Gov. Kemp submits record $28.1B state budget plan

ATLANTA – Gov. Brian Kemp unveiled a $28.1 billion budget proposal Thursday that would set a new record for state spending in fiscal 2021 despite the air of fiscal uncertainty surrounding this year’s General Assembly session.

While the spending plan would surpass the then-record $27.5 billion fiscal 2020 budget lawmakers passed last spring, the increase would be far less than the $1.3 billion spending hike the legislature adopted a year ago.

Responding to several months of declining state tax collections, the governor ordered most state agencies last summer to reduce their spending during the current fiscal year by 4% and by 6% percent in fiscal 2021, which begins July 1.

“This past August, I challenged state agencies to identify opportunities to streamline operations, eliminate duplicative programs, and leverage technology to better serve our state’s citizens,” Kemp wrote in his annual budget message to members of the General Assembly. “This fiscal year (FY) 2021 budget aligns existing resources to accomplish those objectives.”

However, some of Georgia’s biggest spending agencies have been exempted from the cuts, including the state Department of Education and the state’s Medicaid program overseen by the Department of Community Health.

Just keeping up with enrollment growth in Georgia’s public schools is a big budget driver. Kemp is asking for $257.2 million to cover enrollment growth in the schools.

Another $89.6 million is earmarked for increased enrollment in Medicaid, an expense unrelated to the governor’s initiatives to obtain federal waivers to tailor Georgia Medicaid to fit the more conservative approach he wants to take with the program.

The $2,000 teacher pay raise Kemp announced in Thursday’s State of the State address would cost the state $362.2 million next year. Another $40.7 million would be used to give state employees making less than $40,000 a year a $1,000 raise.

One area where the state could save money in fiscal 2021 is the annual bond package, if members of the Georgia House and Senate don’t pile on too many additional building projects when they get their turn with the budget.

Kemp is proposing $890 million in bonds to finance construction projects across Georgia, down from this year’s $1.1 billion bond package.

The largest individual project on the list would provide $70 million to expand the Savannah Convention Center on Hutchinson Island, the first installment of what city officials hope will add up to $210 million over three years.

The project would double the exhibit hall space to 200,000 square feet, add a 60-foot-wide hangar door, a new entrance with an all-glass façade, outdoor space, a 40,000-square-foot ballroom, 15 meeting rooms and 900 parking spaces. The center is frequently booked to capacity, forcing it to turn away larger gatherings that would bring in more revenue.

The proposed bond package also includes $54.5 million to build a new state Department of Public Safety headquarters in Atlanta, $42.8 million for a STEM research building at the University of Georgia, $34.8 million to renovate and expand Building 100 at Gwinnett Technical College, $30.7 million to expand Technology Square on the Midtown Atlanta campus of Georgia Tech and $19.5 million toward the $35 million price tag of the University of North Georgia’s Mike Cottrell College of Business in Dahlonega, due to open in 2022.

Ongoing bridge repair and replacement projects across the state would receive a $50 million influx of bond financing.

The governor earmarked about $2.9 million to beef up the gang task force he created last year by adding seven new positions.

A commission the General Assembly created last year to oversee Georgia’s new medical cannabis program would receive $354,577. Supporters of expanding the availability of cannabis oil in Georgia to treat a number of diseases have been complaining about the program’s slow start due to a lack of funding.

Another $316,461 would go toward increasing election security as the state switches over to new voting machines that feature both electronic touch screens and paper ballot backups.

Many of Kemp’s spending requests would be spread over the fiscal 2020 mid-year budget and the fiscal 2021 spending plan.

The governor is recommending $27.4 billion for the mid-year budget, which would cover state spending through June 30. That represents a slight cut from the current $27.5 billion spending plan.

Gov. Kemp following through on teacher pay raise (UPDATE)

ATLANTA – Gov. Brian Kemp vowed Thursday to give Georgia teachers the second installment of a $5,000 pay raise, despite what promises to be a tight budget year.

The Republican governor told a joint session of the General Assembly his fiscal 2021 budget proposal will include a $2,000 increase for public-school teachers, who got the first $3,000 of the two-step raise last year.

“This will enhance retention rates, boost recruitment numbers and improve educational outcomes in schools throughout Georgia,” Kemp said during a 31-minute State of the State address. “By investing in education, we can build a strong house, a place where everyone learns and all Georgians have an opportunity to thrive.”

The timing of the teacher raise had been in doubt going into the 2020 legislative session that began on Monday. State tax collections came in far below expectations during the first half of the current fiscal year, which prompted Kemp to order most state agencies to reduce spending by 4% during this fiscal year and 6% in fiscal 2021.

On Thursday, the governor didn’t mention specific cuts he is recommending in his budget proposals.

