March 31, 2008

BUDGETS AND BILLS MOVE AS END OF SESSION IS SET

The last day of the 2008 Georgia Legislative session, known as "Sine Die" has been set for Friday, April 4th. With the end in sight, budgets and legislation are quickly moving through both chambers.

AFY08 BUDGET

On March 20th, the House and Senate agreed to the Amended Fiscal Year 2008 (AFY08) budget, which runs through June 30, 2008. In order to ensure a balanced budget, legislators opted to use a small portion of the $1.5 billion in revenue shortfall reserve funds, as opposed to making cuts in services. Governor Perdue, while not happy the General Assembly ignored his request for $65 million in cuts, signed the budget a day later with only a few line-item vetoes.

AFY08 Budget highlights of interest to afterschool advocates:

Restores $20 million in equalization grants for local school districts to help restore the $30 million cut proposed by the Governor.
Does not include funding for school technology or new school buses as originally proposed. The Governor recommended cutting these items when he reduced the revenue estimate on March 10^th and the General Assembly agreed.
Removes a $29.7 million transfer of federal TANF dollars to the Child Care Development Fund, thus eliminating the possibility of spending those dollars on afterschool and child care subsidies during the rest of this fiscal year. (These funds should not be confused with the $14 million in TANF funds for grants to afterschool programs.)

FY09 BUDGET

The House and Senate also passed their versions of the FY09 budget, which begins July 1, 2008.

One major difference in the two versions is the restoration of approximately $17 million in TANF funds for afterschool and childcare subsidies in the Senate version. GAIC is working with partner organizations to ensure the final FY09 budget includes these funds that are so important to low-income, working families.

The House and Senate also have provided different numbers for school funding. The House added $10 million to fully restore the Governor's cut to equalization grants and $90 million to help restore the austerity cuts in the Quality Basic Education (QBE) funding formula (the Governor's proposal cut this formula by approximately $141 million in FY09). The Senate, on the other hand, did not add any additional money for equalization grants and only allocated $54 million to help fill the hole in the QBE formula.

Both chambers have appropriated $14 million in federal TANF funds to the afterschool grant program through the Department of Human Resources. Likewise, the chambers agreed to eliminate the Governor's proposed Very Important Parent (VIP) Recruiters program due to higher priority education needs. Differences in the two versions will be worked out in a conference committee (3 members of the House and 3 members of the Senate) over the next few days.

TAX REFORM

Another issue getting a lot of press is the Senate's competing tax reform bill which was passed on Friday. The major difference between the two chambers is the House's elimination of the car tag tax versus the Senate's reduction of income tax rates by 10 percent over 5 years. What version of tax reform, if any, makes its way to the Governor by the end of this week is difficult to project. For more information on these proposals, visit the Georgia Budget and Policy Institute.

GEORGIA AFTERSCHOOL LEGISLATION TRACKING

Children and Youth

HB 1054 (Rep. Sharon Cooper - Marietta) passed the Senate Judiciary Committee on March 27^th. The Children and Family Service Strengthening Act of 2008 would consolidate a number of child welfare and youth agencies in order to coordinate services for at-risk children and youth. This bill is expected to pass the Senate this week. Passed the House; passed the Senate Judiciary Committee.

SB 506 (Sen. Joseph Carter - Tifton): The Student Health and Physical Education Act (SHAPE) passed the House Health and Human Services Committee last week. The bill was amended and now would require schools to conduct fitness assessments for K-5 students and report the aggregated results to the Department of Education. The bill also requires schools to provide the physical education courses mandated by Georgia law. Passed the Senate; passed the House Health and Human Services Committee.

Education

HR 791 (Rep. Jan Jones - Alpharetta) would establish the House Study Committee on Georgia's Pre-K Program to review the status and challenges of the Pre-K Program, including the possible inclusion of 3-year-olds in the program, and make recommendations by December 31, 2008. The bill passed the House Education Committee but has not made it to the full floor yet. It is expected to pass this week. Passed the House Education Committee.

HB 881 (Rep. Jan Jones - Alpharetta) was put on the Senate calendar for consideration by the full body on March 27^th but the Senate adjourned before considering it. HB 881 establishes a third avenue for charter schools to be created in Georgia. In addition to local school boards and the state Board of Education, the Georgia Charter Schools Commission also would have authority to grant charters. Passed the House; passed the Senate Education and Youth Committee.

HB 905 (Rep. Fran Millar - Dunwoody): the Building Resourceful Individuals to Develop Georgia's Economy (BRIDGE) ACT was reported favorably by the Senate Education and Youth Committee on March 27th. HB 905 would provide grants for public schools to implement focused programs of study in high-demand career fields. Passed the House; passed the Senate Education and Youth Committee.

HB 1209 (Rep. Brooks Coleman - Duluth) passed the Senate Education and Youth Committee on March 27^th. The "IE² bill" would allow school systems flexibility from certain regulations in exchange for increased academic accountability and consequences for not meeting accountability measures. Passed the House; passed the Senate Education and Youth Committee..

Transportation

SB 402 (Sen. Tommie Williams - Lyons) has not yet moved from the House Health and Human Services Committee. SB 402 would establish the Georgia Coordinating Council for Rural and Human Services Transportation to coordinate human service transportation in rural and urban areas of the state. It would also work to provide more efficient transportation in rural parts of Georgia. Given that transportation is a critical challenge for many human service programs, including afterschool programs, this bill could help improve access to programs. Passed the Senate; currently in the House Health and Human Services Committee.

Budget and Taxes

HR 1246 (Rep. Glenn Richardson - Hiram): HR 1246, originally the Speaker's tax reform plan, has been substituted with the Senate's version of tax reform: Senate substitutes HR 1246 and HB 1244. This tax package, which passed the Senate on Friday, would reduce income tax rates by 10 percent over 5 years, cap property assessments and limit increases to the government inflation rate, and eliminate the state portion of the property tax. These bills will now be hashed out in Conference Committee. Visit the Georgia Budget and Policy Institute for extensive information on all the tax reform proposals. Passed the House; passed the Senate; conference committee to be assigned.

HB 989/AFY08 budget (Rep. Ben Harbin - Columbia): The amended FY08 budget passed the House and Senate on March 20^th and was signed by the Governor on March 21^st.

HB 990/FY09 budget (Rep. Ben Harbin - Columbia): A conference committee will work out the differences between the House and Senate versions of the FY09 budget over the next few days for passage by the end of the week.

If you have questions or would like more information, contact Korynn Schooley at 404.527.7280 or kschooley@afterschoolga.org.