Category: Budget Issues

It’s a Budget!

Georgia 2016 RevenuesOn 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.

Source Amount Percent
Individual Income Tax  $ 9,839,041,000 45.2%
Corporate Income Tax 995,534,000 4.6%
Sales Tax     5,593,609,000 25.7%
Motor Fuel 998,184,000 4.6%
Tobacco Taxes 208,933,900 1.0%
Alcohol Taxes 190,315,500 0.9%
Motor Vehicle Licensing 347,238,700 1.6%
Title Ad Valorem Tax 805,362,430 3.7%
Other Taxes 396,055,000 1.8%
Interest, Fees and Sales     1,273,354,938 5.8%
Lottery Funds 977,772,176 4.5%
Other Funds / Payments 157,563,670 0.7%
Total Revenues $  21,782,964,314

Georgia 2016 ExpendituresEstimated 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.

Source Amount Percent
K-12 Education   $  8,494,371,582 39.0%
Board of Regents      2,018,020,479 9.3%
Other Education      1,434,269,373 6.6%
Dept. Community Health      3,062,325,153 14.1%
Behavioral Health          984,135,962 4.5%
Other Healthy Georgia          814,271,990 3.7%
Dept. Corrections      1,195,724,513 5.5%
Dept. Juvenile Justice          312,701,460 1.4%
Other Safe Georgia          327,792,973 1.5%
Government Operations          795,537,489 3.7%
Growing Georgia          277,608,064 1.3%
Transportation          876,295,966 4.0%
Debt Repayment      1,189,909,310 5.5%
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%
Other Education 1,434,269,373 810,826,344 2,245,095,717 5.0%
Dept. Community Health 3,062,325,153 10,596,538,418 13,658,863,571 30.6%
Behavioral Health 984,135,962 177,567,743 1,161,703,705 2.6%
Other Healthy Georgia 814,271,990 1,590,675,589 2,404,947,579 5.4%
Dept. Corrections 1,195,724,513 14,052,204 1,209,776,717 2.7%
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%
Government Operations 795,537,489 456,809,118 1,252,346,607 2.8%
Growing Georgia 277,608,064 425,998,184 703,606,248 1.6%
Transportation 876,295,966 1,682,713,013 2,559,008,979 5.7%
Debt Repayment 1,189,909,310 18,260,833 1,208,170,143 2.7%
Total Expenditures  $  21,782,964,314  $  22,823,200,286  $  44,606,164,600


Georgia Federal 2016 ExpendituresThis 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.

House Passes CROmnibus; Legislators Issue Statements

The Senate still has to do it’s part, but it appears that most of the government will be up and running until September 30th, the end of fiscal 2015. The $1.1 trillion spending package only funds the Department of Homeland Security until February, when conservatives hope they can defund the President’s executive action on immigration.

Getting the bill passed brought together some strange bedfellows, with Barack Obama, John Boehner and Harry Reid pushing for passage, and Elizabeth Warren, Nancy Pelosi and Tea Party representatives in opposition. You could see the same pattern in the Georgia vote, where the vote was ten yeas and four nays, with dissenting votes coming from Republicans Paul Broun and Austin Scott, and Democrats Hank Johnson and John Lewis.

Find out what Georgia’s Representatives had to say after the vote was taken below the fold.

Read more

Despite Protests, Federal “Cromnibus” Bill Likely to Pass With Support of Many Georgia GOP Representatives

Members of several Tea Party and other good government groups paid a visit to Seventh District Representative Rob Woodall’s Lawrenceville office on Wednesday, asking that the congressman vote no on a spending bill that would fund most government spending through the end of the 2015 fiscal year on September 30th.

The Gwinnett Daily Post reports that Gwinnett Tea Party co-chairs David Hancock and Steve Ramey want Woodall to vote against the $1.014 trillion spending measure if it includes funds to support President Obama’s recently announced executive action to allow some five million illegal immigrants to remain in the country and receive work permits. In addition, the pair hope Woodall would not vote for the measure until it had been public for 72 hours so it could be read.