But he peppered the State of the State speech with proposals to increase spending in areas he considers priorities, including adoption and the fight against criminal gangs and human trafficking.

Kemp asked lawmakers to triple Georgia’s adoption tax credit from $2,000 to $6,000 and lower the age qualification for adoptive parents from 25 to 21. He also announced plans to launch a commission to look for ways to improve the state’s foster care system.

“Our goal is simple: to keep our kids safe, to encourage adoption and ensure that young Georgians – no matter where they live – has the opportunity to live in a safe, happy, loving home,” he said.

While the governor was less specific on what he wants to do on gangs and human trafficking, he promised to push for tougher legislative measures aimed at street gangs and human traffickers.

“Gangs and drug cartels are fueling another public safety crisis,” he said. “Every day, hundreds of people are bought and sold for sex in our state. … We must advance legislation that closes loopholes that leave children vulnerable to exploitation.”

Kemp also endorsed an effort already underway early in this year’s General Assembly session to prohibit so-called “surprise billing” in Georgia, which occurs when patients are charged extra for a service provided inside their insurance plan’s network by an out-of-network specialist.

“We have hardworking Georgians who by no fault of their own are on the brink of bankruptcy because there’s no transparency in health-care billing,” he said. “Families are living on a prayer because the system is rigged against them. This year, we will implement long-overdue reforms that put our families first.”

Finally, Kemp announced the state will honor newly retired U.S. Sen. Johnny Isakson, R-Ga., by creating a Johnny Isakson Professorship for Parkinson’s Research at the University of Georgia. After 45 years in public service at the state and federal levels, Isakson announced in September he would leave office at the end of last year, citing health problems including Parkinson’s disease.

“Through this partnership, we will use technology and innovation to break new ground,” Kemp said. “With the grit and resolve of Johnny Isakson, we will move one step closer to a cure.”

After the governor’s speech, Senate Democratic leaders said Kemp’s talk was thin on details about major issues this year like the state’s budget cuts.

Senate Minority Leader Steve Henson said lawmakers need more insight on what revenue-raising measures the governor would support beyond an online sales tax, which cleared both chambers Thursday afternoon.

“We were surprised that the State of the State seemed to lack specificity and depth,” said Henson, D-Stone Mountain.

Other Democratic leaders in the Senate took aim at Kemp’s budget cuts as well his anti-gang initiative.

Senate Minority Whip Harold Jones said Georgia already has tough anti-gang laws and needs more funding for judges and prosecutors to enforce them.

“What is not needed is any new draconian efforts,” said Jones, D-Augusta.

Other Democratic senators speaking at a news conference Thursday called for full Medicaid expansion and for restoring the HOPE scholarship to cover full student tuition.

This story is updated with the Democratic response to Kemp’s address.

Gov. Kemp following through on teacher pay raise

ATLANTA – Gov. Brian Kemp vowed Thursday to give Georgia teachers the second installment of a $5,000 pay raise, despite what promises to be a tight budget year.

The Republican governor told a joint session of the General Assembly his fiscal 2021 budget proposal will include a $2,000 increase for public-school teachers, who got the first $3,000 of the two-step raise last year.

“This will enhance retention rates, boost recruitment numbers and improve educational outcomes in schools throughout Georgia,” Kemp said during a 31-minute State of the State address. “By investing in education, we can build a strong house, a place where everyone learns and all Georgians have an opportunity to thrive.”

The timing of the teacher raise had been in doubt going into the 2020 legislative session that began on Monday. State tax collections came in far below expectations during the first half of the current fiscal year, which prompted Kemp to order most state agencies to reduce spending by 4% during this fiscal year and 6% in fiscal 2021.

On Thursday, the governor didn’t mention specific cuts he will recommend when he releases his budget recommendations later this week.

But he peppered the State of the State speech with proposals to increase spending in areas he considers priorities, including adoption and the fight against criminal gangs and human trafficking.

Kemp asked lawmakers to triple Georgia’s adoption tax credit from $2,000 to $6,000 and lower the age qualification for adoptive parents from 25 to 21. He also announced plans to launch a commission to look for ways to improve the state’s foster care system.

“Our goal is simple: to keep our kids safe, to encourage adoption and ensure that young Georgians – no matter where they live – has the opportunity to live in a safe, happy, loving home,” he said.

While the governor was less specific on what he want to do on gangs and human trafficking, he promised to push for tougher legislative measures aimed at street gangs and human traffickers.

“Gangs and drug cartels are fueling another public safety crisis,” he said. “Every day, hundreds of people are bought and sold for sex in our state. … We must advance legislation that closes loopholes that leave children vulnerable to exploitation.”

Kemp also endorsed an effort already underway early in this year’s General Assembly session to prohibit so-called “surprise billing” in Georgia, which occurs when patients are charged extra for a service provided inside their insurance plan’s network by an out-of-network specialist.

