The Legislature is in recess this week, but the Senate held a few appropriations meetings to make use of the time off.   

For the first time in 18 months the State's revenues showed an ever so slight up tick of one percent - collections for the month of March 2010 (FY 2010) totaled $998,239,000 compared to $987,986,000 for March 2009 (FY 2009), an increase of $10,523,000.  While this is positive news, it will likely not provide any relief from the necessary cuts that Lawmakers will make to the State's Budget for FY 2011. 

Members of the Transportation Conference Committee also met this week to vet out transportation funding issues. Members seemed hopeful that an agreement would be reached before the end of the Session. You will recall that this issue lingers from last Legislative Session – however, many changes have occurred since then, including the placement of a new Department of Transportation Commissioner Vance Smith and a new Planning Director Todd Long plus new Conferees to look at reaching a solution. 

A new candidate has launched a gubernatorial campaign on the Republican side this week.  Ray Boyd, a prominent real estate developer, has commenced a campaign for Georgia's top job with more than two million of his own money. He's 67 years old from Morgan County who is a former United States Air Force Captain. 

Senate Appropriations- Higher Education Subcommittee 

Chairman of the Higher Education Subcommittee Seth Harp (R-Midland) opened the meeting warning the Subcommittee and members of the audience that, if the House doesn't approve of the Hospital Fee Bill (HB 307) with the Senate's amendments, the Senate will not be able to pass the Bill. Thus, the State would loose a revenue stream of $129 million. Additionally, if the "fee bill" is not passed another $129 million will be lost in revenue. Sen. Harp warned that most of the money to plug necessary holes in the revenue would come from education.  He further urged the Universities to leverage their populations in order to push Legislators to vote for this initiative.  

Tom Daniels, on behalf of the Board of Regents, spoke to the Committee. He told the Subcommittee that the Board has figured in another 3.14 percent cut, and offered a brief summary of all the proposed funding cuts.    

Advanced technical education will absorb $316,000 in cuts. The EI² operation, a business outreach function of Georgia Tech, has proposed to cut its headcount by 10 percent, as well as the elimination of certain programs.   

Agriculture stations and cooperative extensions have already lost 157 faculty and staff positions and are looking at cutting an additional 32 positions.   

North Georgia College boasts one of the nation's leading military corps at a public university, but it will also be affected by the cuts.  

The Chancellor's office faces $5.7 million in reductions.  Their reductions are mostly in travel costs.  

Senate Appropriations- Agriculture Subcommittee 

Commissioner Tommy Irvin explained to the Subcommittee that the Department of Agriculture has already had to cut $1.4 million from its budget.

Sen. John Bulloch (R-Ochlocknee) stated that Senators are trying to find some other way to continue operations rather than by increasing fees.  For some items, they are also looking at ways to place costs in the general obligation bonds.  

There has been a continuing issue with funding the commodities program and that funding does not appear to be receiving any increase in the near future.  $700,000 will be taken from the Market Bulletin budget with perhaps a minimal annual subscription cost of $11 implemented for this publication.  The Poultry Market News has been proposed to become an on-line publication which will also result in savings to the Department. 

Senate Appropriations- Natural Resources Subcommittee 

The Georgia Forestry Commission has experienced a total reduction of $10.2 million, a 26 percent total reduction with the additional three percent cut. A total of nine percent of the forestry units have been closed, and those firefighters have been housed in adjacent county units. An additional 72 positions have been eliminated. Motor vehicle reductions total $347,000, but 15 trucks are in dire need of being replaced. One good report was that the fire season has been relatively quiet this year.  Senators indicated that they desired to work on ways to replace necessary equipment in order to keep firefighters safe. 

The Soil and Water Conservation Commission will take a total 13 percent cut with the new three percent reduction. The three percent cut totals $105,000 to the Commission. Employees have been reduced to 60 hours every two weeks. 

The Department of Natural Resources' budget has taken a 33 percent cut in total. Even with these cuts, the Department has strived to keep public safety and health their main focus. All funding has been eliminated for the historic trust. Two wildlife management areas have been closed, one in Southeast Georgia and one in North Georgia. There has been no law enforcement class in three years and 15 counties have no rangers.  In addition, 12 more rangers are set to retire. The Department has put out a Request for Proposal to privatize all of its golf courses and lodges in hopes of saving money. If privatization does not prove to be cost effective, there might be one or two State owned/operated lodges closing next year. 

Senate Appropriations- Human Services Subcommittee 

Department of Labor 

Michael Thurmond, Commissioner of the Department of Labor, spoke on the impact of the severity of the recession. The Department has experienced a $1.5 million cut, mostly absorbed in the personal services area. Commissioner Thurmond was asked questions concerning the Department's role in providing safety inspections on elevators.  He described elevators as being safe; they were just not being surveyed on a strict timeline.  Commissioner Thurmond's Department is also responsible for surveying amusement rides – which he believes are more dangerous with the advent of technology.  Sen. Renee Unterman (R-Buford) questioned if local governments should take over elevator safety inspections, as it does not appear to be self-sustaining.  Thurmond explained that local governments used to maintain that function and the City of Atlanta was the last to transfer the inspection process to the State. 

Commissioner Thurmond did comment that in the last 30 to 40 days more jobs have been posted on the Department's website in the manufacturing arena, showing a slight improvement from the past 18 months. Unemployed individuals that complete training, show a 68 percent hiring rate. The highest unemployment numbers in the State remain in the Dalton and Rome areas; Dalton's local rate sits at 12.2 percent.  

Department of Veterans Affairs 

Commissioner Wheeler, of the Veterans Department, told the Subcommittee that there would be a $755,000 additional cut to the Department. $438,000 of that would come from Milledgeville veteran's home and the remaining $300,000 from the facility in Augusta. The federal matching rate lies at $74.42, which is balanced in State monies.  The per diem rate in Milledgeville is around $89.00.  Admission into these veteran's facilities require residency in Georgia for five years as well as active military service. Currently, there are 41 veterans on the waiting list statewide for these services.  

Department of Human Services 

Commissioner B.J. Walker, highlighted that the Department will take a $480 million cut for FY 2011, with a $16.5 million reduction for revenue alignment. Fifty percent of the cuts have been taken in personnel reductions. Employees are required to take 12 furlough days; those started in October 2009 with the last three months requiring employees to take two days per month. As before, the Department must take into account where matching funds are provided before they make cuts.  They also look at maintenance of effort provided by partnering entities before offering up certain areas for cuts.  

The independent living program is matched with funding from counties, and the Department is currently working with the counties to assess the monies. Per Commissioner Walker, the Meals on Wheels program is in relatively good shape with stimulus funding, despite the numbers on the waiting list for community-based services.