895) --Governor's Emergency Fund ($1,000,000) 3. Provide four months funding for the Governor's Commission for the Privatization of Government Services. 4. Reflect a decrease in agency self-insurance rates. 5. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 31,157,257 140,789 (1,183,895) (39,959) (4,009) 16,627 ADJUSTED BASE 30,086,810 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce Intern Stipends and Travel by $8,250 and reduce Cost of Operations by $172,598 in the Governor's Office. 2. Decrease appropriations in Georgia Council for the Arts for contract funds for the Historic Chattahoochee Commission ($2,375) and the Humanities Grant ($7,500). 3. Reduce expenses in common object classes for the Children and Youth Coordinating Council. 4. Eliminate two vacant positions ($41,560), per diem, fees and contract funds ($18,305), and contract funds for the Civil Air Patrol ($3,000) in the Georgia Emergency Management Agency. 5. Delete one vacant position ($28,567) and travel funds for the Commission on Equal Opportunity. 6. Reduce expenses in common object classes ($36,000) and eliminate three vacant positions ($127,904) in the Office of Consumer Affairs. 7. Provide for a reduction in common object classes for the Georgia Human Relations Commission ($12,870) and provide for object class adjustments for the Criminal Justice Coordinating Council which nets an increase of$I,365. 8. Privatize two teacher certification testing programs ($231,000) and reduce computer charges ($20,000) for the Professional Standards Commission. 9. Reduce operating expenses for the Information Technology Policy Council. 10. Reduce operating expenses ($175,000) and provide for additional rental funds in the Office of Planning and Budget ($6,560). (180,848) (9,875) (23,104) (62,865) (36,543) (163,904) (11,505) (251,000) (2,319) (168,440) Total Funds to Redirect (910,403) ADDITIONS 1. Provide contract funds in the Office of Planning and Budget for training of State Fiscal Officers. 2. Increase operating expenses in Children and Youth Coordinating Council for the production of a teen pregnancy video to educate youths on the statutory rape laws. 100,000 15,000 230 OFFICE OF THE GOVERNOR -- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 3. Add agency funds in the Office of Consumer Affairs for two positions to implement a preventive education plan specifically targeted at the elderly to educate them on the most common pitfalls in the consumer marketplace. Agency Funds Total Additions 115,000 TOTAL REDIRECTION LEVEL ENHANCEMENT FUNDS 29,291,407 ENHANCEMENTS 1. Provide funds in the Office ofInformation Technology Policy Council for development of the state's basemap to match the federal Geographic Information System. 400,000 TOTAL ENHANCEMENT FUNDS 400,000 TOTAL STATE FUNDS 29,691,407 231 OFFICE OF THE GOVERNOR Functional Budget Summary 1. Governor's Office 2. Office of Planning and Budget 3. Georgia Council for the Arts Total ATTACHED AGENCIES F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 7,637,344 7,637,344 6,476,114 6,476,114 7,690,762 7,590,762 7,684,146 7,584,146 4,996,782 4,420,782 4,988,557 4,412,557 20,324,888 19,648,888 19,148,817 18,472,817 1. Commission on Equal Opportunity 2. Office of Consumer Affairs 3. Criminal Justice Coordinating Council 4. Council on Vocational Education 5. Children and Youth Coordinating Council 6. Georgia Human Relations Commission 7. Professional Standards Commission 8. Georgia Emergency Management Agency 9. Office of State Olympic Coordination 10. Office of Information Technology 11. Governor's Commission for the Privatization of Government Services 981,413 3,251,629 1,230,166 89,000 2,206,223 313,156 4,389,399 5,009,163 94,895 342,373 200,000 823,413 3,251,629 290,847 89,000 531,223 313,156 4,389,399 1,182,434 94,895 342,373 200,000 958,264 3,215,176 1,233,375 2,223,638 302,530 4,151,594 4,969,551 742,808 160,041 794,318 3,114,176 294,056 524,638 302,530 4,151,594 1,134,429 742,808 160,041 Total Attached Agencies 18,107,417 11,508,369 17,956,977 11,218,590 TOTAL APPROPRIATIONS 38,432,305 31,157,257 37,105,794 29,691,407 RECOMMENDED APPROPRIATION: The Office of the Governor is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $29,691,407. 232 OFFICE OF THE GOVERNOR Roles and Responsibilities The Office of the Governor serves a dual role--providing leadership to guide the affairs of state government, and delivering services through nine attached agencies. GOVERNOR'S OFFICE The Governor is the Chief Executive Officer of state govennnent. Constitutionally, he is charged with executing the laws ofthe state and with conserving the peace as Commanderin-Chiefofthe Georgia National Guard. Because of the various demands made ofhim, the Governor requires a personal staff to assist him in scheduling his time, answering correspondence, writing speeches, drafting legislation, and in maintaining contact with citizens of Georgia, members of the General Assembly and state department and agency heads. OFFICE OF PLANNING AND BUDGET The Office of Planning and Budget (OPB) provides the Governor with assistance in the development of the state budget; with developing and updating annually a State Strategic Plan; with working with all state agencies in the development of their own strategic plan and ensuring that it conforms to the state plan; and with program evaluation, working with the State Auditor. GEORGIA COUNCIL FOR THE ARTS The council, a division of OPB, advises the Governor about the study and development of the arts in Georgia, and provides grants and technical assistance to local governments and art groups. ATTACHED AGENCIES The following agencies are attached to the Office of the Governor for administrative purposes. The protection from discrimination against any individual in public employment and in the sale, purchase or rental of housing within the state because of race, color, religion, sex national origin, handicap or age is the responsibility of the Commission on Equal Opportunity. Consumers legitimate business enterprises are protected by the Office of Consumer Affairs from unfair and deceptive activities through the enforcement of the Fair Business Practices Act and other related consumer protection statutes. In addition to administering the Drug Control and System Improvement Grant, the Crime Victim Assistant Grant and the Crime Victim Assistant Compensation program, the Criminal Justice Coordinating Council serves as a statewide clearinghouse for criminal justice information and research, and disseminates information to criminal justice agencies in the state. The Children and Youth Coordinating Council, operating through federal/state grant awards, assist local government and private service agencies in the development of community-based programs for delinquent youth and youth who are at high risk of becoming delinquent. The Georgia Human Relations Commission provides assistance for resolution of problems, issues and situations that pose a threat to positive community relations, and develops programs and activities to achieve a positive human relations climate in the state. The Professional Standards Commission sets policies and procedures for certification of educational personnel in the public schools; reviews and analyzes requests for certification; and issues certificates to qualified applicants. Coordination of the activities of state and local agencies in preparing for natural disasters are carried out through a comprehensive emergency and disaster readiness program. administered by the Georgia Emergency Management Agency. The Georgia Information Technology Policy Council is responsible for expanding the state's use of technology and improving the delivery of services to the public. The council is charged with developing a state strategic plan for information technology deployment and development. The Governor's Commission for the Privatization of Government Services has been directed by the Governor to identify programs in state government that can be accomplished more effectively by the private sector with cost savings for the Georgia taxpayer. AUTHORITY Titles 8, 10, 12, 19,35,3840,43,45,46,49, and 50 of the Official Code of Georgia Annotated, Executive Order. 233 OFFICE OF THE GOVERNOR Strategies and Services A wide range of services are enforcement and other criminal justice Department of Justice for drug delivered by nine agencies attached to improvement projects. Along with the enforcement projects and other the Office of the Governor, including formula grant program, the Criminal improvements to the criminal justice Privatization, Conswner Protection, Justice Coordinating Council is system. The table below highlights Lemon Law control and Art Grants. responsible for administering and some of the local and state projects that coordinating other programs that are of received awards. Local projects PRIVATIZATION OF SERVICES service to the citizens of Georgia. received 60 percent of the total awards Improving the delivery of public DRUG CONTROL AND SYSTEM and state projects received 40 percent. services, and making government more IMPROVEMENT FORMULA GRANT CRIME VICTIM ASSISTANCE effective and more efficient are two of PROGRAM--The grants aid state and PROGRAM AND CRIME VICTIMS the goals of Governor Miller. In 1995 local governments in implementing COMPENSATION PROGRAM-- the Commission for the Privatization of effective drug enforcement and other Federal funding of $3.3 million was Government Services was directed to criminal justice improvements which made available in 1996 to enhance direct examine all areas of government emphasize violent crime and serious services to victims, and to encourage programs and services that have the offenders. These funds may be used to states to develop and improve potential for privatization. The areas of support projects which improve the comprehensive services to all crime government included education; natural apprehension, prosecution adjudication, victims. Correspondingly, the Crime resources, recreation and forestry; public detention, supervision, and rehabilitation Victims Compensation Program safety and defense; economic of drug offenders. Additionally, provides monies to victims of crime development and transportation; hwnan eradication projects, treatment projects, usually for lost wages and for resources; and general medical/funeral expenses. government. The Council received 889 The projects listed are Drug Control and System Improvement Formula claims in F.Y. 1996 and being reviewed by the commission for the possible Grants for F.Y. 1996 made 203 awards. Victims can be compensated for privatization of services: Projects Study of the Secretary Local: Amount out-of pocket expenses up to a maximwn of$10,000. of State's Examining Boards. Multi-Jurisdictional Task Forces $5,300,000 Public awareness for this Study of the Secretary of State's Records Center. Department of Natural Resources' lodge park Drug Abuse Resistance Education Juvenile Offender Treatment Court Delay Reduction Other 800,200 133,800 148,500 369,700 program will be increased through regional workshops and statewide victim conferences. facilities. Monitor and evaluate TotaJ. $6,752,200 GRANTS FOR the out-sourcing of the State: DELINQUENCY Department of Natural Law Enforcement $3,146,400 PREVENTION Resources' golf course Juvenile Offender Treatment 237,800 PROGRAMS maintenance. Adult Offender Treatment 340,000 The Children and Monitor and evaluate the changes being implemented at the Other Total 877,600 $4,651,800 Youth Coordinating Council assists local communities in the Department of Veterans Service's Augusta home. To be awarded 150,000 development of community-base d Continue negotiation TOTAL and monitoring of the leasing $11,484,000 programs for delinquent and high-risk youth through ofLake Lanier Islands Resort grant awards and technical and Water Park. assistance. projects which target major drug In F.Y. 1998, federal prevention GRANTS FOR VICTIMS AND offenders, and projects which improve dollars of approximately $500,000 will LAW ENFORCEMENT the overall effectiveness of the criminal be available for county governments to Federal formula grants are provided justice system are eligible for funding. develop delinquency prevention to state and local governments to aid in A total of $11.4 million was made programs. The Council provides implementing effective drug available in F. Y. 1996 from the U.S. training to local coalitions on eligibility 234 OFFICE OF THE GOVERNOR -- Strategies and Services requirements and grant preparation, and business enterprises from unfair and organizations so that they can reviews all submitted proposals for deceptive activities. decentralize performances, exhibits, or potential funding. LEMON LAW UNIT--The Motor other arts programming around the state. Approximately $2.3 million in Vehicle Warranty Rights Act, commonly Grant programs provide opportunities grants are available annually for the referred to as the "Lemon Law", provides for citizens in all regions of the state to development of community-based consumers a method through which to benefit equitably from state arts funding; programs for delinquent youth and for attract the attention of new car stimulating public recognition and youth who are at high risk of becoming manufacturers and secure the repair or appreciation for the culturally and delinquent. The Council promulgates replacement of those new vehicles that ethnically diverse artistic expressions requests for proposals twice each year do not function properly. throughout the state; and ensuring that to local units of government, private After six years of operation the people with disabilities have service agencies, and child advocates. success of the Lemon Law program is opportunities for artistic experience. During F.Y. 1996, the council remarkable. The Lemon Law caseload Organizational Grants Program produced a video to educate young continues to grow due to the increased provides operating and project support people and their parents about a new volume of motor vehicles sold. Over to Georgia arts organizations. Georgia law. The law requires that 13- 4,800 Georgians contacted the Office of Community-based, professionally 17 year olds be tried as adults if they Consumer Affairs in F. Y. 1996 for staffed arts organizations are contracted commit crimes of murder, voluntary assistance. Since the inception of the with to administer this program. The manslaughter, rape, Governor has aggravated sodomy, recommended funding aggravated child at $2.6 million for F. Y. molestation, aggravated RESOLUTIONS IN LEMON LAW CASES 1998. sexual battery, and armed robbery with a ARBITRATED IN F.Y. 1996 Georgia Challenge Program provides fIrearm. incentive funding and The video is technical assistance for intended to give a better school systems to understanding of the law develop and that provide for harsher 40% implement a treatment of juveniles. sequential, curriculum- It provides a realistic based arts education picture of conditions program in grades K- and life inside both 5, supporting the aim Georgia's juvenile facilities and adult prisons as seen through III Vehicle Repurchased or Replaced D Mfr. to Repurchase or Replace of hiring arts specialists to provide this instruction. In interviews with Withdrawn by Consumer F.Y. 1997, the incarcerated juveniles ~ No Defect Found Challenge funded 31 and young adults. of 55 applications. Approximatel y Because the program 2,000 copies were requires local produced and distributed to the media, program in July, 1990, over 16,590 investment, $4.1 million in matching schools, law enforcement, youth Lemon Law cases have been initiated by funds will be spent on arts education in organizations, churches and interested Georgians. The pie chart demonstrates the funded systems in addition to parties. The Council is in the process of the projected resolutions for all cases $623,000 of the $700,000 in state funds producing a video on teen pregnancy to based upon six years of data. for Georgia Challenge. educate Georgia youth on the statutory Consumers, automobile dealers and auto Grassroots Arts Program rape laws. Governor Miller has manufacturers alike continue to praise provides an opportunity for evet;y county recommended $15,000 in F.Y. 1998 to Georgia's Lemon Law Program for its in the state to be served with state art support expenses associated with consistency and fairness. dollars. Funds are available on a per producing this video. capita formula. F. Y. 1998 STATE FUNDED ART GRANTS recommended funding is $381,200. PROTECTION FOR CONSUMERS The Georgia Council for the Arts Total state funds recommended for The Office of Consumer Affairs uses a state-funded program of "grants" State Art Grants in F.Y. 1998 is protects consumers and legitimate to contract for services with local arts $3,850,000. 235 OFFICE OF THE GOVERNOR Results-Based Budgeting Program Summaries GO~RNOR'S OFFICE PURPOSE: Serve as the State of Georgia's Chief Executive and work with the General Assembly and state agencies to develop policies, strategies and spending programs to provide a better life for the citizens of the state. GOALS Manage the day-to-day operation of state government. Establish and carry out administrative policy for the operation of state government. Recommend legislative programs for adoption by the General Assembly. Recommend to the General Assembly a spending program for the state and set the revenue estimate. Appoint agency heads, members of boards and commissions, and major judiciary judges and officials. Oversee an office staff that provides the Governor with legal assistance, media services, scheduling, responses to citizens inquires, and research. Operate an intern program that offers a valid educational experience for participating interns. BUDGET DEVELOPMENT AND MANAGEMENT PURPOSE: Provide the Governor with policy-making assistance in determining both long- and shortrange plans for meeting the financial needs of state government, and in developing, preparing and managing a state budget which will implement those plans. (Office of Planning and Budget) GOALS Annually assemble the Governor's Budget Document for presentation to the General Assembly. Analyze each state agency's budget submission for inclusion in the Governor's Budget Document. Review each state agency's Annual Operating Budget. Monitor agency budget expenditures throughout the year. Match projected state revenues to state government needs and state agencies requests for funds. PROGRAM EVALUATION AND MANAGEMENT SERVICES PURPOSE: Evaluate various programs of state government to ensure effective and efficient management of programs and services, and provide certain management support to the Governor and state government. (Office of Planning and Budget) GOALS Conduct high quality program evaluations as required by the Governor and the General Assembly. Complete and publish program evaluation reports for presentation to legislative committees and the Governor's Office. Provide management review services, on request, to state government. Provide support services for various councils, commissions and committees appointed by the Governor. 236 OFFICE OF THE GOVERNOR -- Results-Based Budgeting STRATEGIC PLANNING PURPOSE: Ensure that state government maintains a forward direction for the future through a strategic planning process that enhances the management of state government. Provide for a strategic planning process for the State of Georgia and support state agencies strategic planning efforts. (Office of Planning and Budget) GOALS Develop and publish a State Strategic Plan that outlines the vision, mission and strategic directions of state government in Georgia. Assist state agencies in developing and adopting an agency strategic plan that supports the State Strategic Plan through technical assistance and facilitation services. Provide facilitation services for a broad range of state agency management needs. Assist in the development and implementation of a state government system of Results-Based Budgeting. INTERGOVERNMENTAL RELATIONS PURPOSE: Ensure that state government programs are maximized through a cooperative effort between the Federal government and state government as well as state government and local governments. Provide a liaison with all levels of government to maximize the limited resources at all levels of government. (Office of Planning and Budget) GOALS Maintain an on-going communication and liaison function between the Federal government and the state to enhance programs that are interdependent and share common goals. Review all applications for Federal fmancial assistance from local governments to ensure that they meet state goals and do not conflict with other local government goals or those of the state in general. Maintain a data resource of population trends and information to assist state government in planning and determining the needs of the citizens and government. STATE ARTS PROGRAM PURPOSE: Encourage excellence in the arts, to support its many forms of expression, and to make the arts available to all Georgians. (Georgia Council for the Arts) GOALS Oversee judicious, equitable & broad-based distribution of state arts funding. Administer awards which are quality-based, and which provide support for a broad range of creative art forms, including music, dance, theater, visual, literary, and media arts. Build appreciation for the state's wealth offoIk arts and traditions. Strengthen arts education and lifelong learning opportunities Expand services, participation and developmental opportunities in the arts and cultural industries. Advance Georgia as a cultural leader in the Southeast and the country. Administer state funding support for the Historic Chattahoochee Commission. Administer state funding support for the Georgia Humanities Council. 237 OFFICE OF THE GOVERNOR -- Results-Based Budgeting ATTACHED AGENCIES CONSUMER PROTECTIONILAW ADMINISTRATION PURPOSE: Protect the consuming public and legitimate business from unfair and deceptive practice, and to administer and enforce consumer-related statutes. (Office of Consumer Affairs) GOALS Provide needed protection to Georgia's citizens and legitimate businesses by addressing alleged unfair and deceptive actions within conswner transactions. Administer the Lemon Law in a fair and equitable manner. CONSUMER AND SMALL BUSINESS REPRESENTATION PURPOSE: Represent residential and small business consumers in all utility proceedings before the Georgia Public Service Commission (PSC), federal administrative agencies or bodies which have jurisdiction over rates, services or similar matters, state and federal courts. (Office of Consumer Affairs) GOALS Provide adequate representation for program customers by providing timely information and evidence to the PSC. Bring to the attention of the PSC relevant issues concerning program customers. CRIMINAL JUSTICE COORDINATION PURPOSE: Provide necessary leadership to coordinate and improve the major components of the criminal justice system by establishing a statewide coordinating body representing all components and levels of the criminal justice system. GOALS Assist the Governor in recommending laws and policy to enhance the justice system by providing a forwn where officials of state criminal justice agencies can share concerns, review issues with their counterparts and have input from the public. Serve as the state administering agency to make application, secure and administer relevant federal grant programs available to Georgia to enhance the effectiveness of the criminal justice system and improve services for crime victims. 238 OFFICE OF THE GOVERNOR -- Results-Based Budgeting JUVENILE DELINOUENCY PREVENTION PURPOSE: Assist local communities in preventing juvenile delinquency and improving the quality of life for Georgia's children through enhancement of community services to juvenile offenders and other highrisk youth and their families. (Children and Youth Coordinating Council) GOALS Promote the creation of additional effective youth-oriented prevention and treatment programs throughout Georgia. Meet the training needs ofjuvenile justice and related personnel working with youth and families at no cost to the participants. Operate an effective and efficient grant program. Educate local communities, law enforcement agencies, youth and parents on laws and other issues relating to youth. Maintain Georgia's eligibility for federal funds by monitoring compliance with federal and state mandates related to juvenile justice. FAIR EMPLOYMENT AND HOUSING ENFORCEMENT PURPOSE: Eliminate discrimination on the basis of race, sex, religion, national origin, color, age, and handicap in state employment, and prevent unlawful discrimination in residential housing through public outreach and housing provider education; investigate claims of unlawful discrimination in residential housing and resolve those claims through adjudication of conciliation. (Commission on Equal Opportunity) GOALS Enforce laws prohibiting unlawful discrimination in state employment. Remedy the harm caused by any such discrimination, to the extent possible under law. Prevent the occurrence of unlawful discrimination in state employment by educational efforts aimed at state employees and state agencies. Maintain a constant outreach program to the public, making fair housing information and assistance easily available to the citizens of Georgia. Investigate all reasonably based claims of unlawful discrimination in residential housing within established time periods. Make service available to either conciliate disputes between the parties or, see the dispute resolved through administrative or civil adjudication. COMMUNITY RESPONSE PURPOSE: Assist communities in the resolution of human.relations issues and prevent escalation of problems; achieve more positive human relations climate. (Georgia Human Relations Commission) GOALS Provide crisis intervention services to state and local government entities. Provide conflict resolution training and public forum for airing resolution of problems in communities statewide. Research and find solutions to persistent problems. Initiate human relations programs and activities. 239 OFFICE OF THE GOVERNOR -- Results-Based Budgeting TEACHER CERTIFICATION PURPOSE: License educators for professional employment in Georgia school systems and provide information to citizens seeking initial and continued licensure, and to monitor compliance with the ethical standards of the profession. (professional Standards Commission) GOALS License competently prepared educators. Continue to streamline the licensure process. Maintain historical records of procedures which certify individuals as teachers and procedures which approve colleges as producers of teachers. TEACHER ASSESSMENT PURPOSE: Improve education in Georgia by using valid, reliable measures of academic skills and content and knowledge. (professional Standards Commission) GOAL Approve and implement an overall assessment program which insures that teachers entering the profession are well qualified in: (1) the basic skills, (2) the subject areas they are suppose to teach and (3) the application of their knowledge to student instruction and learning. TEACHER EDUCATION PURPOSE: Improve the quality of initial preparation and continuing professional development of education personnel in Georgia. (professional Standards Commission) GOALS Develop and maintain an approval system that assures the public of quality preparation for education personnel. Collaborate effectively with colleges/universities and other agencies involved in the preparation of education personnel. Provide leadership and direction for quality preparation of educational personnel. Explore and pilot models for a beginning teacher internship or induction year. STUDENT TEACHER PAYMENT PROGRAM PURPOSE: Serve as a comprehensive payment and data management system for P-12 supervisors of student teachers in Georgia. (professional Standards Commission) GOALS Provide a computerized process for paying supervising teachers in the P-12 public school systems. Assist colleges/universities with the organization and management of capstone information, including collection of data for the state's annual student teacher survey. Coordinate the payment responsibilities of the Professional Standards Commission, college/universities that prepare educational personnel, Georgia Department of Education, and participating P-12 public school systems in Georgia. 240 OFFICE OF THE GOVERNOR -- Results-Based Budgeting STATE AND LOCAL ASSISTANCE PURPOSE: Provide comprehensive, aggressive emergency preparedness, response and recovery programs for the general public, local and state governments and private sector interests in order to save lives, protect property and reduce the effects of disasters and emergencies. (Georgia Emergency Management Agency) GOALS Provide state agency coordination in identifying and developing all-hazard mitigation opportunities and preparedness activities related to improving response to and recovery from emerging threats including domestic terrorism. Optimize the use of local government resources to resolve problems at the most effective level to encourage self sufficiency. INFORMATION TECHNOLOGY PURPOSE: Expand state government's use of technology and identify ways in which technology can improve the delivery of services to the public. (Information Technology Policy Council) GOALS Increase government efficiency by reducing paper records. Provide for a simple and efficient manner of filing paper or electronic documents with little impact on the general public. Provide for easy electronic access to public data, with necessary security restrictions. Provide the ability for all state agencies to have access to and exchange state information freely and easily, within necessary security restrictions, in order to reduce redundancy and to increase agency efficiency. PRIVATIZATION OF STATE GOVERNMENT SERVICES PURPOSE: Improve the delivery of public services, make government more effective and more efficient, and reduce the costs of government to taxpayers through privatization initiatives. (Governor's Commission for the Privatization of Government Services) GOALS Identify barriers to privatizing programs and functions in state government, and recommend actions to overcome them. Recommend specific strategies for privatizing selected, high priority programs, including needed policy and legislative changes, and appropriate financial mechanism. Assess the short-term and long-term results of privatization efforts. Establish a policy and analytical framework within state government whereby privatization is treated appropriately and consistently across departmental lines. 241 OFFICE OF THE GOVERNOR -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS AGENCY PROGRAMS TOTAL STATE TOTAL STATE 1. Governor's Office 2. Budget Development and Management 3. Program Evaluation and Management Services 7,637,344 5,847,720 884,155 7,637,344 5,747,720 884,155 6,476,114 5,852,318 878,775 6,476,114 5,752,318 878,775 4. Strategic Planning 5. Intergovernmental Relations 621,967 336,920 621,967 336,920 612,183 340,870 612,183 340,870 6. State Arts Program TOTAL ATTACHED AGENCY PROGRAMS 4,799,282 20,127,388 4,223,282 19,451,388 4,800,932 18,961,192 4,224,932 18,285,192 1. Consumer ProtectionlLaw Administration 2. Consumer & Small Business Representation 3. Criminal Justice Coordination 4. Juvenile Delinquency Prevention 5. Fair Employment and Housing Enforcement 6. Community Response 2,689,541 562,088 1,230,166 2,206,223 981,413 313,156 2,689,541 562,088 290,847 531,223 823,413 313,156 2,659,389 555,787 1,233,375 2,223,638 958,264 302,530 2,558,389 555,787 294,056 524,638 794,318 302,530 7. Teacher Certification 2,018,574 2,018,574 1,785,839 1,785,839 8. Teacher Assessment 9. Teacher Education 1,035,620 650,805 1,035,620 650,805 809,428 871,927 809,428 871,927 10. Teacher Payment Program 684,400 684,400 684,400 684,400 11. State and Local Assistance 12. Information Technology 4,949,163 342,373 1,122,434 342,373 4,912,551 742,808 1,077,429 742,808 242 OFFICE OF THE GOVERNOR -- Results-Based Budgeting Program Fund Allocations 13. Privatization of State Government Services F.Y. 1997 APPROPRIATIONS TOTAL STATE 200,000 200,000 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 160,041 160,041 14. Vocational Education 15. Office of State Olympic Coordination 89,000 94,895 89,000 94,895 TOTAL PASS-THROUGH FUNDING 1. Humanities Grant 2. Historic Chattahoochee Commission 3. Civil Air Patrol 18,047,417 11,448,369 150,000 47,500 60,000 150,000 47,500 60,000 17,899,977 11,161,590 142,500 45,125 57,000 142,500 45,125 57,000 TOTAL APPROPRIATIONS 38,432,305 31,157,257 37,105,794 29,691,407 243 DEPARTMENT OF HUMAN RESOURCES Total Budgeted Positions as of October 1, 1996 -- 15,856 Offite of Technology and Support 66 Develops and manages information systems and networks...manages support services...provides mail and receiving services...coordinates specialized transportation for the elderly and disabled. Board of Human Resources Children's Trust Fund Health Planning Agency Developmental Disabilities Council Department of Human _____ JI Office of Personnel Resources Administration 17 39 Administers employee classification and compensation plans, benefits programs, and employee training and development pr0grams. I Office of Audits I Office of Budget Services 37 24 I Office of Regulatory Services I Office of Financial Services 258 116 Conducts audits of County Develops and manages Inspects and licenses Departments of Family annual budgets ... coor- hospitals, nursing homes, and Children Services... dinates and facilitates daycare centers and other reviews externally per- departmental planning health care facilities. formed audits... audits initiatives... monitors ins t it uti 0 n a I cas h expenditures... manages accounts, and performs funds from various federal special reviews. and other sources. I Assistant Commissioner I I I Division of Public Health Division of Family and for Policy and Govern- ment 135 Children Services 1219 1269 Performs financial accounting functions, and generates financial reports to meet federal, state and management information needs...processes and disburses payroll and other payments. I Division of Mental Health, Mental Retardation and Substance Abuse 10791 Secures legislation as Funds County Health Funds county level client- Oversees funds for boards needed by the department Departments to provide employment activities and which plan for outpatient ...conducts administrative local health services ... eligibility determination for and residential treatment hearings, and fraud and provides clinical labora- assistance...arranges foster for clients...oversees 8 state abuse investigations of tory services, birth and care and adoption where psychiatric hospitals and 2 public assistance pro- death certificates and appropriate...helps parents institutions for mental grams... disseminates health data collection. collect child support. .. retardation. public information. provides adult protective services. I I I I Division of Rehabilitation Constituent Services Division of Aging Services Services 1819 1 65 ProVIdes comprehenSive sefV1ces to Serves as Department Ombuds- PrOVides techmcal assistance and persons with disabilities to enable man... assists citizen access to funds to Area Agencies on Aging them to be gainfully employed in services. which purchase community-based the mainstream workforce...deter- health and social services that help mines eligibility for Disability older people maintain indepen- Insurance Benefits (Title II) and dence and avoid premature institu- Supplemental Security Income tionalization. (Title XVI). 244 DEPARTMENT OF HUMAN RESOURCES RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 DECREASE FROM F.Y. 1997 BUDGET REDIRECTION LEVEL $1,181,658,214 $41,143,912 $1,181,658,214 HIGHLIGHTS The Governor is proposing a revised welfare budget to recognize the implementation of Georgia's new Technical Assistance for Needy Families (TANF) program effective January 1, 1997. A total of$533.5 million in combined state and federal block grant funds is recommended to provide assistance to needy families with children on a temporary basis and provide parents with job prepration, work opportunities, and other support services to enable them to become self-sufficient and leave the program as soon as possible. The Governor is recommending several actions to improve the lives and adoption opportunities for Georgia's foster children. $3,788,800 is recommended to increase the adoption supplement to the same rate as the foster care per diem and to use more private adoption agencies to speed up placement of children in loving, permanent homes. $1,466,000 is also recommended to provide independent living services to help foster children who are leaving the foster care system and entering college. The Governor is recommending the closure of Brook Run and the redirection of the institution's funding to place residents in community-based programs as well as provide services to mentally retarded individuals on the waiting list for community-based services. It is possible with the same level of funding to serve over 500 individuals in the community as compared to 326 at Brook Run. Also, funds will be available to assure that there are temporary and immediate care beds to provide emergency services for individuals in crisis and to meet critical dental needs in the metro area. Approximately $15 million will be redirected from Brook Run over a two year period. The Governor is recommending $4,715,025 in ICTF ($11,890,934 total funds) to expand community-based services for the elderly by adding 2,061 Community Care Waiver slots for Medicaid eligible individuals and 932 slots for non-Medicaid eligible individuals. The primary purpose of these programs is to provide alternatives to premature or unnecessary institutionalization. House Bill 100, which passed in 1993, authorized a sweeping reform of the Mental Health, Mental Retardation and Substance Abuse Service Delivery System. One of the underlying principles of the new system is to give regional boards flexibility to move funds to meet client needs. Governor Miller is recommending that $14.7 million be reallocated from hospital-based services to community-based services for the chronically mentally ill. (This reallocation will begin in F.Y. 1997). Currently, state psychiatric hospitals are over utilized due to the lack of more appropriate community services. This reallocation will fully fund target area services in the Gwinnett, Clarke and Thomas service areas and expand services in seven other areas. There will not be a reduction in individuals served but rather a shift in services from hospitals to community services. Beds will be closed, units consolidated and hospital staff reduced as a result. $3,751,387 is recommended for SED community-based services to annualize last year's addition and to complete Phase I funding in Whitfield, Walker, Sumter, Emanuel and Bullock Counties. With this addition, 23 of28 service areas will be fully funded for phase I; however, priority care services are available statewide. During Governor Miller's administration, $17.6 million in new SED funding has been appropriated. Rec:ollllllCDcJcd Department Appropriation as Percentage of the state Budget The Division of Rehabilitation is restructuring the vocational rehabilitation program to build an integrated workforce development system to meet the needs of both the business community and people with disabilities. The approach will emphasize work, not services, and employers as customers. Rehabilitation staff will no longer primarily work within offices. They will go out to businesses to educate employers, provide technical assistance and develop new jobs for people with disabilities. They will meet with clients in their homes to determine eligibility for services and discuss job possibilities. Privatization of services through private, nonprofit organizations will be increased. The goal is to increase the number of clients employed by 10 percent in F.Y. 1998 and by 25 percent in F.Y. 1999. 245 DEPARTMENT OF HUMAN RESOURCES Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources F.Y.1995 Expenditures F.Y.1996 Expenditures Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Operating Expenses (MHMR) Major Maint. and Const. Institutional Repairs & Maint. Utilities Postage Benefits: Cash Cancer Control Case Services Children's Services Children's Medical Services E.S.R.P. Case Services Family Planning Kidney Disease Medical Medically Indigent High Risk Preg. Women & Their Infants Payments to DMA for Community Care Purchase of Service Contracts Special Purpose Contracts Community Services Grants: Children's Trust Fund County DFCS Operations Grant-in-Aid to Counties Regional Matemal/lnfant Care 578,979,091 173,993,126 5,100,211 2,872,928 2,360,435 13,040,121 60,940,485 50,135,665 6,588,345 1,685,822 69,829,198 2,115,361 429,986 12,102,562 5,612,109 431,532,107 3,919,803 25,524,800 189,728,423 7,826,531 26,992 791,721 239,951 198,591 14,138,982 92,694,806 6,829,403 250,950,961 3,069,021 284,761,759 108,824,207 821,135 584,789,417 147,030,654 5,504,563 2,957,269 1,545,987 13,765,518 61,076,607 41,948,943 13,628,535 83,000 68,475,989 1,992,056 699,704 12,559,086 6,088,489 405,138,456 25,463,910 224,319,778 3,581,775 16,169,589 95,677,528 8,175,492 272,715,444 3,824,967 299,841,170 133,717,487 Total Funds 2,407,664,638 2,450,771,413 F.Y.1997 Current Budget 587,491,385 94,624,729 4,649,705 2,500,091 1,734,890 14,580,390 37,991,868 34,228,780 14,075,263 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 563,749,642 92,806,825 4,735,649 2,393,793 1,412,495 13,857,927 38,474,834 33,538,839 13,813,279 2,566,514 10,616,042 76,794 5,433 67,743 2,472,754 6,929,060 515,660 566,316,156 103,422,867 4,812,443 2,393,793 1,417,928 13,925,670 40,947,588 40,467,899 14,328,939 58,428,400 2,127,790 322,940 12,468,543 6,358,553 58,103,975 2,127,790 277,714 12,290,924 4,244,637 950,000 32,205,600 2,100,400 59,053,975 34,333,390 2,378,114 12,290,924 4,244,637 413,875,732 390,272,891 390,272,891 25,722,363 259,364,060 39,875,849 258,191,055 1,423,001 14,786,735 41,298,850 272,977,790 4,462,872 4,350,354 4,350,354 16,626,037 75,803,365 7,914,835 271,270,434 2,342,103 296,162,273 127,510,020 21,917,037 68,019,700 6,487,120 301,599,425 2,343,550 300,446,988 122,601,451 2,372,637,421 2,357,933,743 600,000 360,573 679,325 7,882,621 2,085,291 21,917,037 68,619,700 6,847,693 302,278,750 2,343,550 308,329,609 124,686,742 86,323,546 2,444,257,289 246 DEPARTMENT OF HUMAN RESOURCES Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Operating Expenses (MHMR) Major Maint. and Const. Institutional Repairs & Maint. Utilities Postage Benefits: TANF Cancer Control Case Services Children's Services Children's Medical Services E.S.R.P. Case Services Family Planning Kidney Disease Medical Medically Indigent High Risk Preg. Women & Their Infants Payments to DMA for Community Care Purchase of Service Contracts Special Purpose Contracts Community Services Grants: Children's Trust Fund County DFCS - Operations Grant-in-Aid to Counties Regional MaternalJInfant Care 574,861,920 92,635,191 4,810,482 2,467,673 1,435,614 14,089,708 38,479,527 34,703,974 14,397,781 58,254,638 2,127,790 312,940 12,290,924 6,247,224 411,205,262 29,080,191 258,191,055 4,462,872 17,942,073 75,324,727 7,874,835 274,751,073 2,343,550 297,716,301 126,613,345 Total Funds 2,362,620,670 Redirection Level Funds To Redirect Additions (16,339,570) (55,302) (57,589) (73,880) (17,686) (191,038) (533,229) (50,735) (90,000) 16,731,764 344,735 (324,425) (35,226) (1,627,406) (41,550,927) 1,838,312 1,017,360 6,222,939 Redirection Totals 558,522,350 92,579,889 4,752,893 2,393,793 1,417,928 13,898,670 54,678,062 34,997,974 14,307,781 57,930,213 2,127,790 277,714 12,290,924 4,619,818 371,492,647 30,097,551 264,413,994 Enhancements Totals 558,522,350 92,579,889 4,752,893 2,393,793 1,417,928 13,898,670 54,678,062 34,997,974 14,307,781 57,930,213 2,127,790 277,714 12,290,924 4,619,818 371,492,647 30,097,551 264,413,994 (215,650) 4,247,222 (2,573,168) (1,387,715) (410,000) (4,019,395) (69,552,941) 6,540,547 12,143,936 7,991,008 300,000 17,942,073 79,292,106 6,487,120 286,895,009 2,343,550 305,297,309 122,893,950 53,130,601 2,346,198,330 4,247,222 17,942,073 79,292,106 6,487,120 286,895,009 2,343,550 305,297,309 122,893,950 2,346,198,330 247 DEPARTMENT OF HUMAN RESOURCES -- Financial Summary Expenditures, Current Budget and Agency Requests Budget Crasses/Fund Sources Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 957,052,873 338,955,074 6,032,000 251,000 1,302,290,947 1,105,373,691 16,907 1,817 F.Y.1996 Expenditures 942,000,243 322,584,747 6,032,000 140,500 1,270,757,490 1,180,013,923 16,915 1,821 F.Y.1997 Current Budget F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 912,501,788 231,301,507 6,032,000 891,976,904 228,582,239 6,032,000 11,949,939 8,576,998 903,926,843 237,159,237 6,032,000 1,149,835,295 1,222,802,126 15,897 1,823 1,126,591,143 1,231,342,600 15,105 1,823 20,526,937 65,796,609 53 1,147,118,080 1,297,139,209 15,158 1,823 248 DEPARTMENT OF HUMAN RESOURCES -- Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Less Federal & Other Funds: Federal Funds Other Funds DOAS Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 904,999,053 231,038,088 6,032,000 1,142,069,141 1,220,551,529 15,215 1,823 Redirection Level Funds To Redirect Additions Redirection Totals Enhancements Totals (4,008,292) 2,019,923 24,459,344 925,450,105 233,058,011 6,032,000 925,450,105 233,058,011 6,032,000 (1,988,369) (67,564,572) (895) 24,459,344 28,671,257 1,164,540,116 1,181,658,214 14,320 1,823 1,164,540,116 1,181,658,214 14,320 1,823 249 DEPARTMENT OF HUMAN RESOURCES F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 pay increase. 2. Reflect a decrease in agency self-insurance rates. 3. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 4. Transfer state funds to the Department of Medical Assistance to provide the match for community mental health and mental retardation service expansions. 5. Transfer $12,642,015 from MHMRSA hospitals to expand community-based services for the chronically mentally ill and reduce hospital admissions. An additional $2,033,268 will be transferred within hospitals to hospital community initiatives, for a total hospital reallocation of $14,675,283. 1,222,802,126 8,541,645 (480,963) (619,538) (9,691,741) Yes ADJUSTED BASE 1,220,551,529 REDIRECTION FUNDS FUNDS TO REDIRECT Division of General Administration and Support 1. Eliminate 22 positions and associated operating expenses due to reorganization and streamlining of administrative services. 2. Eliminate funding for the contract with Jomandi Productions. 3. Decrease funding for the Georgia Advocacy Office. (1,601,229) (50,000) (142,000) Division of Public Health 1. Eliminate funding for dental health treatment programs. 2. Reduce state funds for medical services provided to indigent children. 3. Reduce funding for cancer treatment for the medically indigent. 4. Eliminate contract to provide operating funds for the Life Flight helicopter. 5. Reduce state funding for clotting factor for individuals with hemophilia. 6. Eliminate funding for the Auditory Education Center contract. 7. Reduce funding for midwifery scholarships. 8. Reduce low-cost obstetric and midwifery services provided to low-income women. 9. Eliminate grant-in-aid funding for scoliosis screenings. 10. Reduce funding to County Boards of Health by five percent. 11. Reduce one-time funding for the Telemedicine program. 12. Eliminate contract with the Macon and Middle Georgia Sickle Cell Society, Inc. 13. Streamline administrative functions and eliminate 31 positions. (1,203,900) (331,196) (215,650) (200,000) (178,954) (106,315) (101,400) (114,765) (125,413) (3,411,000) (300,000) (51,543) (1,687,800) Division of Rehabilitation Services 1. Redirect contract funds not associated with assisting clients to enter the workforce to purchase services for work-ready clients and provide assistance to employers. Contract funds redirected are as follows: Georgia Council for the Hearing Impaired ($343,650); Savannah Association for the Blind ($262,141); Center for the Visually Impaired ($205,288); Georgia Registry ofInterpreters ($150,445) and Share Speech Therapy ($55,836). (1,017,360) 250 DEPARTMENT OF HUMAN RESOURCES - F. Y. 1998 Budget Summary 2. Transition approximately 50 percent of the sheltered employment program slots and redirect the funds to supported employment in order to put disabled individuals to work in competitive employment. 3. Eliminate five administrative positions and streamline division operations. (640,477) (414,449) Division of Family and Children Services I. Eliminate the AFDC welfare entitlement. This elimination also recognizes the removal of the state match requirement based on federal fmancial participation rates. 2. Implement Georgia's new Temporary Assistance to Needy Families (TANF) program ($546,528,865 total funds) in accordance with Title I, Block Grants to States for Temporary Assistance to Needy Families (P.L. 104-193). The primary goal of the program will be to provide necessary assistance to needy families with children on a temporary basis and provide parents with job preparation, work opportunities, child support enforcement, and other support services to enable them to become self-sufficient and leave the program as soon as possible. Georgia's investment in TANF more than meets the minimum state maintenance of effort required under the new federal block grant. 3. Reflect reduction in the number of public assistance cases from 137,462 to 123,181 due to Work First and welfare reform efforts ($41,550,927 total funds). 4. Replace state funds with Social Services Block Grant funds in Adult Protective Services. 5. Reduce postage associated with the distribution of Food Stamp and welfare benefits and replace with Electronic Benefit Transfer (EBT). 6. Reduce state office staffby 15 positions and implement other administrative efficiencies. 7. Eliminate various contracts: employability contracts ($500,000); MAPP licensing training ($45,206); Egleston ($200,000); Scottdale Child Development Center ($40,000); Houston County Drug Abuse Council ($45,320); Opportunities Industrialization Center ($25,000); PEACH public information ($22,779); Family Relations of Gainesville ($49,332); Open Gate Shelter ($90,000); Community of Care ($76,300); and an administrative contract with eight homeless shelters ($224,000). 8. Reduce homemaker services to disabled adults and the elderly. (222,159,548) 209,585,465 (24,443,190) (1,360,083) (967,091) (816,852) (1,317,937) (410,000) Division of Mental Health, Mental Retardation and Substance Abuse 1. Reduce state funds and increase other income in. state hospitals. 2. Reduce funding for inpatient child and adolescent units at state hospitals in order to annualize the expansion of community-based services for severely emotionally disturbed children. 3. Redirect funds from institutional care for the mentally retarded to community-based, Medicaid waiver slots by closing Brook Run. 774 state positions and 326 institutional beds will be eliminated. In F.Y. 1999, the Governor proposes to use additional funds realized from the closing of Brook Run to serve clients currently on the waiting list for community-based services. 4. Eliminate 30 positions and related funding by consolidating service regions, restructuring state office management and support functions, and streamlining administrative and support operations at the hospitals. 5. Reduce administrative and support costs at Central State Hospital due to the privatization of the Veterans' Nursing Home. 6. Eliminate the contract with Parent to Parent of Georgia, Inc. 7. Eliminate the contract with Augusta MiniTheater, Inc. 8. Eliminate the contract with the Georgia Council for the Hearing Impaired. (2,030,936) (2,100,000) (7,054,200) (1,729,249) (625,000) . (132,500) (60,000) (50,000) Total Funds to Redirect (67,564,572) 251 DEPARTMENT OF HUMAN RESOURCES - F. Y. 1998 Budget Summary ADDITIONS Division of General Administration and Support 1. Add $3,896,400 in Indigent Care Trust Funds for 2,061 client slots under the Community Care for the Elderly Program. 2. Provide $818,625 in Indigent Care Trust Funds for community based services to an additional '932 low-income elderly who are not Medicaid eligible. 3. Provide ftrst year grants of $25,000 to 15 new Family Connection sites. Yes Yes 375,000 Division of Public Health I. Improve environmental health by expanding toxic waste assessment and food service surveillance capabilities. 2. Add $2,396,528 in Indigent Care Trust Funds to expand the Children 1st Newborn Screening program statewide. 300,000 Yes Division of Rehabilitation Services 1. Add funds to increase case services to assist people with disablities in obtaining employment. Case services include, but are not limited to: diagnosis and evaluation; medical treatment; psychological services; vocational and academic training; counseling; adjustment training; adaptive tools; equipment and licenses; and therapeutic services. 2. Add funds to increase the supported employment program for disabled individuals. 1,017,360 640,477 Division of Family and Children Services 1. Increase the adoption supplement to 100 percent of the foster care per diem rate. 2. Increase contracts with private adoption agencies for placement of children in state custody as provided in O.C.G.A 49-5-8(7)(G). 3. Provide Independent Living services for foster children preparing to leave foster homes. 2,593,245 1,195,555 1,466,000 GEORGIA'S TEMPORARY ASSISTANCE FOR NEEDY FAMILIES (TANF) PROGRAM AND BLOCK GRANT 4. Provide classes through the Department of Technical and Adult Education or other providers to recipients up to age 25 who have not received their high school diploma or GED. 5. Privatize child support collection services for up to one-third of all non-welfare collection cases and thereby reduce the caseloads of child support enforcement agents. These cases are most at risk of going on welfare in absence of any child support payments. 6. Provide cash beneftts for 1,206 children projected to lose SSI beneftts on January 1, 1998. 7. Expand elibibility for two-parent families from six to twelve months and eliminate the 100 hour rule for two parent families receiving cash assistance. 8. Implement teen pregnancy prevention initiatives in support of welfare reform and to reduce the teen pregnancy and unmarried birth rates. Total funding of $3,492,545 in Indigent Care Trust Funds is recommended to continue the teen pregnancy prevention initiatives recommended in the F.Y. 1997 Amended budget and to expand the Postponing Sexual Involvement program and teen male involvement initiative. 9. Fund 50 Intake Eligibility Workers to investigate and prevent fraud and abuse in cash assistance programs ($1,689,750). 10. Provide 88 grant-in-aid staff in county DFCS offtces around the state to coordinate and determine eligibility for child care services ($3,495,993). 11. Increase resources for employment case management by providing 70 grant-in-aid staff in county DFCS offtces to help recipients fmdjobs ($3,150,000). 12. Purchase job placement services through both public and private employment agencies for those recipients who have traditionally been hard to place ($8,000,000). 13. Expand job training and work partnerships with DTAE ($771,998). 5,328,072 2,773,300 1,121,912 716,400 Yes Federal TANF Federal TANF Federal TANF Federal TANF Federal TANF 252 DEPARTMENT OF HUMAN RESOURCES - F. Y. 1998 Budget Summary Division of Mental Health, Mental Retardation and Substance Abuse 1. Annualize additions funded in F.Y. 1997 for community-based services for severely emotionally disturbed children and adolescents and complete Phase I funding in the Bulloch, Emanuel, Sumter, Walker, and Whitfield County service areas. 2. Annualize funding for community-based services for the chronically mentally ill in the Baldwin County service area. 3. Redirect funds for 326 mentally retarded clients from Brook Run to community-based services and continue critical dental services currently located at Brook Run. 4. Add $1,000,000 in Substance Abuse Block Grant funds for services to pregnant and postpartum women as part of the Governor's welfare reform initiatives. 3,751,387 338,349 7,054,200 Yes Total Additions 28,671,257 TOTAL REDIRECTION LEVEL. 1,181,658,214 ENHANCEMENT FUNDS CAPITAL OUTLAY 1. Fund new construction and institutional repairs and maintenance for DHR facilities (recommend $9,380,000 in F.Y. 1998 bonds). See G.O. Bonds TOTAL ENHANCEMENT FUNDS TOTAL STATE FUNDS 1,181,658,214 253 DEPARTMENT OF HUMAN RESOURCES Strategies and Services The Department of Human Resources (DHR) was created by the General Assembly in 1972 to form a coordlnated network of human services 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, fmancial assistance, social services, regulatory and rehabilitation programs in 1,500 locations. In F.Y. 1998, DHR is proposing actions which will redirect resources from administration, contracts, facilitybased services, and treatment dollars serving limited populations. These funds will be used to provide for and promote: Self-Sufficiency Client Responsibility Parental Responsibility Education, Prevention and Early Intervention Employment Community-Based Services To achieve its goals and objectives in these areas, the department is working closely with other state agencies, local communities, private enterprise, and private foundations and charitable organizations. Over the last several years, DHR has intensified its efforts to generate additional resources to better meet human 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 document services 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 the most successful. TEENAGE PREGNANCY PREVENTION Teen pregnancy prevention is a major component of welfare reform, Second to unemployment, teen pregnancy is a leading cause of welfare dependency. Additionally, teenagers who become pregnant face health risks for themselves and their babies. In 1995, Georgia's teen birth rate ranked 45th in the nation. There were 29,239 pregnancies among young women age 19 or younger. Approximately three-fourths of teen pregnancies are unplanned. Half of all girls who become pregnant as teenagers become pregnant again within two years. For F.Y. 1998, the Governor is proposing to spend $3.5 million on teen pregnancy prevention efforts which include five components: nontraditional clinic sites, traditional clinic sites, outreach workers, a male involvement initiative, and a sex education curriculum. With this proposal, teenage pregnancy efforts will total $7.9 million. Location offamily planning clinics in non-traditional sites such as county departments of family and children services (DFCS), substance abuse centers, and public housing complexes will increase teenagers' access to family planning services. Collocation with DFCS offices will also enhance the department's emphasis on Work First and hopefully reduce the number of women unable to work due to unintended pregnancy. Under this proposal, fifteen clinics will be created in 13 areas: Albany, Athens, Augusta, Cobb County, Columbus, DeKalb County (2), Fulton County (2), Griffm, Gwinnett County, Macon, Rome, Savannah, and Valdosta. Selection was based on high teen pregnancy rates and/or high welfare caseloads. Pregnancies to Women Under age 20 F.Y.1995 10 - 14 15 - 17 18 - 19 Total 1,807 12,583 14,849 29,239 114 1,947 6,697 9,758 Note: Chart includes live births and pregnancies that end in abortion or fetal death 6.3% 23.4% 45.1% 33.4% 254 DEPARTMENT OF HUMAN RESOURCES - - Strategies and Services This initiative would also increase the level of services available through traditional family planning sites at county health departments by providing $700,000 for additional staff and family planning supplies in the Children Adopted following six targeted areas: Albany, Augusta, Columbus, Gainesville, LaGrange, and 1000 Fiscal Year 1996 Macon (2). 869 881 The Governor also recommends seven outreach 800 workers to assist health department staffand to follow-up and monitor clients to encourage 600 them to take advantage of pregnancy prevention methods. Grady Memorial Hospital 400 has developed an effective, sex education curriculum aimed at postponing sexual involvement. 200 Only five percent of the eighth- grade girls participating in the program became sexually active, 0 compared to 15 percent among FY 96 Registered Placed Closed--Other Waiting those who had no special program. Funds will be awarded to school districts interested in using this curriculum, based on a Request for Proposal issued by the department. Currently, the department has $300,000 from the Indigent Care of female inmates in Georgia's Services investigates reports of child rust Fund (ICTF) for grants to 15 correctional facilities were physically abuse and neglect. When a report is community-based organization serving abused as children. Studies have also received, staff determine whether a youth to implement male involvement shown that people who were abused as child is at risk of abuse or neglect by a programs with a focus on teen children frequently abuse others when caretaker and whether agency pregnancy prevention. This initiative they become adults. intervention is requested. The worker would be an expansion of this effort. The Division of Family and will arrange for temporary placement in Programs emphasize peer leadership, Children Services' role relative to a foster home if risk is unacceptably mentoring, job readiness and child protection of Georgia's children is high. Parents must address issues support obligations. three fold: identified by the worker in a To prevent the occurrence ofmis- reunification plan in order to retain or CHILD PROTECTION AND treatment in the first place by helping regain full custody. If the worker PLACEMENT SERVICES parents become better parents; determines that the risk of serious Many of Georgia's children are To protect children once mis- mistreatment is low, in-home family subjected to mistreatment. They may treatment occurs and to prevent it from support services are provided. ,Some be physically abused, neglected or happening again; reports are referred to other agencies abandoned. Sometimes the result for a To assure a permanent safe such as the police department, court child is death. For others, the effects of and secure home by fmding an adoptive system or mental health system. abuse or neglect scar the individual for home as quickly as possible when In 1996, over 77,000 reports of life. Statistics show that 50 percent of parents do not act responsibly. child abuse or neglect were received by the adult male inmates and 80 percent The staff of Child Protective 255 DEPARTMENT OF HUMAN RESOURCES - - Strategies and Services local Departments of Family and Governor is recommending funds to parent or to the state and federal Children Services. Staff screened out increase the adoption supplement to governments to offset welfare or referred approximate 27 percent of $10.50 per day and the potential payments. In 1975, federal matching the reports because they did not meet number of children placed by private funds were authorized to support states' the defmition of maltreatment. The i"emaining reports were investigated, and 15,833 were confirmed based on substantial credible evidence. Most children in foster care are victims of abuse, neglect or abandonment. A parent or guardian may voluntarily place a Child Support Collections child in the state's custody; 1988 however, more often a juvenile 1989 court orders the placement. Approximately 3,500 foster 1990 homes are provided by foster parents who receive comprehensive initial training 1991 fi 1992 and annual in-service training. Some are specially trained in care for special needs children. Foster ] 1993 li: 1994 parents receive a per diem fee 1995 and a yearly clothing allowance. In F.Y. 1997, the Governor 1996 recommended $1.2 million to 1997 increase the family foster care $317 rate from $10.00 to $10.50 per day. Care is also provided 1998 '-----_=- o 5" -'==---_--::=-'-----_-==---_-'-----='------_-'-----$317 100 150 200 250 300 350 $ Millions through institutional foster care. During Governor Miller's AFDC Non-AFDC administration, the reimbursement rate has been increased from 37 percent to 58 percent of cost. Financial assistance is also provided to promote the adoption of children with special needs -- brothers and sisters who need to be placed together; children ages eight adoption agencies by approximately efforts to enforce child support. and over; African-American children 240. There are 70 local offices older than one year; and children with throughout the state: 61 are operated by physical, emotional or mental CHILD SUPPORT the state and 9 are operated under disabilities. Since F.Y. 1991, adoption ENFORCEMENT cooperative agreements by local district assistance rolls have almost doubled, The state's Child Support attorneys. Services provided include: To meet this demand, the Governor's Enforcement Program was established intake; location of a non-custodial F.Y. 1997 budget recommendation in 1973 to provide assistance to a parent; paternity establishment; included $1.1 million to cover the cost custodial parent or caretaker who cares establishment and enforcement of the of adoption supplements for 483 for a child and needs help with support orders; and the collection and additional children. Georgia currently collecting regular child support from a distribution of support. pays $7.88 per day for adoption noncustodial parent. Child support Children deserve economic support assistance. For F.Y. 1998, the collected goes directly to the custodial from both parents, and the state has 256 DEPARTMENT OF HUMAN RESOURCES - - Strategies and Services moved aggressively to improve compliance with child support orders. By increasing both the number of noncustodial parents required to pay child support and the amount of child support collected, the state will help more families become self-sufficient and avoid welfare dependency. During Governor Miller's administration, child support collections have increased by 124 percent from $143 million in F.Y. 1991 to $317 million projected for F.Y. 1997. Georgia is one of the ftrst states to privatize child support collections by contracting with collection agencies to handle difficult cases. By contracting with private vendors to handle nonAFDC cases, state staff will be free to handle more AFDC cases. In F.Y. 1998, the Governor is recommending that at least one-third of all non-AFDC cases be privatized. GEORGIA'S TEMPORARY ASSISTANCE FOR NEEDY FAMILIES PROGRAM Georgia will implement the Temporary Assistance for Needy Families Program according to principles developed over the last ftve years. These principles include a central focus on work; a priority on meeting the needs of children; beneftts linked to responsible parental behavior; a continuation ofefforts associated with Georgia's waiver initiatives; incorporation of Work First into the program's design; and strong emphasis on reducing teen pregnancy. It is a work program with a cash assistance component. The cash assistance will be called the Georgia Temporary Support Grant (GTSG). General Provisions The Department of Human Resources, Division of Family and Children Services will administer the program at the State level. Services will be administered through 159 local Departments of Family and Children Services. Self-sufficiency services and family assistance beneftts will include: Work activities emphasizing job search, job training and job placement; Support services such as child care, housing vouchers, transportation vouchers and emergency assistance; and Cash assistance via check or electronic transfer. Current recipients of Aid to Families with Dependent Children will be given appropriate notice and information regarding the new program. Services will be provided in every political subdivision of the state. Work Participation and Activity Requirements Georgia will adhere to the work requirements and participation rates described in Section 407(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996. Georgia will offer the activities allowable under Section 407 (d) of the act. Single parents with a child less than 12 months ofage will be exempted from work. However, teen parents will be required to attend school regardless of age of their youngest child. All parents whose youngest child is age 1 or older will work, prepare to work or engage in community service employment. Applicants will be required to engage in a job search assignment. A Personal Responsibility and Work Plan will be developed for all new cash assistance cases. The plan will state the obligations of the recipient and the responsibilities of the agency; emphasize the temporary and contractual nature of assistance; and describe work and other activities required of the recipient. Personal Responsibility Requirements Adults receiving assistance on behalfof their children will be required to engage in responsible behavior as a condition of receipt. They must attend parent/teacher conferences; cooperate with Child Support Enforcement; and see that their children are immunized. They may also be required to participate in parenting classes; attend family planning counseling; participate in prenatal care; attend life skills classes; participate in substance abuse counseling/treatment; attend mental health counseling; participate in rehabilitation services; and address any other needs identifted in assessment. Parents under age 18 must live with parents or in another supervised setting and attend school. Temporary Support Grants Assistance will be provided to citizens and eligible refugees. Families moving to Georgia and applying for assistance will be paid the grant amount they would have received in their previous state of residence or in the State of Georgia -- whichever is lower -- for a period of up to one year. They will also be subject to the more restrictive time limits of their previous state, when applicable. Recipients of GTSG will receive Medicaid. Sanctions Failure to meet work requirements or other stated obligations will result in a reduction in the grant. The family may be terminated from the Temporary Support Grant for subsequent failure to comply. Culture Change The strategies developed in the last . two years with the introduction of the Work First philosophy will be expanded and standardized. Former welfare offices wiH now be employment resource centers with the primary focus being the attainment of economic self-sufficiency. Staffwill be trained in new skills as well as the new concept of their role., Job classiftcations are being redefmed to reflect the importance of helping families become fmancially independent. 257 DEPARTMENT OF HUMAN RESOURCES General Administration and Support Financial Summary Expenditures, Current Budget and Agency Requests Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Special Purpose Contracts Service Benefits for Children Purchase of Service Contracts Grand-in-Aid to Counties Institutional Repairs & Maint. Postage Payments to DMA for Community Care Grants to County DFACS-Operations Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS-Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 56,547,683 2,106,612 1,247,398 1,804,700 262,135 4,913,719 4,835,664 2,271,841 638,955 244,000 37,249,367 37,173,271 67,200 1,162,695 14,138,982 164,664,222 F.Y.1996 Expenditures 49,960,412 2,627,239 1,337,859 1,873,237 143,470 4,819,922 7,414,810 1,919,666 701,374 254,000 41,749,835 37,848,065 349,999 69,905 1,329,286 F.Y.1997 Current Budget 51,815,862 2,156,126 1,332,131 1,647,558 89,753 4,818,586 6,268,236 1,282,446 726,204 284,000 46,486,389 37,383,377 73,440 996,644 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 52,850,963 2,177,377 1,332,131 1,573,678 87,698 4,787,604 6,246,802 1,170,698 735,456 142,000 46,486,389 42,707,346 874,000 546,590 52,850,963 2,177,377 1,332,131 1,573,678 87,698 4,787,604 7,120,802 1,170,698 735,456 142,000 47,032,979 42,707,346 38,214 921,644 38,214 921,644 16,169,589 16,626,037 21,917,037 21,917,037 828,579 169,397,247 171,986,789 183,175,037 1,420,590 184,595,627 42,343,077 30,397,269 412,600 ~ 89,500 73,242,446 91,421,776 802 - 233 43,658,397 26,740,193 412,600 38,000 70,849,190 98,548,057 809 234 41,442,833 24,090,741 412,600 65,946,174 106,040,615 799 234 39,743,652 26,493,549 412,600 66,649,801 116,525,236 774 234 39,743,652 26,493,5~9 412,600 1,420,590 66,649,801 117,945,826 774 234 258 DEPARTMENT OF HUMAN RESOURCES General Administration and Support Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Special Purpose Contracts Service Benefits for Children Purchase of Service Contracts Grant-in-Aid to Counties Institutional Repairs & Maint. Postage Payments to DMA for Community Care Grants to County DFACS-Operations Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS-Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 53,963,426 2,187,580 1,337,131 1,647,558 88,593 4,823,586 6,208,002 1,220,698 732,898 284,000 46,486,389 38,479,246 73,440 996,644 17,942,073 176,471,264 39,743,652 25,942,849 412,600 66,099,101 110,372,163 798 234 Redirection Level Funds To Redirect Additions (1,266,143) (10,203) (5,000) (73,880) (895) (35,982) (50,000) 375,000 (142,000) (50,000) (35,226) (75,000) (1,744,329) 375,000 48,900 48,900 (1,793,229) (24) 375,000 Redirection Totals 52,697,283 2,177,377 1,332,131 1,573,678 87,698 4,787,604 6,583,002 1,170,698 732,898 142,000 46,486,389 38,429,246 38,214 921,644 17,942,073 Enhancements Totals 52,697,283 2,177,377 1,332,131 1,573,678 87,698 4,787,604 6,583,002 1,170,698 732,898 142,000 46,486,389 38,429,246 38,214 921,644 17,942,073 175,101,935 39,743,652 25,991,749 412,600 66,148,001 108,953,934 774 234 175,101,935 39,743,652 25,991,749 412,600 66,148,001 108,953,934 774 234 259 DEPARTMENT OF HUMAN RESOURCES General Administration and Support Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS I. Commissioner's Office 2. Budget Administration 3. Children's Community Based Initiatives 4. Troubled Children's Placements 5. Technology and Support 6. Facilities Management 7. Regulatory Services - Program Direction 8. Child Care Licensing 9. Health Care Facilities Regulations 10. Fraud and Abuse II. Financial Services 12. Auditing Services 13. Personnel Administration 14. Indirect Cost 15. Policy and Government Services 16. Aging Services 17. Health Planning Agency 18. Developmental Disabilities Council TOTAL APPROPRIATIONS TOTAL STATE 960,368 960,368 1,322,565 1,322,565 5,119,250 4,744,250 46,486,389 33,335,726 20,735,978 19,092,824 5,480,691 4,226,695 877,102 867,102 2,739,981 2,739,981 9,960,897 4,226,414 6,265,864 2,306,430 6,178,684 5,978,684 1,845,416 1,845,416 1,824,319 1,824,319 (8,595,811) 1,031,559 1,031,559 57,758,118 28,467,291 1,695,639 1,615,639 1,703,969 171,986,789 51,163 106,040,615 TOTAL 896,319 1,065,271 5,497,783 46,486,389 22,317,934 5,449,464 823,327 2,767,429 10,072,520 6,317,956 5,574,499 1,861,725 1,752,430 981,426 59,976,393 1,627,762 1,633,308 175,101,935 STATE 896,319 1,065,271 5,122,783 33,335,726 20,674,780 4,195,468 813,327 2,767,429 4,338,037 2,283,576 5,374,499 1,861,725 1,752,430 (8,737,576) 981,426 30,632,347 1,547,762 48,605 108,953,934 260 DEPARTMENT OF HUMAN RESOURCES General Administration and Support Activity Roles and Responsibilities The Division of General Administration and Support provides executive and policy direction and administrative support to all divisions and offices of the Department of Human 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 45,000 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 of personnel records. 