It's getting MUCH WORSE MUCH FASTER!!!!!!!
The following was taken from Mish's Blog and rearranged to clarify the issue(factual correctness is maintained):
Georgia State tax collections...were off 1.1 percent for the entire fiscal year [HOWEVER] tax collections were down 9.4 percent in June, the final month of fiscal 2008.
With the economy continuing to sputter, state government is going to have to spend $600 million in reserves just to pay its bills for the recently completed fiscal year.
Gov. Sonny Perdue said because of the tax collection decline, the state will have to use $600 million of its $1.5 billion reserve fund to balance last year's budget.
In anticipation of the slow economy, the governor already had ordered state agencies to come up with plans to cut 3.5 percent of their budgets this year.
In the final three months of fiscal 2008, overall tax collections were down 7.3 percent over the same period in fiscal 2007, according to the Georgia Department of Revenue. Corporate income taxes plummeted 26.7 percent, and sales tax collections fell 8.6 over the same months in fiscal 2007.
GEORGIA IS IN SERIOUS TROUBLE. TAX RECEIPTS ARE IMPLODING AND THE TREND IS GETTING MORE NEGATIVE BY THE MONTH!!!!!!!!!!
With a deficit of $600 million last year and almost 10% decline in June, the goofy governor wants to cut the budget by only 3.5%? 3.5%??????
The trend is getting much worse, receipts could easily be down by over 20% as the year progresses which would turn a $600 million dollar deficit into over $10 Billion dollar deficit before the year is out!!!!!!!!!(remember, the $600 million dollar deficit was based on only a 1.1% fiscal year decline....imagine the deficit for a 10-15% decline in revenues....what about a 20-25% decline in tax receipts-corporate receipts were down over 25% in the final quarter of the fiscal year)
IMAGINE WHAT WILL HAPPEN TO CORPORTE TAXES WHEN NOL CARRYBACKS KICK IN!!!!!!
This is the kind of analysis the analysts and government officials FAIL to give you.....yet.