Breaking: Hope for state budget fading as February shows further decline
Gov. Sonny Perdue moments ago released details on tax collections in Georgia from February and the news is not likely to give anyone comfort.
The numbers show that the state took in nearly 10 percent less in February than it did in the same month in 2009. Lawmakers had been hopeful that this past month would have finally shown a sign of recovery. Instead, it’s the 15th consecutive month of declining revenues.
Perdue’s office, however, says that of the $62.20 million drop in revenue, about $50 million of that is due to a spike in income tax refunds. They see another positive sign: For the first time in 17 months the Department of Revenue’s monthly gross revenue collections increased by $27 million, or 1.7 percent, when compared to February 2009.
Regardless, the result is the same: More pain to come.
Here are the key numbers from February:
- Individual income tax collections were off 18 percent.
- Sales tax collections were down 12 percent.
- Corporate income taxes were off 25.7 percent.
- Tobacco tax collections were down by 20 percent.
On a year-to-date basis, the numbers are even worse.
The state has seen revenues collected since July 1, the beginning of fiscal 2010, drop by 12.7 percent, or $1.35 billion, compared to the same period in fiscal year 2009.
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91 comments Add your comment
Timon
March 8th, 2010
4:05 pm
It’s pretty simple. Get some businesses and some jobs here and people will have money to spend and then revenues go up. People cannot give what they no longer have in the ways of expendable income.
Frank
March 8th, 2010
4:09 pm
It’s pretty simple: raise taxes.
roger
March 8th, 2010
4:13 pm
It’s neither pretty or simple. To get spending under control, we will have to return most functions back to the local level. That will be about as simple as a tooth extraction without novicaine.
GW
March 8th, 2010
4:15 pm
Does everybody realize that GA. is 46th is the nation in taxes? We need to look at the tax rates, but mostly user fees that haven’t been upgraded in several years. I wouls alos like someone to tell me why the state cannot collect al of the tax it is owed? In my county, if you don’t pay your taxes they seel the property. The whole sales tax collection and reporting “on the honor system” is not working. I honestly believe the taxes are collected, but not being paid to the state. Time to do business different, and getting rid of higher education is not the answer. This is our future.
CC
March 8th, 2010
4:16 pm
Stop outsourcing of good tax paying jobs! Even state jobs are being outsourced! We need to start thinking of building up the middle class again in the state.
Jr. Samples
March 8th, 2010
4:16 pm
I guess Sonny needs to pray.
GW
March 8th, 2010
4:18 pm
Prayer is not a bad idea. Worked for the rain and water situation.
Hayek
March 8th, 2010
4:19 pm
“Does everybody realize that GA. is 46th is the nation in taxes?”
What’s your source? I’m pretty sure that the 46th figure is incorrect or reflects only state spending not combined state/local spending. GA is one of the most decentralized states (the “home rule” tradition) so state spending is a smaller share of combined state/local than almost any other state.
ricardo
March 8th, 2010
4:20 pm
Lay off state workers. It’s the only way to square away the budget deficit. In the future, no state worker will be eligible for a pension. 401K works in the private sector and can work in the public sector as well.
Billy
March 8th, 2010
4:20 pm
Maybe its due to that nobody wants to live in GA anymore. Atlanta used to be the thriving city to be for entertainment, nightlife, etc. but backwoods type ideologies no longer give people a reason to come here anymore. They rather go to New York, L.A. Miami, etc these cities interests YOUNG people a lot more. Let’s just face it, OLD RICH people don’t spend any money which is important to keep a good economy, it is YOUNG people that spend money. Downtown Atlanta? Why should I go down there, there is absolutely nothing I want to see, everything I can get in my neightborhood and I don’t have to deal with the hassle of parking. You want jobs here, well give a reason why, they should come here.
potstirrer
March 8th, 2010
4:21 pm
TIME to go into line item veto!!! Time to go thru the budget and slash 10% off AVERYTHING lets start with “AFRICAN AMERICAN GOLF FOUNDATION” for 85 grand!!! Why does Sonny need to support this?? How about 84K for CENTER FOR PUPPETRY ARTS??? EAST POINT COMMUNITY ACTION TEAM for 17K??
64K for LOWNDES-VALDOSTA ARTS COMMISSION???
these are just an example!!!
