Morris News Service
ATLANTA --- The state budget will include some cuts Gov. Sonny Perdue acknowledged as painful Wednesday, but he is also calling for a $1.2 billion stimulus package that would include building the medical commons at the Medical College of Georgia.
He would pay for the stimulus package by borrowing through the issuing of 20-year bonds as declining tax collections are creating a $2.2 billion deficit in the current budget.
"This (bond package) will take advantage of low construction costs and create an estimated 20,000 new jobs in an industry that is ready to go to work," he said.
The package also includes $1.5 million for replacing the fire alarm monitoring system, asbestos abatement and cooling tower at East Central Regional Hospital in Gracewood.
At the same time, the governor's budget continues closing much of Gracewood. His reorganization shifts much of the treatment to community-based programs that allow patients to live at home, but it would also move 280 beds used when diagnosing people brought in by law enforcement. Those patients would have to be taken to Central State Hospital in Milledgeville.
"I know some folks will be concerned with how this might affect jobs in their area, but when it comes to mental health, I believe we have an obligation to provide services to Georgians as close as possible to where they live," Mr. Perdue said.
Rep. Barbara Sims, R-Augusta, said he's misreading her interests. "I didn't quite understand why he said that. ... I would think patient care is the concern that I would have," she said.
Rep. Quincy Murphy, D-Augusta, agreed.
"The patients would be my primary concern if you're talking about moving them an hour or an hour and a half away from their families," he said. "That presents a major hardship."
Both said they would join the rest of the Augusta delegation in fighting to keep the Augusta facility as it is.
Mr. Perdue's budget also eliminates the homeowners tax relief grant of $428 million to city and county governments and school boards. Mr. Perdue has urged them to cut their own spending in response, but many officials fear they will send local property owners an additional tax bill at mid-year.
Legislators and Lt. Gov. Casey Cagle have said they think they can find a way to restore the grants for the current budget year.
Ending the grants isn't the only spending reductions the governor is proposing. He is also calling for cuts averaging 10 percent at all agencies except K-12 education, which will be cut 8 percent this year and 3 percent next year, and health care, which was trimmed 9 percent this year and would get a 1 percent increase next year.
To soften the blow somewhat, he would tap $450 million from the state's rainy-day fund, leaving only the amount required by law as a minimum reserve.
In his comments, Mr. Perdue said he couldn't halt budget cuts while waiting for Congress to pass President-elect Obama's stimulus package, which is expected to send money to states to help them cope with budget deficits.
"We cannot plan by relying on the unknown, and the budgets I present to you today are balanced and do not assume money from Washington," Mr. Perdue said in his State of the State address.
He blamed Washington for his decision to impose a 1.6 percent fee on hospitals and health insurance plans and boost fines by $200 for drivers exceeding 85 mph on interstates. That money would fund a statewide network of specialized trauma hospitals and increase the fees for providers of medical service to Medicaid patients.
The governor didn't mention any pay raises for state workers or teachers -- other than a plan to pay more to math and science instructors and those whose students excel on standardized tests. That didn't sit well with Jeff Hubbard, the president of the Georgia Asso ciation of Educators.
"We feel that to judge the effectiveness of a child's education and the effectiveness of the teacher should be judged on many more variables than just a standardized test," he said.
Democrats also expressed disappointment with the Perdue plan.
"Cutting across the board may be the simple answer, but it's not the right answer," said House Minority Leader DuBose Porter, D-Dublin. "Some programs can be cut by more than 6 percent, 8 percent or 10 percent, while some can't handle a cut that big."
A spreadsheet sent to reporters by Mr. Perdue's office notes that the percentage of cuts does vary by program. For example, the Council on Aging would get a 25 percent reduction while the Criminal Justice Coordinating Council would see a 57 percent cut.
Most legislators contacted late Wednesday were still pouring over the 500 pages of budget details. Next week, they'll begin meetings with agency heads to discuss the impact of the cuts and to see where they might make changes.
LOCAL PROJECTS
From the governor's $1.2 billion stimulus bond package:
- $1.5 million to replace fire alarm monitoring system, asbestos abatement and cooling tower at East Central Regional Hospital in Gracewood.
- $6 million to design a Consolidated Medical Education Commons at Medical College of Georgia.
CUTS:
- Department of Veterans Service will reduce funding by $373,110 to MCG for operating the Georgia War Veterans Nursing Home.
- Department of Early Care and Learning will close its regional office of child care services in Martinez.