Georgia has announced that year over year revenues increased just under $900M for the fiscal year ending June 30th. Per the AP via the AJC:
ATLANTA — A new report shows Georgia has ended the fiscal year with an increase in revenues of about $879 million, a 5.2 percent increase over the previous year.
“Gov. Nathan Deal‘s office said Monday that Georgia’s net tax collections for the fiscal year totaled nearly $17.9 billion, due in part to a large increase in corporate income tax collections. For the fiscal year, those corporate collections totaled $944 million, an increase of 18 percent over the previous year’s total of $797 million.
I briefly saw a tweet this morning that says June revenues were up about 11%. That would imply that the growth was accelerating toward the end of the year, and that Georgia’s economic recovery is continuing. Announcements like the one this morning that Beaulieu will be investing $200M to bring 350 jobs to Bartow County provide anecdotal evidence.
We need to ensure that the dividends of this growth are managed well. Since the recovery began, we have directed a majority of each year’s increase back to education to restore cuts and eliminate furlough days. That’s likely to continue.
The state, like the rest of us, continues to see the costs for Health Care increase faster than inflation, so that’s a chunk of the budget. This is mostly baked into the cake.
We also significantly under spend every other state when it comes to transportation infrastructure, and that must be our next priority to address. The “fourth penny” of the sales tax on motor fuels currently goes to the general fund instead of the DOT. The state constitution mandates that taxes on motor fuels go to the DOT to be spent on transportation. Now that we’re growing robustly, it’s time to correct this part of the problem.