Governor Perdue Announces February Revenue Figures

Revenue Estimates Revised for Amended FY08 and FY09 Budgets

ATLANTA – Governor Sonny Perdue announced today that net revenue collections for the month of February 2008 (FY08) totaled $965,846,000 compared to $961,225,000 for February 2007 (FY07), an increase of $4,621,000 or 0.5 percent. 

The percentage increase year-to-date for FY08 compared to FY07 is 1.9 percent.

Given the slowing rate of growth of the state’s revenue collections, Governor Perdue reduced the revenue estimates for both Amended Fiscal Year 2008 (AFY08) and Fiscal Year 2009 (FY09). 

“We are taking pro-active steps to make sure that Georgia’s state government remains fiscally responsible,” said Governor Sonny Perdue.  “We will not repeat the mistakes of the past and wait too long to tighten our belts when the economy signals that it may be softening.  With a healthy reserve fund and sound management practices, Georgia will continue to serve our citizens effectively despite the slowdown we are experiencing.”

Governor Perdue met with the leadership of both the House and Senate to discuss the revenue figures and his revised budget recommendations this morning. 

For FY08, Governor Perdue is reducing the revenue estimate by $65 million from his original proposal.   The original AFY08 recommendation was $332.6 million. In order to achieve a balanced budget, Governor Perdue identified an equivalent amount of spending to eliminate from his AFY08 recommendation.   The reductions recommended include $40 million originally allocated for one-time equipment and technology infrastructure upgrades and $25 million in funding for school buses.

“All of these programs are worthy of funding and provide good value to the citizens, but we have to make difficult decisions on how to spend our limited resources,” said Governor Sonny Perdue.   “I have proposed reducing funding across state agencies, even reducing programs that I have championed, because everyone and every program must share our collective burden.” 

For FY09, Governor Perdue reduced the revenue estimate by $245 million. The original FY09 recommendation was $21.425 billion.  The equivalent reduction in spending recommended by Governor Perdue would be derived from programs across state agencies.  Among the spending reductions Governor Perdue recommended are:

• Eliminating $16.9 million for funding the Governor’s Health Insurance Partnership.
• Reducing $47.2 million in Major Repairs and Renovations (MRR) for the University System of Georgia and the Department of Technical and Adult Education.   These projects would instead be funded through a bond package.
• Reducing the proposed raise for state employees, teachers and faculty at the Board of Regents and the Department of Technical and Adult Education from 2.5 percent to 2 percent.  This would save $46.1 million.
• Reducing $44.1 million in additional funds into the Other Post Employee Benefits (OPEB) fund.
• Reducing $5.5 million in the Governor’s Very Important Parent (VIP) Recruiter Program from the original $14 million proposal.

In addition to the recommended reductions, Governor Perdue has asked agency heads to maximize savings by avoiding unnecessary travel, restricting hiring for non-critical positions and any other reductions identified by agencies.   The Governor is also encouraging each agency head to enact strict approval processes for new expenditures, and has asked the Office of Planning & Budget to closely monitor budgets.  These limitations on discretionary spending are intended to mitigate the potential impact of reductions in revenue collections for Fiscal Year 2008.

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