CHECK FOR YOURSELF!! http://www.open.georgia.gov
SLASH EVERYTHING EXCEPT Safety, military, and health issues!!!!
GW
March 8th, 2010
4:24 pm
Hayek, go to GBPI.org and read the figures.
Patrick
March 8th, 2010
4:24 pm
Hey, let’s have a standing ovation for all of the politicians who got us into this mess in the first place. We should probably start with the “good ole boy” Jimmy from Plains who initiated the Community Reinvestment Act – forcing banks to make loans to very risky people. Ole Jimmy ostensibly wanted everyone to have the opportunity to own a home whether or not they could pay for it. Clinton, once elected, expanded the program and even fined banks if they refused to make risky loans. The bottom line is a housing bubble created by runaway loans to anyone who virtually had a warm body. The bubble collapsed and this is what we are left with….banks failing….home foreclosures….property values in decline. Thanks a lot to the presidents, senators and representatives who created this mess. Where is Ronald Reagan now????
tc
March 8th, 2010
4:24 pm
thanks gop for cutting special corporate rates…..really brought in the business…not!
probably lot of tax cheats too….since revenue dept doesn’t have staff to go after them plus not high priority to a party trying to prove that government doesn’t work (under them)
potstirrer
March 8th, 2010
4:25 pm
Ricardo you are CLUELESS! Are you going to slash GHP?? How about the Army National Guard?? Who’s going to protect you& family from RAPE&LOOTING when the FECES hits the FAN???
Howe about stepped up immigration controls and stop giving FREE health care to illegal immigrants!!!
Hayek
March 8th, 2010
4:27 pm
GW–thanks for source. Is it state spending only or state+local?
GW
March 8th, 2010
4:30 pm
Potstirrer’s last statement is the problem in general. If a person hasn’t paid into the system, you get NOTHING in return. There is a key word in illegal immigrant, ILLEGAL! Social Services have become a way of life for so many, I don’t think it can be reversed at this point.
GW
March 8th, 2010
4:31 pm
Hayek, state and local combined.
armchair governor
March 8th, 2010
4:32 pm
SOMETHING, SOMETHING [unintelligible partisan rant]! I can’t believe the [some politician] screwed us up so bad. Just shows that the [some segment of the political spectrum] are a bunch of [really nasty adjectives] and are out to [long drawn out conspiracy theory].
I hope all of you that [did something that I didn't or couldn't] are happy as you’ve doomed [people I relate to]. We need to [here's a really silly list of things I read on a matchbook cover that make me feel good saying but have little or no basis in reality] and if we don’t [biblical references to Armageddon].
BUNCH OF [more nasty adjectives]!!! JUST WAIT UNTIL [some inane date meant to threaten a person, groups of people, small badgers].
Sick and tired
March 8th, 2010
4:34 pm
Line item veto every nonessential item, all these halls of fame, rinky dink museums in every corner of Ga. All that mess needs to go. Priorities should be safety, health and education. The rest needs to go.
All our wonderful Governors special projects need to be first on the list of items to be cut.
Patrick
March 8th, 2010
4:35 pm
GW, there just might be a link between your logic and the corrupt politicians who allow this junk to go on at our expense.
JL
March 8th, 2010
4:35 pm
Patrick the Community Reinvestment Act did not require banks to give loans to “risky folks”, sorry… Most CRA loans were fixed loans with appropriate down payments. The percentage of CRA loans under water is far less than the vultures mortgage companies that were giving high risk, no down payment adjustable loans. Vulture mortgage companies were not operating under the CRA rule.. Why don’t you read the bill before you start making idiotic statements. Yeah.. a bill that is 30 years old caused the housing bubble and meltdown.
Patrick
March 8th, 2010
4:40 pm
armchair governor, please take your meds, man. Dimentia is not a good condition to live with day to day. Well, maybe you’re not even aware of it so just keep on posting your nonsense and we’ll just keep feeling sorry for you.
