Gov. Deal warns of a tight budget
by Walter C. Jones, Morris News Service
Dec 11, 2012 | 2647 views | 5 5 comments | 9 9 recommendations | email to a friend | print
Gov. Nathan Deal (AP Photo/Journal & Constitution, John Spink)
Gov. Nathan Deal (AP Photo/Journal & Constitution, John Spink)
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ATHENS, Ga. -- Gov. Nathan Deal cautioned legislators Tuesday not to anticipate funds for many new initiatives in the state budget they'll consider when they convene in January.

He was the final speaker at a three-day conference at the University of Georgia designed to give members of the General Assembly a preview of some of the issues they'll face in the coming legislative session. In years past, governors have used their luncheon speech to outline ambitious agendas.

Deal, though, used the occasion to dampen expectations.

"I must tell you it is a rather daunting budget this year. We have some challenges," he said.

Tax collections decreased last month by nearly 1 percent and for the first five months of the fiscal year are only 3.7 percent higher than last year, which is below the 4 percent rate the current state budget is based on.

The governor has already instructed state agencies to plan to get by with 3 percent less than they were appropriated for this year. That equals the $700 million shortfall in the state's Medicaid system, and Deal said requirements of the federal health reform law will add another $42 million in expenses for the program.

He said that was the reason he rejected the reform law's incentives that were designed to convince states to expand their Medicaid system to cover more people.

"I don't know where anybody would find that money in the state budget," he said.

The chairman of the Senate Appropriations Committee, Jack Hill, described the budget decisions as leaving legislators few choices.

"We're taking money from what we want to do and putting it into what we have to do," said Hill, R-Reidsville.

That's why spending on state parks and road construction shrinks, he said.

His counterpart as chairman of the House Appropriations Committee, Rep. Terry England, gave his colleagues a more folksy image during a closed-door briefing Sunday.

"I told them, the slack is running out of the chain," said England, R-Auburn.

Not only are expenses for healthcare rising while tax collections are weak, but most of the state's reserve funds are too low to cushion against additional cuts, he explained.

Such lean budgets generally mean no pay raises for state workers like teachers, tuition increases for students at state colleges and fee hikes for state services. And Deal is already lobbying legislators to renew a tax on hospitals that was set to expire after three years as a temporary solution to the effects of the last recession.

"This recession just lasted longer than anybody expected," England said.

The governor did discuss a few initiatives Tuesday, mostly programs that will need little from the budget. Among them are using tolls to finance extra lanes on Atlanta highways, revising rules on how educators are evaluated and adding 10 days of annual instruction to the lottery-funded pre-K program.
Comments
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Sneade
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December 13, 2012
Well protected JoMadden, you are sooooooo very smart-like all Faux News viewers. Let's just say you have a right to your opinion.

If you do not feed the hungry,shelter the poor, or take care of the sick and dying then exactly WHAT ARE YOU???? A Christian?

If the do-do hits the fan, the poor,sick and hungry will tear Your perfect little World apart in a matter of minutes,..even seconds.

Nature will take care of itself . Quit watching Hannity and Faux and try and have a little compassion this Holiday season, you %@$#.

wish2010
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December 13, 2012
Facts cannot be disputed. Regardless of religious beliefs, political persuasion or preference of news channels the facts are the current spending for entitlement programs is not sustainable. And Social Security retirement benefits is not an entitlement. Rather it is an investment owned by the recipient.

Social Security disability benefits, medicaid, Earned Income Tax Credits, food stamps, free cell phones, free lunch programs etc., etc., etc., are entitlement programs that have to be reigned in.

In the past week alone I have talked to two different individuals who have worked in well paying jobs their entire working career, have decent retirement benefits from their employer, retired prior to age 62 and eligible for regular Social Security benefits at age 62 and both military veterans. Both these individuals have applied for Social Security disability benefits and VA disability benefits claiming Post Traumatic Stress Syndrome from military service more than 30 years ago. This disability status will provide a higher SS payment, monthly benefit from the VA, free or low cost healthcare and an exemption from a large portion of their county property taxes.

I have compassion for veterans who loose life or limbs, have true mental disorders or other true disabilities from their service for our country.

However, individuals who have a mindset that they are entitled to more than they deserve simply because they know they can manipulate the government system of entitlements for their personal benefit has to be stopped.

This is just an example of the type of abuse in these programs and exactly why the current spending is not sustainable.
JoMadden
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December 11, 2012
The only way any federal or state budget ever becomes sustainable is to change the mindset of most Americans.

It's harsh, I realize that, but just because you're sick or dying, does not give you the right to insist upon services and products that you can't afford. If someone wants to give them to you freely, that's fine, but making it a right encumbers others to care for you.

Just because you're hungry does not entitle you to food. If someone wants to feed you voluntarily, that's fine, but handing out plastic cards and dumping US currency in them at the beginning of every month is not sustainable.

Just because you worked ten years should not entitle you to a lifetime of free government checks because you're a drug addict, have a nervous condition or a sore back.

When teachers are not making 50-100K a year, education will be more affordable, and the quality can't get much worse.

I'm not saying that you have to get a job, I'm not saying that some people won't suffer, but until we get beyond that, budgets will bust until the checks start bouncing.

Having said all that, it won't happen. Eventually the checks will bounce.

DreamWalker
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December 12, 2012
I have a job, and three kids so I do my part. NOTHING is dumped into my lap because I pay for the things I get through the sweat of my brow. Your right on some things but teachers getting paid more, politicians getting paid more and non-sense projects funded by tax payers money is something I cannot stand or go for.
DreamWalker
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December 11, 2012
Stop lining your pockets and we would not be in this situation. Politicians seem to forget so they double dip and use funds for stupid non-sense projects lets not forget they use money to fund their high price dinners and their expensive vacations. I would love to see how the rich would survive just one day in the shoes of a poor person then maybe just maybe they would have sympathy and compassion. Things will NEVER change.
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