Woodall was in Washington, but he told the Post in an email,

What we have done in this ‘Cromnibus’ is cement a lot of good policy for the remainder of the fiscal year — like preventing a bailout for the Obamacare risk corridor program, reining in regulatory overreach, preventing any new spending for Obamacare, and much more — while only funding the Department of Homeland Security for the short-term. This enables us to narrow the funding conversation in February to this one department, and the House, with a willing partner in the Senate having been sworn in, can stop this President’s actions the right way.

As conservatives, we have all been very frustrated by what we’ve seen from the Obama Administration. There is a misconception, however, that if the government shuts down it takes away his ability to act in these ways. It doesn’t. His actions are funded with money that he raises through fees, and until we are able to pass a bill that the president signs in order to change the way that he uses those fees, he will continue down this road.

Defunding the so-called “Executive Amnesty” cannot be done through a rider attached to the appropriations bill, according to a report issued Monday by the Congressional Research Service. Because the operation of Immigration Services is funded through fees paid by applicants and not an annual appropriation, a separate law, passed by both houses of Congress and signed by the President, would be required to defund the program.

Head counts conducted by the AJC’s Daniel Malloy have Georgia Reps. Lynn Westmoreland, Tom Price, and Woodall as Yes votes, with Reps. Jack Kingston and Doug Collins leaning towards Yes. Reps. John Lewis and Paul Broun are planning to vote No, and Rep. David Scott is unsure.

A vote on the omnibus could come as soon as today.

Area Residents and Georgia Officials React to Possible Military Base Closures

If you live in metro Atlanta, you may not understand the impact the military has in Georgia, especially south of the Fall Line. How big an impact? In Liberty County, home of Fort Stewart, it’s about $5.6 billion, and that’s only the contribution to the economy. There are also the soldiers and civilians stationed at the base who become involved in the local community.

That’s why several hundred of them gathered last week to learn more about possible plans to reduce the number of forces stationed at Fort Stewart. The Savannah Morning News reports that due to possible cuts imposed by the sequestration mandated in the Budget Control Act, some 70% of the forces stationed at the base could be eliminated over the next six years.

A possible reduction of around 30,000 troops prompted Army representatives to tour the ten military installations that could be impacted by the reductions. Area residents were eager to voice their support for the troops and the base.

“The ability to train, you guys know better than I do, you have that here; wellbeing, we’ve got that,” said Richmond Hill City Councilman Johnny Murphy. “I think another opportunity that you need to consider is this community and the chance to retire here.

“We’re probably easily one of the preferred communities in the Army. You guys should be interested in bringing more folks here.”

Coastal Georgia, said 10-year Army veteran June Jones, relies on the soldiers stationed in the area for income for small businesses to mentoring children.

“Our community is different from any other community,” she said. “We help each other; we are one family. We are Army strong. Help us stay together.

“There are so many things you help us with, and we in turn help you — we pray for you, we honor you, we support you and we encourage you day in and day out.”

Army officials promised to take the citizens’ concerns back to Washington for consideration. A decision on potential closings may be made sometime in 2015.

Because of the Peach State’s large number of military installations, Georgia officials have rolled out employment-related programs specifically targeted at veterans. In a story by Walter Jones in the Athens Banner Herald, Labor Commissioner Mark Butler praised the skills veterans have that are in demand by employers.

Labor Commissioner Mark Butler likes to quote a colonel who told him, “The military is a soft-skills factory. If you show up on time in the military, you’re late.”

Butler said when he meets with executives considering locating company operations in Georgia, they always ask about workforce quality, which includes more than just education and demographics, but also soft skills.

“We actively sell our veterans,” he said. “That’s a big part of our sales pitch.”

The University system of Georgia is working to offer new training programs, including a Liberty Center in Hinesville that is part of Armstrong State University. Its proximity to Fort Stewart makes it easy for soldiers and veterans to attend.

