October 25, 2001 The Honorable Roy Barnes State Capitol Atlanta, Georgia 30334

Dear Governor Barnes:

We are distressed to learn that you are contemplating some $600 million in permanent budget cuts.  We ask that you add to the items you have exempted from such reductions the state’s already-stretched budgets for health and social services programs.  We share your concern for fiscal responsibility.  We think it is prudent now to continue supporting the vital services delivered at the state and community levels that individuals and families depend on in this time of crisis.

The state has funds available to continue needed services while increasing savings for the future.  Specifically, Georgia has a revenue surplus of $830 million remaining from SFY 2001, a portion of which could be used to maintain Medicaid and other health and human services, rather than for one-time projects that could be deferred.  (This would leave untouched the separate Revenue Shortfall Reserve that contains over $600 million, an amount equal to 4% of our state budget.)  Preventing cuts and addressing shortfalls in the Department of Community Health and the Department of Human Resources for the remainder of SFY 2002 and for SFY 2003 by using some of the 2001 revenue surplus would still leave a very large surplus that could be used to increase the Revenue Shortfall Reserve or address other priorities.  

Service systems already are straining.  After years of under-funding, redirections and cutbacks in their budgets, there is no room to cut Medicaid and social services.  Taken together, DHR and DCH accounted for a smaller share of Georgia’s budget in 2000 than they did in FY 1991 (19.3% in 2000, down from 21.8% in 1991).  By 2000, DHR’s budget was actually smaller after a decade of prosperity than the level necessary to account for increases in population and the cost of living.  

Like you, we are well aware that the horrible events of September 11^th have introduced a larger element of uncertainty into an economy that was slowing.  However, we need to give the economy time to right itself as efforts to spur growth take hold and as the public becomes less fearful about the future.  The state has the means to steer a steady course until there is more clarity.  Cutbacks in important health and social services now could further undermine public confidence.

For many good reasons this is the very time to preserve and to strengthen the services that reassure and stabilize families and communities:

• With unemployment and layoffs increasing, more and more working people lack the resources to purchase these essential services on their own
• Homeless shelters and food pantries are receiving more requests for help from families, and food stamp participation is up by 6.5% over last year.
• Mental health services are needed in this time of extraordinary stress more than ever, as are services for children, elders, people with disabilities, and victims of battering.
• Job loss increases the need for publicly funded medical care; Medicaid enrollment typically increases by at least 3% for every 1% increase in unemployment.   Programs like Medicaid act as economic stabilizers in times of downturn.
• Bio-terrorism is a threat to which states and counties must be prepared to respond.  U.S. Surgeon General David Satcher and other experts advise that it is essential to strengthen our public health infrastructure, especially at the state and local levels.  They urge improving disease surveillance, training health care providers to recognize symptoms, and giving health departments, hospitals, and other responders adequate resources to do their jobs.

Besides leaving Georgians too few critical services in a time of need, cutting health and social services will lead to higher state costs in the short and long terms. Georgia’s economy will lose millions of dollars in federal match immediately (which will go to other states), and we will lose more in the future as we pay the consequences of our failure to invest in prevention or provide services when they are needed. 

Georgians need to be able to have faith that the government-funded services their communities use will be there when they need them.  Polls show that the public’s confidence in their government is at a high point.  This is not a time to disappoint them.  Please use funds from the FY 2001 revenue surplus to under gird our public services instead of spending these funds on non-essential, one-time projects. 

Thank you for your attention to these concerns.  We remain ready to work with you for the people of our state.

Sincerely, 

Coalition of Community Advocates