Georgia’s fiscal year runs from July 1 to June 30. While state lawmakers have approved the amended FY20 budget to carry Georgia through that June 30 date, the FY21 budget was not approved prior to the called recess of the General Assembly because of the COVID-19 outbreak.
The House did give its approval to a $28.1 billion budget for FY 21 and sent it to the Senate. However, Senators never had a chance to vote on this proposal before the March 13 recess.
This brings a number of questions into play: When will lawmakers return to the General Assembly to continue work on the FY21 budget, how will the new budget be impacted by COVID-19, and how will the budget and revenues be impacted by the income tax filing delay. The federal government had already delayed the deadline until July 15 and yesterday Governor Kemp extended the state tax deadline to July 15, matching the federal tax deadline.
“We don’t have anything solid to work with right now, it’s just way too early,” said Rep. Terry England (R-Auburn), House Appropriations Chair. “A lot depends on the duration of this situation, but I do think once we all get moving again things will rebound very quickly, especially if Congress can get something done shortly.”
The State’s amended FY20 budget, which could be in jeopardy as a result of COVID 19, included $100 million to fight the pandemic, money that was taken from the state’s reserves. The amended budget also included $5 million directed at struggling rural hospitals.
“In light of the flooding at Grady Hospital in Atlanta and the outbreak of COVID-19, it has brought to the forefront the need to have a stable safety net in place for health care,” said England. “Our rural hospitals are the backbone of that network even though we do not always think about them that way. These funds and the strike team will help stabilize those facilities in an immediate and long-term fashion.”
These funds will be expended through the Office of Rural Health and be based on the number of beds. Additionally, the funds will bring an agreement by the hospitals for a review by a Department of Community Health “strike team” who will evaluate the hospitals and recommend best practices.
England said the House proposed version of FY21 includes another $10 million for Georgia’s rural hospitals.
Income taxes are the top source of revenue for the state, and Georgia collects about 20 percent of its income taxes in March and April. With the state and federal government delaying their deadlines, it is sure to have a major impact on the budget. Many lawmakers had already begun expressing concerns that the state won’t be able to meet the mid-year budget without using state reserves, federal assistance or cutting spending as a result of the virus’ economic impact.
