Georgia government is getting down to bathtub size
State revenue fell a startling 9.9 percent last month compared to February 2009. The news has turned the gaping hole in Georgia’s budget into a Texas-sized crater.
But it no doubt makes Grover Norquist very happy.
Norquist, a Washington-based anti-tax zealot, once bragged that he wanted to shrink government down “to the size where I can drag it into the bathroom and drown it in the bathtub.” Today at noon, he’s scheduled to address an anti-tax rally on the steps of the Georgia Capitol, where he will find his fondest wishes coming to fruition.
To Norquist and his allies, the February revenue numbers are what success looks like. This is what opportunity looks like. This is their dreams finally coming true.
Those numbers mean that teachers in public schools — “government schools,” as Norquist calls them — will face more furlough days and even layoffs. It means that thousands of state employees may be laid off, schools will be closed, and sharp increases in tuition will put higher education out of reach for thousands of Georgia students.
To the small-government crowd, this is all good. This is government finally being “rightsized” to a scale suitable for drowning.
But for others, the news is very real trouble. It means a state government that was already one of the leanest in the country, a government already short of resources to perform basic duties such as educating children, providing medical care to the needy, building roads and protecting public safety, faces still more cuts in core functions.
At the Capitol, legislators and budget planners had been awaiting the February numbers anxiously. And while many feared they would contain bad news, few if any predicted a decline this large. The budgets for fiscal 2010 and 2011 had been built on expectations that revenue would begin to recover at least slightly by now, and that’s not happening.
As a result, the deep budget cuts that many legislators found so appalling will have to be deeper still. Other assumptions will also have to be challenged, including the assumption that tax increases can’t be part of the solution.
Other states have already taken the difficult step. Last year, North Carolina closed a $4 billion budget gap by making $2 billion in cuts along with a temporary one-penny increase in the state sales tax and a temporary increase in the state income tax for high-end earners.
In Arizona, voters will go to the polls March 18 to decide the fate of a temporary one-penny sales tax increase that would raise $970 million in its first year, allowing the state to avoid $500 million in cuts to public education.
In Connecticut, legislators last year approved a temporary surtax on large corporations and raised the income tax on top-end earners. And in 2009, Kentucky put the sales tax on alcohol for the first time.
Similar ideas have been proposed here in Georgia, but none has gained any real traction yet. For example, state Rep. Ron Stephens, a Savannah Republican, has proposed a dollar-a-pack increase in the tobacco tax that he estimates would raise $350 million.
Gov. Sonny Perdue has proposed taxes on health-insurance premiums and hospital beds that would raise $300 million. And the Georgia Budget and Policy Institute, a progressive think tank, has suggested a range of options from fee increases to a 1-percent surtax on incomes above $400,000 that could raise $225 million a year.
Even with plummeting revenue figures, finding support for such proposals won’t be easy in an election year. The philosophy championed by Norquist and others — a philosophy they attribute to President Ronald Reagan — has a strong grip on much of Georgia’s leadership
But it’s important to note that in 1967, in his first year as governor of California, Reagan himself signed a tax increase of almost $1 billion, the equivalent of a $6.5 billion tax hike today. As president, Reagan signed at least three major tax increases, including the single largest tax increase in U.S. peacetime history.
He may not have liked it, but Reagan knew that to govern responsibly, sometimes you have to do things you don’t like.
In this kind of situation, with so much at stake, balancing budgets through cuts alone satisfies only the extremists.
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271 comments Add your comment
Disgusted
March 9th, 2010
6:59 am
The anti-tax crowd has sold its line about taxes being too high so well that no one even looks at the revenue side of the budget equation. Instead, people are contentedly watching the ruination of whatever is left of public schools and the university system.
And what do we hear from the statehouse? Well, a cigarette tax is still a tax. How stupid is it to talk about raising the cigarette tax with the goal of destroying that tax’s base? Talk about the need for education in this state . . .
Let's Not and Say we Did
March 9th, 2010
7:10 am
So, this is what Reaganomics looks like.
