THE GOVERNOR’S BUDGET REPORT Fiscal Year 2016 Governor Nathan Deal The photograph on the cover “Old Mill at Berry College” was taken by Georgia artist, George Hernandez. The photograph was selected to hang in the Office of the Governor as part of the rotating exhibit “The Art of Georgia,” managed by Georgia Council for the Arts. For more information about the exhibit, the artists and their work visit www.gaarts.org. THE GOVERNOR’S BUDGET REPORT ___________________________________________________ FISCAL YEAR 2016 NATHAN DEAL, GOVERNOR STATE OF GEORGIA TERESA A. MACCARTNEY DIRECTOR OFFICE OF PLANNING AND BUDGET You may visit our website for additional information and copies of this document. opb.georgia.gov Table of Contents Introduction Department of Banking and Finance . 103 Governor’s Letter . 3 Department of Behavioral Health and Budget Highlights . 5 Developmental Disabilities . 110 Department of Community Affairs . 120 Financial Summaries Department of Community Health . 131 Georgia Revenues: FY 2012-FY 2014 Department of Corrections . 147 and Estimated FY 2015-FY 2016 . 13 Department of Defense. 156 Georgia Estimated Revenues . 14 Department of Driver Services . 162 Summary of Appropriations . 15 Bright from the Start: Georgia Department of Early Summary of Appropriations: By Policy Area . 17 Care and Learning . 168 State Funds by Policy Area . 20 Department of Economic Development . 175 Expenditures and Appropriations: State Funds . 21 Department of Education . 183 Expenditures and Appropriations: Total Funds . 23 Employees' Retirement System of Georgia. 200 State Funds Surplus by Department . 25 Georgia Forestry Commission . 206 State Debt Service as a Percentage Office of the Governor . 213 of Prior Year Net Treasury Receipts . 27 Department of Human Services . 224 Revenue Shortfall Reserve. 28 Commissioner of Insurance . 243 Lottery Funds. 29 Georgia Bureau of Investigation. 251 Tobacco Settlement Funds . 30 Department of Juvenile Justice . 259 Motor Fuel Funds . 31 Department of Labor . 266 Salary Adjustments . 32 Department of Law . 272 Summary of Statewide Budget Changes . 33 Department of Natural Resources . 277 Summary of Motor Vehicles . 35 State Board of Pardons and Paroles. 287 Department of Justice Settlement State Properties Commission. 293 Agreement Budget . 36 Public Defender Standards Council. 297 Olmstead Related Services . 37 Department of Public Health. 302 Georgia Tax Expenditure Report . 40 Department of Public Safety . 312 Summary of Programs for Zero Based Public Service Commission. 322 Budgeting Review . 41 Board of Regents . 328 Department of Revenue . 343 Department Summaries Secretary of State. 352 State Soil and Water Conservation Legislative Commission . 360 Georgia Senate . 45 Georgia Student Finance Commission . 367 Georgia House of Representatives . 48 Teachers Retirement System . 379 General Assembly. 51 Technical College System of Georgia . 385 Department of Audits and Accounts. 54 Department of Transportation . 392 Judicial Department of Veterans Service. 403 State Board of Workers' Compensation . 410 Court of Appeals. 58 Georgia General Obligation Debt Judicial Council . 62 Sinking Fund . 416 Juvenile Courts . 66 Prosecuting Attorneys . 69 Superior Courts . 73 Appendices Supreme Court . 77 Statement of Financial Condition. 427 Executive State Expenditure Projections. 428 State Accounting Office . 80 Georgia Economic Report. 429 Department of Administrative Services . 87 Georgia Economic Report Detail . 431 Department of Agriculture . 95 Glossary. 433 State of Georgia’s Budget Report FY 2016 i Introduction Introduction blank Governor’s Letter Budget Highlights Governor's Recommendation for FY 2016 Governor's Recommendation for FY 2016 Budget Highlights EDUCATED GEORGIA $12,000,000 in bonds for major repairs, improvements, renovations, and equipment at Georgia Network for K-12 Public Schools Educational and Therapeutic Support (GNETS) program $239,647,550 for enrollment growth and training and facilities. experience to recognize a 1.35% increase in Budget Highlights enrollment, bringing the total number of fulltime $9,500,000 in bonds for construction projects at the equivalent (FTE) students funded in FY 2016 to over FFA/FCCLA center in Covington. 