GBPI Pleased with Governor’s Veto of Tax Cuts
From the Georgia Budget and Policy Institute, regarding HB 481, which was previously covered on APN and APB:
“Governor Perdue chose the fiscally conservative path and vetoed House Bill 481, preventing changes to Georgia’s tax code from eroding state revenues by $1.5 billion over the next three years, beginning July 1, and costing $438 million each year thereafter,” said Alan Essig, GBPI’s executive director.
“The governor’s economists know their numbers. Governor Perdue saw the worse-than-expected revenue figures for April and chose not to increase Georgia’s worsening deficit,” said Essig. Revenue collections through the first 10 months of the current fiscal year (2009) are down by 9.5 percent; however, the budget is based on a revenue decline of 6.8 percent.
“Governor Perdue has been a good financial steward of the state. He has reduced waste and now has risen above special interest pressure that ignores vital services the state must provide,” Essig said.
The governor and General Assembly already cut state agency budgets by $1.6 billion when it closed a $3.3 billion deficit for FY 2010. Now, due to worse than expected revenues, Georgia could face an additional budget shortfall of several hundred million dollars for FY 2010 (beginning July 1), which would require further cuts.