On Friday, Governor Deal released his proposed 2016 state budget, a 446 page tome explaining how he proposes to spend the estimated $21.8 billion that will flow into the state’s coffers during the fiscal year beginning July 1st. That’s a lot of material to consider, which is why the rest of this week will be spent on hearings where lawmakers will begin to dig into the details.
We will be bringing you some of the details about what’s different between 2015 and 2016 (Hint: more money for education) during the week, but for the moment, let’s look at the basics, starting with the revenue the state expects to collect next year.
|Individual Income Tax||$ 9,839,041,000||45.2%|
|Corporate Income Tax||995,534,000||4.6%|
|Motor Vehicle Licensing||347,238,700||1.6%|
|Title Ad Valorem Tax||805,362,430||3.7%|
|Interest, Fees and Sales||1,273,354,938||5.8%|
|Other Funds / Payments||157,563,670||0.7%|
|Total Revenues||$ 21,782,964,314|
Estimated revenues are expected to grow by over $670 million, including an additional $475 million in personal income tax collections and $253 million in sales and used taxes. Three fourths of the state’s revenue is derived from income and sales taxes.
Where does it go? The governor’s budget proposal divides expenditures into policy areas, such as “Educated Georgia” or “Responsible and Efficient Government.” I’ve started with those basic categories, and broke out several major sub-areas into their own categories to make it easier to see where the money is going.
|K-12 Education||$ 8,494,371,582||39.0%|
|Board of Regents||2,018,020,479||9.3%|
|Dept. Community Health||3,062,325,153||14.1%|
|Other Healthy Georgia||814,271,990||3.7%|
|Dept. Juvenile Justice||312,701,460||1.4%|
|Other Safe Georgia||327,792,973||1.5%|
|Total Expenditures||$ 21,782,964,314|
Education takes up almost 55% of the proposed budget, with the largest share of that going to elementary and secondary education. Another 22+ percent goes to health related expenditures. Both agriculture and economic development are grouped into the “Growing Georgia” category. And, it’s worth it to note that “Everything else,” including the operations of the courts, legislature, governor’s office, and the Secretaries of State, Insurance and Labor spend less than 4% of revenues.
Ultimately, though, these income and expense tables don’t tell the complete story. That’s because just over half of what the state will spend in FY 2016 will be funds from the Federal government. That’s $22.8 billion, a billion dollars more than what Georgia contributes. And, of course, the federal dollars are ultimately paid for by Georgia taxpayers. That’s also part of why Rep. Scot Turner of Holly Springs filed this bill, but I digress.
Let’s take a look at the combined numbers:
|Source||Georgia Amount||Federal Amount||Combined Expenditures||Percent|
|K-12 Education||$ 8,494,371,582||$ 2,110,093,407||$ 10,604,464,989||23.8%|
|Board of Regents||2,018,020,479||4,767,772,976||6,785,793,455||15.2%|
|Dept. Community Health||3,062,325,153||10,596,538,418||13,658,863,571||30.6%|
|Other Healthy Georgia||814,271,990||1,590,675,589||2,404,947,579||5.4%|
|Dept. Juvenile Justice||312,701,460||6,413,842||319,115,302||0.7%|
|Other Safe Georgia||327,792,973||165,478,615||493,271,588||1.1%|
|Total Expenditures||$ 21,782,964,314||$ 22,823,200,286||$ 44,606,164,600|
This table and pie chart (click on any of the charts for bigger versions) provides a truer representation of how the state spends its money. Even with almost eight billion of federal money being poured into education, it’s now only 44% of the total. Healthcare makes up 38.6% of the total. That leaves just over 17% of total expenditures for everything else.
Everything else includes 4.5% for criminal justice, including prisons and the parole system, 5.77% for transportation, 2.7% for debt service, 1.6% for agriculture and economic development, and 2.8% for everything else.