TYOUNG
March 8th, 2010
4:41 pm
I honestly feel that if government would stop making all the dumb laws like curfews for night clubs, no sale of alcohol on sunday and this new bill passed recently about pulling alcohol from fulton county strip clubs Atlanta’s revenue would increase drastically. I’ve spoken with a lot of tourist that have stated they won’t be returning back to Atlanta because it’s not entertaining. The city being a major tourist attraction is what brought all of the major spending to the city anyway so if you cut that out we are left in the situation we are in now!
potstirrer
March 8th, 2010
4:41 pm
LINE ITEM VETO AND THINK FAIRTAX.org
d2
March 8th, 2010
4:43 pm
All I know is what ever the general assembly has done for the last two years AIN’T working, but I guess it’ll take them another two years to figure it out. I remember when revenue started to drop they use to say”Well it is compared to last years when the economy was good.” That was 12 months ago. Now they come up with “well we had to pay for tax refunds.” We didn’t have refunds last FEB? The fact is something different needs to be done.
John
March 8th, 2010
4:43 pm
I agree intown and especially the downtown area is the most boring city on the planet! Well, might be on par with Birmingham or Buffalo. I decided to go to Underground on New Years, after the Peachtdrop there was absolutely no where to go except that rat whole at Underground that sports a handfful of bar and clubs. Could’nt even find a place to get a cup of coffee. Sell alcohol on Sundays in order to generate more taxes. Idiots!
Patrick
March 8th, 2010
4:43 pm
JL, so just what organization allowed that to happen? I guess in your little fantasy world Fannie Mae & Freddie Mac are squeaky clean, huh? Get a grip before you accuse me of making idiotic statements, liberal.
Mike
March 8th, 2010
4:44 pm
Atlanta needs to stop operating like a southern baptist church and run itself like a business!
tc
March 8th, 2010
4:46 pm
patrick, while you are blasting folks, blast the gop in ga for allowing the predatory lending to go unchallenged unlike the barnes tenure…..that’s contributed to ga having such a high foreclosure rate
TYOUNG
March 8th, 2010
4:49 pm
I’m not saying the sell of alcohol on sundays will generate more taxes but its jus another law that is useless they could have made a better law making it where if you owe taxes when they are filed they take it out of your check monthly so that there wouldn’t be a tax defecit and you wouldn’t be out on your rear trying to cough up the money!
tc
March 8th, 2010
4:51 pm
patrick, it was don regan under the reagan administration that basically unleashed the greed on wall street aided and abetted by morons like robert rubin and larry summers under clinton, snow and paulson under bush, and geithner under obama.
d2
March 8th, 2010
4:52 pm
There are ways to raise revenue. Ads on the sides of school buses, Sunday alcohol sales, allow horse racing, stop passing dumb bills like the microchip bill, get rid of unecessary testing at all grade levels (Use either Iowa or CRCT) don’t just get rid of it through 2 grade–what about the staff each representative and senator has–combine them. If these people I voted for were serious about raising revenue they would have come up with something. I AM not voting for them again.
ricardo
March 8th, 2010
4:54 pm
Potstirrer- You smoking dope again? Did anyone mention laying off GHP or National Guard members? Simply put, the state of GA is a jobs program and that’s partly the reason we are in this mess. The good ole pols don’t want to deal with reality. Turf wars are tough and no one wants to give up any turf. That is the Legislators!
JL is wrong
March 8th, 2010
4:59 pm
JL, that is a ridiculous oversimplification only partisan hacks would parrot.
The vast majority of sub-prime loans were made by institutions not subject to CRA. No government regulations in any way shape or form compelled them to make those loans. Why then did they make risky loans? They did so for profit and that profit came from the booming derivatives market.
Debt is an asset and it can be sold or traded. In this case debt was bundled into derivatives. A magical financial instrument that was supposed to bundle risky debt with other risky debt and somehow come out the other end as not-so risky debt. These instruments were grossly over-valued and were then traded and sold on the global market. Once the borrowers of the original debt could not pay these instruments were worthless.
Again, the vast majority of the underlying loans which were packaged into these instruments were NOT made due to any government agency compelling a lender to make the loans. They did so for financial gain and they took it too far without a clear understanding of what would happen when a large segment of borrowers could no longer pay, making the debt they held or sold, worthless.
Jeff
March 8th, 2010
5:00 pm
food sells equal Sunday alcohol sells, how ridiculous! don’t drink unless you are able to order to buy frencfries.
