$27B state budget proposal for fiscal year 2022 advances in Georgia House
(The Center Square) – The Georgia House Appropriations Committee passed a $27.2 billion state spending plan for fiscal year 2022 on Thursday.
The proposal would restore funding for education and other reductions lawmakers made to protect state coffers amid the pandemic. It also would increase spending on health care and behavioral health and add funding for new state positions.
Two budgets are passed through the General Assembly every legislative session. Lawmakers and Gov. Brain Kemp approved last month a $26.5 billion amended spending plan for the remainder of the current fiscal year. Kemp told state agencies last summer to reduce spending by 10% in fiscal year 2021, which now keeps expenditures below current revenues.
Budget writers maintained most of Kemp’s recommendations in both fiscal plans, which included restoring 60% of the state’s funding for its biggest expense: education. The House and Kemp allocated $9.6 billion in state funding in the 2022 plan.
The House recommended spending more on behavioral health and disability services than Kemp. The House plan restores funding for Hepatitis C projects and family support services for Georgians with disabilities. It also calls for increased funding for substance abuse and suicide prevention services and hiring six forensic peer members.
Behavior health providers also could see a 5% Medicaid and Medicare rate increase if the proposal becomes law. The total state allocation for the Department of Behavioral Health and Developmental Disabilities would be nearly $1.2 billion.
The House plan increases the state’s share of the Teachers Retirement System contribution from 19.06% to 19.81%, and from 8.38% to 8.81% for the Judicial Retirement System. Georgia will save money, however, from reducing the employer share for health coverage for state employees.
The state also would continue to fund new positions in the Department of Public Health, which were added to the amended 2021 budget to help with the state’s COVID-19 efforts. The House also wants to restore cuts for its operations, legislative offices, the judicial system, tourism and child welfare services.
The proposal also calls for spending nearly $1.2 million for the Department of Audits and Accounts to perform more audits, including reviewing Georgia’s tax credits and COVID-19 expense reports. It would increase funding for new judges and juvenile public defenders and redirect funding to secure raises for state correction officers, previously set aside in the adjusted 2021 budget.
Georgia Budget & Policy Institute Senior Policy Analyst Danny Kanso said the proposal does not do enough to help Georgians in the wake of the pandemic. He said lawmakers should increase revenue and Kemp should draw up to $1.7 billion out of the state’s $2.7 billion Revenue Shortfall Reserve while waiting on federal aid.
“The budget passed out of the House Appropriations Committee today underfunds state government by over $1.2 billion at a time when Georgians, still facing the health and economic challenges of COVID-19, need more funding to support their needs,” Kanso said.
The House budget proposal must be reviewed in Rules Committee before a full House vote. Both chambers of the General Assembly must agree on a 2022 budget before the spending plan is sent to Kemp for final approval. The new fiscal year begins July 1.
Disclaimer: This content is distributed by The Center Square
