Good News For The State

Revenue is up.

The state ended its budget year last week with a large enough cushion to begin rebuilding its depleted reserves, Georgia money managers said Thursday.
The state needed to collect $853 million more in the budget year that ended June 30 than it received in the previous year. It met the target and more. The increase was nearly $1.1 billion.
“It’s a good report,” said the state’s chief financial officer, Tommy Hills. “When all the dust settles, we expect to put at least $200 million into the revenue shortfall reserve.”

Building up the reserve is good. But, how long will it take an up and coming Republican to call for tax cuts and/or teacher raises.

One comment

  1. Paul Bennecke says:

    Tax cuts this year:

    – A $1 billion tax cut to be implemented over 10 years changed the way Georgia companies are taxed, allowing them to invest in plant expansion and job creation. Small businesses can deduct up to $410,000 on their income taxes by investing in equipment, property or other capital to help grow their businesses.

    – $430 million in property tax relief was included in the state budget

    – A teacher tax deduction will provide tax relief for teachers by providing a $250 tax deduction for teachers that use their personal money to buy school supplies.

    – Strategic Ind. Job Bonus (HB 389) Governor Perdue is encouraging job growth in Georgia by providing a $500 per job tax bonus for strategic industries that grow their workforces and expand job opportunities in Georgia.

    – Sales Tax Holiday – July 29-31

    Tax cuts in 2003-2004

    – over $700 million in property tax relief

    – eliminate state income tax for seniors 65+ starting in 2006

    – tax cut on military income

    – Sales Tax Holiday in 2003 and 2004

    As for building the reserves, anyone who uderstands the AAA bond rating and how important it is to the fiscal stability of the state, knows that we must build that reserve back up or we possibly lose it. When we had hundreds of millions in deficits in 2003 and 2004, the reserve was tapped.

    Unlike the federal government, Georgia is required by the Constitution to balance our budget every year…no deficit spending.

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