Patrick
March 8th, 2010
5:01 pm
tc, GOP my foot!! Let’s suppose that you own a business and have a good bit of money at your disposal. Got it? Stay with me now and feel free to read it over again just so you understand. Still there? Okay, let’s also suppose that your lazy brother-in-law arrives at your house driving a rusted out 1971 Ford Pinto and announces that he needs some money to buy a new double wide trailer. Would you make the loan? I think we would all agree that if you did you would be a bafoon for doing so. Now…..what exactly would prompt you to hand over the loan? Please explain because you sound so doggone smart.
Tax the Booze a lot MORE!
March 8th, 2010
5:03 pm
They keep proposing taxing the tobacco even more (I could care less) but with revenue down 20 percent the fact is there are far fewer smokers in the 21st century but seem to be far more alcohol drinkers. We could close the budget shortfall very quickly simply by increasing the alcohol tax! Say a $1 tax above the current on every six pack; $1 more per every bottle of wine; and say $3-$5 more per fifth.
Why is this not being considered??? It would be a very easy way to raise the shortfall and be equal to the taxes we have placed over tobacco the past decade and would help discourage drinking & driving plus help some avoid liver damage. A win-win situation from every angle. Simply put in a recession…depression sets in and people DRINK BOOZE. TAX<TAX<TAX
Jethrow Bodine
March 8th, 2010
5:08 pm
What’s insane is that there are other states turning to legalizing marijuana to generate tax revenue and yet, in Atlanta we can’t even buy alcohol on Sundays. The bars that do stay open have to sell food in order to do so. Frenchfries equal alcohol sells. Now don’t drink on an empty stomach, ya all!
Patrick is wrong
March 8th, 2010
5:09 pm
Patrick, that is a ridiculous oversimplification only partisan hacks would parrot.
The vast majority of sub-prime loans were made by institutions not subject to CRA. No government regulations in any way shape or form compelled them to make those loans. Why then did they make risky loans? They did so for profit and that profit came from the booming derivatives market.
Debt is an asset and it can be sold or traded. In this case debt was bundled into derivatives. A magical financial instrument that was supposed to bundle risky debt with other risky debt and somehow come out the other end as not-so risky debt. These instruments were grossly over-valued and were then traded and sold on the global market. Once the borrowers of the original debt could not pay these instruments were worthless.
Again, the vast majority of the underlying loans which were packaged into these instruments were NOT made due to any government agency compelling a lender to make the loans. They did so for financial gain and they took it too far without a clear understanding of what would happen when a large segment of borrowers could no longer pay, making the debt they held or sold, worthless.
potstirrer
March 8th, 2010
5:11 pm
Ricardo if “GA allowed it, I would!!! Good response back, I agree with you the POLS, are the real reason here. SO this fall ELECT ALL NEW POLS!! They couldn’t be any worst than what we have now!!!
tc
March 8th, 2010
5:14 pm
last i checked ga was fairly low on number of state employees per capita; there are too many counties hence too many of them per capita….ga teachers paid fairly well in the se region…think ga has fairly decent class sizes…or at least they were several years ago….one source listed 2005 tax burden as follows:
Based on a 30K annual income, income, property, state sales
1 Vermont….. 3,600.16
2 Hawaii….. 3,477.93
3 Wyoming….. 3,417.77
4 Connecticut….. 3,300.49
5 Delaware….. 3,228.79
6 Minnesota….. 3,093.93
7 Massachusetts….. 2,815.23
8 Alaska….. 2,798.66
9 California….. 2,724.31
10 New Jersey….. 2,630.65
11 New York….. 2,606.62
12 Rhode Island….. 2,443.07
13 Wisconsin….. 2,429.96
14 Maryland….. 2,410.23
15 West Virginia….. 2,367.17
16 Washington….. 2,359.99
17 Arkansas….. 2,357.84
18 Michigan….. 2,324.39
19 Maine….. 2,323.12
20 New Mexico….. 2,319.23
21 North Dakota….. 2,202.97
22 Pennsylvania….. 2,193.32
23 Kentucky….. 2,178.50
24 Nebraska….. 2,158.36
25 North Carolina….. 2,146.68
26 Virginia….. 2,103.72
27 Ohio….. 2,094.08
28 Nevada….. 2,074.72
29 Illinois….. 2,069.40
30 Idaho….. 2,053.51
31 Indiana….. 2,049.42
32 Kansas….. 2,039.60
33 Montana….. 2,003.79
34 Iowa….. 1,938.85
35 Oklahoma….. 1,933.21
36 Louisiana….. 1,909.52
37 Florida….. 1,905.28
38 Utah….. 1,897.32
39 Mississippi….. 1,859.69
40 Arizona….. 1,853.58
41 Oregon….. 1,791.45
42 Georgia….. 1,727.73
43 South Carolina….. 1,719.95
44 Alabama….. 1,711.27
45 Tennessee….. 1,678.23
46 Missouri….. 1,645.49
47 Colorado….. 1,639.54
48 New Hampshire….. 1,543.62
49 Texas….. 1,434.16
50 South Dakota….. 1,430.46
Read more: http://www.city-data.com/forum/general-u-s/36867-state-tax-burden-per-capita.html#ixzz0hcpae4KY
if accurate….seems ga is leading a race to the bottom
Atl Resident
March 8th, 2010
5:14 pm
First of all, do we have qualified people working in these positions (accounting and budgeting) that are saying we are really having a deficit or are they abusing and wasting money instead of managing money?
