ATLANTA --- Tax collections for the state fell again in October compared to the same month in the previous fiscal year, according to figures released Monday by Gov. Sonny Perdue's office.
Collections were off 18 percent, or 15 percent for the first four months of the fiscal year.
One group called for tax increases to prevent further cuts, but Mr. Perdue's staff said emergency action isn't needed.
Perdue spokesman Bert Brantley said the governor already has cut $900 million from the budget he signed into law in April, so deeper cuts are not necessarily imminent. The numbers look bad, he said, because the drop in collections caused by the recession hadn't hit in October 2008.
Last October was essentially even with October 2007. Last November registered growth of 1.4 percent over the year before.
Monday's figures for October 2009 showed total collections are $831 million behind this point last year.
"Those numbers are startling, certainly. But it's important to remember that we're comparing against months before the real teeth of the recession hit," Mr. Brantley said.
Among the latest round of cuts was a three-day furlough and withholding 5 percent of the funds appropriated to all state agencies, except for 3 percent for education and health care.
"This is already a cut budget. The slices and dices to these agencies had already happened in the 2010 budget," Mr. Brantley said. "So these cuts were on top of the cuts that the Legislature had already done."
The Georgia Budget and Policy Institute, an independent think tank, said action is required and recommended taxes be raised to stave off further cuts.
"Georgia cannot cut its way to prosperity," the institute wrote in a statement. "The governor and General Assembly must look to raise revenues, as a majority of states have done, including a majority of our conservative Southern neighbors."
Lawmakers have rejected suggestions of raising taxes, arguing that would stifle job creation.
Senate Appropriations Committee Chairman Jack Hill, R-Reidsboro, said any additional cuts required to balance the budget might not need to be drastic. The budget Mr. Perdue proposes in January for the next fiscal year could be more difficult.
Still, he sees some signs of economic improvement, such as production at the new Kia Motors plant in West Point and activity at the ports of Savannah and Brunswick.
"We're not a state that's headed in the wrong direction," he said. "We're trudging our way through this."
REVENUE CHANGES
Changes in some categories of Georgia tax revenue in October 2009, compared to October 2008:
Income tax: -15.5 percent
Net sales tax: -18.2 percent
Motor fuel tax: -14.2 percent
Corporate income tax: -120.8 percent
Tobacco tax: 3.5 percent
Alcohol tax: 6.2 percent
Source: Georgia Department of Revenue, www.etax.dor.ga.gov
The Augusta Chronicle ©2010 Morris Communications, LLC. All Rights Reserved.
"Georgia cannot cut it's way to prosperity". What? of course they can. It's called operating within the budget. It's called living within your means. It's called being a responsible caretaker of the public trust. Continuing to raise taxes while the federal government is on an insane spending spree will just add to the difficulties of the recovery. Until the Obamanation can be stopped, money trouble will continue for this nation. Georgia, like the rest of the nation, will just have to "bite the bullet" until something can be done about the horrible experiment gone bad. Reassemble the national congress, take away the mad Marxist's power until he can be removed.
Looks like Americans and drinking and smoking their way through the mess Bush created.
The Georgia Budget and Policy Institute is hardly "independent." It is the mouthpiece for "public service" employees (i.e. government employees). They are wrong when they say you cannot cut your way to prosperity. The better slogan would be, "You cannot tax your way to prosperity."
my my, whats a parasite to do?
Fedup...enough already, Bush has been out of office for a year and look at what is going on. We are no better off now than then. in fact, we are much worse! so get off this sorry lame overused excuse and come up with something better!
This is hilarious..I paid my GA state income tax and it took several months for them to even cash the check. Then I paid a corporate registration in February and the check cleared in June. They may be doing this on purpose to generate headlines. The money may be there..they just need to get organized and find it!!
I'd say this is a pretty good indication of how it's going to be across the country for a very long time. As people lose their jobs and spend less money you'll see fewer taxes collected and more services cut. Raising income taxes won't do a bit of good - a tax hike on zero income still comes out to zero dollars in tax revenue. I seriously doubt there are enough "rich" taxpayers in this state to make up the difference in revenue.
I read the report this morning. Ken Shigley had it posted. Hey the state government needs to do what we have too. Spend what you have and not a penny more. Its hard everywhere. In Gwinnett they want to vote in more taxes. I can’t vote in more income at my home. Yet they feel its ok to vote more outgo at my home. Unemployment ,and pay cuts are a way of life for all of us. We can only spend what comes in. Our government should do the same. Yes it will hurt ,yes we will do without services we like, and yes the politicians will complain. Its sad . There are many families that cut home phones ,cable tv, internet,insurance, etc. They shouldn’t have to pay more to their government. Not in times like this.