January brings no relief as state revenues fall again

The state of Georgia saw its revenues fall by another 8.7 percent in January, the 14th consecutive month of decline, another sickening sign that the state’s economy has yet to recover.

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, a difference of more than $1.28 billion.

The news comes the day before 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.

The state did not build on December’s gains in individual income tax collections, which were up 6 percent over December 2008. In January, however, those collections were off 16 percent from January 2009. Sales tax collections fell 5.5 percent in January, while corporate income tax collections actually shot up 634 percent. That is the smallest pot of revenue of the three, however.

Individual income tax collections

January 2010: $772.11 million

January 2009: $918.91 million

Difference: 16 percent

Corporate income tax collections

January 2010: $23.64 million

January 2009: $-4.43 million million

Difference: 634 percent

Sales and use tax collections

January 2010: $884.98 million

January 2009: $936.21 million

Difference: -5.5 percent

Fiscal year to date (July 1-Jan. 31)

Overall tax collections: $8.69 billion

Same period a year ago: $9.98 billion

Difference: -12.9 percent

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55 comments Add your comment

Base

February 9th, 2010
4:30 pm

The Sonny economy continues to fail.Thanks Sonny!

Mike Jones

February 9th, 2010
8:12 pm

My Boss cut my salary last week. I don’t know what to do. I guess I could either cut my spending and save money by purchasing generic food, or possibly stop going out to dinner four times a week at Longhorns..

Georgia revenues fall again. | The Biz Beat

February 10th, 2010
5:59 am

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

Rai

February 10th, 2010
6:52 am

Enter your comments here

tc

February 10th, 2010
8:41 am

sonny is not the only one to blame……robber barons, neocons, everybody gets a home politicians, etc.

Hazel

February 10th, 2010
9:39 am

Obviously, we need a tax cut to get things going again.

Gov Lump

February 10th, 2010
9:48 am

Concerned

February 10th, 2010
9:59 am

The Purdue regime has allowed too many revenue and job making oppportunities go by the way side. I truly don’t understand what their problem is.

Tom

February 10th, 2010
10:01 am

Thanks to the collusion of easy mortgage financing (encouraged by both sides of the political aisle – the left in support of home-ownership by the poor and the right in support of wealthy financial institutions) and excessive home-building (encouraged by both sides of the political aisle – the left in support of high-paying, low education jobs for the poor and the right in support of formerly wealthy home-builders), we’ve destroyed both the financial and productive sectors of our economy. Don’t blame Sonny alone… nearly every politician from both major political parties sowed this field of economic recession.

the facts

February 10th, 2010
10:01 am

Time has come….permanent employee layoffs…exclude teachers, fire, law enforcement, etc…
if it is not essential….dump it……GDOT has very very few services that cannot be outsourced at less cost without the cost of the employee and benefits…

Every state in the nation has dumped , cut and major reduced all staffing.

ugaprof

February 10th, 2010
10:04 am

Where are the official state figures published? I’d like to see a graph.

killerJ

February 10th, 2010
10:05 am

Are you people in la la land ?Nation begins turnaround?This is the worst politics since President Grants tenure!When the stimulus money runs out be prepared to live in a gutter.

ugaprof

February 10th, 2010
10:07 am

Do you mean 14th consecutive month of decline or 14th consecutive month that is lower than a year earlier? You’re only comparing to a year earlier.

ugaprof

February 10th, 2010
10:09 am

…And the less people know, the louder they whine. It seems everything, even the snowstorm, is the fault of some politician or other.
The private sector *is* recovering. State employees ought to be bailing out and moving to private-sector employers. Private-sector employers ought to be snapping them up. Are they?

DAVID: AJC Truth detector

February 10th, 2010
10:12 am

Lyrics in band..ALABAMA song:referring to Great Depression…. ” DO NOT WORRY…..Dem Democrats gonnna save us all—”

DAVID: AJC Truth detector

February 10th, 2010
10:14 am

DO NOT WORRY…….OBAMA will take care of all of US…..with WELFARE CHECKS.

DAVID: AJC Truth detector

February 10th, 2010
10:15 am

APPLY FOR YOUR FOOD STAMPs today…

John

February 10th, 2010
10:17 am

Cut Government spending now. There is so much waist in Federal, State and Local governments. Cut all spending by 10%. Start with Salaries of gov employeese.

mike

February 10th, 2010
10:18 am

And now Chip and the boys are gonna reduce the states revenue even more by altering the ad valorem tax base. These guys are brilliant…

ugaprof

February 10th, 2010
10:23 am

I said “the less they know, the louder they whine,” and sure enough, someone piped up…

Bart

February 10th, 2010
10:29 am

Georgia ought to be leading the nation in economic growth, but thanks to Perdue and his Republican cronies, we are bringing up the rear. It’s time to give the Dems a chance again. Things could not be any worse. Are you better off than you were 71/2 years ago?

Dr. Phil

February 10th, 2010
10:31 am

It seems like everyone but the UGA Athletic Department is having a hard time. Instead of furlough days, those boys are getting six-figure raises.

