ATLANTA — Gov. Nathan Deal’s recommendation to lawmakers on how to fund state government for the next fiscal year includes money to design, build and equip classrooms at the University of Georgia as well as merit pay raises and additional medical-residency slots at local hospitals.
The comprehensive spending plan for $21.7 billion in state funds became public Friday morning after lawmakers had left the Capitol to return to their districts. He estimates the slowly improving economy will boost tax collections by 4 percent with existing tax rates, adding $900 million to be spent with the expected overage going into reserves.
Last year he based his budget on 3.4 percent growth and got 4.8 percent.
“That differential between what we spent and what we collected is deposited into our Rainy Day Fund,” he said Wednesday during his State of the State Address. “Every budget cycle since I have been governor we have added to that fund so that it has increased by 643 percent since I took office.”
The legislative appropriations committees will begin reviewing it next week and approve it with their changes in early spring. It takes effect in July.
Approval will keep construction crews busy at UGA. Among the projects getting the governor’s blessings are the second phase of the Business Learning Community for $43 million, the Center for Molecular Medicine for $17 million and equipment at the new Science Learning Center for $3.3 million.
Local hospitals would get a share of $173,000 for creating 20 new residency slots where newly graduated physicians get hands-on experience before going to practice on their own.
Funding for the University System of Georgia will also swell by $52 million under the governor’s plan to reflect rising enrollment and the maintenance needs for added buildings. But what each school gets will be up to the Board of Regents which is shifting to allocations based on graduation rates instead of the number of students.
Among other features of Deal’s proposal that could also have a local impact is a $280 million boost in school funding for daily operations that’s based on 1.35 percent growth in student enrollment. Local school boards can decide whether to use their share on pay raises, ending furloughs, restoring cut school days or covering other expenses.
He is appointing a task force to recommend ways to make the formula more flexible for districts with the premise that will make the money go farther.
“While we must certainly address the outdated funding formula, education still remains a top priority in our budgets,” he said. “This year’s budget coupled with my proposal for next year’s budget represents an infusion of over one billion additional dollars for K-12 education.”
Sid Chapman, president of the Georgia Association of Educators, expressed optimism when he heard that.
“A restoration of $1 billion in austerity funds is a good beginning after years of education taking a back burner in the state budget,” he said. “The establishment of the Education Reform Commissions is the right step to fully evaluate the full context and content of how to evolve our k-12 delivery mechanism.”
Deal is also calling for $271 million in bonds for school districts needing additional classrooms to compete for. Another $11 million goes to help rural districts match the larger districts which have a richer tax base.
State employees have a chance at a piece of $28 million the governor is recommending for merit pay raises. Finding and keeping workers for the state’s hard-to-fill positions could be eased by $14 million in added payroll.
Deal is aiming $2.6 million toward the creation of the Georgia Film Academy to train workers for the behind-the-scenes technical jobs that movie companies have also had a tough time filling.
Follow Walter Jones on Twitter @MorrisNews and Facebook or contact him at walter.jones@morris.com.
