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Governor Perdue Exercises Line-Item Veto, Signs Amended FY07 Budget

Tuesday, May 8, 2007  Contact: Office of Communications 404-651-7774

 

Falling Revenue, Lack of Compromise Lead to Line-Item Veto to Conserve Resources

 

ATLANTA – Governor Sonny Perdue signed the Amended FY07 budget today.  Citing a two percent revenue decline for the month of April reported by the Georgia Department of Revenue, and an unwillingness by House leadership to craft a responsible budget compromise, the Governor line-item vetoed an addition to the HTRG that would put the needs of Georgians at risk.  Any surplus funds remaining at the end of the fiscal year will go to the state’s rainy day fund.

"We were elected to govern and that is an awesome responsibility," said Governor Sonny Perdue.  "By signing this budget and, in light of the new revenue numbers, vetoing any addition to the HTRG, we will make sure that Georgia continues to move forward, and its citizens get good government, not politics."

The signed budget ensures that PeachCare, the education mid-year adjustment for enrollment growth, and some other needs will be met.  Governor Perdue originally vetoed the entire 2007 amended budget because it would have led to furloughs for literacy teachers and prosecutors, a delay to hazardous waste cleanup and newborn health screening, cut in half the pandemic flu vaccine doses, and eliminate GBI agents combating internet predators and meth producers.  Because the House was unwilling to compromise some of those needs will not be met.

"This is about doing the right thing by the people of Georgia," said Governor Perdue.  "I sincerely hope we can work together in the future to serve them better than we did in this budget."

Earlier in the day the Department of Revenue reported that revenue was down 1.9 percent for April or $25,583,000.  In March revenue declined 2.2 percent or $26,482,000 over the previous year.  Because the budget estimate anticipated a modest 4.9 percent growth, those two months leave the state $186 million short of projections.

A copy of the revenue numbers is below:

 

GEORGIA DEPARTMENT OF REVENUE

Comparative Net Revenue Collections

(unaudited - 000's)

 

 

 

 

 

 

 

 

 

 

 For the Month Ended

 

 

 

 

 

 April 2006         (FY 2006)

 April 2007         (FY 2007)

 $ Change

% Change

Tax Revenues:

 

 

 

 

 

Income Tax - Individual

 $           632,004

 $       480,516

 $    (151,488)

-24.0%

 

Sales and Use Tax - General:

 

 

 

 

 

 

Sales and Use Tax - Gross

 $           809,644

 $       898,752

 $        89,108

11.0%

 

 

Local Sales Tax Distribution

 $         (363,237)

 $      (363,100)

 $             137

0.0%

 

 

Sales Tax Refunds/Adjustments

 $             (7,295)

 $          (5,697)

 $          1,598

21.9%

 

Net Sales and Use Tax - General

 $           439,112

 $       529,955

 $        90,843

20.7%

 

Motor Fuel Taxes:

 

 

 

 

 

 

Prepaid Motor Fuel Sales Tax

 $             37,702

 $         34,942

 $        (2,760)

-7.3%

 

 

Motor Fuel Excise Tax                                        

 $             44,885

 $         42,382

 $        (2,503)

-5.6%

 

Total Motor Fuel Taxes

 $             82,587

 $         77,324

 $        (5,263)

-6.4%

 

Income Tax - Corporate

 $           122,290

 $       165,015

 $        42,725

34.9%

 

Tobacco Taxes

 $             22,217

 $         21,145

 $        (1,072)

-4.8%

 

Alcohol Beverages Tax

 $               9,995

 $           8,843

 $        (1,152)

-11.5%

 

Estate Tax

 $                  166

 $                  4

 $           (162)

-97.6%

 

Property Tax

 $                  867

 $           1,260

 $             393

45.3%

 

Motor Vehicle - Tag, Title & Fees

 $             24,435

 $         24,567

 $             132

0.5%

Total Tax Revenues

 $        1,333,673

 $    1,308,629

 $      (25,044)

-1.9%

Other Revenues:

 

 

 

 

 

   Other Fees and Sales

 $               1,069

 $              530

 $           (539)

-50.4%

Total Taxes/Other Revenues

 $        1,334,742

 $    1,309,159

 $      (25,583)

-1.9%

 

 

 

 

 

 

 

 

 

 

Year-to-date

$ Change

% Change

 

 

GENERAL FUND

FY 2006

FY 2007

Tax Revenues:

 

 

 

 

 

Income Tax - Individual

 $        6,290,435

 $    6,555,107

 $      264,672

4.2%

 

Sales and Use Tax - General:

 

 

 

 

 

 

Sales and Use Tax - Gross

 $        8,321,202

 $    8,875,908

 $      554,706

6.7%

 

 

Local Sales Tax Distribution

 $      (3,521,833)

 $   (3,867,879)

 $    (346,046)

-9.8%

 

 

Sales Tax Refunds/Adjustments

 $           (82,353)

 $        (76,395)

 $          5,958

7.2%

 

Net Sales and Use Tax - General

 $        4,717,016

 $    4,931,634

 $      214,618

4.5%

 

Motor Fuel Taxes:

 

 

 

 

 

 

Prepaid Motor Fuel SalesTax

 $           306,168

 $       400,208

 $        94,040

30.7%

 

 

Motor Fuel Excise Tax

 $           359,445

 $       411,219

 $        51,774

14.4%

 

     Total Motor Fuel Taxes

 $           665,613

 $       811,427

 $      145,814

21.9%

 

Income Tax - Corporate

 $           707,959

 $       774,570

 $        66,611

9.4%

 

Tobacco Taxes

 $           190,689

 $       190,743

 $               54

0.0%

 

Alcohol Beverages Tax

 $           124,897

 $       126,256

 $          1,359

1.1%

 

Estate Tax

 $             10,356

 $           1,166

 $        (9,190)

-88.7%

 

Property Tax

 $             68,579

 $         73,392

 $          4,813

7.0%

 

Motor Vehicle - Tag, Title & Fees

 $           249,386

 $       253,559

 $          4,173

1.7%

Total Tax Revenues

 $      13,024,930

 $  13,717,854

 $      692,924

5.3%

Other Revenues:

 

 

 

 

 

   Other Fees and Sales

 $             96,689

 $         61,000

 $      (35,689)

-36.9%

Total Taxes/Other Revenues

 $      13,121,619

 $  13,778,854

 $      657,235

5.0%