Roy is a Crook

February 10th, 2010
10:32 am

Whatever you do, do not elect RoytheCrook to the office of Governor of the State. IMHO, he will loot whatever remains of our Medicaid and Toll Road funds for his cronies, just like last time.

Roy is a Crook

February 10th, 2010
10:35 am

The State always pays my income tax refund in July or August, but this year I am outsmarting them. I have reduced my with holding to zero, and will just apply my refund to next years taxes. I will resume with holding in April. Take that Georgia.

Roy is a Crook

February 10th, 2010
10:42 am

Yo Bart: We have not given 100 million Medicaid dollars to an out of state law firm for doing almost nothing, other than to tell the State Medicaid Agency what they already knew. Nor have we given millions of Georgia 400 toll road money to some sneaky developer to build roads in his private development in downtown Atlanta. Tell your crony RoytheCrook to go fly a kite, and keep his filthy hands off our tax money, and our toll road money.

Rodney S.

February 10th, 2010
10:43 am

Idle people and greedy people will be the downfall of this once great nation.

d

February 10th, 2010
10:44 am

I am not an economist, but what does the corporate tax increase mean. I know last month individuals’ revenue rose, but is there anyone who knows what is going on and is this a good sign or bad sign? I know the dip is bad but increase of 634% for corporate–I am confused….. Please anyone who knows a little more about the economy than me help me out with this report.

Employed Texan

February 10th, 2010
11:00 am

That stinks. You know, you could all come to the great state of Texas where our economy is already back in the green. LIFO – Last into the Recession, First out of the recession.

Jeffrey

February 10th, 2010
11:00 am

Lack of strategic leadership is partly to blame here. GA leadership is so freaking backwards. One very easy way to increase sales tax revenues is to allow us to buy beer and wine on Sunday, dammit! How easy would that be? It’s a no brainer! How about passing a transportation bill this year too? Year after year, the leadership of this state refuses to acknowledge any forethought on transportation, while the governments of FL and NC, our neighbors and economic rivals, are getting billions of Fed $$ for high-speed rail lines. GA is getting left in the dust by other states due to lack of leadership, but I guess we can all be put at ease that at least our governor goes to Sunday school each Sunday.

Chip Shirley

February 10th, 2010
11:05 am

GA needs a 25 cent per gallon tax on gasoline.

We will gain a lot in through state traffic and the way prices fluctuate we wont even notice.

It will also spur growth in tech’ efficiency.

jconservative

February 10th, 2010
11:10 am

When you get a cut in pay you cut back on what you spend. Simple.
The state needs to cut back on what it spends. Some employee benefits may need to be cut, more furlough days or simply firing some people. Just cut back on services. But you cannot spend what you do not have.

Bart

February 10th, 2010
11:12 am

By the way, Roy Is A Crook, I didn’t say say elect Barnes. There are other Dems running. Roy is not my “crony”, but if you don’t think our state is in a mess, then you are living on another planet.

Top Dawg

February 10th, 2010
11:13 am

District Attorneys’ salaries, benefits and staffs are out of control.

Jane

February 10th, 2010
11:16 am

If people had jobs, then the state would have tax money. What part of this don’t the people under the Dome understand?

Doug

February 10th, 2010
11:29 am

Yet we still have a statewide ban on alcohol sales on Sundays. How many MILLIONS of dollars in tax revenue is that blue law costing the state? This state is beyond backwards.

SNM

February 10th, 2010
11:34 am

That’s because you got morons from the governor on down running this state and running it into the ground!!!!!

Steve S

February 10th, 2010
11:38 am

Tom,

You hit the nail on the head. Until people get serious about holding their elected politicians accountable, things will not change.

talk is cheap

February 10th, 2010
11:41 am

We need to make money off money, which means raising the interests rates, but we cant do that because we are such debt, the interest payments would go through the roof.

Charles

February 10th, 2010
11:44 am

Chip said-GA needs a 25 cent per gallon tax on gasoline.

We will gain a lot in through state traffic and the way prices fluctuate we wont even notice.

It will also spur growth in tech’ efficiency
—————————————————————
I drive 45 miles one way to work- If that 25 cents is added per gallon, that forces me to quit my job, because I couldn’t afford to drive to it anymore- so I think it would be a bad idea to add more to the price of gas, seeing that there are a lot more out there like me who would be in the same predicament!

Leaving Georgia

February 10th, 2010
11:46 am

Georgia is going down the tubes. Between a joke of a state government, a lack of water, and a populace that will still vote for the same ole same ole, I’m actually considering moving. Employed Texan, is right, though Texas may not be in the cards for me. Other states are getting the job done right and growing right now, while Georgia is well above the national rate of unemployment. As each week passes, Texas, North Carolina and even Oklahoma (Yes, OKLAHOMA – so sad) are making significant strides and leaving us behind. If you can’t beat them, join em.

Chip Shirley

February 10th, 2010
11:49 am

Charles….