Road Scholar
March 9th, 2010
7:11 am
Disgusted: Agreed. When they balk at a tax increase on cigs because it might reduce usage (and resulting revenue from what may be anticipated) we see the stupidity of our legislators. Most pay a surcharge on health ins if they smoke; smoking drives up all health care costs. So where is the loss? You still have the right to kill yourself by smoking, let alone affect others with your second hand smoke!
By the way, where is the state’s job program? The repubs lambast the president for his programs and costs, but then rale about state’s rights and the need for the states to take the lead. Is this what it looks like? Nothing!
Georgia ranks from 42nd to 46th in state taxes when compared to other states. Abolish recent tax breaks for businesses for a start.
Normal
March 9th, 2010
7:13 am
A classic case of reaping what you sow… How in blue hades can you work a government without revenue? Having said that….
Good Tuesday Morning alol!
stands for decibels
March 9th, 2010
7:14 am
a Washington-based anti-tax zealot
Entirely too many human beings have this particular job title.
Normal
March 9th, 2010
7:14 am
alol=all, still on my first cup…
Laffing all the way to the bank
March 9th, 2010
7:16 am
For example, state Rep. Ron Stephens, a Savannah Republican, has proposed a dollar-a-pack increase in the tobacco tax that he estimates would raise $350 million.
Yep. That’s how taxes work.
RepubiLogic
March 9th, 2010
7:25 am
You see, if we cut spending to schools and roads and other such wasteful giveaways of tax dollars, that will free up more money to return to the entrepreneurs so they can invest it in new industries and then our tax revenues will increase and all we need to do to continue the cycle is cut taxes again.
Jenifer
March 9th, 2010
7:27 am
Raise the cancer stick tax and let the children get their education.
professional skeptic
March 9th, 2010
7:31 am
Run gub’mint like a bidness!!!
What business, besides a failing one, allows revenues to plunge?
Scooter
March 9th, 2010
7:32 am
Raising tax on smokes is discrimination. If we need more revenue, raise the sales tax and everyone helps a litttle bit.
Bud Wiser
March 9th, 2010
7:35 am
When the bloated and swelling (on our tax dollars) bureaucrats suddenly find themselves having to go on a diet,, the ones that should suffer the most are the bureaucrats themselves. Most everyone else in the civilized universe has to live on a budget….. except govt, of course. It is they who think themselves too important, too big to fail, doling out freebies to themselves, planning on those cushy retirements, suddenly looking at the stark reality.
They are reaping the whirlwind of the unchecked spending now. They will wail the usual refrain of “we have to cut teachers, firefighters and police…” when in fact most of them are underpaid, while still handing out the cash to other non-essentials – like themselves, for instance.
This is what happens when the govt sees itself as the only solution, as the only sector where job growth is possible, and of course sees the private sector as the (taxable) means to keep their rotten stinking establishment in tact.
Fat cats? Govt, look in the mirror.
Redneck Convert (R--and proud of it)
March 9th, 2010
7:39 am
Well, there’s only one thing to do to get jobs going and raise state income.
They got to cut taxes again. The rich people will use the money they save on taxes to make more jobs. And when more people start working they’ll pay more state taxes. Oh, I know what the libruls will say. They’ll talk about how it ain’t worked before. Well, the reason is because the state didn’t cut taxes enough.
The other thing they need to do down at the statehouse is cut about half the money they spend on schools. That will make room for the tax cuts. Besides, kids in this state don’t need all that education. I never made it out of the 5th grade and it never hurt me none. So let the rest of the country laugh at us for failing tests and such. Long as we got money in our wallet, they can laugh all they want.
Where’s my support on this blog? Where’s Dave R. and Swampy Dave and Jimmy Carter and the Whiner? They need to step up here and talk about how guvmint is just a cancer that needs to be starved to death and cut out. I’m sick and tired of fighting this battle alone.
Have a good day everybody.
Robert
March 9th, 2010
7:45 am
It’s some what of a catch-22. If you raise the sales tax, the people who are already struggling will struggle even more. Raising property taxes will make it even harder for those struggling to make their monthly mortgage payments. Raising corprate tax rates may drive businesses out of the state, which would only lead to more unemployment.