Ironically, the state’s efforts to provide training programs for soldiers and veterans may mean possible military reductions at Fort Stewart could be mitigated. Jones’s story has Georgia Economic Development Commissioner Chris Carr saying that “there’s no foolproof way to keep a local installation off the list, but one of the best forms of closure insurance is to demonstrate appreciation for the military.”

Governor Deal Signs State Budget, Jason Carter Complains

Governor Nathan Deal signed the Fiscal Year 2015 state budget today at a ceremony at the Gwinnett County Schools Instructional Support Center in Suwanee, no doubt to highlight the additional money provided for education in the budget, much of it which will go to teacher raises, at least in Gwinnett and Cobb Counties, and likely in others. The Gwinnett Daily Post has the story:

“I think all of us know we’ve had some tough times the past several years,” [Gwinnett Superintendent Alvin] Wilbanks said. “Things are looking better, I wouldn’t say anybody’s said we’re out of the woods, but this is certainly the best budget we’ve seen in a number of years.”

The ceremony began a statewide tour on Monday for Deal to sign other legislation in Jekyll Island, Pooler, Tybee Island and Statesboro.

The bill Deal signed included the largest single increase of kindergarten through high school funding in seven years. The formula that determines that, called the Quality Basic Education formula, will be funded at $514.3 million in fiscal year 2015.

Of course, Deal’s likely Democratic opponent in November didn’t see it that way, issuing this statement after the bill was signed into law:

“Budgets reflect values, and this budget shows that Gov. Deal does not value our students, teachers and classrooms. The governor’s budget continues the shell game of education funding in our state, adding to years of grossly inadequate budgets for our schools.

“Students and teachers deserve leaders who will make education the top priority every year. That’s why I have proposed writing a separate education budget that will protect schools from politicians who try to raid their budgets to pay for other things.

“The dismantling of our education system remains the single biggest failure of Georgia’s current leadership, and is the biggest drain on our state’s economy. The consequences are real. A new report shows that Georgia has one of the worst high school graduation rates in the country. Georgia needs leaders with vision for a brighter future.”

We guess that’s the reason that as Senator, Carter voted against the 2015 budget, despite the restoration of over half a billion dollars to fund the state’s QBE formula. If that news is so bad, why did the Senator vote yes on the budgets for 2012, 2013, and 2014? Those were the years when funding was cut from education.

‘Back to Basics’ Republican Study Budget Endorsed by Kingston

U.S. Rep. Jack Kingston’s office said on Thursday the Senate hopeful has voted in favor of the Republican Study Committee budget.

The “Back to Basics” Republican Study Budget says the proposal is designed to balance the budget in four years; ensure a strong national defense; and reform entitlements to stave off a debt crisis, in addition to implementing a Republican healthcare reform bill and repealing Obamacare. The RSC Budget is also calling for pro-growth tax reform as well as passage of the RSC’s JOBS Act. 

Kingston and two other Senate candidates, U.S. Reps. Phil Gingrey and Paul Broun, all voted against the budget sponsored by U.S. Rep. Paul Ryan on Thursday.

The idea of a balanced budget Constitutional amendment also made headlines on Wednesday, courtesy of George Will’s column in The Washington Post. Will highlighted a proposal that would call a constitutional convention under Article V of the Constitution to enact a balanced budget amendment.

House Passes Baseline Reform Act

While the Internets have been buzzing over the “Big Mac” debate between Georgia Seventh District Congressman Rob Woodall and Budget Committee ranking member Chris Van Hollen, the ultimate good news is that the bill being discussed, the Baseline Reform Act, was passed by the House on Tuesday.

The effect of the bill would be to eliminate automatic annual increases in discretionary government spending in the later years of the 10 year budget window. Mandatory spending would not be affected. In the past, the Congressional Budget Office assumed a rate of growth based on inflation in projecting future outlays. The effect of this was to assume ever increasing federal budgets.

