Georgia Afterschool
Investment Council

Legislative Update
January 19, 2009
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gaic logo  General Assembly Convenes for 2009 Session

The 2009 Legislative Session officially began on Monday, January 12th. Legislators were sworn in and promptly elected House and Senate leadership. House and Senate Committee assignments were also handed out this week.

Leading up to the opening of the session, most of the talk has been about the state budget - how to close a roughly $2.2 billion gap. It seems much of the Legislature's energy over the next few months will be dedicated to figuring out how to balance the budget and still meet the needs of the state. Other issues sure to get air time this session are transportation, creation of a statewide trauma network, and dealing with the drought.

The major news during the first week of the session was the Governor's budget proposals for the current year, Amended Fiscal Year 2009, and next year, Fiscal Year 2010. The AFY09 budget includes about a 10% cut overall for a total of $19.2 billion and the FY10 budget the Governor proposes totals $20.2 billion. Between the two budgets, the Governor uses as much funding from the state's rainy day fund as is statutorily allowed. The Governor also uses $428 million through the elimination of Homeowners' Tax Relief Grants in his FY10 budget. Legislators have vowed to reinstate these grants to save taxpayers about $200-$300 on their property tax bills, which will mean coming up with more cuts or new revenues to balance next year's budget. The House and Senate will make their budget recommendations in the coming weeks.
Afterschool Funding in the Governor's Budget

By and large, public dollars allocated in the budget for afterschool are federal dollars, thus sparing afterschool programs and those who use them, much of the pain of state budget cuts. The Department of Human Resources' Afterschool Services program, which provides grants to afterschool programs across the state, is level funded in the current budget and remains flat in FY10. Child Care Subsidy dollars, used by low-income working parents to help pay for child care and afterschool care, remain level in the current budget year thanks to some shifting of dollars and are presented as roughly level in FY10. There are questions about the figures used for FY10, however, which may translate to a $10 million cut in subsidies or 3,000 fewer subsidies available. GAIC is working with the Department of Human Resources, legislative leaders and advocates to gain clarity. Nevertheless, the budget still must make it through the House and Senate and undoubtedly, the funding level for these subsidies will be a topic of discussion.

As detailed in the Governor's FY10 budget proposal:
 
-  Afterschool Services: $14 million (level funded)
-  Child Care and Afterschool Subsidies: $226.4 million on budget
  document (level funded) but GAIC believes actual dollars allocated 
  amounts to $216.4 mllion
Economy and Revenue Impact Afterschool
 
Despite the minimal impact resulting from proposed direct state budget cuts, afterschool remains susceptible to the larger economic environment. Many afterschool providers GAIC has spoken with have reported cuts in their funding due to projected revenue losses by public and private funders. And if local school districts see fewer dollars coming in from the state, they must make changes and reprioritize -- afterschool programs could be affected down the line. 
 
Some additional budget information shows the scope of the issue:
The Governor proposes a $491.7 million cut in the overall K-12 education budget for AFY09 and a $250.2 million cut for FY10. A large part of these cuts include QBE, the formula used to allocate state funds to local school districts ($278.9m cut in AFY09 and $275.3m cut in FY10). In addition, Communities in Schools would be cut by 10% in both budgets ($132,062) and graduation coaches funding would be reduced ($1m cut in AFY09 and $3.7m cut for the middle school coach program in FY10). On a positive note, 3,000 additional preK slots would be provided to help address the demand for the state's lottery-funded program.
GAIC Legislative Tracking

The following list of bills may be of interest to afterschool advocates. GAIC will track the status of these bills throughout the session. As new, relevant bills are filed, they will be posted here, as well.

Children, Youth and Families
HB37 (Rep. Roger Bruce, D - Atlanta): The Parent Protection Act provides employees with 24 hours of unpaid leave annually to attend school conferences, medical appointments for children and elderly relatives and enroll their children in school, preK, or day care (includes some afterschool programs).  Status: Filed.

Education
HB100 (Rep. Earl Ehrhart, R - Powder Springs) would alter the Student Scholarship Organizations tax credit established during last year's legislative session. Taxpayers may receive a tax credit for up to 75% of their income tax liability for contributions made to "Student Scholarship Organizations" to provide private school scholarships for Georgia's preK - 12 students. Status: Referred to House Ways and Means.

Revenue
HR1 (Rep. Ed Lindsay, R - Atlanta) would cap property assessment growth to 3 percent per year or the rate of inflation, whichever is less. This is a Constitutional Amendment that, if passed by both houses of the legislature, would have to be put on the ballot in the 2010 general election. Status: Referred to House Ways and Means.

HB39 (Rep. Ron Stephens, R - Savannah) would impost a $1 sales tax on cigarettes and a 15 cent sales tax on loose and smokeless tobacco products. This is expected to bring in roughly $450 million to the state's general fund. Status: Filed.
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Upcoming Events
 
March 10-12, 2009
Holiday Inn
Decatur, GA
For more information, contact Shaquanda Jacobs.
Contact Information
Korynn M. Schooley
Policy and Advocacy Manager
404.527.7280
kschooley@afterschoolga.org