Perdue: April revenue figures ‘not encouraging’

Gov. Sonny Perdue just met with reporters after a bill signing and made much news: 

– The governor said the April revenue figures will be released today and they “are not encouraging.”

– He said he will veto H.B. 481, the tax credit bill that offered breaks to companies that hire unemployed workers, but which also included a late amendment to cut the state’s capital gains tax in half.

– But, he will sign S.B. 200, which overhauls the Department of Transportation by creating a new director of planning and giving the General Assembly much more power to oversee road spending.

– He signed into law H.B. 261, which gives anyone buying a home during a six-month period this year a $1,800 state income tax credit over three years.

Let’s take them one-by-one.

On April’s revenue figures, Perdue said it will be another negative month, meaning the April 09 collections of state personal income, sales and corporate income taxes will be below the April 08 collections. But, he said, April 2008 “were some of the highest we’ve had. It was a huge month to overcome.”

The state’s slide in revenue began in earnest in May and June 2008, which makes Perdue hopeful April 2009 “is the last bad month.”

He said he has met with the state’s planners to talk about contingency plans to keep the state on track to keep the state’s books balanced.

On H.B. 481, the governor said he agrees with much of what the bill would do, but “unlike the federal government, who can run a deficit, Georgia is a balanced-budget state and we cannot run a deficit.”

On S.B. 200, Perdue said it “goes a long way toward establishing the opportunity for our state to be planned in a holistic way over transportation.”

The appeal of the bill, he said, has nothing to do with the personalities of the DOT board, but instead it is the design of the board that is problematic. 

“They are elected from a single congressional district, pledged to support and uphold that district, by its very nature does not lend itself to a statewide transportation plan,” Perdue said. 

S.B. 200, he said, gives authority to the new director of planning to ultimately determine, on a statewide basis, where the state should focus its transportation resources. But, it also gives the General Assembly a “say in the budgetary sense.”

Perdue made all of these comments after signing H.B. 261 into law. It is a bill, he said, that will jump start the state’s economy by encouraging home sales. 

But it is also an incentive, unlike H.B. 481, that is temporary. 

“You don’t keep the jumper cables on forever,” he said. “Allow the economic engine to recover and charge itself.”

33 comments Add your comment

bob jones

May 11th, 2009
1:07 pm

what incompo proof read the bullet, governor will video tax credit bill

Road Scholar

May 11th, 2009
1:24 pm

Gov, you controled the Commissioner and the board before; what makes you think that this will work ?

AJC Lover

May 11th, 2009
1:33 pm

Gotta love Sonny. Why is this even being covered? Isn’t there an apartment fire somewhere?

GA Citizen

May 11th, 2009
1:40 pm

Thank you, governor, for your veto of the irresponsible tax-giveaway legislation. While I often disagree with your positions, at least you aren’t bent on destroying our state government (like the idiotic House Speaker and his band of merry idiots).

Paul

May 11th, 2009
1:47 pm

I don’t agree with everything the Governor has done but I applaud him in standing up to the irresponsible members of the State House and Senate in terms of the budget. Like usual, those Gold Dome officials are trying to have dessert before they eat the spinich. As a balanced budget state, somebody has to act like an adult here and make some tough decisions. We cannot allow our good bond rating to take a hit. Kudos to the Governor for this veto.

[...] Karen Handel just put out a statement declaring herself “disappointed” Gov. Sonny Perdue’s decision to veto a capital gains tax cut passed by the Legislature. While I appreciate the Governor’s position that the tax cuts included [...]

OneChris

May 11th, 2009
2:01 pm

Good luck to anyone trying to sell your home in Georgia … Now go find a buyer! Tax incentive is for ANYONE so that is great news!

Karl Childers

May 11th, 2009
2:06 pm

I like dem higher taxes almost as much as I like biscuits and mustard. Dat’s why I vote democrat…

mmmmmmmmmmmmm……………..

Karl Childers

May 11th, 2009
2:13 pm

Me and Sonny go way back. He’s a good boy I reckon. Him and I use to eat dat potted meat all the time…

mmmmmmmmmmmmmmmm……………..

deerfly11

May 11th, 2009
2:36 pm

Johnson and Richardson make Perdue look smart.Fly

frank

May 11th, 2009
2:42 pm

when does hb 261 go into effect? I was supposed to close today!

professional skeptic

May 11th, 2009
2:49 pm

Astounding. A rare glimpse of budgetary responsibility from an incumbent Republican. I fully expected Sonny to sign off on this blatant tax giveaway, but he proved me wrong. As much as it may hurt, it is always better to “pay as we go” in order to preserve a balanced budget, rather than borrow to cover our expenditures.

observer

May 11th, 2009
2:50 pm

“Johnson and Richardson make Perdue look smart.Fly”

And you make those two look like MENSA members….