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 ofthe U. S. Department of Health and Human Services and the State Department of Medical 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 longterm 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 incomebased eligibility criteria but are targeted to the most economically or socially needy individuals. Services are provided statewide through contracts with 17 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 CHILDREN--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. 1996, this program will provide 889 placements. ATTACHED AGENCIES 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 of Need review program which determines whether a proposed health care project conforms with state statute provisions and guidelines contained in the State Health Plan. The Developmental Disabilities Council is also attached to the department for administrative purposes. The council administers a federal grant program to initiate innovative programs for individuals with developmental disabilities. 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, 92-603 as amended, 97-35 as amended by 98-558 and 99-500, 100-223, 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. 261 DEPARTMENT OF HUMAN RESOURCES Public Health Financial Summary Expenditures, Current Budget and Agency Requests Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Children's Medical Services Kidney Disease Benefits Cancer Control Benefits Benefits for Medically Indigent High Risk Pregnant Women and Their Infants Family Planning Benfits Special Purpose Contracts Purchase of Service Contracts Grant-In-Aid To Counties Institutional Repairs and Maint. Postage Grants for Regional Maternal and Infant Care Medical Benefits Total Funds F.Y.1995 Expenditures 53,679,279 122,164,704 1,217,902 389,106 1,184,674 14,777,935 8,344,374 959,018 7,826,531 239,951 3,919,803 198,592 791,721 672,246 21,874,439 108,824,207 44,432 160,379 821,135 348,090,428 Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 170,090,276 40,407,966 549,718 48,500 211,096,460 136,993,968 1,469 7 F.Y.1996 Expenditures 53,727,117 125,660,249 1,306,500 176,227 1,300,959 18,013,951 7,801,255 1,318,464 F.Y.1997 Current Budget 53,056,899 75,199,603 930,954 501,177 1,425,278 4,211,123 1,646,431 1,245,044 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 49,101,349 74,424,278 814,393 195,367 1,424,178 4,618,201 1,665,296 1,235,561 997,709 39,985 28,334 27,000 56,311 12,870 2,500 50,099,058 74,464,263 842,727 195,367 1,451,178 4,674,512 1,678,166 1,238,061 682,869 20,388,563 133,367,488 37,339 220,570 580,732 12,733,517 127,510,020 34,500 118,167 280,732 12,172,423 122,601,451 34,500 101,086 3,581,775 367,583,326 4,462,872 283,656,317 4,350,354 273,019,169 168,766,363 50,067,369 549,718 32,500 219,415,950 148,167,376 1,412 7 122,543,833 5,834,494 549,718 128,928,045 154,728,272 1,219 7 121,695,210 4,126,560 549,718 126,371,488 146,647,681 1,122 7 2,085,291 280,732 12,172,423 124,686,742 34,500 101,086 3,250,000 4,350,354 276,269,169 121,695,210 4,126,560 549,718 3,250,000 20 126,371,488 149,897,681 1,142 7 262 DEPARTMENT OF HUMAN RESOURCES Public Health Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Children's Medical Services Kidney Disease Benefits Cancer Control Benefits Benefits for Medically Indigent High Risk Pregnant Women and Their Infants Family Planning Benfits Special Purpose Contracts Purchase of Service Contracts Grant-In-Aid To Counties Institutional Repairs and Maintenance Postage Grants for Regional Maternal and Infant Care Medical Benefits Adjusted Base 51,298,944 74,097,661 817,412 195,367 1,431,578 4,123,623 1,646,431 1,219,461 580,732 12,733,517 126,613,345 34,500 100,929 4,462,872 Redirection Level Funds To Redirect Additions (2,764,507) (27,982) (29,235) (7,400) (101,400) (735) (300,000) (561,094) (4,019,395) (538) (215,650) 300,000 Redirection Totals 48,534,437 74,069,679 788,177 195,367 1,424,178 4,022,223 1,645,696 1,219,461 Enhancements Totals 48,534,437 74,069,679 788,177 195,367 1,424,178 4,022,223 1,645,696 1,219,461 280,732 12,172,423 122,893,950 34,500 100,391 4,247,222 280,732 12,172,423 122,893,950 34,500 100,391 4,247,222 Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 279,356,372 121,695,210 4,126,560 549,718 126,371,488 152,984,884 1,158 7 (8,027,936) (8,027,936) (47) 300,000 271,628,436 121,695,210 4,126,560 549,718 300,000 126,371,488 145,256,948 1,111 7 271,628,436 121,695,210 4,126,560 549,718 126,371,488 145,256,948 1,111 7 263 DEPARTMENT OF HUMAN RESOURCES Public Health Functional Budget Summary 1. District Health Administration 2. Newborn Follow-up Care 3. Oral Health 4. Stroke and Heart Attack Prevention 5. Sickle Cell, Vision and Hearing 6. High Risk Pregnant Women and Infants 7. Sexually Transmitted Diseases 8. Family Planning 9. Women Infants and Children - Nutrition 10. Grant in Aid to Counties 11. Children's Medical Services 12. Emergency Health 13. Primary Health Care 14. Epidemiology 15. Immunization 16. Community Tuberculosis Control 17. Family Health Management 18. Infant and Child Health 19. Maternal Health - Perinatal 20. Chronic Disease 21. Diabetes 22. Cancer Control 23. Director's Office F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 12,977,348 12,847,673 12,352,530 12,222,855 1,415,696 1,200,865 1,427,936 1,213,105 1,526,075 1,203,900 333,853 11,678 2,302,385 1,189,773 2,243,522 1,130,910 4,221,570 3,822,751 3,897,891 3,499,072 5,359,085 5,212,085 5,149,542 5,037,542 2,246,333 310,879 2,263,550 312,874 10,611,336 5,744,320 10,693,235 5,787,686 83,023,436 83,127,565 66,525,208 65,486,672 61,957,139 60,883,915 13,332,554 6,556,247 13,039,139 6,262,832 3,240,976 1,892,263 3,055,249 1,706,536 1,782,019 1,683,117 1,487,837 1,387,796 578,695 425,913 583,207 429,495 1,009,244 1,018,102 6,040,468 4,643,502 6,070,619 4,661,037 925,227 751,792 837,810 662,951 1,189,590 516,528 1,046,185 371,420 2,455,855 1,045,487 2,474,774 1,056,994 474,068 474,068 402,603 402,603 556,495 556,495 559,516 559,516 4,851,648 4,851,648 4,638,052 4,638,052 1,253,612 264 1,001,257 1,179,265 926,910 DEPARTMENT OF HUMAN RESOURCES -- Functional Budget Summary Public Health 24. Health Program Management 25. Vital Records 26. Health Services Research 27. Environmental Health 28. Laboratory Services 29. Community Care 30. Community Health Management 31. AIDS 32. Vaccines 33. Drug and Clinic Supplies 34. Adolescent Health 35. Public Health - Planning Councils 36. Early Intervention 37. Injury Control 38. Public Health - Division Indirect Costs TOTAL APPROPRIATIONS F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1,968,815 1,920,136 1,797,147 1,748,468 1,956,452 1,718,713 1,974,193 1,734,366 2,707,960 2,485,142 2,720,540 2,497,722 1,204,242 692,369 1,448,250 936,377 6,241,647 6,091,647 5,964,515 5,814,515 2,790,348 1,035,695 164,148 164,148 166,497 166,497 9,856,546 5,107,508 9,908,914 5,118,352 8,898,597 7,843,045 3,250,000 2,493,380 3,250,000 2,493,380 3,259,555 2,135,951 3,275,320 2,151,716 174,591 157,094 103,220 85,723 12,857,587 10,627,999 12,905,035 10,657,627 426,906 216,973 432,639 222,144 (1,535,718) (1,535,718) 283,656,317 154,728,272 271,628,436 145,256,948 265 DEPARTMENT OF HUMAN RESOURCES Public Health Activity Roles and Responsibilities 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 serves: 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 1,800,000 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 of Public Health include: Preventing, controlling and treating a variety of diseases and afflictions which affect physical health, including cancer, diabetes, hear 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 of Public Health have evolved to be so broad and varied, there has been much discussion about what the basic role of Public 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. 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 causes of problems and health care needs, 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, 889-564 as amended. 95-623,95-627,96-212 as amended, 96-510, and 99-457. 266 DEPARTMENT OF HUMAN RESOURCES Rehabilitation Services Financial Summary Expenditures, Current Budget and Agency Requests Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Case Services ESRP Case Services Special Purpose Contracts Purchase of Service Contracts Institutional Repairs & Maint. Utilities Postage Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 71,084,328 11,447,266 1,432,176 68,582 1,075,366 4,139,384 8,785,647 3,853,782 1,800,006 1,685,822 25,524,800 26,992 692,387 9,474,820 318,353 820,948 535,431 142,766,090 92,968,704 27,303,030 100,000 120,371,734 22,394,356 1,848 72 F.Y.1996 Expenditures 73,014,439 11,582,913 1,622,852 188,705 551,334 4,494,301 8,249,738 2,992,154 2,218,954 83,000 25,463,910 713,163 11,175,547 592,461 885,277 458,035 144,286,783 F.Y.1997 Current Budget 78,104,604 12,526,958 1,218,988 83,000 743,880 4,816,685 7,939,678 2,457,974 1,697,134 25,722,363 705,245 11,323,436 215,000 937,269 817,786 149,310,000 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 75,149,985 11,607,908 1,388,307 50,582 751,574 4,117,555 7,971,447 2,994,916 2,038,541 75,149,985 11,607,908 1,388,307 50,582 751,574 4,117,555 7,971,447 2,994,916 2,038,541 39,875,849 1,423,001 41,298,850 211,150 1,837,649 205,000 759,650 823,695 149,783,808 600,000 2,100,400 4,123,401 211,150 2,437,649 2,305,400 759,650 823,695 153,907,209 92,245,237 27,833,559 100,000 20,000 120,198,796 24,087,987 1,848 73 97,629,360 27,789,130 100,000 125,518,490 23,791,510 1,819 73 98,331,684 27,044,005 100,000 125,475,689 24,308,119 1,712 73 4,123,401 98,331,684 27,044,005 100,000 125,475,689 28,431,520 1,712 73 267 DEPARTMENT OF HUMAN RESOURCES Rehabilitation Services Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Case Services ESRP Case Services Special Purpose Contracts Purchase of Service Contracts Institutional Repairs & Maint. Utilities Postage Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 75,419,685 11,607,908 1,388,307 50,582 751,574 4,117,555 7,796,407 2,994,916 2,038,541 29,080,191 705,245 11,546,350 205,000 759,650 823,695 149,285,606 98,211,895 27,044,005 100,000 125,355,900 23,929,706 1,717 73 Redirection Level Funds To Redirect Additions (269,700) (24,960) 200,000 (494,095) (1,163,742) 1,017,360 440,477 (1,952,497) 1,657,837 119,789 119,789 (2,072,286) (5) 1,657,837 Redirection Totals 75,149,985 11,607,908 1,388,307 50,582 751,574 4,117,555 7,971,447 2,994,916 2,038,541 0 29,080,191 1,017,360 211,150 10,823,085 205,000 759,650 823,695 148,990,946 Enhancements Totals 75,149,985 11,607,908 1,388,307 50,582 751,574 4,117,555 7,971,447 2,994,916 2,038,541 0 29,080,191 1,017,360 211,150 10,823,085 205,000 759,650 823,695 148,990,946 98,331,684 27,044,005 100,000 125,475,689 23,515,257 1,712 73 98,331,684 27,044,005 100,000 125,475,689 23,515,257 1,712 73 268 DEPARTMENT OF HUMAN RESOURCES Rehabilitation Services Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Vocational Rehabilitation Services 2. Independent Living 3. Sheltered Employment 4. Community Facilities 5. State Rehabilitation Facilities 51,461,476 919,558 516,005 10,185,560 7,074,449 10,230,583 607,201 516,005 3,630,710 1,153,558 60,353,940 718,949 275,528 9,318,131 13,062,160 283,969 275,528 2,763,281 6. Diversified Industries of Georgia 7. Program Direction and Support 8. Grants Management 9. Disability Adjudication 10. Georgia Factory for the Blind 11. Roosevelt Warm Springs Institute TOTAL APPROPRIATIONS 809,166 4,377,562 714,540 35,629,124 12,614,904 25,007,656 149,310,000 1,348,865 714,540 900,703 4,689,345 23,791,510 4,485,640 220,445 35,885,412 12,560,539 25,172,362 148,990,946 1,374,298 220,445 839,897 4,695,679 23,515,257 269 DEPARTMENT OF HUMAN RESOURCES Rehabilitation Services Activity Roles and Responsibilities The Division of Rehabilitation Services (DRS) provides services to individuals who have a physical or mentai disability that negatively impacts their employability. As required by the 1992 amendments to the federal Rehabilitation Act, the Division gives priority to those with the most severe disabilities. DRS also provides speakers, seminars and consultation to state and local governments, employers and consumer organizations regarding the Americans with Disabilities Act. VOCATIONAL REHABILITATION Comprehensive services designed to rehabilitate disabled individuals are provided in 53 field offices in eight districts and six rehabilitation facilities operated by the state. Additionally, the Division contracts with 22 private nonprofit facilities located across the state. Services include vocational assessment, the development of an individually written rehabilitation plan based on service needs, medical treatment, psychological services, vocational and academic training, counseling, interpreter services for the deaf, reader services for blind individuals, work adjustment training, equipment and job placement. ALTERNATIVE EMPLOYMENT SERVICES While employment in the public and private sectors is the major emphasis of the placement process, there are alternative programs for people who are currently unable to work in the competitive labor market. The Supported Employment Program offers support and services for individuals whose disabilities are so severe as to have precluded immediate entry or re-entry into the competitive workforce. Through temporary job coaches and supports within the community, a person can learn necessary job skills while working in a real job setting. The Georgia Industries for the Blind provides training and employment in manufacturing and services to afford citizens who are blind the opportunity to learn job skills that can be used in the private sector. Plants are located in Bainbridge, Griffm and Atlanta. The Business Enterprises Program provides employment opportunities for persons who are blind or visually impaired to become independent business people operating vending facilities throughout the state. The federal Randolph Shephard Act gives priority to blind individuals in federal buildings and requires that the Director of the Vocational Rehabilitation Program be the state licensing agency. INDEPENDENT LIVING The Independent Living Program coordinates services to individuals with severe disabilities to assist them in becoming independent in the local community. Preventing and/or removing people from nursing home care is one of the major functions of the Independent Living Program. Services are provided through contracts with seven nonprofit agencies in Atlanta, Albany, Augusta, Columbus, Gainesville, Macon and Savannah. Additionally, the Division operates a residential treatment program at the Roosevelt Warm Springs Institute. ROOSEVELT WARM SPRINGS INSTITUTE The Institute is a statewide comprehensive rehabilitation facility which serves people with severe disabilities. Major programs include a 78-bed hospital, a 215-bed vocational rehabilitation unit, a 15-bed inpatient head injury unit, a statewide Spinal Cord/Head Injury Registry, an industrial rehabilitation program, outpatient service and five satellite clinics. Also located at the Roosevelt Warm Springs Institute is the new Center for Therapeutic Recreation complex, which opened in the fall of 1996. The complex can serve over 200 patients, students and other Georgians with disabilities daily, providing the therapeutic benefits of recreation while enhancing their independent living skills. The Institute is a major participant in the Learning Disabilities Grant which will fund a research and training center at the Institute for adults with learning disabilities. DISABILITY ADJUDICATION The Disability Adjudication Unit, which is 100 percent federally funded, performs disability determination for Georgians who apply for disability benefits administered by the Social Security Administration. AUTHORITY U.S. Vocational Rehabilitation Act of 1973, as amended; Georgia Rehabilitation Act, Title 30-2 and Title 49-9, Official Code of Georgia Annotated, Public Laws 93-112, 93-516, 94-230, 95-602, 98-221, 99-506, 100230 and the Social Security Act, as amended. 270 DEPARTMENT OF HUMAN RESOURCES Family and Children Services Financial Summary Expenditures, Current Budget and Agency Requests Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Equipment Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Children's Trust Fund Cash Benefits Special Purpose Contracts Service Benefits for Children Purchase of Service Contracts Postage County DFCS-Operations Total Funds F.Y.1995 Expenditures 45,361,969 38,274,544 1,202,735 F.Y.1996 Expenditures 48,031,414 7,160,254 1,237,352 F.Y.1997 Current Budget 47,464,566 4,742,042 1,167,632 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 45,629,382 4,597,262 1,200,818 1,568,805 10,576,057 48,460 47,198,187 15,173,319 1,249,278 633,829 2,802,344 32,541,239 35,665,668 3,190,366 3,069,021 431,532,106 5,220,770 152,479,056 24,172,276 3,753,604 284,761,758 1,064,661,285 15,500 674,955 3,150,336 27,398,108 29,235,867 9,389,744 3,824,967 405,138,456 6,525,460 182,569,943 26,265,353 4,080,597 299,012,590 1,053,710,896 400,080 3,519,841 19,572,831 28,841,929 10,406,881 2,342,103 413,875,732 6,344,858 212,877,671 14,363,035 4,425,956 296,162,273 1,066,507,430 377,856 3,528,590 19,638,384 27,707,929 9,803,721 2,343,550 390,272,891 5,853,238 211,704,666 11,302,282 2,398,212 300,446,988 1,036,805,769 5,433 40,743 1,542,443 6,916,190 513,160 360,573 14,240,145 7,882,621 43,694,630 383,289 3,569,333 21,180,827 34,624,119 10,316,881 2,343,550 390,272,891 6,213,811 225,944,811 11,302,282 2,398,212 308,329,609 1,080,500,399 Less Federal & Oth.:r Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 575,993,651 96,831,753 2,565,582 55,500 675,446,486 389,214,799 1,322 98 570,643,037 69,591,064 2,565,582 35,000 642,834,683 410,876,213 1,262 98 586,604,198 58,502,960 2,565,582 647,672,740 418,834,690 1,269 98 569,207,460 56,409,129 2,565,582 0 628,182,171 408,623,598 1,223 98 11,949,939 8,576,998 581,157,399 64,986,127 2,565,582 20,526,937 23,167,693 33 648,709,108 431,791,291 1,256 98 271 DEPARTMENT OF HUMAN RESOURCES Family and Children Services Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Children's Trust Fund TANF Benefits Special Purpose Contracts Service Benefits for Children Purchase of Service Contracts Postage Grants to County DFCS-Operations Total Funds Adjusted Base 47,782,619 4,742,042 1,267,632 400,080 3,716,989 20,351,495 28,841,929 10,406,881 2,343,550 411,205,262 6,304,858 211,704,666 12,565,614 4,325,956 297,716,301 1,063,675,874 Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 582,349,398 58,949,621 2,565,582 643,864,601 419,811,273 1,270 98 Redirection Level Funds To Redirect Additions (612,696) (17,117) (23,354) (16,791) (147,656) (406,869) (90,000) 16,156,764 344,735 (41,550,927) (451,620) (798,332) (1,551,868) (410,000) 1,838,312 6,222,939 6,100,070 7,991,008 Redirection Totals 47,169,923 4,724,925 1,244,278 383,289 3,569,333 36,101,390 29,186,664 10,316,881 2,343,550 371,492,647 5,853,238 217,927,605 17,867,352 2,774,088 305,297,309 (46,077,230) 38,653,828 1,056,252,472 (4,128,081) (59,913) (4,187,994) (41,889,236) (15) 23,459,344 23,459,344 15,194,484 601,680,661 58,889,708 2,565,582 663,135,951 393,116,521 1,255 98 Enhancements Totals 47,169,923 4,724,925 1,244,278 383,289 3,569,333 36,101,390 29,186,664 10,316,881 2,343,550 371,492,647 5,853,238 217,927,605 17,867,352 2,774,088 305,297,309 1,056,252,472 601,680,661 58,889,708 2,565,582 663,135,951 393,116,521 1,255 98 272 DEPARTMENT OF HUMAN RESOURCES Family and Children Services Functional Budget Summary L Directors Office 2. Social Services 3. Administrative Support 4. Quality Assurance 5. Community Services 6. Field Management 7. Human Resources Management 8. Public Assistance 9. Employment Services 10. Child Support Recovery 11. AFDC Payments 12. SSI Supplemental Benefits 13. Refugee Programs 14. Energy Benefits 15. County DFCS Operations-Eligibility 16. Grants to Counties for Social Services 17. Food Stamp Issuance 18. Homemaker Projects 19. County DFCS Operations-Joint and Admin. 20. Grants to Counties-Employability 21. Employability Benefits 22. Legal Services 23. Family Foster Care F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 552,343 552,343 555,645 555,645 4,361,986 3,834,883 4,304,199 3,806,890 6,264,527 5,225,131 4,720,358 4,272,177 4,002,531 4,002,531 4,048,258 4,048,258 11,093,303 480,299 10,536,672 256,299 1,108,604 1,108,604 186,276 186,276 3,433,097 2,541,080 3,146,469 2,254,452 31,094,161 13,414,221 30,888,394 13,489,845 1,502,428 1,502,428 1,516,826 1,516,826 66,523,060 5,226,150 74,963,314 8,077,607 402,036,612 154,222,350 361,202,085 117,921,477 100 100 1,122,012 1,122,012 2,799,420 2,799,420 9,893,600 7,223,130 112,643,816 56,355,568 115,303,494 56,908,659 91,858,619 35,606,623 94,760,252 35,629,745 3,190,752 3,190,752 8,435,211 2,586,800 8,100,101 2,199,267 63,945,236 32,601,872 65,487,422 32,357,099 19,279,391 8,017,486 21,646,040 8,072,596 26,830,224 11,206,449 40,407,515 16,011,742 3,190,503 2,420,990 3,190,503 2,420,990 29,784,476 273 16,550,750 31,146,811 17,443,436 DEPARTMENT OF HUMAN RESOURCES -- Functional Budget Summary Family and Children Services 24. Institutional Foster Care 25. Specialized Foster Care 26. Adoption Supplement 27. Prevention of Foster Care 28. Day Care 29. Special Projects 30. Children's Trust Fund 31. Indirect Costs TOTAL APPROPRIATIONS F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 9,618,969 6,313,935 9,584,396 5,990,845 5,161,293 4,248,383 5,096,810 4,199,051 12,468,472 9,374,838 17,171,065 13,163,638 11,544,785 7,408,642 11,544,785 7,408,642 118,285,892 38,486,937 117,320,622 38,486,937 3,261,916 2,165,709 2,745,296 1,649,089 2,342,103 2,342,103 2,343,550 2,343,550 (8,962,515) (8,676,529) 1,066,507,430 418,834,690 1,056,252,472 393,116,521 274 DEPARTMENT OF HUMAN RESOURCES Family and Children Services Activity Roles and Responsibilities 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 of family and children services in each of the 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 in 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. EMWLOYMENTPROGRAMS DFCS is the state agency responsible for conducting the state's program under the provisions of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Title I, Temporary Assistance for Needy Families (TANF). The program replaces Aid to Families with Dependent Children (AFDC). The primary goal of the program is to assist needy families to become self-supporting through job preparation, work and prevention of out of wedlock pregnancies. Beginning January I, 1997, assistance will be provided in the following manner: work activities that will include job search, job training, and assistance with job placement; support services such as child care, vouchers for housing, transportation, emergency needs and other necessary expenditures that will assist the family toward work and prevent the need for cash assistance; and, cash assistance in the form of Georgia Temporary Support Grants which will be provided either by check or electronic benefit transfer. The identified services will be available in all political subdivisions in the state. Services will be directed by the county Department of Family and Children Services in collaboration with other local public and private agencies. A range of job placement, job preparation and support services are available in each subdivision but vary in content based on local resource availability. Once a recipient is determined ready for work or has been receiving cash assistance for 24 months, the recipient will be reqUired to participate in work activities. If appropriate work or jobpreparation activities are not available, participation in community service will be required. All services are provided in keeping with the goal of reducing dependency by assisting recipients in leaving cash assistance as soon as possible and by diverting applicants from joining the rolls at application. 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 parents and their children. In 1996, $302.6 million was collected from absent parents for the support of their children. Operating expenses totaled $64.2 million, of which $6.4 million were state funds. The program operates from 71 offices in 47 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. SOCIAL SERVICES DFCS caseworkers receive approximately 78,000 reports of child abuse and neglect annually. The staff investigate reports and assess the level of risk the family situation poses to the child. If danger exists, a foster home or emergency shelter placement is found to provide temporary care. Over 17,000 children are in the protective custody of the state at any given time. Children whose parents have relinquished custody to DHR, those of parents whose rights have been terminated by the judicial system or who otherwise are without parental support are available for adoption through the state. Many of these children are classified as special needs children and qualify for a supplemental payment after adoption. The adoption supplement provides payment at 75 percent of the foster care rate in order to help adoptive parents care for their special needs child. Over 600 children were placed in adoptive homes through the state inF.Y. 1996. AUTHORITY Titles IS-II, 19-7-5, 19-8, 19-9,29-5-2,30-5,31-7-2,38-329, 39-4, 49-2, 49-3, 49-4-3, and 49-5, Official Code of Georgia Annotated; and Public Laws 93-288, 95-113, ~6-272, 96-422, 97-35, 98-558, 100-203, 100-485, 104-193 and 49 Stat., 620 as amended. 275 DEPARTMENT OF HUMAN RESOURCES Mental Health, Mental Retardation and Substance Abuse Financial Summary Expenditures, Current Budget and Agency Requests Budget Classes/Fund Sources Personal Services Motor Vehicle Equip. Purchases Operating Expenses Major Maint. & Construction Community Services Utilities Total Funds F.Y.1995 Expenditures 352,305,832 999,647 69,829,198 2,115,361 250,950,961 11,281,615 687,482,614 Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 75,657,163 144,015,057 2,404,100 57,500 222,133,820 465,348,794 11,466 1,407 F.Y.1996 Expenditures 360,056,036 879,826 68,475,989 1,992,056 272,715,444 11,673,809 715,793,160 F.Y.1997 Current Budget 357,049,454 769,533 58,428,400 2,127,790 271,270,434 11,531,274 701,176,885 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 341,017,963 769,533 58,103,975 2,127,790 301,599,425 11,531,274 950,000 32,205,600 679,325 341,017,963 769,533 59,053,975 34,333,390 302,278,750 11,531,274 715,149,960 33,834,925 748,984,885 66,687,210 148,352,562 2,404,100 15,000 217,458,872 498,334,288 11,508 1,407 64,281,564 115,084,182 2,404,100 181,769,846 519,407,039 10,791 1,411 62,998,898 114,508,996 2,404,100 179,911,994 535,237,966 10,274 1,411 62,998,898 114,508,996 2,404,100 33,834,925 179,911,994 569,072,891 10,274 1,411 276 DEPARTMENT OF HUMAN RESOURCES Mental Health, Mental Retardation and Substance Abuse Financial Summary Budget ClasseslFund Sources F.Y.1998 Governor's Recommendations Adjusted Base Redirection Level Funds To Redirect Additions Redirection Totals Personal Services Motor Vehicle Equip. Purchases Operating Expenses Major Maint. & Construction Community Services Utilities Total Funds 346,397,246 769,533 58,254,638 2,127,790 274,751,073 11,531,274 693,831,554 (11,426,524) (324,425) (11,750,949) 12,143,936 12,143,936 334,970,722 769,533 57,930,213 2,127,790 286,895,009 11,531,274 694,224,541 Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds 62,998,898 114,975,053 2,404,100 180,378,051 513,453,503 2,030,936 2,030,936 (13,781,885) 1,000,000 1,000,000 11,143,936 63,998,898 117,005,989 2,404,100 183,408,987 510,815,554 Positions Motor Vehicles 10,272 1,411 (804) 9,468 1,411 Enhancements Totals 334,970,722 769,533 57,930,213 2,127,790 286,895,009 11,531,274 694,224,541 63,998,898 117,005,989 2,404,100 183,408,987 510,815,554 9,468 1,411 277 DEPARTMENT OF HUMAN RESOURCES Mental Health, Mental Retardation and Substance Abuse Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE I. Southwestern State Hospital 41,118,429 27,559,895 39,760,923 26,202,389 2. Brook Run 31,697,562 15,686,376 23,416,719 7,405,533 3. Georgia Mental Health Institute 24,418,273 22,833,002 24,702,779 23,117,508 4. Georgia Regional Hospital at Augusta 22,559,920 21,097,938 20,732,676 19,270,694 5. Northwest Regional Hospital at Rome 28,878,781 22,644,261 27,621,549 21,387,029 6. Georgia Regional Hospital at Atlanta 30,082,764 25,949,981 29,753,236 25,620,453 7. Central State Hospital 130,641,723 91,630,036 125,142,770 86,131,083 8. Georgia Regional Hospital at Savannah 20,584,213 19,261,321 19,639,042 18,316,150 9. Gracewood State School and Hospital 53,750,312 26,480,201 52,207,192 22,906,145 10. West Central Georgia Regional Hospital 20,408,161 17,982,096 20,057,775 17,631,710 II. State Administration 10,971,780 7,092,450 11,007,649 7,128,319 12. Outdoor Therapeutic Program 3,995,292 3,086,357 4,023,098 3,114,163 13. Regional Offices 5,336,056 4,694,825 4,707,199 4,065,968 14. Metro Drug Abuse Centers 1,778,242 1,521,588 1,040,915 893,390 15. Community Mental Health Services 118,753,279 112,737,439 136,069,040 130,053,200 16. Community Mental Retardation Services 100,036,063 67,580,918 96,215,178 65,042,699 17. Community Substance Abuse Services 56,166,035 31,568,355 58,126,801 32,529,121 TOTAL APPROPRIATIONS 701,176,885 519,407,039 694,224,541 510,815,554 RECOMMENDED APPROPRIATION: The Department of Human Resources is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $1,181,658,214. 278 DEPARTMENT OF HUMAN RESOURCES Mental Health, Mental Retardation and Substance Abuse Activity Roles and Responsibilities 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 selfsufficiency. SERVICE DELIVERY SYSTEM The division is responsible for setting policy regarding the use of all federal and state funds and will maintain policy oversight. The regional boards are responsible for service planning, coordinating, contracting and resource allocation functions. The division and the regional planning boards are responsible for setting outcome measures and monitoring and evaluating the achievements of service providers. Twenty-eight 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 10,536 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 3,997, for all institutions, they serve 22,000 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 community mental health center clinic sites, mental retardation day training centers, detoxification units, 28-day treatment programs for substance abusers, 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, adults addicted to alcohol or other drugs and teens with alcohol and drug problems. 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 staff develop 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 other public and private services. Additionally, community staff screen patients for admission to regional hospitals and give follow-up care to patients who are discharged from the hospitals. The community service programs are comprised of 225 state staff and over 10,000 local staffwho provide services to approximately 125,000 mentally ill, 14,000 mentally retarded and 43,000 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. 279 DEPARTMENT OF HUMAN RESOURCES Results-Based Budgeting Program Summaries TEMPORARY ASSISTANCE AND EMPLOYMENT SUPPORTS PURPOSE: Provide necessary assistance to needy families with children on a temporary basis, enforce parental responsibility and provide parents with job preparation, work opportunities, daycare for their children and other support services to enable them to become self-sufficient. GOALS Increase the number of recipients becoming employed and leaving the program. Provide supports to former recipients and those at risk to maintain employment. Reduce the average monthly payment. Reduce expenditures for cash assistance CHILD SUPPORT ENFORCEMENT PURPOSE: Reduce welfare dependency by enforcing child support payments to assist welfare families in becoming economically independent and low income families in avoiding the need for welfare. GOALS Increase the collections of child support. Reduce the number of families on Temporary Assistance for Needy Families (TANF). Reduce the average monthly TANF payment. SUPPORTED EMPLOYMENT PURPOSE: Provide intensive work supports to assist individuals with severe disabilities to become part of the competitive workforce. GOALS Increase the number of severely disabled individuals who access and maintain competitive employment. Increase the awareness among the business community of the work capabilities of the disabled. VOCATIONAL REHABILITATION PURPOSE: Provide comprehensive rehabilitation services, including medical treatment, vocational and academic training, work adjustment training, equipment and job placement, to assist severely disabled individuals in achieving personal independence through employment. GOALS Increase the number of severely disabled individuals who complete the vocational rehabilitation program and obtain employment. Increase the number of Georgians with disabilities who are removed from Social Security due to employment. Increase the number of employers who are aware of the vocational rehabilitation program. 280 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting SENIOR COMMUNITY SERVICE EMPLOYMENT PURPOSE: Create partnerships with community agencies which provide part-time community service work assignments that promote marketable job skills and economic independence for low income persons who are 55 years of age or older. GOALS Increase the number of enrollees performing useful community services while earning wages equal to or greater than the minimum wage. Increase the number of enrollees who transition to competitive employment. INDEPENDENT LIVING PURPOSE: Provide a comprehensive array of home and community-based alternatives to assist elderly and disabled individuals to live independently and to avoid institutionalization. GOALS Reduce Georgia's Medicaid budget for long-term care by delaying or preventing costly institutionalization and by providing services to low-income elderly at risk of becoming Medicaid eligible. Increase the numbers/percentage of persons who are able to select community-based options over institutional care. Provide services which are appropriate to the health needs of consumers and to adequately maintain health status outside an institutional setting. Target resources to those in greatest economic or social need. Increase access to services, benefits and elder rights/protection through expanded information, assistance and counseling programs. Increase support services that assist families and others to maintain their roles as the clients' primary care givers. Provide individualized personal assistance to assist clients to become gainfully employed and to fully participate in their communities while reducing their dependence on public assistance. Provide employment in a sheltered setting for those individuals who cannot be placed in competitive employment. CHILD PROTECTION AND PLACEMENT SERVICES PURPOSE: Secure a safe permanent home for children referred to child protective services and prevent any instance of repeat child neglect or abuse. GOALS Investigate reports of child abuse or neglect promptly. Improve diagnostic assessments of the needs of children referred to child protection services. Provide services to address family problems in order to allow children to stay with or be returned to their families. Protect children from abuse by removing them from violent or potentially violent family settings. Provide temporary foster homes for children whose birth parents cannot or will not care for them. Move more quickly to terminate parental rights upon evidence of non-cooperation. Find permanent adoptive homes for children in custody of the state. Expand preventive activities so that children at risk are identified before serious maltreatment occurs. ADULT PROTECTIVE SERVICES PURPOSE: Prevent repeat incidences of abuse and exploitation of elderly and/or disabled adults. 281 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting GOALS Promptly investigate reports of abuse, neglect and exploitation of elderly and disabled adults. Arrange for needed social services and! or placement services. Increase public awareness of the problem of abuse and exploitation of elderly and disabled adults. FOOD STAMP PROGRAM PURPOSE: Assure that families living at or near the poverty level are able to purchase adequate food for nutritious diets. GOALS Meet federal standards for accuracy and promptness of eligibility determination. HOME ENERGY ASSISTANCE PURPOSE: Provide financial assistance to low income families or households to help meet the cost of home energy. GOALS Direct energy assistance funds to low-income households in an equitable manner, targeting those most in need. Manage program funds in a way that maximizes service to target households. TEMPORARY AND EMERGENCY SHELTERS PURPOSE: Provide support to community-based shelters for homeless families and for women and their children who are victims of family violence. GOALS Provide shelter to all women who need to remove themselves from a violent home. Refer homeless families to appropriate social service agencies to obtain economic support and assistance in fmding more permanent housing. Offer comprehensive services to victims of family violence at shelter sites. HOMEMAKER SERVICES PURPOSE: Assist individuals to live independently in their own homes and teach parenting skills in support of child protective services. GOALS Prevent unnecessary institutional placement of elderly and disabled adults by providing housekeeping, personal care services, shopping and transportation assistance. Prevent incidences of child neglect. 282 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting DISABILITY ADJUDICATION PURPOSE: Determine medical eligibility and/or vocational functional capacity for Georgia's Social Security and Supplemental Security Income citizens based on regulations and guidelines established by the Social Security Administration. GOALS Meet or exceed federal guidelines for timeliness, accuracy, cost efficiency and quality assurance with regard to disability detenninations. REFUGEE ASSISTANCE PURPOSE: Provide cash assistance to refugees in need of transitional services. GOALS Reduce welfare dependency. Assist refugees in obtaining full-time employment. EARLY INTERVENTION SERVICES FOR DISABLED CHILDREN PURPOSE: Provide early intervention and rehabilitation services to children and their families in order to correct or minimize developmental delays and disabilities. GOALS Increase access to early intervention services through expanded outreach efforts. Help families cope with the responsibilities of a disabled child. Improve cognitive, adaptive, physical and/or speech functioning. TEENAGE PREGNANCY PREVENTION PURPOSE: Develop and sustain a teen pregnancy prevention campaign linking families, communities, public and private agencies. GOALS Reduce the rate of pregnancy among Georgia teens. Reduce the number of teens under 16 who become sexually active. Reduce the number ofteen mothers that have a second pregnancy. FAMILY PLANNING PURPOSE: Provide direct services to enable women and families to plan and space their children in order to improve the health of women and children and to reduce welfare dependency. 283 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting GOALS Reduce the number of unintended pregnancies. Improve birth outcomes through health promotion. Promote the health of mothers by providing basic reproductive health care. Reduce welfare dependency by enabling families to postpone childbearing until economically self sufficient. MATERNAL AND CHILD HEALTH PURPOSE: Reduce health problems prevalent among low income pregnant women, infants and children by increasing the number of Medicaid-eligible pregnant women receiving prenatal care; by providing a comprehensive array of perinatal services to low income pregnant women and their infants; and by providing supplemental food and nutritional education to low income pregnant, postpartum and breast feeding women, infants and children under 5 (WIe). GOALS Reduce infant mortality and morbidity. Reduce maternal mortality and morbidity. Increase the number of pregnant women receiving prenatal care during the first trimester. Reduce the incidence oflow birthweight babies. Increase the number of breast fed infants. SUBSTANCE ABUSE PREVENTION PURPOSE: Provide financial and technical assistance to communities and schools for the development and implementation of substance abuse prevention programs. GOALS Reduce the number of school-age children and adolescents using drugs and alcohol (Drug-Free Schools). Promote child health, child development, school performance, family functioning and economic capacity by preventing substance abuse. Reduce debilitating health problems associated with substance abuse. FAMILY CONNECTION/CHILDREN'S POLICY COUNCIL PURPOSE: Establish strong family, community, school and government linkages to serve at-risk children and their families. GOALS Improve child health and development. Improve school performance. Improve family functioning. Improve family economic capacity. 284 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting IMMUNIZATIONS PURPOSE: Establish a vaccination delivery system that improves and maintains high coverage levels in order to eliminate diseases preventable by vaccines. GOALS Eliminate indigenous cases of six vaccine preventable diseases; specifically, diphtheria, hemophilus influenza type B, measles, polio, rubella and tetanus. Increase vaccination coverage levels in public health clinics, day care centers and schools. STROKE AND HEART ATTACK PREVENTION PURPOSE: Educate and motivate adults at risk for cardiovascular disease to prevent or delay the development of heart disease, stroke and other chronic diseases by practicing healthy behaviors such as exercise, proper nutrition, smoking cessation, and controlling blood pressure. GOAL Reduce disability and premature death due to stroke, heart attack and kidney disease. AIDS OUTREACH PURPOSE: Provide training, education, support and prevention services through a statewide network of state, district, county and private organizations to those people deemed at highest risk for acquiring HIV disease. GOALS Improve the availability of HIV counseling, testing and partner notification services to persons who have behaviors that put them at risk. Reduce the spread of HIV infection. INJURY CONTROL PURPOSE: Support the injury control efforts of local public/private coalitions to increase the use of safety equipment and promote safety. GOALS Reduce the personal and fmancial costs of deaths and disabilities due to car crashes and other sources of injury. Increase child safety seat usage. CHILDREN 1ST PURPOSE: Establish a comprehensive statewide system to improve outcomes for all children and families through early identification, linkage to appropriate services, and on-going monitoring of progress. 285 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting GOALS Contact all families at the time of the birth of a child in order to identify infants with conditions which place them at risk for poor health and/or development. Improve child health and development. PREVENTIVE DENTAL HEALTH SERVICES PURPOSE: Improve oral health by maintaining community water supply fluoridation at the optimal levels. GOALS Reduce tooth decay and tooth loss. Reduce cost of dental treatment. HOSPITAL-BASED TREATMENT: CHILD AND ADOLESCENT SERVICES PURPOSE: Provide acute inpatient psychiatric services to severely emotionally disturbed children and adolescents who are most in need and cannot receive these services in the community. GOALS Improve personal behavior through individualized evaluation and stabilization services. Reduce the use of more restrictive interventions. Enable the child or adolescent to return to the community with an improved level of functioning. HOSPITAL-BASED TREATMENT: ADULT MENTAL HEALTH PURPOSE: Provide short-term or extended psychiatric, psychological, medical, nursing and other professional treatment services to those severely mentally ill and/or substance abusing persons whose behavior or disorder is so serious as to require 24-hour, highly structured care which cannot be provided in a less restrictive community program. GOALS Reduce or eliminate each individual's symptoms to the extent that he/she is able to be discharged to a less restrictive, more cost effective community setting. Educate patients and their families about their illness and the most effective form of strategies which will allow them to reduce their reliance on restrictive hospital care. INSTITUTION-BASED TREATMENT: MENTAL RETARDATION PURPOSE: Provide care, oversight and habilitation services for individuals with mental retardation who require intensive medical services and 24-hour care and training. GOALS Prepare patients for eventual placement in communities. Reduce the bed capacity in MR institutions and hospital units. 286 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting COMMUNITY-BASED TREATMENT: OUTDOOR THERAPEUTIC PURPOSE: Provide treatment in an outdoor therapeutic setting which promotes growth through challenge, education, and positive reinforcement to youth with emotional problems. GOALS Improve personal behavior, academic achievement and family functioning. Reduce criminal behavior. Avoid the use ofmore restrictive treatment settings. COMMUNITY TREATMENT: ADULT MENTAL HEALTH SERVICES PURPOSE: Provide a comprehensive array of community-based services which reduce the symptoms of mental illness and promote independent living skills. GOALS Improve access to needed community services and supports. Improve social and vocational functioning. Reduce hospital admissions. COMMUNITY TREATMENT: CmLD AND ADOLESCENT SERVICES PURPOSE: Provide a comprehensive array of community-based services which reduce the disabling effects of emotional problems and mental illness for children, adolescents and their families. GOALS Improve access to needed community services and supports. Decrease reliance on hospitalization and institutional placements. COMMUNITY TREATMENT: SUBSTANCE ABUSE PURPOSE: Provide a comprehensive array of community-based services necessary to achieve abstinence and to return to productivity. GOALS Improve access to needed community services and supports. Reduce the detrimental consequences of untreated substance abuse such as health care costs, crime, unemployment and poor school performance. Reduce hospital admissions for substance abuse. MULTI-AGENCY TEAM FOR CHILDREN PURPOSE: Arrange for and purchase residential treatment for severely emotionally disturbed children. 287 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting GOALS Increase the percent of children leaving the program to a less restrictive setting. Prevent or reduce hospitalization. HOSPITAL SERVICES FOR THE DISABLED PURPOSE: Provide medical rehabilitation services at the Roosevelt Warm Spring Institute for Rehabilitation which enable disabled persons to achieve personal independence. GOALS Reduce hospital readmissions and average length of stay. Improve functional independence. Maintain functional independence through appropriate outpatient hospital services. AIDS TREATMENT PURPOSE: Provide a comprehensive array of outpatient & ambulatory care to persons with HIV disease to improve/maintain the person's quality of life. GOALS Increase access to appropriate services. Prevent costly hospitalizations. Support secondary prevention activities to further reduce HIV transmission. Increase the life expectancy for those diagnosed with HIV. OUTPATIENT TREATMENT OF TUBERCULOSIS PURPOSE: Provide treatment and prevention services through local patient management. GOALS Reduce the incidence oftuberculosis. Eliminate the need for long-term hospitalization. Increase awareness of tuberculosis among health care providers. CHILDREN'S MEDICAL SERVICES PURPOSE: Provide a system of specialized medical treatment for children with chronic conditions whose service needs require complex medical/social interventions to obtain appropriate care. GOALS Promote health, normal development and independence for children with chronic medical conditions. Assure that the medical needs of children with chronic conditions are appropriately met by managed health care systems. 288 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting PRIMARY HEALTH CARE FOR THE HOMELESS PURPOSE: Improve the health status of homeless people in Savannah and the metro Atlanta area through provision of primary health care. GOALS Reduce the incidence of health problems among the homeless population. Increase access to health education and prevention services. DENTAL HEALTH TREATMENT PURPOSE: Improve oral health through the provision of dental treatment to low income children and prenatal patients. GOALS Reduce the incidence of tooth decay and tooth loss among this population. Reduce the need for more expensive treatment by providing dental screenings and early dental treatment. CHRONIC DISEASE BENEFITS PURPOSE: Reimburse private providers for treatment of cancer patients with early stage disease and adults with cystic fibrosis who are deemed in need and likely to benefit. GOALS Assure access to appropriate medical care for low income patients. Prevent premature death. REGULATION OF HEALTH CARE AND CHILD CARE FACILITIES PURPOSE: Inspect, monitor, license, register, and certify a variety of health and child care facilities to ensure that these facilities meet minimum health and safety standards. GOALS Conduct site visits as required to assess provider compliance with regulatory requirements. Ensure correction of deficiencies in all facilities not meeting program standards. Maintain an accessible and responsive process for the receipt and timely investigations of complaints. EPIDEMIOLOGY . PURPOSE: Provide information about disease and other health problems in Georgia that will be used to identify public health problems, guide public health planning and policy-making, and design and evaluate control and prevention measures. 289 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting GOALS Decrease illness and death by providing better understanding of why diseases occur and how they can be prevented. Detect epidemics and intervene to prevent further disease transmission. PUBLIC HEALTH LABORATORY SERVICES PURPOSE: Provide clinical laboratory tests for diagnosis, surveillance, treatment and disease reduction/eradication of infectious diseases, chronic diseases, and genetic disorders. GOALS Perform high quality, accurate and timely clinical laboratory tests. Develop and maintain laboratory capacity necessary to respond to outbreaks of infectious diseases or emerging pathogens. Enhance laboratory productivity by use of state of the art technology/methodology. ENVIRONMENTAL HEALTH PURPOSE: Protect the public health from unfavorable environmental conditions associated with food, water, sewage disposal, and environmental health risk from hazardous materials. GOALS Reduce risk of food related illness in eating establishments. Reduce risk of surface & groundwater contamination due to on-site sewage disposal. Evaluate and communicate health risks due to toxic waste sites and indoor air contamination. SCREENING FOR CONGENITAL CONDITIONS PURPOSE: Prevent morbidity and mortality by expanding and maintaining a network of public and private health care providers to screen all newborns for inherited metabolic disorders. GOALS Ensure early detection of genetic disorders that are associated with disease. Provide early treatment of disorders to reduce morbidity and mortality. Identify individuals with genotypes that may lead to disease in their descendants so that counseling can be provided. Enhance outpatient services to decrease hospitalization and prevent lost days from school and/or work. SCREENING AND TREATMENT FOR SEXUALLY TRANSMITTED DISEASES (STD) PURPOSE: Provide diagnostic and medical care, training and education, and disease intervention services through a statewide network of state, district, county, community and private providers to those at risk of acquiring STD or those needing treatment. GOALS Reduce the incidence of STD. Prevent the sequelae of STD, such as involuntary sterility, congenital defects, and other complications. Ensure the quality and timeliness of case reports. 290 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting SCREENING FOR VISION AND HEARING DISORDERS PURPOSE: Assure a statewide system that promotes early detection of sensory disorders in infants and children. GOALS Promote hearing and vision screening of all children initially entering Georgia public schools. Develop and promote a system of universal hearing screening ofnewboms at hospitals and other facilities offering obstetrical services. Refer all children identified with sensory disorders for appropriate diagnosis and treatment. CHRONIC DISEASE PREVENTION PURPOSE: Partner with public and private organizations to promote healthy behavior and to ensure early detection of chronic diseases. GOALS Reduce the risk of developing a chronic disease. Reduce morbidity and mortality associated with chronic diseases. EMERGENCY MEDICAL SERVICES PURPOSE: Develop an optimal system of emergency medical care which provides the best possible patient outcomes through regulatory inspections, training of personnel and analysis of data. GOALS Maintain EMS coverage in all counties. Ensure a competent EMS workforce with appropriate credentialing. Ensure compliance with EMS rules and regulations. Investigate and address all complaints promptly and thoroughly. Reduce death and disability from poisoning. EARLY PERIODIC SCREENING, DIAGNOSIS AND TREATMENT PURPOSE: Improve the health status of children birth to 21 years of age who are Medicaid eligible by providing health screening, referral and followup through a network of public and private health care providers. GOALS Increase the percent of eligible children receiving screenings. Reduce the number of children with untreated health problems. 291 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting COUNTY HEALTH CARE SERVICES PURPOSE: Support the operation of county health departments in order to insure the availability of needed health services throughout the state. GOAL Improve the health status of Georgia's citizens. PRIMARY HEALTH CARE SERVICES PURPOSE: Improve access to needed health services in medically undeserved populations and rural communities. GOALS Improve the health status offann workers in Peach, Crawford, Schley, Crisp, Macon, Taylor, Sumter, Lowndes, Brooks, Cook, Echols, Tift, Candler, Tattnall, Toombs, Coffee and Atkinson Counties. Improve the health status of the undeserved populations in MacIntosh, Talbot, Webster, Madison and Hall Counties. Improve access to physician specialists in rural communities through the Telemedicine program. Increase the number of health care professionals recruited and retained in Health Professional Shortage areas. PUBLIC HEALTH INFORMATION PURPOSE: Collect, process, maintain and disseminate vital records, public health, hospital discharge, and other public health information in support of public health programs. GOALS Develop and provide health care data and analyses for health status assessment and local planning efforts. Process vital records and produce certified copies of records efficiently and effectively. PROGRAM AND FACILITY OPERATION AND COMPLIANCE PURPOSE: Ensure that customers receive quality services from programs that receive state and/or federal funds. GOALS Ensure that publicly funded mental health, mental retardation and substance abuse programs comply with program standards. Improve the quality of programs by providing consultation and technical assistance. Link DUI risk reduction programs to substance abuse services. Ensure that mentally ill or mentally retarded applicants for skilled nursing home services receive the appropriate services. EARLY PERIODIC SCREENING, DIAGNOSIS AND TREATMENT PURPOSE: Improve the health status of children birth to 21 years of age who are Medicaid eligible by providing health screening, referral and followup through a network of public and private health care providers. 292 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting GOALS Increase the percent of eligible children receiving screenings. Reduce the number of children with untreated health problems. FORENSIC SERVICES PURPOSE: Provide evaluation reports in response to court orders and treatment in a secure environment through a well-coordinated forensic program which allows for progression from more to less restrictive programs where clinically supported and court approved. GOALS Stabilize psychiatric conditions, improve personal behavior, reduce criminal behavior and meet court imposed requirements. Increase the independence and improve the social functioning of forensic patients while addressing issues of public safety. Provide timely and responsive evaluations of competency to stand trial or criminal responsibility at the time of the trial. ATTACHED AGENCIES STATE HEALTH PLANNING AGENCY PURPOSE: Administer the state health planning law and implement the certificate-of-need program. GOALS Ensure that adequate health care services and facilities are developed in an orderly and economical manner and are made available to all citizens. Reduce health care costs by avoiding unnecessary duplication of services. COUNCIL ON DEVELOPMENTAL DISABILITIES PURPOSE: Promote the development of a comprehensive array of services and supports to assist people with developmental disabilities in achieving independence and productivity. GOALS Promote full participation in the community through self-advocacy and leadership training. Promote diversity in dealing with developmental disability issues. CHILDREN'S TRUST FUND COMMISSION PURPOSE: Establish criteria for determining eligibility for grants from the trust fund and authorize disbursement from the fund based on applications from local organizations. GOALS Promote the development of innovative, effective child abuse prevention programs. 293 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS I. Temporary Assistance and Employment Supports 2. Child Support Enforcement 3. Supported Employment 4. Vocational Rehabilitation 5. Senior Community Service Employment 6. Independent Living 7. Child Protection and Placement Services 8. Adult Protective Services 9. Food Stamp Program 10. Home Energy Assistance II. Temporary and Emergency Shelters 12. Homemaker Services 13. Disability Adjudication 14. Refugee Assistance 15. Early Intervention Services for Disabled Children 16. Teenage Pregnancy Prevention 17. Family Planning 18. Maternal and Child Health 19. Substance Abuse Prevention 20. Family Connection/Children's Policy Council F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 657,026,129 251,477,307 67,230,501 1,336,286 74,255,410 1,763,717 176,328,168 200,502,354 34,207,093 75,035,153 12,738,596 2,431,572 10,953,020 37,065,298 3,102,013 13,002,587 6,085,874 90,757 14,928,092 21,530 102,620,749 107,063,039 14,964,935 31,244,306 1,510,271 3,690,990 10,772,999 3,259,555 11,452,026 94,923,978 6,646,033 5,122,783 2,135,951 5,828,390 9,505,310 873,947 4,747,783 654,448,254 231,592,755 76,774,551 1,344,286 77,082,800 1,777,857 177,512,632 207,598,643 33,339,558 75,540,242 9,387,549 2,798,179 11,193,157 38,228,820 2,830,022 14,589,834 9,183,222 90,757 18,104,098 30,564 102,325,781 108,289,085 14,376,285 34,561,877 1,557,249 3,805,800 657,101 12,203,235 3,829,513 13,356,563 96,709,956 6,740,327 5,500,635 2,655,808 7,445,557 10,626,191 943,638 5,125,635 294 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE AGENCY PROGRAMS 21. Immunizations 22. Stroke and Heart Attack Prevention 23. AIDS Outreach 24. Injury Control 25. Children 1st 26. Preventive Dental Health Services 27. Hospital-Based Treatment: Child and Adolescent Services 28. Hospital-Based Treatment: Adult Mental Health 29. Institution-Based Treatment: Mental Retardation 30. Community Treatment: Outdoor Therapeutic 31. Community Treatment: Adult Mental Health 32. Community Treatment: Child and Adolescent Services 33. Community Treatment: Substance Abuse 34. Multi-Agency Team for Children 35. Hospital Services for the Disabled 36. AIDS Treatment 37. Outpatient Treatment of Tuberculosis 38. Children's Medical Services 39. Primary Health Care for the Homeless 10,257,770 2,615,880 6,562,305 426,906 1,415,696 872,320 21,628,230 32,759 1,503,268 2,935,794 216,973 1,200,865 662,145 19,951,482 183,123,447 145,788,829 178,393,962 94,493,682 4,058,019 3,137,938 93,927,899 89,603,120 29,769,282 27,162,588 53,960,563 46,731,749 19,212,998 3,172,048 7,653,627 13,602,992 273,051 295 34,102,074 33,446,670 4,321,130 2,171,714 5,756,661 6,911,417 273,051 10,123,886 3,155,121 7,463,094 484,005 1,853,370 261,443 20,106,046 1,148,695 1,988,511 3,718,445 258,025 1,600,133 25,973 18,401,043 174,804,687 141,737,469 172,568,490 89,559,060 4,113,552 3,183,947 110,179,216 104,483,244 34,788,122 31,986,092 55,976,068 46,699,098 20,009,355 3,505,817 8,200,219 15,125,810 274,212 34,780,373 33,450,121 4,836,560 ~,475,266 6,698,816 8,160,989 274,212 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE AGENCY PROGRAMS 40. Dental Health Treatment 41. Chronic Disease Benefits 42. Regulation of Health Care and Child Care Facilities 43. Epidemiology 44. Public Health Laboratory Services 45. Environmental Health 46. Screening for Congenital Conditions 47. Screening and Treatment for Sexually Transmitted Diseases (STD) 48. Screening for Vision and Hearing Disorders 49. Chronic Disease Prevention 50. Emergency Medical Services 51. Early Periodic Screening, Diagnosis and Treatment 52. County Health Care Services 53. Primary Health Care Services 54. Public Health Information 55. Program and Facility Operation Compliance 56. Forensic Services TOTAL 653,755 3,129,525 13,577,980 541,755 3,129,525 7,833,497 112,000 2,909,875 14,220,729 2,909,875 8,306,908 2,356,154 6,794,256 1,804,242 3,216,372 2,552,731 2,203,372 6,351,106 1,292,369 2,187,553 788,234 2,991,011 7,288,436 2,402,278 3,744,150 2,839,904 1,566,233 6,602,148 1,696,347 3,199,066 1,035,818 1,005,198 1,005,198 668,386 668,386 2,759,686 3,240,976 2,320,230 2,759,686 1,892,263 1,097,882 3,438,020 3,419,774 2,367,027 3,269,799 2,038,117 1,108,288 64,448,136 1,521,517 4,664,412 2,012,846 64,448,136 1,410,066 4,203,855 496,091 59,910,024 1,390,696 5,255,030 2,021,904 59,910,024 1,236,795 4,522,091 503,850 24,617,245 24,580,233 2,306,716,277 1,167,455,211 25,339,477 25,266,842 2,340,593,710 1,176,182,199 296 DEPARTMENT OF HUMAN RESOURCES -- Results-Based Budgeting Program Fund Allocations ADMINISTRATION ATTACHED AGENCY PROGRAMS 1. State Health Planning 2. Council on Developmental Disabilities 3. Children's Trust Fund Commission TOTAL TOTAL APPROPPRIATIONS F.Y. 1997 APPROPRIATIONS TOTAL STATE 60,378,536 51,469,010 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 1,695,639 1,615,639 1,635,866 51,163 2,211,103 2,211,103 5,542,608 3,877,905 2,372,637,421 1,222,802,126 1,627,762 1,547,762 1,633,308 1,584,703 2,343,550 2,343,550 5,604,620 5,476,015 2,346,198,330 1,181,658,214 297 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Total Budgeted Positions as of October 1, 1996 -- 210 Board ofIndustry, Trade and Tourism World Congress Center! Commissioner's Georgia Dome 469 -A-tta-c-he-d-f-or-A-d-m-in---- Office Georgia Ports Authority 621 istrative Purposes Only 3 I Administration Division 28 Performs support functions of finance, budget preparation and administration, graphics, personnel, printing, procurement, warehousing, computer support and audio-visual presentations. I Economic Development Division 54 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...provides Georgia as a prime location for film production ...develops comprehensive information on industrial sites and buildings...assists communities in planning their economic development programs... maintains a database of 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 eight regional representatives located throughout the state. I International Trade Division 13 Promotes exports of Georgia products and services... provides industry-specific export promotion programs, international marketing information and trade leads...organizes Georgia pavilion at international trade shows...provides trade representatives in strategic export markets...coordinates efforts of the state agencies providing assistance through the federal-state Export Assistance Center. ..fosters Georgia as a recognized center of international trade. 298 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 DECREASE FROM F.Y. 1997 BUDGET REDIRECTION LEVEL ENHANCEMENT FUNDS $19,770,406 $1,071,075 $18,920,406 $850,000 HIGHLIGHTS $1,091,164 to create a new Legacy Marketing Division to partner with the private sector in supporting a new expanded Operation Legacy Program. This division will target growth industries with higher, value-added products that rely on new advanced technology and build on Georgia's competitive strengths. The Governor is recommending enhancement funds and redirected funds for a Deputy Commissioner and operating expenses and a transfer offunds from the Economic Development Division of $331,204 and five positions to provide the basic staff of the division. This division also includes $600,000 in special marketing funds to be matched by private funds to support the targeted marketing and business development approach of Operation Legacy. $598,327 to create a new Strategic Planning and Research Division that will support the research and planning needed by the department and the Legacy Marketing Division as well as support for the Governor and the General Assembly in the formulation of the overall state economic development strategy. The Governor is recommending enhancement funds and redirected funds for a Deputy Commissioner, International Research position and operating expenses and a transfer of funds from the Economic Development Division of$3 86,287 and seven positions to provide the basic staff of the division. $500,000 in bonds to provide facility repairs and improvements to the state's visitor information centers. These funds will provide new roofs and repair sewage treatment plants at the centers. $200,000 to participate in a public-private partnership to market the Southeast to the world. Georgia will be part of a partnership that includes 10 southeastern states joining together as a region to initially target the countries of the United Kingdom, Germany and Canada for a total international marketing campaign of $5 million. Most of the funds will be contributed by tourism resorts and private organizations in the Southeast. $150,000 in marketing funds for the International Trade Division to establish an Incoming BuyersNisitors Program. A large number of visitors come to Georgia for various trade shows and business opportunities. These funds will allow Georgia to be in a more aggressive posture to match foreign buyers with potential suppliers through the department's presence at airports, major business hotels around the state, visitor information booths and the World Congress Center. $150,000 in marketing funds to develop a multi-year marketing strategy that will more effectively position Georgia as a center for research and development. These funds will facilitate a marketing partnership among Industry, Trade and Tourism, the Georgia Research Alliance and the University System. Governor Miller is challenging each partner to match the state's $150,000 to produce a total marketing effort of $450,000. $140,000 for a contract with the Department ofCorrections for grounds maintenance at the five largest visitor information centers. $90,000 for an International Trade contract to target Europe's best trade opportunities. This contract will replace a contract in the Brussels office that dealt primarily with trade. $70,000 for a position to work with existing industry to strengthen Georgia's business development opportunities internationally. This position will work with the regional economic development staffand appropriate research staffto help strengthen parent company ties internationally for the purpose of business expansion. $52,500 for a professional accounting position to assist with the department's increased budget and accounting responsibilities in the Administration Division. Georgia Ports Authority $14,490,000 in bonds to construct a transit shed and extend Berth 13 at Ocean Terminal in Savannah. $13,300,000 in bonds to purchase two container cranes for Garden City Terminal, helping maximize the state's investment in Container Berth 7. Georgia World Congress Center $10,500,000 in bonds for planning and design of Phase IV expansion of the Georgia World Congress Center. 299 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Authority Lease Rentals General Obligation Bonds Local Welcome Center Contract Legacy Marketing Marketing Foreign Office Reserve Waterway Development in Georgia (Tri-Rivers) Georgia World Congress Center F.Y.1995 Expenditures 8,464,894 1,669,179 350,370 29,828 35,545 966,779 820,939 125,195 277,358 1,450,000 14,929,547 171,600 6,719,335 50,000 F.Y.1996 Expenditures 8,850,100 1,845,827 370,201 62,451 158,001 992,156 1,502,140 189,518 287,073 F.Y.1997 Current Budget 9,726,714 1,623,319 347,500 31,100 100,375 999,191 1,137,360 142,000 323,058 1,240,000 15,423,095 181,600 625,000 191,600 10,854,581 5,800,264 50,000 50,000 2,500,000 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 9,464,929 1,432,064 363,110 16,200 65,807 854,309 1,370,161 149,328 325,041 478,156 38,999 25,561 4,000 2,400 3,750 2,500 33,828 1,983 45,486,475 9,943,085 1,471,063 388,671 20,200 68,207 858,059 1,372,661 183,156 327,024 45,486,475 182,020 5,849,621 47,500 250,200 10,530,000 182,020 6,099,821 47,500 10,530,000 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 36,060,569 44,506,743 21,097,481 20,120,090 56,857,852 76,977,942 16,196,999 130,000 16,326,999 19,733,570 205 23 89,924 16,576,044 28,500 16,694,468 27,812,275 212 24 256,000 256,000 20,841,481 210 24 256,000 256,000 19,864,090 210 24 56,857,852 5 256,000 256,000 76,721,942 215 24 300 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Authority Lease Rentals General Obligation Bonds Local Welcome Center Contract Legacy Marketing Marketing Foreign Office Reserve Waterway Development in Georgia (Tri-Rivers) Georgia World Congress Center 9,561,629 1,556,170 355,549 16,200 63,407 991,691 1,030,638 144,000 323,058 191,600 5,100,264 50,000 Redirection Level Funds To Redirect Additions (955,166) (102,900) (32,000) 792,623 43,900 62,000 (8,000) (141,132) (182,750) (11,000) (20,688) 15,000 430,000 18,780 29,688 (9,580) (164,075) (2,500) Redirection Totals 9,399,086 1,497,170 385,549 16,200 70,407 850,559 1,277,888 151,780 332,058 Enhancements 250,000 182,020 4,936,189 47,500 600,000 Totals 9,649,086 1,497,170 385,549 16,200 70,407 850,559 1,277,888 151,780 332,058 182,020 600,000 4,936,189 47,500 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 19,384,206 226,000 226,000 19,158,206 210 24 (1,629,791) (1,629,791) (5) 1,391,991 19,146,406 1,391,991 3 226,000 226,000 18,920,406 208 24 850,000 19,996,406 850,000 2 226,000 226,000 19,770,406 210 24 301 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 20,841,481 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust for non-recurring expenditures: --Authority Lease Rentals ($625,000), Olympic-related operating expenses ($363,442) and equipment purchases ($31,468). 3. Other adjustments: --Phase out "Georgia Global Now" ($1,000,000). --Continue funding for the Peach State Black Tourism Association ($300,000). --Eliminate both revenues and expenditures associated with the Manufacturing Directory. --Refocus funding of$150,000 for marketing the Georgia Research Alliance and Georgia's research and development accomplishments on a partnership that can leverage an additional $300,000 in funding. 4. Reflect a decrease in agency self-insurance rates. 5. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 42,519 (1,019,910) (700,000) (10,718) 4,834 ADmSTED BASE 19,158,206 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Eliminate a photographer position ($65,000) and reduce real estate rentals in the Atlanta Office ($141,132). 2. Reduce various marketing funds for: "Georgia Global Now" ($46,575), Economic Development ($27,500), International Trade ($15,000) and Administration ($75,000). 3. Reduce the printing and publications budget in International Trade ($25,000) and Tourism ($50,000). 4. Scale back representation in foreign countries in the following areas: elimination of an economic contract in Brussels ($100,000); reduce targeted international trade contracts and overseas compensation allowance ($100,000) and downgrade a Tokyo assistant manager position ($65,000). 5. Eliminate four visitor information center positions ($157,263) and a maintenance contract ($25,000). 6. Reduce contracts in administration and tourism. 7. Transfer 12 positions ($617,903) and related operating expenses ($99,588) in the Economic Development Division to the two new divisions. (See numbers 1 & 2 under Additions.) Total Funds to Redirect (206,132) (164,075) (75,000) (265,000) (182,263) (19,830) (717,491) (1,629,791) ADDITIONS 1. Reflect a transfer of seven positions ($328,699) and operating expenses ($57,588) to the new Strategic Planning and Research Division. (See Enhancements.) 2. Reflect a transfer of five positions ($289,204) and operating expenses ($42,000) to the new Legacy Marketing Division. (See Enhancements.) 3. Provide operating expenses for the deputy commissioners of the two newly created divisions. (See Enhancements.) 386,287 331,204 75,000 302 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM - F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 4. Add an international market research associate position to the newly created Strategic Planning and Research Division. 5. Add a professional accounting position to the Administration Division. 6. Contract with the Department of Corrections to use prison labor for grounds maintenance at the five largest visitor information centers. 7. Add a position in the Economic Development Division to work with existing industry to strengthen Georgia's business development opportunities internationally. 