Putting the Puzzle Together

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Putting the Puzzle Together
Understanding the State Budget the Legislative
Process Teresa Maxwell
2004 GSFC Annual Conference March 3 4, 2004
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Overview

• State of Georgia Budget
• How Does the State Budget Impact GSFC
• Legislative Update
• How to Contact Your Legislator?

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State Budget

• The Georgia Constitution requires that the State
  of GA have a balanced budget
• Who sets the revenue estimate for Georgia?
• Annual Budget

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Budget Cycle

• Agencies start preparing the budget in Spring
• Budget submitted to Office of Planning Budget
  (OPB) in September
• Governor provides General Assembly his budget in
  January
• General Assembly passes budget by March

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Budget Cycle

• Budget submitted to Governor for signature
• OPB will review budget and provide any line item
  veto information to the Governor
• The Governor then signs the budget

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State of Georgia Budget

• Fiscal Year 2004 16,146,990,223
• New Revenue Estimate 16,037,490,223
• Fiscal Year 2005 16,125,208,162

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Sources of State Revenue

• Income Tax
• Sales Tax
• Motor Fuel Tax
• Other Taxes
• Lottery
• Fees and Sales
• Indigent Care
• Tobacco Settlement

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How state dollars are spent (FY 2004)

• Education 53.6
• Human Services 22.3
• Public Safety 7.8
• Debt Service 4.8
• Transportation 4.3
• General Government 3.5
• Economic Development 1.4
• Legislative Judicial 1.3
• Natural Resources 1.1

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Revenue Shortfall Reserve Rainy Day Fund

• Fiscal Year Rainy Day Fund
• 2003                   184,693,387
• 2002 700,273,960
• 2001 734,449,390
• 2000                   551,277,500
•  

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• How Does the State Budget Impact GSFC?

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How the Budget Affects the Policy Process
Financial Aid in Georgia

• Search for Offsets Increased Scrutiny
• Basic Questions Effectiveness
• Efficiency
• Policy Changes Decrease Awards
• Higher Standard

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Recommended Policy Changes FY 2005

• Governors Scholarship Program
• Modify the eligibility requirement beginning in
  FY 2006 and award up to 2 scholarships per high
  school (Valedictorian and STAR Student)
• ROTC Program
• Students have signed a contract with the US
  Military committing to serve
• GMC Scholarship
• Increase the minimum GPA requirement from a 2.5
  GPA to a 3.0 GPA

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GSFCs Budget

• State Funds Unit A
• Tuition Equalization Grant
• Guaranteed Educational Loans
• LEAP
• Governors Scholarship Program
• Law Enforcement Personnel Dependents Grant
• ROTC Grant
• North GA College University Military
  Scholarship
• Military Transfer Program

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GSFCs Budget

• Lottery Funds Unit B
• HOPE Scholarship (Public Private)
• HOPE Grant
• Teacher Scholarship
• Promise Scholarship
• Promise II Scholarship
• Georgia Military Scholarship
• Public Safety Memorial Grant
• Engineering Scholarship

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• Legislation

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• Will there be changes in the HOPE Scholarship
  and Grant program?

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HOPE Recommendations

• Eliminate payment for books, effective FY 2005.
• Eliminate payment for fees, effective FY 2005.
• Cap the number of eligibility hours for the HOPE
  Grant at 95 quarter hours (63 semester hours),
  effective FY 2005, and cap participation across
  both programs at 127 semester
• hours.

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HOPE Recommendations

• Restrict eligibility for the HOPE Grant program
  to those students who do not possess a bachelors
  degree effective FY 2005.
• Implement a standard 3.0 grade point average
  (GPA) requirement for the HOPE Scholarship,
  effective FY 2008.

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HOPE Recommendations

• Endorse the recommendation of the GSFC regarding
  the development of a uniform residency
  requirement for all students receiving support
  from HOPE.
• Improve data collection and management.
• Determine the appropriate means of legislative
  oversight and coordination.

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HOPE Recommendations

• Create a commission to study the pre-kindergarten
  program.
• Implement a uniform grading system for public
  K-12 education in Georgia.
• Discontinue funding for future capital outlay
  projects.

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Other Legislation

• HB 341 HOPE for part-time students at private
  institutions
• HB 1011 Adds the Southern Association of
  Independent Schools to the definition of eligible
  high schools
• HB 1180 and HB 1181 - Appropriations bill

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Legislation

• All legislation can be view at the following
  website
• http//www.legis.state.ga.us

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Contacting Legislators

• Call your legislator
• Write your legislator
• Best of All - Visit your legislator

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Higher Education Committees

• House Higher Education Committee
• Chairwoman Louise McBee
• Vice Chairwoman Pat Gardner
• Senate Higher Education Committee
• Chairman Bill Hamrick
• Vice Chairman Seth Harp

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Higher Education Appropriations Committee

• House Higher Education Committee
• Chairwoman Ann Purcell
• Senate Higher Education Committee
• Chairman Chuck Clay

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• Questions

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Putting the Puzzle Together!
Colleges
Parents
Students
Financial Aid