Stan Marsh

May 11th, 2009
2:54 pm

Tax cuts are irresponsible when revenues decline. I’m a Democrat but applaud Sonny this time.

Bosch

May 11th, 2009
2:57 pm

I like biscuits and mustard.

RJ

May 11th, 2009
3:06 pm

“He said he will veto H.B. 481, the tax credit bill that offered breaks to companies that hire unemployed workers, but which also included a late amendment to cut the state’s capital gains tax in half.”

Let’s see Gov. You signed into law a give-a-way bill that gives tax credits to home purchasers. This is a handout to realtors, bankers, and your contractor friends. At same time you vetoed a bill that would have created jobs by giving tax credits to employers hiring the unemployed and decrease corporate capital gaines taxes. This bill would have created jobs and increased state government reveune.

Can’t figure you out Gov. Glad you aren’t runnign again. Voted for you twice but nno more!..We need true conservatives running government.

JustAGrunt

May 11th, 2009
3:08 pm

So companies now have no incentive to hire, and while the corporate tax rate doesn’t change they will continue to do business as usual, meaning more layoffs are on the way.

Now I wonder where those road projects are so those out of work IT folks can get busy shoveling asphalt.

Bertzilla

May 11th, 2009
3:11 pm

Wow, our Gov makes Alabama’s Gov look like a freaking genius.

chuck allison

May 11th, 2009
3:14 pm

Democrats may or may not like Sonny Purdue, but Democrats always hate tax cuts. I say cut taxes, and make it a felony to vote for a bill that spends money to put GA into deficit spending. If you can’t reduce governement and government entitlement programs, then take away their money.

where credit is due « Walk In Brain

May 11th, 2009
3:31 pm

[...] where credit is due By Wes F. in Hapeville Gov. Sonny Perdue usually makes me want to hurl large objects against the wall, but he did the right thing by vetoing this irresponsible capital gains tax cut. [...]

Jaun Carlos Diego Raul Sanchez

May 11th, 2009
3:31 pm

thanks Sonny…maybe the dems will look at cutting the size of gov. in the public sector companies lay off and cut back hours worked…not governemnt…but the people that don’t see that are the ones yelling a Popey’s and KFC for not having chicken…

George

May 11th, 2009
3:34 pm

Can you buy a house if you don’t have a Job?

Turkey Slayer

May 11th, 2009
3:50 pm

Apparently Handel is too stupid to actually read the bill. Capital Gains was but a part of it. The liberals just love staging attacks of the fiscal responsable people in the name of taking from the rich to give to the poor. To RJ: You need to read that bill again. It doesn’t give anything to realtors, bankers or contractors. It amazes me how liberals think.

the real OLD GOLD

May 11th, 2009
3:51 pm

This is sure to spur economic activity in Georgia.

Crystal

May 11th, 2009
3:55 pm

HB 200 is a job for one of Sonny’s friends. I guess this was payback for DOT’s Board.

Perimeter Progressive

May 11th, 2009
3:57 pm

How much do you want to bet that Perdue nixed that bill over the “employing unemployed workers” bit over the “capital gains” bit.

dgroy

May 11th, 2009
4:04 pm

Folks, I don’t believe for one minute that any of this was to help the citizens of Georgia…..it’s just another smokescreen to try to make us believe they’ve actually done something constructive, all for political and personal reasons. All of ‘em are there for one thing and one thing only and that’s to better themselves politically and financially. Don’t expect too much out of our state government and you won’t be disappointed.

Community Organizer's Friend

May 11th, 2009
4:10 pm

Purdue used to be a Democrat–which explains his aversion to cutting taxes.

Think Arlen Specter Lite.

DAVID

May 11th, 2009
4:11 pm

PEOPLE NEED TO BE GLAD WE DONT HAVE A DEMOCRAT RUNNING THE STATE.
LOOK WHAT THE ONE IN WASHINGTON IS DOING.
THIS COUNTRY TOOK FOREVER TO END SLAVERY. NOW WE HAVE A PRESIDENT WHO IS TRYING TO OWN YOU! WE NEED LIMITED GOVT! NOT MORE GOVT.
OBAMA IS THE WORST PRESIDENT THIS COUNTRY HAS EVER HAD!!!!!!!!!

Georgia 1st

May 11th, 2009
4:11 pm

this is only one of a few things that I like that the guvnor has done in 4 years ;-)

nana

May 11th, 2009
4:17 pm

Agreed dgroy and the same goes for the federal government.

[...] today, Gov. Sonny Perdue told reporters the soon-to-be-released April 2009 revenue figures were “not [...]

Sandy

May 15th, 2009
3:59 pm

Sonny manages the state economy like he does everything else, by the seat of his pants.