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Georgia Senate Approves 2014 Mid-Year Budget

February 7th, 2014

The Georgia Senate unanimously passed a budget to keep state government running until the end of June. The almost $20 billion plan was first approved last year. But on Friday, lawmakers added more than $300 million dollars in new spending.

One of the largest increases in the amended budget is an additional $58 million for the State Health Benefit Plan. The funding comes after the board for Georgia’s Department of Community Health recently approved changes to the plan. The plan was amended after teachers and other state employees complained about high-out-pocket costs after the state switched to a cost sharing arrangement with Blue Cross Blue Shield of Georgia as the sole provider. The funding is half of what was approved by the board. The other half is expected in the budget for the 2015 fiscal year.

Senate Democrats did not raise objections to the additional funding but asked a number of questions about the plan, including this one from Senator Vincent Fort. Fort is sponsoring a bill that would require the plan to include more than provider.

“Would having more than one provider going forward, could it be or would it be a help competiveness and driving down costs for the state employees?”

Republican Senate Appropriations Committee chairman Jack Hill says he doesn’t think so because he doesn’t believe those who administer the health plan act as true providers. He says the state is actually self-insured and what is paid out in claims for one year becomes the premiums the state and its employees have to pay for the following year.

“They submit a bid based on their ability to deliver the services and the price they will do it. They’re not on the hook for the total cost of claims. We’re on the hook not only for active employees, but for retirees as well.”

Senators also approved an extra $3.3 million dollars for Child Welfare Services. The additional amount comes after the recent deaths of two children who are believed to have died after suffering child abuse but had previous contact with Georgia’s Department of Family and Children Services.

The budget also includes approximately $130 million more dollars to pay for K-12 enrollment growth. The Georgia House passed its own mid-year budget. Now, the House and Senate have to agree on one version before it’s sent to the governor. Lawmakers also have to pass a budget for the 2015 fiscal year.