Day 31 - March 12, 2008

With Crossover Day behind us and both the Amended FY 08 and the FY 09 budgets still unresolved, legislative activity will begin to slow down.
 
Earlier this week, Governor Purdue released his revised revenue estimate concerning the State's Budgets for FY 2008 (Amended) and FY 2009. In a press release announcing this news the governor stated,
 
"For FY08, Governor Perdue is reducing the revenue estimate by $65 million from his original proposal.   The original AFY08 recommendation was $332.6 million. In order to achieve a balanced budget, Governor Perdue identified an equivalent amount of spending to eliminate from his AFY08 recommendation.   The reductions recommended include $40 million originally allocated for one-time equipment and technology infrastructure upgrades and $25 million in funding for school buses.

For FY09, Governor Perdue reduced the revenue estimate by $245 million. The original FY09 recommendation was $21.425 billion.  The equivalent reduction in spending recommended by Governor Perdue would be derived from programs across state agencies.  Among the spending reductions Governor Perdue recommended are:

• Eliminating $16.9 million for funding the Governor’s Health Insurance Partnership.
• Reducing $47.2 million in Major Repairs and Renovations (MRR) for the University System of Georgia and the Department of Technical and Adult Education.   These projects would instead be funded through a bond package.
• Reducing the proposed raise for state employees, teachers and faculty at the Board of Regents and the Department of Technical and Adult Education from 2.5 percent to 2 percent.  This would save $46.1 million.
• Reducing $44.1 million in additional funds into the Other Post Employee Benefits (OPEB) fund.
• Reducing $5.5 million in the Governor’s Very Important Parent (VIP) Recruiter Program from the original $14 million proposal.

In addition to the recommended reductions, Governor Perdue has asked agency heads to maximize savings by avoiding unnecessary travel, restricting hiring for non-critical positions and any other reductions identified by agencies.   The Governor is also encouraging each agency head to enact strict approval processes for new expenditures, and has asked the Office of Planning & Budget to closely monitor budgets.  These limitations on discretionary spending are intended to mitigate the potential impact of reductions in revenue collections for Fiscal Year 2008."
 
 
The Governor’s proposed cuts also impact upon services for individuals with developmental disabilities, purchase of textbooks and buses for public schools, and graduation coaches.
 
A new adjournment resolution has been passed to allow time for budget discussions.  The legislature will be in adjournment Thursday, March 13, 2008 through Monday, March 17^th.  Legislators will be in session on Tuesday, March 18^th for legislative day 32; Wednesday, March 19^th for legislative day 33; and Thursday, March 20^th for legislative day 34.  They will be in adjournment from Friday March 21^st through Wednesday, March 26^th.  They will reconvene on Thursday, March 27^th for legislative day 35.