1.72 million students and over 121,000 teachers and administrators. Department of Early Care and Learning $3,036,817 in additional lottery funds to provide two $280 million in additional funds for school systems additional teacher planning days to move from eight to through the Quality Basic Education (QBE) program to 10 total teacher planning days. increase instructional days, reduce teacher furloughs, or enhance teacher salaries. These funds will provide $1,440,000 in additional lottery funds to provide 60 local school districts with the resources and flexibility additional classes in the Summer Transition Program to address the most critical needs of their students and for additional instruction and transition services to low teachers. income eligible rising Pre-Kindergarteners and Kindergarteners. $11,364,325 for the QBE Equalization program to assist low wealth school systems. Governor’s Office of Student Achievement $2,500,000 in additional funds for the Georgia $9,556,510 adjustment to the QBE Local Five Mill Share Innovation Fund to award grants to local school program to provide for school systems with a reduction systems to implement and disseminate innovative in local property tax revenue. programs in public education. $2,438,684 for statewide support for teacher/leader $10,397,097 for strategic statewide professional effectiveness measure implementation and school development initiatives for teachers. improvement. University System $1,600,000 for the E-Rate program to increase $51,929,715 for resident instruction to reflect an bandwidth to school systems statewide from 3 mbps to increase in credit hour enrollment, square footage, and 100 mbps. employer contributions for health and retirement benefits at University System institutions. $1,067,328 to develop and implement rigorous statewide assessments and end of course tests aligned $2,565,600 in additional operating funds to continue with state standards. the establishment and development of the Georgia Film Academy through a cooperative partnership $230,035,000 for construction, renovation, and between the University System and the Technical equipment and $20 million for buses in bonds for local College System. school systems and state schools. State of Georgia's Budget Report FY 2016 5 Budget Highlights Governor's Recommendation for FY 2016 $1,000,000 for advanced manufacturing education and HEALTHY GEORGIA research initiatives at Georgia Southern University. Community Health $485,000 for operating costs for the Military and A reduction of $25,573,308 in state general funds for Academic Training Center in Warner Robins. Medicaid and PeachCare for Kids. Total includes $42.7 million in new funding for baseline expense growth, an $197,775,000 in bonds for new capital projects as well additional $54.8 million for new expenses associated as major repairs and renovations at all USG institutions. with the implementation of the Affordable Care Act (ACA), $22.8 million for expenses associated with new $1,500,000 in bonds for the construction of the new Hepatitis C drugs, a $153.9 million reduction to state Villa Rica Public Library. funds to offset an increase in the federal financial participation rate, $12.1 million for start-up expense Student Finance associated with the implementation of a new voluntary $16,762,127 in additional lottery funds to provide a 3% case management program for the Aged, Blind and increase in the award amount for HOPE (public and Disabled (ABD) population, $8.7 million to increase private schools) scholarships and grants over FY 2014. nursing home reimbursement rates, removal of $4.8 million for one-time expenses associated with the $10,890,394 in state funds for growth in the Accel dual transition of foster children to managed care in FY enrollment program. 2015, and the transfer of $8.0 million from Medicaid benefits to Morehouse School of Medicine Operating $6,000,000 in additional lottery funds to expand the Grant to replace federal funds. Low Interest Loan program for Georgia residents attending a qualifying Georgia institution of higher $3,306,583 to continue to ensure Healthcare Facility learning. Regulation has the professional staff needed to license, monitor and inspect hospitals, assisted living facilities, Technical College System of Georgia personal care homes and nursing homes. $1,214,337 for maintenance and repair of additional square footage at system schools. $172,768 in new state funds for 11 new residency slots in primary care specialties. In total, budget provides $19,880,000 in bonds for new capital projects, as well for 20 new residency slots for hospitals in Gwinnett and as repairs, renovations, and equipment at all TCSG Clarke counties. institutions. Human Services $2,500,000 in bonds for the purchase of equipment for $35,422,727 for child welfare services includes $7.5 Quickstart projects statewide. million in state funds for 175 additional new case workers to manage increasing child abuse and neglect Teachers Retirement System caseloads, $14.8 million to annualize funding for 103 $94,116,110 to fully fund the annual required caseworkers and cost associated with the increased contribution for the Teachers Retirement System (TRS) number of children in state custody, and $12.7 million in order to continue fiscal soundness and sustainability.