State Spending to Increase $800 Million, Mostly to Keep Up With Growth

The $19.9 billion budget includes an increase of $819 million, or 4.6 percent, compared to last year.

Most of the budget increase goes to keeping up with growing healthcare and education costs.

Deal said budget restraint would be key as the economy continues its modest recovery.

“In the hard times, restraint is a matter of necessity. In the good times, it’s a matter of discipline so as we hopefully move into the good times I think all of us have agreed that that is the challenges leadership faces.”

The budget, which goes into effect in July, also includes using lottery funds to restore the state’s pre-K program to 180 days. And it adds $50 million in bonds for the port deepening project in Savannah.

Alan Essig of the Georgia Budget and Policy Institute criticized the budget for not including more funds for education.

He says since the recession, K-12 education has been underfunded by about a billion dollars.

“The schools that are facing furloughs and larger class sizes and layoffs of teachers will be facing the same problem next school year, even with the additional funds for the student growth, because all that does is pay for the additional students – it doesn’t make up for the funds that were already cut.”

Essig did commend the governor for helping renew the so-called hospital bed tax, which helps prop up the state Medicaid program.

Meanwhile, for the first time in recent memory, the budget included no line item vetoes from the governor. Political observers say it reflects a closer relationship between the governor and House and Senate leaders.