In the interest of fairness

I have criticized President Obama for basing his budget projections on rosy economic scenarios, so it’s only fair to look at whether Gov. Sonny Perdue is doing the same thing here in Georgia.

That’s the charge leveled on Peach Pundit, and at least some of the budget figures questioned there do smell a little funny.

The governor’s 2011 budget (which covers July 1, 2010 to June 30, 2011) assumes a 4.5 percent increase in individual income tax revenue and 4.9 percent growth in funds from the general sales tax. Those two taxes account for about two-thirds of the state’s total revenues, and those two increases represent an addition of more than half a billion dollars.

Granted, we’re talking about rising from a fairly low trough — individual income tax revenues have fallen by more than 18 percent and sales tax receipts by almost 15 percent from their peaks earlier this decade. They are forecast to remain lower than they were even two years ago.

But 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 — it doesn’t seem prudent for the state to count on any kind of rise in the year to come. Not with unemployment, which typically doesn’t ease until a recovery is well under way, continuing to linger above 10 percent.

Budgeting based on level revenues in fiscal 2011 would make an already difficult process even more politically perilous. You know what would be worse? Interrupting this year’s electoral campaigns for a special legislative session to deal with more shortfalls.

Better to be cautious and get a pleasant surprise than to scramble to fill a hole later on.

42 comments Add your comment

Jefferson

February 15th, 2010
11:44 am

F-105 Thunderchief

February 15th, 2010
12:31 pm

Amen, brother. I’d rather see a worst-case-scenario budget passed.

LA

February 15th, 2010
12:54 pm

Kyle, did the AJC hire someone named Muttunhead? Just wondering because Cynthia Tucker keeps talking about him/her on her blog.

Anyhoo, this is pretty funny and it has liberals in a tizzy.

Wisconsin Billboard Calls for Obama’s Ouster

http://www.nbcchicago.com/news/local-beat/Wisconsin-Billboard-Calls-for-Obamas-Ouster-84376727.html

LA

February 15th, 2010
12:59 pm

Another democrat jumps ship.

It really does suck to be a democrat these days.

Evan Bayh to retire

Sen. Evan Bayh, a leading moderate Democrat from Indiana who was once thought to be a rising national political star, won’t run for a third term, a decision which imperils his party’s hold on the seat.

Read more: http://www.politico.com/news/stories/0210/32971.html#ixzz0fd4FmbSo

scrappy

February 15th, 2010
1:21 pm

hum, odd. A conservation columnist takes fair shot at GOP in GA for the budget & there are only 4 posts, with 2 bashing democrats.
Not much to say when the shoe is on the other foot?

Hillbilly Deluxe

February 15th, 2010
1:23 pm

You can look at Gov. Sonny’s personal finances and see that he ain’t exactly the best in the world with numbers.

BW

February 15th, 2010
1:33 pm

The Dems are cowards especially Evan Bayh….if they get trounced at the polls in November then so be it but at least stand up for your “principles” and fight to the end. Both political parties are full of cowards who are playing a never ending game of owning the majority and then doing nothing to help the average American thus losing the majority…no one in Washington both has the answers and the courage to stick to their “answers”…it’s sad but destined to happen since no politician is going to call for any hard sacrifices either in entitlements, taxes, or defense spending, the main spending on the budget.

Jefferson

February 15th, 2010
1:34 pm

Budget leadership from George Purdue flows from Washington, DC. Without the bailout money where would the state’s finances be?

retiredds

February 15th, 2010
1:41 pm

The legislative leaders of the State of GA are required to balance the state’s budget. Only a few ways to do that: cut spending to current income levels, cut spending some raise taxes some. Anyone who occupies the office of Governor has no choice but to balance the budget. I am for the state constitution doing that because it takes the treasury out of the hands of the politicians and forces them to do what they don’t really want to do, be responsible fiscal managers of the taxpayers money.

If there was a Constitutional Amendment to balance the federal budget we would not have the current an inherited fiscal debacle facing the US, potential bankruptcy. You see, if you give a politician a dollar he/she will spend 10 so “the folks back home” will be happy. The only way to control it is to take it, the ability to spend willy nilly, away (sort of like taking candy away from the baby).