“We have hardworking Georgians who by no fault of their own are on the brink of bankruptcy because there’s no transparency in health-care billing,” he said. “Families are living on a prayer because the system is rigged against them. This year, we will implement long-overdue reforms that put our families first.”

Finally, Kemp announced the state will honor newly retired U.S. Sen. Johnny Isakson, R-Ga., by creating a Johnny Isakson Professorship for Parkinson’s Research at the University of Georgia. After 45 years in public service at the state and federal levels, Isakson announced in September he would leave office at the end of last year, citing health problems including Parkinson’s disease.

“Through this partnership, we will use technology and innovation to break new ground,” Kemp said. “With the grit and resolve of Johnny Isakson, we will move one step closer to a cure.”

Jannine Miller named state transportation planning director

ATLANTA – Gov. Brian Kemp is turning to a veteran in Georgia transportation circles to serve as the state Department of Transportation’s next planning director.

Kemp named Jannine Miller Wednesday to succeed the post vacated by former Georgia Rep. Jay Roberts last September.

Miller is returning to Georgia after serving as senior advisor to U.S. Transportation Secretary Elaine Chao.

Before that, she built a lengthy track record with the state, including stints at the helm of the Georgia Regional Transportation Authority and the state Department of Economic Development’s Center for Innovation and Logistics.

“The planning director sets the long-term strategic goals for Georgia’s infrastructure investments and coordination at the federal, state and local levels,” Kemp said. “Jannine’s experience in transportation policy, budgetary analysis and planning, and big-picture infrastructure development is truly unparalleled, and I look forward to working with her in the years ahead.”

The General Assembly created the planning director position at the DOT more than a decade ago to increase coordination between the transportation agency and the governor’s office.

Roberts became planning director in 2015 after the Republican from Ocilla ended a legislative career highlighted by his successful sponsorship of a $900 million transportation funding bill.

Gov. Kemp saving 2020 priorities for State of the State speech

ATLANTA – Gov. Brian Kemp decided no news is good news Wednesday, breaking from the tradition of governors announcing a new initiative or two at the annual Eggs and Issues breakfast.

Instead, the Republican governor will wait until Thursday’s State of the State address to a joint session of the General Assembly to talk about his priorities for the 2020 legislative session.

“Tomorrow, I will outline my blueprint for a stronger, safer and more prosperous Georgia to the people of our state,” Kemp posted on his Twitter account. “But for today, let’s focus on a historic 2019.”

True to his word, the governor devoted his speech to more than 2,600 political and business leaders – a record for the Eggs and Issues breakfast sponsored by the Georgia Chamber of Commerce – to his administration’s accomplishments during his first year in office. His list included the creation of a task force under the Georgia Bureau of Investigation to target criminal gangs, the formation of a commission led by first lady Marty Kemp to combat human trafficking and a $3,000 teacher pay raise.

Kemp also touted the authorization he received last year from the legislature to take a “Georgia-centric” approach to health-care reform by seeking two federal waivers to expand the state’s Medicaid program through a more conservative approach than the Affordable Care Act allows and offer an alternative to Obamacare’s health-insurance exchanges aimed at lowering insurance premiums.

“This year, we will build off that momentum,” he said. “We cannot and will not take our feet off the gas.”

Lt. Gov. Geoff Duncan did make news following Kemp’s speech by announcing the formation of a task force that will look for ways to fulfill Duncan’s pledge to make Georgia the technology innovation capital of the East Coast.

The Georgia Innovates Task Force will be co-chaired by former U.S. Sen. Johnny Isakson, R-Ga., and G.P. “Bud” Peterson, the retired former president of Georgia Tech. It will include a host of business and academic leaders from around the state, among them Paul Bowers, president, chairman and CEO of Georgia Power Co.; Raphael Bostick, president and CEO of the Federal Reserve Bank of Atlanta; and Barbara Rivera Holmes, president and CEO of the Albany Area Chamber of Commerce and a member of the University System of Georgia Board of Regents.

“I have asked this group of leaders to come up with big ideas to put Georgia on the map when it comes to technology and making our state as important as Silicon Valley,” Duncan said. “I want Georgia to be a national leader in technology research, development and implementation and allow for growth and evolution across all parts of Georgia.”

Georgia House Speaker David Ralston warned the 2020 session is likely to be a long one, as lawmakers grapple with decisions on the spending cuts Kemp will recommend to adjust for a sluggish revenue outlook.

“Georgia is a big, growing, dynamic state,” said Ralston, R-Blue Ridge. “Budget decisions that impact the people of this state are too important to be influenced by a legislative calendar. We’ll take the time necessary to get the work done.”