Road Scholar
March 8th, 2010
5:15 pm
Patrick: “Where is Ronald Reagan now?”
Sorry to tell you but he’s in the ground! He passed after he grew the size of government, and allowed tax increases. But getting back to your question, if you didn’t know that, it makes the rest of your contentions valueless. Keep insulting others; that is what people do when they don’t have a clue and are losing their arguments!
GMan
March 8th, 2010
5:16 pm
Frank, you are an idiot. probably a democrat to boot. simple solution is to NOT raise taxes. that is like taking more and more of a smaller and smaller pie. state needs to invests in business, technology and reduce taxes which will produce jobs so the pie gets bigger and then the tax base will grow. plus go back and read chapter 1 of econ 101. if really hard for you, think of the new Kia plant in west point, GA for a lesson.
tc
March 8th, 2010
5:17 pm
patick, you are either a dum arse or you don’t know anything about predatory lending
Hayek
March 8th, 2010
5:18 pm
So here’s a chart listing GA as 43rd in state-local revenue per capita and 35th in tax revenue per capita:
http://www.taxadmin.org/fta/rate/07stlrev.html
Why is the total revenue ranking lower than the tax revenue ranking? B/c fees for things such as higher ed are lower than elsewhere. So how about a tuition hike?
tc
March 8th, 2010
5:19 pm
patrick, did you read JL comment….do you understand that part
tc
March 8th, 2010
5:24 pm
patrick, chew on this
http://news.google.com/newspapers?nid=348&dat=20080322&id=cZRAAAAAIBAJ&sjid=o7IMAAAAIBAJ&pg=2592,1546778
GMan
March 8th, 2010
5:27 pm
also, to all the gimme gimme gimme liberals, if the tax base continues to see reduction due to lower ECONOMIC activity (not to your brains, state government like GA are welfare states which meaning they rely on the production of good business of GA to survive) then your 50 year gift of rich liberal, wasteful programs will be coming to an end rather quickly. means the state govt will shed their mostly welfare like jobs. understand? you want business taxes to go DOWN (opposite of up) so business invest more, hire more, produce more, make more and , ultimately, will get taxed more. then, follow me, their will be more in the GA welfare government to fund your welfare state. get it. really, really really simple.
Hold on to Your Hats, Its about to Get Worse « Push Aside
March 8th, 2010
5:41 pm
[...] http://blogs.ajc.com/gold-dome-live/2010/03/08/hope-for-state-budget-fading-as-february-shows-furthe... [...]
Scott
March 8th, 2010
5:55 pm
Spending is not the problem…its what you spend it on. Spending on education, technology, and infrastructure, can actually lead to lower long-term deficits because they foster growth and tax revenue. We have so demonized government spending in total that we miss the real problem…HOW it is spent and how effectively. Look at what is happening with the Beltline. Areas that will be in the path of the beltline have seen growth just on the expectation that it will be built. The beltline will do more to increase tax revenues than any other investment or tax cut that I can imagine. Its simple…if you buy something you want to feel like you got good value for what you bought…its no different with government spending…assets, liabilities. Tax cuts are only of value if people reinvest here in Georgia. Thats not at all a certain outcome.
