ATLANTA – State Representative James Beverly (D-Macon), chairman of the House Minority Caucus, along with several state legislators of the Georgia House Democratic Caucus (GHDC) COVID-19 Subcommittee, recently drafted an independent Fiscal Year 2021 budget proposal in response to COVID-19. The GHDC seeks to build a viable and conservative budget that places Georgia citizens as the priority, leverages revenue, repurposes tax credits and/or limits and closes “corporate welfare loopholes.”
“We worked hard to find an alternative to cutting critical areas such as education and healthcare, especially during these times of COVID-19,” said members of the GHDC COVID-19 Subcommittee.
The GHDC legislators worked to identify additional funding to protect public education and healthcare funding, and they researched the budgets of the top ten state departments to determine ways to minimize the governor’s call for across the board cuts of 11 percent. By leveraging revenue, repurposing tax credits, closing “corporate welfare loopholes” and utilizing CARES Act funding, the GHDC seeks to prevent Georgians from suffering due to reductions in public education to behavioral health services. According to the caucus’ budget proposal, enough funding was identified to justify maintaining the current level of resources in 10 departments that make up 90 percent of the state budget.
The GHDC found savings regarding “corporate welfare loopholes” such as life insurance company tax breaks, insurance abatements, car trade-in exemptions and manufacturing company tax breaks; the proposal estimates that ending these programs could generate approximately $568,000,000. Additionally, their budget proposal would repeal the Rural Hospital Tax Credit to reallocate $60 million in favor of direct investment in the state’s health care programs and expansion of Medicaid. Under their budget proposal, this $60 million expansion of Medicaid would turn into $540 million through a nine to one federal match.
The GHDC’s FY 2021 budget proposal would also increase the state’s tobacco tax from 37 cents per pack to the national average of $1.81, as well as include a tax of vaping products that at an equal level could produce over $600 million in additional revenue. The proposal also highlights that reductions for the Georgia Department of Corrections (DOC) have been identified, and cuts for this department would not have a negative impact, such as paying instructional personnel a six-figure salary to teach the DOC’s GED program.
“I want to especially thank the GHDC COVID-19 Subcommittee, GHDC members of the House Appropriations Committee, GHDC Budget Subcommittee, Danny Kanso at Georgia Budget and Policy Institute, Andre Fields with Fair Fight Action and the tireless work of Lauren Beasley and Kimberly Romaine,” said Rep. Beverly.
The GHDC COVID-19 Subcommittee members include Chairman Beverly, as well as State Representatives Debra Bazemore (D-South Fulton), Rhonda Burnough (D-Riverdale), Viola Davis (D-Stone Mountain), Shelly Hutchinson (D-Snellville), Donna McLeod (D-Lawrenceville), Mary Robichaux (D-Roswell), Sandra Scott (D-Rex) and Kim Schofield (D-Atlanta).
For more information, please contact Kimberly Romaine at (404) 656-0220 or kimberly.romaine@house.ga.gov.
Representative James Beverly represents the citizens of District 143, which includes portions of Bibb County. He was elected to the House of Representatives in 2011 and currently serves as House Minority Caucus Chairman. He also serves on the Appropriations Subcommittee on Transportation and on the Ethics, Health & Human Services, Retirement, Rules, Small Business Development and Special Rules committees.
###