So, Kyle, with your influence how about starting a grass roots movement to encourage and pass a Constitutional Amendment to balance the federal budget. (by the way I know all the arguments that have been used to rationalize not doing that so if you reply don’t give me rationalization #3001)

Jess

February 15th, 2010
1:43 pm

Jefferson,

Georgia got “bailout” money? I think you mean stimulus money which was earmarked for certain projects, and not just added to the general fund.

retiredds

February 15th, 2010
1:44 pm

in my remarks above paragraph 2 line 2 should read “current and inherited”

LA

February 15th, 2010
1:47 pm

New headline from Cynthia Tucker’s blog:

God help the dumb do-gooders in Haiti

She’s banned several people for name calling yet…….she name called.

Jefferson

February 15th, 2010
2:04 pm

Jess, that’s the ticket. Thanks.

Peter

February 15th, 2010
2:07 pm

Good work Kyle…….

Kyle Wingfield

February 15th, 2010
2:08 pm

retiredds: I’m all for fiscal responsibility, but mandating a balanced federal budget would probably prove overly restrictive in some key instances (WW2, for instance). The exceptions and guidelines that would be included to give the mandate some flexibility would probably end up undermining it in most cases.

I’d prefer that voters actually punish Congress for running unnecessary (and unnecessarily large) deficits. Which, imo, is just as likely to come to pass as a balanced-budget Constitutional amendment.

Jefferson

February 15th, 2010
2:20 pm

My idea of punishing Congress is sending them no more tax dollars. (and it won’t be long)

retiredds

February 15th, 2010
2:50 pm

no argument from me on the punishment part, but as you say not much of a chance of that happening. So, does that mean the US of A declares bankruptcy so it can start all over, just like individuals and corporations? I hope not, but without an aggregate will of the people to turn this around, nothing happens because just like the health care debate (debacle) no one can come to a consesus on anything anymore. I think that has been called “a stalemate”. Unfortunately in this case everyone loses.

midtownguy

February 15th, 2010
3:06 pm

And think about what is going to happen to the state budget if the “stimulus” dollars dry up before the recovery. Governor Perdue reminds me of George Wallace in the 60’s, criticizing the federal government with every breath while holding his hand out behind his back for every federal dollar he can get his hands on.

He seems the perfect example of what my conservative friends refer to as a RINO. He talks fiscal conservatism but doesn’t walk it.

Williebkind

February 15th, 2010
3:16 pm

What is sad is that the common citizen can only hope and pray their leaders will be prudent. I see many citizens hurting and very few rising. It seems the promise is slipping away! Our children are joining the military as a way out. What does that say about our leaders? I want the truth and I want leader to be honest. Have I lost a dream far to gone.

LA

February 15th, 2010
3:16 pm

“Governor Perdue reminds me of George Wallace in the 60’s”

Uh….except Perdue ain’t out hosing down blacks on the streets with fire hoses.

Just sayin.

midtownguy

February 15th, 2010
3:38 pm

All southern governors were racist in the 60’s. I believe I recall something about a Georgia governor and ax handles?

What set Wallace apart was how he ranted against the “pointy headed liberals in Washington” while taking every federal dollar he could get his hands on, and that reminds me of Perdue’s criticism of the Obama administration while taking all the money from them he can get.

The Tar and Feathers Party

February 15th, 2010
3:51 pm

Kyle said “I’d prefer that voters actually punish Congress for running unnecessary (and unnecessarily large) deficits.” Precisely, let’s git to the tarrin’ and featherin’ part and skip all this namby pamby talk.

jconservative

February 15th, 2010
3:53 pm

The people of Georgia have the guy in office they wanted there to run things. If he messes up, tough. But he is your guy. Same for Washington, DC. The people in charge there are the people the American people voted to send there.

But I do have a question. If you feel things are messed up with government, Federal, State & local, why do you keep voting for the same people over & over?

The Tar and Feathers Party

February 15th, 2010
4:01 pm

Yes, vote for the Tar and Feathers party, we will put the goose step back in our military.

midtownguy

February 15th, 2010
4:02 pm

I agree with jconservative. But people believe the “other” Senators and the “other” Representatives are the problem. All politics is local. If the incumbents keep bringing home the bacon in the form of special local projects and earmarks that give them jobs they will continue to vote them in office and continue to believe the problem is the “others.” Add to that the “single issue voters” on any hot topic of your choice (abortion, gay marriage, etc.) and relative competence of the incumbent goes out the window

LA

February 15th, 2010
4:04 pm

“All southern governors were racist in the 60’s.”