Red
March 8th, 2010
6:06 pm
To the nut who mentioned the Fair Tax, please look at the sales tax revenue above. It is in decline as well. During tough economic times, people spend less money. A system based entirely on revenue from one source – sales tax – is bound to fail even more. In simple terms think of it this way – with stock investments do you put all in one stock or do you diversify?
And sorry to say folks – it’s time for taxes. Cuts can be made and must, but as deep as this monster goes, we need more than cuts to recover. The problem comes when every little group out there cries about their funds being gutted – poor kids this, poor babies that, poor homeless this, poor farmers that, etc. etc. We all voted for this lot – we all should suffer the consequences and give up our little ‘perks’ in programs.
A.S.Mathew
March 8th, 2010
6:11 pm
Everybody in the U.S. especially the business people, both small and big are deeply in trouble.
Those people who are engaged in the medical industry is doing fine, but the rest are constantly
worrying about, how to pay the bills and cutting down all the expenses possible. So, naturally,
the State will be faced with income shortage. The state employees from the top to bottom has
to take pay cut or working less hours, instead of laying off people. Earthquakes are taking place
in many parts of the world, but we are faced with a “financial earthquake” and to get back to the
normal life seems like a journey without any end in sight. As a small carpet business person,
only God knows, how painful it is to answer to the bill collectors, and even paying the utility bills.
Patrick is wrong
March 8th, 2010
6:20 pm
Clearly that comment was meant for Patrick, apologies to JL.
Patrick
March 8th, 2010
6:36 pm
I am sincerely awed by so many posters who are so smart. Please accept my apologies – did not mean to offend anyone. I love my government and am 100% in support of the current administration. I also realize that politicians had nothing to do with the current economy. Thank you all for educating me. How could I have been so ignorant as to entertain the concept that politicians would allow this to happen? Again, thank you!!
Scott
March 8th, 2010
7:15 pm
Did some fact checking…here are a couple of statistics:
50th (lowest) in the nation in debt per capita
49th (second-lowest) in spending per capita
but more important…
50th (last) in the nation for revenue per capita.
We dont have a spending problem people…we have a revenue problem…a big one
Greg Hal
March 8th, 2010
7:22 pm
Flat Tax would fix it all. Sate and Fedeal Governments would benefit.
Greg Hall
March 8th, 2010
7:23 pm
Enter your comments here
Scott
March 8th, 2010
7:25 pm
“Besides the long-term economic advantages of a first-class education, health care and transportation system, there are short-term economic advantages to targeted tax increases to wealthier Georgians as opposed to spending cuts alone in balancing the state budget. While some routinely demonize public spending, it is easy to forget that government plays a vital role in the economy. Every dollar the state spends is a dollar of income to an individual or business, almost entirely in Georgia. Those dollars are used by teachers, public safety officers, nurses and other state employees to buy groceries, housing and health care. State contractors hire employees and buy goods and services produced in Georgia. Every dollar cut from state spending is a direct loss of demand for the products of Georgia businesses, driving the economy deeper into recession.”
From:
http://www.onlineathens.com/stories/010809/opi_374971938.shtml
if you want to read the full article
BDubbs
March 8th, 2010
7:36 pm
Timon–what you say is simple is not simple. You cannot wish for businesses and jobs and they appear. Georgia is highly successful in luring corporate relocations (read this week’s Atl Business Chronicle)and here are examples: Kia plant, Sony Ericsson, Newell Rubbermaid, etc. Every state is fighting for the same or keeping what they have. Manufacturing is not coming back which means don’t drop out of school, learn some skills, get a degree and make yourself useful. Taxes are what makes a government run and hoping they will go away is unrealistic. Georgia taxes aren’t that high. Timon, maybe you should start a business and start paying some corporate and payroll taxes?
BDubbs
March 8th, 2010
7:38 pm
Scott you are right on with your comments.
Roy barnes
March 8th, 2010
7:44 pm
I thought me getting rid of the Confederate State Flag in 2001 would solve all our problems, sheezt, what happened there?
Drew
March 8th, 2010
7:58 pm
“Okay, let’s also suppose that your lazy brother-in-law arrives at your house driving a rusted out 1971 Ford Pinto and announces that he needs some money to buy a new double wide trailer. Would you make the loan?”
