Statement: Alan Essig, Executive Director, on October Revenue Decline and Worsening State Budget Deficit

The dismal October revenue numbers released today underscore the depth of Georgia's fiscal crisis. For these first four months of the new fiscal year, revenues are down by 15.1 percent.

The governor's preliminary analysis of the FY 2010 revenue projection estimates a 6.2 percent revenue decline, a decrease from the nearly 4.0 percent revenue decline the governor announced in July.

Although there has been no public announcement, this analysis is contained within the Official Statement for the State of Georgia General Obligation Bond Sale dated October 26, 2009.

The revised projection means Georgia likely is facing a $1.26 billion budget shortfall. This is an additional $320 million budget shortfall on top of the $940 million budget shortfall previously announced.

In response to the projections, the governor's budget office has a contingency plan that requires state agencies to cut their budgets again, this time by $320 million dollars (an additional three percent). This comes on top of the five percent budget cuts announced in July ($800 million dollars of cuts), and the double-digit percentage cuts ($500 million) already implemented when the FY 2010 budget was passed last April.

Also problematic are more than $2 billion in non-recurring revenues in the base of the FY 2010 budget. Unless lawmakers take a more balanced approach to solving this fiscal crisis, an approach that includes revenue options, Georgia will be facing further cuts to vital public services in FY 2011 and 2012, including those to healthcare, public safety, and education.

It is time for Governor Perdue and the General Assembly to bring a balanced approach and transparency to this fiscal crisis. The General Assembly should hold public hearings and learn about the state's revenue outlook from leading economists in the state.

The General Assembly also should hear from state agency staff and citizens about the impact of the budget cuts already in place and the potential impact of planned cuts.

In order for Georgia to prosper, lawmakers must not rely soley on cuts to public services. Georgia can not cut its way to prosperity. The governor and General Assembly must look to raise revenues, as a majority of states have done, including a majority of our conservative southern neighbors. They must take a balanced, informed, and thoughtful approach to solve the state fiscal crisis, and this must include strategic revenue options.

Alan Essig
The Georgia Budget & Policy Institute

-----
www.fayettefrontpage.com
Fayette Front Page
www.georgiafrontpage.com
Georgia Front Page
www.artsacrossgeorgia.com
Arts Across Georgia

Statement from Governor Sonny Perdue Concerning President Bush’s Lifting of Executive Order on Offshore Drilling

Governor Sonny Perdue issued the following statement today concerning President Bush’s Lifting of Executive Order on offshore drilling:

“With record gas prices straining the budgets of many Georgia families, we cannot afford to take any option off the table. It is imperative that we take a balanced approach of conserving, developing alternative energy technologies and increasing the supply of domestically-produced resources. I want to thank President Bush for his action today and I urge Congress to hear the voices of the American people who are asking for relief from our dependence on foreign oil.”

Secretary of State Handel Applauds Governor Perdue for Signing HB 1104

Georgia Secretary of State Karen Handel and Representative Katie Dempsey joined Governor Sonny Perdue as he signed House Bill 1104, a bill to strengthen Georgia’s Charitable Solicitations Act.

“This legislation provides common sense changes that will help better protect Georgia citizens from fraud, ease administrative burdens on charities, and does more to stop dishonest solicitors from operating in our state,” Secretary Handel said.

House Bill 1104 will increase the transparency of financial arrangements between a charity and its paid solicitor and require paid solicitors to inform the person being solicited that the contract disclosing the financial arrangements between the paid solicitor and the charity is available from the Georgia Secretary of State.

The legislation ensures that the Secretary of State has jurisdiction over charitable solicitors acting on behalf of a charity located in Georgia which is soliciting contributions from outside the state, over solicitation originating in Georgia, and over out-of-state charities soliciting Georgia citizens.

HB 1104 was introduced by Representative Katie Dempsey and passed the House chamber 148-1. Senator Judson Hill of Marietta carried the bill in the Senate. The bill passed the Senate by a vote of 49-0.

Karen Handel was sworn in as Secretary of State in January 2007. The Secretary of State's office offers important services to our citizens and our business community. Among the office’s wide-ranging responsibilities, the Secretary of State is charged with conducting efficient and secure elections, the registration of corporations, and the regulation of securities and professional license holders. The office also oversees the Georgia Archives and the Capitol Museum.