By not increasing taxes, government jobs and programs may be cut, which leads to a further decrease in unemployment. Tough decisions will have to be made, but we must be smart about it. We are still a somewhat attractive state to do businesss in, as we see businesses moving in to the state, but increasing taxes could make businesses think twice about Georgia so we have to weigh that balance.
If the cigarette tax raises $350 million, I say go for it. Nothing good comes from smoking anyway. If less people smoked, we would have less illness and less health care costs. In fact, anyone who is on medicaid or uses welfare money to live shouldn’t be spending money on tobaco. Tobaco isn’t a necessity last time I looked.
Outhouse GoKart
March 9th, 2010
7:47 am
The less govt the better.
The less freeloading govt workers the better.
The less govt workers to steal and pilfer the better.
Private Corps must adjust their belts, trim the fat and the Public sector should do the same. Perhaps if the public sector didnt, to begin with, hire slackers the problem may not seem to large.
To bad but in these tough economic times everyone has their own personal cross to bear.
Joel Edge
March 9th, 2010
7:48 am
Love it. Raise taxes. Tax food. Tax Beer. Tax Liquor. Don’t worry about waste or how to be more efficient. Just tax. Some of your posters seem to think that children are being driven out of schools and teachers are living in cardboard boxes. I live in a county where a big chunk of the population lives below the poverty line. Yet we have school officials making six figures. I have yet to see one step forward and say “I’ll take a hit for the school kids”. No, they just keep canvassing for more money.
jt
March 9th, 2010
7:49 am
One only has to compare California to Texas to see how high taxes work.
I believe that Norquist was wanting to strangle the redundant FEDERAL government in the bathtub, not a lean and efficient state government.
The great and Sovereign state of Georgia only has to quit sending so much money to the Federal black hole of Washington to alleviate her budget woes. She should also repudiate any debt layered on by the corruptocrats in Washington. (if we REALLY needed to borrow money, we could do so directly with China instead of having the money go through Charlie Rangel’s hands.).
All it takes is acknowledgement of our Tenth Amendment. Most of our LOCAL politicians are doing this thank God.
Outhouse GoKart
March 9th, 2010
7:55 am
“Fulton may cut 480 teacher jobs
Nearly 500 Fulton County teachers could lose their jobs as part of a budget tightening plan to shave nearly $140 million from the districts’ 2011 budget.”
The Gravy train doesnt run forever so ya best stash a lil cash for a rainy day.
Isnt Dekalb also laying off some teachers?
Robert
March 9th, 2010
8:01 am
Outhouse, I don’t think people have gotten the message about saving for a rainy day. I had to go to the Apple store at Lenox this weekend and the place was packed. I think Suze Orman’s 8 month emergency fund idea is a good one to follow in this economy.
Brad Steel
March 9th, 2010
8:01 am
drown it in the bathtub
or shoot it with one of our guns, or fly a plane into it, beat it to death at a rally, or lynch it in the public square.
Gale
March 9th, 2010
8:04 am
The tax on hospital beds is what got to me. So, if I am sick and paying the outrageous cost even when I do have insurance, Sonny wants me to pay a tax for being sick as well? Sheesh!
What say we just close all the underperforming schools for a year and see if they can get their acts together? Apparently the kids aren’t learning anyway.
Outhouse GoKart
March 9th, 2010
8:05 am
Or flush it down the toilet!!
Jimmy Carter
March 9th, 2010
8:09 am
So in addition to healthcare, do libs feel higher education is a “right”?
Also, before you start calling me names, I suggest adding a 1 cent tax on a gallon of gas. No telling how many out of staters we have visiting or passing through our great state each year (especially), so put some of the tax burden on them.
Joel Edge
March 9th, 2010
8:09 am
Gale
Amen. We keep pouring money down the rathole and see nothing in return. Every time you turn around there’s a politician with his hand elbow deep in your pocket. Using kids as a human shield, I might add.
Finn McCool
March 9th, 2010
8:09 am
Raise the gas tax. Tack on $1.50 per gallon.