Conservatives have complained over the years that the automatic baseline increases allowed supporters of a program to complain its budget was being cut, even if more was being spent than the previous year, if that increase was less that what the previous projected amount specified. By the same token, budget hawks will no longer be allowed to say they had cut spending on a program they didn’t like if there was no reduction in funding from the previous year, but only a cut in the projected baseline.

Congressman Woodall, who introduced the resolution last year, touted the benefits of his bill in a press release:

“Budgets are about choices and priorities,” said Woodall. “This bill is about making those Congressional choices transparent to the American people. At a time of record debt and deficits we in Congress owe it to the American people to not spend one more penny of their money without carefully justifying it. Acting as if we are hostages to our past spending habits will only yield more of the same results: higher spending and greater borrowing. I’m excited to lead this opportunity for a new path, one that provides taxpayers with the transparency needed to hold their government accountable.”

With much of the current conversation on Capitol Hill centering on the budget, Woodall is a prominent voice. He is a member of the House Budget Committee, Chairman of the Republican Study Committee’s Budget and Spending Task Force, and Chairman of the Rules Committee Budget Subcommittee. He was joined in this effort by Chairman Paul Ryan of the Budget Committee who expressed his support by saying, “I want to thank Congressmen Woodall and Gohmert (TX-01) for offering this bill. We should write the federal budget the same way that a family writes its own budget. You don’t just assume you will spend more on the same item every year. You figure out what works and what needs fixing. It’s our job to set priorities and to assess the results. And that’s why I’m proud to support this bill.”

It’s not exactly zero based budgeting, and ultimately, it doesn’t dictate spending amounts. It will make the budget process more transparent, assuming it gets passed by the Senate and signed into law by the President. It’s too bad there’s a slim to none chance of that happening over the next few years.

Congressman Jack Kingston Knocks Competitive Grant Education Funding

In a Washington Examiner op-ed, Congressman Jack Kingston takes issue with how the President’s proposed 2015 budget distributes education dollars back to the states. Secretary of Eduction Arne Duncan will testify in front of the House Labor, HHS, and Education Appropriations Subcommittee today, which Congressman Kingston chairs.

While acknowledging the benefits of formulaic spending, such as that used in Title I programs for the disadvantaged, he knocks competitive grant programs, including Race to the Top.

A competitive grant from Washington means states get to compete for their own tax dollars by kowtowing to Obama, Duncan, and their teachers’ union overseers. The Department of Education, by carrot and stick, can enforce their vision of schooling on classrooms throughout the country, all the while hiding behind it being “optional.”

These competitive grants reduce flexibility for parents and teachers while saddling a school with burdensome reporting requirements. Once a school “wins” a grant, it agrees to install Duncan as puppet master and remove parents’ voices from the classroom.

These grants do not come cheap to the taxpayer, either. The schools must comply with the grueling paperwork requirements attached to all government programs. This takes teachers out of the classroom and traps them in the break room as they report to Washington on how they are fulfilling the demands of federal bureaucrats.

One of the ways these competitive grants have gotten out of control, Kingston notes, is with the Common Core State Standards. He correctly points out that the 45 states and the District of Columbia that agreed to implement the standards received waivers from the previous No Child Left Behind program, along with additional education funding.

But, let’s not throw the baby out with the bathwater. The redistribution of some $45.8 billion in education funding back to the states wastes money, and is a way for the federal government to get its preferred programs implemented. I’ve made the same argument with the way the government redistributes the federal gasoline tax. In both cases, getting the feds out of the way and letting the states decide how much to spend would be a better idea.

In the end, though, while the Common Core standards are being promoted by the Obama administration’s carrot and stick approach, they were developed independently from the Federal Department of Education. They were introduced at Gwinnett County’s Peachtree Ridge High School back in 2010 as part of a voluntary effort to ensure students learn the same concepts at each grade levels, no matter where they might live.

For those opposing Common Core, my question is whether you, like me, disagree with Washington setting the education agenda via competitive grants, or is it with the standards themselves?

