(The Center Square) – Georgia did not issue debt to fund capital projects in its fiscal year 2025 budget for the first time since 1981.
Gov. Brian Kemp recommended drawing the funds for the nearly $867 million in projects from the state’s coffers again in the fiscal year 2016 budget that begins on July 1.
The House of Representatives budget bill recommends bonds from some projects.
“We will again have a bond package as we resume our normal budgeting procedures. It’s just a matter of when,” House Appropriations Chairman Matt Hatchett said Tuesday as he presented the budget. “The House agrees to utilize $545 million for those capital projects but shifts $321 million of these funds to meet needs in other agencies and recommends issuing that amount in bonds for projects in the Department of Education, Corrections and the Department of Juvenile Justice. It should be noted, that the amount recommended for bonds is one-third of the amount normally issued by the state in any year and the mix of capital projects funded by cash and bonds is still below the ceiling set by the governor.”
The House of Representatives approved the $37.7 billion budget 171-4.
The budget is $1.5 billion (4.4%) more than last year but Hatchett said “things were tight.”
“Much of the new revenue recognized in this budget is tied up in the things we must fund every year, like enrollment growth in K-12 and higher ed, an increased utilization in Medicaid,” Hatchett said.
The House budget includes an increase of $250 million for the Georgia Department of Corrections over last year’s amount, which doubles the recommendation by Kemp. Part of the money will go toward salary enhancements for state prison workers and an additional 700 corrections offices.
Juvenile corrections officers will also see a 4% boost in pay with a $3.1 million infusion in the House budget.
The Department of Juvenile Justice “faces many of the same issues as corrections, including hiring, maintaining adequate staff and the House felt it was important to maintain parity in pay with corrections,” Hatchett said.
An additional $500 million is included for education over last year’s budget, $98 million more than Kemp’s recommendation.
Part of the money is for a new program created by the House called Student Support Services.
“This $62 million program is an umbrella of services, if you will, that’s designed to cover the needs of the whole child,” Hatchett said. “It’s a collection of ideas and long-time requests many of you are likely familiar with that support our students in ways the QBE (Georgia’s school funding formula) can’t.”
The program adds $20 million for mental health grants for the state’s middle schools and high schools and $5 million for school social workers. An out-of-school program previously funded by the federal government will receive $10 million.
The budget sets aside $25 million for a school safety database approved by the House in a school safety package. The database would store information on credible threats made to the state’s schools and students.
