Thursday, September 09, 2010

Georgia Revenue Increase Tainted By Cuts

By Walter C. Jones
Morris News Service
The Augusta Chronicle
Business Section
Spetember 9, 2010

ATLANTA --- News on Wednesday that the state's tax collections rose 12.7 percent in August didn't slow discussions at various agencies about deep budget cuts.

Tax collection in the first two months of the fiscal year are 8.6 percent ahead of last year.

Though state officials are pleased to see growth in collections for the fourth month in a row after 17 months of declines, they are still planning for a tight budget year. That's because they know $1.8 billion in federal stimulus money included in this year's budget won't be available in the future, and tax collections aren't likely to grow enough to fill that gap, said Rep. Ben Harbin, an Evans Republican who is chairman of the House Appropriations Committee.

"It is good news, but we still are going to have to cut our budget," he said.

Gov. Sonny Perdue has ordered all state agencies except the Department of Education to brace for a 4 percent cut in this year's budget and prepare for as much as a 10 percent cut next year.

To read further in this article please tap on link: http://chronicle.augusta.com/news/business/2010-09-08/georgia-revenue-increase-tainted-cuts?v=1283984260

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