8. Provide funds for participation in a public-private partnership for international marketing of tourism in the Southeastern U.S. Five million dollars will be raised primarily from the private sector for this marketing effort. 9. Provide funds in contracts for one or more international trade contracts in Europe. 47,000 52,500 140,000 70,000 200,000 90,000 Total Additions 1,391,991 TOTAL REDIRECTION LEVEL 18,920,406 ENHANCEMENT FUNDS ENHANCEMENTS 1. Provide marketing funds for the new Legacy Marketing Division that will assume the management of the "Operation Legacy" Program - a targeted business recruitment and marketing program established prior to the Olympics. The Legacy Marketing program will be a public-private partnership and the private sector will match the state funds recommended here and in Enhancement #2. 2. Fund the salaries of two new deputy commissioner positions for the newly created Legacy Marketing Division and Strategic Planning and Research Division. 600,000 250,000 CAPITAL OUTLAY 1. Provide $500,000 for repairs and facility improvements at state visitor centers. 2. Ports Authority - Provide $14,490,000 to construct a transit shed and extend Berth 13 at Ocean Terminal in Savannah. 3. Ports Authority - Provide $13.3 million to purchase two container cranes for Container Berth 7 at the Garden City Terminal in Savannah. 4. Georgia World Congress Center - Provide $10.5 million for planning and design for the Phase IV expansion of the Georgia World Congress Center. See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O.Bonds TOTAL ENHANCEMENT FUNDS 850,000 TOTAL STATE FUNDS 19,770,406 303 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Administration 9,539,068 9,539,068 7,939,287 7,939,287 2. Economic Development 4,497,782 4,397,782 3,584,959 3,584,959 3. International Trade 1,640,998 1,640,998 1,590,295 1,590,295 4. Legacy Marketing 1,091,164 1,091,164 5. Strategic Planning and Research 598,327 598,327 6. Tourism 5,419,633 5,263,633 5,192,374 4,966,374 TOTAL APPROPRIATIONS 21,097,481 20,841,481 19,996,406 19,770,406 RECOMMENDED APPROPRIATION: The Department ofIndustry, Trade and Tourism is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $19,770,406. 304 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Roles and Responsibilities The Department of Industry, Trade and Tourism administers programs through four divisions (as of October I, 1996) to promote and encourage responsible development of tourism, business and industry in the state. ADMINISTRATION The Administration Division not only supports the department in budget, personnel, accounting and procurement, but provides computer, audio-visual and creative graphic design services to the economic development, trade andtourism efforts. The department's advertising and marketing efforts are coordinated through this division. ECONOMIC DEVELOPMENT The Economic Development Division markets Georgia as a location for new industries by providing out-of-state and international companies with accurate information on such topics as wage data, labor availability and taxes on potential sites; accompanying industry officials on tours of communities for prospective industrial development; and helping support local communities in their business development programs. The division also assists existing industries in expanding their present facilities or relocating to other Georgia communities. In addition, the economic development efforts include coordinating the support and operations ofthe overseas offices in Tokyo and Brussels. The division provides research and information support by publishing promotional material on transportation, international facilities, education, quality oflife and available buildings. The division also maintains the Georgia Manufacturing Directory database that includes nearly 10,000 manufacturing companies in the state, and maintains current economic development profiles on Georgia communities. The Film Program, as part ofthe Economic Development Division, functions to develop and promote the state's film, television and commercial production industry. The staff working in the Film Program actively pursue film prospects through direct mail marketing, prospect visits, advertising and trade show participation. Film also provides a program of onlocation assistance to production companies and coordinates the filming needs ofthe company with other state agencies and local governments. INTERNATIONAL TRADE The role ofthe International Trade Division is to promote the sale of Georgia products and services to customers abroad and to coordinate all facets ofintemational trade and exporting in the state. Through the Export Assistance Center, the Trade Division assists small and medium size businesses involved in exporting with trade leads, market analysis, trade shows and identification of financial assistance options. Coordination of international trade assistance is accomplished through: International Programs--Building relationships with Georgia companies to develop programs that will lead to increased sales of Georgia companies in foreign markets. In-State Programs--Building relationships with local private sector partners, primarily chambers of commerce, to increase awareness among Georgia companies ofthe benefits of exporting. Trade Contracts--Developing and contracting for identification offoreign trade opportunities in Canada, Mexico, Taiwan, Latin America and other countries. TOURISM The Tourism Division's role is to increase the number of travelers by developing information services to reach travelers before they leave home and by developing a marketing strategy that leads travelers to choose Georgia as a vacation destination. Through regional tourism representatives, the division assists local and regional tourism associations in the development of effective tourism programs. Tourism is also responsible for the operation of the state's II visitor information centers. These centers serve approximately 17 million visitors annually with travel information, reservations and assistance. ATTACHED AGENCIES The Georgia Ports Authority is responsible for the operation, 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 the Georgia Dome, which is also the home ofthe Atlanta Falcons. The state provides no operating funds to the Congress Center. AUTHORITY Title 50-7, Official Code of Georgia Annotated. 305 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Strategies and Services The Department ofIndustry, Trade and Tourism is Georgia's lead agency for attracting new business investment, encouraging 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 has offered services through three major programmatic divisions - Economic Development, International Trade and Tourism. Now Governor Miller is enhancing and improving the department's overall economic development responsibilities by adding two new divisions - Legacy Marketing and Strategic Planning and Research. The Legacy Marketing Division incorporates Operation Legacy into the department creating a publicprivate partnership that targets for development growth industries important to Georgia's future. The Strategic Planning and Research Division will conduct the research and strategic planning needed not only by the department, but by the Governor and the General Assembly in formulating state economic development policy and strategy. This division will prepare the research and help formulate the marketing plans needed by the new Legacy Division in its targeting of key growth industries. OPERATION LEGACY Background. Leveraging the Global exposure provided by the 1996 Olympic Games, the Governor of Georgia and a number of public and private entities launched in 1994 a worldwide targeted marketing and development program called Operation Legacy. Operation Legacy attracted some of the world's leading investors and corporations to Atlanta during the Olympics and familiarized them with the extraordinary economic opportunities unfolding in Georgia. In the months and years that led up to the 1996 Centennial Olympic Games, Operation Legacy hosted a number ofVIP Tours ofAtlanta and Georgia. While designed to provide an exciting Olympic experience and a preview of the Games, the tours imparted a practicl understanding ofthe state's aggressive plans for growth and the business/investment opportunities that growth will generate. Moreover, those that came gained an extraordinary overview of the resources -- human, financial, intellectual, cultural, technological, and corporate -- that have fueled Georgia's emergence as the leader ofthe Southeast and the strongest state economy east of the Rocky Mountains. The number one goal of Operation Legacy was to present the qualities and character that have made Atlanta and Georgia one of the world's most desirable business centers and corporate relocation sites for the industries targeted. LEGACY MARKETING DIVISION Governor Miller is proposing to continue the Legacy program with a strategic focus that builds on Georgia's competitive strengths and seeks the best opportunities for creating vital industries for the future. The Governor is creating the Legacy Marketing Division managed by a deputy commissioner and with $600,000 added for a special Legacy Marketing Program that will be matched by private funds. Enhancement funds of $126,960 and redirected funds of $33,000 will provide the new funding needed for division operations. In addition, a transfer of$331 ,204 and five positions from the Economic Development Division will provide a basic stafffor the Legacy Division. The operational approach for the division is to encourage the private sector not only to contribute marketing funds but also to allocate staff to work as a team with state personnel in achieving Legacy goals and objectives. The targeted marketing and business development approach of the Legacy program is designed to maximize the use of limited resources to build industries for Georgia's economic future. The legacy Program will target new industries with higher, value-added products that rely on new advanced technology. With the support ofthe new Strategic Planning and Research Division, the legacy program will focus not only on recruiting companies but on building the infrastructure, business climate and incentives needed to position and promote Georgia as a place for these targeted industries/companies to do business. For Legacy's targeted marketing approach to work effectively requires understanding thoroughly, through research and consultation with industry experts, the requirements ofthe targeted industry. Then it requires identifying sites or areas that can meet these requirements and determining those companies most likely to make investments in the near future. Finally, Legacy marketing requires formulation ofa marketing plan and strategy for each targeted industry that effectively utilizes all available public and private resources. One ofthe major purposes of the new Strategic Planning and Research Division is to provide this research and planning for the Legacy Marketing Division. STRATEGIC PLANNING AND RESEARCH DIVISION Governor Miller proposes a new Strategic Planning and Research Division that will support not only the new Legacy program but will also provide the research and planning needed for all department functions and for the Governor and the General Assembly in the formulation of the state's overall economic development strategy. Important functions of this division will include improving the state's business climate, enhancing development incentives, creating the infrastructure and mobilizing the resources (public and private) needed for sustained quality growth. The division will be led by a deputy commissioner. Enhancement funds of $123,040 and redirected funds of$89,000, including one new research position will provide 306 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM -- Strategies and Services new funding needed for division operations. In addition, a transfer of $386,287 and seven positions from the Economic Development Division will provide the core staff for the division. Currently, the Economic Development Division has a research unit that will be transferred to the new division. Finally, $150,000 in marketing is budgeted in the Administration Division for contracting research and planning requiring specialized expertise. The Legacy Partners will raise funds needed to support additional operational needs ofthis Division and the Legacy Division. The Strategic Planning and Research Division will need additional funds to properly support the Governor in formulation and coordination of the state's economic development strategy. BUSINESS DEVELOPMENT AND MARKETING The Department's Economic Development Division will continue its traditional economic development role of recruiting new industry and encouraging the expansion of existing industry to create new jobs and generate more capital investment in Georgia. As the state's marketing arm, the Department of Industry, Trade- and Tourism provides advertising, public relations, trade show and marketing mission assistance services for Georgia. The primary purposes of these marketing efforts are to build a positive image of Georgia and generate the inquiries from business prospects, exporters and travelers. Whether tourism, trade or new company prospects, the department emphasizes the state's business climate, education and training programs, and overall quality of life. R&D Marketing. Governor Miller is recommending that $150,000 of the department's regular marketing budget be used to develop and implement a multi-year marketing strategy which will more effectively position Georgia as a center for research and development comparable to North Carolina's Research Triangle. The reality is that Georgia's research universities now exceed the North Carolina Research Triangle universities in the dollar value of research and development performed. Part of this funding for research and development includes $126 million over the past five years for the Georgia Research Alliance and almost $19 million for the Governor's traditional industries research and development program over the past four years. Yet, Georgia still does not have the reputation and image it deserves given its accomplishments. Even many Georgia businesses are not aware ofthe Georgia Research Alliance, the Governor's traditional industries program or Georgia's successes in research and development. If Georgia is to be more successful in attracting private research and development facilities and new technology companies, it must do a better job telling businesses and universities throughout the world what Georgia has done. Governor Miller is challenging both the Georgia Research Alliance and the University System and its research foundations to match the state's $150,000 to produce a total marketing effort of$450,000. COOPERATIVE TOURISM ADVERTISING In F.Y. 1998, the promotion of tourism in Georgia will concentrate on leveraging state dollars with private dollars to develop public-private partnerships. Governor Miller is recommending $300,000 in marketing funds for a revived cooperative Tourism program. The Tourism Division will work closely with Georgia's tourism regions in a cooperative endeavor to advertise these regions and attract more tourists. The regions must match the state's efforts using local and private resources. Governor Miller is recommending $200,000 to participate in another tourism public-private partnership to market the Southeast to the world. The partnership includes 10 southeastern states and major tourism destinations that will initially target the United Kingdom, Germany and Canada for a total international marketing campaign of $5 million. Most ofthis funding will be raised from private sector tourism destinations and businesses. The goal is to market and promote travel with other destination cities in the Southeast, recognizing the vast number of attractions, sporting events, history, scenic and cultural beauty found within this area. VISITOR CENTERS Visitor centers are the front door to our state and, therefore, must make a good first impression on visitors. This first impression can influence the state's ability to be a vacation destination to the 17 million visitors who stop at the 11 centers each year. In fiscal years 1993, 1994 and 1997, the Governor recommended the reconstruction of the visitor centers in Ringgold, Lavonia and Augusta respectively, and in F.Y. 1995 $500,000 was provided for major repairs to the state's visitor centers. In F.Y. 1997 almost $500,000 was budgeted to extend visitor information center hours, 24-hour restroom service, enhanced maintenance and security and special travel marketing events during the Olympic Games. The Governor's F.Y. 1998 recommendation provides $500,000 in G.O. bonds to make further repairs to visitor center roofs and sewage treatment plants and $140,000 to contract with the Department of Corrections for grounds maintenance at the five largest centers. INTERNATIONAL TRADE Since the creation of a separate Trade Division by Governor Miller in 1993, the department's trade efforts have focused on assisting companies in targeted industries with export potential. In F.Y. 1996, Governor Miller expanded an overseas trade program that focused on contracts targeted to various countries offering trade opportunities rather than establishing overseas offices staffed with department employees. Building on 307 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM -- Strategies and Services existing contracts in Mexico, Canada and Taiwan, $400,000 in contract funds was used to expand international trade representation in South America, South Africa and in other emerging world markets. This funding has enabled the division to aid Georgia exporters directly in most major world markets. For F.Y. 1998, the Governor is recommending the department's request to convert the Brussels Office position that deals with trade to one or more contracts that target Europe's best trade opportunities. Also in F.Y. 1998, Governor Miller is recommending $150,000 in marketing for an incoming buyers program that will focus on matching foreign buyers with potential Georgia suppliers. This recommendation builds on the success ofGeorgia promoting the "Sunbelt Agricultural Expo" to foreign buyers. An additional $50,000 recommended in marketing will enable the Trade Division to update the Made in Georgia, USA publication in a newsletter format via the Web page. The department will also continue to work through the Export Assistance Center, providing export information to small and medium-sized businesses in Georgia. During its first year of operation, the Center provided export information and resources to almost 1,000 visitors and responded to more than 4,000 information requests from Georgia exporters and prospective exporters as well as from international buyers interested in Made In Georgia USA products and services. The Georgia Export Assistance Center remains the only one of 13 around the country that involves a true partnership between federal agencies, led by the U.S. Department of Commerce, and state agencies, led by the Department of Industry, Trade and Tourism. EXPORT TECHNOLOGY A multi-state Regional Trade Initiatives program funded by the Appalachian Regional Commission (ARC) has given the State of Georgia a grant to undertake nine pilot projects to develop international trade, community leadership and telecommunications in the ARC region which includes 30 counties in North Georgia. The grant will enable the Trade Division to enhance global economic trade opportunities for Georgia companies in the ARC region through enhanced trade partnerships. One of the major grant-funded projects will be the installation of PCbased videoconferencing systems in several strategic locations in North Georgia. This equipment will provide the platform and "connections" for improved delivery oftrade services and export training programs which can also be leveraged for other economic development purposes. These new "desktop" systems will also interface with the state's existing GSAMS videoconferencing network, to support a variety ofcommunications functions and formats. The electronic databases ofthe Georgia International Trade Data Network are available to interested trade partners from the Export Assistance Center's Trade Resource Center. GEORGIA PORTS AUTHORITY Governor Miller has always maintained that Georgia must remain a Southeast center for international commerce. His commitment to positioning Georgia for global trade expansion is reflected in his budgets since F.Y. 1992. He has recommended over $111 million in funding for port facilities in Savannah and Brunswick. In addition, the state has invested $33 million for Savannah River harbor deepening and $33.5 million for harbor maintenance. In addition, Governor Miller has supported the Ports Authority in its commitment of $11 million in authority revenues to provide for an expansion at Mayor's Point in Brunswick, a new liquid bulk import berth in Savannah, and facilities for Home Depot in Savannah. 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 highly competitive South Atlantic market. The Authority's growth rate in container tonnage has exceeded 61 % over the last ten years and with Home Depot is expected to exceed 75 percent by the end of 1997. For F.Y. 1998 the Governor is recommending $13.3 million in G.O. bonds to purchase two new container cranes to maximize the opportunities presented by the state's investment in Container Berth 7. The cranes will load and unload cargo more quickly and efficiently, thus providing better service to the Port Authority's customers. The Governor also proposes for F.Y. 1998 to enhance Savannah's breakbulk capabilities by recommending $14,490,000 in G.O. bonds to extend Berth 13 (by constructing a 700 x 145 foot dock) and to provide a new 200,000 square foot transit shed adjacent to Berth 13. Georgia Ports Authority is the only one among its competitive South Atlantic Ports to increase breakbulk tonnage since 1989. Competitors have seen breakbulk tonnage declines of25% to 46% while Georgia's breakbulk tonnage has grown 33%. Providing additional breakbulk storage capacity and more dock space will also allow the Ports Authority to better serve its customers and remain the main breakbulk port in the South Atlantic. With the F.Y. 1998 recommendations Governor Miller will have provided over $200 for improvements to Georgia's ports and harbors. 308 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM Results-Based Budgeting Program Summaries BUSINESS RECRUITMENT AND EXPANSION PURPOSE: Recruit companies from outside Georgia and support expansion of existing industry within the state with special attention to the slower growth regions of the state. GOALS Promote Georgia as a place to locate and expand business through advertising, public relations and other marketing efforts. Promote Georgia as a location for films, commercial productions and film related businesses. Create new jobs, increase capital investment and generate additional tax revenue. Create new jobs, increase capital investment and generate additional tax revenue for the slower growth regions ofthe state by working with local and regional communities and economic development organizations. INTERNATIONAL TRADE PURPOSE: Create employment in Georgia by helping companies based in the state expand their exports and enter new international markets. Focus the program on small and medium-sized companies with the greatest potential for export expansion. GOALS Build awareness among qualified Georgia companies ofthe importance of exporting. Increase the number of Georgia companies exporting their products. Increase the number of international markets to which Georgia companies export. Effectively coordinate and leverage the diverse international trade promotion efforts among state agencies and with federal and private organizations. Increase the percentage of targeted industries in Georgia that export and increase the total value of these exports. TOURISM PURPOSE: Promote Georgia to travelers and increase awareness of all regions of Georgia by assisting communities and regions with their tourism attractions, by developing promotional materials and by targeting group travelers and consumers. GOALS Increase the number of visitors to Georgia. Promote Georgia as a vacation destination. Promote Georgia as a place for meetings, conventions and trade shows. Assist Georgia communities and regions in their tourism marketing efforts. Increase investment in Georgia by the travel and tourism industry. Increase public and private investment in Central Business Districts (CBDs). 309 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM -- Results-Based Budgeting TARGETED MARKETING AND BUSINESS DEVELOPMENT PURPOSE: Through a strong public-private partnership (Operation Legacy), identify, recruit and develop the most promising industries for Georgia's future. Develop the specific infrastructure, business climate and incentives necessary for the targeted industries to thrive. GOALS Create new, higher-paying jobs, increase capital investment and increase the number of companies in the targeted industry areas and generate additional taxes from the industries in the targeted areas. Position Georgia as a place for the targeted industries by marketing and promoting the infrastructure, business climate and incentives needed by these industries. Leverage the resources of state agencies, the university system and private organizations to develop and attract the targeted industries. STRATEGIC ECONOMIC DEVELOPMENT PLANNING AND RESEARCH PURPOSE: Conduct strategic economic development planning and research for the Governor, the Department and the state focusing on the formulation of economic development policy and strategy that mobilizes, coordinates and leverages all public and private resources available. GOALS Develop and maintain a strategic economic development plan for the state that effectively uses all available state resources as well as appropriate private resources. Develop and implement a specific strategy that focuses and targets resources on the opportunities which will create a strong economic base for Georgia in the next century. Research the most significant problems associated with state economic development and with the development of targeted industry opportunities and recommend policies and actions to address these problems. 310 DEPARTMENT OF INDUSTRY, TRADE AND TOURISM -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE AGENCY PROGRAMS 1. Business Recruitment and Expansion 2. International Trade 3. Tourism 4. Targeted Marketing and Business Development 8,744,071 3,622,257 8,681,153 8,644,071 3,622,257 8,525,153 5. Strategic Economic Development Planning and Research TOTAL PASS-THROUGH FUNDING 21,047,481 20,791,481 1. Tri-Rivers Waterway Development Authority 50,000 50,000 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 6,455,892 3,180,271 8,623,252 1,091,164 6,455,892 3,180,271 8,397,252 1,091,164 598,327 598,327 19,948,906 19,722,906 47,500 47,500 TOTAL APPROPRIATIONS 21,097,481 20,841,481 19,996,406 19,770,406 311 51CLnk 1~ '=l','J1" 3 1;2.. 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 I I I OFFICE OF COMMISSIONER OF INSURANCE Total Budgeted Positions as of October 1, 1996 -- 320 Commissioner Deputy Commissioner Executive Office 9 Administrative Division 63 Provides personnel services... supplies educational materials and information to the public ...provides staff support to the Commissioner's Office...provides accounting services . prepares budget requests . coordinates printing, supplies and procurement services... enforces compliance of insurance, industrial loan and fire safety laws and regulations... suspends or revokes licenses and levies fines for violations ...administers court-appointed rehabilitation and/or liquidation of insolvent insurers. I Insurance Division 128 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 preneed funeral service contracts...administers workers' compensation group self-insurance program... administers third party prescription program... coordinates consumer complaints and inquiries... administers insurance holding company laws and health maintenance laws. I Industrial Loan Division 10 Administers the Georgia Industrial Loan Act. .. reviews applications for industrial loan licenses... accounts for fees payable...examines all industrial loan companies... administers tax laws. 313 I Safety Fire Division 110 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 applicable... licenses and inspects liquefied petroleum gas facilities ... administers the Blasting Standards Act of 1978 ... licenses and inspects motor vehicle racetracks. OFFICE OF COMMISSIONER OF INSURANCE Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 12,846,852 768,701 360,146 124,599 77,285 799,748 671,552 699,332 277,899 16,626,114 F.Y.1996 Expenditures 12,901,723 899,751 454,209 145,548 31,844 802,157 528,525 466,301 308311 16,538,369 F,Y.1997 Current Budget 13,594,230 723,314 379,754 86,733 59,129 804,047 141,292 448,235 275,334 16,512,068 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 13,325,804 776,321 450,754 86,233 60,129 804,047 211,219 413,721 332,426 16,460,654 1,295,438 57,865 200,000 128,250 51,000 250,000 43,300 24,000 2,049,853 14,621,242 834,186 650,754 86,233 188,379 855,047 461,219 457,021 18,510,507 1,213,031 577,439 1,790,470 14,835,644 326 47 1,520,162 508,492 2,028,654 14,509,715 335 49 1,256,295 50,360 1,306,655 15,205,413 320 49 1,356,295 50,360 1,406,655 15,053,999 312 49 2,049,853 31 1,356,295 50,360 1,406,655 17,103,852 343 49 314 OFFICE OF COMMISSIONER OF INSURANCE Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 13,657,935 776,321 450,754 86,233 60,129 804,047 136,219 413,721 332,426 16,717,785 1,356,295 50,360 1,406,655 15,311,130 320 49 Redirection Level Funds To Redirect Additions (534,296) 141,330 (232,257) (766,553) 75,000 216,330 (766,553) (13) 216,330 4 Redirection Totals 13,264,969 776,321 450,754 86,233 60,129 804,047 211,219 181,464 332,426 16,167,562 Enhancements 539,860 24,407 83,320 53,429 21,247 17,739 9,998 750,000 1,356,295 50,360 1,406,655 14,760,907 311 49 750,000 13 Totals 13,804,829 800,728 534,074 86,233 113,558 825,294 211,219 199,203 342,424 16,917,562 1,356,295 50,360 1,406,655 15,510,907 324 49 315 OFFICE OF COMMISSIONER OF INSURANCE F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Reflect a decrease in agency self-insurance rates. 3. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. ADJUSTED BASE REDIRECTION FUNDS FUNDS TO REDIRECT 1. Eliminate three positions within the Internal Administration (two positions) and Fire Safety & Manufactured Housing Regulation (one position) divisions. 2. Privatize portion of Agents Licensing section, eliminating nine positions and associated operating costs. 3. Eliminate the actuary position, contracting with outside vendors for these services instead. Total Funds to Redirect ADDITIONS 1. Add two positions to assist in consumer service investigations and regulatory analysis. 2. Add two positions to assist in fIre safety compliance building inspections. 3. Provide for contracting of actuarial services. Total Additions TOTAL REDIRECTION LEVEL ENHANCEMENT FUNDS ENHANCEMENTS 1. Establish and operate the Special Insurance Fraud Fund as enacted in House Bill 616 of the 1995 General Assembly. The total amount of the appropriation must be collected and deposited into the State Treasury within the fIrst quarter ofF.Y. 1998. Allotments of these funds from the Treasury will be approved after the deposits have been made. TOTAL ENHANCEMENT FUNDS 15,205,413 125,642 (5,359) (14,566) 15,311,130 (130,779) (513,307) (122,467) (766,553) 70,610 70,720 75,000 216,330 14,760,907 750,000 750,000 TOTAL STATE FUNDS 15,510,907 316 OFFICE OF COMMISSIONER OF INSURANCE Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Internal Administration 4,448,673 4,448,673 4,393,603 4,393,603 2. Insurance Regulation 6,615,343 6,615,343 6,116,923 6,116,923 3. Industrial Loan Regulation 517,776 517,776 539,060 539,060 4. Fire Safety and Manufactured Housing 4,930,276 3,623,621 5,117,976 3,711,321 5. Special Insurance Fraud Fund 750,000 750,000 TOTAL APPROPRIATIONS 16,512,068 15,205,413 16,917,562 15,510,907 RECOMMENDED APPROPRIATION: The Office of Commissioner of Insurance is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $15,510,907. 317 OFFICE OF COMMISSIONER OF INSURANCE Roles and Responsibilities The Office of Commissioner of Insurance is accountable for upholding state laws regulating insurance, fire safety, mobile homes and small loans. 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, fire 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; 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 selfinsurance 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 fire safety by reviewing applications for license 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 fire hazard prevention and protection. The division inspect public facilities for compliance with Georgia's fire safety laws and investigates cases involving suspicious fires in Georgia. AUTHORITY State Constitution; Official Code of Georgia Annotated Title 45-14. 318 OFFICE OF COMMISSIONER OF INSURANCE Strategies and Services The Office of Commissioner of Insurance administers a number of strategies and services to fulfIll its duties in regulating the state's insurance industry, industrial loan companies and fire 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. Highlighted below are the some of these programs and developments; namely, Financial Examinations, Computer Services, Agents Licensing Privatization, Consumer Services, Property and Casualty, Fire Safety Education and Hazardous Materials. FINANCIAL EXAMINATIONS The Financial Examinations section performs activities in the areas of insurance company fmancial reviews, market conduct compliance and premium tax collection. The insurance company fmancial reviews decide whether an insurer is complying with state law and department regulations, report any non-compliance or other problems, and verify the insurer's fmancial solvency. The section completed 119 fmancial reviews/examinations in F.Y. 1996. The section's market conduct work involves analyzing insurer records regarding rates charged policyholders to determine if the insurer is adhering to state law and department regulations, and if the rates being charged policyholders are consistent with the rates fIled with the department. F. Y. 1996 saw 83 market conduct examinations performed. The section also processes the premium tax returns from all insurance companies and surplus lines brokers licensed to operate in the state, and collects the premium tax payments. The department annually receives an average of over $200 million in state premium taxes and nearly the same amount in local premium taxes. The collected local premium tax revenue is distributed to all the state's counties and municipalities. COMPUTER SERVICES The department's Computer Services section is analyzing the various electronic and information systems technologies utilized within the department to determine the most productive way to apply and upgrade the department's information technology to give consumers and those regulated efficient and expeditious service. As a result, several developments are already on the horizon. During F.Y. 1997 and F.Y. 1998, the department will explore the feasibility of allowing the insurance companies to electronically fIle with the department the policyholder forms which require the Commissioner's review and approval before they can be used. The Regulatory Services section will be acquiring the ability to electronically receive the fmancial statements from insurance companies it is auditing. More extensive use of information technology is being planned for the Fire Safety division in the areas of analysis of inspection and investigation results and computer aided review of building engineering and architectural drawings to facilitate verification of compliance with state fire code regulations. Technology will be introduced in the Manufactured Housing section permitting inspectors to detect and evaluate problems arising during the manufacture of a mobile home, causing these problems to be corrected before production of a unit is fmished. This technology will enable inspectors to be more aggressive and proactive in discovering problems with these homes before work on them is done rather than after. AGENTS LICENSING PRIVATIZATION The Agents Licensing section is the department's arm for regulating over 70,000 state licensed insurance agents, adjusters, agencies, counselors, subagents and surplus lines brokers. Traditionally, the department has always conducted many of the tasks involved with its licensing duties internally. However, the department, in F.Y. 1998, is contractiIig much of the actual work and recordkeeping pertaining to the licensing process to an outside vendor. The vendor, with department oversight, will be responsible for maintaining the licensing database, processing license renewals and handling continuing education fIlings from licensees. Privatizing a significant portion of the agents licensing process reduces the department staff necessary for this function, lowers the department's computer costs, and shortens processing and response times for insurance agents, agencies, companies, and citizens. This effort, the latest in a series of privatization initiatives concerning the Agents Licensing operation, has been designed so that the cost of privatization and improved service is borne by the industry, not the state. CONSUMER SERVICES The Consumer Services Division functions to assist citizens with insurance concerns. Toward this end, the division's activities include interceding in claims and other insurance related disputes; educating the general public on a variety of insurance issues using public presentations, publications and other means; assisting the public on insurance matters occurring after a disaster; and referring persons to the appropriate special programs state and federal agencies may offer to resolve a situation beyond the 319 OFFICE OF COMMISSIONER OF INSURANCE -- Strategies and Services department's purview. Investigation of claims and other insurance related disputes is the division's major activity. Cases are handled by 41 investigators located in regions statewide. These investigator s interview insurance company personnel, independent adjusters, insurance agents and the complaining party, as well as review all related documentation to determine if the complaint filed is valid. Once this research and analysis of the complaint is completed, the investigator reports the results to the parties involved and works with them to resolve the complaint. The division closed 84,038 cases in F.Y. 1996. The division also aids other divisions within the department 'in a range of areas. Examples of the areas the division investigators routinely furnish support are: the Enforcement and Fraud Units in evidence procurement and case prosecution; Agents Licensing and Regulatory Services with records checks on agents and companies; and the Research Division on legislative matters. PROPERTY AND CASUALTY The Property and Casualty Division reviews insurance company property and casualty rates, rules and forms for compliance with state law and department regulations. As part of this review, all property and casualty insurers licensed to operate in Georgia must file information on all property and casualty premium rates, underwriting rules and policy forms with the division. Rate filings are evaluated against state law which prohibits rates which are excessive, inadequate or unfairly discriminatory. Property and casualty insurance policy forms and endorsements must be submitted to the division for review 90 days before they are scheduled to become effective. These forms and endorsements are examined to ensure they comply with state law, contain no misleading titles or clauses, are legibly printed, and do not include provisions considered unfair or inequitable. In calendar year 1995, the division received 5,832 rate and rule filings, and 3,844 form and endorsement filings from insurance companies and rating organizations. The division also regulates a number of residual market insurance plans. These plans are designed to provide coverage to individuals unable to ordinarily obtain insurance from licensed insurers of certain lines of insurance. Every state licensed insurer offering automobile, property or workers compensation insurance must participate in the applicable residual market plan to share these high risk applicants. Residual market plan rates, rules and forms are subject to regulations similar to those for the standard rates, rules and forms mentioned earlier. FIRE SAFETY EDUCATION The Fire Safety Division, through its Fire Safety Education Program, develops instructional programs on and promotes awareness of fIre safety. The program's efforts emphasize a person's responsibility for fIre prevention and fIre safety measures at home, school, work and other areas. In this regard, the program coordinates the efforts of the Commissioner, news media, State Fire Marshal's OffIce and the department's Public Education section to educate the public on fIre safety in a clear, organized fashion. The program is attempting to further educate the public on fIre safety by expanding its involvement in several organizations such as the Coalition of Public Fire Safety Educators, Safe Kids of Georgia and the EMS Advisory Council. Prompted by the importance and the effectiveness of learning and practicing fIre safety at an early age, the program hopes to initiate and expand its efforts directed at school-age students as a way of reaching and teaching children about fIre safety. Some of these efforts include the Learn Not To Burn, Challenge For Life, and Junior Fire Marshal programs, as well as the acquisition of a mobile fIre safety house where live demonstrations of fITe safety techniques can be presented to school and public 320 OFFICE OF COMMISSIONER OF INSURANCE -- Strategies and Services groups. Other areas in which the program is active include smoke detector distribution programs, establishing a volunteer fire safety education teaching group, and developing the cooperation necessary for joint efforts by the local fire services and the local boards of education to encourage fire safety education activities in every school. HAZARDOUS MATERIALS The Fire Safety Division's Hazardous Materials section enforces areas designated to the department concerning the storage, transportation and handling ofhazardous materials including liquid propane gas, anhydrous ammonia, flammable and combustible liquids, explosives, welding gases, natural gases and blasting agents. The section, under this responsibility, conducts inspections, issues permits and licenses, investigates hazardous materials incidents and enforces applicable fire safety codes. The section also reviews plans and specifications for proposed bulk storage facilities of these substances. The section must approve these plans and specifications before construction can begin on a proposed hazardous material bulk storage facility. The section is also assigned the department's responsibility to regulate the manufacture, transport, use, sale and storage of explosives through licensing the individuals or organizations involved in those activities. To complement its regulatory duties, the section conducts education and training programs on storing, transporting and handling hazardous materials in an effort to continue minimizing the loss of life and property from hazardous materials fire incidents. 200 .s 180 ~.~... 160 ~0140 ~ 120 Fire Deaths in Georgia 195 92 93 94 95 96 Calendar Years 321 OFFICE OF COMMISSIONER OF INSURANCE Results-Based Budgeting Program Summaries INSURANCE ENFORCEMENT PURPOSE: Drafting, promulgation and enforcement of insurance regulations and the enforcement of specific inspections. GOALS Monitor compliance of insurance companies and insurance agents with other divisions of the Office of Commission of Insurance. Implement recommendations of various divisions ofthe Office of Commissioner of Insurance. Handling of all enforcement actions against agents, insurers and others subject to the jurisdiction of the Office of Commissioner of Insurance. INSURANCE REGULATION PURPOSE: Provide regulatory support and oversight of insurance entities licensed in Georgia and to review and approve all rates and forms used by insurance companies. GOALS Ensure insurance companies licensed in Georgia are fmancially stable and capable of fulfilling their obligations to Georgia consumers. Provide consumer protection for those insurance companies which have become fmancially impaired. Serve as liaison between consumers and insurance companies to ensure that consumers are being dealt with fairly according to Georgia law. Ensure that all rates and forms used by insurance companies are proper and have been approved by the Commissioner. INDUSTRIAL LOAN REGULATION PURPOSE: Oversee finance companies providing loans to consumers in amounts of $3,000 or less. GOALS Determine if fmance companies are in compliance with the Georgia Industrial Loan Act by conducting on-site audits. Collect 3% Industrial Loan Tax from fmance companies on loans of$3,OOO or smaller. Ensure that fmance companies are not charging consumers interest rates in excess of the maximum allowed. 322 OFFICE OF COMMISSIONER OF INSURANCE -- Results-Based Budgeting FIRE SAFETY AND HAZARDOUS MATERIALS INSPECTION AND ENFORCEMENT PURPOSE: Promote the health and welfare of Georgia citizens and visitors by dedicating resources to protecting lives and property in our state through code adaptation and enforcement, inspection, licensure, public awareness and public education. GOALS Investigate instances where hazardous materials may have been involved to determine if negligence is involved. License companies selling hazardous materials. Review construction documents on buildings defmed as presenting special hazards due to their size, use or construction to determine if building codes are being met. Develop and promote an education program for statewide fIre safety education. MANUFACTURED HOUSING AND NURSING HOME INSPECTION AND ENFORCEMENT PURPOSE: Ensure that providers of manufactured housing and nursing home services are in compliance with federal regulations. GOALS Ensure that Health Care Finance Administration requirements for nursing homes are being met. Ensure that federal guidelines regarding the manufacturing, sale and installation of manufactured housing are being met. Serve as monitoring agency for consumer complaints. SPECIAL INSURANCE FRAUD FUND PURPOSE: Coordinate with Federal, State and Local government agencies in order to expose and eliminate insurance fraud. GOALS Investigate instances of alleged insurance fraud. Assist insurance companies in identifying possible insurance fraud. Work with fraud units of insurance companies to discover fraud. 323 OFFICE OF COMMISSIONER OF INSURANCE -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Insurance Enforcement 2. Insurance Regulation 3. Industrial Loan Regulation 4. Fire Safety and Hazardous Materials Inspection and Enforcement 5. Manufactured Housing and Nursing Home Inspection and Enforcement 6. Special Insurance Fraud Fund TOTAL APPROPRIATIONS F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 2,706,236 7,514,664 588,036 1,231,014 4,472,118 2,706,236 7,514,664 588,036 1,231,014 3,165,463 16,512,068 15,205,413 2,638,270 7,282,736 573,601 1,195,124 2,638,270 7,282,736 573,601 1,195,124 4,477,831 3,071,176 750,000 16,917,562 750,000 15,510,907 324 DEPARTMENT OF LABOR Total Budgeted Positions as of October 1, 1996 -- 1,920 Commissioner of Labor 6 I I I I I I I Intergovernmental Human Resources Communications Training and Internal Security Veterans Relations Quality Programs 2 18 4 5 7 3 Facilitates use of Provides personnel Facilitates public Provides training Provides internal Provides enhanced and pro mot e s functions. access to depart- and staff develop- investigations. services to veterans. department's ser- ment's information ment. vices. and services. I I I I Deputy Commissioner Deputy Commissioner Deputy Commissioner Employment and Labor Market Systems Labor Law and Policy Trainine; 27 3 2 Unemployment Insurance (VI) 420 Administers claims payments, collects employer taxes, hears appeals and administers child labor inspections. Employment Service 66 Provides planning, policy monitoring and reporting for employment service programs. Administration 218 Administers accounting, payroll, budget, data processing, mail, property and supply services. Assistant Commissioner Labor Information 51 Collects, compiles, and reports labor market information. Economic - Development 3 Interacts with government and business to promote the state and improve the economy. Drug Free Workplace 2 Promotes drug free environments. Legislative Liaison 1 Interacts with Legislature to coordinate federal and state law. Safety 1- Engineering 37 Performs safety inspections of businesses to administer state elevator, pressure vessel, and carnival and amusement ride laws. Facilities 1- Management 11 Handles maintenance, parking, space rental, and telecommunications for the Sussex Place Complex Field Services 973 Manages employment services, UI claims, specialized veterans services, and services to dislocated workers. Workforce '- Development 26 Consists of GOICC program and Jobs for Georgia Graduates. Job Training Manages JTPA grants, pro- vides recipient services, and L..- --:3::.,:3;;..J performs compliance audits. 325 Marketing and - Special Projects 2 DEPARTMENT OF LABOR Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Payments to the State Treasury JTPA Contracts Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 74,760,058 5,375,845 1,361,355 39,003 1,658,880 1,801,164 4,824,711 6,691,772 1,388,336 1,418,017 1,774,079 64,136,330 165,229,550 145,419,001 2,737,754 148,156,755 17,072,795 1,920 11 F.Y.1996 Expenditures 76,717,793 8,621,756 1,303,055 363,158 2,198,713 4,001,874 2,884,896 1,450,300 30,762 1,774,079 62,109,596 161,455,982 F.Y.1997 Current Budget 70,226,432 7,424,929 1,346,137 844,965 1,960,798 3,161,030 7,151,101 1,419,406 1,774,079 60,500,000 155,808,877 F.Y. 1998 Al!:ency Requests Redirection Level Enhancements Totals 72,333,225 6,213,740 1,305,910 1,297,204 73,630,429 6,213,740 1,305,910 457,047 1,888,123 3,164,280 3,058,815 1,465,339 457,047 1,888,123 3,164,280 3,058,815 1,465,339 1,774,079 60,500,000 152,160,558 1,297,204 1,774,079 60,500,000 153,457,762 141,722,591 1,832,318 143,554,909 17,901,073 1,920 11 134,347,690 1,832,318 136,180,008 19,628,869 1,920 11 129,846,862 1,795,532 131,642,394 20,518,164 1,920 11 1,297,204 17 129,846,862 1,795,532 131,642,394 21,815,368 1,937 11 326 DEPARTMENT OF LABOR Financial Summary F.Y.1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Payments to the State Treasury ITPA Contracts Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 72,332,588 6,213,740 1,305,910 457,047 1,888,123 3,161,030 3,058,815 1,465,339 1,774,079 60,500,000 152,156,671 129,846,862 1,795,532 131,642,394 20,514,277 1,920 11 Redirection Level Funds To Redirect Additions (22,170) (3,087) (25,257) (25,257) Redirection Totals 72,310,418 6,213,740 1,305,910 457,047 1,888,123 3,157,943 3,058,815 1,465,339 1,774,079 60,500,000 152,131,414 Enhancements Totals 72,310,418 6,213,740 1,305,910 457,047 1,888,123 3,157,943 3,058,815 1,465,339 1,774,079 60,500,000 152,131,414 129,846,862 1,795,532 131,642,394 20,489,020 1,920 11 129,846,862 1,795,532 131,642,394 20,489,020 1,920 11 327 DEPARTMENT OF LABOR F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost ofthe F.Y. 1997 sallll)' adjustments. 2. Reflect a decrease in agency self-insurance rates. 3. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 4. Reallocate back to the department, as required by state law, the increases in safety inspections, administrative assessments and penalty and interest funds that have been collected by the department and remitted to the state treasury. 5. To reduce the adjusted base for the Child Labor Section from $426,725 to $423,475. 19,628,869 19,924 (144) (493) 869,371 (3,250) ADJUSTED BASE 20,514,277 REDIRECTION FUNDS FUNDS TO REDIRECT 1. To reduce state funding for the 10 approved child labor positions for the Child Labor Section. 2. To reduce state funding for the Georgia Commission on Women by five percent. Total Funds to Redirect TOTAL REDIRECTION LEVEL (22,170) (3,087) (25,257) 20,489,020 TOTAL STATE FUNDS 20,489,020 328 DEPARTMENT OF LABOR Roles and Responsibilities The Department of Labor is empowered to administer federal labor programs and to enforce various state laws pertaining to labor, with an overall mission to promote the economic well-being of the state. The department, through its programs and wide spectrum ofservices, 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. TRAINING In a joint partnership with businesses and other community leaders, the department provides job training to economically disadvantaged 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 funded under the federal Job Training Partnership Act (JTPA), the department's responsibilities include: Administering over $65 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, approximately 32,500 Georgians participated in one or more of the Partnership programs. The Partnership is directed locally in each of the state's 16 service delivery 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 councils. 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. 1996, 433,844 unemployment claims were filed with the department. The department also provides federally-funded supplemental benefits to unemployed job seekers who have exhausted their regular unemployment insurance benefits. One of the department's primary responsibilities is the administration of the public employment service in the state through a statewide network of 53 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 58,838 applicants received employment or vocational counseling in F.Y. 1996. 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 1,530 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 to civilian life. PROTECTION The department has responsibility for administering Georgia laws regulating the employment of children and regulatory responsibility of equipment, such as amusement and camival rides, elevators, escalators, safety glass, high voltage apparatus, boilers and pressure vessels. The department processed 59,878 work permits for students during F.Y. 1996 and the Safety Engineering staff performed a total of 61,350 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, worker availability, wages and historic 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. 329 DEPARTMENT OF LABOR Strategies and Services % EMPLOYMENT GROWfH 1990-1996 1" -1 -2 +----r-----,------,---l.-,-------,------1 1990 1991 1992 1993 1894 1995 1996 Source: Labor Infonnation Systems, Georgia Department ofLabor Federally funded programs comprise almost all ofthe Department of Labor's activity in its mission to promote employment and employability throughout the state. Of the department's total appropriations in F.Y. 1996, about 88 percent was obtained from federal sources. Eleven percent was 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. State initiated and funded programs accounted for less than one percent of the department's activities Fund Sources and funding. Major federal program areas are Unemployment Insurance, Employment Service and programs under the Job Training Partnership Act. State programs provided by the department are Safety Inspections and Child Labor Section activities. UNEMPLOYMENT INSURANCE Service provIsIons for unemployment insurance consist of claims processing and benefit payments; appeals and hearings; and employer tax functions. Workers who become unemployed through no fault oftheir 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 maximum of $215 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 $1,557,198,139 atthe end ofF.Y. 1996. In addition to making claim determinations and processing benefit checks, the department also hears appeals, investigates fraud, and collects/processes employer wage reports and unemployment insurance. % UNEMPLOYMENT 1990-1996 3+---,---'--r-------,-------,-'--,-----------, 1990 1991 1992 1993 1994 1995 1998 Source: Labor Infonnation Systems, Georgia Department ofLabor EMPLOYMENT SERVICE Employment Service activities involve maintenance of a job bank, intake, counseling, employability development, testing, referrals and placement. These services are free to the general public. Job listings can be retrieved by a specific geographic area, statewide or nationwide through an Automated Job Information System. The system enables job applicants to search for job openings through a network of computer terminals located in the department's 53 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 onjob listings and applicants. The system gives job seekers access to information 330 DEPARTMENT OF LABOR -- Strategies and Services 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. A system of combined intake provides all job applicants and Unemployment Insurance (VI) claimants with one-stop services. Intake provides for assessment of job-seeking applicants. All job seekers are then eligible for placement services, consisting ofjob matching and referral, job development, employment counseling, and referral to other agencies and services when further assistance is needed. Additional assistance for UI claimants is provided by the department's Reemployment Units. Their goal is to shorten clients' time on unemployment insurance and return them to the workplace as quickly as possible. To achieve this goal, all claimants receive enhanced placement services through the Claimant Assistance Program. However, quick reemployment is not always possible. To identify those clients who are unlikely to be able to return to their previous occupations because of their backgrounds, the labor market and/or economic trends, all client information is first processed through a statistical model called VI Profiling. Those identified as potentially long-term claimants receive additional services such as workshops, tailored reemployment plans and job placement services. The department also provides migrant seasonal farm worker 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. Whenjob losses result from changes in the economy and technology, 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 ofTrade Act petitions by the U.S. Department of Labor, workers receive benefits including the employment-related services mentioned 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 focusing on high school seniors considered most at risk for unemployment or who do not plan to seek higher education. Specific areas of assistance include employability skills instruction, job placement, job development, follow-up services, and career association membership which in addition to offering career information also offers opportunities for leadership training. There are also service delivery provisions for remediation needs and basic skills education. After graduation, the youths receive follow-up services for nine months. In F.Y. 1996, counting both in- and out-of-school youths, a total of 1,530 youths participated at 17 sites located in school systems throughout the state at a cost of $981,813 in federal funds. JOB TRAINING PARTNERSHIP ACT (JTPA) Department programs under the federal Job Training Partnership Act (JTPA) provide employability assessment, training and placement for economically disadvantaged adults and youth. During F.Y. 1996 job training services were provided to approximately 32,500 disadvantaged and dislocated Georgians. JTPA funded programs are performance driven, measured by longterm employment and earnings, along with placement into quality jobs with benefits. Specific services for each type of activity provided under JTPA are: Title II-A Adult and Title II-C Youth Programs--Target disadvantaged adults and youth. Over 8,090 clients received training in F.Y. 1996. 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 1,779 participants during F.Y. 1996. Title II-A Older Workers Program--Provides year-round training activities for economically disadvantaged persons 55 years of age or older. During the 1995-1996 program year, the Older Workers Program served 365 clients through a grant awarded on a competitive basis to a non-profit service provider. Title II-B Summer Youth Employment and Training Program-Provides training and jobs during the summer months to economically disadvantaged youth. More than 5,200 youth were enrolled in the Title II-B summer program. Enrollment for the 1995-1996 program year showed a decrease over the previous year, largely due to lack of available funding. Title III Worker Adjustment Program--Provides training and employment assistance to workers who have lost their jobs as a result oflayoffs, plant closings or economic conditions. A total ofl7,054 Georgians were served during the 1995-1996 program year, an increase from the previous year's enrollment of 11,669. Jobs Corps--The department provides training and placement for the federal Jobs Corps Program. This nationwide program offers training to economically disadvantaged young people between the ages of 16 and 24. 331 DEPARTMENT OF LABOR -- Strategies and Services VETERANS PROGRAMS The department provides intensive services to service-connected disabled veterans, Vietnam veterans and veterans who have recently ended their military service, Through its Transition Assistance Program, the department conducts workshops for personnel making the transition from military installations. In the workshops, participants learn job-seeking skills to enable them to compete more effectively in the civilian labor market. Approximately 80,190 participants were served in F.Y. 1996. The Georgia Military Transition Council, chaired by the Commissioner of Labor, further assists personnel transitioning out ofthe military. Through its efforts targeted at local veterans and disabled veterans, the department in F.Y. 1996 found job openings for 20,740 Georgia veterans and placed 13,671 injobs. LABOR MARKET INFORMATION Labor market information is gathered, analyzed and distributed 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 ofthe information is produced in cooperation with the U.S. Bureau of Labor Statistics and provides key indicators ofthe state's economic health. Labor market and other economic information is also critical to businesses that are considering locating or expanding facilities in Georgia. Presently under development by the agency's Labor Information Division is a self-service computer system called Georgia JobGuide, designed to aid customers ofthe department and other workforce development agencies in designing effective self-directed job search programs. It uses touch-screen technology and colorful graphics to access a wide range of information about the labor market, including wages, local job market conditions, employment outlook, occupations that might use the individual's skills, and listings of potential employers. In addition, the system will link to the Georgia Career Information System and eventually to the department's listings of job openings. The system is expected to be available in mid- to late- 1997. SAFETY INSPECTIONS 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 selfsupporting and require no appropriation from general state revenues. The safety program includes the regulation of boilers, pressure vessels, elevators, escalators, high voltage lines, safety glass, and amusement park and carnival rides. These inspections include existing equipment as well as new installations, and during F.Y. 1996, a total of61,000 safety inspections were conducted. The Public Employee Hazardous Chemical Protection and Right-to-Know Program is also administered by this section. CHILD LABOR SECTION Established by law, the Child Labor Section, the only department program that relies solely on state appropriated funds, provides for the administration of child labor laws. Preventive work focuses on educating minors and employers about current laws and reviewing employment certificates (commonly called work permits) for minors under the age of 18. The program processed 59,870 employment certificates in F.Y. 1996. When a permit reveals a law violation or a complaint is received, a UI inspector, trained in child labor laws, makes a site visit. Inspections focus on violations with respect to hazardous occupations, hours of work and age of minor. Although there are both state and federal child labor laws, employers are bound to the more stringent laws, regardless of their origin. Inspectors report violations of federal law to the U.S. Department of Labor for the appropriate action. State law does not permit the assessment of fines against employers for violations, nor does it bar serious violators from hiring, and putting at risk, more minors. COMMISSION ON WOMEN The Georgia Commission on Women, administratively attached to the department, addresses women's issues through hearings, conferences, programs and special events. It advises women on the laws of Georgia, makes recommendations to the executive branch and the Legislature, and collaborates with state agencies and organizations. 332 DEPARTMENT OF LABOR Results-Based Budgeting Program Summaries LABOR MARKET INFORMATION PURPOSE: Gather, analyze and distribute a wide range of statistics and information to employers, job seekers, planners and the general public. GOALS Meet Bureau of Labor Statistics (BLS) requirements. Provide users with accurate, current and comprehensive labor market information. WORKFORCE DEVELOPMENT PURPOSE: Provide workforce development services to employers and the workforce, including targeted services for at-risk youth, economically disadvantaged youth and adults, older workers, summer youth, veterans and economically dislocated workers. GOALS Provide and enhance labor exchange services for employers and the workforce. Improve the speed and effectiveness of placing individuals seeking employment injobs. Increase the employment and training opportunities for targeted groups. Increase number and percentage of targeted group members entering the workplace, joining the military service, or continuing their education. Expand the use of employment services by employers. Provide an effective service delivery system that maximizes the services provided for the funds available. Meet all federal goals and special provisions. UNEMPLOYMENT INSURANCE (UI) PURPOSE: Financially assist short-term unemployed workers. GOALS Process unemployment insurance claims and make payment ofUI benefits to eligible claimants in an efficient and timely manner. Collect unemployment taxes from liable employers. 333 DEPARTMENT OF LABOR -- Results-Based Budgeting SAFETY INSPECTIONS PURPOSE: Promote and protect public safety through a comprehensive inspection and enforcement program for boilers, pressure vessels, elevators, escalators, amusement park and carnival rides, safety glass and high voltage equipment; provide training and information on workplace exposures to hazardous chemicals to state employers and employees. GOALS Provide for public safety through the regulation and inspection of boiler and pressure vessels, elevators and escalators, safety glass, amusement park and carnival rides, and high voltage lines. Prevent accidents and protect workers and the public through a quality fee-supported inspection system. Provide an effective program of public information and training regarding workplace exposures to hazardous chemicals. CHILD LABOR REVIEW AND INSPECTIONS PURPOSE: Administer and enforce Georgia laws regulating the employment of children. GOAL Protect minors from dangerous work environments and ensure that they have sufficient time, while employed, to excel in school. ATTACHED AGENCY GEORGIA WOMEN RESOURCE PURPOSE: Research, analyze, compile and distribute information on various women's issues including: social security and tax laws; health issues; political, legal, civil, property and social rights; and employment policies. (Georgia Commission on Women.) GOALS Identify areas of law or regulatory matters, or the lack of such, that affect women. Make recommendations for needed action to the Governor and Legislature. 334 DEPARTMENT OF LABOR -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS l. Labor Market Information 2. Workforce Development 3. Unemployment Insurance 4. Safety Inspections 5. Child Labor Review and Inspections TOTAL ATTACHED AGENCY PROGRAM l. Georgia Women Resource F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 1,575,995 103,919,678 47,505,885 2,318,844 426,725 155,747,127 12,114,316 4,707,234 2,318,844 426,725 19,567,119 1,591,755 100,785,613 46,753,332 2,521,459 420,592 152,072,751 12,594,380 4,893,926 2,521,459 420,592 20,430,357 61,750 61,750 58,663 58,663 TOTAL APPROPRIATIONS 155,808,877 19,628,869 152,131,414 20,489,020 335 DEPARTMENT OF LAW Total Budgeted Positions as of October 1, 1996 -- 175 I Regulated Industries and Professions 28 Provides legal representation in environmental, defense, tourism, consumer interest, and agricultural matters... represents the state in insurance regulation licensing and regulatory matters, including professional licensing and public utility rate making. Attorney General 3 Executive Assistant Attorney General I Counsel to the Attorney General and Special Prosecutions 6 Commercial Transactions and Litigation 27 Represents the Department of Transportation in all legal matters and other state agencies in construction contract matters...represents the state in tax and revenue matters...provides legal representation in the issue and sale of general obligation and revenue bonds...handles real property transactions, represents state authorities, and provides legal advice in contract and appropriation matters. I Criminal Justice 32 Represents the state in capital felony appeals and in habeas corpus proceedings... represents the Department of Corrections, Board of Pardons and Paroles, State Patrol, GBI, judges, district attorneys, and the State in state law enforcement matters...investigates and prosecutes health care fraud. I General Litigation 26 Represents the state in all civil rights and tort litigation. Government Services and Employment 29 Provides legal services for health, child, adult protective services, medical and other public assistance programs... represents the state in employment discrimination, labor relations, and state pension matters...represents the state in public education, insurance regulation, and elections matters... handles legal inquiries concerning public office. 337 I Operations Division 23 Provides personnel, account- ing, procurement, budget and fiscal services...provides departmental word and data processing services...maintains the State Legislative and Law Reference Library. DEPARTMENT OF LAW Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Library Books Total Funds Less Federal & Other Funds: Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions F.Y.1995 Expenditures 9,105,131 615,926 121,554 15,010 462,410 876,984 477,398 130,448 152,594 11,957,455 F.Y.1996 Expenditures 10,850,949 1,163,456 193,379 53,263 470,208 840,879 325,254 164,231 146,919 14,208,538 F.Y.1997 Current Budget 11,874,661 638,449 179,322 31,350 698,548 60,000 360,793 140,424 147,000 14,130,547 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 11,910,021 638,449 179,322 31,350 698,548 60,000 336,107 140,424 147,000 14,141,221 515,375 26,841 6,863 15,470 4,025 568,574 12,425,396 665,290 186,185 31,350 698,548 60,000 351,577 144,449 147,000 14,709,795 1,653,899 450,000 2,103,899 9,853,556 154 2,141,475 2,141,475 12,067,063 175 1,608,829 1,608,829 12,521,718 175 1,608,829 1,608,829 12,532,392 175 568,574 7 1,608,829 1,608,829 13,100,966 182 338 DEPARTMENT OF LAW Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Library Books Total Funds Adjusted Base 11,949,607 638,449 179,322 31,350 698,548 60,000 360,793 140,424 147,000 14,205,493 Redirection Level Funds To Redirect Additions (75,000) (24,686) (99,686) 157,686 157,686 Redirection Totals 11,874,607 638,449 179,322 31,350 856,234 60,000 336,107 140,424 147,000 14,263,493 Enhancements Totals 11,874,607 638,449 179,322 31,350 856,234 60,000 336,107 140,424 147,000 14,263,493 Less Federal & Other Funds: Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions 1,608,829 1,608,829 12,596,664 175 (99,686) 157,686 1,608,829 1,608,829 12,654,664 175 1,608,829 1,608,829 12,654,664 175 RECOMMENDED APPROPRIATION: The Department of Law is the budget unit for which the following State Fund Appropriation is recommendedforF.Y.1998: $12,654,664. 339 DEPARTMENT OF LAW F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust personal services lapse. 3. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 4. Reflect a decrease in agency self-insurance rates. ADJUSTED BASE REDIRECTION FUNDS FUNDS TO REDIRECT 1. Provide for an adjustment to personal services funding. 2. Adjust computer charges to reflect actual expenses. Total Funds to Redirect ADDITIONS 1. Increase real estate rentals related to the move of the Law Department to 254 Washington Street. Total Additions TOTAL REDIRECTION LEVEL 12,521,718 113,250 (58,000) 21,518 (1,822) 12,596,664 (75,000) (24,686) (99,686) 157,686 157,686 12,654,664 TOTAL STATE FUNDS 12,654,664 340 DEPARTMENT OF LAW Roles and Responsibilities The Department ofLaw, 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 chieflegal 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 Court, in all actions before the U.S. Supreme Court, and in all actions against a district attorney. It is the duty of the Attorney General to provide opinions on any question of law 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 staffare 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, employees, and the general public. DEPARTMENT ORGANIZATION To accomplish its duties, the department is organized into a department head's office, five law practicing divisions, and an administrative division. The five law practicing divisions provide a full range of legal 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 and reporting costs. AUTHORITY Article 5, Section 3, Paragraph 1, Georgia Constitution; Title 45, Chapter 15 of the Official Code of Georgia Annotated. 