Notes from the Senate 

by | September 5, 2019 4:30 pm

by SENATOR JACK HILL, 4th District

HERE’S WHERE EVERY PENNY OF THE BUDGET INCREASES WENT

Last week, I mentioned those who claim state spending has increased billions of dollars as the state budget has increased over the years. They say this to infer that somehow spending has been out of control or it must have been for there to have been these increases.

BUDGET INCREASES SINCE 2010

Of course, 2010 was in the middle of the Great Recession and the state funds budget dropped to a low of $17 billion as budget writers reduced state spending to meet the dramatic decline in state revenues. Some $3.2 billion in Federal funds delayed some cuts until 2012 but even then the budget was less than before the recession.

State Funds Budgets- As Passed

2009 $ 18,903,699,531 2010 $ 17,074,653,179 2011 $ 18,063,622,184 2012 $ 18,503,799,022 2013 $ 19,325,217,673 2014 $ 20,234,238,575 2015 $ 21,112,906,096 2016 $ 23,065,473,796 2017 $ 24,345,494,024 2018 $ 25,413,015,092 2019 $ 26,933,425,042 2020 $ 27,544,569,129

WHERE DID THE NEW SPENDING EACH YEAR GO?

The staff of the Senate Budget and Evaluation Office went through budgets dating back to 2010 and analyzed where all of the increased spending each year went and categorized the expenditures. First, though, here are the categories of the areas where new expenditures are divided:

 Non-Discretionary Spending Reductions

Discretionary Spending Other/State Funds

ARRA (Federal Emergency Funds) Net of spending cuts

Bonds

TOTAL

$ 11.157

$ -8.082 $ 3.727

$ 2.4

$ -784.5

$ -43.2 $8.373

Billion Billion Billion Million

Million

Million Billion

(Entitlements, based on formulas) (Cuts during recession)

(Federal funds totaled $3.2 Billion)

HOW DOES THAT SPENDING BREAK DOWN….WHAT WAS IT SPENT ON?

 DISCRETIONARY ADDS…TOTAL OF ALL 11 YEARS

PreK-12 (Discretionary Adds) Merit Pay

Natural Resources, Economic Development, Transportation (Discretionary Adds)

Provider Rates, CoPays and Private Disproportionate Share Adds

Health & Human Services (Discretionary Adds) General Government (Discretionary Adds) Higher Education (Discretionary Adds)

Law Enforcement Pay

Prisons, Courts, Public Safety (Discretionary Adds)

Teacher Pay Annualize

Judicial Pay

Nurse Pay

Revenue Compliance (Discretionary Adds)

$1.01

$ 501.3

$ 467.2

$ 422.3 $ 465.4 $ 98.4 $ 259.3 $ 128.7

$ 245.2 $ 60.3 $ 2.3 $ 13.1 $ 52.2

Billion Million

Million

Million Million Million Million Million

Million Million Million Million Million

 TOTAL $3.727 NON-DISCRETIONARY ADDS

K-12 Needs $2.728 Medicaid Deficits, Growth, FMAP Needs $2.730 Higher Education Needs $ 890.5 Mental Health

(Hospitals, DOJ Agreement) Needs $ 441.5 Corrections Needs $ 219.6 Human Service Needs $ 340.8 Juvenile Justice Needs $ 53.8 Other Non-Discretionary Needs $ 617.6

Billion

Billion Billion Million

Million Million Million Million Million Million Million

Tenet Replace $ Other $

Non Discretion: Employee Benefits/Operations

92.3 2.9

Retirement Needs SHBP/Regents Health Needs

Administrative or Other Benefits Needs

Cyber Rent TOTAL

$ 1.319 Billion $ 286.7 Million

$ 112.9 Million

$ 1.6 Million

$ 45,137 Thousand $ 1.723 Billion

 Other State Funds (Lottery,

Motor Fuel, Mortgage) $ 2.400 Billion

THE BOTTOM LINE

The final result is that of the net $8.3 Billion in new spending, the largest items of spending are Medicaid Deficits and Growth, $2.73 billion, and Education adds including PreK-12, $1.01 Billion, and K-12 needs, $2.728 Billion. Additionally Retirement obligations total $1.319 Billion. Just those four items above total $7.787 Billion of the increased spending.

The increase of $8.3 billion over 11 years represents only 2.6% of total spending. That’s certainly not excessive in a period where the state grew at least 831,822 in population.

I may be reached at 234 State Capitol, Atlanta, GA 30334; 404-656-5038 (phone); 404-657-7094 (fax); e-mail at Jack.Hill@senate.ga.gov; toll-free at 1-800-367-3334, day or night; or by phone at my Reidsville office, 912-557-3811.

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