Staff and Wire Report
ATLANTA — The House Appropriations Committee passed a revised $18.9 billion budget on Wednesday, relying in part on federal stimulus money that has not even reached the state yet.
The revised spending plan cut $2.6 billion from the budget legislators passed during less fiscally frustrating days last session.
That $2.6 billion represents the largest budget deficit Georgia has ever seen, the result of tax revenues coming in far below projections, officials said.
To pass a balanced 2009 budget, legislators relied at least some on anticipated stimulus funds rather than just cuts.
“The most significant thing we did is we recognized $145 million from the stimulus package that will be coming,” said state Rep. Jay Neal, R-LaFayette and an Appropriations Committee member. “We decided to restore $145 million of the austerity reductions that the governor had proposed.” he said.
The decision to restore $145 million does not mean the Quality Basic Education formula is fully funded, but area educators said it’s a great help.
Gov. Perdue has pushed “austerity cuts” onto Georgia schools for years, keeping state funds short of the amount the QBE formula stipulates for students in the name of frugality.
School superintendents Melissa Mathis, of Walker County, and Denia Reese, of Catoosa County, both said Wednesday they were very grateful some of the money was put back.
Mrs. Mathis said that restoring austerity cuts that have mounted over the past decade “is the single greatest financial gesture that could be made” to show support for education.
The money is not a certainty, though.
The budget goes to the full House today, and must also pass the state Senate and get Gov. Sonny Perdue’s signature.
Then legislators take on the somber duty of crafting a budget for fiscal 2010, which begins July 1.
A Wednesday report from economic forecasters at Georgia State University projected worsening economic conditions in Georgia, with recovery not starting until 2011.
The report predicts unemployment in the state will reach 9 percent this year and top out at 10.5 percent in 2011 before starting back down.
House Appropriations Committee Chairman Ben Harbin, R-Evans, said he did not think the budget would require additional furloughs of state employees. Almost a quarter of the state’s roughly 100,000 employees have been forced to take off furlough days without pay to help Georgia cut costs.
The future was less certain.
“This economy is changing so quickly, I don’t want to build any false hope,” Rep. Harbin said.
The spending plan does restore $1.3 million so the Department of Revenue will not have to furlough its auditors and tax collectors. Lawmakers said those personnel will pay for themselves by helping make sure Georgia taxpayers pony up their fair share. State Revenue Commissioner Bart Graham said that each auditor collects an average of $1 million in additional state revenue a year.
The budget also scrapes together $428 million for the Homeowner Tax Relief Grant, funding legislation Gov. Perdue signed last week.
That will keep local governments from having to send out supplemental property tax bills averaging $200 to $300 a household — what many were considering if the grant program they counted on when writing their budgets had not been funded.
In the future, the homeowner tax relief grants will be tied to the state’s economic performance.
Correspondent Jake Armstrong, Staff Writer Chloé Morrison and Associated Press Writer Shannon McCaffrey contributed to this report.
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