341 DEPARTMENT OF LAW -Strategies and Services In our complex society, virtually every statutory change, new program initiative, as well as many executive decisions result in the need for legal representation. The issues that challenge our society are often issues which require some form of governmental participation. In the last few years, the number and complexity of these issues have increased substantially. It is the role of the Department of Law to serve as the attorney for the state agencies in the executive branch of government, providing representation and legal services. With the increasing number of issues requiring legal services, the Department of Law's workload has increased both in volume and complexity. During F.Y. 1996, the department received 9,318 requests for its legal services, an increase of one percent over the previous year. Requests for assistance include such legal services as legal representation in administrative hearings, cases and potential cases, acquisition of real property, bonded indebtedness matters and legal advice or opinions. To better meet the growing demands for legal service, the department, in December 1995, reorganized from ten to five units. STATE HEALTH CARE FRAUD CONTROL UNIT During F.Y. 1995, in compliance with sections of the Social Security Act, as amended by the MedicareMedicaid Anti-Fraud and Abuse Amendments of 1977 and the Omnibus Budget Reconciliation Act of 1993, the State Health Care Fraud Control Unit (SHCFCU) was created. Through the cooperative effort of the participating agencies, it is composed of personnel from the Department of Audits, the Georgia Bureau of Investigation (G.B.I.) and the Department of Law. The G.B.I. is the federal grant manager for the SHCFCU and is responsible for the budget and the fiscal management ofthe unit. In support ofthis effort, the Department of Law organized a Medicaid Fraud Control Unit consisting of five prosecuting attorneys, one paralegal and two legal secretaries. The unit was created to: Serve the public. Uphold and enforce the law. Investigate and prosecute health care fraud. Protect vulnerable patients from abuse. From March 1995 to August 1996, the unit received 229 referrals. Of these, the unit has closed 84, convicted three, closed 19 due to lack of prosecutorial merit, referred 52 to the Department of Medical Assistance for civil recovery, and merged 10 with other files. The unit has convicted 10 defendants and 14 more are awaiting trial. The unit has recovered and paid $2.7 million to Department of Medical Assistance and $15 million to the federal government. In addition, fmes of five million dollars are payable to either federal government, Department of Medical Assistance, or Cobb County. CONDITIONS OF CONFINEMENT CLASS ACTION LAWSUIT Beginning July 1, 1995, the Department of Law -has taken over primary responsibility for the class action law suit Cason v. Seckinger. The lawsuit was originally filed in 1984. The lawsuit challenged the general conditions of confmement, including allegations of overcrowding, inadequate medical care, unsafe structure and physical conditions, disciplinary due process violations, fire and safety violations and other deficiencies in administration and programming. In 1992, the case was still pending although many issues had been resolved. With publicity involving allegations of sexual misconduct, the complaint was amended which modified the class to include all women inmates in the custody of the Department of Corrections. Since 1992, this action has involved an enormous effort on the part of the Department of Corrections and required additional staff, the employment of experts by the court, and multiple lawyers on both the plaintiffs and defendants side. An outside Special Assistant Attorney General was retained to handle the case. Effective July 1, 1995, as a cost avoidance action, the department brought this case "in-house" and activated a team composed of three attorneys, one paralegal and one legal secretary for the purpose of defending the state in this class action. Currently, the department is awaiting a trial date on several significant issues. TAX AND REVENUE MATTERS The James B. Beam Distilling Company v. Georgia case recently has been concluded. The James Beam Company sought a refund of $2.2 million plus interest. The Supreme Court of Georgia ruled that the 1938 version of O.C.G.A. Section 3-4-60 was unconstitutional, but held that its decision would apply prospectively only. The U.S. Supreme Court reversed and remanded for further proceedings. On remand, summary judgement was entered for the state, denying a refund. The Beam Company appealed, and the Georgia Supreme Court held that no refunds were due. The U.S. Supreme court supported this decision. In addition, there are two similar cases. The Seagrams case in which the plaintiffwas seeking a refund of $19.4 million plus interest and the Heubelin case in which the plaintiff was seeking a refund of $8.2 million plus interest. In both cases, the refund claim was denied based on the state's motion for summary judgement. CONSUMER INTEREST The Attorney General's office has handled several telemarketing fraud cases. In one case, the department sought and won an injunction and monetary rewards on behalf of the Governor's Office of Consumer Affairs 342 DEPARTMENT OF LAW -- Strategies and Services against seven Georgia based fraudulent telemarketing operations. These companies were promising cash rewards and prizes to out of state consumers, usually the elderly. In another case, the department obtained an injunction against Sonic Communications for illegally switching customers' long distance providers ("slamming"). Sonic had generated $13.5 million in four months by slamming customers. WORKLOAD OVERVIEW The key to workload measurement in the department is the "control slip". As litigation, potential litigation matters, and transactions arrive in the law practicing divisions, each is assigned a control slip number. As the litigation or transaction is completed the control slip is closed. Thus, the number of control slips received, closed, and pending at the end of a fiscal year is a reliable indicator of the workload for a specific period. To assist in identifying potential and accomplished work, control slips are classified into several subgroups. Those control slips which represent cases, administrative hearings or potential litigation matters, are referred to as litigation matters. All other requirements such as the acquisition of real property, bonded indebtedness matters, and requests for legal advice or opinions are classified as transactions. During the period F.Y. 1990 - 1996, the receipt of litigation matters increased by 36.5%, the average workload of attorneys increased from 107 to 121 litigation and transactional matters, and pending matters have increased by 44.7%. Many changes have occurred to cause an increase in attorney workload. The reasons are: Complexity of the case. Changes in the law. Increasing number of prisoners. The changes affect many areas in the department but especially the Labor and Employment Section and the Criminal Justice Section. BetweenF.Y. 1995 andF.Y. 1996, the Labor and Employment Section has experienced a 20% increase in discrimination lawsuit. The passage of the Civil Rights Act of 1991 has affected every aspect of preparing a case - discovery, investigation and trial preparation. The new guidelines allow for compensatory damages and the right to jury trial which both impact the complexity and time spent on a case. New case time lines and minimum sentencing requirements are influencing the increasing caseload in the Criminal Justice Section. Even though the number of inmates on death row have not increased, new guidelines are impacting case management. In addition, new sentencing guidelines are adding court appearances and longer sentences for prisoners. As of August 1996, there are 40,000 sentenced offenders. Due to a larger population and longer sentences, the likelihood of a lawsuits will increase. The lawsuits are defended by the department. Workload Measurements FY 1994 Actual FY 1995 Actual Cases, Administrative Hearings and Potential Litigation: Receipts 5,177 5,775 Closed 4,297 4,273 Ending Balance 9,669 11,207 FY 1996 Actual 5,564 See Note 9,907 Transactions: Receipts Closed Ending Balance 3,285 3,083 1,164 3,630 3,597 1,179 3,761 3,589 1,368 Total Receipts Total Closed Total Ending Balance 8,462 7,380 10,833 9,405 7,870 12,386 9,325 3,589 11,275 FY 1997 Budgeted FY 1998 Recommended 6,020 4,350 9,500 5,500 4,325 10,675 3,700 3,700 1,283 9,720 8,050 10,783 3,710 3,680 1,313 9,210 8,005 , 11,988 Note: On December 1, 1995, the Department of Law reorganized from ten to five functional divisions. To bring records current, the department spent extensive time closing existing control slips. Unfortunately, detailed statistics were not maintained as to which fiscal year each of the newly closed files were associated and which files should have been closed in a prior period. 343 DEPARTMENT OF LAW Results-Based Budgeting Program Summaries LEGAL SERVICES PURPOSE: Provide legal representation and services to the Executive Branch of State Government GOALS Serve the citizens of the State of Georgia by providing legal representation of the highest quality to the agencies, officers and employees of State Government and by honorably and vigorously carrying out the constitutional and statutory responsibilities ofthe Attorney General. Provide the people of Georgia with an independent Department of Law committed to excellence. Assist agencies, officers and employees of State Government to operate openly, honestly and efficiently. 344 DEPARTMENT OF LAW -- Results-Based Budgeting AGENCY PROGRAMS 1. Legal Services TOTAL APPROPRIATIONS Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 14,130,547 14,130,547 12,521,718 12,521,718 14,263,493 14,263,493 12,654,664 12,654,664 345 DEPARTMENT OF MEDICAL ASSISTANCE Total Budgeted Positions as of October 1, 1996 -- 306 Board ofMedical Assistance Commissioner's Office 23 Provides general management and direction for the Department. I Chronic Care Programs 25 Manages, plans and implements policy and reimbursement methods for home and communitybased waivered services programs, home care, non-emergency transportation, emergency ambulance, community mental health services, durable equipment and orthotics, and implements Medicaid policies and procedures in nursing home, hospice, Swing bed, and targeted case management programs for HIV/AIDS, residential setting. I Indemnity Acute Care Programs 35 Manages service programs for physicians (including fees and schedules), podiatrists, optometrists, psychologists, DSPS, nurse practitioners, nurse midwives, dentists, oral surgeons, hospitals, independent labs, CHC's, RHC's, dialysis clinics, birthing centers and ASC's...also included are out-of-state precertifications for transplant services. I Maternal and Child Health Programs 11 Manages pregnancy related services; the Early Intervention Program; Education Initiative; Perinatal Case Management; Family Connection; Targeted Intervention Case Management; Children Intervention Services; Resource Mothers Program; Health Check (EPSDT) and Child Birth Education Programs. I Managed Care Programs 22 Develops, implements and manages programs designed to transition delivery of health care services to Medicaid Recipients to capitated managed care organizations (i.e. the voluntary HMO Program)...manages the Primary Care Case Management Program and the Georgia Better Health Care Program...manages quality assurance for Managed Care Programs. I Legal and Regulatory Services 71 Provides legal services... investigates fraud and abuse cases...ensures the effectiveness, efficiency and integrity of Medicaid ...ensures the accuracy and integrity of the recipient data base...designs and implements third party liability procedures ...coordinates and monitors UR systems and related activities. I Systems Management 40 Prepares the EDP plan... implements and administers the MMIS through the fiscal agent...updates and maintains the recipient data base...services the Department's LAN. I Reimbursement Services 51 Sets rates of payment. .. develops and implements payment methodologies...performs audits and examination of approximately 25 categories of service including nursing homes and hospitals ...performs all functions related to accounting, financial reporting and cash management. 346 I General Administration 28 Develops and manages the budget. ..conducts program evaluations and provides assistance to units conduct'ing programmatic reviews ... manages appropriated funds...provides support services including inventory control, mailroom and procurement. ..performs all activities related to human resource development. DEPARTMENT OF MEDICAL ASSISTANCE RECOMMENDED STATE APPROPRIATIONS FORF.Y. 1998 INCREASE FROM F.Y. 1997 BUDGET REDIRECTION LEVEL $1,319,498,749 " $7,756,683 $1,319,498,749 HIGHLIGHTS Medicaid remains one of the largest state agencies, exceeding $1 billion in state funds for the fIrst time in Fiscal Year 1994. In Fiscal Year 1996, roughly one in six Georgians, or 16 percent of the state's population, was covered by Medicaid. The Governor's recommendation reflects $37 million in savings in state funds from various cost saving and cost containment initiatives. These initiatives are centered on managed care and fraud and abuse. The initiatives also include changes in various reimbursement methodologies to align provider reimbursement with cost or to be consistent with other southeastern states. It is important to note that the proposed initiatives do not reduce eligibility or the amount of services provided. Because of the nature of the Medicaid program, savings can come only from the following areas: limitations on eligibility; reductions in the level of benefIts directly provided to recipients; and/or changes in the reimbursement structure. The Fiscal Year 1998 budget derives part of the $37 million in savings from the latter option. In addition, the Fiscal Year 1998 budget utilizes enhanced fraud and abuse initiatives to control inappropriate and unnecessary utilization of Medicaid services. These two mechanisms have the least impact on direct services to recipients. The following summarizes the $37 million in redirection savings: $15,116,540 in state fund savings from enhanced fraud and abuse initiatives. The Governor recommends that the department focus its fraud and abuse efforts within the psychology, psychiatry, home health, durable medical equipment, nursing home, and Medicare crossover programs. $11,113,960 in state fund savings from changes in reimbursement methodologies for inpatient hospital ($4,119,160) and physicians ($6,994,800). The Governor recommends that inpatient hospital services be reimbursed based on Diagnosis Related Groups (DRGs) methodology. In addition, the Governor recommends that physician reimbursement be based on 87 percent ofthe Resource Based Relative Value Scale (RBRVS). $10,758,949 in state fund savings from the statewide Recommended Appropriation as a Percentage of the State Budget 10.5% expansion of managed care initiatives which include the pilot Health Maintenance Organization (HMO) and Georgia Better Health Care (GBHC). The Governor recommends the expansion ofthe GBHC program to 139,000 individuals in 56 counties (Southeast, Central and Northeast Georgia; Athens; and, Columbus areas). The Governor recommends that Indigent Care Trust Funds be used to: expand the Children 1st program statewide; fund teen pregnancy prevention services in support of welfare reform; and, fund the Policy Council for Children and Families. As required by Indigent Care Trust Fund rules, these new initiatives focus on prevention and indigent care. In addition, funding for these initiatives does not supplant existing program funding. In addition, the Governor is continuing his commitment to developing less costly community alternatives to institutionalization. The Governor recommends that Indigent Care Trust Funds also be used to: increase slots for Medicaid (2,061 slots) and non-Medicaid (932 slots) eligible individuals under the Community Care Waiver program; and, increase slots for the Independent Care Waiver program (30 slots). The Governor's recommended savings are offset by an increase of $35 million in state funds to continue providing payments of medical services for Georgia's Medicaid eligible population. The departmental impact of the recommended savings, the growth in Medicaid benefIts, and transfers from the Department of Human Resources is a net increase of$7.7 million in state funds. 347 DEPARTMENT OF MEDICAL ASSISTANCE Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Audit Contracts Medicaid Benefits Total Funds F.Y.1995 Expenditures 12,756,698 4,427,130 121,203 76,194 768,433 64,884,206 21,929,026 376,117 814,585 3,443,267,083 3,549,420,675 F.Y.1996 Expenditures 13,474,432 5,569,464 176,861 39,472 765,370 66,928,584 25,242,143 424,231 918,317 3,493,159,908 3,606,698,782 F.Y.1997 Current Budget F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 15,544,436 5,994,250 188,400 39,500 765,380 108,820,859 26,169,000 425,000 772,500 3,581,020,602 15,704,556 5,314,019 188,400 51,500 765,380 108,584,768 42,678,090 475,000 772,500 3,546,176,643 51,46~,804 15,704,556 5,314,019 188,400 51,500 765,380 108,584,768 42,678,090 475,000 772,500 3,597,643,447 3,739,739,927 3,720,710,856 51,466,804 3,772,177,660 Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 2,219,875,758 112,144,034 2,332,019,792 1,217,400,883 306 4 2,244,271,890 104,343,449 2,348,615,339 1,258,083,443 306 4 2,320,332,054 107,665,807 2,427,997,861 1,311,742,066 306 4 2,261,260,169 116,185,544 2,377,445,713 1,343,265,143 306 4 31,466,804 31,466,804 20,000,000 2,292,726,973 116,185,544 2,408,912,517 1,363,265,143 306 4 Medicaid Benefits by Category of Service Other Care FY 1996 17% Drugs 10% Hospitals 34% Medicaid Benefit Expenditures by Aid Category AFDCAdults 17% FY 1996 Aged 18% Childen 22% Blind 6% Nursing Homes 25% Note: These charts do not include the Indigent Care Trust Fund 348 Disabled 37% DEPARTMENT OF MEDICAL ASSISTANCE Financial Summary F.Y.1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Audit Contracts Medicaid Benefits Adjusted Base 15,700,652 5,314,019 188,400 51,500 765,380 108,584,768 42,678,090 475,000 772,500 3,598,428,720 Redirection Level Funds To Redirect Additions (95,186,436) 90,066,907 Redirection Totals 15,700,652 5,314,019 188,400 51,500 765,380 108,584,768 42,678,090 475,000 772,500 3,593,309,191 Enhancements Totals 15,700,652 5,314,019 188,400 51,500 765,380 108,584,768 42,678,090 475,000 772,500 3,593,309,191 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 3,772,959,029 2,335,285,287 116,185,544 2,451,470,831 1,321,488,198 306 4 (95,186,436) (58,196,987) (58,196,987) (36,989,449) 90,066,907 3,767,839,500 55,066,907 55,066,907 35,000,000 2,332,155,207 116,185,544 2,448,340,751 1,319,498,749 306 4 3,767,839,500 2,332,155,207 116,185,544 2,448,340,751 1,319,498,749 306 4 $2,700 Average Cost per Recipient FY 1990 - 1996 $2,600 $2,500 $2,400 $2,300 $2,200 $2,100 $2,000 1990 1991 1992 1993 1994 Note: These charts do not include the Indigent Care Trust Fund $2,646 1995 1996 349 DEPARTMENT OF MEDICAL ASSISTANCE F.Y. 1998 Budget Summary ADJUSTMENTS TO CURRENT BUDGET GOVERNOR'S RECOMMENDATIONS F.Y. 1997 STATE APPROPRIATIONS (Includes $148,828,880 in the Indigent Care Trust Fund) 1. Annualize the Fiscal Year 1997 salary adjustment. 2. Transfer state match from the Department of Human Resources for community mental health and mental retardation service expansions. 3. Reflect decrease in agency self-insurance rates. 4. Reflect decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 1,311,742,066 56,273 9,691,741 (1,602) (280) ADWSTED BASE REDIRECTION FUNDS FUNDS TO REDIRECT 1. Implement pre-processing of Medicaid claims to ensure appropriateness of billing. 2. Enhance Medicaid program review to reduce unnecessary or inappropriate costs by systematically analyzing providers and services with the highest Medicaid expenditures or claim volume. 3. Modify Medicare Crossover payment system to deny duplicate or inappropriate claims 4. Expand Georgia Better Health Care and the voluntary HMO statewide. 5. Implement DRG reimbursement methodology for hospital providers. (The DRG reimbursement methodology will sustain the Fiscal Year 1997 redirection savings in addition to the Fiscal Year 1998 redirection savings.) 6. Reduce fraud and abuse in the Outpatient Hospital program by establishing a prospective reimbursement methodology with prepayment and retrospective claims review. 7. Reduce reimbursement rates to 87 percent of the Resource Based Relative Value Scale (RBRVS) for physicians and other professional services. 8. Reduce outpatient psychotherapy by psychologists from a maximum of 24 hours per recipient to 12 hours per recipient per year. 9. Sustain Fiscal Year 1997 redirection savings in Fiscal Year 1998 for the nursing home ($23,353,280) and pharmacy ($11,523,000) programs. 1,321,488,198 (5,829,000) (1,943,000) (1,943,000) (10,758,949) (4,119,160) (3,458,540) (6,994,800) (1,943,000) Yes Total Funds to Redirect ADDITIONS 1. Provide for increased utilization of Medicaid benefits. (36,989,449) 35,000,000 Total Additions TOTAL STATE FUNDS 35,000,000 1,319,498,749 350 DEPARTMENT OF MEDICAL ASSISTANCE Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Commissioner's Office 1,636,825 818,413 1,554,185 777,092 2. Medicaid Benefits 3,204,220,602 1,118,526,507 3,224,346,556 1,126,228,799 3. Systems Management 33,705,941 10,695,591 49,550,371 10,979,284 4. Indemnity Chronic Care 1,481,766 572,496 5. Long Term Care 1,625,453 680,530 6. Maternal and Child Health 1,302,697 527,225 1,744,740 779,531 7. Reimbursement Services 8,809,009 3,671,701 9,045,035 3,575,157 8. Indemnity Acute Care 3,194,960 1,334,009 9. Professional Services 2,469,349 1,051,609 10. Legal and Regulatory 5,536,777 2,768,388 5,608,422 2,804,211 11. Managed Care Programs 4,034,252 1,972,336 4,757,973 2,269,612 12. General Administration 91,399,022 22,200,886 89,392,857 21,349,678 13. Indigent Care Trust Fund 385,000,000 148,828,880 377,162,635 148,828,880 TOTAL APPROPRIATIONS 3,739,739,927 1,311,742,066 3,767,839,500 1,319,498,749 RECOMMENDED APPROPRIATION: The Department of Medical Assistance is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $1,319,498,749. 351 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 limiteq 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 53 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. 1996, collections and measurable cost avoidance saved over $830 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. In Fiscal Year 1996, the department paid for health care services to 1.2 million individuals, at a cost of $3.5 billion. A broad array of services is available to address the needs of those covered by the program. Reimbursement for physician, pharmacy, hospital and nursing facility services account for almost 83 percent of benefit expenditures. Medicaid 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 currently reimbursed at a flat rate for each admission; however, beginning in F.Y. 1998, the department proposes implementing a new hospital reimbursement methodology which will make payment for services variable based on procedure codes. Reimbursement for outpatient hospital services is based primarily on reasonable costs. Hospital reimbursement accounts for approximately 34 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 approximately 25 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 14 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 10 percent of benefit expenditures. A variety of other services account for 17 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 of the Social Security Act; Title 49-4, Official Code of Georgia Annotated. 352 DEPARTMENT OF MEDICAL ASSISTANCE Strategies and Services In Fiscal Year 1997, it is projected that Medicaid will pay for health care services to 1.2 million individuals. Payments for services are projected to total $3.2 billion or approximately $2,677 per recipient. Since Fiscal Year 1980, the number of recipients has risen 189 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 (2.9 percent projected for Fiscal Year 1997). While the program was experiencing 10 to 15 percent annual increases in benefit expenditures during the late 1980s and the early 1990s, the state is now seeing a slowdown in the rate of growth in benefits. In fact, Fiscal Year 1996 per recipient costs decreased for the first time this decade by 1.1 percent. With redirection and cost containment, the Fiscal Year 1997 budget reflected a 2.24 percent decrease over Fiscal Year 1996. The Governor's recommendation for Fiscal Year 1998 represents a flat-lined budget when compared to Fiscal Year 1997. 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 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 check screenings for children. GEORGIA BEITER HEALTH CARE Georgia Better Health Care (GBHC) is a Medicaid primary care case management program currently operating in 51 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 the GBHC program is mandatory for all Medicaid recipients living within the target counties, except for recipients residing in counties where the pilot Health Maintenance Organization program has been implemented. Recipients in these counties have the option to choose between the pilot HMO and the GBHC programs. The department does not require that individuals residing in nursing facilities, personal care homes, mental hospitals, and other domiciliary facilities enroll in the GBHC program. Additionally, the department has excluded recipients with short-term Medicaid enrollment from the GBHC program. Each eligible GBHC recipient is linked to a primary care provider who is responsible for providing primary care services and authorizing 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 feefor-service reimbursement applies. The Georgia pilot primary care case management program began in October 1993 in seven counties. Currently, almost 1, 100 primary care providers deliver and manage care for approximately 368,636 Medicaid recipients in 51 counties. During Fiscal Year 1997, the department will expand the primary care case management program to 229,000 recipients in 51 counties. The department will complete the statewide expansion of the Georgia Better Health Care in Fiscal Year 1998. During Fiscal Year 1998, the department will expand the Georgia Better Health Care program to 139,000 individuals in 56 counties. These fmal 56 counties include: Appling, Atkinson, Bacon, Ben Hill, Brantley, Charlton, Clinch, Coffee, Irwin, Jeff Davis, Long, Montgomery, Pierce, Tattnall, Toombs, Ware, Wayne in Southeast Georgia; Hancock, Jasper, Morgan, Putnam, and Wilkinson in Central Georgia; Clarke, Greene, Jackson, Madison, Oconee, Oglethorpe, and Taliaferro in the Athens area; Chatahochee, Harris, Lamar, Marion, Meriwether, Muscogee, Pike, ScWey, Stewart, Talbot, Taylor, Troup, Upson, and Webster in the Columbus area; and, Banks, Elbert, Franklin, Habersham, Harty, Lumpkin, Pickens, Rabun, Stephens, Towns, Union, and White in Northeast Georgia. HEALTH MAINTENANCE ORGANIZATIONS The department has implemented a pilot managed care program in five metro Atlanta counties (Clayton, Cobb, DeKalb, Fulton and Gwinnett). The department has contracted with a Health Maintenance Organization to provide a comprehensive array of health care services to Medicaid eligibles who choose to enroll. The department intends to offer additional contracts to every state licensed HMO that applies for a contract and meets the state's standards for participation. The pilot HMO program focuses on the needs of women, particularly pregnant women and their children. Financing incentives are 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. In addition, HMOs are required to demonstrate that they have made a good faith effort to encourage Medicaid enrollees to 353 DEPARTMENT OF MEDICAL ASSISTANCE -- Strategies and Services participate in their health plan for preventive health care, rather than waiting until they have an acute need for medical services. HMOs are compensated with a lump sum per member per month capitation rate developed by an actuarial firm. The rates are age and gender specific by aid category. All participating HMOs are required to provide the same basic Medicaid services and encouraged to provide expanded services. All HMOs are paid the same rates, which represents less than 100 percent of the expected fee-for-service expenditures for an equivalent population. In Fiscal Year 1996, 3,500 Medicaid eligibles enrolled in the voluntary HMO pilot program. In Fiscal Year 1997, the department will expand the HMO pilot program to include Savannah, Macon, and Augusta. Statewide expansion of the HMO pilot will continue through Fiscal Year 1998. Future HMO expansion sites will be selected based on existing HMO market penetration. MEDICAID FRAUD INITIATIVES The department has been actively pursing potential fraud and abuse within the Medicaid program. In Fiscal Year 1996, the department's Office of Investigations and Compliance investigated more than 300 fraud cases which resulted in 27 fraud convictions worth more than $3.0 million. Additionally, the efforts of the Fraud and Abuse Unit, which was established in 1995, has resulted in six convictions and thirteen indictments awaiting trial. The Fraud and Abuse Unit represents a collaborative effort between the Department of Medical Assistance, the Law Department, the GBI and the Department of Audits. At present, the Department of Medical Assistance has approximately 400 active investigations of fraud and abuse. Finally, the department has targeted specific areas for fraud and abuse investigations. These areas include the non-emergency transportation (NET), durable medical equipment, psychology, psychiatry and Medicare crossover programs. The department anticipates even greater Medicaid savings resulting from enhanced fraud and abuse initiatives in both Fiscal Year 1997 and 1998. The new initiatives include the tracking of claims to detect unusual billing and claims submission practices by providers; pre-processing of claims to ensure appropriateness of billing; and, enhanced review of programs and providers that have significant increases in claims or payments. The Governor's Fiscal Year 1998 recommendation includes $15.1 million in state fund savings. 1,400,000,000 Medicaid Growth Average Cost per Recipient Declines 1,200,000,000 ; 1,000,000,000 t~ 800,000,000 ~ ! 600,000,000 ! ::~IIIUIIIII .. 1980 19821984 1986 1988 1990 Fiscal Years __ L~ St_ate_Fun_ds _ _R_ec_iP_ien_t_ s _ 1,200,000 1,000,000 354 DEPARTMENT OF MEDICAL ASSISTANCE Results-Based Budgeting Program Summaries MANAGED CARE PROGRAMS PURPOSE: Provide a more cost effective health care benefit for Georgians eligible for Medicaid by transitioning delivery of health care services to Medicaid recipients from fee for service to managed care delivery systems. GOALS Improve access to appropriate care. Improve continuity of care. Control costs of Medicaid benefits. Increase budget predictability. HEALTH PRACTITIONER PROGRAMS PURPOSE: Provide comprehensive health care benefits that promote healing and prevent further debilitation or catastrophic illness for Georgians eligible for Medicaid. GOALS Provide access to health care services for Medicaid recipients throughout Georgia. Make available to recipients the most cost-effective therapy and treatments possible within statutory requirements and budgetary constraints. Detect and prevent fraud and abuse. Ensure that services provided are consistent with current medical standards ofpractice. Assure program compliance with federal and state regulations related to practitioner services. HEALTH INSURANCE PREMIUM PROGRAMS PURPOSE: Procure available health insurance coverage for Medicaid eligibles thereby avoiding unnecessary costs to the Medicaid program. GOALS Identify all possible cases in which premium payments constitute a cost effective, available alternative to Medicaid coverage alone. Maximize cost avoidance through premium payments. Privatize the Health Insurance Premium Payment program. Ensure the timely and accurate payment of Medicare premiums for enrolled Medicaid recipients. 355 DEPARTMENT OF MEDICAL ASSISTANCE -- Results-Based Budgeting COMMUNITY PROGRAM PURPOSE: Provide community based programs or physician directed services to special populations or under-served areas. Services include home health, ambulance and non-emergency transportation, dialysis, specialized case management services, rural and other community health clinic services, behavioral health services. GOALS Provide community based alternatives to institutional services for Medicaid recipients. Assure access to medically necessary services for Medicaid recipients. Improve cost effectiveness in service delivery. Detect and prevent fraud and abuse. WAIVER PROGRAMS PURPOSE: Provide for the health care needs of special populations through cost-effective Medicaid demonstration programs. GOALS Enable institutionalized recipients to receive services in community settings. Prevent unnecessary institutionalization of Medicaid recipients. Maximize choice and independence for Medicaid recipients while assuring access to quality services. Detect and prevent fraud and abuse. MATERNAL & CHILD HEALTH PROGRAMS PURPOSE: Improve health status of children and birth outcomes for mothers who receive Medicaid benefits. GOALS Improve the health status and birth outcomes of women recipients during pregnancy and during the post-partum period. Improve health outcomes of infants and children delivered under Medicaid coverage. Reduce teen births. 356 DEPARTMENT OF MEDICAL ASSISTANCE -- Results-Based Budgeting INSTITUTIONAL PROGRAMS PURPOSE: Provide acute and long term health care for Medicaid recipients in institutional settings when necessary. GOALS Ensure appropriate access to institutional services for Medicaid recipients. Make available to recipients the most cost-effective treatment for acute illness and long term care in institutional setting when necessary. Detect and prevent fraud and abuse. Ensure that institutions and the medical services that are provided meet accepted standards of quality. Establish reasonable and equitable reimbursement rates. Maximize federal fmancial participation to support the cost of uncompensated care provided by hospitals to indigent patients. Support a portion of medical education costs through Medicaid reimbursement rates paid to teaching hospitals. 357 DEPARTMENT OF MEDICAL ASSISTANCE -- Results-Based Budgeting AGENCY PROGRAMS 1. Managed Care 2. Health Practitioner 3. Health Insurance Premium 4. Community 5. Waiver 6. Maternal and Child Health 7. Institutional TOTAL Program Fund Allocations F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 25,021,405 9,515,350 753,823,390 285,213,928 345,718,060 135,394,109 60,543,412 21,054,217 230,590,367 64,030,617 109,746,242 25,800,158 1,829,297,051 621,904,807 3,354,739,927 1,162,913,186 25,042,721 9,499,532 754,465,593 284,739,801 346,012,184 135,168,817 85,840,403 30,710,924 230,786,545 63,924,072 109,839,610 25,757,227 1,838,689,809 620,869,496 3,390,676,865 1,170,669,869 PASS-THROUGH FUNDING 1. Indigent Care Trust Fund 385,000,000 148,828,880 377,162,635 148,828,880 TOTAL APPROPRIATIONS 3,739,739,927 1,311,742,066 3,767,839,500 1,319,498,749 Program Funding Allocation FY 1998 Recommended State Funds Health Practitioner 70"......0000--m07""S"0? 24% Health Insurance Premium 12% L ~ 358 Maternal and Child Health 2% _ MERIT SYSTEM OF PERSONNEL ADMINISTRATION Total Budgeted Positions as of October 1, 1996 -- 206 State Personnel Board ,----------1 Appeals Section Commissioner 4 4 Conducts hearings...handles investigative data and tran- scripts for State Personnel Board. I Deputy Commissioner Human Resources Administration 1 Organizational Services: Strategic Development Legal Services Public Information Services 7 I Provides legal services, budget, strategic planning, quality initiative, performance monitoring for health benefit plan, and public relations and information for agency. I Assistant Commissioner 2 I Compensation and Staffing Division 49 I Training and Organi- zation Development Division 16 I Employee and Community Services 6 Recruits, interviews, and counsels applicants and employees ... examinations for applicants...handles applicant files, problems and inquiries ...certifies employees for promotion ... develops and validates selection devices... serves as the agencies' support service to establish/change positions...statewide classification and compensation plans...salary and benefits surveys and research reviews reductions in force plan classifies and monitors certain other positions. Employee training and development programs... Certified Public Managers Program... managerial and other training programs... consultation on workforce and organizational development. Provides assistance to agencies on diversity, EEO/ ADA.. .investigates complaints for Office on Fair Employment Practices... mediates...provides employee relations services such as Employee Suggestion Program, service awards, charities program. Internal Administration Division 51 I Employee Benefits Division 55 I Personnel Practices Evaluation and Audit 11 Internal support for procurement, personnel, mailroom, and space management...audits agencies payrolls and personnel actions... mainframe computer system design, maintenance and implementation...PC support for LAN and desktop users...accounting service for agency and self-insured State Health Benefit Plan...audits payroll deduction locations and third party administrators... administration of Deferred Compensation Plan. Health insurance plan administration processes request for coverage direct payment processing... monitors third party health administration...Flexible Benefits Program administration (spending accounts, life and disability insurance) ...processes requests for flexible benefit coverage... processes claims for spending accounts. 359 Develop and maintain model personnel policies...conduct audits of agency personnel programs as required by Senate Bill 635. MERIT SYSTEM OF PERSONNEL ADMINISTRATION Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Claims Expense Total Funds Less Federal & Other Funds: Other Funds Total Federal & Other Funds Total State Funds Positions F.Y.1995 Expenditures 7,758,474 2,071,494 86,413 54,771 915,271 136,194,337 3,156,465 184,945 743,278,748 893,700,918 F.Y.1996 Expenditures 8,329,729 2,066,702 90,980 15,411 914,268 153,177,684 3,521,917 276,462 781,000,747 949,393,900 F.Y.1997 Current Budget F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 8,806,316 1,815,695 93,500 27,787 863,078 172,478,321 3,404,105 450,146 911,827,186 8,895,622 2,490,055 111,100 30,453 882,021 190,833,213 3,412,707 447,820 890,662,994 8,895,622 2,490,055 111,100 30,453 882,021 190,833,213 3,412,707 447,820 890,662,994 1,099,766,134 1,097,765,985 1,097,765,985 893,700,918 893,700,918 949,393,900 949,393,900 1,099,766,134 1,099,766,134 1,097,765,985 1,097,765,985 1,097,765,985 1,097,765,985 209 209 206 206 206 360 MERIT SYSTEM OF PERSONNEL ADMINISTRATION Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Claims Expense Total Funds Less Federal & Other Funds: Other Funds Total Federal & Other Funds Total State Funds Positions Adjusted Base 8,895,622 2,490,055 111,100 30,453 882,021 190,309,853 3,412,707 447,820 895,703,900 1,102,283,531 1,102,283,531 1,102,283,531 206 Redirection Level Funds To Redirect Additions (491,064) (44,000) (28,489) 491,064 44,000 28,489 (18,700) (7,700) (11,000) (5,040,906) (5,641,859) 18,700 523,360 7,700 11,000 1,124,313 Redirection Totals 8,895,622 2,490,055 111,100 30,453 882,021 190,833,213 3,412,707 447,820 890,662,994 1,097,765,985 Enhancements Totals 8,895,622 2,490,055 111,100 30,453 882,021 190,833,213 3,412,707 447,820 890,662,994 1,097,765,985 (5,641,859) (5,641,859) 1,124,313 1,124,313 1,097,765,985 1,097,765,985 1,097,765,985 1,097,765,985 (11) 11 206 206 361 MERIT SYSTEM OF PERSONNEL ADMINISTRATION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS (AGENCY FUNDS) 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Annualize the projected increases in administration, HMO contracts and claims expenses for the State Health Plan. 1,099,766,134 117,772 2,399,625 ADJUSTED BASE 1,102,283,531 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Eliminate 11 positions within the Human Resource Administration division. 2. Reflect projected State Health Plan cost savings: --Expansion ofthe Chronic Disease Management Program. --Establishment of a regional cardiac hospital network. --Development of a primary care physician network, establishment of a healthcare demand management program, and receipt of copayments from claimants for certain emergency room visits. 3. Reflect services identified as separate from the base level of services furnished state agencies. These non-base services (Le. outplacement services; various specialized training, recruiting, test development services; job evaluation; pay administration; etc.) are to be funded through contracts with interested state agencies. Only base level services will be funded through the merit system position assessment which will now be levied against both classified and unclassified positions. (600,953) (1,664,248) (1,500,000) (1,876,658) (1,162,915) Total Funds to Redirect (6,804,774) ADDITIONS 1. Add 11 positions to establish a Personnel Practices Evaluation and Audit unit in accordance with Senate Bill 635 as enacted by the 1996 General Assembly. 2. Fund implementation of Chronic Disease Management Program expansion. 3. Provide for study and development of a regional cardiac hospital network. 4. Reflect resources assigned to non-base services mentioned above which are to be funded through contracts with interested state agencies rather than as part of an agency's merit system position assessment for the base level of services provided to state agencies. 600,953 423,360 100,000 1,162,915 Total Additions 2,287,228 TOTAL REDIRECTION LEVEL 1,097,765,985 TOTAL AGENCY FUNDS 1,097,765,985 362 MERIT SYSTEM OF PERSONNEL ADMINISTRATION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Executive Offices 2,858,888 2,823,025 2. Human Resource Administration 5,493,449 4,996,369 3. Employee Benefits 1,087,710,941 1,085,623,267 4. Internal Administration 3,702,856 3,722,371 5. Personnel Practices Evaluation Audits 600,953 TOTAL APPROPRIATIONS 1,099,766,134 1,097,765,985 RECOMMENDED APPROPRIATION: The Merit System of Personnel Administration is funded from assessments, contract fees and health insurance receipts. The F.Y. 1998 recommended assessment to be levied on all state agency authorized positions for providing a base level of statewide services is $137 per authorized position. 363 MERIT SYSTEM OF PERSONNEL ADMINISTRATION Roles and Responsibilities The Merit System of Personnel Administration is the state's central agency for assisting state agencies in recruiting qualified individuals for positions within the executive branch of stat~ government. The Merit System is also the state's central recordkeeping agency for state employee data, and the central means of monitoring state personnel practices. The enactment of S.B. 635, passed during the 1996 Legislature, decentralizes the state's personnel administration system, allowing agencies the freedom to assume from the Merit System the responsibility for a variety of personnel recruitment and administration duties. The Merit System remains responsible for performing these duties for agencies electing not to assume them. EMPLOYEE BENEFITS The Employee Benefits Division administers the employee State Health Plan and the Flexible Benefits Plan. These plans include benefits such as fee-for-service and HMO health coverage, behavioral health coverage, pharmacy coverage, group term and dependent life insurance, accidental death and dismemberment insurance, and dental, legal, medical and child care spending accounts. The division is involved in benefit design and communcation, maintaining employee eligibility records, interacting with agency benefit coordinators, reviewing and administering claims, monitoring contractors providing insured benefit products, and review of plan utilization. COMMISSIONER'S OFFICE The Commissioner's Office provides overall leadership, direction and management of the agency to include the areas of legal services, public relations and information services, policy analysis and development, budget administration, strategic planning and coordination of the agency's quality work initiative. This division also provides: hearings of employee appeals ofadverse actions; research, counseling and education in equal employment opportunity and diversity; evaluation, counseling, mediation and education in management/employee relations; and management of the state's employee recognition, charitable contribution and employee suggestion programs. TRAINING AND STAFF DEVELOPMENT The Training and Staff Development Division assesses and assists agencies in determining employeejob-related skills needs, develops and delivers in conjunction with state agencies performance management training for new supervisors, assists departments in meeting training objectives by designing and/or conducting train-the-trainer sessions, and manages and conducts training courses for the Certified Manager Program. The Division fulfills its duties through several means including the oversight and coordination of the use of : a training center, teleconferencing facilities and equipment, satellite downlink facilities and equipment, and an education and training resource library. COMPENSATION AND STAFFING The Compensation and Staffmg Division offers a variety of services to assist agencies regarding employee compensation, work studies, applicant screening and evaluation, and recruitment. These services are usually in the form of labor market research and analysis, development and implementation of equitable pay and reward systems, general and specialized employee recruitment, distribution of job information, design and administration of written and nonWritten tests, and processing and evaluating job applications as requested. INTERNAL ADMINISTRATION The Internal Administation Division furnishes administrative, technological and accounting services to other Merit System divisions and administers the State Deferred Compensation Plan. These services include human resource management, payroll, purchasing, mailroom operations, contract services, data entry, and mainframe and personal computer systems support. The division also provides human resource services to state agencies through administration of the payroll audit and statewide drug testing functions. The division's duties also entail the receipt and deposit of health, flexible benefits and deferred compensation revenue; management of funds for the State Health Benefit plan in order to provide for claims payments while maximizing investment income; monitoring of contractor compliance and performance; provider billing and claims audits; and the investment and distribution of deferred compensation funds. PERSONNEL PRACTICES EVALUATION AND AUDIT The Personnel Practices Evaluation and Audit Division performs evaluations and audits of state agency personnel practices as required in S.B. 635, as passed in the 1996 Legislature, and in accordance with guidelines established by the Personnel Advisory Council. The division's duties include developing and maintaining model standards and processes which agencies may use in the course of their personnel administration activities. The division audits state agency personnel programs and practices for conformity and compliance with recognized professional practices and legal requirements. AUTHORITY Titles 20 and 45 of the Official Code of Georgia Annotated. 364 MERIT SYSTEM OF PERSONNEL ADMINISTRATION Strategies and Services The Merit System of Personnel Administration utilizes an assortment of programs and services in monitoring and coordinating personnel administration and benefit plans within state government. The recent enactment of S.B. 635 is significantly reshaping the role of the Merit System and state agencies in the selection, hiring and management of personnel. Agencies now are free to assume certain personnel administration activities from the Merit System if they choose, and all new state employees hired are exempt from the classified service and its administrative and procedural restrictions. As a consequence, the Merit System is moving from its traditional role as the central personnel administration authority for state agencies, to one of consultation, technical support and review. Examples of the department's strategies and services regarding addressing this new role appear below. The highlighted offerings include: changes in the department's organization concerning its revised mission under S.B. 635; development of new products and services to accommodate state agency needs; exploration and use of technological applications to improve the department's effectiveness and efficiency; cost saving initiatives that have been or will be incorporated in the State Health Benefit Plan's strategy to efficiently provide quality health services; and redesign of the state's human resource computer system. ORGANIZATIONAL CHANGES The department, to definitively satisfy the needs and expectations of agencies resulting from S.B. 635, is adopting an organizational design and reconfiguring its services so it can become increasingly responsive and flexible in the wake of these and other continuing changes in the state's personnel administration environment. The structure chosen is intended to meet the goals of responsiveness and flexibility to changes in customer needs, while providing the types of customized services necessary to assist agencies in achieving their business objectives. The Merit System's organizational changes include: Consolidation of two divisions into one division. This new division, the Compensation and Staffmg Division, consists of two units, the Office of Technical Assistance and Personnel Services, and the Office of Program Development and Administration. The Office of Technical Assistance and Personnel Services will provide direct personnel services and technical assistance to agencies as requested in the areas of recruitment, applicant screening, test administration, job evaluation, and position allocation to name a few. The Office of Program Development and Administration will be the department's development and consulting arm, supplying expertise and guidance to agencies in developing and implementing more effective personnel programs and processes. Plans to establish the Personnel Practices Evaluation and Audit unit using resources presently within the department. This unit will be responsible for auditing state agency personnel practices as required by S.B.635. Combining other divisions to lessen the department's number of administrative levels. In this case, merging the Health Benefit Services and Flexible Benefits divisions to form the Employee Benefits Division, and uniting the Accounting & Audits and Administration & Systems divisions to create the Internal Administration Division. NEW PRODUCT DEVELOPMENT The Merit System, as an . outgrowth of S.B. 635, has made new product development one of its major strategic goals. These new products and services will range from customized products created at an agency's request to development and implementation of statewide initiatives such as the GeorgiaGain performance management system. Among the new products currently being developed in this setting are training courses which educate managers and employees on the principles of continuous quality improvement, and implementation of the "discipline without punishment" approach to employee management to current and future interested agencies. The department is working closely with state managers in perfecting these and other products and services. The training courses mentioned are in support of the Quality Service Georgia statewide initiative, whereas the "discipline without punishment" policy development and implementation project evolved from certain state agencies desiring an alternative approach to present practices of disciplining employees. APPLICATION OF TECHNOLOGY The Merit System, searching for faster, more efficient means of performing and delivering its products and services, is broadening its use and application of technology wherever possible. The Training and Organizational Development Division, through the help of grants from the Georgia Statewide Academic and Medical System communications network, has begun using teledistance/teleconferencin g technology to conduct training conferences and seminars in an attempt to effectively and efficiently make these offerings conveniently available to a greater number Of state employees throughout the state. In F.Y. 1997, the division will study using computer based training (Le. self-paced customized instruction through interaction with a desktop personal computer) as another means 365 MERIT SYSTEM OF PERSONNEL ADMINISTRATION -- Strategies and Services of maximizing training availability for state employees. The department has also begun developing a site on the World Wide Web to provide general and job-specific information to any applicant or interested party having access to the internet. In F. Y. 1997 and F.Y. 1998, the department hopes to provide agencies on-line access to reference information and documents regarding personnel practice models and standards, State Personnel Board rules and other items. STATE HEALTH BENEFIT PLAN The State Health Benefit Plan, continuing efforts begun in 1980, is exploring additional ways in which it can furnish employees quality healthcare insurance coverage while keeping the costs of the services covered at a manageable, reasonable level. The Plan has instituted a series of cost management programs since 1980 resulting in over $100 million in annual savings. The Plan's current efforts in continuing this emphasis on quality improvement and cost management include: Establishing chronic disease and castrophic case management programs. Converting to a Resource Based Relative Value Scale professional fee reimbursement schedule. Contracting with diagnostic laboratories for services to plan members. For F.Y. 1998, the Plan's efforts toward quality improvement and cost management include: Organizing a regional network of cardiac hospitals to serve plan members. Expanding the Chronic Disease Management Program to include peptic ulcer disease. Developing a network of primary care physicians to serve plan members. Implementing a healthcare demand management program. HUMAN RESOURCE COMPUTER SYSTEM REDESIGN The state's human resource computer system (Georgia Employment Management System or (GEMS) is undergoing its first major overhaul since its inception in the late 1970's. This redesign is necessary due to the data and accessibility requirements of GeorgiaGain and other human resource management initiatives introduced since the original system was conceived. The redesigned system is intended to be able to manage much larger volumes of data through a wider range of computer technology (i.e., connecting personal computers and mainframes), and fully support the long term data and processing requirements of GeorgiaGain and other projects. Upon completion, the revamped system should be able to more fully assist agencies and the Merit System in compiling, processing, updating and analyzing job and other data to properly place the position within the GeorgiaGain classification structure along with addressing other personnel and payroll management needs. 600,000 State Health Benefit Plan 553,493 475,042 4 ,584 400,000 -+-------,-----------,-----,---------, 92 93 94 95 96 Fiscal Years 366 MERIT SYSTEM OF PERSONNEL ADMINISTRATION Results-Based Budgeting Program Summaries STATE HUMAN RESOURCE ADMINISTRATION PURPOSE: Collaborate with departments in achieving their business objectives by supporting and advising them in designing and operating personnel programs in such a way as to attract, retain or develop high quality employees. GOALS Provide leadership and coordination in statewide workforce policy analysis and development. Provide leadership and coordination in the design and implementation of statewide workforce initiatives. Establish and maintaiiJ. personnel policies, processes and practices which effectively support the human resource and business objectives of our customer agencies. Provide personnel processes which meet the quality and timeliness needs of our customer agencies. Provide technical assistance, consultation and professional instruction which is accurate and useful. SUBPROGRAM: STAFFING AND ASSESSMENT SERVICES PURPOSE: Support state agencies in identifying, assessing and hiring qualified applicants. GOALS Provide lists of qualified applicants for entry level and agency-requested jobs for agency use in hiring. Provide job information to applicants and generate interest in state employment within appropriate applicant pools. Provide technical assistance and consultation to agencies in all aspects of staffmg and assessment including development of minimum and preferred qualifications, development of tests, structured interviews and other screening devices, administration oftests, and development and application of assessment and hiring policies. SUBPROGRAM: COMPENSATION AND REWARD SYSTEM SERVICES PURPOSE: Establish and maintain a statewide compensation structure and reward system which provides equitable and adequate compensation and rewards based on merit and performance and to support agencies in attracting, retaining and motivating high quality employees by providing technical assistance and consultation injob analysis and compensation policies and practices. GOALS Establish and maintain a statewide pay plan that is labor market sensitive. Establish and maintain salaries for common jobs which are competitive with the relevant labor market. Provide accurate and useful technical assistance and professional instruction to state personnel staff. Process agency position classification actions as requested. 367 MERIT SYSTEM OF PERSONNEL ADMINISTRATION -- Results-Based Budgeting SUBPROGRAM: EMPLOYEE RELATIONS PURPOSE: Assist agencies in achieving their business objectives by providing services to promote fairness and equity in employment relationships, render decisions to appeals filed with the State Personnel Board regarding adverse actions and alleged rule violations, recognize and reward employee suggestions for improving the efficiency and effectiveness of state government, and to provide employees with a mechanism to make contributions to charitable organizations through payroll deduction. GOALS Maintain fairness and equity in employment relationships. Provide fair and objective mediators for Alternative Dispute Resolution Program. Provide fair and objective hearing officers for grievance hearings. Provide for quick, effective and impartial resolution of employee appeal of adverse actions and alleged rule violations. Recognize appropriate employee service milestones in a timely fashion. Recognize and appropriately reward employee suggestions for improving the efficiency and effectiveness of state government in a timely fashion. Provide a significant level of financial support to qualified charitable organizations through voluntary employee payroll deduction. SUBPROGRAM: HUMAN RESOURCES DEVELOPMENT SERVICES PURPOSE: Support state agencies in achieving their workforce development objectives by evaluating, designing, facilitating, coordinating and delivering the appropriate human resource training and organizational services. GOALS Provide leadership and coordination in interagency planning and implementation of major training initiatives. Increase state agencies' internal capacity to meet their training objectives. Promote and expand the use oftechnological approaches to address some of the state's human resource development needs. Provide facilities and other infrastructure such as classrooms, GSAMS teleconferencing, and satellite downlink capability to facilitate agency training delivery. Provide consultation and referral to customers on alternative approaches to meeting training and organizational development needs. Provide technical assistance and consultation in all aspects of training and organizational development. Deliver classroom training as appropriate. 368 MERIT SYSTEM OF PERSONNEL ADMINISTRATION -- Results-Based Budgeting SUBPROGRAM: PERSONNEL PRACTICES EVALUATION AND AUDIT PURPOSE: Support agencies in attracting, retaining and developing high quality employees by ensuring that agency personnel and employment policies, processes and practices meet minimum professional standards and by providing useful recommendations for improving existing practices. GOALS Audit all agency personnel and employment policies, processes and practices at least once every three years. Report major audit fmdings and recommendations to appropriate entities. Provide useful recommendations to agencies for improving existing policies and practices. EMPLOYEE BENEFITS PURPOSE: Attract and retain high quality employees by providing employee benefits which are comparable to those offered by competing employers and which contribute to increasing workforce productivity by aiding employees in maintaining personal health and financial security. GOALS Provide employee benefits which are comparable to those offered by competitors. Provide employee benefits which aid employees in maintaining personal health and fmancial security. SUBPROGRAM: STATE HEALTH BENEFIT PLAN PURPOSE: Attract and retain high quality employees by providing a health plan that is competitive with plans offered by other employers and which contributes to improving the overall workforce productivity by aiding employees in maintaining personal health. GOALS Pay for a major part of Plan members' expenses for the treatment of illness and injury. Offer health benefit coverage comparable to employer-sponsored plans of competitors. Encourage employees to maintain a healthy lifestyle in order to prevent future illness. Provide for high quality treatment in a cost-effective manner. 369 MERIT SYSTEM OF PERSONNEL ADMINISTRATION -- Results-Based Budgeting SUBPROGRAM: FLEXIBLE BENEFIT PLAN PURPOSE: Aid employees in maintaining family health and financial security and support agencies in attracting and retaining high quality employees by providing pre-tax flexible benefits which are valued by employees and comparable to benefits offered by competitors. GOALS Aid employees in maintaining fmancial security and reduce state payroll expense by providing for flexible benefit to be paid on a pre-tax basis. Aid employees in maintaining personal health and well-being by offering appropriate insurance and spending account options. Offer benefit options which are valued by employees. Offer a total flexible benefit package comparable to competitors. Educate members on the value of the benefits available. SUBPROGRAM: DEFERRED COMPENSATION PLAN PURPOSE: Aid employees in achieving their financial objectives and support agencies in attracting and retaining high quality employees by providing a pre-tax deferred compensation plan which is valued by employees and comparable to plans offered by competitors. GOALS Aid employees in maintaining fmancial security by offering a tax-deferred investment plan. Aid employees in maintaining fmancial security by offering investment options whose performance is comparable to the performance of appropriate benchmark indexes or investment instruments. Offer investment options which are valued by employees. Offer a deferred compensation plan which is comparable to plans offered by competitors. 370 MERIT SYSTEM OF PERSONNEL ADMINISTRATION -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE AGENCY PROGRAMS 1. State Human Resource Administration 2. Employee Benefits 10,480,733 1,089,285,401 10,709,674 1,087,220,139 TOTAL APPROPRIATIONS (AGENCY FUNDS) 1,099,766,134 1,097,929,813 371 DEPARTMENT OF NATURAL RESOURCES Total Budgeted Positions as of October 1, 1996 -- 1,497 Attached for Administrative Purposes Only Lake Lanier Islands Development Authority 7 - - - - - - - Board ofNatural Stone Mountain Memorial Association 584 Resources Jekyll Island-State Park Authority 191 r - - ' - -_ _......._ _---' Georgia Agricultural Exposition Authority 47 State Boxing Commission 0 Georgia State Games Commission 1 Civil War Commission 0 Commissioner Legal Executive 1----1 Assistant Director 15 2 1 I Environmental Protection Division 374 Administers and enforces Georgia's state and federal environmental laws governing water quality, air quality, drinking water, hazardous and solid waste, land reclamation, erosion and sedimentation control, ground and surface water allocation, underground storage tanks and related regulatory programs...other important activities include environmental radiation monitoring, geologic and groundwater investigations, emergency response, state superfund and scrap tire dump cleanups...operates Georgia's environmental laboratories testing public drinking water, rivers, lakes, air and land for contamination and public health problems. I Wildlife Resources Division 490 I Parks, Recreation and Historl(; Site:. Division 514 Enforces state wildlife and boating laws ... manages public use of wildlife and fisheries resources...operates a system of wildlife management areas, public fishing areas, and fish hatcheries... manages non-game and endangered species... licenses and registers boats ... administers natural heritage programs. Manages 63 state parks and historic sites including five lodge parks and six golf courses all of which are located on 70,000+ acres of state land. Emphasis is placed on natural resource protection. Through comprehensive planning and interpretive programming, provides quality services, programs and facilities to maximize revenue production. Coastal Resources Division 25 I Program Support Division 45 Administers applied research...marine fisheries management. ..marsh and shore permitting...riverhouse permitting and removal...public education ...shellfish sanitation... South Atlantic Fishery Management Council... Atlantic States Marine Fisheries Commission... coastal management program. Provides administrative support to the department including payroll, accounts payable, cash management, budget monitoring, inventory control, personnel services, and computer support services...coordinates projects across division lines. I Historic Preservation Division 22 I Pollution Prevention Assistance Division 9 Serves as "state historic preservation office" for Georgia... surveys and inventories of historic structures and archaeological sites...National and Georgia Register of Historic Places...Certified Local Governments ...federal and state grants assistance...tax incentives for historic preservation . preservation planning . federal and state regulatory compliance assistance ...information and education...provides technical assistance. Coordinates voluntary pollution prevention activities within the state... provides nonregulatory assistance to industry and others to reduce pollution...performs on-site pollution prevention assessments ... serves as the information center for pollution prevention... conducts workshops and training on pollution prevention issues and technologies .. .facilitates technical research through publicprivate partnerships. 372 DEPARTMENT OF NATURAL RESOURCES RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 $93,108,282 DECREASE OVER F.Y. 1997 BUDGET $4,682,582 REDIRECTION LEVEL .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $93,108,282 HIGHLIGHTS $10 million in bonds for the Governor's River Care 2000 Program, bringing to $24.5 million the funds available for River Care since Governor Miller initiated the program $150,000 in bonds to match federal funds for the renovation of the lighthouse on Sapelo Island and for construction of the Brasstown Trek trail. $1,368,000 to develop and establish adequate total maximum daily loads (TMDL) for Georgia's rivers and streams. There are approximately 423 stream segments in Georgia that require the development ofTMDL standards. A Federal Court issued a ruling againstthe U.S. Environmental Protection Agency (EPA) ordering the establishment of TMDLs for Georgia's streams within five years. EPA has appealed the ruling, but the outcome of the appeal is unknown. Therefore, the state must move forward with plans to establish TMDLs within the five year time period. At least 133 of the 423 stream segments requiring development of TMDL standards have degraded fish populations. The Environmental Protection Division and the Wildlife Resources Division are working in conjunction to identitY the cause ofthe degraded fish population and determine a way to remedy the problem. Five positions are being added to the Wildlife Resources Division to conduct stream surveys and undertake other fisheries related surveys and analysis, but their priority for the first few years will be to pinpoint the problems related to TMDLs. After the fishery problems are identified, the Environmental Protection Division will determine how to remedy the problems. Work on the remaining 290 stream segments will be conducted by consultants. $10,280,472 for the Hazardous Waste Trust Fund (HWTF) is being appropriated in F.Y. 1998. The Governor included an additional $7,619,541 in his F.Y. 1997 Amended Budget recommendation for the additional trust funds being collected in F.Y.1997. The HWTF is used for the clean-up of hazardous waste sites. Currently, 336 sites have been identified and listed on the state's Hazardous Site Inventory which require clean-up. Of these sites, 136 are being or will be cleaned-up by the responsible parties. The remaining 200 sites are being or will be cleaned-up using the HWTF. Ninety-six ofthe 200 sites are privately-owned abandoned sites and the remaining 104 are state and local government sites. The projected cost to clean-up all the known sites eligible for clean-up with the HWTF is approximately $98 million. Even ifno new hazardous waste sites are found between now and the sunset of the HWTF authorizing legislation in 2003, EPD predicts there may be a shortfall in clean-up funding for known sites. $535,000 in bonds for a sewerage system and furniture, fixtures and equipment for the conference center at Georgia Veterans State Park in Crisp County. One position and $259,187 are also being added to operate the facility. $125,000 in bonds to repair 125 feet of bulkhead near the Meridian Dock residence. Visitors to Sapelo Island catch the ferry at the Meridian Dock. The bulkhead has deteriorated to a point that damage will take place to the dock and residence if repairs are not made. $150,000 to allow the Attorney General's Office to do title work on the north end of Sapelo Island to fully document the State of Georgia's ownership of all property on Sapelo Island outside the Hog Hammock Community. $106,000 to transfer the hunting and fishing license selling system to Wildlife Resources' recently updated computer system. This will put the department in a position to move to a point of sale licensing system in the future. $200,000 to contract with the Department of Corrections for detainee crews for maintenance and construction projects at various state parks and historic sites. $350,000 for the second phase ofrepairs and maintenance to Rhodes Memorial Hall. A reduction of$380,000 and the elimination 000 positions due to the privatization of golf course maintenance at all seven golf courses operated by the department. The maintenance contractor will be responsible for maintaining all the green areas (fairways, greens and driving ranges). $1,725,000 in bonds for capital improvements to the Historic District on Jekyll Island. These funds will be used primarily for basic improvements to Crane Cottage and Cherokee Cottage, both of which offer good opportunities for leasing to private entities. 