FY 2008 600 million dollar deficit…
FY 2009 3 billion dollar deficit…
FY 2010 projected 1 billion dollar deficit…
How long will it take Georgia’s leaders to respond?…
Over the last three years, Georgia has faced a budget crisis. Some have attributed this to a spending problem. Others have called it a revenue problem. It is a leadership problem.
Allan Essig over at the GPBI says we need a better tax system. Mr. Essig is a smart man and it is true that we’ve given many senseless tax breaks that have had no benefit to the State of Georgia; raising taxes won’t make things any better. Besides no elected official will do it.
What our budget crisis shows is a failure of leadership. Look at the FY 10 budget, the only budget where the legislature has actually cut spending, and you will continue to see mismanagement of our state’s fiscal resources.
$800 million dollars in actual cuts
$428 million dollars by eliminating the HTRG (property tax increase)
$500 million in reserve funds
and the kicker
$1.4 billion from Federal State Fiscal Stabilization Fund.
Not so close to the bone as one might think. Remember GO FISH. It is still fully funded. Several other pet projects still in there too.
The most shocking thing is the amount of debt service that we have inflicted during this recent crisis. It currently stands at 6.5%. (6.5% of 18 billion dollars) Care to see what that looks like? Try just a little over 1.2 billion dollars. Now the GOParanoid are quick to point out that this is just 1% higher than the last democratic Governor’s budget and that when adjusted for inflation and population…yadda yadda yadda. Truth is that 1% of 18 billion is a hell of a lot more than 1% of 14 billion dollars, and if you ever hear someone want to adjust some figures get ready to be lied to.
Can this problem be fixed? Sure. All we need is zero-based budgeting, priority spending, and a revenue system that works. Good luck getting that with the present legislature and governor. It was encouraging to see 48 other House Members that joined Alan Powell to vote against FY 10 budget. These legislators warned of the very things that are happening now. Hopefully, someone will start listening soon.
July 8, 2009 at 9:06 am
Many people in GA are hurting badly, your premise is not correct. There is growing hunger, deep poverty, and illness. The state has made deep cuts, and while your rightly point out that this year isn’t as bad as it could have been, it’s only due to the federal stimulus funds. Those funds won’t last forever, in fact less than two years. While budgets should always be managed efficiently, special-interest breaks reward lobbyists’ causes, and the leadership has been nonexistent, the fact of the matter is GA does not have a true graduated income tax, contrary to what many think, meaning the average person pays much more highly for daily living than the wealthy. There are other ways to restore cuts and broaden a base that will not affect the average person, that this state with a growing population and failing infrastructure needs to invest in.
July 8, 2009 at 11:22 am
The answer is not more taxes. You are right that our revenue system needs an overhaul. But most of this problem occurs because of insensible public policies. A few examples: GOFISH, moving the corrections department to the old Tift college campus, etc. Unfortunately, our legislators are satisfied with letting the fox guard the chicken coop.
July 13, 2009 at 8:44 am
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