Going by what you said, the tax would cost you one dollar a day, or $20 per month.

The place I work just raised my parking fee that much per month and I survive on $15K per year (take home).

GA needs a 25 cent per gallon tax on gasoline.

We will gain a lot in through state traffic and the way prices fluctuate we wont even notice.

It will also spur growth in tech’ efficiency.

Derwood

February 10th, 2010
11:50 am

Has any one noticed cuts are done to teh same areas over and over and over. I see two places cuts have not been mentioned. Medicaid and Prisons. IN our small town we have had one young man impregnat three different girls. He walks the street every day doing nothing while we tax payers continue to support his three kids and the girls who had them. If he is not going to pay support, I say don’t let him walk the streets Put him under house arrest with ankle monitor, or give him choice to get a job and support his kids. Our state continues to pay and pay and pay for these kids who are being conceived over and over and over by parents who are deadbeats. It is time to change this. How? It is simple when a child is born you ask the mtoher who the father is. If they don’t know or won’t answer, you tell them no benefits to her or the baby until the father is known. Bet she will make a list of suspects. You then take DNA testing to prove who the real father is and make him support his kids. I paid child support for 18 years. You aught to support your kids or use condoms. We also have governmental employees in the department that monitors medicaid that doesn’t always play by the rules and regulations. They often times will assist people to secure aid when they are not entitled.

ugaprof

February 10th, 2010
11:51 am

I found the official figures and press releases at https://etax.dor.ga.gov/whatsnew.aspx (especially the bottom right of the page). But they don’t appear to have a graph. I may make one.

Delta

February 10th, 2010
11:52 am

Leaving Georgia,

We are ready when you are!!

JimC

February 10th, 2010
11:58 am

Hellooooo… anyone home? If you have less revenue, you cut spending. Is that concept too difficult for Perdue and the General Assembly to grasp? Apparently it is, since their reaction is to find new taxes to burden us with.

I’m sick of this.

JimC

February 10th, 2010
12:01 pm

Derwood is right about bringing the deadbeats to task, but if any elected official proposed to do that, the left wing (i.e., Democrats) would start screaming bloody murder.

The Tar and Feathers Party

February 10th, 2010
12:11 pm

I suggest we start a new political party, The Tar and Feathers Party, dedicated to tarring and feathering ALL existing politicians, and replacing them with people who will control spending, and not steal everything that is not nailed down, under threat of themselves being tarred and feathered.

gussguss

February 10th, 2010
12:14 pm

Anyone can “lead” when times are good; there are no challenges; the coffers are full. “It’s the economy, stupid!” When will people understand that we can not spend more than is coming in. We have to reduces services/programs or raise revenue (taxes). You choose. Let me think: Does Texas still sell oil??? Wonder how they got back on their feet?

Hey Derwood, how about a vasectomy for that “dad” in your town.

Smith

February 10th, 2010
12:19 pm

Idiots don’t understand anything about running a business, which is how a well run government would operate. They need to decrease spending, which they have done in some areas but not on some of the “pet” projects, and look for other revenue streams, I like the selling alcohol on Sundays recomendation though I would not buy on Sundays myself. Seems idiotic not to do both when they are so easily implemented. Also Selling on Sundays may even create a few jobs since liquore stores would be open and need people to work those new extended hours.

Dunwoody

February 10th, 2010
1:19 pm

gussguss, Texas definitely helped weather the storm with oil, but keep in mind California is 2nd in reserves and energy related jobs. How are they doing?

uberVU - social comments

February 10th, 2010
3:06 pm

Social comments and analytics for this post…

This post was mentioned on Twitter by Xpaz22: January brings no relief as state revenues fall again http://tinyurl.com/y9ovt5m…

the facts

February 10th, 2010
3:36 pm

Governments will never be able to run like Private Business because that would require:

Balancing a budget
Employees being accountable
Taking power away from the Politicians
Requiring managers to audit their expenditures
Removing all the bullets from the guns of the Legislators who have the guns to take away your money.

But we all know that a Good Business person if given the Automony Power could have the State Government on the right path in 6 months with a Positive Business Plan. Of course every person without their FREEBIES would stomp around Crying and Screaming.

Sticky Gopedal

February 10th, 2010
7:36 pm

“Government will never be able to run like a private business…”

Enough said.

You could have saved the rest of the lies, half truths, and right wing drivel.

In the interest of fairness | Kyle Wingfield

February 15th, 2010
11:36 am

[...] with revenues continuing to fall sharply just last month — a fall of 8.7 percent from January 2009, and 21.7 percent from January 2008 [...]

wolverine45

February 23rd, 2010
9:34 pm

oh so they will empty out prisons early and raise taxes to generate more revenue!!!!!!! WHF HERES A FRIGGIN IDEA YOU STUPID RETARTED A** WIPES STOP ILLEGAL IMMIGRATION AND DEPORT THE 30 MILLION JOB STEALING INVADERS AND DO IT NOW!!! NOW!! USE EVERIFY AND DO IT NOW!!!