Power Breakfast: State revenues fall again, Honda recall, Delta, soft drink labels, Spectrum, Toyota

State revenues keep getting hammered in this economy.

Georgia saw its revenues fall by another 8.7 percent in January, the 14th consecutive month of decline, AJC staffer Aaron Gould Sheinin reports.

Overall, the fiscal year that begin July 1 has seen the state collect 12.9 percent less in taxes and other revenues than the comparable 7-month period a year ago, Sheinin writes. That’s a difference of more than $1.28 billion.

Lawmakers in the House Appropriations Committee are expected to adopt an amended 2010 budget that cuts $1.2 billion from the version approved by the Legislature last year. The amended budget was built around a revenue estimate from Gov. Sonny Perdue that is now obsolete, given the continued drop of tax collections in January, Sheinin reports.

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2 comments Add your comment

TnGelding

February 10th, 2010
8:38 am

I’m thinking compliance must be way down.

Ron

February 10th, 2010
10:34 am

So, TnGelding, you think it’s compliance. People just aren’t paying up. Let’s do a quick analysis. In Georgia the official unemployment rate is 10.3%. The actual unemployment rate is probably closer to 18.0%. This equates to close to half a million Georgians unemployed. What does this mean, well, that a half-a-million people are not paying income tax (because they have no income), a half-a-million folks are paying less sales tax (because they’re buying less stuff), a half-a-million people are not paying luxury taxes (because they’re not buying luxury stuff). I could go on but you get the picture.

Now, since people are buying less stuff then business income is down and they are paying less business income taxes. As I’ve said before, we are in a perfect economic storm, everyone and everything is affected, including the state of Georgia government.