Georgia FY2007 Budget

The FY 2007 budget, as adopted by the General Assembly, is based on a General Fund revenue estimate of $17.6 billion (5.5 percent growth over the FY 2006 revenue projection). The FY 2007 budget contains $753.8 million in additional General Revenue funds over the FY 2006 budget. The FY 2007 budget also contains over $240 million in one-time Medicaid revenues (prior year surplus and hospital overpayments), as well as over $128.5 million in projected Medicaid savings. Most of the additional funds are to be used for salary increases, normal formula driven growth, and enrollment growth. The Department of Community Health highlights include:

Medicaid Increases:

• $214.6 million - Projected 5.5% growth
  
   
• $145.2 million - Replace federal funding (upper payment limit)
  
   
• $102.5 million - Move from cash to accrual basis budget
  
   
• $22.0 million - Replace Indigent Care Trust Funds for Right From Start Medicaid
  
   
• $20.0 million - Update nursing home reimbursement rates to 2005 cost reports
  
   
• $3.3 million - Add 152 slots to Independent Care Waiver Program (ICWP)
  
   
• $2.5 million - Provide dental coverage for pregnant women
  
   
• $2.3 million - Fund a $20 monthly supplement for residents in nursing homes and hospices.

Medicaid Savings: ($432.5 million)

• $172.8 million - The use of prior year surplus (one time savings)
  
   
• $78.5 million - CMO implementation
  
   
• $70.6 million - Recovering hospital overpayments (one time savings)
  
   
• $60.6 million - Higher federal matching rate (FMAP)
  
   
• $25.0 million - Verification of income
  
   
• $25.0 million - Implementation of Administrative Services Organization for Aged, Blind and Disabled population.