373 DEPARTMENT OF NATURAL RESOURCES Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Authority Lease Rentals Cost of Merchandise for Resale Advertising and Promotion Nongame Wildlife Habitat Fund Revolving Loan Grants Capital Outlay - New Const. -Repairs and Maintenance -Land Acquisition Support -WMA Land Acquisition -Shop Stock -User Fee Enhancements -Buoy Maintenance -Paving -Waterfowl Habitat -ParkPass Projects Grants - Land and Water -Environmental Facilities -Recreation -National Park Service -Fluoridation -McIntosh County -Georgia Heritage 2000 -National Prisoner of War Museum -Other -Chattahoochee River Basin Contracts - Technical Assistance - Cold Water Creek (COE) -Ga. Rural Water Association -Ga. State Games Comm. -Water Resources (USGS) -Paralympic Games Payments to Ga. Agricultural Exposition Authority F.Y.1995 Expenditures 84,089,996 16,449,218 934,148 2,349,292 4,115,249 2,845,655 17,210,446 2,105,647 1,475,301 103,406 2,589,132 298,556 540,842 20,756,351 8,472,354 10,196,728 224,027 800,000 346,671 1,293,357 60,094 500,000 98,202 1,476,700 273,854 96,759 1,481,005 158,289 85,237 100,000 135,000 250,000 1,479,148 106,513 170,047 80,000 187,259 300,000 400,000 2,354,025 F.Y.1996 Expenditures 87,794,825 18,724,923 897,210 2,679,923 3,505,205 3,018,990 20,903,130 1,318,901 1,702,504 33,929 2,604,542 416,723 794,668 9,964,401 10,483,771 4,534,838 437,157 800,000 356,149 1,709,244 112,732 500,000 196,513 1,495,811 422,977 158,369 1,226,276 101,506 33,794 100,000 270,000 F.Y.1997 Current Budget 74,842,887 15,068,303 543,147 2,087,217 2,455,943 2,317,656 3,456,651 886,332 1,293,265 20,915 2,878,663 575,000 818,810 2,907,140 213,750 754,174 350,000 1,300,000 26,250 500,000 800,000 800,000 100,000 256,500 841,092 106,513 170,047 279,545 300,000 1,500,000 2,281,543 2,700,000 101,213 170,047 202,448 300,000 895,000 2,330,914 F.Y. 1998 Al!ency Requests Redirection Level Enhancements Totals 74,895,963 14,959,879 584,421 2,161,099 2,106,943 2,384,593 5,365,515 894,280 1,324,990 20,915 2,856,663 575,000 150,000 74,895,963 14,959,879 584,421 2,161,099 2,106,943 2,384,593 5,515,515 894,280 1,324,990 20,915 2,856,663 575,000 703,810 2,738,000 213,750 737,330 350,000 1,300,000 26,250 500,000 8,346,641 475,000 9,050,451 3,213,000 213,750 737,330 350,000 1,300,000 26,250 500,000 800,000 760,000 800,000 760,000 100,000 244,215 1,000,000 100,000 1,244,215 170,047 202,448 300,000 2,214,368 8,448,586 170,047 202,448 300,000 10,662,954 374 DEPARTMENT OF NATURAL RESOURCES Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Authority Lease Rentals Cost of Merchandise for Resale Advertising and Promotion Nongame Wildlife Habitat Fund Revolving Loan Grants Capital Outlay - New Const. -Repairs and Maintenance -Land Acquisition Support -WMA Land Acquisition -Shop Stock -User Fee Enhancements -Buoy Maintenance -Paving -Waterfowl Habitat -ParkPass Projects Grants - Land and Water -Environmental Facilities -Recreation -National Park Service -Fluoridation -McIntosh County -Georgia Heritage 2000 -National Prisoner of War Museum -Other -Chattahoochee River Basin Contracts - Technical Assistance - Cold Water Creek (COE) -Ga. Rural Water Association -Ga. State Games Comm. -Water Resources (USGS) -Paralympic Games Payments to Ga. Agricultural Exposition Authority 75,461,825 15,068,687 578,682 2,123,623 2,172,632 2,339,920 3,198,037 752,508 1,310,865 98,600 2,858,663 575,000 703,810 2,738,000 213,750 754,174 350,000 1,300,000 26,250 500,000 800,000 800,000 100,000 256,500 101,213 170,047 202,342 300,000 2,330,914 Redirection Level Funds To Redirect Additions (2,866,476) (845,003) (1,738) (66,125) (69,561) 1,609,614 (2,000) (22,925) 634,739 160,907 1,567 15,500 38,673 1,518,000 117,000 20,400 (1,000) (16,844) 350,000 (300,000) (101,213) (291,391) Redirection Totals 73,230,088 14,384,591 578,511 2,072,998 2,103,071 2,378,593 6,325,651 867,508 1,308,340 98,600 2,857,663 575,000 Enhancements 703,810 3,088,000 213,750 737,330 350,000 1,300,000 26,250 500,000 800,000 500,000 100,000 256,500 170,047 202,342 300,000 2,039,523 Totals 73,230,088 14,384,591 578,511 2,072,998 2,103,071 2,378,593 6,325,651 867,508 1,308,340 98,600 2,857,663 575,000 703,810 3,088,000 213,750 737,330 350,000 1,300,000 26,250 500,000 800,000 500,000 100,000 256,500 170,047 202,342 300,000 2,039,523 375 DEPARTMENT OF NATURAL RESOURCES -- Financial Summary Budget ClllSses/Fund Sources Payments to Georgia Boxing Commission Payments to Civil War Commission Payments to Hazardous Waste Trust Fund Payments to Solid Waste Trust Fund Mountain Park Development Total Funds Less Federal & Other Funds: Federal Funds Other Funds Authority Paybacks Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Expenditures, Current Budget and Agency Requests F.Y.1995 Expenditures 7,000 31,000 F.Y.1996 Expenditures 7,000 F.Y.1997 Current Budget 6,650 31,000 31,000 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 6,315 6,315 31,000 1,097,576 1,128,576 2,273,980 6,479,033 10,280,472 9,766,448 4,350,270 14,116,718 2,786,505 3,139,155 6,792,756 6,453,118 (1,395,766) 5,057,352 10,812,285 202,899,278 321,904 192,755,843 139,063,103 135,747,360 22,472,307 158,219,667 47,415,301 70,305,955 9,469,828 200,000 643,559 128,034,643 74,864,635 1,801 1,296 37,844,086 58,805,893 8,783,889 200,000 473,145 106,107,013 86,648,830 1,869 1,314 9,480,869 22,802,030 8,789,340 200,000 41,272,239 97,790,864 1,497 1,317 9,824,869 23,232,030 8,789,340 200,000 42,046,239 93,701,121 1,478 1,321 9,824,869 23,232,030 8,789,340 200,000 22,472,307 42,046,239 116,173,428 1,478 1,321 376 DEPARTMENT OF NATURAL RESOURCES -- Financial Summary Budget Classes/Fund Sources Payments to Georgia Boxing Commission Payments to Civil War Commission Payments to Hazardous Waste Trust Fund Payments to Solid Waste Trust Fund Mountain Park Development Total Funds Less Federal & Other Funds: Federal Funds Other Funds Authority Paybacks Indirect Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y. 1998 Governor's Recommendations Adjusted Base 6,650 Redirection Level Funds To Redirect Additions (335) Redirection Totals 6,315 31,000 31,000 10,280,472 10,280,472 6,792,756 6,792,756 135,296,920 9,480,869 22,622,030 8,975,528 200,000 41,278,427 94,018,493 1,497 1,317 (2,974,997) 344,000 430,000 774,000 (3,748,997) (59) (2) 2,856,786 135,178,709 18,000 18,000 2,838,786 6 1 9,824,869 23,070,030 8,975,528 200,000 42,070,427 93,108,282 1,444 1,316 Enhancements Totals 6,315 31,000 10,280,472 6,792,756 135,178,709 9,824,869 23,070,030 8,975,528 200,000 42,070,427 93,108,282 1,444 1,316 377 DEPARTMENT OF NATURAL RESOURCES F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost ofthe F.Y. 1997 salary adjustment. 2. Adjust for non-recurring expenditures: --Paralympic Games contract. --Various one-time additions in Parks, Recreation and Historic Sites, Coastal Resources and Wildlife Resources. --One-time equipment costs. --Boat registration computer system. --Technical review of planning documents related to "water wars." --Chattahoochee River pollution fines. 3. Adjust Authority Lease Rentals to reflect fmal payment due in F.Y. 1998. 4. Adjust Authority Paybacks to reflect actual payments received in F.Y. 1998. 5. Reflect a decrease in agency self-insurance rates of $39,296 for the Department of Natural Resources and $106 for the Georgia State Games Commission. 6. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. ADJUSTED BASE 97,790,864 652,960 (895,000) (364,140) (100,000) (138,000) (50,119) (2,900,000) 77,685 (6,188) (39,402) (10,167) 94,018,493 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Parks, Recreation and Historic Sites - Privatize golf course maintenance at all seven golf courses and eliminate 30 positions. 2. Parks, Recreation and Historic Sites - Reduce Recreation Grants by $300,000 and eliminate the annual payment of $1 1,213 to the Institute of Community and Area Development at the University of Georgia. 3. Wildlife Resources - Eliminate two positions in Law Enforcement, one position and related expenses in Game Management and remove state funding for the construction of a shooting range on the Horse Creek Wildlife Management Area (WMA). 4. Wildlife Resources - Consolidate the Manchester Law Enforcement District with the Macon Law Enforcement District and eliminate one captain position. 5. Wildlife Resources - Reduce state funds in Game Management though the increase of federal Pittman-Robertson funds. 6. Environmental Protection - Eliminate two positions in the Geologic Survey Branch by abolishing the Water Wells Standard Act Program and restructuring the publications sales office. 7. Coastal Resources - Eliminate two positions and related expenses. 8. Parks, Recreation and Historic Sites - Decrease state funds by increasing anticipated park revenue from the opening of new facilities. 9. Historic Preservation - Reduce the contract payment for Regional Preservation Planning Services by $5,960 and eliminate funding for an intern. 10. Pollution Prevention Assistance - Reduce state funds in per diem, fees and contracts. (380,000) (401,213) (193,071) (115,771) (344,000) (84,138) (136,442) (430,000) (13,960) (111,000) 378 DEPARTMENT OF NATURAL RESOURCES -- KY. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 11. Wildlife Resources - Tenninate the Aquatic Weed Control Program in Fisheries Management, and close the Arrowhead Public Fishing Area (PFA) in Floyd County and the Baldwin Forest PFA in Baldwin County eliminating two wildlife technician positions. 12. Wildlife Resources - Return responsibility for the Coleman River WMA in Rabun County to the U.S. Forest Service and discontinue state operation of the Dyal Pasture WMA in Appling County. 13. Environmental Protection - Eliminate four positions in the Water Resources Branch and discontinue laboratory testing for certain contaminants not found in Georgia's public water systems. 14. Environmental Protection - Eliminate two positions in the Land Protection Branch and one position in the Hazardous Waste Branch in low priority programs. 15. Wildlife Resources - Discontinue state payment of shipping charges for delivery of hunting and fishing license to dealers. 16. Wildlife Resources - Shift funding ofa wildlife biologist position in the Nongame-Endangered Wildlife Program from state funds to federal and other funds. 17. Wildlife Resources - Consolidate the Waycross Law Enforcement District with the Metter Law Enforcement District and eliminate one captain position. 18. Parks, Recreation and Historic Sites - Eliminate two positions in Maintenance and Construction. 19. Parks, Recreation andHistoric Sites - Privatize operation of the Travelers Rest Historic Site in Stephens County and eliminate two positions. 20. Program Support - Remove one accountant position. 21. Environmental Protection - Shift funding of four positions in the Air Protection Branch's Vehicle Inspection and Maintenance Program from state funds to other funds and eliminate one position by discontinuing air quality monitoring for particulates at rock quarries. 22. Georgia Agricultural Exposition Authority - Reduce state support of the authority due to growth in revenue from the Georgia National Fair and other events held at the facility and due to the large reserves being generated by growth in authority revenues. At the end ofF.Y. 1996 reserves were $674,845 and are expected to approach $900,000 by the end ofF.Y. 1997. 23. Georgia Boxing Commission - Reduce funds by five percent. (143,615) (59,375) (147,079) (225,542) (40,000) (45,672) (66,550) (100,000) (77,310) (61,237) (281,296) (291,391) (335) Total Funds to Redirect (3,748,997) ADDITIONS 1. Provide a wage increase for day laborers and reduce the personal services lapse. 2. Provide funds to develop and establish adequate total maximum daily pollution loads (TMDL) for Georgia's rivers and streams including five positions in Wildlife Resources to conduct streams surveys. A Federal Court issued a ruling ordering the establishment ofTMDLs for Georgia's streams within five years. 3. Wildlife Resources - Provide funds to convert the hunting and fishing license selling system from the DOAS based computer system to Wildlife Resources' recently updated computer system. 4. Parks, Recreation and Historic Sites - Provide funds to contract with the Department of Corrections for detainee crews used by Maintenance and Construction. 5. Historic Preservation - Add funds needed to pay real estate rental on existing office space in the Healy Building. 6. Parks, Recreation and Historic Sites - Add one position and related expenses to operate the conference center at Georgia Veterans Memorial State Park in Crisp County. 7. Provide funds to do title work on the north end of Sapelo Island to fully document the State of Georgia's ownership of all property on Sapelo Island outside the Hog Hammock Community. 366,926 1,368,000 106,000 200,000 38,673 259,187 150,000 379 DEPARTMENT OF NATURAL RESOURCES -- F.Y. 1998 Budget Summary 8. Fund the second phase of repairs and maintenance for Rhodes Memorial Hall. , Total Additions TOTAL REDIRECTION LEVEL GOVERNOR'S RECOMMENDATIONS 350,000 2,838,786 93,108,282 ENHANCEMENT FUNDS CAPITAL OUTLAY I. Provide $10 million in bonds for the Governor's River Care 2000 Program. 2. Parks, Recreation and Historic Sites - Provide $250,000 for a sewerage system and $285,000 for furniture, fIxtures and equipment for the conference center at Georgia Veterans Memorial State Park in Crisp County. 3. Wildlife Resources - Provide $125,000 to repair 125 feet of bulkhead near the Meridian Dock residence. 4. Parks, Recreation and Historic Sites - Provide $150,000 to match federal funds for the Sapelo Island lighthouse renovation and the Brasstown Trek trail construction. 5. Jekyll Island-State Park Authority - Provide $1,725,000 for capital improvements to the Historic District on Jekyll Island. TOTAL ENHANCEMENT FUNDS See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds o TOTAL STATE FUNDS 93,108,282 380 DEPARTMENT OF NATURAL RESOURCES Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Commissioner's Office 2. Program Support 3. Historic Preservation 6,000,918 2,786,737 2,257,676 5,985,918 2,786,737 1,767,676 4,753,337 2,919,002 2,659,974 4,738,337 2,919,002 2,169,974 4. Parks, Recreation and Historic Sites 5. Coastal Resources 42,788,158 2,347,054 16,835,241 2,222,336 42,085,875 2,065,218 15,678,770 1,940,500 6. Wildlife Resources 34,372,069 29,467,648 33,880,967 28,632,546 7. Environmental Protection 8. Pollution Prevention Assistance 47,405,709 1,104,782 37,620,526 1,104,782 45,806,488 1,007,848 36,021,305 1,007,848 TOTAL APPROPRlATIONS 139,063,103 97,790,864 135,178,709 93,108,282 RECOMMENDED APPROPRIATION: The Department of Natural Resources is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $93,108,282. Non-State Revenue-Georgia Agricultural Exposition Authority 4,500,000 4,000,000 3,500,000 3,000,000 ~ ~2,500,000 ~ t ~ 2,000,000 o Budgeted .......... II ActuaI/Projected 1,500,000 1,000,000 500,000 0 1994 1995 1996 1997 1998 Fiscal Year (projected) (projected) 381 DEPARTMENT OF NATURAL RESOURCES Roles and Responsibilities The Department of Natural Resources provides natural resources development, ml!Dagement and protection services to Georgia's citizens and local governments. These services include the operation of state parks and historic sites, the management and protection of wildlife and coastal resources, the enforcement of wildlife, boating safety and environmental laws, promotion and assistance with pollution prevention, and protection and management of the state's water, air and land resources in accordance with various state and federal laws. Both the Commissioner's Office and the Program Support Division provide administrative support for the entire department. Six separate and distinct divisions provide services to the citizens of Georgia. PARKS, RECREATION AND HISTORIC SITES The division provides recreational opportunities to the citizens ofGeorgia through the development and operation of48 parks and 15 historic sites. These parks and historic sites attracted over 16.5 million visitors during F.Y. 1996. The division manages over 70,000 acres with such amenities as campgrounds, cottages, lodges, swimming pools, group camps and golf courses. WILDLIFE RESOURCES The division manages lands and freshwater habitat for public hunting, fishing and educational purposes and promotes the conservation and wise use of game and nongame wildlife resources. All state laws and departmental regulations regarding wildlife, fishery resources, wild animals, boating safety and hunter safety are enforced by the law enforcement section. The division manages Public Fishing Areas, Wildlife Management Areas and produces over 20 million fish each year in nine state hatcheries which are used to stock public waters. COASTAL RESOURCES The division's primary objectives are to ensure the optimum commercial and recreational utilization of Georgia's marine fisheries resources over the long term for the benefit of all Georgians and to protect, conserve and restore populations of marine turtles and mammals. These objectives are accomplished through research, artificial reef development and activities geared toward the protection of threatened and endangered marine species. ENVIRONMENTAL PROTECTION The division is largely a regulatory body whose main objective is to enforce state and federal water quality, water supply, air quality, solid waste and hazardous waste laws, rules and regulations. These objectives are accomplished through a permitting process coupled with monitoring, inspection, investigation and enforcement activities. The division also manages the Hazardous Waste Trust Fund and the Solid Waste Trust Fund. HISTORIC PRESERVATION The division provides historic preservation services and assistance to governmental agencies, private organizations and individuals. Duties include proposing properties for nomination to both the National and the Georgia Register ofHistoric Places, providing grants to support state and local preservation projects and offering technical assistance and information on tax incentives, archaeological matters and other preservation programs. POLLUTION PREVENTION The division is a non-regulatory organization designed to serve as a one-stop source for Georgia businesses interested in finding ways to reduce their hazardous waste, solid waste, water and air pollution problems through preventive measures. ATTACHED AGENCIES The Georgia State Games Commission promotes amateur athletic competition through the Georgia State Games. The State Boxing Commission sanctions professional boxing matches held in Georgia. The Civil War Commission encourages preservation of Civil War sites and promotes tourism to these sites. The Lake Lanier Islands Development Authority is responsible for the development and operation of tourist, convention and recreational areas and facilities on the islands. The Jekyll Island-State Park Authority is responsible for the development and operation oftourist, convention and recreational areas and facilities on the island. The Stone Mountain Memorial Association is responsible for the development and operation of tourist, convention and recreational areas and facilities at the mountain. The Georgia Agricultural Exposition Authority promotes, develops and serves agriculture and agricultural business interests of the state, produces and operates the Georgia National Fair, and encourages the agricultural accomplishments of Georgia's youth. AUTHORITY Titles 8, 12, 16,27,31,43,44 and 52, Official Code of Georgia Annotated and Public Laws 92-500, 93-523, 88-206, 94-580. 382 DEPARTMENT OF NATURAL RESOURCES Strategies and Services Georgia is geographically the largest state east ofthe Mississippi River and is blessed with great scenic beauty and many outstanding natural and historic resources which are enjoyed by the state's citizens and tourists alike. As the population grows, demands on Georgia's natural resources increase, making it essential that the Department ofNatural Resources (DNR) continue its obligation to protect, preserve and manage these resources for present and future generations. Governor Miller has shownbis strong commitment to ensuring a high quality of life through his balanced approach to the protection of the environment and proper management of the state's natural resources. DNR has many programs that serve the public and protect the environment. Some of DNR's activities in these area are highlighted below. PRESERVATION 2000 Governor Miller established the Preservation 2000 Program in 1991 in an effort to preserve Georgia's natural beauty for future generations. The Governor's goal was to acquire and protect 100,000 acres of natural and environmentally sensitive land. Unaltered, old-growth forests and wetlands, including river bottom hardwood forests, bays and other naturally occurring water features were priority acquisitions under the program. This program was very successful and in May of 1996 Governor Miller's goal of acquiring 100,000 acres during his administration was reached. Total funding for Preservation 2000 totaled $69.7 million, ofwhich $65 million was general obligation bonds. Approximately $52 million of these bonds are being retired with funds collected from an increase in hunting and fishing license fees and boat registration fees authorized in F.Y. 1992. General tax revenues are retiring the other $13 million. The remaining $4.7 million for land acquisition is from $3.3 million in other state and federal funds and about $1.4 million in private gifts of cash. Gifts ofland have been made with a total value of over $54 million. RIVER CARE 2000 ~ ,~JJ ==~. Recognizing that Georgia must have healthy rivers ifthe state's residents and visitors are to continue enjoying a high quality of life, Governor Miller announced during 1995 his intention to establish the River Care 2000 Program. The guiding principle of River Care 2000 is to share with the state's citizens the Governor's appreciation and deep regard for the importance of Georgia's 70,000 miles of rivers and streams. Georgians are very fortunate to have a good supply ofclean water. Programs implemented by various government entities, industry, farmers, foresters and other individuals have greatly helped to improve the water quality of the state's rivers over the past 20 years. Unfortunately, Georgia's rivers still face significant challenges: control of polluting storm-water runoff; erosion and subsequent sedimentation from land disturbing activity; destruction ofhistoric and pre-historic resources from development; restriction on public access to rivers for recreational use; and unwise development of flood-prone areas. River Care 2000 is a conservation program which will meet these challenges by enabling the state to .control and manage the state's rivers in an environmentally conscious manner. In September of 1995 Governor Miller appointed the River Care 2000 Coordinating Committee and directed the members to give policy level guidance to the program. The Committee has sought input from DNR, the private sector and the environmental community in evaluating important river resources throughout the state, identifying more effective river management methods and arranging for appropriate public or private entities to manage certain river corridors. The Coordinating Committee has recently approved procedures for selecting riverfront lands to acquire. Three types of acquisition projects have been identified: Riverway Demonstration Projects improve public access to a river and protect natural and historic resources by acquiring and managing land in the river corridor. The river corridor should be scenic and suitable for family recreation. This kind ofproject is not to be initiated by the state, but rather by the community, with local governments, federal agencies, citizens, landowners and organizations joining together to identify an initial vision for the river. These agencies and private interests will ask the state to become a partner for funding. IfDNR approves the funding, it will acquire only that land which is necessary for the project to succeed. To leverage the state funds, the other partners will be asked to contribute land already in public ownership, funds for development, staff time for operations and maintenance, and other resources, such as volunteered time. Significant Sites are tracts ofland which DNR will acquire and operate as traditional state public-use facilities: wildlife management areas or public fishing areas, parks or historic sites, natural areas, or greenways. Restoration Sites are tracts of land which the state will identify, acquire and manage to reduce nonpoint source water pollution. In addition to these three types of projects the state will also acquire conservation easements, where appropriate. In gen.eral, a conservation easement will be considered only if its terms are adequate to achieve the state's conservation objectives and it comes as a gift. The state will work with the private sector to acquire and protect river corridor property. The Nature Conservancy, The Conservation Fund, The Trust for Public Land and The Archaeological Conservancy are the major private, non-profit firms in 383 DEPARTMENT OF NATURAL RESOURCES -- Strategies and Services Georgia which acquire land for conservation purposes. They will be asked to negotiate, on the state's behalf, important tracts on rivers where they have expertise. The department will also diTectly negotiate and acquire river corridor projects. River Care 2000 acquisition funds include $13.5 million in state bond funds and $1.1 million in federal matching funds from the u.s. Environmental Protection Agency. The department will use a significant amount ofthese funds to encourage the creation of several Riverway Demonstration Projects throughout the state. Potential riverway projects are under discussion with the communities of Bibb County/Macon, Cherokee County/Canton, Effingham County, Floyd County/Rome, Muscogee County/Columbus, Newton County, and Laurens County/Dublin. DNR expects to have the entire $14.6 million currently available for land acquisition programmed for active projects by the end ofl996. The Governor's F.Y. 1998 budget recommendation includes an additional $10 million in G.O. bonds for River Care 2000. PRIVATIZATION INITIATIVES DNR retained Golf Resources Associates, Inc. (GRA) to provide an independent assessment of the department's golf course operations and the potential for privatizing the facilities. GRA submitted the Georgia Parks Golf Facility Privatization Study in May of 1996. Many of the changes DNR is making in golf course operations are from recommendations from this study. In July 1996 the Parks, Recreation and Historic Sites Division of DNR established a separate section within the division responsible for the operation of the seven golf courses under DNR's control. The new golf course section will enable the department to operate all golfcourses in a complementary fashion and take advantage of economies of scale in the purchase or lease of various items (golfcarts, golfballs, etc.) used in golf course operations. As a result of these changes DNR is in the process of soliciting bids for the lease of golf carts for all seven golf courses. The department is also looking for a single vendor to be responsible for the maintenance of all the golf courses. On October 2, 1996 a request for proposal was circulated requesting bids from vendors for the maintenance of all the golf courses. The maintenance contractor will be responsible for maintaining all the green areas (fairways, greens, and driving ranges) and will be required to provide the equipment to perform these functions. The contract, when awarded, will include performance criteria that must be met to continue the contractual arrangement. DNR feels a single maintenance contractor will allow the department to ensure that all the goIf courses under its control will have the same maintenance standards. The privatization ofgolfcourse maintenance will result in the elimination of 30 positions in the golf course unit. A request for proposal was also circulated in October of 1996 for the operation of the meeting facility under construction at Georgia Veterans Memorial State Park in Crisp County. Responses are currently being evaluated by the department. DNR, with the help ofthe Cordele-Crisp County Chamber of Commerce, is seeking a private investor to build a hotel adjacent to the meeting facility. The Governor is including in his F.Y. 1998 recommendation the privatization of the operation of the Travelers Rest Historic Site in Stephens County. The department is also pursuing a private entity to operate the Robert Toombs House in Wilkes County. TOTAL MAXIMUM DAILY LOAD (TMDL) The Environmental Protection Division (EPD) of DNR serves as the state's regulatory agency responsible for enforcing all state and federal environmental standards related to air and water quality, and land protection. In addition, EPD also strives to provide a balance that will protect Georgia's water and land supply thus ensuring a higher quality oflife, while at the same time sustaining a growing population and economy. Recently, a Federal Court issued a ruling against the U.S. Environmental Protection Agency, Region IV which said that Total Maximum Daily Loads (TMDLs) must be developed for state waters within a five-year time frame. TMDLs are discharge load limits that will have to be developed very carefully for our streams using as much high quality field data as possible so the limits accurately reflect the wastewater t~eatment level needed to protect the stream. There are approximately 423 stream segments throughout Georgia that will require TMDL development. To ensure the best possible information on Georgia's streams is developed, EPD in conjunction with the U.S. Environmental Protection Agency is in the process of developing an aggressive implementation plan for establishing load limits with a focus on non-point source pollution, land use and other pollutants. The plan is to focus on 20 percent ofthe streams each year in order to meet the requirement within five years. Development of inaccurate data will result in poor quality decisions and have serious impacts on how much local governments and industries have to spend on treatment facilities to meet the federal requirements. To comply with the Court's ruling and to help with this environmental problem, Governor Miller is recommending $1,368,000 to begin the TMDL development process in F.Y. 1998. TRUST FUNDS In 1992, Governor Miller initiated two very significant environmental protection trust funds used for hazardous waste and scrap tire dump clean-ups. Combined, these two trust funds have had a tremendous impact in funding programs devoted to the protection and 384 DEPARTMENT OF NATURAL RESOURCES -- Strategies and Services Hazardous Waste Inventory Hazardous Waste Summary Projected clean-up for abandoned sites Projected clean-up for state & local sites Total projected clean-up for all known sites No. of Sites 96 104 200 Projected Cost($M) 75.30 22.50 97.80 maintenance of Georgia's land and water resources. Hazardous Waste Trust Fund (HWTF). The provisions of Georgia's Hazardous Sites Response Act encourage voluntary clean-up of contaminated sites by responsible parties. If the responsible party is unwilling or unable to undertake the clean-up themselves, public moneys from the HWTF will be used to investigate and clean-up the hazardous waste site. The state can also sue the responsible parties for up to three times the clean-up cost ifHWTF moneys have to be spent. It is EPD's goal to ensure clean-up of contaminated sites in Georgia in an organized, consistent and cost-effective manner. Due to the number and complexity ofcontaminated sites, achievement ofthis goal is a longterm commitment that will reach well into the next decade. The state's Annual Hazardous Site Inventory list includes 336 sites. Of these sites, 136 will be cleaned up by responsible parties. The remaining 200 sites which consists of 96 privatelyowned abandoned sites and 104 state and local government sites will be cleaned up with the Trust Fund. Sites include emergency clean-ups needed to eliminate direct human exposure to hazardous chemicals, commercial hazardous waste facilities that have gone out of business leaving behind large amounts of flammable and toxic substances, and abandoned wood treating plants heavily contaminated with cancer causing chemicals. EPD estimates the total cost to clean-up these 200 sites to be $97.8 million. EPD projects there may be a shortfall based on projected clean-up costs of known sites when the Hazardous Waste Trust Fund law sunsets in 2003. As of September 1996, almost $39 million had been collected from fees and civil penalties for the HWTF. Ten percent of the HWTF receipts are utilized to reduce hazardous waste at the source through various pollution prevention methods. Governor Miller included an additional $7,619,541 in his F.Y. 1997 Amended Budget recommendation for the additional trust funds being collected in F.Y. 1997. For F.Y. 1998, Governor Miller is recommending $10,280,472 for the HWTF based on fines and fee collections. Solid Waste Trust Fund (SWTF). In 1992, the growing number of scrap tires throughout the state prompted the legislature to amend the Comprehensive Solid Waste Management Act to include the management of scrap tires. At that time there were approximately eight million illegally dumped tires in piles ranging from 200 to three million tires. These dumps pose a threat to public health and the environment because of their potential to bum and to become a breeding ground for mosquitoes. EPD has addressed the clean-up oftire dumps by initiating a two-pronged approach. One is strictly clean-up of existing dumps. Another is the start-up of a grant program to reimburse local governments that clean-up dumps within their jurisdictions. Under the second approach, grants are offered to local governments for the development and implementation of waste management and educational programs. The SWTF is funded from a $1 per tire fee charged to the consumer and collected by the retailer. As of September 1996, over $20 million has been collected from the assessed fee. For F.Y. 1998, Governor Miller is recommending $6,792,756 for the Solid Waste Trust Fund based on the $1 per tire fee. GEORGIA AGRICULTURAL EXPOSITION AUTHORITY Since F.Y. 1993 the Georgia Agricultural Exposition Authority's annual operating budgets have included approximately $2.3 million in state funds. The Governor's F.Y. 1998 recommendation for the authority reduces state funds by $291,391 to a level of $2,039,523, which is a 12.5 percent reduction of the F.Y. 1997 state appropriation to the authority. This funding level still allows the maintenance of a large cash reserve. In fact, reserves at the end of F.Y. 1996 were $674,845, far more than the $258,000 emergency reserve the authority maintains as a hedge against revenue downturns from authority events such as the National Fair. Based on net revenue growth to date in F.Y. 1997, it is expected that reserves will approach $900,000 by the end of F.Y. 1997. As illustrated by the graph on the Functional Budget Summary page, the authority has been successful in increasing its non-state revenue every year. The Governor's F.Y. 1998 recommendation includes non-state revenue totaling $3,528,000; however, based on past trends actual col1ections may reach $4 million, or $472,000 more than budgeted. 385 DEPARTMENT OF NATURAL RESOURCES -- Strategies and Services 90,000,000 80,000,000 70,000,000 60,000,000 f 50,000,000 .!!! c'0 40,000,000 30,000,000 20,000,000 10,000,000 a Total Funding for EPD o CIO (7) ...... CIO CIO (7) (7) Fiscal Year Additional Federal and Other I Funds Added During Year o Total Funding Included in Original Appropriation Total Positions in EPD 700 600 Ucl 500 0 ;l "iii 0 400 .1.1... .0.. 300 CI) ,g E ;:, 200 z 100 a r-- CIO (7) 0 ...... N C") V 10 co CIO CIO CIO (7) (7) (7) (7) (7) (7) (7) Fiscal Year Positions Added with Additional Federal and Other Funds o Positions Included in Original Appropriation 386 DEPARTMENT OF NATURAL RESOURCES Results-Based Budgeting Program Summaries HISTORIC PRESERVATION PURPOSE: Work in partnership with others to identify, protect and preserve historic and archaeological resources for a better Georgia, through administration of programs and services authorized by federal and state law. GOALS Achieve widespread public awareness and involvement in historic preservation in Georgia through collection and dissemination of information on all historic resources in Georgia. Secure financial and legal tools sufficient to preserve significant historic properties. Strengthen and expand the coordinated network of historic preservation organizations and professionals throughout the state in order to reduce the need for state budgetary and regulatory intervention. Protect and use Georgia's historic places so that they may exist into the future. PARKS, RECREATION AND HISTORIC SITES PURPOSE: Manage and protect the parks and historic sites under the state's jurisdiction; provide appropriate recreational opportunities for Georgia's citizens and guests and expand their knowledge of Georgia's historical, natural, and cultural resources; and identify and acquire other tracts of land with unique characteristics. GOALS Protect and enhance each site's significant natural and cultural resources through proper design management and development techniques. Maintain a wide range of quality outdoor recreational facilities in a manner that protects the site's resources. Enhance the public's appreciation of each site's value through interpretive and visitor orientation programs. Protect and preserve state and regionally significant natural, cultural, or historical features through acquisition of appropriate lands. COASTAL RESOURCES PURPOSE: Conserve and manage Georgia's marshes, tidal waterbottoms, sand dunes, beaches, and marine fisheries resources. GOALS Protect, conserve, and sustain Georgia's coastal marshlands, tidal bottoms, sand dunes and beaches. Manage, sustain, and enhance Georgia's commercial and recreational marine fisheries to provide social and economic benefits for Georgia's coastal economy. ' Provide optimum ecological, social, and economic benefits for present and future generations of Georgia's citizens and visitors. 387 DEPARTMENT OF NATURAL RESOURCES -- Results-Based Budgeting ENVIRONMENTAL REGULATION PURPOSE: Protect Georgia's natural environment and public health and welfare, through the regulation of facilities and activities that may threaten them. GOALS Ensure that Georgia's waters (lakes, streams and aquifers) are high quality and meet state and federal standards. Assure the continued availability of adequate quantities of Georgia's waters (surface and ground) for public and private users. Protect the health of Georgia's citizens who use public drinking water supplies by ensuring they are provided safe, potable, high quality water that meets state and federal standards. Assure that solid waste is reduced in quantity and properly handled and disposed pursuant to state rules. Reduce the amount and toxicity of hazardous wastes generated and ensure the transportation, storage and disposal of such wastes are in accordance with state and federal requirements. Protect the public from the adverse impacts oflead paint and asbestos removal. Regulate users of radioactive materials to ensure that requirements set forth in state and federal rules are met. Ensure that surface mining activities minimize environmental degradation and reclaim mined lands. Protect downstream people from dangerous dams. Improve Georgia's air quality, bring Atlanta's air quality into attainment with federal standards for ozone, and ensure that it meets state and federal standards. ENVIRONMENTAL MANAGEMENT PURPOSE: Facilitate the management of Georgia's natural resources by providing support services to the environmental regulatory programs and by cleaning up high priority environmental problems. GOALS Support and improve surface water quality management through river basin planning, periodic sampling, specialized analyses and computer modeling. Ensure groundwater quality and manage usage through adequate monitoring and evaluation for continued economic growth. Support environmental compliance and public health through a statewide program of air quality monitoring, modeling and evaluation, continuous air quality monitoring in non-attainment areas and high quality lab analyses of water and waste streams. Cleanup hazardous waste dumps (State Superfund) according to established priorities and coordinate the Federal Superfund cleanup program. Prevent environmental contamination from releases from underground tanks. 388 DEPARTMENT OF NATURAL RESOURCES -- Results-Based Budgeting WILDLIFE RESOURCES PURPOSE: Manage the native wildlife resources of the state through land ownership, management jurisdiction over wildlife area, and regulatory control of native species. Regulate the importation and possession over certain non-indigenous wildlife animals. Management includes administration and enforcement of pertinent state and federal laws, the acquisition of land and facilities for wildlife restoration and recreation, and providing information and education to the public on wildlife related Issues. GOALS Provide hunting, fishing and other wildlife recreation to Georgia's citizens and visitors. Conserve, restore and manage Georgia's wildlife and its habitats, including protected/endangered species through administration and enforcement of all state/federal laws regarding wildlife, fisheries, and wild animals. Acquire and manage land and facilities for wildlife and wildlife recreation. Increase the public's understanding and appreciation of wildlife resources through information and education programs. Protect and enhance the safety of Georgia's citizens and visitors in their outdoor recreation through enforcement of all hunter and boating safety laws and regulations. WASTE MINIMIZATION PURPOSE: Reduce the generation of wastes and toxic emissions, and instill a pollution prevention ethic through education of and technical assistance to the industries of Georgia. GOALS Increase the voluntary reduction ofwaste generation through effective education and information programs directed at Georgia's industries. Minimize waste generation and toxic emissions in Georgia's industries by identifying, researching, commercializing and transferring useful waste management technologies. ATTACHED AGENCIES AGRICULTURAL PROMOTION AND DEVELOPMENT PURPOSE: Promote, develop and support agriculture and agricultural business interests in the State of Georgia and maximize economic benefits derived in the state. (Georgia Agricultural Exposition Authority) GOALS Boost the state's economy by providing a facility for the agricultural community to present and promote its products and livestock to agribusiness persons and the public. Promote and exhibit the agricultural accomplishments of the youth of Georgia. Reduce the state's operating subsidy and boost the economy of middle Georgia by providing facilities for public events, exhibits and other activities such as fairs, non-agricultural exhibits, concerts, conferences and meetings. 389 DEPARTMENT OF NATURAL RESOURCES -- Results-Based Budgeting GEORGIA STATE GAMES PURPOSE: Promote amateur sports competition throughout the State of Georgia using state and private funds and entry fees. (Georgia State Games Commission) GOALS Increase participation in amateur sports competition by hosting the Georgia State Games Championships and nine statewide district sports festivals. Teach residents of Georgia about new sports, sports safety and sports health benefits through individual sports clinics. Educate the children of Georgia about health and physical fitness. CIVIL WAR PRESERVATION PURPOSE: Preserve, conserve and interpret the legacy of the Civil War in Georgia. (Civil War Commission) GOALS Preserve representative and significant resources from the Civil War period, especially endangered properties in the Atlanta Campaign and March to the Sea corridors. Enhance public understanding of the Civil War and its significance to contemporary life through collection, organization and distribution of information about Civil War properties and preservation techniques. Provide public access to Civil War sites and interpret them accurately. PROFESSIONAL BOXING REGULATION PURPOSE: Sanction professional boxing events that occur in the state. (State Boxing Commission) GOAL Protect the health and welfare of professional boxers. 390 DEPARTMENT OF NATURAL RESOURCES -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE AGENCY PROGRAMS 1. Historic Preservation 2. Parks, Recreation and Historic Sites 2,483,902 43,789,504 1,993,902 17,836,587 3. Coastal Resources 4. Environmental Regulation 2,602,818 29,241,801 2,478,100 26,263,266 5. Environmental Management 6. Wildlife Resources 7. Waste Minimization TOTAL 19,360,455 36,777,264 1,341,347 135,597,091 12,553,807 31,857,843 1,341,347 94,324,852 ATTACHED AGENCY PROGRAMS 1. Agricultural Promotion and Development 4,921,827 2,330,914 2. Georgia State Games 202,448 202,448 3. Civil War Preservation 31,000 31,000 4. Professional Boxing Regulation 6,650 6,650 TOTAL 5,161,925 2,571,012 PASS-THROUGH FUNDING 1. Paralympic Games 895,000 895,000 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 2,870,523 43,123,669 2,304,841 30,584,166 16,483,898 36,305,472 1,226,960 132,899,529 2,380,523 16,716,564 2,180,123 27,605,631 9,677,250 31,042,051 1,226,960 90,829,102 5,568,408 202,342 31,000 6,315 5,808,065 2,039,523 202,342 31,000 6,315 2,279,180 TOTAL APPROPRIATIONS 141,654,016 97,790,864 138,707,594 93,108,282 391 DEPARTMENT OF PUBLIC SAFETY Total Budgeted Positions as of October 1, 1996 -- 2,084 Georgia Police Academy 0 fflce of Highway Safety 19 Commissioner 8 --- --- Georgia Fire Academy 18 5 Georgia Peace Officer Standards and Training Council 20 Georgia Firefighter Standards and Training Council 6 Georgia Public Safety Training Center 97 I Deputy Commissioner I I Administration Services 208 Prepares paychecks, mail delivery, accounts receivable and payable, budget preparation, supply inventory, all purchasing, car maintenance and management, management of records, inventory of all property, coding of citations, computer maintenance and installation, citation processing, mainframe maintenance, credit card issuance, management of grants, ADA coordination. 3 , Driver Services 526 Processes all driver licenses, ID cards, learner's permits, handicap permits.. .issues all driver licenses, ID cards.. .issues all suspension letters and letters of revocation... handles all phone calls related to driver license... reinstates suspended licenses...provides and maintains all driver histories and motor vehicle reports.. .inspects all school buses... regulates driving schools...does all insurance suspensions, revocations, and reinstatements. I Field Operations 1,174 Enforces the state's traffic laws ...arrests violators, writes tickets, conducts accident investigations... teaches ADAP program... assists other agencies. marijuana eradication with aviation unit. .. dignitary protection...drug interdiction...teaches motorcycle safety classes. 392 DEPARTMENT OF PUBLIC SAFETY RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 $114,413,490 DECREASE OVER F.Y. 1997 BUDGET $1,249,733 REDIRECTION LEVEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $113,545,990 ENHANCEMENT FUNDS $867,500 HIGHLIGHTS $867,500 to add 15 license examiners and operating costs to implement a new three-stage graduated driver's license program for drivers under age 18. Under this program, the department would issue a learner's permit to 15 year old drivers who must be supervised by a licensed adult at least 21 years old in the passenger seat. The driver must be accident and conviction-free for six consecutive months to move to the next stage. In the second stage, 16 and 17 year old drivers would be issued an intermediate permit and must remain accident and conviction-free for 12 months before receiving a full, unrestricted license. The "graduated license" would also include restrictions on nighttime driving with certain exceptions, zero tolerance for alcohol or drugs, and will require all occupants to wear seat belts. by the Department of Children and Youth Services (DCYS). The center will be used to provide P.O.S.T. certified training for juvenile correctional officers in an initiative to address the increasing safety and security issues associated with incarcerated juveniles. The training facility would be located at GPSTC to use the support services in place at the center. $180,252 to fund three positions at the Georgia Public Safety Training Center (GPSTC) to administer and manage the Peace Officer Training Contracts with the regional and local academies. The Governor transferred the authority for the funding of the academies from the Peace Officer Standards and Training Council to GPSTC by Executive Order on May 23, 1996. The transfer will eliminate duplication of effort and improve the coordination and efficiency of the peace officer training delivery system. Georgia Traffic Fatalltles by Age $430,000 in bonds to make structural repairs to the Fire Academy's Bum Building. This training facility is the only state facility available to fire fighters for "live fire" training and has sustained structural damage due to heavy use. 15 - 24 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75 & older Age Gronp Fatalities Involving Alcohol and Drugs By Age of Driver 25 The purpose of the graduated driver's license program is to reduce accidents and fatalities involving teenage drivers by giving them an opportunity to improve their driving skills before an unrestricted license is issued. $1,540,000 in bonds to design and construct a training facility at the Georgia Public Safety Training Center for use Of-------------,-------,- 16-17 18-20 Age Gronp Ovcr20 393 DEPARTMENT OF PUBLIC SAFETY Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources F.Y.1995 Expenditures Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Posts Repairs and Maintenance Capital Outlay Conviction Reports Driver License Processing Peace Officers Training Contract Highway Safety Grants 82,476,918 12,611,572 286,141 4,475,426 1,563,020 1,894,647 2,325,533 3,793,170 1,586,496 244,933 175,000 285,070 1,030,394 3,748,855 2,986,900 F.Y.1996 Expenditures 85,618,693 14,886,395 305,470 4,870,245 1,737,371 7,071,948 3,420,186 3,413,783 2,349,436 179,837 F.Y.1997 Current Budget 87,441,409 11,445,101 262,576 3,936,943 816,176 243,221 1,892,072 3,864,829 2,480,893 180,000 260,229 1,267,878 4,228,405 2,483,162 303,651 1,923,009 3,972,660 2,425,200 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 87,364,197 12,343,294 263,020 3,983,000 624,975 233,521 2,062,592 3,748,911 2,393,906 128,833 304,701 1,923,009 3,636,577 2,425,200 719,877 239,990 15,645 491,750 2,213,745 284,000 650,000 18,596,490 3,750 88,084,074 12,583,284 278,665 4,474,750 2,838,720 233,521 2,346,592 3,748,911 2,393,906 778,833 18,596,490 308,451 1,923,009 3,636,577 2,425,200 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds DOAS - Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 119,484,075 132,093,037 121,187,740 121,435,736 6,350,814 2,562,921 25,000 1,650,000 10,588,735 108,895,340 2,119 1,242 4,366,148 3,495,135 75,000 1,650,000 9,586,284 122,506,753 2,118 1,245 2,724,517 1,150,000 1,650,000 5,524,517 115,663,223 2,084 1,245 2,724,517 1,150,000 1,650,000 5,524,517 115,911,219 2,060 1,243 23,215,247 144,650,983 23,215,247 25 25 2,724,517 1,150,000 1,650,000 5,524,517 139,126,466 2,085 1,268 394 DEPARTMENT OF PUBLIC SAFETY Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Posts Repairs and Maintenance Capital Outlay Conviction Reports Driver License Processing Peace Officers Training Contract Highway Safety Grants 86,658,936 11,727,147 266,439 3,765,443 592,871 243,021 1,889,139 3,649,438 2,386,405 180,000 303,651 1,923,009 3,722,660 2,425,200 Redirection Level Funds To Redirect Additions (2,505,339) (1,775,674) (8,300) (15,443) (70,058) (9,800) (320,200) (15,415) (1,945) (51,167) 1,628,308 2,066,888 80,000 45,626 467,000 8,800 (186,133) Redirection Totals 85,781,905 12,018,361 258,139 3,830,000 568,439 233,221 2,035,939 3,634,023 2,393,260 128,833 303,651 1,923,009 3,536,527 2,425,200 Enhancements 412,500 105,000 350,000 Totals 86,194,405 12,018,361 258,139 3,830,000 568,439 233,221 2,035,939 3,739,023 2,393,260 128,833 303,651 2,273,009 3,536,527 2,425,200 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds DOAS - Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 119,733,359 2,724,517 1,150,000 1,650,000 5,524,517 114,208,842 2,070 1,241 (4,959,474) (4,959,474) (28) 4,296,622 119,070,507 4,296,622 3 2 2,724,517 1,150,000 1,650,000 5,524,517 113,545,990 2,045 1,243 867,500 119,938,007 867,500 15 2,724,517 1,150,000 1,650,000 5,524,517 114,413,490 2,060 1,243 395 DEPARTMENT OF PUBLIC SAFETY F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Eliminate 13 positions (12 sworn and 1 civilian) through involuntary separation as a result of a departmental reorganization. 3. Adjust for non-recurring expenditures: --Motor vehicle ($157,500) and equipment purchases ($142,500) in Budget Unit A. --Training costs for newly elected sheriffs in the Public Safety Training Center. 4. Reflect a decrease in Budget Unit A ($66,694) and Budget Unit B ($3,498) self-insurance rates. 5. Reflect a change in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services ($84,498 decrease in Budget Unit A and $3,330 increase in Budget Unit B). 6. Adjust personal services ($264,154) and equipment purchases ($100,000) in Budget Unit A. 115,663,223 678,050 (1,066,917) (300,000) (250,000) (70,192) (81,168) (364,154) ADJUSTED BASE 114,208,842 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Eliminate 14 process servers and allow local law enforcement agencies to serve an estimated 20,000 suspended driver's license pickup orders. This proposal saves $456,000 annually. 2. Outsource data entry on 750,000 traffic citations resulting in the elimination of 5 positions and 13 contract employees. This proposal saves $228,833. 3. Shift trooper vehicle refueling away from 48 underground storage tanks to retaii outlets. 4. Reassign 30 troopers from regular duties to "Operation Hardnose" one day per week. 5. Reduce one instructor position associated with the Community Oriented Policing program in the Police Academy. 6. Reduce contract funds for the Fire Academy's Industrial Fire Program to meet projected demand. 7. Streamline the operations of the Public Safety Training Center by eliminating seven security positions ($233,010) and one conference center position ($64,729). 8. Reduce funds in various object classes in the Firefighter Standards and Training Council ($19,663), the Peace Officer Standards and Training Council ($72,500), the Public Safety Training Center ($186,133), and the Office of Highway Safety ($16,177). (656,000) (431,333) (1,371,167) (1,800,000) (54,359) (54,403) (297,739) (294,473) Total Funds to Redirect (4,959,474) ADDITIONS 1. Contract with local law enforcement to serve an estimated 20,000 pickup orders at a cost of $10 per order. Contracting this function will result in annual savings of $456,000. 2. Provide for gasoline purchases for trooper vehicles from retail outlets. DPS will close 48 underground storage tanks it operates. 3. Provide funds to outsource data entry work for 750,000 traffic citations at a cost of $.27 per citation. Contracting this function results in annual savings of$228,833. 200,000 1,600,000 202,500 396 DEPARTMENT OF PUBLIC SAFETY--F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 4. Assign 30 troopers to conduct a concentrated speedIDUI/seat belt patrol similar to "Operation Hardnose" one day per week in Atlanta, Augusta, Columbus, Macon and Savannah. 5. Replace four P.O.S.T. investigators' vehicles with over 125,000 miles ($80,000), provide additional funds for hearing expenses ($12,705) and for other operating costs ($17,595). 6. Increase personal services to fund three positions for the Public Safety Training Center to manage and administer the Peace Officer Training Contracts. 7. Provide operating expenses ($153,570) and contract funds ($50,000) to deliver a "High Liability" basic training course at the Georgia Public Safety Training Center in coordination with the regional and local academies. Total Additions 1,800,000 110,300 180,252 203,570 4,296,622 TOTAL REDIRECTION LEVEL 113,545,990 ENHANCEMENT FUNDS ENHANCEMENTS 1. Add 15 license examiners and operating costs to implement a new "graduated" license program for drivers under age 18. 867,500 CAPITAL OUTLAY 1. Repair structural damage to the Fire Academy Burn Building ($430,000). 2 Design and construct a training facility at the Georgia Public Safety Training Center for use by the Department of Children and Youth Services($1,540,000). TOTAL ENHANCEMENT FUNDS See G.O. Bonds See G.O. Bonds 867,500 TOTAL STATE FUNDS 114,413,490 397 Budget Unit A 1. Administration 2. Driver Services 3. Field Operations Total Budget Unit A DEPARTMENT OF PUBLIC SAFETY Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 22,654,517 22,506,062 57,856,995 103,017,574 21,154,517 22,506,062 57,706,995 101,367,574 22,101,957 22,382,523 57,691,314 102,175,794 20,601,957 22,382,523 57,541,314 100,525,794 ATTACHED AGENCIES Budget Unit B 1. Georgia Police Academy 1,167,534 1,077,534 1,122,064 2. Georgia Fire Academy 1,189,356 1,079,356 1,143,082 3. Georgia Firefighter Standards and Training Council 470,299 470,299 453,655 4. Georgia Peace Officer Standards and Training Council 1,445,746 1,445,746 1,485,415 5. Public Safety Training Center 10,842,228 9,892,228 10,525,885 6. Governor's Office of Highway Safety 3,055,003 330,486 3,032,112 Total Budget Unit B 18,170,166 14,295,649 17,762,213 TOTAL APPROPRIATIONS 121,187,740 115,663,223 119,938,007 RECOMMENDED APPROPRIATION: The Department of Public Safety is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $114,413,490. 1,032,064 1,033,082 453,655 1,485,415 9,575,885 307,595 13,887,696 114,413,490 398 DEPARTMENT OF PUBLIC SAFETY Roles and Responsibilities The Department of Public Safety (DPS) is responsible for protecting the lives of Georgia's citizens as they travel the state's highways. The department provides a safe environment by enforcing traffic and criminal laws, investigating accidents, and encouraging safe driving practices. The agency regulates drivers to ensure minimum safety standards, knowledge and driving skills are met. The department's troopers work to reduce accidents and injuries by discouraging speeding, encouraging seat belt use, and by stopping drivers under the influence of drugs and alcohol. They also provide law enforcement assistance and emergency response to the public and criminal justice community. A staff of 1,916 employees (including 901 sworn positions), support the operations ofthe Department of Public Safety's - Budget Unit A. DPS also has six agencies in Budget Unit B attached for administrative purposes. The three functional budgets which comprise Budget Unit A are: ADMINISTRATION The administrative and management direction for the Department of Public Safety, including the coordination and support services of the six attached agencies, are provided by this function. DRIVER SERVICES The issuance of driver's licenses, permits and the administration of the commercial driver's license program are carried out by the Driver Services function at 55 license facilities and 29 renewal stations throughout the state. Additional responsibilities include: suspension and reinstatement of driver's licenses and school bus safety program certification and inspection. FIELD OPERATIONS More commonly known as the State Patrol, this function is responsible for accident control, traffic and speed enforcement, drug interdiction, and protection of the public roads and highways. To carry out its duties, the State Patrol operates 48 patrol posts and seven aviation hangers statewide. ATTACHED AGENCIES The following six attached agencies, including 168 authorized positions, comprise Budget Unit B: The Georgia Public Safety Training Center provides instruction and support services for the training of state and local law enforcement officers, firefighters, correctional officers and emergency personnel. The Georgia Police Academy conducts mandated basic training for state law enforcement officers, firefighters, correctional officers and emergency personnel. The Georgia Fire Academy is primarily responsible for providing training to full-time, volunteer and industrial firefighters in Georgia. Emergency medical, rescue and hazardous materials training for fIrefighters and other emergency services personnel are also provided by the Fire Academy. The Firefighter Standards and Training Council is responsible for establishing uniform standards for the employment and training of firefighters. Additionally, the Council establishes curriculum requirements and approves schools and facilities for the purpose of fIre training. The Peace Officer Standards and Training Council is responsible for improving law enforcement in the state by enforcing legislatively established standards for the employment and training of peace officers. The citizens of Georgia can be assured the adequate protection ofpersons and property through the establishment ofminimum standards and professionalism developed and supported by law enforcement training. The Governor's Office of Highway Safety is responsible for the development and administration of statewide highway safety programs. The agency coordinates programs funded through federal highway grants designed to reduce the number of highway deaths and to promote safety. AUTHORITY Title 25, 35 and 40 of the Official Code of Georgia Annotated; Georgia Laws 1980, Act 875 and Act 866. 399 DEPARTMENT OF PUBLIC SAFETY Strategies and Services The Department ofPublic Safety is responsible for protecting the lives of Georgia's citizens by making the state's highways safer. As the largest law enforcement agency in the State of Georgia, the department is involved in regulating drivers, enforcing traffic and criminal laws, and promoting safe driving practices. In F.Y. 1996, the department's troopers made nearly 140,000 interstate arrests, investigated 30,000 accidents, and made over 14,500 Dill arrests. These efforts have contributed to saving lives and decreasing the number of crashes and injuries in Georgia. In F.Y. 1998, the Governor has continued his support for the department's efforts to increase the safety of the state's highways by increasing the enforcement of speed limits and by introducing a graduated license for teenage drivers. HIGHWAY SAFETY . The department's highway safety program consists of the following functions which are performed by the Georgia State Patrol: Speed Limit Enforcement--The department wrote more than 260,000 citations for speeding in F.Y. 1996 as part of it's ongoing effort to reduce highway speed and save lives. Further, the department implemented an intensive speed enforcement program, known as Operation Hardnose, designed to target problem drivers in the Atlanta area. Operation Hardnose consists of 50 troopers in concentrated patrols on metro interstates and has resulted in thousands of tickets and warnings being issued. Because of the success of Operation Hardnose, the Governor has recommended that this program be expanded in F.Y. 1998 to other metro areas in the state, including Augusta, Columbus, Macon and Savannah. DUI Enforcement--The department has initiated several intensive Dill projects in the past several years, including a 5-trooper task force funded by the Governor's Office of Highway Safety. In Georgia in 1995, alcohol or drugs were involved in over 10,000 crashes, resulting in 9,623 injuries and 508 deaths. Targeting Dill drivers is crucial since one out of three fatal crashes in Georgia involved alcohol or drugs in 1995. by 40-50%. The department's troopers and the Office of Highway Safety have enhanced the public's awareness of seat belt safety through aggressive enforcement and through numerous public service announcements targeting seat belt usage. Citations Issued by the State Patrol 380,000 370,000 360,000 350,000 340,000 330,000 320,000 310,000 300,000 -+--------,------,---------,-----( 92 93 94 95 96 Est. Fiscal Years Star GSP--One of the frrst proactive responses to DUI drivers came in 1994 as the department unveiled a proposal to involve the average citizen in the statewide crackdown on drunk and drug impaired drivers. By dialing *GSP , any driver with a cellular phone may immediately contact the nearest State Patrol Post to report an impaired driver. The program has been very successful, accounting for almost 1,100 Dill arrests in F.Y. 1996. Seat Belt and Child Restraint Enforcement--With the passage of Georgia's primary seat belt enforcement law, the State of Georgia has made a commitment to seat belt enforcement. According to studies, proper use of safety belts and child safety seats can reduce the likelihood death and injury DRIVER'S LICENSE ISSUANCE The Governor supports the department's efforts to reduce the number of accidents and fatalities involving teenage drivers. The leading cause of death in the u.S. teenagers is motor vehicle crashes and young drivers experience a disproportionately higher rate of motor vehicle crashes than other aged drivers. According to the Office of Highway Safety, 108 of every 100,000 drivers under 18 were involved in a fatal crash. This is three times as many traffic deaths as drivers who are 24 years or older. Young drivers are involved in more deadly crashes than other age groups due to a number of factors, including a lack of driving experience, a tendency to drive faster, driving more at night, not wearing seat belts, having 400 DEPARTMENT OF PUBLIC SAFETY -- Strategies and Services more passengers in their vehicles, and not being able to handle the effects of alcohol. The Governor supports the introduction of a new, "graduated" driver's license with restrictions for drivers under 18 years. A full, unrestricted license would be issued after a period of safe driving performance. In F.Y. 1998, the Governor recommends $867,500 to add 15 license examiners and operating costs to handle the increased workload resulting from 300,000 teens being issued a graduated license. Another step to improve service is the introduction ofcomputerized digital imaging license issuance in the fall of 1996. Digital imaging makes it possible for the department to issue a renewal driver's license immediately, rather than 45 days. A digital imaging system does not require film or a camera; instead, the image is captured by a computer using a video camera and printed using a color printer. Overthe-counter instant issuance has significantly improved the efficiency and quality of service. Driver's License Issuance Activity Permanent Facilities vs. Renewal Sites 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 o ---'----;.:::::f::.:::i---c::::::f::::::i--...:::+ :.'_ _. L: 93 94 I I Renewal Sites 95 96 97 Driver's License Posts As part of Governor . Miller's directive to improve service at overcrowded driver's license facilities, the department opened six more license renewal sites in 1996. Combined with the 25 previously opened, these 29 service-oriented facilities have renewed over 300,000 driver's licenses in F.Y. 1996. Projected renewal volume of 380,000 in F.Y. 1997 means renewal stations will account for over 22% of all license renewals in the state. By expanding services, the problem of long lines at the busiest facilities has been alleviated. DRUG INTERDICTION The nature ofthe job performed by a trooper has changed significantly over the last decade. Georgia State Patrol Troopers are placing increased emphasis on drug interdiction and eradication, both as a byproduct of normal traffic enforcement, and through involvement in state and federal task forces. An example of one of these task forces is the Governor's Task Force on Drug Eradication, which is supported by the State Patrol and its aviation unit. In F.Y. 1996, GSP troopers and pilots seized over $450,000 in currency, more than 30 kilos of cocaine, and more than 400 pounds of marijuana. TRAINING The State of Georgia has almost 37,000 peace officers in approximately 900 state, county and local law enforcement agencies. To be certified, law enforcement personnel are required to complete a minimum prescribed nine week, 360 hour basic mandate course. Peace officers are also required to complete a minimum of20 hours of inservice training annually to maintain certification. The following agencies attached to DPS for administrative purposes are critical in providing training to state and local law enforcement personnel: Police Academy, Fire Academy, Firefighter Standards and Training Council, Peace Officer Standards and Training Council, and the Public Safety Training Center. In an effort to avoid duplication of effort and to improve the efficiency of the training delivery system in Georgia, the Governor transferred the authority for the funding ofthe regional and local academies from the Peace Officer Standards and Training Council to GPSTC by Executive Order on May 23, 1996. The transfer will improve the coordination and efficiency of the training delivery system by consolidating training delivery initiatives into a single agency. Further, the Peace Officer Standards and Training Council can focus on setting training standards and certifying peace officers in the state. In F.Y. 1998, the Governor recommends $203,570 for the Public Safety Training Center to coordinate with the ten regional and 3 departmental academies to develop a "High Liability' basic training 'course, including Emergency Vehicle Operation and firearms training. 401 DEPARTMENT OF PUBLIC SAFETY Results-Based Budgeting Program Summaries DRIV,ER'S LICENSE ISSUANCE PURPOSE: Process and issue licenses to eligible drivers in Georgia to allow them to legally operate motor vehicles. Suspend licenses of drivers as deemed necessary by the courts and state law. Reinstate the licenses of those drivers when appropriate. GOALS Certify individuals as being capable and deserving of the privilege of driving in Georgia. Remove from the roads all drivers deemed by the courts as being non-deserving of the privilege of driving in Georgia. Regulate the reinstatement of suspended licenses. Investigate and reduce the number of cases involving the fraudulent use of driver's licenses. TRAFFIC LAW ENFORCEMENT PURPOSE: Enforce traffic laws on the state's highways. GOALS Protect and save the lives of Georgia's citizens by enforcing the state's traffic laws. Reduce accidents and fatalities by enforcing Driving Under the Influence (DUI) law and speeding regulations. Provide law enforcement support during emergencies or natural disasters. SAFETY EDUCATION PURPOSE: Provide safety instruction to school bus drivers and perform safety inspections of school buses. Provide Alcohol and Drug Awareness Program (ADAP) instruction to high school students and motorcycle safety instruction to motorcycle riders. GOALS Improve school bus drivers' knowledge of safety laws, regulations and safe operations of school buses to prevent children's injuries as a result of school bus driver error. Reduce the number of accidents involving young drivers by alerting them to the dangers of drugs and alcohol. Promote motorcycle safety by teaching motorcyclists proper riding and safety techniques. ATTACHED AGENCIES LAW ENFORCEMENT TRAINING PURPOSE: Provide facilities, instruction and support services necessary for the training of state and local law enforcement, firefighter, correctional officer, and other emergency services personnel. Manage and administer the funding for regional training academies. (public Safety Training Center) 402 DEPARTMENT OF PUBLIC SAFETY -- Results-Based Budgeting GOALS Develop and deliver basic, advanced/specialized and individual agency training programs for law enforcement personnel. Coordiqate basic and in-service training delivered by regional and departmental academies. SPECIALIZED LAW ENFORCEMENT TRAINING PURPOSE: Provide advanced and specialized law enforcement training courses to improve the skills and performance of Georgia's peace officers. (Georgia Police Academy) GOALS Protect the lives and property of the citizens of Georgia through the development and delivery of training courses to assist law enforcement in their mission. Provide advanced, specialized and high liability training to enhance law enforcement's knowledge, skills and abilities. FIREFIGHTER TRAINING PURPOSE: Develop and provide training to Georgia's state, local and volunteer firefighters, EMS and industrial fire personnel. (Georgia Fire Academy) GOALS Provide for the safety and protection of the lives and property of the citizens of Georgia by providing high quality professional training in fIre fIghting and related emergency medical and rescue services. Assist in the investigation and determination of fIre causes. Develop new methods of fIre prevention and fIre fIghting. FIREFIGHTER AND FIRE DEPARTMENT CERTIFICATIONS PURPOSE: Certify Georgia's Fire Service. (Georgia Firefighter Standards and Training Council) GOALS Certify and re-certify on an annual basis Georgia's full-time paid and volunteer fIrefIghters. Audit and certify fIre departments to ensure compliance with state law. PEACE OFFICER CERTIFICATION AND REGULATION PURPOSE: Establish standards for peace officer certification and training. Certify peace officers in the state of Georgia. Conduct investigations into alleged peace officer misconduct and ensure administrative due process is provided. (Peace Officer Standards and Training Council) GOALS Ensure all peace offIcers meet and maintain certifIcation and training standards. Provide administrative due process in cases of alleged peace offIcer misconduct and ensure compliance with sanctions. 403 DEPARTMENT OF PUBLIC SAFETY -- Results-Based Budgeting HIGHWAY SAFETY GRANTS PURPOSE: Develop a comprehensive state and local highway safety program to reduce the number of fatalities, injuries, and costs resulting from traffic accidents. Solicit applications, award, fund and administer federal grants to local communities and organizations to promote highway safety. (Office of Highway Safety) GOALS Increase awareness and enforcement of traffic laws to reduce alcohol and other drug-related crashes, fatalities and injuries and resulting economic costs. Promote occupant protection through proper use of air bags, safety belts and child safety seats. Promote and improve motorcycle, bicycle and pedestrian safety. Reduce injuries and fatalities from high crash locations and railroad crossings. 404 DEPARTMENT OF PUBLIC SAFETY -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Driver's License Issuance 2. Traffic Law Enforcement 3. Safety Education TOTAL ATTACHED AGENCY PROGRAMS 1. Law Enforcement Training 2. Specialized Law Enforcement Training 3. Firefighter Training 4. Firefighter and Fire Department Certifications 5. Peace Officer Certification and Regulation 6. Highway Safety TOTAL F.Y. 1997 APPROPRIATIONS TOTAL STATE 28,495,423 70,307,228 4,214,923 103,017,574 28,039,021 69,181,139 4,147,414 101,367,574 10,842,228 1,167,534 1,189,356 470,299 1,445,746 3,055,003 18,170,166 9,892,228 1,077,534 1,079,356 470,299 1,445,746 330,486 14,295,649 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 28,262,581 69,732,732 4,180,482 102,175,794 27,806,178 68,606,643 4,112,973 100,525,794 10,525,885 1,122,064 1,143,082 453,655 1,485,415 3,032,112 17,762,213 9,575,885 1,032,064 1,033,082 453,655 1,485,415 307,595 13,887,696 TOTAL APPROPRIATIONS 121,187,740 115,663,223 119,938,007 114,413,490 405 PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM Financial Summary Expenditures, Current Budget and Agency Requests , Budget C1asseslFund Sources Employer Contributions Payment to ERS Total Funds Total State Funds F.Y.1995 Expenditures 9,150,000 490,000 9,640,000 9,640,000 F.Y.1996 F.Y. 1997 Expenditures Current Budget 12,740,000 575,000 13,315,000 13,315,000 13,637,500 575,000 14,212,500 14,212,500 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 13,637,500 575,000 14,212,500 14,212,500 13,637,500 575,000 14,212,500 14,212,500 406 PUBLIC SCHOOL EMPLOYEES' RETIREMENT SYSTEM Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Redirection Level Funds To Redirect Additions Redirection Totals Enhancements Totals Employer Contributions Payment to ERS Total Funds Total State Funds 13,637,500 575,000 14,212,500 14,212,500 13,637,500 575,000 14,212,500 14,212,500 13,637,500 575,000 14,212,500 14,212,500 RECOMMENDED APPROPRIATION: The Public School Employees' Retirement System is the budget unit for which the following State Fund Appropriation for F.Y. 1998 is recommended: $14,212,500. 407 k- B \O"V) fJ' t.-\ 0'8. PUBLIC SERVICE COMMISSION Total Budgeted Positions as of October 1, 1996 -- 140 I Administrative Support 17 Records public hearings as required...provides staff support functions of accounting, procurement, personnel services and budget preparation and administration... develops policies and procedures governing the release of information in conjunction with the Commissioners and administrative personneL .. receives, investigates and processes consumer complaints concerning utility rates and services. Commissioners 10 I Transportation Division Determines whether or not to grant rate increases to public utilities under their jurisdiction...promulgates rules governing the operation of regulated companies in private industries. I Utilities Division 58 Accepts and reviews intrastate certificate applications...enforces all state and federal laws and regulations pertaining to the operation of regulated motor carriers in Georgia... ensures annual registration of all regulated motor carriers operating in or through Georgia... reviews and monitors motor carrier operations and bills for compliance with applicable regulations and procedures.. .inspects private and "for hire" motor carrier vehicles for safety.. .inspects maintenance records for motor carriers... reviews company safety standards ... reviews safety records of drivers ... determines operating authority for intrastate transportation companies...prepares recommendations for the Commission in transportation rate and service hearings...prepares format orders reflecting the Commission's orders in transportation matters...receives and investigates complaints concerning common carrier rates and services... reviews and monitors common carrier operations and bills for compliance with applicable regulations and procedures...reviews and polices carrier tariffs. 