Governor Kemp’s Budget Presentation Highlights:

• The unemployment rate in Georgia is 3.3%
• The Department of Community Supervision found $1.3 million in savings by shifting to a virtual office model
• The Department of Corrections is using a new system that will save $16 million over time
• The Department of Health will transfer customer care to the Department of Community Services
• The Department of Community Affairs and the Department of Natural Resources will consolidate their land preservation resources
• The Commissioner of Insurance will transfer the regulation of loans to the Department of Banking & Finance, which already regulates other loans
• His proposed budget includes:
  • an additional $2,000 pay increase for teachers
  • $81 million to the USG and TCSG to mitigate the need for a tuition increase
  • $51 million for roadways
  • $50 million in general bonds to maintain roadways
  • $2 million for 7 new GBI positions for the Anti-Gang Task Force and a state gang database
  • $90 million for enrollment and expense growth in Medicaid
  • $23 million for the state-match for hospitals that serve under-served populations
• $45 million to fund a $1,000 pay raise for state employees making less than $40,000 annually

Dr. Jeffrey Dorfman, State Fiscal Economist, Presentation to Joint Budget Committee:

• Many countries we do business with are going into recession
• Georgia is the 12^th most reliant state on trade with these countries
• U.S. manufacturing has been in a recession for 6 moths (12% of the economy)
• U.S. services are growing, but at a slower rate of 1-2% (70% of the economy)
• The percentage of disposable income that Americans are spending on debt payments has decreased from 12% (last recession) to 10%, meaning that any economic slow down will be more mild
• Wage growth in Georgia is solid at 3-3.5%
• Georgia’s economy will still grow over the next 9-12 months, just likely at a slower pace
• Consumer sentiment has not dropped sharply
• Budget is tight because revenue growth is slow 
  • On a good note, corporate taxes are steady
  • Lowering the income tax rate by 0.25% lowered revenue by $500 million/year; current budget does NOT presume an additional 0.25% reduction
  • TAVT changes reduced state revenue by $170 million
• $2.8 billion remains in the Revenue Shortfall Reserve (RSR)
• Passing Marketplace Facilitators bill would provide an additional $125 million (estimated) in revenues each year (Governor’s proposed budget also does not include these revenues)

Gov. Kemp’s Proposed DCA Budget for AFY 20:

• Reduce funding to regional commissions:
  • $140,186 eliminated for DCA contractual services performed by regional commissions
  • $90,000 eliminated for regional commission performance audits
• Eliminate $300,000 Blight Removal & Code Enforcement (BRACE) initiative, which provides grants to local governments
• Reduce state economic development programs by $500,000 (REBA)
• Eliminate $3.6 million from One Georgia for special purpose grants
• Eliminate $50,000 for the Georgia Sports Hall of Fame

Gov. Kemp’s Proposed DCA Budget for FY 21:

• Eliminate $481,788 for Americorps contract
• Eliminate $140,000 for contractual services with regional commissions and eliminate $90,000 for regional commission performance audits
• Eliminate $163,798 and discontinue the DCA Design Service Studio in Athens, GA which provides local government design services
• Eliminate $300,000 for the Blight Removal & Code Enforcement (BRACE) initiative, which provides grants to local governments
• Eliminate $2 million from the broadband deployment initiative
• Add $1 million to transfer the Dept. of Natural Resources Historic Preservation Program to DCA
• Eliminate $50,000 for the Georgia Sports Hall of Fame
• Reduce state economic development funding by $500,000 (REBA)

Reduce One Georgia funding by $3.6 million for special purpose grants

Gov. Kemp’s Proposed GDEcD Budget for AFY 20:

• Reduce $46,000 for marketing GA film, video, & music
• Reduce $15,000 for Ga Council for the Arts
• Reduce $40,000 for non-profit, educational, & partner grants for GA Council for the Arts
• Reduce $430,000 for contractual services & marketing for Global Marketing
• Reduce $122,500 for International Trade marketing
• Reduce $75,000 for Rural Development personnel
• Reduce $40,010 for Small & Minority Business Development contractual services
• Reduce $719,995 for Tourism (personnel, closure of Hartsfield-Jackson airport visitors center, marketing)

Gov. Kemp’s Proposed GDEcD Budget for FY 21:

• Reduce $269,651 for operations
• Reduce $68,486 for Film, Video, & Music (travel and sponsorships)
• Reduce $15,000 for Ga Council for the Arts
• Reduce $300,000 for Ga Council for the Arts educational and non-profit partner grants
• Reduce $703,607 for Global Commerce (contractual services, marketing, operating expenses)
• Reduce $171,627 for International Trade (marketing)
• Reduce $75,000 for Rural Development (personnel)
• Reduce $60,000 for Small & Minority Business Development (contractual services)
• Reduce $1,077,243 for Tourism (transfer 2 visitor information centers to DNR; marketing; use existing funds for the Georgia Historical Society Markets program; closure of Hartsfield-Jackson visitor information center; use existing funds for Georgia Civil War Heritage Trails; visitor information center grants; eliminate positions)

HB 184 – Small Cell Wireless 
Bill Sponsor: Rep. Brett Harrell
Bill Status: Senate Recommitted 1/13/20
Summary: To encourage small cell wireless deployment through the colocation of new equipment on already-existing infrastructure. 

HB 730 – Sales and Use Tax Exemption for Major Sporting Event Properties
Bill Sponsor: Rep. Ron Stephens
Bill Status: Introduced 1/13/20. Referred to Ways & Means.
Summary: To exempt all tangible personal property from taxation when sold to or used by a local host committee for major sporting events.

 HB 740 – Creation of a Sports Marketing Fund 
Bill Sponsor: Rep. Ron Stephens 
Bill Status: Introduced 1/13/20. Referred to Economic Development and Tourism.
Summary: To create a Sports Marketing Fund and Sports Marketing Board to provide funding to sports commissions. 

 HR 306 – Reduction of Personal and Corporate Income Tax Rate
Bill Sponsor: Rep. Efstration
Bill Status: Introduced 2/22/19. Referred to House Ways and Means Committee. 
Bill Summary: To provide for a reduction in the highest personal and corporate income tax rates by 0.25 percent

SB 162 – Disaster Mitigation Improvements and Broadband Services Infrastructure 
Bill Sponsor: Senator Matt Brass
Bill Status: Introduced 2/22/19. Passed Senate 3/7/19. House Withdrawn, Recommitted 4/2/19. 
Summary:  A bill relating to local government, so as to provide for disaster mitigation improvements and broadband services infrastructure in projects of downtown development authorities and development authorities. 

SR237 – Congressional Term Limits
Bill Sponsor: Sen. Cowsert
Bill Status: Introduced 2/22/19; passed Senate 3/8/19. House Referred to Rules 3/11/19.
Summary: A resolution urging Congress to call a convention to address term limits so as to limit the number of terms Members of Congress may serve. It would only be effective if 2/3 of the states passed.