Isakson on Debt Ceiling and Unemployment Benefits

Georgia Senator Johnny Isakson appeared on Yahoo’s Daily Ticker today to talk about the passage of the recent omnibus appropriations bill, the upcoming vote to raise the debt ceiling, and a possible vote on extending unemployment benefits.

He sees the negotiations leading up to the debt ceiling vote as an opportunity to press for reduced spending, saying the government must start to reduce the amount it borrows. While he didn’t shy away from extending unemployment benefits–he has co-sponsored a bill that would add a three month paid-for extension of benefits–he said that growing the economy will ultimately be the way to provide more jobs. How to do that? First, put a two year moratorium on new federal regulations. Then reassure employers that there will be predictability in the federal budget and appropriations process.

Rep. Turner Proposes Legislative Approval In Order To Accept Federal Funds

Representative Scot Turner of Holly Springs is upset.

One of his constituents called to complain that her unemployment insurance rates were going up, despite not having laid off any employees. After some investigation, the gentleman from the 21st discovered the cause: Georgia had borrowed money from the federal government to pay unemployment benefits, and was paying it back via increased employer contributions to the Federal unemployment tax.

Turner’s main complaint is that the General Assembly was not involved in the decision:

No one in the General Assembly was given an opportunity to debate whether that was an appropriate solution for our State. I think that lack of debate is wrong. I believe as the elected representatives of the people, the General Assembly should debate whether these programs and the strings attached to those federal dollars are right for Georgia.

There is no such thing as local control when spending Federal Dollars. Every dollar has a string attached that leads all the way back to Washington D.C. and must be spent exactly the way D.C. wants it to be. We must be leery of the strings attached to those dollars and do a better job of vetting Federal Programs in our state. Read more

Georgia’s Debt: $115,193,862,000

A new report by State Budget Solutions, a 501(c)(3) educational organization, lists the Peach State’s total debt as just shy of $115.2 billion. Your share? $11,612.

The study breaks out the components making up the total debt. First is current outstanding debt (bonds, etc.) of $15,297,965,000, or 13.2% of the total. The largest share is outstanding pension liabilities of $84,975,358,000. Other post-employment benefits make up $14,625,000,000 and a loan from the federal government taken out during the recession to pay unemployment benefits accounts for the remaining $295,539.000.

How does Georgia compare with other states? We’re 11th in total state debt, 12th in outstanding debt, 11th in outstanding pension liabilities, other post-employment benefits, and unemployment trust fund loans. Other measures typically used to measure the fiscal soundness of a state show we’re not in danger territory. We are 38th in state debt per capita, and tied for 32nd with Utah in debt to state GDP (27%). Georgia ranks fifth among all states in debt as a percentage of FY 2012 expenditures at 633%.

You can view all the numbers and compare the rankings among all states in this spreadsheet.

I don’t remember hearing these figures during the Governor’s State of the State speech last week. But, as the General Assembly resumes work on passing a budget this morning, they ought to keep these numbers in mind.

House Passes Appropriations Act and Georgia Congressmen Respond

The House approved a $1.012 trillion spending bill for 2014 by a vote of 375-57 this afternoon. The bill is expected to be voted on in the Senate on Friday. Georgia Reps. voting no on the bill include Paul Broun, Phil Gingrey, Jack Kingston and Austin Scott. All except Scott are running for the Senate seat opened up by the retirement of Saxby Chambliss. Here is the roll call vote.

Georgia Rep. Tom Price, who is vice-chair of the Budget Committee, issued the following statement:

Today’s omnibus signifies the promises kept by House Republicans to the American people. First, we vowed to begin the important task of restoring fiscal sanity in Washington. Since taking control of the House in 2011, Republicans have cut spending four years in a row, despite President Obama’s repeated insistence on increasing spending and raising taxes. In total, we have cut discretionary spending by $165 billion, while Democrats increased spending by $210 billion when they controlled all of Congress.

