Georgia is not alone in experiencing on-going revenue shortfalls. The state`s September tax revenues were down 16% compared to 2008. The continuing revenue shortfall`s have raised state`s fiscal year 2010 deficit to an estimated $1.5 billion.
Things are even worse at the Federal level. The Congressional Budget Offices`s October Budget Review reported that individual income taxes were down by $230 billion or 20%, while corporate tax receipts fell by about $166 billion or 54%.
California`s already difficult budget situation was made worse as the state collected $1.1 billion less than it had forecast.
In New York income tax revenue fell 36% from the same period in 2008, `frustrating` the state`s attempt to close a $2.1 billion budget deficit.
Most states thought that they were being conservative with the revenue forecasts for the 2010 fiscal year, but collections are below those targets. Since Georgia, along with every other state but Vermont, is required by law to balance its budget, the Governor and Legislature may face some difficult choices in the next nine months.
Coosa Valley News