55 Provides the Commission with background information, financial analyses, interpretations and recommendations necessary for its regulation of telephone, radio, electric and natural gas utilities... presents alternate positions for Commission's consideration in rate cases... evaluates applications for operating authority to determine if certificates of public convenience and necessity should be issued... investigates complaints against regulated utilities and reports findings and recommendations to the Commission ensures safety of gas pipelines reviews utility tariffs for compliance with orders issued...analyzes rate and schedule filings and operational reports... performs integrated resource planning and certification. 409 PUBLIC SERVICE COMMISSION Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 6,599,747 428,869 218,084 228,590 40,429 304,862 1,581,471 435,966 138,367 9,976,385 F.Y.1996 Expenditures 6,796,053 720,681 213,884 96,467 16,377 317,078 2,179,556 314,639 141,466 10,796,201 F.Y.1997 Current Bildget 7,211,209 607,205 225,530 18,000 40,270 324,420 1,512,663 443,424 153,298 10,536,019 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 7,558,648 706,655 307,812 332,000 115,010 330,108 1,266,590 423,022 166,367 11,206,212 7,558,648 706,655 307,812 332,000 115,010 330,108 1,266,590 423,022 166,367 11,206,212 2,012,590 16,273 2,028,863 7,947,522 141 46 2,799,517 16,295 2,815,812 7,980,389 141 43 2,048,703 2,048,703 8,487,316 140 52 2,652,937 2,652,937 8,553,275 150 59 2,652,937 2,652,937 8,553,275 150 59 410 PUBLIC SERVICE COMMISSION Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 7,273,599 607,205 225,530 18,000 40,270 324,420 1,512,663 443,424 153,298 10,598,409 2,158,397 2,158,397 8,440,012 140 52 Redirection Level Funds To Redirect Additions (138,434) (13,170) (246,073) (23,211) 205,052 16,833 34,542 169,500 43,120 3,376 667 2,587 (420,888) 475,677 (420,888) (2) 236,275 236,275 239,402 6 2 Redirection Totals 7,340,217 610,868 260,072 187,500 83,390 327,796 1,266,590 420,880 155,885 10,653,198 Enhancements 2,394,672 2,394,672 8,258,526 144 54 Totals 7,340,217 610,868 260,072 187,500 83,390 327,796 1,266,590 420,880 155,885 10,653,198 2,394,672 2,394,672 8,258,526 144 54 411 PUBLIC SERVICE COMMISSION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Almualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust personal services. 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 8,487,316 71,270 (116,559) (1,348) (667) ADJUSTED BASE 8,440,012 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reallocate two positions ($116,417), redirect operating expenses ($58,398) and per diem, fees and contracts ($246,073). (420,888) Total Funds to Redirect (420,888) ADDITIONS 1. Reassign two positions -- one to Administration and the other to Utilities. 2. Enhance the Motor Carrier Safety Assistance Program by adding three positions (two enforcement officers and one secretary) and related expenses including two motor vehicles. The recommendation provides state funds of $30,577 to match federal funds of$152,883. 3. Add one training coordinator and operating expenses to the Gas Pipeline Safety Program. The recommendation provides state funds of$19,358 to match federal funds of$19,358. 4. Fund the replacement of seven vehicles and other operating costs. The recommendation provides state funds of $32,794 to match federal funds of$94,6l2. 107,173 30,577 19,358 82,294 Total Additions 239,402 TOTAL REDIRECTION LEVEL 8,258,526 TOTAL STATE FUNDS 8,258,526 412 PUBLIC SERVICE COMMISSION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Administration 1,912,568 1,912,568 1,996,591 1,996,591 2. Transportation 3,556,979 1,716,480 3,741,496 1,586,574 3. Utilities 5,066,472 4,858,268 4,915,111 4,675,361 TOTAL APPROPRIATIONS 10,536,019 8,487,316 10,653,198 8,258,526 RECOMMENDED APPROPRIATION: The Public Service Commission is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $8,258,526. 413 PUBLIC SERVICE COMMISSION Roles and Responsibilities The Public Service Commission is responsible for regulating public utility and transportation industries under its jurisdiction. The commission ensures that consumers receive adequa,te and reliable service at reasonable rates. At the same time, however, the commission must provide regulated companies the opportunity to earn a fair return on their investments. The Public Service Commission is a quasi-legislative, quasi-judicial agency consisting of a five-member board of commissioners elected by statewide general election for a sixyear terms. The agency also has a staff of engineers, auditors, analysts, inspectors, enforcement officers and others who perform a variety oftechnical, enforcement and administrative duties. The commission is organized into three divisions: the Transportation Division, the Utilities Division and the Administrative Division. JURISDICTION The Public Service Commission has jurisdiction over the following services: Transportation--Railroads, commercial transport of persons of property on state highways (not including.school buses, taxicabs, buses, tow trucks, and several others), dock or wharfage companies, terminal station companies, and miscellaneous others. Utilities--Gas and electric light and power companies, natural gas storage, transmission, and distribution facilities, telephone and telegraph companies, and for-hire radio communications and dispatch systems. These industries must abide l:iy the rules and regulations promulgated by the Public Service Commission and must request approval for any changes in the rates, types or quality of services provided. TRANSPORTATION Regarding the transportation industry, the commission strives to provide a viable and safe motor and rail transportation system for the benefit of the public. The commission's Transportation Division enforces state and federal laws and regulations governing the operation oftrucks, buses and other regulated motor carriers. The Division inspects maintenance and driver's records, enforces safety standards, checks insurance requirements and investigates complaints about service or rates. UTILITIES In regulating public utilities, the commission exercises jurisdiction over the rates and types of service most of Georgia's citizens receive. The commission oversees the safety and maintenance of 500 miles of natural gas transmission lines and over 20,000 miles of distribution lines that transport over one-third ofthe state's energy supply to two million gas customers. Regulated public utility companies are required to keep the commission informed of their operations and fmancial status. The commission's Utilities Division audits fmancial reports and analyzes rate filings, fuel recovery cases and other matters filed by regulated gas, electric and telephone co~panies. When regulated companies request permission to change rates or services, the commission may conduct hearings and subpoena witnesses to gather evidence regarding the need for any changes. The commission staff prepares background information, conducts fmancial analyses and forecasting, and provides technical assistance to the commissioners. AUTHORITY Title 46 of Official Code of Georgia Annotated. 414 PUBLIC SERVICE COMMISSION Strategies and Services The Public Service Commission has exclusive power to decide what are fair and reasonable rates for services under its jurisdiction. With few exceptions, the commission determines what rates utilities and other regulated telecommunications and transportation industries can charge, and the service they must provide to the public. Therefore, the commission's actions affect citizens every time they pick up a telephone, turn on a light or purchase merchandise transported by a truck. The responsibilities of the Public Service Commission include: Reviewing requests from regulated industries to change rates. Improving the safety of Georgia's transportation system and natural gas operations. Providing for long range planning to promote efficient use of energy resources. Act as a facilitator to competition and ensure a good quality of service in the new telecommunications competitive environment. Respond to complaints. The scope of jurisdiction and responsibilities are changing for the commission. In 1995, the General Assembly passed legislation to deregulate telecommunications. Currently, the Legislature is considering the deregulation of the natural gas industry with the deregulation of the electric industry inevitable. By deregulating these utilities, the mission of the commission will change from a regulator to a supporter of competition. In fulfilling its responsibilities, the commission holds hearings on various rate cases, conducts vehicle safety inspections and gas safety inspections, and handles approximately 3,000 consumer complaints about regulated services. The commission is authorized to investigate and gather evidence, issue orders, hear appeals, and institute court proceedings to enforce its decisions, rules and regulations. ROADSIDE INSPECTIONS One ofthe objectives ofthe Public Service Commission is to improve the safety of the highways to reduce accidents. The program is named the Motor Carrier Safety Assistance Program (MCSAP). The federal government provides a 80%/20% federal/state match for this program. Each year 15 million commercial motor vehicles travel Georgia's roads. Currently, the commISSIon has 35 enforcement officers that ensure that trucks without certification do not operate within the state and that drivers meet state and federal regulations. The Governor has recommended three additional positions (two enforcement officers and one secretary) in the F.Y. 1998 budget. These positions will be assigned to high traffic areas, Le. Atlanta, Savannah or the 1-75 corridor. Number of Inspections Motor Carriers 40,000 30,000 20,000 10,000 -.IL~X~~:':::::::::::~:::::~~------"'~_~:::::::::::::::::::::::::::::::~"---"'~_~::::::::::.::::::::::::::::::::~,-/ FY 1995 FY 1996 FY 1997 Budget I I Inspections rtL"'j Vehicles Placed Out of Service Vehicles Placed Out of Service F.Y.1996 - Hazardous Material Carriers 928 of 4,619 Inspections Place Out of Service 16.7% 415 PUBLIC SERVICE COMMISSION -- Strategies and Services Enforcement officers perform five different levels of random inspections. Level I is the North American Standard Inspection which includes both the driver and the vehicle. All mechanical parts of the truck are manually tested, and all paperwork and driver condition are surveyed. The other levels are: Level II: Walk-Around Driver/ Vehicle Inspection. (Not as detailed as a Level I.) Level III:Driver-only Inspection. Level IV: Special Inspection. Level V: Vehicle-only Inspection. The officers perform about 30,000 truck inspections each year. Each officer if POST certified and specially trained to inspect motor vehicles. In addition, the enforcement officers are the only law enforcement officers specially trained to inspect trucks hauling hazardous materials or waste in Georgia. The officers inspect about 5,000 vehicles transporting hazardous materials each year. Officers also assist at the scene of hazardous materials incidents and conduct follow-up investigations. RATE CASES The Public Service Commission and its staff review and analyze requests by regulated industries to establish new rates, offer new services, modify existing services or implement new technology. At the rate hearings, both the utility and the commission's staff present testimony concerning financial and technical information. Expert testimony and public witnesses are also heard during the hearing. After all the testimony is presented, the commissioners decide what, if any, rate /service changes are granted. GAS PIPELINE SAFETY The Public Service Commission ensures that natural gas is delivered to consumers through the safest possible system by inspecting gas suppliers, pipelines, storage facilities, systems and operators. This program is the Gas Pipeline Safety Program which is funded 50% federal /50% state. The safety checks ensure pipes are not rusting, proper pressure regulation and safeguards are in place, proper odorant is in use to warn ofleaks, and employee drug testing is conducted. The commission is responsible for inspecting 84 municipal gas systems, 126 master meter operators, two transportation pipelines, two publicly TELECOMMUNICATIONS AND COMPETITION DEVELOPMENT ACT OF 1995 The Telecommunications and Competition Development Act of 1995 became effective July 1, 1995. The goal of the new law is to open up competition for local telephone markets with the result of lower rates for consumers. The commission has gone Federal Funds for the Gas PipeUne Safety Program 240 - - - - , - - - - - - - - - - - - - - - - - : 230 -+------------------c~- g220 - + - - - - - - - - - - - - - - - . r - - - - - ~ 210 -+----------~'-------- 200 J,...~~::::::~---_,----___,I IT 1m ITI~ IT 1m IT 1m held gas systems, five liquified natural gas plants, and two direct sales interstate pipeline suppliers. In addition to inspections, the inspectors conduct annual gas safety training seminars for gas system operators. INTEGRATED RESOURCE PLANS Since 1991, Georgia's two investor -owned electric power companies have been required to file an integrated resource plan (IRP) with the commission at least every three years. The purpose of the IRP is to promote a long-term approach to providing energy and encouraging energy conservation. The IRP includes the utility's energy and demand forecasts over a 20year period. The commission evaluates the IRP for its feasibility, reliability, and cost. In addition, the commission must certify new construction of electric plants and monitor the construction process to ensure costs are kept within budget. from a regulator of monopoly local exchange service providers to a facilitator of competition while protecting the public against unfair competition and abuse or market position. The bill addresses five major areas: Local Exchange Competition: Companies can solicit the commission for certificate of authority to provide local and long distance service. Interconnection Rates: Public Service Commission will no longer set rates; the market will set rates and conditions of service. When agreements cannot be reached between the service providers, the commission will act as a mediator. Basic Service Charges: Basic service rates are the rates in effect when the law went into place. Within the first five years, the law does allow for rate increases based on a formula. Universal Access Fund: The commission will collect quarterly a 416 PUBLIC SERVICE COMMISSION -- Strategies and Services percentage of gross revenues from all telephone companies to help provide telephone service in rural areas. The fund offsets costs so that reasonable prices can be offered. Extended Area Service Hearings: Extended Area Service allows toll-free calling between areas where the central telephone offices are within 25 miles or less apart. The new telecommunication regulation changes the responsibilities of the commission. The law will provide the metropolitan markets with a wide range of competitive telecommunication services while ensuring universal access to basic local exchange services in less densely populated areas of the state. In addition to local markets opening, the market has changed for long distance service. More companies are providing long distance service making competition severe. A practice which has manifested from this severe competition is "slamming". A customer has been "slammed" when a provider switches the consumer's long distance provider without his knowledge. Usually the consumer fmds out that he has been "slammed" when he receives his phone bill. A consumer may unwittingly authorize a service change by signing a non-telephone related document. The small print of the document indicates approval to switch carrier. The Public Service Commission received 55 "slamming" complaints in 1994 and 287 in 1995. On a national level, the Federal Communication Commission (FCC) received 8,761 in 1995. In 1996, the commission has received 600 complaints. "Slamming" is illegal under the FCC, and the commission is in the process of writing rules that would prohibit local service slamming. 417 PUBLIC SERVICE COMMISSION Results-Based Budgeting Program Summaries UTILI:rIES - NATURAL GAS, ELECTRIC AND TELECOMMUNICATIONS PURPOSE: Ensure that natural gas, electric and telecommunications utilities under the statutory authority ofthe Commission provide reliable service to Georgians at a price which balances affordability with their level of risk (rate based regulated). GOALS Evaluate natural gas utilities purchased gas adjustment (PGA), rate case, gas supply plans and other filings. Evaluate electric utilities long range plans for meeting energy needs in Georgia. Assess electric utilities loan and energy forecasts, fuel price forecasts and resource screening analyses. Recommend least cost resource options. Implement the introduction of competition into telecommunications services. MOTOR CARRIER REGISTRATION PURPOSE: Foster a safe and viable transportation system for the citizens of Georgia. GOALS Ensure that "for hire" motor carriers maintain the required amounts of liability and cargo insurance coverage for the protection of the public as prescribed by a.c.G.A. 46-7-12 and the Commission's Transportation Rules. Mediate complaints between the shipping public and motor carriers. MOTOR CARRIER VEHICLE SAFETY PURPOSE: Maintain a safe and viable transportation system on Georgia highways for the protection of the public. GOALS Reduce the number of commercial vehicle acCidents, injuries and fatalities. Educate the commercial drivers and public on (a) highway safety and motoring (sharing the road) and (b) transportation of hazardous materials. PIPELINE SAFETY PURPOSE: Protect the people and the environment of the State of Georgia through a comprehensive pipeline safety program that includes effective risk management through pipeline compliance. GOALS Perform a risk assessment of all natural gas operations in Georgia as it pertains to public safety. Perform a more comprehensive inspection of operators with high risk factors. 418 PUBLIC SERVICE COMMISSION -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Utilities-Natural Gas, Electric and Telecommunications 2. Motor Carrier Registration 3. Motor Carrier Vehicle Safety 4. Pipeline Safety TOTAL APPROPRIATIONS F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 5,839,508 1,212,205 2,631,659 852,647 10,536,019 5,839,508 1,212,205 791,160 644,443 8,487,316 5,873,157 1,127,707 2,913,277 739,057 10,653,198 5,873,157 1,127,707 758,355 499,307 8,258,526 419 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Total Budgeted Positions as of October 1,1996 -- 37,774* Board of Regents Joint Board of Family Practice State Medical Education Board Public Telecommunications Commission Attached for Administrative Purposes Only Chancellor 5 I Senior Vice Chancellor Academic Affairs 19 Oversees the University System's academic programming, long-range planning and analysis of student and faculty data, academic programming, computer network and requests for services and equipment, and all student services and activities in the University System. I Senior Vice Chancellor Capital Resources 40 Oversees construction planning and operations at each of the institutions in the University System and the financial operations of the Board of Regents, including budget development, internal audit and central business operations. I Senior Vice Chancellor Human and External Resources 23 Oversees human resources, legal affairs, and relations with external agencies including legislative matters. I Advisory Council Provides advisory services to the Chancellor in policy matters. I 34 Institutions 37,687 Research Universities 4 Regional Universities 2 State University and Colleges 13 Two-Year Colleges 15 *Includes positions funded by sponsored operations. 420 REGENTS, UNIVERSITY SYSTEM OF GEORGIA RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 $1,399,958,791 INCREASE OVER F.Y. 1997 BUDGET $11,796,609 REDIRECTION LEVEL $1,315,716,197 ENHANCEMENT FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $84,242,594 HIGHLIGHTS $69,138,510 to provide a six percent pay increase for all employees of the Board of Regents in keeping with the Governor's commitment to raise faculty salaries. ($63,410,388 for Unit "A" employees and $5,728,122 for Unit" B" employees). In F.Y. 1997, Georgia is projected to rank third among Southern Regional Education Board (SREB) states in faculty salaries, up from seventh in F.Y. 1992. The F.Y. 1998 increase will be effective July 1, 1997 for all nonacademic personnel, and September 1, 1997 for all academic personnel. $23,509,822 to provide for formula related increases, including a 1.7 percent enrollment increase ($19,845,698), and other increases in operations ($3,664,124). $8,000,000 to further preserve and upgrade the technology infrastructure: $2 million devoted to implement additional faculty and staff training in the use of technology (including teacher education training), $3 million for technology support and $3 million in lottery funds to upgrade hardware and software throughout the System. $10,300,000 to provide additional support for major repairs and rehabilitation (MRR) throughout the University System. This recommendation recognizes the need to maintain the University System's assets in a more aggressive manner by recommending a change in the funding formula from .75 percent to .99 percent ofthe F.Y. 1996 replacement value of $4,349,925,926. $500,000 to provide matching funds for the support of an endowed chair at the Rosalyn Carter Institute for Caregiving at Georgia Southwestern State University. $1.5 million to expand the Intellectual Capital Partnership Program (ICAPP). ICAPP initiatives support Georgia's economic development by leveraging University System of Georgia assets: $250,000 is recommended to develop two databases that will increase access to those assets; $250,000 to increase instructional offerings in computer-related fields; and $1,000,000 for an innovative regional economic development program. $4,676,045 in support of food processing initiatives: $4,254,000 for traditional industries research projects, including $1.9 million in bonds to renovate UGA's Food Science and Technology building; $282,045 for two positions at the Agricultural Experiment Station's Center for Food Safety and Quality Enhancement; and $140,000 to assist in the development of an Advanced Food Technology Center at the Genesis FoodPark in Thomasville. The center will offer technological and training services in food processing and seek to solidify strategic partnerships within the industry. These funds reflect a partnership between Georgia Tech's Economic Development Institute (ED!) and Advanced Technology Development Center (ATDC). F.Y. 1998 Unit "B" recommendation transfers ED! funds to the ATDC budget in order to better reflect the economic development, outreach, and service programs of Georgia Tech. $413,000 to renovate an existing facility at Georgia Tech's Center for Rehabilitation Technology for an Advanced Wood Products Laboratory. The facility will be used to train a potential work force, including people with disabilities, in the use of wood products manufacturing equipment. $2 million in state general funds for the Georgia Research Alliance: $1.5 million to establish two eminent scholar chairs: one in digital commerce at Georgia State University and one in microbial physiology at UGA; and $500,000 for Technology Development Investments projects. An additional $28,000,000 for equipment and facilities for GRA appears in the F.Y. 1997 amended lottery recommendations. $75,185,250 in bonds for eight new construction or repair projects for the University System. The Governor also recommends $13,825,000 for five projects on the minor capital outlay Category A list and $22,785,000 for seven projects on the minor capital outlay Category B list. The Miller Administration has funded over $833 million in new construction for the University System. $1,950,000 for Partners in Success, a program designed to improve Georgia's secondary students' readiness for higher education and help students develop skills needed for success in the workplace. $4,500,000 in bonds to renovate the Old Capitol Building on the Georgia Military College campus in Milledgeville. This funding will complete the renovation of the building and preserve both its historical value and utility as a public school facility. Phase I of the renovation was funded with $3,500,000 in lottery funds in F.Y. 1996. $9,903,735 in lottery and general funds to connect all K-12 schools, DTAE institutions and public libraries to the Internet through PeachNet access. This connection will also provide these education entities access to GALILEO, the University System's on-line library system. Included in Regents"budget is $6,454,422 in lottery funds to provide the hardware and software for the connection, and $389,000 for an Interlata ATM/Sonet pilot and GALILEO training funds. All other operating funds are recommended in the DOE and DTAE budgets. 421 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources F.Y.1995 Expenditures Personal Services: Educ., Gen., and Dept. Svcs 1,330,525,960 Sponsored Operations 242,324,657 Regular Operating Expenses: Educ., Gen., and Dept. Svcs 431,066,418 Sponsored Operations 283,431,629 Special Funding Initiative 10,330,247 Office of Minority Business 319,526 Enterprises Student Education Enrichment 349,130 Program Forestry Research 338,382 Research Consortium 1,821,620 Capital Outlay 116,420,084 Agricultural Research 2,041,867 Advanced Technology 1,886,720 Development CenterlEDI Capitation Contracts for Family 2,937,583 Practice Residency Residency Capitation Grants 2,484,870 Student Preceptorships 146,400 Family Practice Obstetrical Fellowships Mercer Medical School Grant 6,244,350 Morehouse School of 5,241,300 Medicine Grant Center for Rehabilitation 2,219,185 Technology SREB Payments 5,948,000 Medical Scholarships 1,252,446 Regents' Opportunity Grants 600,000 Regents' Scholarships 200,000 Rental Payments to Georgia 821,295 Military College CRT Inc. Contract at Georgia 237,347 Tech Research Institute Area Health Education Centers Direct Payments to the Georgia 9,397,315 Public Telecommunications Commission for Operations Lottery Funds 119,741,000 (See Unit D for object class details) F.Y.1996 F.Y.1997 Expenditures Current Budget 1,423,414,262 272,791,763 1,519,543,837 273,874,000 436,526,232 183,971,679 15,314,094 994,628 431,199,836 184,184,000 20,352,506 1,276,046 364,360 359,714 362,508 5,000,000 35,000 2,342,532 1,979,060 388,344 6,645,000 2,397,136 2,062,129 3,548,759 3,864,204 2,484,870 146,400 2,119,378 146,400 6,619,012 5,549,778 2,072,196 5,397,800 1,347,852 600,000 200,000 1,034,952 219,372 14,227,443 7,000,000 5,868,890 2,505,183 4,426,900 1,357,718 600,000 200,000 1,122,866 208,403 425,000 14,829,577 73,370,611 50,254,000 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 1,515,964,933 268,529,345 434,331,829 183,002,411 18,922,136 1,276,046 359,714 388,344 6,645,000 2,397,136 13,794,056 3,962,781 1,172,531 175,500 28,837,413 1,544,802,346 268,529,345 23,418,758 23,400,000 32,672 457,750,587 183,002,411 42,322,136 1,308,718 10,945 370,659 17,475 206,827,047 40,844 302,580 405,819 6,645,000 206,827,047 2,437,980 14,096,636 258,219 4,221,000 1,172,531 175,500 7,210,000 6,044,957 2,613,577 4,230,650 1,357,718 600,000 200,000 1,122,866 208,403 814,000 41,000 771,742 7,210,000 6,044,957 3,427,577 4,230,650 1,398,718 600,000 200,000 1,894,608 208,403 14,139,178 14,139,178 53,237,900 53,237,900 Total Funds 2,578,327,331 2,459,915,163 2,537,211,067 2,488,649, III 338,010,595 2,826,659,706 422 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Financial Summary F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Personal Services: Educ., Gen., and Dept. Svcs 1,516,906,749 Sponsored Operations 268,529,345 Regular Operating Expenses: Educ., Gen., and Dept. Svcs 426,667,326 Sponsored Operations 183,002,411 Special Funding Initiative 18,682,578 Office of Minority Business 976,046 Enterprises Student Education Enrichment 359,714 Program Forestry Research 388,344 Research Consortium 100,000 Capital Outlay Agricultural Research 2,397,136 Advanced Technology 13,794,056 Development Center/EDI Capitation Contracts for Family 3,864,204 Practice Residency Residency Capitation Grants 2,119,378 Student Preceptorships 146,400 Family Practice Obstetrical Fellowships Mercer Medical School Grant 7,000,000 Morehouse School of 5,868,890 Medicine Grant Center for Rehabilitation 2,582,088 Technology SREB Payments 4,426,900 Medical Scholarships 1,357,718 Regents' Opportunity Grants 600,000 Regents' Scholarships 200,000 Rental Payments to Georgia 1,038,930 Military College CRT Inc. Contract at Georgia 208,403 Tech Research Institute Area Health Education Centers Direct Payments to the Georgia 14,147,499 Public Telecommunications Commission for Operations Lottery Funds (See Unit D for object class details) Redirection Level Funds To Redirect Additions Redirection Totals (51,488,539) (13,327,920) (2,170,636) (15,000) (19,038) (19,417) (119,857) (336,200) (946,847) 48,561,969 1,513,980,179 268,529,345 14,406,621 427,746,027 183,002,411 16,511,942 961,046 340,676 368,927 100,000 80,382 316,200 2,357,661 13,774,056 3,864,204 1,172,531 146,400 (51,804) (224,950) (70,000) (56,143) 51,804 28,700 70,000 56,143 7,000,000 5,868,890 2,582,088 4,230,650 1,357,718 600,000 200,000 1,038,930 208,403 (1,214,586) 1,739,715 14,672,628 Enhancements Totals 29,452,479 1,543,432,658 268,529,345 28,360,517 10,239,000 456,106,544 183,002,411 26,750,942 961,046 340,676 5,985,000 359,000 140,000 368,927 6,085,000 359,000 2,357,661 13,914,056 3,864,204 1,172,531 146,400 413,100 7,000,000 5,868,890 2,995,188 4,230,650 1,357,718 600,000 200,000 1,038,930 208,403 14,672,628 34,174,422 34;174,422 Total Funds 2,475,364,115 (70,060,937) 65,311,534 2,470,614,712 109,123,518 2,579,738,230 423 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Expenditures, Current Budget and Agency Requests Budget Cla,sseslFund Sources Less Sponsored & Other Funds: Departmental Sponsored Other - General Funds Capital Outlay Indirect DOAS Funding F.Y.1995 Expenditures 50,533,193 528,678,676 644,035,981 82,564,948 3,583,000 Total Sponsored & Other Funds 1,309,395,798 F.Y.1996 Expenditures 42,000,000 458,035,442 631,446,837 3,583,000 1,135,065,279 F.Y.1997 Current Budget F.Y. 1998 A~ency Requests Redirection Level Enhancements Totals 42,000,000 459,767,000 643,698,885 42,000,000 460,703,582 648,510,459 3,583,000 1,149,048,885 3,583,000 1,154,797,041 22,922,484 206,827,047 229,749,531 42,000,000 460,703,582 671,432,943 206,827,047 3,583,000 1,384,546,572 State General Funds Lottery Funds Total State Funds 1,149,190,533 119,741,000 1,268,931,533 1,251,479,273 73,370,611 1,324,849,884 1,337,908,182 50,254,000 1,388,162,182 1,333,852,070 1,333,852,070 55,023,164 53,237,900 108,261,064 1,388,875,234 53,237,900 1,442,113,134 Positions 30,966 31,940 33,376 33,320 20 33,340 424 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Less Sponsored & Other Funds: Departmental Sponsored Other - General Funds Capital Outlay Indirect DOAS Funding 42,000,000 460,703,582 648,412,204 3,583,000 Total Sponsored & Other Funds 1,154,698,786 State General Funds Lottery Funds Total State Funds 1,320,665,329 1,320,665,329 Positions 32,122 Redirection Level Funds To Redirect Additions Redirection Totals Enhancements Totals (70,060,937) (70,060,937) (154) 199,729 42,000,000 460,703,582 648,611,933 199,729 3,583,000 1,154,898,515 65,111,805 1,315,716,197 65,111,805 1,315,716,197 37 32,005 24,880,924 42,000,000 460,703,582 673,492,857 24,880,924 3,583,000 1,179,779,439 50,068,172 34,174,422 84,242,594 1,365,784,369 34,174,422 1,399,958,791 3 32,008 425 REGENTS, UNIVERSITY SYSTEM OF GEORGIA F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS I. Adjust Other Funds for existing payback projects. 2. Delete funding for the Research Consortium including: $1,500,000 for two eminent scholars; $500,000 for technology development; $560,000 for alternative crops; and $3,985,000 for traditional industries. (Continuation funding includes $100,000 for SERA.) 3. Adjust Special Funding Initiatives by reducing the Intellectual Capital Partnership Program (ICAPP) by $1,786,000 for one-time expenses and adding salary adjustments of$116,072 for other special initiatives. (Continuation funding for ICAPP includes $400,000 for phase two of the needs assessment and $2,314,000 for the COMPASS program at Columbus State University.) 4. Adjust funding for Office of Minority Business Enterprises: eliminate $250,000 added to supplant federal funds for the International Trade and Technology Center at Savannah State University and $50,000 to review minority business development programs. 5. Adjust funding formula for additional Major Repair Rehabilitation support added in F.Y. 1997 budget. 6. Annualize funding for the State Data and Research Center at the Georgia Institute of Technology. 7. Delete non-recurring funding for the Area Health Education Centers. 8. Delete non-recurring funding for Medical College of Georgia Hospital and Clinics for renovations to correct deficiencies in acute care facilities. 9. Transfer the Athens and Tifton Veterinary Laboratory's F.Y. 1997 salary increase to the Department of Agriculture. 10. Adjust funding for Georgia Tech Continuing Education non-recurring vehicle expense. II. Adjust Georgia Military College salary addition. 12. Annualize the state's portiOh of the F.Y.1997 salary adjustment for GPTC. 13. Eliminate funding for an elementary foreign language pilot series ($500,000) and Southern Center for International Studies programming ($247,148) at GPTC. 14. Reflect a change in agency self-insurance rates: University System (-$105,554), Joint Board of Family Practice (-$91) and GPTC ($493). 15. Reflect an increase in the merit system position assessment for GPTC due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 16. Transfer $4,664,004 for the Economic Development Institute from the Georgia Tech Research Institute to the Advanced Technology Development Center. 1,337,908,182 (170,612) (6,545,000) (1,669,928) (300,000) (6,300,000) 247,846 (425,000) (1,063,795) (128,504) (16,201) (83,936) 46,873 (747,148) (105,152) 17,704 Yes ADJUSTED BASE 1,320,665,329 REDIRECTION FUNDS FUNDS TO REDIRECT I, Redirect funds at the system level from pure enrollment driven allocations and at the institution level from low priority academic programs, and administrative and other support areas. 2. Reduce funding for the production of the Minority Suppliers Directory. 3. Reduce personal services and operating expenses for the Student Education Enrichment Program. 426 (58,000,000) (15,000) (19,038) REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDAnONS 4. Reduce technical support in silviculture in Forestry Research. 5. Redirect Special Initiative funds from Valdosta State University ($883,062) and Georgia Southern University ($886,562) added to enhance graduate programs and library holdings, and other initiatives ($401,012). 6. Eliminate one position from the Warner Robins office and reduce the activities of the technology champion function of the Advanced Technology Development Center. 7. Redirect biosensor research funds from the Agricultural Technology Research Program. 8. Redirect Georgia Tech Research Institute currently invested funds. 9. Reduce personal services in the Dalton and Savannah Economic Development Institute offices by 2.35 positions and obtain alternative funding for "Signs of Growth" publication. 10. Reduce personal services by 29 positions at Medical College of Georgia. 11. Redirect funds from low priority and discontinued research projects in the Agricultural Experiment Stations. 12. Redirect funds for personal services in administration, clerical, and support staff in the Cooperative Extension Service including: 20 county family and consumer science agents and one administrative position ($1,079,525); four administrative /staffpositions ($290,355); administrative staff support positions ($200,040); FCS state staff ($ 149,760); 4-H state specialists ($50,000); state clerical and support staff ($200,000); county clerical staff ($200,000); and program assistants ($77,662). 13. Redirect funds from supplies and materials in the Veterinary Medicine Teaching Hospital. 14. Reduce personal services by eliminating 1.5 positions at Skidaway Institute of Oceanography. 15. Redirect Residency Capitation Grant funds appropriated to the Joint Board of Family Practice for sub-specialists. 16. Eliminate one administrative position and other personal service funds from the Joint Board of Family Practice. 17. Reduce SREB payments by reducing the number of entering freshman slots at each institution. 18. Reduce operating and equipment costs at the Joint Board of Family Practice. 19. Reduce personal services and supplies at the Center for Rehabilitation Technology. 20. Redirect marketing funds from CRT, Inc. 21. Eliminate the annual Georgia Tech Continuing Education course catalog. 22. Eliminate one position and reduce personal services at the Marine Extension Service. 23. Reduce personal services and operating costs at the Marine Institute. 24. Redirect funds from ratite research and animal care at Veterinary Medicine Agricultural Research and eliminate one half-time caretaker position. 25. Redirect funds from poultry and non-poultry research at Veterinary Medicine Experiment Station. 26. Eliminate one Research Coordinator and student virology support from the Veterinary Medicine Experiment Station. 27. Redirect funds from supplies and materials, operating expenses, and equipment at Georgia Military College. 28. Reduce State Medical Education Board funds appropriated to match federal funds under the State Loan Repayment Program for physicians. 29. Redirect personal services funds, per diem fees and contracts in Regents' Central Office. 30. Redirect GPTC state funds for five positions responsible for operation of satellite interconnection/transmission. (GPTC intends to use other funds, generated by licensing fees, to cover the cost ofthese engineers.) 31. Redirect GPTC state funds for 11 field engineers at transmission plants. 32. Redirect a portion of GPTC's state program and acquisitions funds for K-12 educational programming. Total Funds to Redirect (19,417) (2,170,636) (103,000) (74,475) (315,403) (233,200) (1,574,000) (1,910,116) (2,247,342) (26,388) (81,002) (946,847) (44,843) (224,950) (46,747) (37,216) (14,588) (31,781) (67,972) (48,850) (45,382) (58,827) (40,188) (56,143) (70,000) (323,000) (~99,729) (507,617) (507,240) (70,060,937) 427 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADDITIONS I. Redirect at the system level to patterns of national excellence, collaboration, strategic -admissions, retention and graduation initiatives, strategic policy directives, and initiatives having an impact on the Governor's Economic Development Council's stated goals in telecommunications and computer programming. Also, redirect at the institution level to high priority academic programs consistent with mission, and to direct instruction and services to students. 2. Increase funding for the NIEDEX program and add funds for a small business investor network at the Advanced Technology Development Center. 3. Add funds for personal services at the Agricultural Technology Research Program to establish an electronic interface with food processors. 4. Add funds to establish a law enforcement technology program and a flood modeling program with advanced visualization techniques at Georgia Tech Research Institute. 5. Increase funds for LOCI and lean manufacturing programs at the Economic Development Institute. 6. Agricultural Experiment Stations - expand the Center for Food Safety and Quality Enhancement with personal service funds for a food parasitologist and a flavor chemist. 7. Agricultural Experiment Stations - develop or expand research projects: animal transgenics ($157,598); vegetables ($154,505); beef cattle feed research ($107,021); precision agriculture ($107,037); and a collaborative Center for Agriculture and Economic Development with the Cooperative Extension Service ($122,726). 8. Cooperative Extension Service - fund one-time renovation of 4-H camp facilities. 9. Cooperative Extension Service - create a Center for Horticulture, Ornamentals, and Turf in Griffm. 10. Cooperative Extension Service - provide funds to create a collaborative Center for Agriculture and Economic Development with Agricultural Experiment Stations. II. Add personal services and operating funds for a Technology Center for the Cooperative Extension Service. 12. Add funds for the digital medical records system at the Veterinary Medicine Teaching Hospital. 13. Increase funds for distance learning at the Skidaway Institute of Oceanography. 14. Add funds to the Joint Board of Family Practice to support pediatric residency capitation for third year residents of the Macon program and second and third year residents of the Savannah program. 15. Fund SREB incremental increase in student contract fees and one slot at the West Virginia School of Osteopathic Medicine through the Joint Board of Family Practice. 16. Add funds for personal services for an Advanced Wood Products Laboratory at the Center for Rehabilitation Technology. 17. Add funds to the Marine Extension Service for a Resource Coordinator and a GSAMS program coordinator. 18. Provide funds to the Marine Institute for travel, equipment, internet access, and GSAMS development. 19. Upgrade and modernize animal care facilities at Veterinary Medicine Agricultural Research. 20. Fund Farm Supervisor position, increase faculty support, and provide network and program services at the Veterinary Medicine Experiment Station. 21. Add funds for supplies and materials and operating expenses to Georgia Military College. 22. Add funds to the State Medical Education Board to match community funds in repaying the medical education debt of two physicians who practice in rural counties. 23. Provide funds to Regents Central Office to aid in P-16 efforts and strategic planning. 24. Add funds to Medical College of Georgia for reimbursement of graduate medical education. 58,000,000 83,000 35,000 315,403 233,200 282,045 648,887 250,000 350,000 122,725 400,000 25,000 81,002 210,000 28,700 51,804 67,972 40,000 45,382 78,827 56,143 70,000 323,000 1,574,000 428 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 25. Add funds to GPTC to provide equipment for remote monitoring of transmitter operation using VSAT technology. 26. Provide funds to GPTC for five engineers to support educational programming at PeachStar production studios and at the Fernbank Science Center. 27. Add funds to GPTC to provide support training and staff development for K-12 distance learning materials purchased or produced by GPTC. 28. Provide funds to GPTC to completely fund the satellite maintenance program for educational facilities. 29. Provide additional funds to GPTC for operating expenses at the commission's new 14th Street production facility. 224,442 230,735 456,969 633,150 194,419 Total Additions 65,111,805 TOTAL REDIRECTION LEVEL ENHANCEMENT FUNDS 1,315,716,197 ENHANCEMENTS 1. Resident Instruction - Provide for formula related increases including a 1.7% enrollment increase and increases in other operating costs. 2. Resident Instruction - Provide additional support for the Major Repairs/Renovation Fund by changing the funding formula from .75 percent to .99 percent ofF.Y. 1996 replacement value of $4,349,925,926. 3. Special Funding Initiative - Provide additional support to preserve and upgrade the technology infrastructure, $2 million for training of faculty and staff, including funding for teacher education programs, and $3 million for technology support. (Total recommendation $8 million: $5 million State General Funds, $3 million Lottery Funds.) 4. Special Funding Initiative - Provide funds for Partners in Success initiative: $680,000 for mentoring program; $800,000 for gifted and talented high school programs at State University of West Georgia and Middle Georgia College; $220,000 for a prognostic math test; and $100,000 to publicize new admissions standards. 5. Special Funding Initiative - Provide additional funds for Georgia's Intellectual Capital Partnership Program (ICAPP), the University System's program designed to link university system assets and economic development needs: $250,000 to develop a centralized database for ICAPP; $250,000 to assist in the development of additional computer related instructional offerings; and $1,000,000 to respond to regional needs identified by the needs assessment conducted in F.Y. 1997. 6. Special Funding Initiative - Provide additional funds for facility master plans for ten institutions and the Skidaway Institute of Oceanography. (Continuation funding of $450,000 in base.) 7. Special Funding Initiative - Provide matching funds for the support of an endowed chair at the Rosalyn Carter Institute for Caregiving at Georgia Southwestern State University. 8. Special Funding Initiative - Provide $150,000 to coordinate the development ofa P-16 database. 9. Special Funding Initiative - Provide funds to support the Internet connectivity project. 10. Research Consortium - Provide $1,500,000 for two eminent scholars and $500,000 for the Technology Development Investment Program, efforts coordinated by GRA. 11. Research Consortium - Provide continuation funds for research projects in the Governor's Traditional Industries program. 12. Other Funds - Adjust Other Funds for recommended payback project at the University of Georgia. 23,509,822 10,300,000 5,000,000 1,800,000 1,500,000 900,000 500,000 150,000 3~9,000 2,000,000 3,985,000 (925,000) 429 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 13. Advanced Technology Development Center - provide fund~ to ATDC ($70,000) and ED! ($70,000) to assisf in the development of an Advanced Food Technology Center at the Genesis , FoodPark in Thomasville. 14. Center for Rehabilitation Technology - provide funds to renovate existing facility for an Advanced Wood Products Laboratory. 15. Marine Extension Service - provide funds for one maintenance person. 16. Capital Outlay - provide planning and design funds for the restoration of the Old Governor's Mansion on the campus of Georgia College. 140,000 413,100 47,250 359,000 CAPITAL OUTLAY 1. Recommend $8,757,000 for the construction ofa student services building and health education classrooms at Macon College. 2. Recommend $27,258,000 for the construction of phase II ofthe Manufacturing Related Disciplines Complex at Georgia Tech. 3. Recommend $6,058,500 for the construction of a student services/physical education building at Waycross College. 4. Recommend $4,305,000 for the construction of a music education building at Clayton College and State University. 5. Recommend $7,686,000 the renovation of Walker Hall Classroom Building at Middle Georgia College and an addition to the Dublin Center. 6. Recommend $13,303,750 for the construction of a physical education facility at Columbus State University. 7. Recommend $5,817,000 for the construction of a student center at Atlanta Metropolitan College. 8. Recommend $2,000,000 in additional funds for flood recovery at Albany State University. 9. Recommend $4,975,000 for construction of phase II ofa central utility plant at Augusta State University. 10. Recommend $1,100,000 to complete the renovation of Building "C" at DeKalb College. 11. Recommend $4,800,000 for renovation ofHerty Hall at Georgia College and State University. 12. Recommend $1,750,000 for renovation of Payne Hall at Savannah State University. 13. Recommend $1,200,000 for construction and improvements to Rock Eagle sewage and water system. 14. Recommend $654,000 for construction of an addition to the maintenance building at Clayton College and State University. 15. Recommend $4,965,000 for renovation and an addition for science and math at Darton College. 16. Recommend $3,380,000 for renovation of the old science building for the School ofNursing at Kennesaw State University. 17. Recommend $4,586,000 for renovation of the Dugas Building for a pediatrics laboratory at the Medical College of Georgia. 18. Recommend $1,700,000 for the purchase ofan oceanographic vessel for the Skidaway Institute of Oceanography. 19. Recommend $4,200,000 to retrofit the library ventilation system at the University of Georgia. 20. Recommend $3,300,000 for construction ofa special education and speech/language pathology building at Valdosta State University. See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds See G.O. Bonds 430 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDAnONS 21. Recommend $10,000,000 for the construction of a parking deck as a payback project for north campus at the University of Georgia. 22. Recommend $4,375,000 for equipment and building renovations for the Governor's Traditional Industries Initiative. 23. Recommend $4,500,000 for the completion ofthe renovation ofthe Old Capitol Building on the campus of Georgia Military College. See G.O. Bonds See G.O. Bonds See G.O. Bonds TOTAL ENHANCEMENT FUNDS TOTAL STATE GENERAL FUNDS LOTTERY FUNDS LOTTERY PROGRAMS 1. Provide $7,100,000 in continuation funding for the Chancellor's F.Y. 1996 initiatives: Connecting Students and Services ($500,000); Connecting Teachers and Technology ($5,000,000) and GALILEO ($1,600,000). 2. Provide $3,000,000 in support for upgrading the technology infrastructure of all institutions. 3. Provide $15,000,000 for continuation funding for the Equipment, Technology and Construction Trust Fund. 4. Provide $6,454,422 for Internet connectivity for all education institutions and public libraries. 5. Provide $1,120,000 for the development ofa distance leaming center and virtual museum at Fernbank Science Center. 6. Provide funds for the purchase of educational programming for the GPTC to be used for distance leaming. TOTAL LOTTERY FUNDS TOTAL STATE FUNDS 50,068,172 1,365,784,369 7,100,000 3,000,000 15,000,000 6,454,422 1,120,000 1,500,000 34,174,422 1,399,958,791 431 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Unit A - Resident Instruction Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services: Educ., Gen., and Dept. Svcs. Sponsored Operations Operating Expenses: Educ., Gen., and Dept. Svcs. Sponsored Operations Special Funding Initiative Office of Minority Business Enterprises Student Education Enrichment Program Forestry Research Research Consortium Capital Outlay F.Y.1995 Expenditures F.Y.1996 F.Y.1997 Expenditures Current Budget F.Y. 1998 AR;ency Requests Redirection Level Enhancements Totals 1,073,079,674 165,564,785 1,157,829,143 202,917,763 1,241,429,484 204,000,000 1,241,429,484 204,000,000 290,754,471 237,607,745 10,330,247 319,526 289,713,286 145,787,679 15,314,094 994,628 295,648,162 146,000,000 20,352,506 1,276,046 295,648,162 146,000,000 18,922,136 1,276,046 349,130 364,360 359,714 359,714 338,382 1,821,620 112,527,739 362,508 5,000,000 388,344 6,645,000 388,344 6,645,000 26,644,~48 1,268,073,832 204,000,000 21,370,296 23,400,000 32,672 317,018,458 146,000,000 42,322,136 1,308,718 10,945 370,659 17,475 206,827,047 405,819 6,645,000 206,827,047 Total Funds 1,892,693,319 1,818,283,461 1,916,099,256 1,914,668,886 Less Sponsored & Other Funds: Departmental Sponsored Other - General Funds Capital Outlay Indirect DOAS Funding Total Sponsored & Other Funds Total State Funds 47,059,235 403,172,590 367,640,611 78,796,364 3,027,300 899,696,100 992,997,219 42,000,000 348,705,442 343,117,246 3,027,300 736,849,988 1,081,433,473 42,000,000 350,000,000 358,043,481 3,027,300 753,070,781 1,163,028,475 42,000,000 350,000,000 358,214,093 3,027,300 753,241,393 1,161,427,493 Positions 23,717 24,678 26,063 26,063 278,302,783 2,192,971,669 22,922,484 206,827,047 229,749,531 48,553,252 42,000,000 350,000,000 381,136,577 206,827,047 3,027,300 982,990,924 1,209,980,745 26,063 432 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Unit A - Resident Instruction F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services: Educ., Gen., and Dept. Svcs. Sponsored Operations Operating Expenses: Educ., Gen., and Dept. Svcs. Sponsored Operations Special Funding Initiative Office of Minority Business Enterprises Student Education Enrichment Program Forestry Research Research Consortium Capital Outlay Adjusted Base 1,241,624,497 204,000,000 289,396,915 146,000,000 18,682,578 976,046 359,714 388,344 100,000 Redirection Level Funds To Redirect Additions Redirection Totals (46,400,000) (11,600,000) (2,170,636) (15,000) (19,038) (19,417) 46,400,000 1,241,624,497 204,000,000 11,600,000 289,396,915 146,000,000 16,511,942 961,046 340,676 368,927 100,000 Enhancements Totals 29,405,229 1,271,029,726 204,000,000 28,360,517 10,239,000 317,757,432 146,000,000 26,750,942 961,046 340,676 5,985,000 359,000 368,927 6,085,000 359,000 Total Funds 1,901,528,094 (60,224,091) 58,000,000 1,899,304,003 74,348,746 1,973,652,749 Less Sponsored & Other Funds: Departmental Sponsored Other - General Funds Capital Outlay Indirect DOAS Funding 42,000,000 350,000,000 358,315,567 3,027,300 Total Sponsored & Other Funds 753,342,867 Total State Funds 1,148,185,227 (60,224,091) 42,000,000 350,000,000 358,315,567 58,000,000 3,027,300 753,342,867 1,145,961,136 24,880,924 42,000,000 350,000,000 383,196,491 24,880,924 49,467,822 3,027,300 778,223,791 1,195,428,958 Positions 24,809 24,809 24,809 RECOMMENDED APPROPRIATION: The Regents, University System of Georgia Unit "A", is the budget unit for which the following State Fund Appropriation for F.Y. 1998 is recommended: $1,195,428,958. 433 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Formula Presentation PART I: INSTRUCTION AND RESEARCH A. Instruction B. Rt:search (equal to graduate instruction) C. Community Education (334,493 Continuing Education Units at $43.79 per unit) PART II: PUBLIC SERVICE A. Campus Coordinators (one professional and one support position per institution) B. Public Service Institutes TOTAL FUNDING BASE PART III: ACADEMIC SUPPORT (17.7% of the Funding Base) PART IV: STUDENT SERVICES AND INSTITUTIONAL SUPPORT A. General Support (23.1% of Funding Base) B. Fringe Benefits (FlCA, health and life insurance, workers' compensation, etc.) C. Teachers' Retirement PART V: OPERATION AND MAINTENANCE OF PLANT A. Regular Operations (30,903,110 square feet at $3.8717 per square foot) B. Major RepairlRehabilitation Fund (0.99% of F.Y. 1996 replacement value of $4,349,925,926) C. Utilities (30,903,110 square feet at $1.6042 per square foot) Sub-Total $600,287,505 157,343,010 14,603,658 3,028,480 8,867,960 $784,130,613 138,791,119 181,134,172 184,286,451 96,616,727 119,647,571 42,924,444 49,574,769 $1,597,105,866 PART VI: HEW DESEGREGATION PLAN PROGRAMS PART VII: QUALITY IMPROVEMENT PROGRAM Total Formula Requirement Sustained Budget Reductions Internal Revenue: Student Fees Graduate Assistant Fee Reduction Other Total Internal Revenue Total State Funds LESS: DOAS Formula Requirement 2,000,000 15,971,059 $1,615,076,925 (68,289,767) $363,938,136 (5,400,000) 24,552,801 $383,090,937 $1,163,696,221 (3,027,300) $1,160,668,921 434 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Funding for Instruction A. ACADEMIC POSITIONS REQUIRED Program Quarter Credit Hours Lower Upper Graduate Instructional Productivity = Lower Upper Graduate Lower Academic Positions Upper Graduate Total Group 1 Group 2 Group 3 Group 4 Group 5 TOTALS 1,969,256 1,073,549 1,480,472 484,428 5,007,705 450,803 960,639 704,389 2,115,831 156,361 500,483 304,656 139,167 1,100,667 1,650 1,269 834 1,538 1,211 759 1,172 793 423 1,157 512 1,193 698 1,263 419 3,573 355 793 888 2,036 187 659 720 272 1,838 1,735 2,150 2,871 419 272 7,447 B. ACADEMIC SALARIES Program Academic Positions X Lower Upper Graduate Average Salary Rate Academic Position Salary Amount Lower Upper Graduate Total Group 1 Group 2 Group 3 Group 4 Group 5 TOTALS 1,193 698 1,263 419 3,573 355 793 888 2,036 187 659 720 272 1,838 63,031 63,664 63,074 61,324 87,128 75,195,983 44,437,472 79,662,462 25,694,756 224,990,673 22,376,005 50,485,552 56,009,712 128,871,269 11,786,797 41,954,576 45,413,280 23,698,816 122,853,469 109,358,785 136,877,600 181,085,454 25,694,756 23,698,816 476,715,411 C. INSTRUCTIONAL SUPPORT POSITIONS AND SALARIES Program Group 1 Group 2 Group 3 Group 4 Group 5 TOTALS Academic Positions Lower Upper 1,193 355 698 793 1,263 888 419 Graduate 187 659 720 272 3,573 2,036 1,838 Position Ratio X 3.7 3.4 2.8 3.7 1.9 Salary Rate 21,558 21,716 22,902 24,892 24,361 Instructiooal Support Salary Amount Lower Upper Graduate Total 6,950,998 2,068,403 1,089,553 10,108,954 4,458,167 5,064,938 4,209,072 13,732,177 10,330,438 7,263,206 5,889,086 23,482,730 2,818,851 2,818,851 3,487,469 3,487,469 24,558,454 14,396,547 14,675,180 53,630,181 D. INSTRUCTIONAL OPERATING EXPENSE Program Group 1 Group 2 Group 3 Group 4 Group 5 Combined Salary Amount X Lower Upper Graduate 82,146,981 24,444,408 12,876,350 48,895,639 55,550,490 46,163,648 89,992,900 63,272,918 51,302,366 28,513,607 27,186,285 TOTALS 249,549,127 143,267,816 137,528,649 Expense Ratio (%) 6.00 13.00 18.00 9.00 14.00 Lower 4,928,819 6,356,433 16,198,722 2,566,225 30,050,199 Operatiog Expense Upper Graduate 1,466,664 772,581 7,221,564 6,001,274 11,389,125 9,234,426 20,077,353 3,806,080 19,814,361 Total 7,168,064 19,579,271 36,822,273 2,566,225 3,806,080 69,941,913 E. INSTRUCTIONAL PROGRAM COST SUMMARY Lower 87,075,800 55,252,072 106,191,622 31,079,832 Upper 25,911,072 62,772,054 74,662,043 Graduate 13,648,931 52,164,922 60,536,792 30,992,365 Total 126,635,803 170,189,048 241,390,457 31,079,832 30,992,365 435 279,599,326 163,345,169 157,343,010 600,287,505 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary UnitB Expenditures, Current Budget and Agency Requests Budget Classes/Fund Sources Personal Services: Educ., Gen., and Dept. Svcs Sponsored Operations Regular Operating Expenses: Educ., Gen., and Dept. Svcs Sponsored Operations Capital Outlay Agricultural Research Advanced Technology Development Center / EDl Capitation Contracts for Family Practice Residency Residency Capitation Grants Student Preceptorships Family Practice Obstetrical Fellowships Mercer Medical School Grant Morehouse School of Medicine Grant Center for Rehabilitation Technology SREB Payments Medical Scholarships Regents' Opportunity Grants Regents' Scholarships Rental Payments to Georgia Military College CRT Inc. Contract at Georgia Tech Research Institute Area Health Education Centers Direct Payments to the Georgia Public Telecommunications Commission for Operations F.Y.1995 Expenditures 253,896,197 76,759,872 130,267,787 45,823,884 3,892,345 2,041,867 1,886,720 2,937,583 2,484,870 146,400 6,244,350 5,241,300 2,219,185 5,948,000 1,252,446 600,000 200,000 821,295 237,347 9,397,315 F.Y.1996 Expenditures F.Y.1997 Current Budget F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 262,302,304 69,874,000 126,664,428 38,184,000 35,000 2,342,532 1,979,060 3,548,759 2,484,870 146,400 274,341,856 69,874,000 127,194,177 38,184,000 2,397,136 2,062,129 3,864,204 2,119,378 146,400 270,490,222 64,529,345 130,326,170 37,002,411 2,397,136 13,794,056 3,962,781 1,172,531 175,500 6,619,012 5,549,778 2,072,196 5,397,800 1,347,852 600,000 200,000 1,034,952 219,372 14,227,443 7,000,000 5,868,890 2,505,183 4,426,900 1,357,718 600,000 200,000 1,122,866 208,403 425,000 14,829,577 7,210,000 6,044,957 2,613,577 4,230,650 1,357,718 600,000 200,000 1,122,866 208,403 14,139,178 2,193,065 2,048,462 40,844 302,580 258,219 120,000 814,000 41,000 771,742 272,683,287 64,529,345 132,374,632 37,002,411 2,437,980 14,096,636 4,221,000 1,172,531 175,500 120,000 7,210,000 6,044,957 3,427,577 4,230,650 1,398,718 600,000 200,000 1,894,608 208,403 14,139,178 Total Funds Less Federal & Other Funds: Departmental Income Sponsored Income Other Funds Capital Outlay Indirect DOAS Total Federal & Other Funds Total State Funds Positions 552,298,763 544,829,758 558,727,817 561,577,501 3,473,958 125,506,086 262,893,908 3,768,584 555,700 396,198,236 156,100,527 7,042 109,330,000 264,898,258 555,700 374,783,958 170,045,800 7,046 109,767,000 273,525,410 555,700 383,848, II 0 174,879,707 7,084 110,703,582 277,893,642 555,700 389,152,924 172,424,577 7,033 6,589,912 568,167,413 6,589,912 20 110,703,582 277,893,642 555,700 389,152,924 179,014,489 7,053 436 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary UnitB F.Y.1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services: Educ., Gen., and Dept. Svcs Sponsored Operations Regular Operating Expenses: Educ., Gen., and Dept. Svcs Sponsored Operations Capital Outlay Agricultural Research Advanced Technology Development Center/ ED! Capitation Contracts for Family Practice Residency Residency Capitation Grants Student Preceptorships Family Practice Obstetrical Fellowships Mercer Medical School Grant Morehouse School of Medicine Grant Center for Rehabilitation Technology SREB Payments Medical Scholarships Regents' Opportunity Grants Regents' Scholarships Rental Payments to Georgia Military College CRT Inc. Contract at Georgia Tech Research Institute Area Health Education Centers Direct Payments to the Georgia Public Telecommunications Commission for Operations Adjusted Base 271,436,754 64,529,345 128,912,914 37,002,411 2,397,136 13,794,056 3,864,204 2,119,378 146,400 7,000,000 5,868,890 2,582,088 4,426,900 1,357,718 600,000 200,000 1,038,930 208,403 14,147,499 Redirection Level Funds To Redirect Additions (5,088,539) 1,962,240 (1,727,920) 2,806,621 (119,857) (336,200) 80,382 316,200 (946,847) (51,804) (224,950) (70,000) (56,143) 51,804 28,700 70,000 56,143 (1,214,586) 1,739,715 Redirection Totals Enhancements 268,310,455 64,529,345 129,991,615 37,002,411 2,357,661 13,774,056 3,864,204 1,172,531 146,400 47,250 140,000 7,000,000 5,868,890 2,582,088 4,230,650 1,357,718 600,000 200,000 1,038,930 208,403 413,100 14,672,628 Totals 268,357,705 64,529,345 129,991,615 37,002,411 2,357,661 13,914,056 3,864,204 1,172,531 146,400 7,000,000 5,868,890 2,995,188 4,230,650 1,357,718 600,000 200,000 1,038,930 208,403 14,672,628 Total Funds Less Federal & Other Funds: Departmental Income Sponsored Income Other Funds Capital Outlay Indirect DOAS Total Federal & Other Funds Total State Funds Positions 561,633,026 110,703,582 277,893,642 555,700 389,152,924 172,480,102 7,084 (9,836,846) (9,836,846) (138) 7,111,805 558,907,985 7,111,805 27 110,703,582 277,893,642 555,700 389,152,924 169,755,061 6,973 600,350 559,508,335 600,350 3 11 0,703,582 277,893,642 555,700 389,152,924 170,355,411 6,976 437 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Unit C - Georgia Public Telecommunications Commission Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 3,550,089 10,044,160 13,594,249 F.Y.1996 Expenditures 3,282,815 20,148,518 23,431,333 F.Y.1997 Current Budget 3,772,497 8,357,497 12,129,994 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 4,045,227 8,357,497 12,402,724 4,045,227 0 8,357,497 0 12,402,724 92,787 13,501,462 13,594,249 0 207 18 23,431,333 23,431,333 0 216 18 12,129,994 12,129,994 0 229 19 12,402,724 12,402,724 0 224 19 0 12,402,724 0 12,402,724 0 0 0 224 0 19 438 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Unit C - Georgia Public Telecommunications Commission F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Personal Services Regular Operating Expenses Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 3,845,498 8,357,497 12,202,995 12,202,995 12,202,995 0 229 19 Redirection Level Funds To Redirect Additions 199,729 199,729 199,729 199,729 0 0 (16) 10 19 19 Redirection Totals 4,045,227 8,357,497 12,402,724 Enhancements 0 0 0 12,402,724 0 12,402,724 0 0 0 223 0 19 0 Totals 4,045,227 8,357,497 12,402,724 12,402,724 12,402,724 0 223 19 439 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Unit D - Lottery Programs Expenditures, Current Budget and Agency Requests , Budget Classes/Fund'Sources F.Y.1995 Expenditures Equipment, Technology and 19,321,347 Construction Trust Fund Fernbank Distance Learning Center Internet Connection Equipment 1,000,000 Per Diem, Fees and Contracts 50,000 Zoo Atlanta Resources Center 2,500,000 GMC Old Governor's Mansion Georgia Research Alliance 36,553,653 Albany State College 13,000,000 Special Funding Initiatives 12,095,000 Capital Outlay 3,000,000 Agricultural Exp. Stations GPTC 32,221,000 Chehaw Education Center Lottery Funds 119,741,000 F.Y.1996 Expenditures 18,000,000 F.Y.1997 Current Budget 16,400,000 3,500,000 300,000 28,917,000 3,639,611 12,514,000 5,000,000 1,500,000 73,370,611 20,254,000 10,100,000 1,500,000 2,000,000 50,254,000 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 16,400,000 16,400,000 197,900 197,900 750,000 24,290,000 10,100,000 750,000 24,290,000 10,100,000 1,500,000 53,237,900 1,500,000 53,237,900 440 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Financial Summary Unit D - Lottery Programs F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Equipment, Technology and Construction Trust Fund Fernbank Distance Learning Center Internet Connection Equipment Per Diem, Fees and Contracts Zoo Atlanta Resources Center GMC Old Governor's Mansion Georgia Research Alliance Albany State University Special Funding Initiatives Capital Outlay Agricultural Exp. Stations GPTC Chehaw Education Center Lottery Funds Redirection Level Funds To Redirect Additions Redirection Totals Enhancements 15,000,000 1,120,000 6,454,422 10,100,000 1,500,000 34,174,422 Totals 15,000,000 1,120,000 6,454,422 10,100,000 1,500,000 34,174,422 441 REGENTS, UNIVERISITY SYSTEM OF GEORGIA Unit B - Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Marine Extension Service 1,989,517 1,359,434 1,991,484 1,406,684 2. Skidaway Institute of Oceanography 3,933,780 1,519,510 4,696,131 1,519,510 3. Marine Institute 1,376,989 976,989 1,430,139 968,139 4. Georgia Tech Research Institute 117,578,655 13,348,554 106,297,257 9,058,174 5. Education Extension Services 11,038,929 2,617,757 22,967,874 7,353,780 6. Agricultural Experiment Stations 58,790,970 38,202,317 59,043,786 37,223,133 7. Cooperative Extension Service 49,210,724 31,398,407 48,849,010 30,273,790 8. Medical College of Georgia Hospital and Clinics 253,861,493 32,956,551 252,372,698 31,467,756 9. Veterinary Medicine Experiment Station 2,887,931 2,887,931 2,867,743 2,867,743 10. Veterinary Medicine Teaching Hospital 2,827,763 527,752 5,027,364 526,364 11. Joint Board of Family Practice 24,236,155 24,236,155 23,211,377 23,211,377 12. Georgia Radiation Therapy Center 13. Athens and Tifton Veterinary Labs 14. Regents Central Office 3,044,746 3,128,504 24,821,661 128,504 24,719,846 3,172,696 3,000,000 24,580,776 24,478,961 TOTAL APPROPRIATIONS 558,727,817 174,879,707 559,508,335 170,355,411 RECOMMENDED APPROPRIATION: The Regents, University System of Georgia Unit "B", is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $170,355,411. 442 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Roles and Responsibilities The University System of Georgia provides public higher education facilities and programs to Georgia residents. In 1996, the System served 278,461 students and granted 35,083 degrees. This undertaking requires 33,147 equivalent fulltime state funded positions budgeted as of July 1, 1996. This total does not include 229 positions in the Georgia Public Telecommunications Commission. The Units of the University System perform several different functions, including instruction, research, and public service. The primary mission of the system is instruction. This activity is funded through the Resident Instruction or "A" Unit Budget. The "B" Unit Budget contains 14 different functional budgets. Activities funded through the "B" Unit include the Georgia Tech Research Institute, Agricultural Experiment Stations, Cooperative Extension Service, and the Medical College of Georgia Hospital and Clinics. DEPARTMENT OPERATIONS INSTRUCTION--The system is composed of 34 institutions that provide approximately 90 percent of the people of Georgia with access to institutions of higher education within commuting distance. Programs leading to an associate degree are offered by 15 two-year colleges. Four of these institutions (Bainbridge, Coastal Georgia Community College, Clayton and Dalton) offer vocational programs through an arrangement with the State Board of Technical and Adult Education. There are 13 senior colleges and state universities in the system. These institutions offer baccalaureate degrees, and most offer associate and graduate degrees. All six regional and research universities in the system offer graduate and professional degrees, as well as some associate and baccalaureate programs. OTHER SYSTEM UNITS AND ACTIVITIES GEORGIA TECH RESEARCH INSTITUTE (GTRI)-- is comprised of six laboratories that provide a broad range of scientific, engineering and industrial research. The Institute encourages industrial and economic development by providing an extension service that meets the technical, informational and other needs of industry and local development groups. GTRI employees are active participants and provide leadership to national programs of science, technology and preparedness. AGRICULTURAL EXPERIMENT STATIONS-conduct basic and applied agricultural research to obtain a more complete understanding of the factors that bear upon Georgia agriculture. This mission is accomplished by research in crop and animal production, product quality, new product development, and use of new technology in the processing and manufacturing of these products. COOPERATIVE EXTENSION SERVICE-- provides assistance to Georgia farmers through a network of county extension agents who share information and research developed through the efforts of the Agricultural Experiment Stations. Off-campus educational programs are provided in agriculture, home economics, youth development, rural development and natural resources. MEDICAL COLLEGE OF GEORGIA HOSPITAL AND CLINICS-- serve as an auxiliary unit of the Medical College of Georgia focusing on the development of medical knowledge and skills through organized programs of teaching medical, dental, nursing and allied health science students. The Medical College of Georgia Hospital and Clinics allow students to develop knowledge and skills by actually participating in the care of patients. GEORGIA RESEARCH ALLIANCE (GRA)-- is a partnership between Georgia's public and private research universities and private corporations to promote economic development in Georgia. GRA's mission is to improve Georgia's research capabilities in emerging technologies-specifically, advanced communications, biotechnology and environmental technologies--that offer significant potential for economic and industrial growth. All of GRA's activities are geared toward creating and nurturing a critical mass of intellectual capital that in turn leads to the creation of new technologies, new companies and other cutting edge opportunities for Georgia. ATTACHED AGENCIES The Georgia Public Telecommunications Commission provides a nine-station television network, and a radio network that will grow to 13 stations in 1996 to meet the educational, cultural and information needs of the people of Georgia. The commission also provides educational programming for state agencies and local schools through PeachStar. The State Medical Education Board administers a medical scholarship program and loan repayment program, and promotes the practice of rural medicine. The Joint Board of Family Practice encourages the development of family practice educational programs by extending financial aid to medical school and family practice residency training programs. It also administers the Southern Regional Education Board Payments programs as well as operating grants to the Mercer University School of Medicine and the Morehouse School of Medicine. ' AUTHORITY Titles 12,20,49, and 50 of the Official Code of Georgia Annotated. 