The State of Georgia: Poverty, Education, Health Care

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1 Overview of Georgia The State of Georgia: Poverty, Education, Health Care Taifa Butler, Deputy Director June 30, 2014 Budget Overview Who We Are The Georgia Budget and Policy Institute produces research and state budget analysis to show ways Georgia can provide better education, health care and opportunity for everyone. Budget Overview Institute 1

2 Our Policy Area Focus Taxes Budget Education Health Care Economic Security Economic Development Budget Overview Our work isn t about the numbers It s telling the story of people using numbers Institute 2

3 Overview Budget A look at well-being Education Poverty Healthcare Budget Overview Georgia by the Numbers 5 th in the number of residents without health insurance 6 th in the number of children living in poverty 6 th poorest state in nation at 19.2% poverty rate Institute 3

4 THE BUDGET CONTEXT 7 The Georgia Budget is The Georgia Budget is The most important piece of legislation passed each year A blueprint for the quality of life for all Georgians, reflects who we are and what we value More telling about the administration s policy priorities than anything else Institute 4

5 Revenues Come from Six Sources 2015 Fiscal Year GA State Budget Totals $42.8 Billion General Fund 44.2% Federal 28.8% Other 13.3% Intrastate 8.8% Motor Fuel 2.4% Lottery 2.2% Tobacco.3% Georgia Revenue by the Numbers 49 th State tax revenue per person (2012) 46 th State tax revenue as percentage of income (2012) 46 th State and local tax revenue per capita (2011) 46 th State and local business taxes as share of economy (2012) Institute 5

6 Revenues Finally Surpass 2007 Levels General and Motor Fuel Funds Fiscal Years Georgia Per-Capita Revenue at Historic Low 7.0% 6.5% 5.5% 5.0% 4.5% 4.0% FY % FY % 5.9% 5.8% 5.9% 5.9% 5.6% 5.3% 5.3% % 5.5% FY FY FY FY FY FY FY FY FY Revenues as a Percentage of Income Fiscal Years % % 5.6% 5.4% 5.1% 4.6% % FY % 4.7% FY % 4.7% 2014 Institute 6

7 FY 2015 Budget ($19.9 Billion) Education 14 Institute 7

8 K-12 Formula Underfunded by $1 Billion in 2014 Impact of Funding Losses Percent of Districts Reducing Programs 70% 60% Other 27.6% 62% Other 50% 40% 30% 38% 42% 51.5% Education 26% 20% 10% 0% Scaling back programs for struggling students Reducing or eliminating art Eliminating elective courses or music Reducing non-athletic extracurricular programs Institute 8

9 Diminished Investment in the University System 300, , , , ,000 50,000 Funding Per Student FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FTE Enrollment Per Student Funding Infl adj $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $ THE STATE OF WORKING GEORGIA AND POVERTY CONTEXT 18 Institute 9

10 Poor Georgians Less Higher Education 40% 35% 30% 25% 20% 15% 10% 5% 0% 31.2% (Educational Attainment by Poverty Level for Population Age 25 and Over) 11.7% Less than high school 34.1% 27.1% High school graduate Georgians in Poverty 24.8% 29.4% 9.9% 31.9% Some college, Bachelor's degree associate's degree or higher Rest of Georgians 19 Less Education = Tougher Labor Market Signs of labor market distress in Georgia, by education group, 2012 Institute 10

11 More Georgians Working Poverty Jobs Percentage of Georgia workers earning less than poverty line for family of four Big Gap Between Poverty and Basic Needs $5,000 $4,500 $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $ Taxes Other Necessities Health Care Transportation Child Care Food Housing Basic Needs Poverty Line: $1540 per month *Based on monthly expenses for a family of three in Atlanta. 22 Institute 11

12 More Poor Children under Age 12 72% of Children in Poverty Are Under years 16 and 4% 17 years 9% 12 to 14 years 15% Under 5 30% 5 years 7% 6 to 11 years 35%...Compared to 64% of Children Not in Poverty 15 years 6% 16 and 17 years 12% 12 to 14 years 18% 5 years 6% Under 5 25% 6 to 11 years 33% 23 Poverty Rises Faster in Suburbs 30.0% 25.0% 22.6% 26.5% 26.4% 22.6% 23.3% 20.0% 15.0% 14.1% 15.7% 17.3% 10.0% 8.1% 5.0% 0.0% Suburbs Cities Rural Areas Institute 12

13 Poor Working Age Less Health Coverage 60% 50% 50.6% 40% 30% 20% 10% 0% 20.5% 12.2% 7.5% 2.7% 0.8% Under to and Over Uninsured rate in poverty Uninsured rate above poverty 25 Georgia s Health Investment is Limited 50 th in Medicaid spending per patient 49 th in statewide health care spending per capita 5 th most uninsured residents 4 th most uninsured kids Institute 13

14 Why is MEDICAID EXPANSION important to Georgia? 27 Failing to Expand Medicaid Eligibility Leaves Significant Coverage Gap Graphic Credit: Kaiser Family Foundation Graphic Credit: Kaiser Family Foundation Institute 14

15 Expanding Medicaid Could Cover More Than 500,000 Uninsured Adults < 138 % Poverty 100% Federally Funded Thru 2016 Eligibility Level as a Percent of Federal Poverty Level Long Term State Share Only 10% No Deadline for States, No Long-Term Commitment 50 0 Pregnant Women Children Under 18 Adults w/ Dep. Children Childless Adults Current Program ACA Expansion Medicaid Expansion Yields Big Bucks Source: GSU Study by Dr. William Custer Institute 15

16 New Revenue Offsets Much of New State Costs Total Expansion Specific State Costs $2.1 Billion State Premium Tax Revenue $751 Million State Income & Sales Tax Revenue 10-year Net State Costs (after new revenue) Net Avg Yearly Costs as Percent of 2014 Budget $1.0 Billion $353 million 0.2 percent Sources: State Expenditure Forecast and The Economic Impact of Medicaid Expansion in Georgia, William S. Custer, Feb Substantial Benefits Throughout Georgia 56,000 Jobs Statewide $6.5 B Yearly Economic Impact Creates >$100 M Yearly Revenue for Local Govt in GA Source: Custer, GSU Institute 16

17 Expansion Could Cover Workers in Many Jobs LET S STAY CONNECTED Please sign up for our electronic alerts on our website, like us on Facebook and follow us on Twitter. Institute 17