See Marta blossom, traffic jams diminish, the air get a bit clearer, and middle east oil tycoons begin to squirm.
Gale
March 9th, 2010
8:10 am
I’ll chime in since I am often accused of being liberal. Higher education is neither a right nor a necessity.
Finn McCool
March 9th, 2010
8:12 am
Raise the gas tax. Tack on $1.50 per gallon.
You’ll also see fewer trucks on the road (less potholes and road damage to fix) as trucking companies move more business to our extensive rail system.
Gale
March 9th, 2010
8:12 am
Owch. $1.50 tax on gas would make me squirm, but I think I would suck it up and pay it. The real liberals would cry that it is too hard on the poor. Heck, the poor are hurting because the bus routes are being cut back. they don’t have cars.
Jimmy Carter
March 9th, 2010
8:12 am
professional skeptic
March 9th, 2010
7:31 am
GM and Chrysler, just to name two. But hey, they got bailed out.
Disgusted
March 9th, 2010
8:16 am
No telling how many out of staters we have visiting or passing through our great state each year (especially), so put some of the tax burden on them.
Don’t tax you
Don’t tax me
Tax that fellow
Behind the tree
Finn McCool
March 9th, 2010
8:16 am
We have way too many college-level facilities. Let’s roll GA State into GA Tech which will give the Tech campus a much needed boost in female population.
Huzzah
NC, for example, has a community college in almost every county. That’s way too many – 1/2 empty classes just swallowing tax dollars.
godless heathen
March 9th, 2010
8:17 am
Go by an elementary school when it is in session. Count the number of automobiles in the parking lot. None of these belong to students. Go to the school’s website and count the number of teachers. There is a whole lot of cutting that could be done before teachers are laid off.
Finn McCool
March 9th, 2010
8:17 am
Gale, the bus routes would have to be re-expanded as bus ridership begins to swell.
Outhouse GoKart
March 9th, 2010
8:18 am
Tack on “$1.50 per gallon gas tax” and see the cost of everyday goods increase accordingly and perhaps also the unemployment numbers.
Hmmm.
Gale
March 9th, 2010
8:20 am
Finn, Possibly the problem is not too many community colleges. Perhaps the problem is too many students thinking they should start out in the four year college. Community colleges offer quite similar classes for first and second year students at a lot less cost.
NowReally
March 9th, 2010
8:22 am
Wow those republicans in Georgia are doing a GREAT job! Thanks for all your hard work.
That a BOY Sonny, just show them how it’s suppose to be done. We are way better than those guys in Washington D.C. who are taking down the entire US of A, in only one year. We have them beat by at least 8 years. We’ll teach these people how to conserve and fend for themselves.
Joel Edge
March 9th, 2010
8:24 am
Finn McCool
At one time, the local area that I’m in had one tech school in a four county range. They taught all the basic job skills. Electrical, heating & air, mechanics, beautician, etc. Each county now has a “Tech College”. They teach management skills, electronics, basic courses (that should have been taught in high school) and various nursing trades. They have basically expanded the number of teaching jobs.
Finn McCool
March 9th, 2010
8:25 am
We’ll teach these people how to conserve and fend for themselves.
As bow and arrow sales go through the roof along with home canning supplies.
Anyone have any good pickle recipes?
Gale
March 9th, 2010
8:27 am
Hmm, so the number of tech schools increased, something I often say should happen. But the classes are half empty? Maybe we are still undervaluing a technical education in public school?
Outhouse GoKart
March 9th, 2010
8:30 am
Canning supplies? Spam already comes in a can…Yum!
Spam, soda crackers and water. Perhaps if prisoners were served such they might not wanna revisit the jails and prisons.
Gale
March 9th, 2010
8:33 am
Outhouse, that prison diet might lower the cost of running a prison too. No need to maintain a kitchen or kitchen staff.
Trey
March 9th, 2010
8:33 am
When people or government live beyond their means expect a visit from the repo man.One of life’s hard lessons. We either learn from them or repeat them over and over again.
I don’t own a t-shirt that points left and says I’M WITH STUPID.
