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.”