State budget to be $1 to $2 billion short; group calls for special session

From the Georgia Municipal Association:

“The Georgia Budget and Policy Institute has released a new report [VIEW REPORT] examining the current fiscal year’s revenue outlook in relation to the budget passed by the General Assembly and signed by the Governor. The report indicates that while the FY 2008 shortfall was made up by dipping into the Revenue Shortfall Reserve, there likely won’t be enough in the RSR to cover the estimated $1 to $2 billion gap between state revenues and the revenue estimate for the FY 2009 budget.

FY 2008 third and fourth quarter revenues declined by 3.7 percent and 7.3 percent, respectively. To meet the FY 2009 budget, revenues would have to increase by $1.48 billion or 8.4 percent. FY 2009 revenue growth of between 0 and 3 percent would result in a budget deficit of between $1 and $1.5 billion. If revenues continued to decline throughout FY 2009, deficits could total $2 billion or more.

The report calls for a Special Session of the Georgia General Assembly to address the looming budget crisis if June and July revenues don’t show improvement.”

7 comments

  1. Dave Bearse says:

    An article in the AJC today indicated the state would need to tap $600M of its $1.5B reserve to make ends meet.

    I recollect Sonny raising a red flag about FY2009 revenue as as Richardson and others were trying to ram through a $200M motor vehicle advalorem tax cut as the session came to a close, and folks slamming the phased in income tax reduction proposed by Cagle as an inadequately small and delayed tax cut.

    The problem will many self proclaimed fiscal conservatives is that tax cuts and not a balanced budget is their paramount objective.

  2. Just the Facts Please says:

    Let’s see if I get this straight…. Let’s bring the legislators into Atlanta a month before the election to pass legislation to raise taxes (albeit on tobacco). Uhmm…

    I’m sure all those who signed the no tax pledge will say the raising the tobacco tax is not really a tax increase. Uhmm….

    So when a majority of folks want to tax a minority to pay for services that everyone will receive. Uhmm….

    Rather than look at runaway spending and a host of new tax giveaways, lets simply raise taxes on a certain segment. Uhmm….

    Makes perfect sense for a fiscally conservative group, don’t you think?

  3. The Comma Guy says:

    Wouldn’t bringing the circus back to town only increase the deficit as they would get their daily living expenses plus other costs? And who knows what other mischief the legislators might get in to while sitting around discussing budget issues.

  4. Three Jack says:

    GA’s budget has increased almost 30% over Sonny’s term including spending on bronze donkeys, equestrian trails, land grabs and other goodies for Houston County.

    The problem is spending, not revenue.

  5. Brian from Ellijay says:

    Isn’t the GBPI the liberal tax group who wants tax increases all the time for everything?

    Let’s get an opinion from a true nonpartisan budget group-Georgia Public Policy Foundation. Kelly, what say ye?

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