2020 Capitol Report - Joint Budget Hearings

January 23, 2020

House & Senate Hold Joint Budget Hearings

Gov. Brian Kemp Affirms Commitment to Teacher Pay Raise & Education Department Outlines FY 2021 Spending Plan

Gov. Brian Kemp shared his budget priorities for fiscal year 2021 (FY 2021) with lawmakers at the joint budget hearings of the House and Senate Appropriations Committees on Tuesday, highlighting his proposed investment in an educator pay raise. Kemp lauded educators, saying, “Teachers work tirelessly to equip young Georgians with the skills needed.” The state economist gave legislators an overview of the state’s financial health, including a discussion of the decline in state revenues. State Superintendent Richard Woods led a presentation of the Georgia Department of Education’s spending plan for FY 2021 and described plans for the department to take on the work of the Chief Turnaround Officer to improve low-performing schools.

The joint budget hearings, which were held on Tuesday and Wednesday, kick off the legislative phase of the budget process. Following the joint budget hearings, the appropriations committees of both chambers will meet separately to review the changes Gov. Kemp has proposed for the current school year, the Amended Fiscal Year 2020 (AFY 2020) budget, and examine his proposed FY 2021 budget.

Gov. Kemp affirmed his commitment of a $2,000 pay raise for certified Pre-K and K-12 educators, an addition to the $3,000 pay raise he proposed and the General Assembly approved in 2019. Kemp also included a $1,000 pay raise for full-time state employees earning less than $40,000 a year. The governor’s proposed budget also incorporates four percent cuts to the AFY 2020 budget and six percent to the FY 2021 budget. The K-12 funding formula, the Quality Basic Education program, is exempt from these cuts though other education programs and state agencies are not.

State Economist Dr. Jeffrey Dorfman described Georgia’s fiscal health. He included revenue trends and rationale for the cuts ordered by Gov. Kemp. Despite Georgia’s all-time high employment rate, revenue growth has slowed due to a 0.25 percent cut to the state income tax rate passed by the General Assembly in 2018, which resulted in a $500 million revenue drop. The 2018 legislation calls for legislators to consider an additional 0.25 percent rate cut this session. Dorfman reported that state revenues would be short an additional $500 million if the cut is approved by lawmakers.

Responding to a legislator’s question, Dorfman noted that Kemp’s proposed FY 2021 budget does not include the additional tax cut. Another legislator asked Dorfman if there are budget decisions the legislature could make to provide additional revenue growth. Dorfman cited fully funding Georgia’s Quality Basic Education (QBE) formula as the strongest investment policymakers can make as research shows this investment pays for itself over time through increased human capital. Dorfman also said bringing more businesses to the state would help increase revenues, and lowering the tax rate by an additional 0.25 percent would not likely be an effective strategy for doing so

GaDOE Describes AFY 2020 and FY 2021 Budget Recommendations

On Wednesday, State School Superintendent Richard Woods opened his presentation by thanking legislators for supporting education by fully funding the QBE formula, providing a $3,000 pay raise for certified educators, and dedicating funding for mental health professionals and school security. Woods celebrated strong gains in public education, including an 82 percent graduation rate, an all-time high rate in Georgia. Next, he described challenges across the state, notably poverty , a rural resource gap , teacher recruitment and retention, high stakes testing , and student mental health.

Woods also presented the GaDOE’s legislative priorities:

Responsible & Aligned Accountability
Strengthening the Teacher Pipeline
Expanding Opportunities for Students
Funding Public Education & Renewing Rural Georgia

For a full list of the department’s 2020 legislative agenda, CLICK HERE .

Following Superintendent Woods, GaDOE Chief Financial Officer Ted Beck highlighted the department’s AFY 2020 and FY 2021 budgets. Beck explained that student enrollment growth has slowed with some districts seeing decreased enrollment, mainly due to a decrease in the birth rate. Even with slowing enrollment, the department has requested $114 million in QBE midterm adjustments. Beck explained the increase is due to higher cost categories of students, such as those with disabilities, CTAE students, gifted students, and remedial students.

Next, Beck described GaDOE’s budget reduction strategy to comply with Kemp’s directive for state agencies to cut their budgets by four percent in AFY 2020 and six percent in FY 2021. QBE was exempt from cuts. The department will implement a hiring freeze and will fill open positions only after careful consideration. Travel expenses will be reduced by using more telework and teleconferencing opportunities. Technology will be replaced when broken instead of every three years under current practice.

State charter schools will receive an additional $27 million in AFY 2020 due to approval of new schools, enrollment growth at existing state charter schools, and increased funding following the passage of HB 787 in 2019. In the FY 2021 budget, state charter schools will receive an additional $50 million in funding.

In AFY 2020, special needs voucher program funding is increased by $10 million. Beck cited growing participation in the program and a legislative change that moved enrollment windows from a semi-annual basis to a quarterly basis. In FY 2021, the special needs scholarship will receive an additional $10 million in funding.

Additional highlights of the FY 2021 budget include:

$360 million to fund $2,000 pay raises for certified K-12 educators
$5.5 million to fund a five percent pay increase for nutrition and transportation staff
Elimination of the CTAE equipment grants

Woods Describes Future of the Chief Turnaround Office Following Departure of Dr. Eric Thomas

Woods returned to the the podium to update legislators on the status of Georgia’s Chief Turnaround Office (CTO) and the schools it serves following the resignation of former Chief Turnaround Officer Eric Thomas on Jan. 17. Thomas resigned amidst an investigation by the Georgia Office of the Inspector General following an internal audit of his office by GaDOE. Dr. Stephanie Johnson, deputy superintendent of school improvement at GaDOE, will become the acting Chief Turnaround Officer. Woods ensured legislators that schools served by the CTO would receive exceptional support from Johnson and her staff. In Gov. Kemp’s budget proposal, funding for the CTO’s office will significantly decrease in the AFY 2020 and FY 2021 budgets.

Several legislators expressed concern about the elimination of the CTO, fearing a decrease in service to the turnaround schools. Woods ensured legislators that the schools will receive high levels of support and will continue to show gains in the state accountability system. Rep. Scott Holcomb (D-Atlanta) asked Woods if QBE requires an update to add additional support for schools suffering high rates of poverty. Woods responded that it might be time to modernize the formula to provide increased funding for schools challenged by high poverty rates, as poverty is the greatest challenge facing the state.

CLICK HERE to view Woods' presentation to the committees.

PAGE Day on Capitol Hill is Tuesday, Feb. 18. We’re pleased to partner with the Georgia Association of Educational Leaders (GAEL) and the Georgia Association of Colleges of Teacher Education (GACTE) again this year. Attendees will meet other politically minded educators from across the state and advocate for teachers and students under the Gold Dome. Please make your plans to attend and register HERE.

Josh Stephens

Legislative Affairs Specialist

[email protected]