No. But the banks did, not because they were forced to, but because they figured that they could take money from your lazy brother in law for as long as he could make the payments and, if he defaulted, sell the double-wide for more than it was worth. Which they could, for awhile. Then the bubble burst, the lazy brother in law stopped making payments, and the double-wide wasn’t worth half of what he paid for it. And thus the current crisis.
I suppose it’s difficult for anyone who worships at the altar of St. Ronald and St. Ayn to comprehend, but the private sector has proven time and again that it is quite willing to seek short term profit in the face of long term loss, because the private sector knows that if worse comes to worse, they can force the loss on the suckers and keep the profits for themselves.
Scott
March 8th, 2010
7:58 pm
As far as how Georgia approaches attracting business…we are not doing it quite right.
http://www.tondeestavern.com/20090112818/is-georgia-business-friendly.html
Businesses care far more about infrastructure, educated workforce, crime, and technology investment when they think about relocating then they do about tax breaks. The link above is an interesting read
d2
March 8th, 2010
8:10 pm
Scott, you really make sense, very intelligent points. I wish our legislators understood that way. I believe you hit the problem.
Padonk
March 8th, 2010
8:30 pm
Scott I agree with you and if the legislature takes the advice of some idiots and lays off 8000 state workers and puts them on the unemployment line they will do nothing but compound our economic problem, The State is already having to borrow fed money to pay unemployment. I agree with Senator Harp do a early retirement and get rid of the higher paid employees and save the jobs of lower paid employees who need a pay check and benefits. As for Ricardo he must not know that any employee hired in state position now has to invest in a 401k or 457 plan for retirement.I bet Ricardo has gotten raises over the past 4 years, my firends who work for the state and provide a valuable service and protect us have not had pay increase and they bring home pay has been reduced year by year.
Scott
March 8th, 2010
8:31 pm
Its very frustrating to watch ideology trump facts and statistical data. Especially when the ideology is so rigid as to not admit that some premises are just factually proven wrong
John
March 8th, 2010
9:34 pm
I’m glad I live on the Ga and Ala border. I shop in Ala because the state tax is cheaper. Columbus has a .3 tax I avoid by driving 3/4 a mile. Wait until Ga taxes smokes more and I will buy them there. Sent me to war when I was 19 and gave us smokes. Got a generation hooked and boy do they love us now.
ScienceTeacher671
March 8th, 2010
10:49 pm
Scott, you make some excellent points. I’ve been trying to figure out how much of the decline in state payroll taxes is due to job losses in the state, and how much can be attributed to furloughs of state employees and teachers.
February’s Revenue Numbers add to the budget concern « VOICES TODAY…for Georgia's Children
March 8th, 2010
11:42 pm
[...] The Governor released the February 2010 revenue numbers today. The revenue collections for the month of February 2010 compared to February 2009 were down 9.9%. And, last February was pretty grim. [...]
State Employee
March 9th, 2010
12:04 am
I am a manager in title, with multiple degrees who has over 28 years of service with the State of Georgia….I work in an area where I visit multiple state agencies and see the waste that is produced at many levels. I know I could do without about 15-20% of the job program people in my division.
I know from audits that other agencies and departments could probably cut as many..15-20% and see little or no change. My counter parts in Virginia, California, Tennessee, North Carolina, Florida, Ohio, West Virginia, Kentucky and Mississippi have already began a 2 and 3 tier cutting of jobs.
They ALL tell me it hurts to see fellow employees escorted out the door, however the production is probably and likely better due to the wasted time and allotment of resources to many who were really not qualified to be on the Government dime. This includes, office space, vehicles, office supplies, benefits, and many many other expeditures related to employees. I love my job and my fellow employees….however I am a tax payer first and I see the waste with having person do less and less due to the lack of funding for many projects and programs…
I will go out on the limb and say right off the bat that groups like IT, Personnel, NEED to be cut drastically….I see audit after audit where IT creates work that is never completed and the wasted end product is to throw more money at it.
All teachers, Public Safety and Child Care Advocats should be amune to any cuts….
State Employee
March 9th, 2010
12:17 am
should have said IMMUNE…
Audit
March 9th, 2010
6:26 am
State employee, can you provide any links or references to audits stating that IT is under worked or making work? I work in IT for a USG institution and do not see IT functioning as you have described.
Hayek
March 9th, 2010
8:18 am
“Its very frustrating to watch ideology trump facts and statistical data.”
