The Georgia Senate Appropriations Committee on Wednesday approved a scaled-back spending proposal for the upcoming fiscal year, which starts July 1.
Before the General Assembly took an unexpected break in its legislative session March 13 because of COVID-19, the House had approved a $28.1 billion budget proposal for fiscal year 2021.
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Budget writers, however, now have to slash spending by 11 percent because of the economic effect resulting from the response to the COVID-19 outbreak.
“To call this an unusual or abnormal time would be an understatement,” said Sen. Blake Tillery, R-Vidalia, who chairs the Appropriations Committee.
The public health crisis not only caused the General Assembly to closed its doors, but it also stifled the state’s economy, decreasing state revenues by 4 percent as of May, economists said.
The Appropriations Committee worked in small groups ahead of the relaunch of the legislative session, holding subcommittee meetings with agency heads about their priorities. Agencies were directed to present their budget cuts to lawmakers by May 20.
“You don’t reduce funds by 11 percent, or $2.6. billion, without somehow affecting every budget area and correspondingly every corner of the state,” Tillery said.
Education accounts for more than half of the state budget.
The Senate proposal maintains allocations for Pre-K education, which is covered by revenue from the state lottery. It also reserves more than $342 million in bonds for K-12 classrooms but kept reductions on higher education spending.
The committee worked to reduce furloughs in the Department of Human Services from 24 days for the year to 12 days. It also used existing federal funds to fill gaps in Child Welfare Services, and it maintained waivers for Georgians with disabilities.
The Senate proposal keeps about $990 million for landfill remediation, land conservation and cleanup for local governments. It also keeps funding for bridge replacement and repairs and maintenance at state facilities.
However, more than $200 million in the proposal for road construction and maintenance was slashed.
Mental health and substance abuse programs also will face cuts in the year, and thousands of vacant state positions would be eliminated.
County health boards would have to fight the COVID-19 pandemic with $14 million less under the Senate proposal.
Amid the outbreak, the state saw an unexpected rise in health care, public safety, and unemployment administration costs, among other things.
The state may be able to fill revenue gaps for those expenses through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The federal bill earmarked more than $4 billion for Georgia, which is allowed to use it to cover COVID-19 response costs.
Legislators agreed to take the 11 percent pay cut to their $17,000 salaries in the proposal. Lt. Gov. Geoff Duncan would get paid $12,600, a 14 percent cut.
The House will have to review the spending plan once it passes the Senate. Once both chambers agree on a final budget, the plan will be sent to Gov. Brian Kemp for approval.