When House Republicans offered our budget last year, we pledged to put an end to budget gimmicks, accounting tricks and needless waste. Today, we are passing appropriations legislation that includes no earmarks. By comparison, the March 2009 spending bill President Obama signed into law included approximately 9,000 earmarks.

The omnibus also corrects a pattern of Congress governing from catastrophe to catastrophe. Removing the threat of future shutdowns allows us to address the critical issues facing our nation — from spurring economic growth and job creation to holding this administration accountable for the failures of Obamacare.

This funding bill is certainly imperfect. Still, Republicans understand that our current path is unsustainable and that we have a moral obligation to right the course for future generations of Americans. We have talked about this problem for some time now, and today’s vote is translating that talk into action.

Update: Paul Broun’s statement … Read more

Carter: Georgia’s Prison Guards Need a Raise

The chairman of the Senate Public Safety Committee says Georgia’s prison guards need a raise, and reducing the state prison population might free up enough money to make that possible.

State Sen. Buddy Carter (R-Pooler) was reacting to a report linking low pay to the high turnover rate among prison guards. Carter said the state is already taking steps to reduce the non-violent prison population.

He told All News 106.7 over the weekend that fewer prisoners means fewer prison guards, and that could mean higher pay for the remaining guards.

The State Department of Corrections had a 31 percent turnover rate last year. The Department of Juvenile Justice reported a 57 percent turnover rate.

Vogtle is Latin for Cost Overruns

Kristi “Kickass” Swartz of the AJC reports that Georgia Power has been sued in Federal Court by Westinghouse (the reactor maker) and Shaw for allegedly materially misrepresenting the amount of soil available for backfill. Backfill is important to gaining approval from nuclear regulators so moving forward without it is not an option. The amount in question is $58 million, of which Georgia Power has paid $29 million (because of a dispute clause requiring them to pay 50% of a disputed amount). Read more

Georgia Finally Has Zero-Based Budgeting

After several years of coming close to bring zero-based budgeting to Georgia, Governor Deal has signed SB33. Congrats to Senator David Shafer and Rep. Stephen Allison who both worked extremely hard on this measure.

Meanwhile the Governor vetoed a few bills including HB456, the “sunset” bill. Deal said:

This bill establishes a new Legislative Sunset Advisory Committee of 14 members that is authorized to review and evaluate every state entity of the executive branch with the purpose of determining which state agencies and entities should be abolished. Implementing HB 456 is estimated to cost between $3 and $7 million. Growing state government with a new committee and statutory authority to review state agencies and the related expenses is not an effective use of state resources. Currently, the General Assembly reviews and evaluates state agencies using the staff in Senate Budget and Evaluation Office, the House Budget and Research Office, and the Senate and House Appropriations committees. Additionally the Department of Audits Performance Audits Division conducts evaluations of state-funded programs and activities to improve state operations. The programs and agencies investigated by the Performance Audit Division are based on the recommendations of legislators and legislative committees. Final performance audits reports and special examinations are published on the Department of Audits website. I have signed SB 33, a bill requiring that all state programs and agencies be reviewed over the next eight to 10 years using Zero Based Budgeting. The ZBB review process is the most cost-effective and efficient way to accomplish the goal of reviewing agency expenditures, evaluating performance and ensuring that we are focused on delivering essential services. Through the budget and legislative process this session alone we have eliminated councils, committees (SB 407) and one state agency (HB 642). The first year of ZBB reviews resulted in elimination of the State Personnel Administration, agency consolidations and realignments, over $9 million in savings, required no additional staff, was a collaborative process with agencies and the House and Senate budget offices and utilized the existing legislative process and House and Senate Appropriations Committees to make the final determinations on the ZBB recommendations. The FY 2013 ZBB Report is available at The intent and desired outcomes of HB 456 are and will be achieved through SB 33 and ZBB review. No additional overhead is needed because legislative authority, committees, and staff to review state agencies and operations are already established in law and the General Assembly did not include funding to implement this legislation, therefore I VETO HB 456.