443 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Strategies and Services Higher education has a proud will retain the number three average close contact with the people of history in the state of Georgia. The salary ranking in the SREB states. Georgia, be responsive to the needs of beginnings of this tradition can be Recognizing the importance to the Georgians first and foremost while traced to 1784 when the General System of attracting and maintaining raising their aspirations, and generate a Assembly set aside 40,000 acres of excellent employees, the Governor's more highly educated populace land for the endowment of "a college F.Y. 1998 recommendations include a throughout the state." or seminary of learning." From that six percent pay increase for all humble start, the University System of personnel. With this salary increase, CHANCELLOR'S INITIATIVES Georgia has grown to include four Georgia's ranking could reach number Governor Miller is recommending universities, two regional universities, two by F.Y. 1998. funds for five new and eight continuing 13 four-year colleges, and initiatives. This 15 two-year colleges recommendation which cumulatively continues funding enrolled 204,332 students for three of in the fall of 1996. Because of the HOPE Scholarship program, a college education is now within reach of young $60,000 University System of Georgia Average Faculty Salary SREB Rank 2nd S56,248 Chancellor Portch's original initiatives, Connecting Students and Services, Connecting people from all of Georgia's families. Georgia's population, $55,000 SREB Rank3rd Teachers and Technology, and the GALILEO system. which grew at a rate of almost 20 percent in the $50,000 SREB Rank 6th In addition, the Distinguishe d 1980s, continues to increase. The 1995 fall $45,000 $45,150 Teachers Program, P-16, Graduate enrollment figures, on Education Programs which the F.Y. 1998 formula recommendations are based, show an increase in the number of quarter credits hours 1994 1995 1996 1998 Fiscal Years o Average Faculty Salary Projected Faculty Salary and Professional Development initiatives are also continued at F.Y. 1997 funding levels. earned. It is expected that Two other initiatives further growth in the are being expanded number of students served from last year. by the System's member FACILITY institutions will continue. Improved Any growing organization must MASTER PLANS-- Facility master economic prospects for Georgia make have a vision to guide its decisions, and plans analyze an institution's existing it possible to plan for this growth. the University System has completed facilities in relation to institutional To ensure that Georgia's colleges its strategic plan. Guiding this work is needs and then suggest the growth or and universities can attract professors a statement of purpose adopted by the renovations required to meet those to teach the rising number of students, Board of Regents that says, in part: needs efficiently within existing Governor Miller continues to work to "As Georgia emerges as a leader in budgets and without undue sacrifice of increase faculty salaries. In F.Y. 1992, a global society, the University System natural resources or the architectural Georgia ranked seventh among the of Georgia will lead in access to heritage of the campus. The Governor Southern Regional Education Board academic excellence. Among the recommends second year funding of (SREB) states in average faculty nation's public universities and $1,350,000 to complete several facility salaries at four-year public institutions, colleges, Georgia's will be recognized master plans including: Abraham with an average salary of $42,766. In for first-rate undergraduate education, Baldwin Agricultural College, F.Y. 1996, the average salary at four- leading-edge research, and committed Armstrong Atlantic State University, year public institutions in Georgia was public service.... The University Augusta State University, Clayton $50,060 and Georgia ranked third. System of Georgia and its component College and State University, DeKalb This year it is projected that Georgia colleges and universities will sustain College, Georgia State University, 444 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Strategies and Services Savannah State University, Southern Polytechnic State University, State University of West Georgia, Valdosta State University, and the Skidaway Institute of Oceanography. In an effort to maximize the funding each institution will contribute other funds toward the total cost ofthe master plan. INTELLECTUAL CAPITAL PARTNERSHIP PROGRAM (ICAPP)-- is also recommended to be expanded. ICAPP initiatives support Georgia's economic development by leveraging University System assets: to attract and help create new industry and to support the growth of existing business and industry; to prepare Georgia's workforce to meet the present and emerging needs of business and industry; and to develop active partnerships with business and industry, government and cultural and social organizations in order to analyze, project and respond to changing state and regional needs. ICAPP Accel is an expedited education program for computer programming and business analysts originally funded in F. Y. 1997 through Columbus State University/COMPASS. It will be continued with $2,314,000 and includes GSAMS expansion to Augusta State University and other potential sites. ICAPP was developed to meet high demands of an educated workforce, it is a centralized solution by distributed means. ICAPP Accel is the higher education complement of Quick Start, Georgia's fast-response technical training program. Continuation funding of $400,000 is recommended to expand the ICAPP workforce preparedness needs assessment to better align Georgia's education workforce needs with the University System ofGeorgia's (USG) academic program planning. Additional ICAPP funds are recommended to meet access needs identified by business surveys, listening forums and focus groups. Governor Miller advocates $250,000 for two databases: one, a one-stop-shop technology entrance to USG assets, creating a database of expertise and outreach services available across the System. A second database would address matchmaking needs for employers and student internships, coops and faculty development opportunities. An additional $250,000 will assist in the development of other instructional offerings in computerrelated fields. Funding for an innovative regional economic development program is the Governor's last ICAPP proposal. One region ofthe state would be selected from competitive proposals of the initial program which is conceived to create institution-based pilot programs linking USG assets to regional economic development needs. This program offers means to test and showcase both cooperative and collaborative initiatives among USG institutions and regional parties that have potential to be replicated in other regions of the state. Use of funds from local, regional or private sources would be critical in matching the $1,000,000 recommended for this proposal. Total recommended funding: $4,214,000. The Governor is also recommending funding for five new initiatives. They are: INSTRUCTIONA L TECHNOLOGY-- Support for this initiative requires both state general and lottery funding. This initiative addresses the technology training and support needed to keep the University System moving forward in the use of technology in the classroom and in support areas. The initiative focuses on three areas: upgrading hardware and software; technology support; and technology training. It is recommended that the first area, upgrading hardware and software receive $3 million in lottery funds. These funds support the $3 million appropriated to create model classrooms in F. Y. 1997, and are further focused this year to provide needed upgrades in this initiative. Technology support, funding for support personnel to assist in maintaining the hardware and software, is recommended to receive $3 million in general funds. The third area, technology training, is supported by general funds of $2 million. The Governor has recognized the need to prepare upcoming teachers in the use of technology and included funding in this component for teacher education programs. Total recommendation: $5 million state general funds, $3 million lottery funds. ADDITIONAL SUPPORT FOR MAJOR REPAIRS AND RENOVATION-- The Governor has included in his recommendations a formula revision that addresses the need of the University System to protect its assets. His recommendation increases the MRR formula for funding from .75 percent to .99 percent ofthe current replacement value of all assets, increasing the fund total to $42,924,444. PARTNERS IN SUCCESS-- In an effort to design a program to improve Georgia's secondary students' readiness for life after high school, the Governor is recommending $1,950,000 to better prepare students for entering the University System. This initiative provides $220,000 for a prognostic math test to be given to all high school juniors to assess their math skills; $680,000 for a mentoring program; $100,000 to publicize the new admissions standards; and $800,000 for gifted and talented high school programs at the State University of West Georgia and Middle Georgia College. Additional funds are being added to this initiative to support the development of a P-16 database which would allow a student to be tracked from the time they enter the Pre- Kindergarten program through college. This $150,000 allocation will provide operational support to coordinate this activity in the affected agencies. ENDOWED CHAIR-- State funds of $500,000 will provide one-time funding for an endowed chair at the Rosalyn Carter Institute of Caregiving 445 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Strategies and Services at Georgia Southwestern State University. These funds will match a pledged gift donation of $800,000 to support the endowment. INTERNET CONNECTIVITY-The Jast major initiative is a recommendation by Governor Miller that will maximize the funding provided for GALILEO and PeachNet expansion by providing additional funds to connect all public educational entities in the state to the Internet through this access point. This bold move will allow all K-12 schools, DTAE institutions and all public libraries access to both the Internet and GALILEO, the University System's online library system. Total first year funding for this initiative is $9,903,735. Lottery funding of $6,454,422 is contained in Regents' budget. All operating costs totalling $3,449,313 are recommended in DOE, DTAE and Regents budgets. CAPITAL OUTLAY PROJECTS The University System is committed to maintaining high-quality facilities. The Governor's F.Y. 1998 budget contains recommendations to fund, through bond sales, eight major capital outlay projects in the amowit of $75,185,250, which brings the total amount of construction projects authorized by the Governor to $838,127,340 since F.Y. 1992. The Governor is also recommending 12 projects from the minor capital outlay list totaling $36,610,000 and $10 million for a parking deck on the north campus of the University of Georgia. The funds appropriated for this project will be paid back to the state with revenue generated by the parking deck. The major new projects are: a student services building and health education classroom for Macon College ($8,757,000); phase II of the Manufacturing Related Disciplines Complex at Georgia Tech ($27,258,000); a student services and physical education building at Waycross College ($6,058,500); a music education building at Clayton College and State University ($4,305,000); a renovation/addition to Walker Hall Classroom Building and Dublin Center at Middle Georgia College ($7,686,000); a physical education facility at Columbus State University ($13,303,750); a student center at Atlanta Metropolitan College ($5,817,000); and an additional $2 million for flood recovery at Albany State University. Another major project included by the Governor in the F.Y. 1998 budget is the completion of the renovation of the Old Capitol Building at Georgia Military College. The Old Capitol, built in 1807, was severely damaged by fire in 1941. The plan includes a regional museum and renovation of the Legislative Chamber. The building College and State University in Milledgeville. The former mansion is a National Historic Landmark, which will be restored to illustrate the history ofthe site and its inhabitants during the years the mansion was the official residence of Georgia's governors. The restoration is estimated to cost $3.5 million. EQUIPMENT, TECHNOLOGY, & CONSTRUCTION TRUST FUND This lottery-funded initiative, first funded in the F.Y. 1994 budget, allows the University System of Georgia to address equipment, technology, and construction needs. This fund has provided for the purchase of needed equipment at the institutions, enabling them to expose their students to Miller Administration Capital Ontlay & Major Repair and Renovation Funds Lottery Capital Outlay $119,127,123 Total Funds: $1,175,767,563 Major Rl1lair and Renovation $218,513,100 would continue to serve as the administrative building for the college. The Governor recommends that this project be funded with $4.5 million in F.Y. 1998 bond funds. Phase I of the renovation was funded in F.Y. 1996 with $3.5 million in lottery funds. The Governor is also recommending $359,000 in state general funds to plan and design the restoration of the Old Governor's Mansion on the campus of Georgia equipment that represents the latest technological advancements. Specifically, funds have been utilized to purchase advanced equipment for classrooms, high technology research equipment and to build and equip technology related facilities. A system- wide match is required for fund projects. The Governor recommends $15 million for the fund, once again designating $3 million for Unit "B" activities. 446 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Strategies and Services RESIDENT INSTRUCTION The work ofthe University System can be divided into three categories: instruction, research, and service. Presently, the "A" Unit ofthe Regents' budget, which funds resident instruction at all of the 34 institutions, represents the largest commitment of money and personnel. The resident instruction portion of the System budget was $1,134,006,865 in F.Y. 1997. The Governor's recommended appropriation for this part of the Regents' budget in F.Y. 1998 is $1,160,668,921. Resident instruction is formula-funded. The formula recognizes enrollment growth as a major factor in funding the system. The F.Y. 1998 increase reflects a 1.7 percent increase in quarter credit hours. Another component of the formula addresses funding for major repair and rehabilitation of all University System assets. The present formula funds these repairs at .75 percent of the replacement value of all assets, currently valued at $4,349,925,926. The Governor's recommendation changes the formula to .99 percent of the current replacement value. The "A" unit also contains funding for Special Funding Initiatives, Forestry Research, the Student Education Enrichment Program, the Office of Minority Business Enterprises and the Research Consortium. RESEARCH Many of the items funded through the "B" portion of the budget involve research and service activities at the System's institutions. The Governor recommends that the "B" budget receive $170,355,411 in state funds for F.Y. 1998. State funds for the Georgia Public Telecommunications Commission are included in this amount. Research projects carried out at Georgia's universities and colleges add to the prestige of the System. They also have important economic benefits for the state. For example, federal and private research dollars that are attracted by the units of the System make an important contribution to Georgia's economy. These funds are often matched by state funds provided for research through the University System's budget. In this way, Georgia creates opportunities for talented researchers and teachers to pursue their interests at one of its public institutions and reaps the benefits of pure and applied research activities. One very important program funded under the "B" budget is Georgia Tech Research Institute (GTRl). GTRl is a nonprofit, customer-oriented applied research organization that not only provides technical solutions to important issues and problems, but also produces jobs and generates tax revenue for the state. GTRl conducts scientific, engineering and industrial research for local, state, national, and international sponsors. GTRl's economic importance stems from the out-of-state research dollars it attracts and spin-off companies created to market discoveries made at the Institute. Twenty-six such companies have been developed by current and former GTRl employees. In F.Y. 1996, the state invested $13 million in GTRl. During that period GTRl attracted an additional $83 million in sponsored funding. This year, the Governor recommends $9,058,174 in state funds for GTRl. This figure does not include funding for the Economic Development Institute, which has been transferred to the Advanced Technology Development Center line item to better reflect the economic development, outreach and service programs of Georgia Tech. GEORGIA RESEARCH ALLIANCE (GRA) Focusing on the creation and development of a rich research climate and advanced technology industries in Georgia for the next century, GRA is a key component of Governor Miller's economic development strategy. From F.Y. 1993 through F.Y. 1997, Georgia invested over $102 million in eminent scholars, research and development equipment, facilities and projects in advanced communications, biotechnology, and environmental technology. There is an additional $24 million invested in the Georgia Center for Advanced Telecommunications Technology (GCATT) building. This on-going and long-term investment has already led to an increase in funded research relationships between the University System and Georgia industry, research support (a preliminary analysis shows that the eminent scholars brought in close to $50 million in other funds), and new invention disclosures and licenses. Six companies have been started to date, with more underway, and five other companies have moved to Georgia. For F.Y. 1998, the Governor is recommending $1.5 million in funding for two eminent scholars, $500,000 for Technology Development Investment projects, and he recommends an additional $28,000,000 in the F.Y. 1997 amended budget for equipment and facilities. Per strategic area, the Governor recommends $6,435,000 for advanced communications, $5,643,100 for environmental technology, and $17,171,900 for biotechnology. SERVICE Service activities provide assistance to individuals or groups outside the traditional academic classroom. Universities and colleges in the System offer instructional programs, advisory services, applied research and other activities to assist Georgians. The public service institutes which are funded in the "A" unit have been discussed previously, but many other service activities are funded through the "B" budget. The Cooperative Ext~nsion Service, based at the University of Georgia, is one such program. The principal work ofthe Extension Service continues to be Georgia agriculture-embracing the food and fiber industries, horticulture, natural resources, and the 447 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Strategies and Services environment. In addition, it has programs in home economics and youth work, the latter through the statewide 4H organization. The Extension technology initiative that will help improve the county delivery system and public access to vital information. A new county clustering plan F.Y. 1998 State Funds Recommendation - $155,682,783 Industrial Development - 9.6% Service's fundamental mISSIOn is education, and its strength lies in a network of knowledge distribution which stretches from the campus to the homes, farms, and businesses of each county in the state. With its extensive linkages to the federal government, it can draw upon the resources of the United States Department of Agriculture and other federal agencies. Both the agency request and Governor's recommendation for F.Y. 1998 reflect an emphasis on agriculture. Major provisions of the plan include a Center for Horticulture, Ornamentals, and Turf in Griffm that will provide research and information to commercial organizations and the public on the rapidly growing green industry, and funding for a Center for Agriculture and Economic Development that represents a collaborative effort with the Agricultural Experiment Stations. The Governor has also proposed $250,000 in renovation funds for 4-H camp facilities across the state, and a implemented by the Cooperative Extension Service seeks to reaffirm the traditional mission of the agency and is expected to streamline management and maximize efficiency. The total state fund recommendation for the Cooperative Extension Service is $30,273,790, which reflects a 3.6 % decrease in state funds from F.Y. 1997. The mission of the Agricultural Experiment Stations is to conduct research and provide information on the factors that influence agriculture in Georgia. The agency is concerned with the solution of problems affecting the agriculture industry, as well as the welfare of both agriculture and consumer groups. The F.Y. 1998 recommendation includes funding for new projects in vegetable and beef cattle feed research. Funding is included to expand both the Center for Food Safety and Quality Enhancement and the precision agriculture program. The Governor has also recommended funds for the Center for Agriculture and Economic Development, as well as a new animal transgenics center. The completion of several long term research projects has led to a reduction in recommended state funds for the Agricultural Experiment Stations. The total F.Y. 1998 recommendation of $37,223,133 represents a 2.5% reduction in state funds from F.Y. 1997. Since 1970, the Marine Extension Service of the University of Georgia has worked to identifY problems related to Georgia's coastal and marine resources, to muster the expertise of the university community to address those problems, and to generate and disseminate information through its own applied research and communication program. With the recent implementation of GSAMS technology, the education mission and function of the marine agencies has experienced rapid growth. From October 1995 to May 1996, the Marine Extension Service used GSAMS capabilities to broadcast to 475 classes with 12,600 students taking part in marine science education experiences. Agriculture and aquaculture are not the only important elements of Georgia's economy. At the Georgia Tech Economic Development Institute (EDI), several initiatives are underway to attract new industry to the state and improve the competitiveness of small and medium size manufacturers. The mission of EDI is to provide highly visible, proactive management for Georgia Tech's economic development activities, to create a climate that encourages faculty and student participation in the economic development process, and to design programs that will advance the economic well-being and global competitiveness of Georgia, the region, and the nation. EDI has developed a Local Impact Model (LOCI) that provides communities with a knowledge based tool to determine objectives and complete measures of costs and benefits. More than 40 development projects in Georgia have 448 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Strategies and Services used LOCI in the past year. The F.Y. 1998 recommendation includes moving ED! state funds from GTRI to the Advanced Technology Development Center line item. The Advanced Technology Development Center at Georgia Tech seeks to stimulate the formation of technology-based companies and to assist in their growth and development. Since its inception in 1980, ATDC has assisted 125 new businesses, creating more than 1,700 jobs. Member and graduate client companies generated nearly $250 million in revenues last year. ATDC was recently named the "1996 Incubator of the Year" by the National Business Incubation Association, and also received the first annual Tibbets Award from the U.S. Small Business Administration. The major focus of several Unit B agencies is medical research and education. The Joint Board of Family Practice develops and administers programs to increase the supply of primary care physicians in Georgia. They Joint Board also identifies specific areas of the state in need of primary care physicians and assists Georgia counties in their efforts to attract and retain these physicians. Specifically, the Joint Board administers family practice residency training programs, two pediatric residency programs, a family practice student preceptorship program, operating grants to the Mercer University School of Medicine and the Morehouse School of Medicine, and grants to medical institutions participating in the Southern Regional Education Board's Payments Program. The Medical College of Georgia Hospital and Clinics serve as the academic medical hospital for the University System and focus on meeting the medical and health care needs of the citizens of Georgia. The hospital and clinics have as their vision the support of health care services in local communities through various outreach initiatives which bring specialty consultation to a local community through telemedicine or clinics sponsored by a local host institution. GOVERNOR'S TRADITIONAL INDUSTRIES PROGRAM The mission of the Governor's Traditional Industries program is to improve the competitiveness of Georgia's traditional industries through the application of new technology and the development of solutions to critical process and environmental problems. Beginning in F.Y. 1994, three industries that represent over 40 percent of Georgia's manufacturing employment have been singled out by collaborate to provide research, development, and technical assistance to these industries. Since the beginning of the initiative, the Governor has invested over $25 million. This funding has resulted in new research relationships, industry cost-matching, considerable cost-savings, new and/or improved products and processes, increased regulatory compliance, a safer environment, and in many cases new or saved jobs. Building on this success, the Governor recommends an additional $3,985,000 in general funds and $4,375,000 in bonds for the three industries. The Consortium on Competitiveness for the Apparel, Appropriation for Traditional Industries Research F.Y. 1994 - 1997 " '-', '-~ Apparel, Carpet, Textiles " 21.5% '~ \ Governor Miller for this initiative: pulp and paper; textile, carpet and apparel; and food processing. These industries face the greatest competitive pressure from low-wage countries. A dynamic public-private partnership has emerged in each area, and industry members set research agendas, evaluate research proposals, contribute to projects, and make funding recommendations. Institutions within the University System of Georgia Carpet, and Textile Industries (CCACTI) has received state appropriations of $6,210,000 to date, and Governor Miller recommends an additional $1 million in general funds and $500,000 in bonds in F.Y. 1998. The Consortium for Techn~logical Competitiveness in Pulp and Paper has received state appropriations of $6,857,000, and the Governor recommends and additional $1,546,000 in general funds and $1,060,000 ir 449 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Strategies and Services bonds for F.Y. 1998. The Food Processing Advisory Council (FoodPAC) has received appropriations of $5,635,000 plus an additional $7 million for a food safety building additioR in Griffm. Governor Miller recommends an additional $1,439,000 in general funds and $2,815,000 in bonds in F.Y. 1998, including $1.9 million for renovations to the Food Science and Technology building at the University of Georgia, which will enhance the university's ability to assist industry. Not technically part of the Traditional Industries program, but in a related area, the Governor recommends $140,000 for the Advanced Technology Development Center and the Economic Development Institute to assist in the development of an Advanced Food Technology Center at the Genesis FoodPark in Thomasville. The center will offer an incubator complex, a food processing laboratory, classrooms, management and technical assistance, as well as research, engineering and consulting services. GEORGIA PUBLIC TELECOMMUNICA TION S COMMISSION The Georgia Public Telecommunications Commission (GPTC) is Unit "C" of the Regents' budget. The Governor is recommending $14,672,628 in general funds and $2,620,000 in lottery funds for F.Y. 1998. Since its establishment in 1982, GPTC has pursued its mission: to enrich the quality of life in Georgia by effectively utilizing broadcast and related technologies to help people understand the world in which they live. To carry out its mission, GPTC operates nine television stations and 13 radio stations statewide. GPTC is scheduled to begin moving into its new facility in May 1997. Located on 14th Street in Atlanta, and adjacent to the new Georgia Center for Advanced Telecommunications Technology (GCATT), the new facility will be the fIrst public broadcasting facility in the nation with digital technology capabilities. The new facility will allow GPTV/PeachStar satellite programming to expand to 12 channels. Technical features of the new facility include three production studios with audience seating, six distance learning studios, three major post edit suites, and one major production suite. The facility will also contain a talk and live performance studio and two live production studios dedicated to Peach State Public Radio. In addition to broadcasting an extensive national program schedule provided by such agencies as the Public Broadcasting System and National Public Radio, member stations devote considerable resources to locally produced programs of interest to Georgia communities. Both the radio and television operations have produced programs for national distribution, giving Georgia considerable national exposure. An important initiative of Governor Miller's has been to increase the educational programming shown over GPTC and PeachStar. The commission's daytime programming is almost completely educational in nature. Georgia possesses a strong distance learning infrastructure. In the F.Y. 1994 budget, every public school, regional library, college and technical institution statewide received lottery funds to purchase and install satellite dishes. This equipment allows each school to receive educational programming from over 25 satellites. GPTC also purchased a satellite transponder, allowing the state to broadcast educational programming to every Georgia school and any other institution statewide with a satellite dish. Distance learning programming has expanded educational opportunities for Georgia students. For example, students can take a fast paced Japanese course called Irrashai, with sensei (teacher) Tim Cook. The Governor is recommending $1,500,000 in lottery funds for the purchase of additional educational programming. New programming opportunities will emerge with collaboration between the Fernbank Science Center and GPTC. The Governor recommends $1,120,000 in lottery funds be appropriated to construct a distance learning studio with a satellite uplink at Fernbank. This recommendation also includes remote equipment that can be used outside the studio. The package would allow satellite broadcast of educational programming from Fernbank, and schools could utilize the science centers' collection for fIeld trips as well as studio based programs. The commission has purchased and produced programming to assist teachers and other faculty in their professional development. A special emphasis of the staff development programming is helping teachers understand how to use multi-media in the classroom. Teleconferences expose local school personnel to state and national experts from a variety of fIelds--experts individual schools could not easily afford. Such programs can be used to fulfIll requirements for certifIcate renewal. 450 REGENTS, UNIVERSITY SYSTEM OF GEORGIA Results-Based Budgeting Program Summaries RESIDENT INSTRUCTION - INSTRUCTION PURPOSE: Stimulate Georgians' aspirations for higher education, and prepare Georgia students for leadership roles, responsible citizenship, employment and lifelong education in an ever changing world by providing quality educational programs in a broad range of disciplines leading to associate, baccalaureate, master and doctoral degrees. GOALS Increase the number of educated Georgians. Accommodate the needs of non-traditional students through alternative delivery modes such as Distance Education. Educate a diverse student body reflective of the general population of the state. Prepare students for entry into college-level programs. RESIDENT INSTRUCTION - RESEARCH PURPOSE: Expand the existing body of knowledge, provide learning opportunities for graduate students and use research findings to solve problems and improve the quality of life for all Georgia citizens. GOAL Increase and enhance the quality and quality of research consistent with the respective missions of the institutions within the University System of Georgia. RESIDENT INSTRUCTION - PUBLIC SERVICE PURPOSE: Support the goals of various public and private government and community organizations through community service instructional programs, consultative services, conferences, institutes and cultural and recreational services. GOALS Maintain and expand contacts with business and government leaders and organizations to assist them in accomplishing goals. Maintain linkages with major cultural and social organizations and government agencies. Pursue coordinated approaches to statewide, national and international telecommunications and other technological initiatives, such as distance education, to maximize public access to information. Benefit public health and material well-being. . Support the economic, physical and social objectives of the communities and regional areas where USG institutions are ~~ 451 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Results-Based Budgeting ATTACHED AGENCY PEACH STATE PUBLIC RADIO PURPOSE: Broadcast the highest quality in locally produced and nationally syndicated public radio programming which will enlighten, entertain, educate, and enrich the lives of listeners throughout the State of Georgia. (Georgia Public Telecommunications Commission) GOALS Increase local production capability so that, with the ability to focus more directly on the issues that concern Georgians, Peach State Public Radio can better serve its constituency and more significantly impact their day to day lives. Increase potential audience awareness of the public radio service, and thereby increase the number of Georgians Peach State Public Radio is in a position to reach. SATELLITE EDUCATION SERVICES PURPOSE: Deliver quality programming via the PeachStar Satellite network to learners of all ages and support services to those who assist the learner. (Georgia Public Telecommunications Commission) GOAL Develop, design, produce, acquire and distribute programs by PeachStar that meet identified needs of the lifelong learner, and provide the services that will increase the use of those products. BROADCAST SERVICES PURPOSE: Broadcast the highest quality in locally produced and nationally syndicated public television programming that will educate, inform, entertain and enrich the lives of all Georgians. (Georgia Public Telecommunications Commission) GOALS Enhance Georgia Public Broadcasting (GPB) programming by acquisition of additional telecasts from national, regional and other sources. Increase production capabilities and resources in order to produce programs that focus on the issues and concerns of Georgia's citizens enabling GPB to better serve its constituency. 452 REGENTS, UNIVERSITY SYSTEM OF GEORGIA -- Results-Based Budgeting AGENCY PROGRAMS 1. Instruction 2. Research 3. Public Service Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 1,531,253,413 527,152,814 451,845,269 837,732,889 288,399,847 247,199,869 1,557,124,356 536,059,204 459,479,318 845,024,559 290,910,094 249,351,509 TOTAL ATTACHED AGENCY PROGRAMS 1. Peach State Public Radio 2. Satellite Education Services 3. Broadcast Services 2,510,251,496 1,373,332,605 2,552,662,878 1,385,286,163 3,305,017 9,820,992 13,833,562 1,080,688 9,292,001 4,456,888 3,498,033 9,941,790 13,635,529 1,093,371 9,246,994 4,332,263 TOTAL 26,959,571 14,829,577 27,075,352 14,672,628 TOTAL APPROPRIATIONS 2,537,211,067 1,388,162,182 2,579,738,230 1,399,958,791 453 DEPARTMENT OF REVENUE Total Budgeted Positions as of October 1, 1996 -- 1,380 Assistant to Commissioner 1 , I Controller Commissioner 2 I I Deputy Commissioner I Assistant Commissioner IBudget 2 3 1 Administrative Internal Audit! EEO and Safety Tralmng Hearing Officer - f- Operations Analysis Officer 21 2 7 I- - 1 7 Legal Assistant Public Information - f-- Director 1 1 Office of I Research Personnel f- - Administration 11 1 I Alcohol and Tobacco 47 Investigates illegal tax liability activities ...enforces laws pertaining to alcoholic beverages, cigars and cigarettes. Special Assistant I- 1 I Information Systems 68 Develops computer systems... provides maintenance and enhancements on existing systems and support for microcomputer tasks. , Motor Vehicle 285 Issues license tags and titles on all motor vehicles registered in Georgia ... provides information to state and local enforcement agencies... inspects salvaged! rebuilt motor vehicles. :speClal Investigations f-- 4 Internal Administration 138 Provides centralized processing, microfilming, cashiering, records retrieval and management, procurement, accounting activities, and data entry services to other divisions. I Field Services 318 Provides taxpayer information... audits and collects delinquent taxes. I Taxypayer Accounting 66 Registers and maintains all business tax accounts and accounts receivable files ... issues all refunds, credits and liability notices to offset outstanding liabilities. I Property Tax 59 Administers laws and regulations for property tax, intangible tax, real estate transfer tax and unclaimed property. I I Central Audit 130 Audits income, sales, motor fuel and unclaimed property tax accounts in Georgia and the nation. I Sales Tax 94 Administers all laws for sales and use tax, motor fuel tax and motor carrier fuel tax.. .issues regulations and manages all taxpayer protests and hearings pertaining to these taxes. I Income Tax 128 Administers income tax laws on income of individuals, fiduciaries and corporations...issues income tax regulations and manages taxpayer protests. 454 DEPARTMENT OF REVENUE RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 INCREASE OVER F.Y. 1997 BUDGET REDIRECTION LEVEL $91,973,369 $100,465 $91,973,369 HIGHLIGHTS $6,182,668 to implement the frrst phase of the "Blueprint for Modernization". Together with $15,154,832 in the F.Y. 1997 Amended Budget, the Governor has recommended a total investment of $21,337,500 to modernize the department's management and information systems. The funding provides for 12 projects recommended as a result of an in-depth and comprehensive analysis of the department's operations to identify opportunities for improvement and to prepare the department for the 21st century. Implementing these recommendations will provide the citizens of Georgia with a Revenue Department capable of administering the state's tax, tag and title laws in the most accurate, fair and cost-effective manner. Transforming the department into a more efficient and effective organization requires a substantial initial investment. However, this investment will pay for itself in the short term by ensuring that the proper amount of taxes are paid and collected. A modernized department with efficient management systems will provide the state with accurate and efficient computer processing systems for tax accounting and tag and title records. DEPARTMENT OF REVENUE "Blueprint for Modernization" 12 Priorities Recommended - Total $21,337,500 Projects Recommended Governor's Recommendation KY. 1997 Amended F.Y. 1998 1. Modernization Management Unit 192,000 2. Sales Tax System 950,000 3. Electronic Processing/Imaging 220,000 4. Motor Vehicle Modernization 1,397,332 902,668 5. Accounts Receivable (Agency Funds) 6. Compliance & Tax Policy Research 1,185,000 7. Integrated Tax Administration System 1,538,000 8. Strategic Information Technology Planning 650,000 9. Quality Assurance 675,000 10. Year 2000 8,347,500 11. Other Systems Investments 5,000,000 12. Call Center 280,000 TOTAL 15,154,832 6,182,668 455 DEPARTMENT OF REVENUE Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources F.Y.1995 Expenditures Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Postage Motor Vehicle Tag Purchases County Tax Officials-ERSIFICA Investment for Modernization 55,749,434 4,665,107 1,263,234 250,913 800,693 2,779,359 988,174 14,477,835 1,027,206 3,629,236 6,286,955 3,369,000 F.Y.1996 Expenditures 57,716,364 5,855,945 1,310,690 188,074 743,434 2,828,977 1,117,662 14,589,987 2,769,048 3,787,043 10,349,333 3,358,795 F.Y.1997 Current Budget 57,970,695 5,399,457 1,366,540 251,386 421,189 2,855,447 1,106,300 14,870,790 3,267,510 3,721,810 2,404,350 3,422,795 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 58,398,993 5,833,639 1,028,839 415,770 505,448 2,895,194 1,069,403 15,123,308 2,737,690 3,521,810 2,404,350 3,251,655 1,242,092 218,163 30,630 321,376 224,140 25,200 20,619 1,184,205 17,825 6,000 849,783 59,641,085 6,051,802 1,059,469 737,146 729,588 2,920,394 1,090,022 16,307,513 2,755,515 3,527,810 2,404,350 4,101,438 Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 95,287,145 104,615,352 97,058,269 97,186,099 102,776 1,082,197 3,844,980 5,029,953 90,257,192 1,416 77 83,797 1,163,743 3,845,000 5,092,540 99,522,812 1,416 77 1,340,365 3,845,000 5,185,365 91,872,904 1,380 78 1,340,365 3,845,000 5,185,365 92,000,734 1,394 78 4,140,033 101,326,132 4,140,033 31 16 1,340,365 3,845,000 5,185,365 96,140,767 1,425 94 456 DEPARTMENT OF REVENUE Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Postage Motor Vehicle Tag Purchases County Tax Officials-ERSIFICA Investment for Modernization 58,418,964 5,439,372 1,366,540 240,946 410,048 2,886,194 1,035,134 11,497,440 3,261,370 3,721,810 2,404,350 3,422,795 Redirection Level Funds To Redirect Additions (21,000) (1,000) (1,897) (2,340,000) (550,000) (215,000) 6,182,668 Redirection Totals 58,397,964 5,438,372 1,366,540 240,946 410,048 2,886,194 1,033,237 9,157,440 2,711,370 3,506,810 2,404,350 3,422,795 6,182,668 Enhancements Total Funds Less Federal & Other Funds: Federal Funds Other Funds DOAS - Indirect Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 94,104,963 (3,128,897) 6,182,668 97,158,734 1,340,365 3,845,000 5,185,365 88,919,598 1,380 78 (3,128,897) 6,182,668 1,340,365 3,845,000 5,185,365 91,973,369 1,380 78 Totals 58,397,964 5,438,372 1,366,540 240,946 410,048 2,886,194 1,033,237 9,157,440 2,711,370 3,506,810 2,404,350 3,422,795 6,182,668 97,158,734 1,340,365 3,845,000 5,185,365 91,973,369 1,380 78 457 DEPARTMENT OF REVENUE F.Y.1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust for non-recurring expenditures: --Equipment purchases ($27,000), computer charges ($373,350), and regular operating expenses ($1,225). 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a change in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 5. Adjust computer charges to reflect systems improvements recommended as part of the "Blueprint for Modernization" in Additions. 91,872,904 529,405 (401,575) (24,532) (56,604) (3,000,000) ADJUSTED BASE 88,919,598 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reflect a rate reduction in DOAS computer charges ($1,500,000) and telecommunications data network charges ($130,000). 2. Reduce mainframe storage ($275,000) and other telecommunications costs ($420,000). 3. Reduce postage ($15,000) and computer charges ($545,000) relating to the intangible tax program repealed in the 1996 Legislative session. 4. Adjust various object classes based on projected expenditures. (1,630,000) (695,000) (560,000) (243,897) Total Funds to Redirect (3,128,897) ADDITIONS 1. The Governor recommends a total of $21,537,500 to implement the ftrst phase of the "Blueprint for Modernization". Of this total, $6,182,668 is recommended in F.Y. 1998 and $15,154,832 in the F.Y. 1997 Amended Budget for the following 12 projects: a. Systems Improvements--Plan and develop systems enhancements and invest in new system technologies. b. Call Center--Develop an agency-wide plan for a telephone call center to answer taxpayer inquiries and to improve the collection of unpaid taxes. c. Motor Vehicle Modernization--Address staggered tag legislation and coordinate with county motor vehicle offtces to develop a comprehensive system that integrates state and local vehicle tag and title systems (total recommended is $2,300,000---$1,397,332 in the F.Y. 1997 Amended Budget and $902,668 in F.Y. 1998). d. Modernization Management Unit--Establish a unit to spearhead the Blueprint for Modernization effort and assure that all improvement activities are integrated into a single comprehensive program ($192,000 in F.Y 1997 Amended). e. Sales Tax System--Complete the new system by July 1997 to assure accurate and efftcient processing of sales tax returns ($950,000 in F.Y. 1997 Amended). 5,000,000 280,000 902,668 F.Y. 1997 Amended F.Y. 1997 Amended 458 DEPARTMENT OF REVENUE--F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS f. Electronic Processing/Imaging--Provide for continued maintenance and leasing of existing equipment needed for income tax processing while the imaging system is phased in during 1997 ($220,000 in F.Y. 1997 Amended). g. Accounts Receivable--Use private collection agencies to collect older accounts receivable, reduce delinquent taxes, and enhance revenues. h. Compliance and Tax Policy Research--Create a research function to provide critical information for tax policy makers and those involved in taxpayer issues, economic development, planning, budgeting and other public activities. ($1,185,000 in F.Y. 1997 Amended. Ofthis amount, $700,000 should be allocated to the Office of Planning and Budget to enhance economic tax modeling systems to assist with tax policy and revenue decision making.) i. Integrated Tax Administration System--Develop and implement an action plan to assess and complete requests by Revenue stafffor systems ofthe Centralized Taxpayer Accounting and Centralized Taxpayer Registration systems ($1,538,000 in F.Y. 1997 Amended). j. Strategic Information Technology Planning--Create an information technology strategic plan and link it to the Department's overall strategic plan ($650,000 in F.Y. 1997 Amended). k. Quality Assurance--Establish a formal methodology for managing and developing information systems projects to assure proper oversight. This oversight function would reside outside the department ($675,000 in F.Y. 1997 Amended). 1. Year 2000--Initiate the process to correct computer systems that rely on date computations to handle four-digit year data fields ($8,347,500 in F.Y. 1997 Amended). F.Y. 1997 Amended Agency Funds F.Y. 1997 Amended F.Y. 1997 Amended F.Y. 1997 Amended F.Y. 1997 Amended F.Y. 1997 Amended Total Additions 6,182,668 TOTAL REDIRECTION LEVEL 91,973,369 TOTAL STATE FUNDS 91,973,369 459 DEPARTMENT OF REVENUE Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Departmental Administration 7,015,430 7,015,430 7,061,995 7,061,995 2. Internal Administration 11,260,392 11,110,392 11,113,501 10,963,501 3. Infonnation Systems 12,588,514 11,573,314 14,689,271 13,674,071 4. Field Services 16,314,072 16,174,072 16,165,129 16,025,129 5. Income Tax 8,087,629 7,787,629 8,069,275 7,769,275 6. Motor Vehicle 17,762,372 16,462,372 17,046,286 15,746,286 7. Tax Accounting 4,481,118 3,841,318 4,089,687 3,449,887 8. Central Audit 7,959,879 7,959,879 7,973,678 7,973,678 9. Alcohol and Tobacco 2,558,849 2,558,849 2,511,179 2,511,179 10. Property Tax 5,025,324 3,484,959 4,478,519 2,938,154 11. Sales and Use Tax 3,960,990 3,860,990 3,937,111 3,837,111 12. State Board of Equalization 43,700 43,700 23,103 23,103 TOTAL APPROPRIATIONS 97,058,269 91,872,904 97,158,734 91,973,369 RECOMMENDED APPROPRIATION: The Department of Revenue is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $91,973,369. 460 DEPARTMENT OF REVENUE Roles and Responsibilities The Department of Revenue is responsible for administering the state's tax laws and for the timely collection and processing of state revenues and taxes. Other duties include the registration and licensing of motor vehicles and the regulation oftobacco and alcoholic beverages. In a typical year, the Department of Revenue processes 15 million documents, maintains millions of taxpayer accounts and registers over six million motor vehicles. TAX ADMINISTRATION AND COLLECTION For the fiscal year ending June 30, 1996, the department collected a total of $9.94 billion in revenues. The major taxes and fees collected by the department are: Individual and Corporate Income Taxes. Sales and Use Taxes. Motor Fuel Taxes. Alcohol Beverage Taxes. Tobacco Taxes. Miscellaneous Taxes and Fees. The department also collects an additional one percent sales tax in Fulton and DeKalb Counties as a dedicated revenue for the construction and operation ofthe Metropolitan Atlanta Rapid Transit Authority (MARTA). In addition, the department also collects a one percent local option sales tax for various county governments, municipal governments and school districts. Other taxes collected by the department are the motor fuel tax, the tobacco tax and alcohol beverage taxes. MOTOR VEmCLE REGISTRATION AND LICENSING Every motor vehicle, trailer and truck tractor, with certain exceptions, must be registered through the appropriate county tag agent's office, which is the County Tax Commissioner or Tax Collector. The county tag agent also collects the ad valorem tax and processes applications for tags and/or renewal decals for motor vehicles. The Department of Revenue's Motor Vehicle Division issues and maintains the file system for titles and registrations of over six million vehicles in the state. REGULATION OF ALCOHOL AND TOBACCO The Department of Revenue enforces all laws and regulations concerning the manufacture, possession, transportation and sale of alcoholic beverages and cigarettes within the state. The department's Alcohol and Tobacco Division has the following duties: Enforces laws and regulations concerning alcohol and tobacco products and taxes. Inspects alcohol beverage licensees for compliance with state laws and regulations. Investigates all liquor license applicants. Confiscates contraband alcohol and tobacco products. Assists and coordinates law enforcement actions with other enforcement agencies. ORGANIZATION To accomplish its duties, the department has 11 divisions reporting to the State Revenue Commissioner. Each of the divisions has a role in the administration of tax laws and the collection of taxes and fees. The divisions are: Administrative Division. Internal Administration Division. Central Audit Division. Field Services Division. Information Systems Division. Motor Vehicles Division. Taxpayer Accounting Division. Income Tax Division. Alcohol and Tobacco Division. Property Tax Division. Sales and Use Tax Division. ATTACHED AGENCY The State Board of Equalization is attached to the Department ofRevenue for administrative purposes only. The Board provides for appointment and retention of hearing officers whose function is to hear and determine appeals by local governing authorities on issues relating to the disapproval of county digests by the Commissioner of Revenue. AUTHORITY Title 48 of the Official Code of Georgia Annotated. 461 DEPARTMENT OF REVENUE Strategies and Services The Department of Revenue is responsible for collecting $10 billion in taxes and processing over 15 million tax documents each year. State government depends on the department's ability to ensure that the proper amounts of taxes are paid and collected. Recognizing the importance of the department's functions, the Governor authorized an extensive study of the department's operations in F.Y. 1997. The result of this analysis is the "Blueprint for Modernization", a plan to modernize the department's management and computer systems. To begin implementing the fIrst phase of this plan, the Governor has recommended a total of $21,337,500. Of this amount, $15,154,832 is recommended in the F.Y. 1997 Amended Budget and $6,182,668 in F.Y.1998. MODERNIZATION The "Blueprint for Modernization" outlines the steps that must be taken to improve the effIciency and effectiveness of the department. The Governor supports the report's call for innovative management approaches, new and upgraded technologies, and a better prepared workforce. The department must have the tools to do the following: provide accurate, fair and costeffective administration of the state's tax, tag and title laws; furnish individuals and businesses with prompt, courteous service; process all transactions for state and local governments in a businesslike and timely manner; and ensure that all automated and manual systems contain adequate audit trails, balancing controls and other appropriate internal controls. Implementing the recommendations made in the "Blueprint for Modernization" will result in improved customer service, effIcient operations, and increased performance and accountability. RETURNS PROCESSING The Department of Revenue receives and processes millions of tax returns and payments from individuals and businesses. In F.Y. 1996, the department processed 3.2 million manpower requirements, provide convenient service and improve effIciency and reduce errors. Processing returns that are submitted electronically is the most cost-effective and effIcient manner. The study found F.Y. 1996 Monthly Volume of Returns 1,200,000 1,000,000 800,000 :... 600,000 :...: 1 I.Ij~ i l 400,000 .I.ul.u. i . 200,000 i'[; .~ q.~ m;~. :::\~ iii .~ ::~--'-r'--'--,l/-\. l ..-Lf----L-TLJ Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Joo individual tax returns, 200,000 that the cost of processing returns corporate returns, 1.4 million manually is 1.5 times greater than withholding returns, and 1.5 million processing returns fIled electronically. sales tax returns. The goal of department is to focus on Currently, the department processes increasing the number of returns fIled these documents in a labor and paper electronically in the long term while intensive manner. InF.Y. 1996, the department processed 96% of tax returns using manual data entry and only 4% were Cost to Process Returns fIled electronically. Data entry is performed primarily by full and part- Electronic Filing -: time temporary workers. The department has begun to develop and implement information technology initiatives designed to streamline Manual Data Entry -.. $3.26 and increase the automation of the returns process. Two of these initiatives are imaging and electronic fIling. These efforts will reduce current and future 462 DEPARTMENT OF REVENUE -- Strategies and Services using imaging technology to process returns in the short term. IMAGING The department initiated a project to develop an imaging system for tax processing in F.Y. 1997. The new system works by capturing an image of a tax return, check and enclosures as they are received. The images are stored as permanent documents and data is extracted to update the tax data files. This new process reduces the paper handling steps from 15 to 6 steps, reduces data entry and storage requirements, and eliminates microfilmin g expenses. Finally, streamlining the department's tax processing operations will result in taxpayers receiving their tax refunds in two weeks versus an average of 45 days now. JOINT ELECTRONIC FILING The department has joined 32 other states participating in the Joint Electronic Filing Program in cooperation with the Internal Revenue Service. In 1995, the department conducted a successful pilot project to accept electronic filing of its employees' state income tax returns. In 1996, the program was expanded to full year residents with refund returns. The program was successful and 267,000 taxpayers were able file their state income tax information electronically. In 1997, the program is expected to attract even more participants. The department benefits because electronic filing eliminates the need to manually handle the return, reduces errors, and improves processing times. The taxpayer benefits because the department is able to issue refunds faster. INTEGRATED TAX SYSTEMS In previous years, each of the department's tax systems operated independently although, in many instances, they were dealing with the Breakdown of Tax Returns by Processing Method - 1996 Electronic Filing 4% Data Entry 96% Projected Breakdown of Tax Returns by Processing Method - 2000 Electronic Filing 34% Imaging 46% same taxpayers. These various tax systems shared little, if any, information even though the data gathered concerning the taxpayer and the methods for processing this data were similar. Operating independent systems resulted III inconsistent information being retained by the department, hampered the delinquent tax collection effort, and allowed refunds to go to taxpayers who had liabilities in other tax types. The department is working towards the integration of all tax systems into a comprehensive computer system. So far, the Centralized Taxpayers Registration (CTR) and the Centralized Taxpayer Accounting (CTA) systems have been completed. The CTR system contains name, address, and registration information for every individual taxpayers, as well as every business taxpayer in the state. The CTR system provides a single point of contact for businesses to register for taxes. The CTA application consolidates all refund and assessment information for a taxpayer in a single data base. The department is able to offset taxes owed in one tax area against refunds due in another area. The CTA system accounts for all potential and real liabilities due to the State for ail taxes, and records and issues all refunds and credit notices. The CTA system also creates all accounts receivable and accounts payable notices and delinquent notices. 463 DEPARTMENT OF REVENUE Results-Based Budgeting Program Summaries TAX PROCESSING, COLLECTIONS AND COMPLIANCE PURPOSE: Collect all taxes due to the State of Georgia in a prompt and equitable manner. GOALS Administer the state's tax laws in an accurate, fair and cost-effective manner. Furnish individuals, businesses, and other government agencies with prompt, courteous service. Assist taxpayers in complying with Georgia tax laws. Review and modernize procedures and systems to ensure adequate audit trails, balancing controls and internal controls are in place. MOTOR VEHICLE TAG AND TITLE SERVICE PURPOSE: Process and issue tags and titles to eligible vehicle owners according to the laws ofthe State of Georgia. GOALS Provide a certificate of title, if applicable, to all motor vehicles and mobile homes owned and operated in Georgia. Provide a motor vehicle registration to all motor vehicles owned, rented, or leased and operated in Georgia. Cooperate with county governments and make this information available to appropriate government entities. 464 DEPARTMENT OF REVENUE -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Tax Processing, Collection & Compliance 2. Motor Vehicle Tag and Title Processing TOTAL PASS-THROUGH FUNDING 1. County Tax Officials Employer Contribution F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 75,031,345 18,604,129 93,635,474 71,145,980 17,304,129 88,450,109 75,847,896 17,888,043 93,735,939 71,962,531 16,588,043 88,550,574 3,422,795 3,422,795 3,422,795 3,422,795 TOTAL APPROPRlATIONS 97,058,269 91,872,904 97,158,734 91,973,369 465 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 I OFFICE OF SECRETARY OF STATE Total Budgeted Positions as of October 1, 1996 -- 364 State Ethics Commission Drugs and Narcotics Agency Real Estate Commission Holocaust Commission Attached for Adminis6 trative Purposes Only 16 31 2 Secretary of State 1 Secretary of State Chief Operations Officer 1 Administration Division 35 Performs the following administrative services for the Office and administrative attachments: budgeting, accounting, procurement, data processing, personnel, centralized supply warehouse, mail distribution...administers the Administrative Procedures Act...administers the Notary Public Act and provides support services to the Claims Advisory Board... administers Fair and Open Grants Act. .. administers Special Services and Trademarks/Service of Process...administers the Charitable Organizations Act. I Archives and History Division 59 Administers Georgia Records Act through: state and local records planning, archival depository, records center... administers archives enabling legislation through: research libraries, non-governmental records promotion... 'administers facilities: Ben W, Fortson, Jf. Archives and Records Building, State Records Center, Hodgston Hall (Georgia Historical Society, Savannah), I Business Service and Regulation Division 65 Administers the corporation code as it relates to corporations chartered in Georgia, out-of-state corporations conducting business in Georgia and non-profit corporations... administers the Georgia Securities Act and the Georgia Commodities Code .. .issues licenses for securities brokers and salesmen ...registers securities offered for sale in Georgia...regulates cemeteries...regulates land sales...regulates investment advisors. I Examining Boards Division 160 Examines, regulates and certifies a wide range of professional and occupational agencies and practitioners for the protection of Georgia citizens...provides administrative and investigative services to state examining boards, I Elections Division 23 Administers the Georgia Election Code and the Municipal Election Code ., .administers commissions to Georgia's highest ranking officials...administers National Voters Registration Act. 467 I Front Office 20 Performs administrative tasks...provides day-to-day logistical assistance...coordinates press, research and public relations activities... coordinates and supervises: publications, museum, tours and special events, small business task force. OFFICE OF SECRETARY OF STATE Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Election Expense Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 17,724,946 3,797,880 264,142 188,747 292,182 2,532,736 1,454,969 2,752,725 577,971 598,274 30,184,572 F.Y.1996 Expenditures 17,678,171 4,914,274 266,893 144,317 72,520 2,624,084 1,961,552 3,171,022 904,454 882,370 32,619,657 F.Y.1997 Current Budget 19,232,507 3,648,636 257,000 110,050 129,821 2,627,546 1,418,106 2,956,732 981,415 485,000 31,846,813 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 19,061,377 3,332,088 254,500 203,069 103,121 2,567,546 1,828,873 3,229,535 897,605 485,000 31,962,714 19,061,377 3,332,088 254,500 203,069 103,121 2,567,546 1,828,873 3,229,535 897,605 485,000 31,962,714 78,549 1,741,092 9,600 1,829,241 28,355,331 423 95 70,581 2,424,490 38,900 2,533,971 30,085,686 425 96 1,045,000 54,865 1,099,865 30,746,948 419 96 1,045,000 1,045,000 30,917,714 415 96 1,045,000 1,045,000 30,917,714 415 96 468 OFFICE OF SECRETARY OF STATE Financial Summary F.Y.1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Election Expense Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 19,139,610 3,601,036 257,000 112,050 128,821 2,627,546 1,417,356 2,955,635 981,859 485,000 31,705,913 1,045,000 1,045,000 30,660,913 419 96 Redirection Level Funds To Redirect Additions (611,734) (513,391) (2,500) (25,700) (60,000) (6,250) (46,159) (90,726) 158,158 182,134 91,019 417,767 101,000 4,472 (1,356,460) 954,550 (1,356,460) (11) (1) 954,550 3 2 Redirection Totals 18,686,034 3,269,779 254,500 203,069 103,121 2,567,546 1,828,873 3,010,476 895,605 485,000 31,304,003 Enhancements 1,045,000 1,045,000 30,259,003 411 97 Totals 18,686,034 3,269,779 254,500 203,069 103,121 2,567,546 1,828,873 3,010,476 895,605 485,000 31,304,003 1,045,000 1,045,000 30,259,003 411 97 469 OFFICE OF SECRETARY OF STATE F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost of the F.Y. 1997 salary adjustment. 2. Adjust personal services. 3. Reflect a decrease in agency self-insurance rates. 4. Reflect a decrease in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. 30,746,948 161,631 (236,896) (6,752) (4,018) ADJUSTED BASE 30,660,913 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Privatize through contract the operation of the Georgia Historical Society - The Savannah Branch, including the elimination of three positions and operating expenses. 2. Eliminate the notary public section including one position and operating costs. 3. Suspend the payment for postage on precinct cards sent to the voters. 4. Modify the auditing procedure for cemetery trust accounts (-$114,615, two positions and one vehicle); automate the phone system (-$64,000, two positions); and change the process for processing lawsuit filings (-$24,400). 5. Change the State Examining Boards examination contract, reallocate three inspectors, and reduce operating expenses. 6. Redirect operating expenses from Drugs and Narcotics and Ethics Commission. (240,749) (100,406) (218,019) (203,015) (529,986) (64,285) Total Funds to Redirect (1,356,460) ADDITIONS 1. Fund the contract for the privatization of the Georgia Historical Society - The Savannah Branch. 2. Provide for additional funding for operating expenses and the handling of medical board cases with Special Assistant Attorney Generals. 3. Increase computer charges for the statewide voter registration system. 4. Reassign two investigators and one vehicle to perform mandated investigations of investment advisors. 5. Add one position to Drugs and Narcotics to handle increasing caseload ($45,000), one vehicle to Elections Division - Investigation Section ($18,019) and operating expenses to cover shortages in the Ethics Commission ($19,285). 6. Provide for the restoration of portraits and flags in the Capitol Museum. 205,645 451,986 100,000 114,615 82,304 See Bonds Total Additions 954,550 TOTAL REDIRECTION LEVEL 30,259,003 TOTAL STATE FUNDS 30,259,003 470 OFFICE OF SECRETARY OF STATE Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Internal Administration 3,882,361 3,852,361 3,782,246 3,752,246 2. Archives and Records 4,748,551 4,673,551 4,690,067 4,615,067 3. Business Services and Regulation 4,518,188 3,748,188 4,386,891 3,616,891 4. Elections and Campaign Disclosure 4,371,524 4,351,524 4,255,058 4,235,058 5. Drugs and Narcotics 1,159,699 1,159,699 1,170,047 1,170,047 6. State Ethics Commission 437,541 382,676 386,391 386,391 7. State Examining Boards 10,446,875 10,296,875 10,346,067 10,196,067 8. Georgia Commission on the Holocaust 96,253 96,253 97,861 97,861 9. Real Estate Commission 2,185,821 2,185,821 2,189,375 2,189,375 TOTAL APPROPRIATIONS 31,846,813 30,746,948 31,304,003 30,259,003 RECOMMENDED APPROPRIATION: The Office of Secretary of State is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $30,259,003. 471 OFFICE OF SECRETARY OF STATE Roles and Responsibilities The Office of the Secretary of State provides many services for city and county governments, state agencies, businesses and the general public. These services range from: License Issuance. Election and Business Activity Monitoring. Management of Public Records. The Secretary of State, an elected official, serves in ex offico position; is responsible for delivery of service; and is the keeper of the Great Seal of Georgia and the custodian of the state flag. Through newsletters and pamphlets, the office is the main source of information on Georgia history, law, government, officials, elections, and other subjects. In order to provide these services, the office is composed of six divisions and three attached agencies. The five divisions are: Internal Administration, Archives and History, Elections and Campaign Disclosure, Business Services and Regulations, Holocaust Commission and State Examining Boards. The attached agencies are: Georgia Drugs and Narcotics Agency, State Ethics Commission and the Georgia Real Estate Commission. LICENSE ISSUANCE Within the State of Georgia, the Office of Secretary of State regulates many entities. As a regulatory agency, the office offers education and examinations, issues licenses, collects fees for licenses, investigates complaints or violations of the law and orders reprimands. Business Services and Regulations Division (BS&R) is responsible for regulating securities and corporations. The division has the authority, through the Georgia Securities Act, to adopt necessary rules to monitor the securities industry, including registration of brokers and securities. Within securities, the division registers cemeteries and audits perpetual care trusts. For corporations, the Division regulates foreign and domestic charters, nonprofit organizations and other types of activities. BS&R also registers and renews trademarks and servicemarks. The State Examining Board manages 35 occupational and professional licensing boards. The duties include keeping records, receiving and issuing licenses and scheduling examinations, and investigating violations. The Real Estate Commission is divided into two sections: the commission and the Georgia Real Estate Appraisers Board. The commission regulates real estate brokers and salespersons. The commission also provides administrative support for the board which administers the Real Estate Appraiser Licensing and Certification Act. ELECTION AND BUSINESS ACTIVITY MONITORING The Office of the Secretary of State monitors all activity related to officials and elections, including registration and investigation. The State Ethics Commission is granted the authority to administer the Ethics in Government Act to ensure integrity of the democratic process. As part of the requirements, lobbyists and officials are mandated to submit fmancial and expenditure disclosure statements. The main function of the Elections Division is to perform all activities related to federal, state, county and municipal elections and campaign and fmancial disclosure, including authorization of election results. Another duty of the Office of Secretary of State is to enforce the law as it relates to controlled substances, poisons, and the sale and distribution of these drugs by licensed registrants. The Georgia Drugs and Narcotics Agency, in conjunction with the Board of Pharmacy performs inspections and investigations of these registrants. The agency is also responsible for the destruction of expired and outdated controlled substances. MANAGEMENT OF PUBLIC RECORDS Under the law, Secretary of State is responsible for public records. Within the Internal Administration Division, records are filed on grants, maps and surveys, agency rules and regulations of administration, laws, claims against the state and plats of land. As part of records management, these records are available to the public through published reports or books, such as the Georgia Code. The Division also provides tours ofthe Capitol and maintains the State Museum of Science and Technology. The Archives Division is the major force for records management. The division is charged to preserve, protect and make available state and local records, act as an archival and records depository, and encourage research of state's history. AUTHORITY Titles 10, 14,21,28,43,44,45 of the Official Code of Georgia; Public Law 93-443, 1993; Resolution Act 11, Georgia Laws 1993. 472 OFFICE OF SECRETARY OF STATE Strategies and Services Since the Office of Secretary of State primarily provides services, the office faces significant challenges in enhancing the quality of service to the Georgia public. The management staff has confronted this challenge and is using the strategic planning process to make changes to its operation. Technology will help the office in enhancing its service delivery. INFORMATION TECHNOLOGY The computer systems and business procedures in the Office of Secretary of State are being evaluated. The evaluation will allow the agency to set its future direction in the management of information with regards to new technology, data distribution, and document imaging. Existing systems and business procedures will be evaluated to determine how their functionality can be improved to lower costs and improve performance. Many separate systems have been built for the office by separate teams. The office is converting those systems so that there is a cohesiveness throughout the computer system. Through the integration of the systems, the office will be able to : o Provide prompt service. o Transmit an accurate response to external users such as governmental agencies and public. o Allow electronic access and filings to the systems by the public. o Accept electronic payments for fees and fines. NATIONAL VOTER REGISTRATION ACT In 1993, Congress passed the National Voter Registration Act to address perceived problems in the election system of the United States. Implementation of the Act occurred in January 1, 1995. The main focus ofthe Act is registering people to vote. The Act specifies methods of how and where a voter registers, besides administrative procedural changes, such as record keeping and voter file maintenance. The types of registration opportunities are "Motor Voter", agency based and mail-in registration. requirements on the state and the paperwork involved with some of the current processes. Due to the Registration Act, Georgia's Registered Voters 1984 - 1996 Voting-Age Populations Votes Cast Registered Voters 6,000,000 ----,--.----,--,--------,--,--------,-----,-----,.----,--,--------,--,--------,----, 5,000,000 -+--I---+--+--+-+---+--+------1r- 4,000,000 3,000,000 2,000,000 1,000,000 o 1984 1986 1988 1990 1992 1994 1996 Motor Voter allows voters who are either renewing their license or applying for their license to register to vote simultaneously. Agency based registering occurs at service delivery outlet, such as public assistance offices or libraries. For mail-in registering, voters are able to mail in registrations or changes of address. The Office Secretary of State has implemented the National Voter Registration Act. All counties have computers and are on-line; they communicate with the state mainframe by either downloading information from the state or providing information to the state from the local level. The Office of Secretary of State is enhancing the system to allow more local and public access to reduce the Georgia has 807,757 new registrants; contrasting the 85,000 Georgians who registered to vote in 1994. For the 1996 presidential election, Georgia had registered 3.8 million voters. CORPORATIONS Under Title 14 ofthe Official Code of Georgia Annotated, the Office of Secretary of State is the filing depository for articles of incorporation and other corporate filings. The Corporations Division of the office maintains documents on the existence and structure of foreign corporations, limited partnerships, foreign limited liability partnerships and limited liability companies conducting business in Georgia. Each year corporations file an annual registration updating their 473 OFFICE OF SECRETARY OF STATE -- Strategies and Services company's infonnation. Infonnation on licenses and pennits should be obtained companies is available from the by individuals and businesses Corporations Division. In October of beginning operations in -our state." The 1996, 2,349 new corporations were center won an U.S. Small Business fonned while 99 were dissolved and 43 Administration National Award for merged.- Excellence for a State Government In order for a business to be Initiative Supporting Small Business incorporated in the State of Georgia, Development. business owners have to file documents with several different state agencies. In PRIVATIZATION OF order to facilitate this process, the THE GEORGIA HISTORICAL SOCIETY - SAVANNAH BRANCH DEPOSITORY The Georgia New Georgia Corporations Historical Society proposes to privatize the Savannah Branch Depository, Georgia Department of Archives, which is located in 2,000 Hodgson Hall, the Society's statewide headquarters in Savannah. The privatization will join 1,500 ---J6'~~~-'-"''i'~~'-'-'-'''-'~-'-' Oct95 Dec Feb96 Apr Jun Aug Oct Corporate Dissolutions the depository and the Georgia Historical Society so that the management of the depository is completely under the society. The goal of the 140 privatization is to have a 120 more efficiently run 100 operation and expand 80 services for the people of 60 Georgia. 