If my state wants to ask *Buddy can you spare a penny* I’ll respond *YES I CAN*.
Jimmy Carter
March 9th, 2010
8:36 am
Okay, let’s see if I have this “right”:
1. healthcare is a “right”
2. jobs are a “right”
3. higher education is a “right”
4. low taxes is a “right”
5. affordable housing, food, clothing, etc are a “right”
6. cheap and abundant gasoline is a “right”
7. not having to conserve and fend for themselves is a “right”
I still have three more slots to complete a “Top 10 Rights”. Oh yeah:
8. a flat screen lcd tv is a “right”
Any others?
El Jefe
March 9th, 2010
8:38 am
When will the State cut every non-essential piece out of the budget.
Cut staff, cut assistant-deputy directors, cut pork projects, cut back to the bare essentials.
Jimmy Carter
March 9th, 2010
8:39 am
“Barcelona hit with heaviest snowfall in 25 years…”
“Gore still hot on his doomsday rhetoric… ”
Is a “global warming free earth” a right?
Gale
March 9th, 2010
8:40 am
Keep throwing out bait, Jimmy. No one seems to be biting this morning.
Jimmy Carter
March 9th, 2010
8:41 am
Freedom of Speech:
“Dan Rather: ‘Articulate’ Obama Couldn’t Even ‘Sell Watermelons’… ”
I can only imagine the left’s reaction if this had been Bill Kristol, Rush, Ann Coulter, et al.
Rightwing Troll
March 9th, 2010
8:41 am
We just need to pray for more revenue, and go fishing. It worked for the drought.
Jimmy Carter
March 9th, 2010
8:42 am
Gale
March 9th, 2010
8:40 am
Maybe everyone’s out enjoying the warm weather. After all, we ARE experiencing global warming, right?
I’ll be outside in a little over an hour enjoying 18 holes of golf. Should be a beautiful day.
Professionally Agressive
March 9th, 2010
8:42 am
How can you think Govt run enterprises are automatically worse than private run enterprises? Both are run by people. Both seek to do the most they can at the least cost.
There aren’t any freeloading private workers? Private workers don’t steal and pilfer? You think you don’t pay for that but you do, by paying more for the products and services you use. Like you pay more because of the cost of shoplifting. The cost of inefficiency is built into the whole enterprise system.
“Private Corps must adjust their belts…” is untrue. Private corps can close if the money can do better elsewhere. And they can set prices freely. Govt services are priced to be available, not to make a profit.
Imagine how much citizens would pay if they footed the fair market value of the Armed Forces, or if students paid the actual cost for a college education. How many people get more for their Soc Sec then they would have if they had bought stocks? Or get more medical care then they would have without Medicare? I think there is evidence available that those two programs pay out more then they bring in and it’s not because of increasing admin costs. We had been a country for over a hundred years and we we’re failing to take care of our elderly. We instituted those two programs as an answer to that problem and our elderly are doing better than ever. What did we make them do? We MADE them pay in. Yep. Because they surely weren’t taking care of it themselves. That’s why the problem existed. And that gets us to the crux of the issue.
Govt programs often handle necessary issues that are too long term or at too low of a profit to be viable private enterprises. Why didn’t trucking companies make interstate highways? If they had, you would have to pay to use them. And what you paid would have to cover costs, AND a profitable return for the shareholders. Govts often have to make citizens pay costs they don’t want to, when they don’t have to, because the citizen won’t be able to pay it when they have to. I don’t ever plan on going to Yellowstone National Park, but my grandchildren might LOVE it. If I don’t pay now, it might not be there for them.
And I believe that as a citizen of this country you have more than your own personal cross to bear. We’re in this together. The words say “WE the people, in order to form a more perfect UNION…”. Govt was asked to step in because we stopped caring enough about our neighbor. You bear the cross of citizenship in the greatest country in the history of the world. It says right there in the Declaration of Independence, “WE mutually pledge TO EACH OTHER our Lives, our Fortunes, and our sacred Honor”. Sorry to tell you man, but your cross just got a little bigger. But we’re all here to help you carry it.