Look in the mirror–you’re the one putting out the bogus bunk about being last in the nation in revenue per capita.
DannyX
March 9th, 2010
9:57 am
Ronald Reagan was mentioned but no real examples were given. Here’s one.
While campaigning for Governor of California, Reagan promised to cut the state budget and lower taxes. Once in office he realized he couldn’t cut enough of the budget without harming California’s College and University system.
He raised taxes! He would not cut the education budget. The education system that would feed places like the Silicone Valley, a leader in modern culture.
Ideology is nothing without leadership.
So sad
March 9th, 2010
10:42 am
This state is imploding and its making me sick. The worst part about it is we have complete IDIOTS representing us in the capitol. We have billions in shortfalls, but we still find a way to raise tens of millions for a College Football hall of fame? Does that not raise some red flags people? What concerns me EVEN MORE are the candidates running for governor. Notice how they are almost all avoiding this issue? These are the people that want to be in charge of our state and they are HIDING FROM THE ISSUES!?! Only Handel has impressed me and I NEVER would have said that a month ago. I think this state is beyond repair and we should consider moving to a state that works. The worst part of that is that there are only two areas doing well – DC and Texas – and I don’t really want to live in either
Base
March 9th, 2010
2:21 pm
Sonny and the goofs at the state house and their slash and burn mentality have dug the hole too deep. We will always have 10 to 12 percent unemployment with depressed revenues.This is by design not chance.But we can always carry our guns!
Scott
March 9th, 2010
3:29 pm
Hayek, did you think for a minute I couldn’t back up what I say? Don’t look in the mirror…I hear trolls can zap themselves that way…
Let us know when you can have something meaningful to say.
http://www.taxfoundation.org/research/show/284.html
http://enterkom.com/enterprise/index.php?option=com_content&view=article&id=1143:georgia-50th-in-dept-49th-in-spending&catid=86:legislative-update&Itemid=84
http://www.alanpowell.net/?go=viewnews&newsid=2988
Scott
March 9th, 2010
3:37 pm
FYI Hayek..your numbers are for 2007
Scott
March 9th, 2010
3:37 pm
Here are my links to back up my comment
http://www.taxfoundation.org/research/show/284.html
http://enterkom.com/enterprise/index.php?option=com_content&view=article&id=1143:georgia-50th-in-dept-49th-in-spending&catid=86:legislative-update&Itemid=84
http://www.alanpowell.net/?go=viewnews&newsid=2988
Scott
March 9th, 2010
3:39 pm
For some reason the post with my links is “awaiting moderation”
Scott
March 9th, 2010
4:34 pm
Here is one
http://enterkom.com/enterprise/index.php?option=com_content&view=article&id=1143:georgia-50th-in-dept-49th-in-spending&catid=86:legislative-update&Itemid=84
Scott
March 9th, 2010
4:35 pm
Here is two:
http://senatepress.net/south-georgia-at-the-state-capitol-7.html
Scott
March 9th, 2010
4:38 pm
I’m guessing multiple links in a post is pulled as potential spam…but here is the 3rd. How many more references do you want.
http://aysps.gsu.edu/frc/3007.html
tc
March 9th, 2010
4:47 pm
unfortunately, once a penal colony….always….
Scott
March 9th, 2010
5:31 pm
…and they are getting ready to screw up with the transportation bill which was already 2 years late in asking for a vote. These guys seem to have a real knack for doing the opposite of what is needed
Scott
March 9th, 2010
5:32 pm
tc…Australians might take issue with you
tc
March 10th, 2010
11:13 am
obviously, you don’t know many Australians, mate! lol
Show Us the Money
March 10th, 2010
5:45 pm
OK, enough is enough!!!! You keep saying that the money is gone, but that’s just no longer good enough. We have to file taxes EVERY YEAR, and itemize our monies. State of Georgia, tell us…SHOW US where the money is going. All this “we’re broke, folks” has to stop because we can’t take your word anymore. Itemize where our money is going.
This is small government’s time in Georgia | Kyle Wingfield
March 10th, 2010
6:59 pm
[...] turned even worse this week when Gov. Sonny Perdue revealed that, rather than rising as hoped, state revenues fell again last month — down 10 percent from a year earlier and a staggering 41 percent from February 2008, when we [...]