“Bittersweet” isn’t the word often used when state officials talk about budgets. But nothing about 2020 has fit the mold, and “bittersweet” was the word Georgia Gov. Brian Kemp used Tuesday when signing the state’s $26 billion FY21 budget that takes effect today.
“To be honest, today is bittersweet,” said Kemp, as he was surrounded by Appropriations Chairs Rep. Terry England (R-Auburn) and Sen. Blake Tillery (R-Vidalia). “Yes, this budget reflects our values as a state. It funds core services and protects the vital mission of our state agencies. This budget prioritizes education, healthcare, and public safety. It puts people over politics and helps ensure a safer, stronger tomorrow for all Georgians. But this budget speaks to some of the hard choices made by state leaders to streamline and innovate. While we were able to avoid draconian cuts, getting this budget to balance was hard. These are challenging times, and the budget reflects that reality.”
Legislators had one constitutional requirement when they resumed the 2020 session of the General Assembly a few weeks ago — to pass a balanced budget. They were initially tasked by Governor Kemp to cut the budget by 14 percent. In the end, as revenues came in slightly higher than expected, state officials agreed on a budget that reflected a 10 percent cut. Kemp agreed to pull $250 million from the state’s reserve funds into the state budget that allowed the state agencies to avoid furloughs.
“I want to commend Chairman England, Chairman Tillery, their colleagues, and staff for working so hard to fulfill their duty, even during these unprecedented times,” Kemp said. “Six months ago, we gathered under this Gold Dome to kick off the 2020 Legislative Session. Excitement was high, and the expectations were even higher. Little did we know, the unthinkable was right around the corner. COVID-19 put our plans and progress on pause as it spread across the world, threatening the lives of Georgians far and wide. In its wake, this deadly virus spurred an economic recession, impacting every industry in every corner of our great state.”
The final budget cut $950 million from in K-12 public education funding — but the reduction was lower than originally expected and fully funds enrollment growth and training for public school education. According to Kemp, it recognizes a 7.8 percent increase in enrollment at state charter schools, and it provides $55 million in additional lottery funds for the HOPE Scholarship to meet projected demand.
“With 53 percent of the 2021 budget dedicated to education, we continue to put students first,” Kemp said.
Most programs in the Georgia Department of Education’s budget absorbed the 10 percent cut.
However, according to Chairman England, the equalization program, which sends supplemental dollars to low-wealth districts, will be fully funded in FY 2021.
“While much has changed over the last several months, my priorities as Georgia’s governor have remained the same. With the closing of schools, Georgia families have a renewed appreciation for our teachers, counselors, specialists, and staff. These men and women are unsung heroes, and we appreciate their efforts during the pandemic to adapt, educate, and inspire students in every part of our state,” said Kemp.
The FY21 budget fully funds projected growth in Medicaid and Peach Care, which is nearly $270 million. And it includes $19 million in new funding, allowing for six months of postpartum Medicaid coverage for Georgia mothers, effective upon approval by the Centers for Medicaid and Medicare Services.
“These big investments will help us enhance health outcomes. This budget will ensure a healthier tomorrow for all Georgians,” said Kemp.
“Finally, we know that Georgia’s potential as a state is directly tied to public safety. Our future hinges on the safety and security of our citizens. During this healthcare crisis, we have seen law enforcement officers play a vital role in the fight against COVID-19,” said Kemp. “Moving forward, we must continue to support efforts to crack down on sex trafficking, dismantle street gangs, protect communities from violence, and pursue justice. We must stand with law enforcement now – just like they stood with us during our most difficult days.”
According to Kemp, the FY21 budget includes resources to expand the GBI Gang Task Force, fund a 50-person trooper school, and support personal services and operating expenses for motor carrier officers in the Ports Corridor.
“These public safety dollars will pay huge dividends as we emerge from this healthcare and economic crisis. We will keep our neighborhoods, communities, and families safe and secure,” the Governor added.
The budget includes a $1.1 billion bond package designed to “spur growth and opportunity through numerous construction activities.” Kemp pointed out that $340 million of the total package is for major repairs and renovations of state-owned facilities and transportation infrastructure. Also included is $70 million in bond funds for the expansion of the convention center at the Savannah-Georgia Convention Center Authority, $12 million in bond funds for facility repairs and improvements at the Georgia World Congress Center Authority, and $115 million in bond funds for the repair, replacement, and renovation of roads and bridges statewide through the Georgia Department of Transportation.
“This bond package will help Georgia regain its competitive advantage. We will not let coronavirus undermine our progress,” Kemp said.
