Friends and Neighbors-

This is the first of a series highlighting problems and opportunities that we'll grapple with in the state legislature this winter (and for years to come). I hope you'll let me know your thoughts, or at least give thought to these matters that affect you. Later, during the legislative session from January to April, I'll focus updates on actual bills under consideration.

The series will cover everything from taxes - to a later school-start date - to traffic congestion - to Medicaid - to greenspace - to education - to long lines for drivers' licenses and renewals - and more.

Today, I'll begin with a broad topic, the budget, because it fundamentally determines what gets funded, cut, expanded or revamped. And the "what" represents the services Georgians have come to expect from state government.

ISSUE: The state revenue decline over the last several years has reversed. Georgia should end this fiscal year with more state funds than last year. This would be the first increase since 2001, although the population has increased each and every year. The revenues, though, will be less per Georgian after accounting for the increased overall state population and deducting for increased Medicaid consumption and direct costs associated with public school population growth.

More services will likely be cut next year just as they were this year. And the year before that. To paraphrase Gov. Sonny Perdue's quote in the AJC, government may have to do fewer things than it used to. Every state in the Union faces similar circumstances, although Georgia is stronger financially than most.

Georgia has a higher population this year than last, and more residents mean more demands on the state. The trend will continue as Georgia is growing faster than most states. Four areas in the budget (K-12 education, Medicaid, higher education and Criminal Justice) account for 72 percent of all state spending (add in transportation and state debt and the total rises to over 80 percent).

The $13 billion state budget looks roughly like this:

1. K-12 education - 39 percent (80 percent of which goes to teacher salaries)

2. Medicaid - 11 percent (which provides health care to those below a set income level; expenditures are growing at 10-12 percent per year)

3. Higher Education - 11 percent (for colleges, universities and technical colleges)

4. Criminal Justice - 11 percent (in descending order: Corrections, Juvenile, GBI, Dept. of Public Safety, Dept. of Motor Vehicles)

5. Human Resources - 9 percent (covering 57 agencies and offering services such as tuberculosis treatment, immunization, child protective series, epidemiology, foster care, elder abuse prevention, state hospital facilities, much more)

6. Transportation - 4.5 percent (including state highways and bridges, interstate projects)

7. Everything else - 14.5 percent (including debt service (4.5%), and all other state agencies such as Natural Resources, Agriculture, Labor, Trade, Soil and Water, retirement)

TRENDS -

More students, and challenges, in public schools. 90 percent of Georgia school-age children attend public school. Nationally, since 1987, private school enrollments grew by 7 percent, while public school enrollment increased by 16 percent. As compared to when you attended grammar school, more of these students do not speak English, come from single parent families, have parents in jail or probation, move more frequently. Georgia will have the third highest percentage increase of all states of school-age students over the next 15 years. Half of all Georgia students qualify for reduced or free lunch, which indicates low income.

More consumption of Medicaid. Medicaid didn't even exist until 1966. Now it pays for health care for Georgians that make 185% ($34,000) of the federal poverty rate. Last session, we cut the eligibility from 235% of the poverty rate to 185%, a level more in line with other states. Even with the decrease in eligibility, Georgia's total Medicaid bill will increase this year because of higher usage and increased population. How many new medical procedures and high-tech drugs exist now that most assume should be offered to everyone? How many fragile babies and elderly live longer because of new medical procedures? All good, but all cost more. Can we sustain, or should we, the 10 percent yearly increase in costs to taxpayers?

More students attending Georgia colleges. An increasing population, and the popular HOPE scholarship program, are driving up the number of state college students. Georgia public college tuition ranks below the national average, 39th for all colleges, except Georgia and Tech, which are 35th. Since 2001, state appropriations to the University System have been cut $313 million, but enrollment increased by 31,000 students.

More Georgians in prison than the national average, mostly due to longer sentences and less probation granted. The prison population is growing at a faster rate than the Georgia population growth rate. - More cars on the roads. Increasingly, Georgians drive more miles per year and own more cars per family. This state's automobile industry ranks 4th in car sales in the nation, although Georgia ranks 9th in population. Less revenue per-mile-driven is generated each succeeding year because of increasing automobile gasoline efficiencies. This means less funding per-mile-driven to pay for road improvements and maintenance. In Georgia, 7 1/2 cents per gallon of gas you buy, plus 3 percent in sales tax on the price per gallon is dedicated to the Georgia Department of Transportation (DOT) for roads and bridges. In other words, the more gasoline that is purchased, the more road funding that is generated. The steady increase in automobile efficiencies (aside from dramatically cleaner emissions resulting from higher standards) has reduced the amount you pay per mile that you drive.

WHAT WOULD YOU DO? Assuming no net increase in state taxes levied, what aspects of state government would you cut or change to stay within budget? Give thought to what you'd do, and, if you like, let me know. In the next update, I'll discuss state taxes and ask your thoughts on which taxes you'd change, cut, or increase, if anything. Again, thank you for the opportunity to serve you in the Georgia House of Representatives.

Best- Jan Jones State Representative - District 46 (Serving northwest Fulton, including unincorporated, Roswell and Alpharetta)