They were all democrats.

Jefferson

February 15th, 2010
4:07 pm

Democrats are pretty sorry, but Republicans are worse…

The Tar and Feathers Party

February 15th, 2010
4:11 pm

Lets Tar and Feather em’ all, Repuke and Dummycrat alike.

LA

February 15th, 2010
4:13 pm

“Democrats are pretty sorry, but Republicans are worse…”

Yep, that must explain why democrats are jumping ship and leaving their own party.

YES WE CAN….WAIT…….No…..hey, where is everyone going?

Jefferson

February 15th, 2010
4:13 pm

I’m in…deal

Jefferson

February 15th, 2010
4:15 pm

No difference, Republicans have proven they can’t do anything, why should the Democrats?

The Tar and Feathers Party

February 15th, 2010
4:16 pm

YES WE CAN – Tar and Feather them all.

The Tar and Feathers Party

February 15th, 2010
4:17 pm

The schools have failed. Here I am, with a Masters degree, and I have no idea how to incite a lynch mob. Any suggestions?

midtownguy

February 15th, 2010
4:29 pm

LA, the Southern Governors of the 60’s were “DIxiecrats” who broke with the National Democratic Party. They are today’s arch-conservative Southern Republicans via the race baiting “Southern Strategy.”

But as to the current situation, I voted for Obama (but not in the Primary) but will not do so again. He has been a disaster as far as I am concerned. Moderate Democrats will have to disassociate themselves from him to have any hope of re-election. He has handed the House and Senate back to the Republicans just like President Bush handed the White House to the Democrats. Incompetence abounds.

I look forward to the day when I can vote “for” someone instead of “against” someone else.

midtownguy

February 15th, 2010
4:34 pm

I can help you with that Tar and Feathers Party: Just wear a Florida sweatshirt to a UGA keg party. That will incite a lynch mob.

The Tar and Feathers Party

February 15th, 2010
4:38 pm

Thanks midtown, but how do we git all the politicians into Florida sweatshirts?

The Tar and Feathers Party

February 15th, 2010
4:41 pm

midtown guy, please tell me you did not support hillary in the primary? She hates men, all men, she and her ilk have been engaged in a 30 years war against men. You may think she will spare gay men, but you are just fooling yourself. She’ll cut em, believe me, she will cut em off all of us if she is given the power of DICTATORSHIP that she craves. Repent now, while there is still time.

LA

February 15th, 2010
5:12 pm

“the Southern Governors of the 60’s were “DIxiecrats” who broke with the National Democratic Party. They are today’s arch-conservative Southern Republicans via the race baiting “Southern Strategy.””

So you’re telling me that southern republicans like Bobby Jindal, who happens to be Indian-American is a race baiting southerner?

LA

February 15th, 2010
5:16 pm

“He has handed the House and Senate back to the Republicans just like President Bush handed the White House to the Democrats. Incompetence abounds.”

You’re wrong. Bush had a GOP majority longer than Obama will have a democrat majority. The GOP had the majority ever since 1994 and lost it in 2006. Obama and the democrats are just really stupid people. The GOP’s problem is having too many moderates who act like democrats.

Obama is the best thing, since Jimmy Carter, for conservatives. He’s forcing the GOP to go conservative and the tea party movement has been a HUGE factor in getting conservatives in.

Out with the old and in with the new.

LA

February 15th, 2010
5:17 pm

“Just wear a Florida sweatshirt to a UGA keg party. That will incite a lynch mob.”

Yeah, UGAY fans are losers.

LA

February 15th, 2010
5:20 pm

Well. It’s official. Obama’s team is really really stupid.

Obama administration scientist on snowstorms: ‘Weather is not climate’

http://thehill.com/blogs/e2-wire/677-e2-wire/81083-lubchenco-on-the-snowstorms-weather-is-not-climate

Churchill's MOM

February 15th, 2010
5:46 pm

Georgia’s legislature needs to do what our next Governor Handel did, CUT SPENDING AND LAY OFF employees to balance the budget using realistic budget income. Will that happen probably not because most of our legislature is made up of RINOs not conservatives.