Georgia Stays Afloat, While Landing NCR, As Other States Sink
By Charles Jackson | 06/05/09 | 06:25 AM EDT | 0 Comments
Declining state revenues are forcing Governor Sonny Perdue to lower revenue estimates which in turn will mean that state agencies will lose a quarter - 25% - of their June funding. These cuts come on top of more than $2 billion in spending reductions for FY 2009. The state budget, that begins July 1, is set for $18,59 billion or some $60 million less than the current budget after the latest cuts. (Atlanta Journal-Constitution, May 29). The governor and Georgia lawmakers are making tough spending cut decisions but NOT raising taxes.
At least 47 states, like Georgia, faced or are facing shortfalls in their budgets for this and/or the next year or two. Thirteen states, including several of the nation’s largest, face a combined budget shortfall of at least $23 billion for fiscal 2009 (Center on Budget and Policy Priorities, May 10).
I noted last week in “Shots Across the Bow," those states with the most crushing deficits - California, Michigan, New Jersey, New York - all share the same sickness: high taxes, runaway spending, bloated states governments and powerful, entrenched public employee unions. Other states with the same illness include Illinois, Massachusetts and Pennsylvania. All the aforementioned states - except California - have Democratic governors - the CA governor is a RINO - and in many instances, Democratic-controlled legislatures as well.
In 2002, Georgia voters had the good sense to elect the state's first Republican Governor in 135 years. Republicans also captured the state senate - for the first time in 132 years - and, in 2004, the state house too.. “Georgia is fortunate to have a Republican governor and legislature that practices fiscal restraint. Next year, we must all work to keep our state in those hands,” (Shots Across the Bow, May 26).
It's no coincidence that the National Cash Register Company (NCR), announced Wednesday that the Fortune 500 company is moving it's corporate headquarters from Dayton, Ohio to Duluth, Georgia. Sure, tax incentives helped but a fiscally responsible Republican leadership here didn't hurt any either. By the way, the governor of Ohio - Ted Strickland - is a Democrat and the state house is controlled by Democrats.
Get the picture?
TAGS: Georgia Budget
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