40 The Georgia General 20 o---J6'~,"-,,,,,,~,,,,,""~"'-T----------"------'--T;-;;-;----( Assembly in 1839 established the Georgia Oct95 Dec Feb96 Apr Jun Aug Oct Historical Society, which is a private, non profit organization which serves as the historical society for the State of Georgia. In Office of Secretary of State has 1966, the Legislature designated the established the First Stop Business Georgia Historical Society a Branch Information Center. This center Depository of the Department of publishes an infonnation packet which Archives and History. The society's includes all the necessary paperwork mission is to collect, preserve, and that needs to be filed to start a new share the history of Georgia by offering business. The mission statement of the a monthly lecture series; publishing center is: "to promote small business books, a quarterly newsletter, and The development by offering a central Georgia Historical Quarterly; offering location for advice about which technical assistance and guidance; sponsoring tours to historic sites, conferences, and workshops on the care of records and documents; and by actively collecting and preserving historical resources and materials. By consolidating the management of the depository under the Historical Society, the services provided to the public will be more efficient and a cost savings to the state. REAL ESTATE COMMISSION The Georgia Real Estate Commission is the primary agency for licensing and regulating the real estate brokerage profession and administering support for the Georgia Real Estate Appraisers Board. In order to service its licensees more efficiently, the Commission is working on several projects. In the future the public and licensees will be able to file application through their fax service. In addition, the commission has a web site with available newsletters, applications and status infonnation. A visitor to the site will be able to print applications and licensing requirements. Another service feature, beginning January, 1997, is instant grading of prelicense examinees. Tests will be given via a computer, and the licensee will receive their results the day of the examination. If this project is successful, the commission plans to offer applicants the option of receiving their licenses at the test centers the same day they successfully complete the licensing examination. CURRENT DATABASE Brokerage Licensees Brokerage Firms Appraisers Approved Schools Approved Instructors Approved Courses 108,152 18,018 5,428 453 405 4,711 474 OFFICE OF SECRETARY OF STATE Results-Based Budgeting Program Summaries ELECTIONS AND STATE ETHICS PURPOSE: Oversee the disclosure requirements for campaign finances, public officials and lobbyists, and vendor gifts. Conduct elections, file campaign and personal financial disclosure reports, maintain records on elected and appointed officials, and administer the statewide voter registration system. GOALS Conduct fair and impartial elections. Maintain campaign and personal [mancial disclosure reports and statements. Retain accurate and current records on elected and appointed officials. Maintain a statewide voter registration system. Offer clear and simple instructions for complying with the law. Increase the number of timely filing by candidates, public officials, lobbyists and vendors. INFORMATION SERVICES - ARCHIVES PURPOSE: The purpose of the Department of Archives and History is to select and ensure the survival, preservation, and accessibility of information compromising Georgia's recorded history. GOALS Establish, through the State Records Committee, a proactive state records management program. Serve as a model for state, county, and local government administrators. Secure and maintain records of enduring value and ensure ready access for citizens and government users to information and records stored in the state's archives, record centers, and branch depositories. Coordinate the activities of the Georgia Historical Records Advisory Board and administer the statewide plan for historic records in Georgia. Prepare to meet the challenges of the electronic records environment. BUSINESS SERVICES PURPOSE: File, examine and maintain documents filed under Title 14 and provide public access to documents and business entity information. GOALS Examine documents for compliance with code in a timely manner. Maintain records in a reproducible form for public access. Assist citizens in complying with requirements for the formation of a business in Georgia. 475 OFFICE OF SECRETARY OF STATE -- Results-Based Budgeting REGULATIONIENFORCEMENT -- SECURITIES, PROFESSIONAL BOARDS, PHARMACEUTICAL DISTRIBUTION PURPOSE: Protect the health, safety and welfare of the public through the regulation of various professions/occupations and enforcement of pharmaceutical distribution laws, Georgia Securities Act, Georgia Charitable Solicitation Act, and Georgia Cemetery Act, GOALS Ensure securities are offered to the public pursuant to proper registration and disclosure requirements. Ensure perpetual care cemetery trust escrow funds are maintained and funded properly. Ensure that charitable organizations and paid solicitors are in compliance with the laws. Investigate complaints and discipline persons who violate the state law and board rules and regulations. Inspect certain businesses to ensure compliance with state law and board rules and regulations. OCCUPATIONAL CERTIFICATION PURPOSE: Responsible for licensing individuals that are employed in various occupations in the state. GOAL Ensure that licenses are issued to individuals and companies which meet minimum requirements as established by state law and board rules and regulations. GENERAL SERVICES PURPOSE: Provide tours of the Capitol, print informative publications, maintain the state museum, act as keeper of the Great Seal of the State, and retain the original acts passed by the General Assembly. GOAL Put in place a comprehensive program to strengthen public awareness ofthe operations and responsibilities of the Office of Secretary of State. REAL ESTATE COMMISSION PURPOSE: Regulate real estate brokerage and real estate appraisal activities in the State of Georgia through licensing of practitioners. GOALS Assure cost efficient administration, high quality and fairness in all qualifying examinations. Provide timely responses to all applications and informal and written inquiries from practitioners and the public. Assure quality educational offerings for practitioners. Provide timely and fair response to requests for investigation. Disseminate timely information to practitioners about law and rule changes and other standards and methods of practice. 476 OFFICE OF SECRETARY OF STATE -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS AGENCY PROGRAMS TOTAL STATE 1. Elections and State Ethics 2. Information Services - Archives 3. Business Services 4,973,926 4,918,235 2,769,668 4,899,061 4,843,235 2,049,668 4. Regulation/Enforcement - Securities, Professional Boards, Pharmaceutical Distribution 5,198,308 5,148,308 5. Occupational Certfication 6. General Services 7. Real Estate Commission TOTAL APPROPRIATIONS 9,228,417 2,474,945 2,283,314 31,846,813 9,078,417 2,444,945 2,283,314 30,746,948 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 4,916,125 4,848,308 2,727,521 5,104,355 4,896,125 4,773,308 2,007,521 5,054,355 9,040,370 2,381,550 2,285,774 31,304,003 8,890,370 2,351,550 2,285,774 30,259,003 477 STATE SOIL AND WATER CONSERVATION COMMISSION Total Budgeted Positions as of October 1, 1996 -- 26 State Soil and Water Conservation Commission Executive Director 2 I Administration and Support Division 8 Provides accounting, administration and clerical services... provides support to district programs in erosion control and pollution matters. I District Programs Division 16 Coordinates administrative assistance to the state's soil and water conservation districts...provides technical assistance to local governments and districts in erosion and sediment control. 478 STATE SOIL AND WATER CONSERVATION COMMISSION RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 INCREASE OVERF.Y. 1997 BUDGET REDIRECTION LEVEL $2,135,159 $12,686 $2,135,159 HIGHLIGHTS $75,651 is redirected from the County Conservation Grant Program to help support the Resource Specialist Program. The commission was directed in 1996 to begin phase out of the County Conservation Grant Program after it was determined that it had met all specified goals and objectives. The Governor recommends a F.Y. 1998 funding level of$221,349 and 20 positions. $131,413 to fund two positions and related expenses for the Resource Specialist Program. The specialists will provide the commission's regional representatives with the technical support needed to address the state's erosion and sediment control problems. In F.Y. 1997, the commission received funding to initiate the program with two resource specialists in the Rome and Milledgeville Regional Offices. For F.Y. 1998, these specialists will be placed in the commission's Athens and Statesboro Regional Offices. $1,495,000 in bonds for major structural repairs ofthe state's Category 1 dams most in need of upgrades. These repairs include installing concrete chutes or armor plating on the top of the dams with cellular concrete mats. In F.Y. 1996, $2,345,000 in bonds was provided for major maintenance oftwo watershed dams - one in Dawson County and one in Bartow County. An additional $200,000 in cash is in the budget for minor maintenance and repairs of 60 Category 1 dams. 3,500,000 SOIL EROSION CONTROL MEASURES Tons of Soil Conserved (in acres) 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 +---+----'------+----'------f----'------,L---~-__f"---_! FY92 FY93 FY94 FY95 FY96 479 STATE SOIL AND WATER CONSERVATION COMMISSION Financial Summary Expenditures, Current Budget and Agency Requests , Budget Classes/Fund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications County Conservation Grants Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y.1995 Expenditures 980,626 324,486 35,080 38,195 12,1l4 80,442 333,535 11,845 18,532 374,903 2,209,758 F.Y.1996 Expenditures 1,003,668 340,443 35,724 26,943 10,073 89,463 488,071 16,509 19,081 301,756 2,331,732 F.Y.1997 Current Bud~et 1,150,400 209,454 43,268 25,322 10,970 91,563 797,015 12,045 20,773 297,000 2,657,810 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 1,260,600 245,416 39,668 27,068 1l,094 93,143 555,845 19,400 21,140 224,000 2,497,374 5,950 1,495,134 22,176 20,136 1,543,396 1,260,600 251,366 39,668 27,068 1l,094 93,143 2,050,979 41,576 41,276 224,000 4,040,770 364,441 6,200 370,641 1,839,117 24 8 315,948 315,948 2,015,784 24 10 535,337 535,337 2,122,473 26 12 362,700 362,700 2,134,674 28 14 1,543,396 362,700 362,700 3,678,070 28 14 480 STATE SOIL AND WATER CONSERVATION COMMISSION Financial Summary F.Y.1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications County Conservation Grants Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles Adjusted Base 1,190,000 237,854 40,968 25,322 10,970 91,563 561,715 24,345 20,773 297,000 2,500,510 362,700 362,700 2,137,810 26 12 Redirection Level Funds To Redirect Additions (729) (13,806) (5,900) (25,322) (80) (770) (5,870) (4,945) (991) (75,651) 74,465 21,368 4,600 27,068 204 2,350 1,358 (134,064) 131,413 (134,064) 131,413 2 2 Redirection Totals 1,263,736 245,416 39,668 27,068 11,094 93,143 555,845 19,400 21,140 221,349 2,497,859 Enhancements 362,700 362,700 2,135,159 28 14 Totals 1,263,736 245,416 39,668 27,068 11,094 93,143 555,845 19,400 21,140 221,349 2,497,859 362,700 362,700 2,135,159 28 14 481 STATE SOIL AND WATER CONSERVATION COMMISSION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost ofthe F.Y. 1997 salary adjustment. 2. Reflect a decrease in agency self-insurance rates. 3. Reflect an increase in the merit system position assessment due to the policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. ADJUSTED BASE 2,122,473 12,201 (472) 3,608 2,137,810 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce liability rates in personal services. 2. Reflect a reduction in liability rates ($12,426) and regular operating expenses ($1,380). 3. Decrease the motor vehicle purchases object class. 4. Reduce the cost of conducting federal fmancial audits. 5. Reduce various object classes including computer charges ($4,945), travel ($5,900), real estate rentals ($770), telecommunications ($991), and equipment ($80). 6. Eliminate five positions as part of the continuing phase out of the County Conservation Grant Program. This reduces the program to 20 positions and $221,349. Total Funds to Redirect ADDITIONS 1. Fund two positions and related expenses for second year funding of the Resource Specialist Program. The positions will be located in two of the commission's six regional offices. Total Additions TOTAL REDIRECTION LEVEL ENHANCEMENT FUNDS (729) (13,806) (25,322) (5,870) (12,686) (75,651) (134,064) 131,413 131,413 2,135,159 CAPITAL OUTLAY 1. Provide $1,495,000 for structural repairs and upgrades for high priority Category 1 dams which are the responsibility of the state's soil and water conservation districts. TOTAL ENHANCEMENT FUNDS See G.O. Bonds o TOTAL STATE FUNDS 2,135,159 482 STATE SOIL AND WATER CONSERVATION COMMISSION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS TOTAL STATE TOTAL STATE 1. Commission and District Administration 781,949 682,612 873,925 702,415 2. District and Regional Office Operations 1,875,861 1,439,861 1,623,934 1,432,744 TOTAL APPROPRIATIONS 2,657,810 2,122,473 2,497,859 2,135,159 RECOMMENDED APPROPRIATION: The State Soil and Water Conservation Commission is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $2,135,159. EROSION AND SEDIMENT CONfROL PLANS REVIEWED 8,357 f-FY94 FY95 FY96 FY97 Budgeted FY98 Recommended 483 STATE SOIL AND WATER CONSERVATION COMMISSION Roles and Responsibilities The State Soil and Water Conservation Commission was established to ensure that Georgia's soil and water resources are protected. The commission's primary responsibilities include: Qverseeing the administration ofthe commission. Coordinating Georgia's 40 Soil and Water Conservation Districts. Providing educational programs on the conservation of state soil and water resources. Developing and implementing conservation programs. Reviewing and approving watershed projects under the Watershed Protection and Flood Prevention Act. Assisting and guiding districts and other entities with provisions under the Erosion and Sedimentation Act of 1975. Providing information on the prevention of agricultual non-point pollution. In 1996, the commission was successful in preventing the erosion of 2.4 million tons of soil through its conservation programs. Additionally, 8,357 erosion and control plans were reviewed under the Erosion and Sedimentation Act of 1975 and 533,455 acres ofGeorgia land received conservation treatment. The commision itself is comprised of five members (one of whom is designated chairman). The members are appointed by the Governor to five-year terms. Members act in an advisory capacity to guide and direct commission activities. The commission has two divisions: COMMISSION AND DISTRICT ADMINISTRATION The division is responsible for ensuring that the policies and programs ofthe commission are carried out. This includes providing administrative, clerical and limited technical support to the 40 State Conservation Districts and their 370 district supervisors. DISTRICT REGIONAL AND OFFICE OPERATIONS The division is primarily responsible for providing field support to districts; providing technical assistance to landowners and governmental units; reviewing erosion and sediment control plans submitted for land disturbing activities; and assisting groups and individuals in urban and rural settings in applying conservation practices. The division also provides demonstration projects, tours and seminars on recycling, composting, agricultural non-point pollution and other conservation practices. AUTHORITY Title 2 ofthe Official Code of Georgia Annotated. 484 STATE SOIL AND WATER CONSERVATION COMMISSION Strategies and Services ~ Georgia's total = - .area is about 37.7 million total acres36.7 million acres of land and about one million acres of water. The programs and services provided by the Soil and Water Conservation Commission help protect these valuable resources. Urban development, increased rural development and concern for the environment make the conservation of state natural resources necessary. Developing and implementing conservation practices are the basis for most ofthe commission's programs and services which include providing assistance to landowners and local governments, reviewing erosion control plans and protecting soil using resource management systems. As the federal government decreases support to landowners for soil and water conservation services, the state has sought and will continue to seek means to provide these services in a cost effective manner. For F.Y. 1998, the Resource Specialist Program focuses on providing these services. For the long term, this approach should provide a better distribution of service throughout the state than the County Conservation Grant Program. RESOURCE SPECIALIST PROGRAM In F.Y. 1997, two resource specialists were funded to assist with conservation work in the commission's Rome and Milledgeville regional offices. For F.Y. 1998, the Governor has recommended funding for phase two of the Resource Specialist Program. Two additional specialists will be placed in the commission's Athens and Statesboro regional offices. These four specialists will review erosion and sediment control plans, respond to erosion and sediment control complaints, assist with implementing waste management plans and provide other needed technical support to the regional representatives. Funding for the Resource Specialist Program comes from the redirection of funds in the County Conservation Grant Program. Established in 1987 to help federal farm aid recipients meet the requirements ofthe 1985 Food Security Act, the program successfully met all the original goals by 1995. The F.Y. 1998 funding level for the County Conservation Grant Program is $221,349 and covers the costs for 20 positions. The County Conservation Grant Program will continue to be scaled down as vacancies occur, but it will still provide valuable support to those involved in soil and water conservation until the Resource Specialist Program is fully phased-in at all commission regional offices. WATERSHEDS Watershed dams halt flooding, prevent soil erosion and improve water quality over an entire drainage unit. Their size can be several hundred acres to many square miles. Georgia's watersheds were built under the federal small watershed program. After their completion, the federal government relinquished responsibility for the watersheds to the soil and water conservation districts. Districts serve as sponsors or co-sponsors of 354 watersheds and are responsible for their operation and maintenance. The commission reviews and approves watershed project applications under the federal Watershed Protection and Flood Prevention Act. The act provides for the development of multipurpose projects aimed at flood control and sediment reduction. Upon approval, the commission establishes priorities for each project. Watershed projects serve as experimental stations for evaluating the effectiveness of best management practices. One successful activity is the Piedmont Lagoon Maintenance and Waste Utilization Project. This project involves two dairy farms in Greene and Oglethorpe County. The project's objectives are to improve the water quality leaving the farms, to demonstrate the proper utilization and management of nutrients in animal waste to produce forages for farm operations and to determine the quality of surface and groundwater when drainage collection techniques are employed under loafing areas where dairy cattle are confined. In F.Y. 1996, $2,345,000 in G.O. bonds were appropriated for major structural upgrades to two priority Category 1 watershed dams sponsored by local governments or soil and water conservation districts. For F.Y. 1998, the Governor is recommending $1,495,000 in G.O. bonds for continued upgrades to Category 1 watershed dams. EROSION AND SEDIMENT CONTROL Damage from urban erosion is difficult to assess. The effects are almost always removed from the site of the erosion. While figures are not widely available, erosion from denuded construction sites on Georgia soils can exceed 200 tons of topsoil per acre per year. In 1975, the Erosion and Sedimentation Control Act was passed to control serious soil erosion from development sites. The act requires that all cities and counties adopt erosion and sediment control ordinances. Conservation districts review the erosion and sediment control plans submitted by these cities and counties. Districts also develop Memorandums of Understanding with local governments who act as issuing authorities for land disturbing permits. Although the primary focus of the erosion and sedimentation program is plan review, the commission is involved in other activities. The agency's erosion and sediment control specialists conduct training programs, assist counties with ordinance updates and conduct seminars. Its Handbook for Erosion and Sediment Control is an accepted reference standard for erosion and sedimentation implementation in Georgia. 485 STATE SOIL AND WATER CONSERVATION COMMISSION Results-Based Budgeting Program Summaries SOIL AND WATER CONSERVATION ASSISTANCE PURPOSE: Provide technical and administrative assistance to the districts so that the districts can assist land owners with soil erosion prevention and water quality protection. GOALS Furnish technical assistance to the districts. Provide basic resource data for district planning. Assist districts in long-range and annual planning. Develop an annual plan of operations based on the districts' annual work plans and other national or state priorities. Keep districts informed about Natural Resource Conservation Service work and development that affect district programs. Encourage cooperation among districts in comprehensive planning and resource development activities. URBAN EROSION AND SEDIMENTATION CONTROL PURPOSE: Implement the provisions of the Erosion and Sedimentation Act of 1975 by overseeing erosion and sediment control activities within counties and cities in Georgia. GOALS Ensure that all counties and cities in the state abide by erosion and sediment control ordinances. Assist with halting the loss of soil from land disturbing non-agricultural activities. Educate units of government, contractors, and others about erosion and sedimentation control. WATERSHED PROTECTION AND FLOOD PREVENTION PURPOSE: Serve as the lead state agency for ensuring compliance with the Georgia Safe Dams Act. GOALS Bring non-complying watershed dams into compliance with the Georgia Safe Dams Act. NON-POINT POLLUTION CONTROL PURPOSE: Support federal and state water quality and quantity initiatives that pertain to the reduction on non-point source pollution. GOALS Serve as the designated state lead agricultural agency to reduce non-point source pollution to meet federal and state guidelines. Ensure that all watershed project applications meet federal Watershed Protection and Flood Prevention Act requirements. Develop demonstration projects that emphasize practices which prevent agricultural non-point source water pollution. Inform parties, through conservation tours, seminars, exhibits, and information meetings, about agricultural non-point source water pollution. 486 STATE SOIL AND WATER CONSERVATION COMMISSION -- Results-Based Budgeting Program Fund Allocations F.Y. 1997 APPROPRIATIONS TOTAL STATE AGENCY PROGRAMS 1. Soil and Water Conservation Assistance 2. Urban Erosion and Sedimentation Control 3. Watershed Protection and Prevention 4. Non-Point Pollution Control 1,644,788 286,518 232,210 494,294 1,559,468 254,728 212,810 95,467 F.Y. 1998 RECOMMENDATIONS TOTAL STATE 1,332,757 337,364 292,223 535,515 1,222,217 316,164 226,140 370,638 TOTAL APPROPRIATIONS 2,657,810 2,122,473 2,497,859 2,135,159 487 GEORGIA STUDENT FINANCE COMMISSION Total Budgeted Positions as of October 1, 1996 -- 31 , Georgia Student Finance Commission Board of Directors Georgia Student Finance Georgia Higher Education Authority Assistance Corporation Attached for AdminNonpublic Postsecondary istrative Purposes Only Education Commission ---------------- Executive Director 1 I Guaranteed Loans Division I State Programs Division 1 Guarantees student loans, conducts compliance reviews and training, collects defaulted loans in administering the Federal Family Educational Loan Program. I HOPE Scholarships State Grants and Scholarships 21 Administers Lottery and State Funded Scholarships and Grant Programs...the HOPE Program--Helping Outstanding Pupils Educationally... Tuition Equalization Grants ... Law Enforcement Personnel Dependent's Grants ...North Georgia College Military Scholarships... and Osteopathic Medical Loans...provides grant and scholarship information to high school counselors and students through mailings, telephone and personal counseling...and personal visits to schools. I Administrative Services 8 Provides financial services for the Commission, Corporation, Authority and the Nonpublic Postsecondary Education Commission including budget preparation, accounting, cash management, payroll administration...building maintenance, mail services, in-house printing and purchasing...agency-wide computer support. 488 GEORGIA STUDENT FINANCE COMMISSION RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 INCREASE OVERF.Y. 1997 BUDGET REDIRECTION LEVEL ENHANCEMENT FUNDS HIGHLIGHTS $208,707,192 $16,561,176 $206,515,273 $2,191,919 $34,344,243 in state funds to continue current loan, grant and scholarship programs assigned to the Georgia Student Finance Commission, including $27,051,920 for Tuition Equalization Grants for 26,264 students attending eligible private colleges. $117,734,411 in lottery funds to continue the HOPE Scholarship program which provides tuition, mandatory fees and a book allowance for up to 100,735 eligible students enrolled in public colleges and technical institutions. Scholarships are provided to eligible Georgians enrolled in public colleges and degree programs at public technical institutions who have a cumulative B grade point average. Scholarships are also provided to Georgians enrolled in diploma and certificate programs at public technical institutions. The recommendation includes $3,834,275 to provide another chance to earn a HOPE scholarship to those students with a B grade point average after 45 quarter hours. $39,621,000 in HOPE lottery funds to provide a scholarship to those Georgians enrolled in TEG-eligible private colleges in this state. The recommendation includes $2,346,000 to provide another chance to earn a HOPE scholarship to those students with a B grade point average after 45 quarter hours. $3,417,500 in HOPE lottery funds to provide GED recipients a $500 certificate to use for education-related purposes. $10,000,000 in lottery funds to continue the HOPE Teacher Scholarships for teachers who desire to obtain advanced degrees or obtain critical teaching skill enhancements. $2,000,000 in lottery funds to continue the Promise Scholarships for eligible, high achieving students who aspire to be teachers in Georgia public schools. $755,480 in lottery funds to continue the Georgia Military Scholarship program which provides full scholarships to selected students attending the Georgia Military College in Milledgeville. $249,736 in lottery funds to continue the Law Enforcement Dependents Grant which provides full scholarships to the dependent children of public safety officers who are killed or permanently disabled in the line of duty. Lottery Scholarships Awarded 140,000 by Fiscal Year 120,000 100,000 80,000 60,000 40,000 20,000 1994 1995 1996 1997 Projected 1998 Projected 489 GEORGIA STUDENT FINANCE COMMISSION Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Guaranteed Educational Loans Tuition Equalization Grants Student Incentive Grants LEPD Grants North Georgia College ROTC Osteopathic Medical Loans Georgia Military Scholarships Paul Douglas Teaching Loans LOTTERY FUNDS: HOPE Financial Aid - Tuition HOPE Financial Aid - Books HOPE Financial Aid - Fees Tuition Equalization Grants Georgia Military Scholarships LEPD Scholarships Teacher Scholarships Promise Scholarships F.Y.1995 Expenditures 3,878,053 538,784 73,366 19,565 44,100 63,652 500,137 354,155 4,076,000 22,360,260 5,003,940 38,000 75,000 160,000 593,600 425,000 35,060,882 13,365,174 6,757,906 20,302,594 36,895 69,255 F.Y.1996 Expenditures 3,234,079 485,494 67,500 22,861 40,949 84,636 189,723 335,265 3,292,641 24,342,404 3,997,153 78,000 312,500 100,000 680,000 F.Y.1997 Current Budget 425,609 15,000 16,000 2,500 45,600 25,000 13,822 12,000 3,292,641 25,452,487 2,216,321 64,000 321,875 100,000 730,000 52,195,950 14,417,200 7,906,850 31,125,000 336,000 100,000 10,000,000 3,000,000 75,213,784 21,277,807 14,498,583 34,620,387 567,000 235,600 10,000,000 3,000,000 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 430,257 20,000 16,000 3,100 40,000 25,000 13,822 12,000 4,287,582 25,452,487 1,221,380 64,000 321,875 100,000 730,000 25,000 451,493 811,513 22,000 15,625 30,000 78,368 430,257 20,000 16,000 3,100 40,000 50,000 13,822 12,000 4,739,075 26,264,000 1,221,380 86,000 337,500 130,000 808,368 80,422,194 21,305,020 15,590,422 37,275,000 755,480 249,736 10,000,000 2,000,000 80,422,194 21,305,020 15,590,422 37,275,000 755,480 249,736 10,000,000 2,000,000 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 113,796,318 156,344,205 192,146,016 200,335,355 1,858,280 5,515,268 7,373,548 30,830,064 75,592,706 106,422,770 123 1 75,284 3,936,627 4,011,911 33,251,294 119,081,000 152,332,294 121 1 32,732,855 159,413,161 192,146,016 7 32,737,503 167,597,852 200,335,355 7 1,433,999 201,769,354 1,433,999 1,433,999 34,171,502 167,597,852 201,769,354 7 490 GEORGIA STUDENT FINANCE COMMISSION Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Guaranteed Educational Loans Tuition Equalization Grants Student Incentive Grants LEPD Grants North Georgia College ROTC Osteopathic Medical Loans Georgia Military Scholarships Paul Douglas Teaching Loans LOTTERY FUNDS: HOPE Financial Aid - Tuition HOPE Financial Aid - Books HOPE Financial Aid - Fees Tuition Equalization Grants Georgia Military Scholarships LEPD Scholarships Teacher Scholarships Promise Scholarships Adjusted Base 429,900 15,000 16,000 2,500 45,600 25,000 13,822 12,000 3,292,641 25,452,487 2,216,321 64,000 321,875 100,000 730,000 83,050,621 22,001,329 16,099,961 39,621,000 755,480 249,736 10,000,000 2,000,000 Redirection Level Funds To Redirect Additions (28,009) 28,009 5,000 600 (5,600) (613,925) (994,941) 1,608,866 Redirection Totals 429,900 20,000 16,000 3,100 40,000 25,000 13,822 12,000 4,287,582 25,452,487 1,221,380 64,000 321,875 100,000 730,000 Enhancements 25,000 451,493 1,599,433 22,000 15,625 78,368 83,050,621 22,001,329 16,099,961 39,621,000 755,480 249,736 10,000,000 2,000,000 Totals 429,900 20,000 16,000 3,100 40,000 50,000 13,822 12,000 4,739,075 27,051,920 1,221,380 86,000 337,500 100,000 808,368 83,050,621 22,001,329 16,099,961 39,621,000 755,480 249,736 10,000,000 2,000,000 Total Funds Less Federal & Other Funds: Federal Funds Other Funds Total Federal & Other Funds State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 206,515,273 32,737,146 173,778,127 206,515,273 7 (1,642,475) (1,642,475) (1,642,475) 1,642,475 206,515,273 1,642,475 1,642,475 32,737,146 173,778,127 206,515,273 7 2,191,919 208,707,192 2,191,919 2,191,919 34,929,065 173,778,127 208,707,192 7 491 GEORGIA STUDENT FINANCE COMMISSION F.Y. 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS 1. Annualize the cost ofFY 1997 salary adjustments. 2. Reflect a decrease in agency self-insurance rates. 3. Reflect a decrease in the merit system position assessment due to a policy change that assessments in the future will be applied to all agency authorized positions for a base level of statewide services. ADJUSTED BASE 32,732,855 4,648 (43) (314) 32,737,146 REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce funding for the Guaranteed Educational Loan program. 2. Continue phasing out state funding for the Student Incentive Grant program. 3. Eliminate a secretarial position and reduce funds for the rental of outside storage space for the Nonpublic Postsecondary Education Commission. total Funds to Redirect (613,925) (994,941) (33,609) (1,642,475) ADDITIONS 1. Add funds to Guaranteed Educational Loans for a pilot program providing service-cancelable loans under the Intellectual Capital Partnership Program (ICAPP). 1,608,866 2. Nonpublic Postsecondary Education Commission - provide a data entry position for a student records database ($28,009), a DOAS lease vehicle ($5,000) and equipment funds to cover the annual costs of a copier ($600). Total Additions TOTAL REDIRECTION LEVEL 33,609 1,642,475 32,737,146 ENHANCEMENT FUNDS ENHANCEMENTS 1. Complete the annual funding requirements of the ICAPP service-cancelable loan program. 2. Provide for projected enrollment increases under the Tuition Equalization Grant program. 3. Increase the annual Tuition Equalization Grant award amount by 3% from $1,000 to $1,030. 451,493 811,513 787,920 492 GEORGIA STUDENT FINANCE COMMISSION -- FY 1998 Budget Summary GOVERNOR'S RECOMMENDATIONS 4. Provide full funding for the North Georgia Military Scholarship program. 78,368 5. Add funds for a projected increase in enrollment in the Law Enforcement Personnel Dependents Grant program. 22,000 6. Fund a projected increase in the North Georgia College ROTC Grant program. 15,625 7. Nonpublic Postsecondary Education Commission - provide contract services to assist with the fmancial review and verification process for all regulated proprietary institutions. 25,000 TOTAL ENHANCEMENT FUNDS 2,191,919 TOTAL STATE GENERAL FUNDS LOTTERY FUNDS LOTTERY PROGRAM I. Provide funds to continue the HOPE Scholarship program at public colleges and technical institutions for students with a B grade point average. 2. Increase funds for the HOPE Tuition Equalization Grant program to provide $1,500 grants to eligible juniors and seniors and to continue phasing in the academic scholarship program by providing $3,000 grants to eligible freshmen and sophomores with a B grade point average. 3. Provide another chance to earn a HOPE Scholarship to students enrolled in public and private colleges who have a B grade point average after 45 quarter hours. 4. Continue the Teacher Scholarship program for a projected 2,500 students. 5. Continue the Promise Scholarship for a projected 433 high achieving students. 6. Increase funds to provide for annual costs of the Georgia Military Scholarship program at the Georgia Military College in Milledgeville. 7. Add funds to cover projected enrollment in the Law Enforcement Personnel Dependents Grant program. TOTAL LOTTERY FUNDS TOTAL STATE FUNDS 34,929,065 117,317,636 37,275,000 6,180,275 10,000,000 2,000,000 755,480 249,736 173,778,127 208,707,192 493 GEORGIA STUDENT FINANCE COMMISSION Functional Budget Summary F.Y. 1997 APPROPRIATIONS F.Y. 1998 RECOMMENDATIONS 1. Georgia Student Finance Authority TOTAL 32,177,324 STATE 32,177,324 TOTAL 34,344,243 STATE 34,344,243 2. Georgia Nonpublic Postsecondary Education Commission 555,531 555,531 584,822 584,822 3. Unit B - Lottery Programs 159,413,161 159,413,161 173,778,127 173,778,127 TOTAL APPROPRIATIONS 192,146,016 192,146,016 208,707,192 208,707,192 RECOMMENDED APPROPRIATION: The Georgia Student Finance Commission is the budget unit for which the following State Fund Appropriation is recommended for F.Y. 1998: $208,707,192. 494 GEORGIA STUDENT FINANCE COMMISSION Roles and Responsibilities The Georgia Student Finance Commission was created to help improve the higher education opportunities ofthe citizens of this state by administering the programs of the Georgia Higher Education Assistance Corporation and the Georgia Student Finance Authority through a centralized staffmg arrangement. COMMISSION OPERATIONS The commission serves as the executive branch agency designated to receive appropriations of funds for the student financial aid programs of the corporation and the authority. Those programs funded through the commission include the Helping Outstanding Pupils Educationally (HOPE) Scholarship Program, other educational scholarship and grant programs supported by both lottery proceeds and state general fund appropriations, and the Governor's Scholarship Program for the Department of Education. GEORGIA HIGHER EDUCATION ASSISTANCE CORPORATION The Georgia Higher Education Assistance Corporation is a nonprofit public corporation of the state and is responsible for administering a program of guaranteed educational loans to eligible students and parents in accordance with state law and the requirements of the Federal Higher Education Loan Act. In F.Y. 1996, over 53,500 new loans for eligible students and parents were guaranteed by the corporation. The value of those loans exceeded $168 million. Purchases of defaulted loans totaled over $22 million. Approximately $15 million was recovered from loans that were purchased and placed in the default collection process. GEORGIA STUDENT FINANCE AUTHORITY The Georgia Student Finance Authority, a nonprofit public corporation of the state, is responsible for providing student fmancial aid to eligible Georgians through loan, scholarship and grant assistance programs as prescribed by the General Assembly. In F.Y. 1996, the authority disbursed over $36 million in state general funds and agency revenues for over 36,000 students and over $147,000,000 in HOPE Scholarship and other lottery funded grant and scholarship programs for over 120,000 students. The authority is also authorized to be a lender under the Georgia Higher Education Loan Program. In F.Y. 1996, over $50 million in student loans were originated by the authority and the total value ofloans serviced exceeded $300 million. The authority has the responsibility of performing all management, supervisory, clerical and administrative functions required by the corporation and the commission. The authority also provides administrative and operational support services, at no state cost, to the Georgia Nonpublic Postsecondary Education Commission (NPEC), which is attached for administrative purposes. ATTACHED AGENCY The Georgia Nonpublic Postsecondary Education Commission is responsible for regulating private postsecondary schools operating in this state in order to protect the financial investments of Georgians participating in their programs. AUTHORITY O.C.G.A. 20-3-230 et.seq., 20-3-250 et.seq., 20-3-260 et.seq. and 20-3-310 et.seq. 495 GEORGIA STUDENT FINANCE COMMISSION Strategies and Services The continued growth and development of Georgia is directly related to the degree to which educational opportunities are provided to all citizens. It is in the public interest to sustain our public and private postsecondary institutions because of their value in promoting the economic and cultural development and prosperity of Georgians. The Georgia educational loan program was created to both expand educational opportunities available to all Georgians as well as to ensure the continued economic viability of our postsecondary institutions. In addition to administering the Federal Family Education Loan Program (FFELP), Georgia also provides state funds to support service-cancelable loans and a variety of scholarship and grant programs. FEDERAL FAMILY EDUCATION LOAN PROGRAM The Georgia Higher Education Assistance Corporation administers federally guaranteed education loan programs. Through these programs, participating commercial lenders, as well as the Georgia Student Finance Authority, make educational loans to students and the parents of students who need fmancial assistance to continue their education after high school. For these loans, the corporation serves as the "guarantor" to the lenders. If for any reason the borrower does not repay the lending institution, the corporation pays the lender an amount prescribed by federal regulation and assumes the obligation for collecting the remaining debt. Since these programs are federally supported, the federal government will reimburse the corporation for most of the defaults which are purchased from lenders. The federally guaranteed loan programs are: SUBSIDIZED FEDERAL STAFFORD LOAN PROGRAM-- A need based loan program for eligible students attending colleges, vocational, technical, trade or business schools throughout the nation. The loan amount depends on the student's financial need, the cost of attending the school and other financial aid awarded. The federal government pays the interest that accrues while the student is in school, during the grace period and any deferment periods. Repayment of the loan must begin within six months following graduation or termination from school. UNSUBSIDIZED FEDERAL STAFFORD LOAN PROGRAM-- A non-need based loan program for eligible students attending colleges, vocational, technical, trade or business schools throughout the nation. The borrower is responsible for all interest which accrues from the date the money is disbursed. Repayment of the loan must begin within six months following graduation or termination from school. FEDERAL "PLUS" LOAN PROGRAM-- Provides loans to parents of dependent undergraduate or graduate students to help pay for postsecondary education costs. The loan amount depends on the cost of attending the school and other financial aid awarded. Repayment of the loan plus interest must begin within 60 days of receiving the funds. STATE EDUCATIONAL LOAN PROGRAM The Georgia Student Finance Authority is the legal entity which actually serves as the lender (or limited purpose "bank") for about one-third of the student loans in Georgia. The authority provides loans to help students and parents meet the costs of higher education. As a FFELP lender, the authority makes loans to students and parents that are repayable in regular monthly installments and offers service cancellation benefits in Georgia on eligible Federal Stafford loans. Service cancelable loans help students preparing for professions in which there is a critical manpower shortage in Georgia. Eligible borrowers may cancel their loans by working in their approved field in Georgia. State funds appropriated to the commission as "Guaranteed Educational Loans" are paid to the authority to support this program. The authority expects to make 1,932 loans in F.Y. 1998 with the $4,739,075 recommended. GRANT AND SCHOLARSHIP PROGRAMS State, federal and other funds are appropriated to the commission in several unique object classes to support the grant and scholarship programs of the authority. These programs are as follows: STUDENT INCENTIVE GRANT-- Non-repayable educational grants to Georgia citizens enrolled as undergraduate students in approved non-profit postsecondary schools in Georgia. These grants are based on need and average $500 per academic year. This program is being phased out beginning in F.Y. 1997. The commission expects to award 2,443 grants in F.Y. 1998 with an appropriation of$I,221,380. TUITION EQUALIZATION GRANT-- A state-funded grant program providing an annual grant to each eligible Georgia student attending an approved private college. The recommendation of $27,051,920 for F.Y. 1998 will provide 1,030 grant awards to approximately 26,264 students. LAW ENFORCEMENT PERSONNEL DEPENDENTS GRANT (LEPD)-- Provides educational grants of up to $2,000 per academic year to the dependent children of a Georgia law enforcement officer, fireman or prison guard who has been killed or permanently disabled in the line of duty. In F.Y. 1998, $86,000 in state funds will provide 496 approximately 43 grants. Scholars, selected by the Georgia ($10,000,000), Promise Scholarships NORTH GEORGIA COLLEGE Department of Education, receive a ($2,000,000), Georgia Military ROTC GRANT-- Provides a state one-time award of $1,500 as entering Scholarships ($755,480) and Law scholarship of $1,500 per year to each freshmen for their fIrst year of college Enforcement Dependents Grants full-time Georgia student enrolled in study at an eligible U. S. institution. ($249,736). military ROTC training at North GOVERNOR'S SCHOLARSHIP-- Georgia College. Up to 225 students Provides an annual $1,575 award to REGULATION OF NONPUBLIC will receive these grants in F.Y. 1998 Georgia students selected as Georgia POSTSECONDARY EDUCATION with the $337,500 recommended. Scholars, STAR students, high school INSTITUTIONS OSTEOPATHIC MEDICAL valedictorians and salutatorians who go LOAN-- Provides service-cancelable on to attend eligible colleges and The Nonpublic Postsecondary loans to Georgians accepted for universities in this state. Education Commission regulates enrollment at an eligible college or The authority administers a certain proprietary schools and university of osteopathic medicine. fInancial aid program for the Board of postsecondary education institutions The loans are based on need with a Regents: operating in the state, including public maximum of$10,000 per year for up to REGENTS OPPORTUNITY and private schools outside the state four years. A recipient may cancel the GRANTS-- A need based program to which offer Georgians degree or loan by practicing primary care assist graduate and professional certifIcate programs by mail, osteopathic medicine in a medically students attending University System telecommunications or other means. underserved area of this state. The schools. Awards are $2,500 to $5,000 The commission's regulatory activities $100,000 in state funds recommended per academic year. include establishing standards relating for F.Y. 1998 to the quality of will provide instructional programs loans to 10 students. State Grant, Loan and Scholarship Programs offered, ethical and business practices, GEORGIA Fiscal Year 1998 Recommended health and safety, and MILITARY fIscal responsibility. SCHOLARSHIPProvides assistance to North Georgia College students Program Tuition Equalization Grants Guaranteed Educational Loans Student Incentive Grants North Georgia Military Scholarships Students 26,264 1,932 2,443 132 Amount $27,051,920 4,739,075 1,221,380 808,368 The commission's staff conducts audits and reviews of the institutions it regulates, and licenses who are interested in pursuing a North Georgia College ROTC 225 Osteopathic Medical Loans 10 Law Enforcement Personnel Dependents Grants 43 337,500 100,000 86,000 the schools and their programs for the protection of Georgia military career. students and their Thirty-thre e parents. The freshmen are commission is selected each year to receive full four- HOPE SCHOLARSHIP PROGRAM responsible for establishing and year scholarships to North Georgia maintaining a Tuition Guaranty Trust College. Students must meet strict The Helping Outstanding Pupils Fund with participation fees collected academic requirements to be eligible Educationally (HOPE) Scholarship from postsecondary education and must agree to serve at least four Program was initiated in F.Y. 1994 institutions. The Trust Fund is years in the Georgia National Guard with an appropriation of lottery intended to protect students from after graduation. The commission proceeds. The program, designed to fInancial loss when a school closes expects to serve 132 students with the increase higher education participation without reimbursing students and $808,368 in state funds recommended and completion rates for Georgia without completing its educational in F.Y. 1998. students, provides scholarships to all obligations to its students. The The authority administers two students who meet certain academic commission is required to take scholarship programs for the Georgia requirements, and who attend public possession of the administration and Department of Education: colleges, public technical institutions or student records of any regulated ROBERT C. BYRD eligible private colleges in this state. institution which ceases to operate. SCHOLARSHlP-- Available to The commission expects to award Georgia students who demonstrate approximately 127,989 scholarships outstanding academic achievement. with the $160,772,911 recommended. The program is intended to promote The commission also administers and recognize student excellence. Byrd the lottery funded Teacher Scholarships 497 GEORGIA STUDENT FINANCE COMMISSION Results-Based Budgeting Program Summaries STUQENT SCHOLARSHIPS PURPOSE: Encourage academic achievement in Georgia high schools and colleges, and improve access to students to pursue postsecondary education at Georgia public and private institutions by providing the HOPE Scholarship at public and private institutions, the Governor's Scholarship, Robert Byrd Honors Scholarship and Charles McDaniel Teacher Scholarship. GOALS Reward academic achievement in Georgia high schools and colleges. Encourage Georgia's best students to attend college in Georgia. Strengthen the level of academic standards at Georgia high schools and colleges. Improve access to postsecondary institutions in Georgia. STUDENT GRANTS PURPOSE: Encourage student access to postsecondary education in Georgia by providing grants to targeted groups of students, including the HOPE Grant, the HOPE GED Grant, the HOPE TEG Grant, the Tuition Equalization Grant, the Law Enforcement Personnel Dependents (LEPD) grant programs, the Georgia Peach Corp Grant, the Student Incentive Grant, and the North Georgia College ROTC Grant. GOALS Provide opportunities for Georgia citizens to pursue technical training and skills update. Provide greater access to postsecondary education in Georgia. Encourage students statewide to pursue military education and careers in Georgia. Encourage GED recipients to pursue postsecondary education in Georgia. Improve social services to Thompson and Vidalia, Georgia. Encourage children of public safety offices who were killed or permanently disabled in the line of duty to pursue postsecondary education in Georgia. STUDENT SERVICE CANCELABLE LOANS PURPOSE: Motivate academically prepared student to be trained and to serve in targeted professions in which public need in Georgia has been identified through the following programs: Critical Shortage Fields Intellectual Capital Partnership Program, North Georgia Military Osteopathic Medicine, Georgia Military, HOPE Promise, and HOPE Teacher-Scholarships. GOALS Encourage Georgia residents to pursue professions in which there is a public need in Georgia. Motivate students to complete their education. Motivate students to perform service in Georgia where needed. Encourage academic achievement and excellence. 498 GEORGIA STUDENT FINANCE COMMISSION -- Results-Based Budgeting GEORGIA HIGHER EDUCATION LOAN PURPOSE: Assure access in Georgia to loan capital through the Federal Family Education Loan Program (FFELP) to eligible postsecondary students and their parents under the requirements of the federal law. GOALS Provide administration ofFFELP at the state level. Encourage lender participation in providing the loan capital for FFELP. Ensure program integrity. NONPUBLIC POSTSECONDARY EDUCATION COMMISSION AGENCY PURPOSE: Regulate license and authorize private postsecondary schools and colleges. Provide protection of students, prospective students, graduates, prospective employers and taxpayers by regulating, licensing and authorizing postsecondary schools. GOALS Ensure that each authorized school/college is providing students with the skills and knowledge that will adequately prepare the student for employment in the academic area for which they were trained. Ensure that each student complaint filed with the commission is investigated in a complete and timely manner. Ensure that each authorized institution is fmancially stable to provide instructional programs. Program Fund Allocations F.Y. 1997 APPROPRlATIONS F.Y. 1998 RECOMMENDATIONS AGENCY PROGRAMS I. Student Scholarships TOTAL 116,819,174 STATE 116,819,174 TOTAL 135,719,411 STATE 135,719,411 2. Student Grants 57,081,670 57,081,670 54,000,036 54,000,036 3. Student Service Cancelable Loans 4. Georgia Higher Education Loan TOTAL 17,689,641 o 191,590,485 17,689,641 0 191,590,485 18,402,923 0 208,122,370 18,402,923 0 208,122,370 ATTACHED AGENCY PROGRAMS 1. Nonpublic Postsecondary Education Commission Agency TOTAL APPROPRlATIONS 555,531 192,146,016 555,531 192,146,016 584,822 208,707,192 , 584,822 208,707,192 499 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 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 TEACHERS' RETIREMENT SYSTEM Total Budgeted Positions as of October 1, 1996 -- 82 Board of Trustees Executive Director 2 I Deputy Executive Director 2 I Accounting Division 18 I Counseling and Information Division 13 Provides accounting services for TRS and ERS (cash management, general and subsidiary ledgers, purchasing/ payables, office payrolls, etc.)...maintains automated accounting system for TRS and ERS...handles reporting requirements for TRS and ERS (budgets, federal, state, Board of Trustees, etc.)...coordinates financial audits for TRS and ERS... maintains member master files for TRS...processes monthly member contributions against member master files for TRS...coordinates and controls all computer processing between TRS divisions and State Computer Center...develops work schedules with operations personnel in State Computer Center. I Retirement Division 14 Refund and Service Division 12 Explains provisions of laws governing retirement of members... handles correspondence with members regarding retirement benefits...prepares estimates of retirement benefits...conducts group counseling sessions for members...counsels individual members regarding their retirement benefits...prepares member handbooks and other retirement related notifications to members. I Investment Services Division 21 Calculates and authorizes benefits for retiring members and beneficiaries of deceased members... maintains controls on benefit payrolls...handles correspondence with retired members...prepares estimates of benefit amounts... determines creditable service and cost calculations. Prepares estimates of refunds ... calculates amounts of refunds of member contributions and interest and authorizes payment of refunds...corresponds with refunded members...audits members' creditable service records... calculates cost to purchase service. Renders investment advice to joint investment committee and Board of Trustees of TRS and ERS...prepares investment reports for TRS and ERS...monitors the performance of investment managers of TRS and ERS funds...places 6uy and sell orders for securities... determines that dividends, interest and other payments are collected in a timely manner. 501 TEACHERS' RETIREMENT SYSTEM Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications COL Increases, Local Retirees Floor Fund, Local Retirees Total Funds Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles F.Y. 1995 Expenditures 3,739,839 303,126 16,783 14,677 16,246 469,658 310,941 1,050,598 79,102 3,278,119 397,028 9,676,117 6,000,970 6,000,970 3,675,147 76 2 F.Y. 1996 Expenditures 4,177,995 342,877 20,565 F.Y. 1997 Current Budget 4,895,407 423,900 20,500 12,941 469,658 293,306 943,870 139,177 3,320,830 345,786 10,067,005 16,150 475,958 371,000 877,791 146,000 3,750,000 380,000 11,356,706 6,400,389 6,400,389 3,666,616 81 2 7,226,706 7,226,706 4,130,000 82 2 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals (97,950) (50,000) 4,797,457 373,900 20,500 (10,450) (63,000) (62,055) (5,698) (60,000) (349,153) 5,700 475,958 308,000 815,736 140,302 3,750,000 320,000 11,007,553 (289,153) (289,153) (60,000) 82 2 6,937,553 6,937,553 4,070,000 82 2 502 TEACHERS' RETIREMENT SYSTEM Financial Summary F.Y. 1998 Governor's Recommendations Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications COL Increase, Local Retirees Floor Fund, Local Retirees Total Funds Adjusted Base 4,970,537 423,900 20,500 16,150 475,958 371,000 877,791 146,000 3,750,000 380,000 11,431,836 Redirection Level Funds To Redirect Additions (97,950) (50,000) (10,450) (63,000) (62,055) (5,698) (60,000) (349,153) Redirection Totals 4,872,587 373,900 20,500 5,700 475,958 308,000 815,736 140,302 3,750,000 320,000 11,082,683 Enhancements Totals. 4,872,587 373,900 20,500 5,700 475,958 308,000 815,736 140,302 3,750,000 320,000 11,082,683 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds Total State Funds Positions Motor Vehicles 7,301,836 7,301,836 4,130,000 82 2 (289,153) (289,153) (60,000) 7,012,683 7,012,683 4,070,000 82 2 7,012,683 7,012,683 4,070,000 82 2 RECOMMENDED APPROPRIATION: The Teachers' Retirement System is the budget unit for which the following State Fund Appropriation for F.Y. 1998 is recommended: $4,070,000. 503 TEACHERS' RETIREMENT SYSTEM F.Y. 1998 Budget Summary ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 STATE APPROPRIATIONS ADJUSTED BASE REDIRECTION FUNDS GOVERNOR'S RECOMMENDATIONS 4,130,000 4,130,000 FUNDS TO REDIRECT 1. Adjustment to floor fund for local system retirees. Total Funds to Redirect TOTAL REDIRECTION LEVEL TOTAL STATE FUNDS (60,000) (60,000) 4,070,000 4,070,000 504 TEACHERS' RETIREMENT SYSTEM - F.Y. 1998 BUDGET SUMMARY ADJUSTMENTS TO CURRENT BUDGET F.Y. 1997 AGENCY FUNDS 1. Annualize the cost of the F.Y. 1997 salary adjustment. ADWSTED BASE REDIRECTION FUNDS FUNDS TO REDIRECT 1. Reduce operating costs in various object classes. Total Funds to Redirect TOTAL REDIRECTION LEVEL TOTAL AGENCY FUNDS GOVERNOR'S RECOMMENDATIONS 7,226,706 75,130 7,301,836 (289,153) (289,153) 7,012,683 7,012,683 505 TEACHERS' RETIREMENT SYSTEM Roles and Responsibilities BOARD OF TRUSTEES The Board of Trustees consists of 10 members as follows: the State Auditor, ex officio; the Director of the Treasury and Fiscal Services, ex officio; five appointees selected by the Governor (two active members of the System who are classroom teachers and not employees of the Board of Regents, one active member of the System who is a public school administrator, one active member of the System who is not an employee of the Board of Regents and one active member elected by the Governor); one active member of the the System who is an employee of the Board of Regents, appointed by the Board of Regents; two members appointed by the Trustees (one member who has retired under the System, and one individual who is a citizen of the state with experience in the investment of money). AUTHORITY Title 47, Chapters 3 & 20. 506 TEACHERS' RETIREMENT SYSTEM Strategies and Services ADMINISTRATION The Teachers' Retirement System of Georgia is a vehicle for accepting, investing and disbursing the retirement funds of its members. The management of the Teachers' Retirement System is the responsibility of the Executive Director who is appointed by the Board of Trustees and serves at their pleasure. On behalf of the Board, the Executive Director is responsible for the operation of the System, engaging such actuarial and other services as necessary to transact business, setting compensation of system employees and paying expenses necessary to operate. In addition to administration, the Teachers' Retirement System is divided into five functional divisions: Investment Services. Refund and Services. Counseling and Information. Retirement Division. Accounting and Membership. MEMBERSIllP All personnel in covered positions of the state's public school systems, vocational-technical schools, Regional Educational Service Agencies (RESA Units) and all colleges and universities comprising the University of Georgia who are employed one-half time or more, except those professors and principal administrators electing to participate in the Board of Regents of the University System of Georgia's Optional Retirement Plan, are required to be members of the system as a condition of employment. Covered positions include teachers, administrators, supervisors, clerks, teacher aides, secretaries, paraprofessionals, public school nurses, employees of the Agricultural Extension Service, and county and regional librarians. Public school lunch- room, maintenance, warehouse and transportation managers and supervisors are eligible for membership. Any individual first employed at age 60 or after may elect not to join the System. INVESTMENTS The Teachers' Retirement System has its own "in-house" Investment Services Division which handles the day-to-day investment transactions with advice from six outside advisors. Six members of the Teachers' Retirement System's Board of Trustees, along with the Executive Secretary, comprise the Investment Committee. Investment recommendations made by the Investment Committee require approval by the Teachers' Retirement System's entire Board of Trustees. FLOORFUND-LOCALSCHOOL BOARDS Appropriation of state funds to the the Teachers' Retirement System insures that any teacher who has retired or will retire from a local retirement system (Atlanta City Schools, Chatham County Schools, Fulton County Schools or Rome City Schools) shall receive a minimum allowance upon retirement of not less than $17.00 per month for each year of creditable service, not to exceed 40 years of service. As of June 30, 1996, there were 273 local system retirees receiving floor funds to achieve this minimum allowance. COLAFUNDS-LOCALSYSTEM Any teacher who retired prior to July 1, 1978 from a local retirement system (Atlanta City Schools, Chatham County Schools, Fulton County Schools and Rome City Schools) shall receive a post-retirement benefit adjustment (COLA) whenever such adjustment is granted to teachers who retire under the Teachers' Retirement System. These funds are appropriated annually. As of June 30, 1996, there were 763 local system retirees receiving COLA funds. 507 TEACHERS' RETIREMENT SYSTEM Results-Based Budgeting Program Summaries RETIREMENT SYSTEM ADMINISTRATION PURPOSE: Provide all personnel in covered positions of the State's public school systems, vocationaltechnical schools, Regional Educational Service Agencies (RESA) and all colleges and universities comprising the University System of Georgia and their families a primary source of income relative to their service and compensation in the event of their retirement, death or disability. GOALS Soundly invest retirement funds to insure adequate financing for future benefits due and other obligations of the system. Provide statewide counseling services for system members. Accurately account for the status and contributions of all active and inactive members. Process monthly benefits due retired members. Process refunds due terminated members. 508 TEACHERS' RETIREMENT SYSTEM -- Results-Based Budgeting Program Fund Allocations AGENCY PROGRAMS 1. Retirement System Administration F.Y. 1997 APPROPRIATIONS TOTAL STATE F.Y. 1998 RECOMMENDATIONS TOTAL STATE 11,356,706 4,130,000 11,082,683 4,070,000 TOTAL APPROPRIATIONS 11,356,706 4,130,000 11,082,683 4,070,000 509 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION Total Budgeted Positions as of October 1, 1996 -- 3,011 Commissioner's Office I Adult Literacy 8 Provides system leadership, policies, procedures, public information, external affairs, property acquisition, facility planning, construction, reno- vation and maintenance. I I I Administrative Services Quick Start 16 Manages the Adult Literacy Program, the General Educational Development (GED) Diploma Program, and the Certified Literate Community Program...administers the Basic Skills Tax Credit Program. 26 Provides general and administrative services, including accounting, budgeting, purchasing, property inventory reporting, mail, personnel, computer hadware and software, and electronic data processing planning services... manages administrative, EEOC, CEO appeals. I Technical Education I I Public Library Services 55 Provides customized entry-level start-up training for qualified companies as an incentive for attracting new industries to Georgia and to encourage expansion of existing industries...provides training needs assessment and designs instructional systems for qualified new, expanding and existing industries I State Technical Institutes 24 Manages the operations of and provides technical assistance and policy guidance to 30 state technical institutes, 3 locally owned technical institutes and technical divisions of 4 college programs...develops postsecondary component of the State Plan for Vocational Education...administers federal Carl Perkins Act funds for postsecondary technical education programs and support services. 31 Manages state and federal funding for library services and construction through various grant programs and statewide projects... administers the public library system, including 33 regional and 23 county systems ... provides consultation and advice to the public library community...provides public library service to the disabled through the Regional Library for the Blind and Physically Handicapped and 13 subregional libraries for the blind and physically handicapped (Talking Book Centers)...provides training for public, academic, and special library staffs...creates and maintains databases for library use...coordinates and administers demonstration and statewide programs and projects. 2,851 Provides a full array of programs and support services in developmental education, technical education, customized industry training and continuing education for adults and out-of-school youth ... provides outreach programs, counseling and coordination of support programs for unemployed, underemployed, single parents, displaced homemakers and other special populations... provides education and training services for entry-level employment, upgrades training in an existing occupation, and retrains for a different occupation. 510 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION RECOMMENDED STATE APPROPRIATIONS FOR F.Y. 1998 $230,477,303 DECREASE OVERF.Y. 1997 BUDGET $27,556,423 REDIRECTION LEVEL $206,087,692 ENHANCEMENT FUNDS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $24,389,611 HIGHLIGHTS $15,500,000 in lottery funds including $5 million to construct a technical institute satellite for Augusta-Burke County, $5 million to construct a regional business and industry training center for Heart ofGeorgia-Dublin, and $5,500,000 to construct a new classroom building for overcrowded Ogeechee Technical Institute. With the addition of these funds, the department will have received during Governor Miller's administration over $204 million, including over $96 million in lottery proceeds, to continue to carry out the most extensive capital outlay program for technical education in the state's history. As ofDecember 1996 the department had 46 separate projects in various stages of completion, including 26 new facilities open and operating, eight more scheduled to open by the end ofF.Y. 1997, plus an additional eight scheduled to open in F.Y. 1998. $9,276,761 in state funds to fully annualize the cost of opening new facilities in F.Y. 1997 at nine technical institute satellites including Athens-Elbert County, Augusta-McDuffie County, Ben Hill-Irwin-Coffee County, Chattahoochee-Paulding County, Coosa Valley-Gordon County, DeKalb-Covington, Lanier-Forsyth County, Macon-Milledgeville, Moultrie-Tift County, and three technical institutes including Middle Georgia, Thomas and Walker. F.Y. 1997 is the first year in which a significant number oftechnical institute satellites have opened. As of December 1996, two satellites have been opened, six more satellites are scheduled to open during the remainder of F.Y. 1997, and seven more are expected to open in F.Y. 1998. Opening these facilities is a significant step in Governor Miller's efforts to make technical education more easily available and accessible to Georgia's citizens, thus helping provide a technically trained, competitive workforce. $9 million in general obligation bonds to continue a multiyear facility maintenance program for minor repairs, renovations and maintenance needs at the technical institutes. These funds, combined with $16.7 million appropriated over the past two fiscal years, total nearly $26 million given to the department to handle the most critically needed infrastructure repairs to technical institute facilities. $3,500,000 in lottery proceeds to replace obsolete instructional equipment systemwide. An additional $1.5 million in lottery proceeds to replace obsolete instructional equipment was recommended in the F.Y. 1997 Amended Budget. $2,080,000 for adult literacy, including $1,040,000 in state funds to hire 26 new adult literacy teachers and $1,040,000 in lottery proceeds to purchase technology and equipment needed for these teachers. This completes Governor Miller's pledge to place one full-time adult literacy teacher in each of Georgia's 159 counties. $1,643,539 in state funds for new facilities scheduled to open in F.Y. 1998 including adding 92 instructional and 85 noninstructional equivalent full-time positions at state technical institute satellites including Albany-Early County, AltamahaAppling County, Coosa Valley-Polk County, North GeorgiaUnion County, South Georgia-Crisp County, Heart ofGeorgiaEastman, and retrofits at Chattahoochee, North Georgia and Thomas technical institutes. This funding level should enable all new facilities to open and operate when construction is completed. The estimated cost to fully staff and operate these facilities in F.Y. 1999 is $4,309,430. $1,905,000 in general obligation bonds for equipment for facilities undergoing majorrenovation and retrofitting including Chattahoochee and North Georgia technical institutes. An additional $6,255,000 in lottery proceeds was recommended in the F.Y. 1997 Amended Budget for other facilities opening in F.Y. 1998 including these satellites: Lanier-Forsyth County, Albany-Early County, Altamaha-Appling County, Coosa ValleyPolk County, North Georgia-Union County, South GeorgiaCrisp County, and Heart of Georgia-Eastman. $1,641,740 to fund the first year of a two-year phase-in to bring Atlanta ($1,126,540) and Savannah ($515,200) technical institutes under state management. Once these institutes are brought under state managment, the state will be directly responsible for the management and operation of 32 technical institutes statewide. $613,433 to fund partial-year operating costs for the 101 public library systems not already connected to PeachNet and GALILEO. $481,239 to fully fund the personal services costs ofthe 269 state-funded librarians based on education credentials and years of service. $331,489 to fund operating costs to link technical institutes and their satellites to PeachNet and GALILEO. $171,618 to create a Literacy Information System which will enhance management of the state's literacy program. $1,181,916 reduction in public libraries to fund additions for librarian salaries and to fund library Internet connectivity. This reduction comes from state funding for library maintenance and operations. 511 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION Financial Summary Expenditures, Current Budget and Agency Requests , Budget ClasseslFund Sources Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Salaries and Travel of Public Librarians Public Library Materials Talking Book Centers Public Library Maintenance and Operations Personal Services-Institutions Operating Expenses-Institutions Area School Program Adult Literacy Grants Regents Program Quick Start Program JTPA Grant Funds LOTTERY FUNDS: Distant Learning-Satellite Dishes Computer Labs/Satellite DishesAdult Literacy Capital Outlay-Technical Institute Satellite Facilities Equipment-Technical Institutes/ Libraries Lottery-Repairs and Renovations Assistive Technology Grants Total Funds F.Y.1995 Expenditures 5,472,995 736,493 212,705 57,949 591,838 942,995 662,435 242,325 12,000 98,166,575 11,964,272 25,501,720 15,177,327 2,767,458 8,226,318 2,057,940 39,850 999,313 20,014,673 14,385,762 1,466,682 209,699,625 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds 26,379,365 285,071 37,500 26,701,936 State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 144,033,469 36,906,280 180,939,749 2,295 1 F.Y. 1996 Expenditures 5,847,827 832,905 236,044 F.Y.1997 Current Budget 5,419,411 615,390 162,380 106,525 650,946 780,636 991,764 129,316 1,130,255 188,350 626,498 776,588 909,404 126,005 156,000 13,194,595 5,828,704 974,478 4,998,958 110,044,187 13,196,577 29,186,317 17,520,1I7 2,887,129 9,140,265 2,171,279 140,613,872 40,127,262 19,950,378 18,925,500 3,390,682 8,213,630 F.Y. 1998 Agency Requests Redirection Level Enhancements Totals 5,455,770 611,890 161,380 5,455,770 6II,890 161,380 187,271 653,288 749,588 912,165 129,033 156,000 13,802,766 4,646,788 408,036 341,140 187,271 653,288 749,588 912,165 129,033 156,000 14,210,802 4,987,928 974,478 5,699,635 87,864 226,684 1,062,342 5,926,319 139, II 8,983 42,477,502 20,428,886 18,961,177 3,268,421 8,243,319 8,516,408 283,547 281,059 44,532 147,635,391 42,761,049 20,709,945 18,961,177 3,312,953 8,243,319 999,837 32,098,460 6,885,252 5,533,317 240,368,955 1,000,000 25,663,349 21,355,000 5,295,000 500,000 319,01I,434 266,638,340 1,040,000 23,014,495 32,580,095 27,630,435 94,454,295 1,040,000 23,014,495 32,580,095 27,630,435 361,092,635 25,870,136 1,864,533 29,500 27,764,169 21,668,472 39,309,236 60,977,708 164,916,641 45,516,866 212,604,786 204,220,377 53,813,349 258,033,726 2,569 1 3,011 1 512 21,668,472 39,309,236 60,977,708 205,660,632 205,660,632 3,188 1 934,542 21,668,472 40,243,778 934,542 9,254,728 84,265,025 93,519,753 32 61,912,250 214,915,360 84,265,025 299,180,385 3,220 1 DEPARTMENT OF TECHNICAL AND ADULT EDUCATION Financial Summary F.Y. 1998 Governor's Recommendations Budget Classes/Fund Sources Adjusted Base Personal Services Regular Operating Expenses Travel Motor Vehicle Purchases Equipment Real Estate Rentals Per Diem, Fees & Contracts Computer Charges Telecommunications Capital Outlay Salaries and Travel of Public Librarians Public Library Materials Talking Book Centers Public Library Maintenance and Operations Personal Services-Institutions Operating Expenses-Institutions Area School Program Adult Literacy Grants Regents Program Quick Start Program ITPA Grant Funds 5,456,577 615,390 162,380 188,350 653,288 776,588 879,586 129,033 156,000 13,321,527 5,828,704 974,478 4,998,958 141,873,802 40,127,262 20,084,709 18,561,177 3,414,516 8,243,319 LOTTERY FUNDS: Distant Learning-Satellite Dishes Computer Labs/Satellite DishesAdult Literacy Capital Outlay-Technical Institute Satellite Facilities Equipment-Technical Institutes/ Libraries Lottery-Repairs and Renovations Assistive Technology Grants Total Funds 266,445,644 Less Federal & Other Funds: Federal Funds Other Funds Governor's Emergency Funds Total Federal & Other Funds 21,668,472 39,309,236 60,977,708 State General Funds Lottery Funds Total State Funds Positions Motor Vehicles 205,467,936 205,467,936 3,011 1 Redirection Level Funds To Redirect Additions (100,762) (3,500) (1,000) 100,762 (1,079) (27,000) (90,856) 123,435 481,239 (1,181,916) (6,607,305) (161,466) (922,052) (1,040,000) (146,095) 613,433 4,058,983 2,843,195 1,641,740 1,040,000 (10,283,031 ) 10,902,787 (10,283,031 ) (10,283,031) (119) 10,902,787 10,902,787 179 513 Redirection Totals 5,456,577 611,890 161,380 187,271 653,288 749,588 912,165 129,033 156,000 13,802,766 5,828,704 974,478 4,430,475 139,325,480 42,808,991 20,804,397 18,561,177 3,268,421 8,243,319 267,065,400 21,668,472 39,309,236 60,977,708 206,087,692 206,087,692 3,071 1 Enhancements 4,349,611 Totals 5,456,577 611,890 161,380 187,271 653,288 749,588 912,165 129,033 156,000 13,802,766 5,828,704 974,478 4,430,475 143,675,091 42,808,991 20,804,397 18,561,177 3,268,421 8,243,319 1,040,000 15,500,000 3,500,000 1,040,000 15,500,000 3,500,000 24,389,611 291,455,011 4,349,611 20,040,000 24,389,611 21,668,472 39,309,236 6