[deMolay]

New State Budgets bankrupt as fast as they can pass them? The Great Downward Spiral is well underway. Obamavilles coming right up. http://money.cnn.com/2009/07/23/news/ec ... /index.htm

[Daniel_Plainview]

Only three weeks into the new fiscal year, gaps are already opening up. And the shortfalls are only expected to grow.

So if I understand correctly: it takes state legislators 3 to 4 weeks of painful deliberations to arrive at a budget which has a lifespan of only 3 weeks ... at which time 4 more weeks of budget negotiations will be required, with more painful cuts, to finalize yet another budget, which will then need to be revisited in a few weeks ... Rinse & repeat ...

I don't see a problem.

[frankthetank]

It will be nice when we are all government employees... We won't have to worry about these pesky budgets.

[IgnoranceIsBliss]

Here is an article on the subject of Georiga's budget. We just made more big cuts last week, but they say more could be needed by January. Teachers are getting 3 furlough days. Education is getting another 3% cut. Other state employees are getting 5 furlough days.

http://www.ajc.com/news/more-budget-cuts-in-100204.html?cxntlid=homepage_tab_newstab

Before Gov. Sonny Perdue announced plans last week to cut $900 million from the budget and furlough teachers and state employees, he broke the news to local school superintendents.

But after that conference call, some of them were left with the impression that the new hits won’t be enough to solve the deep fiscal problems the state faces.

“It sounds to me like this isn’t over,” said Cherokee County Superintendent Frank Petruzielo. “I am telling my [school] board ... to probably get ready for phase two by January.”

The reductions Perdue announced last week will bring Georgia to a budget level nearly equal to that of 2005.

But, as Perdue pointed out, the state’s population has grown by 1 million since that time.

“I think this should be enough,”said Kenneth Heaghney, the governor’s chief economic adviser and a Georgia State University economist. “But I’ve been wrong before.”

He said the projection is based on the state’s economy being “near a bottom,” with growth beginning by the end of the year. “Obviously that’s not assured,” he added.

Senate Appropriations Chairman Jack Hill (R-Reidsville) is less optimistic. He wrote recently that the state could “easily face a $1.5 billion shortfall” this year,” if tax collections continue to show double-digit declines.

“There really aren’t any guides we can look at that say we have reached the bottom,” Hill said.

The Georgia Budget and Policy Institute, an Atlanta budget think tank, has recommended the General Assembly consider raising cigarette taxes, hire more auditors, temporarily impose a 1 tax percent surcharge on family income of more than $400,000 and/or reinstate an estate tax. The last two recommendations, institute officials say, would affect less than 1 percent of Georgians.

But 2010 is an election year and no incumbent wants to run for office after voting for a tax hike. The General Assembly has consistently voted to cut, not raise taxes.

“There is one thing everyone is united on,” said House Majority Leader Jerry Keen (R-St. Simons Island). “We don’t raise taxes on citizens and businesses during a recession. Nothing would hinder a recovery more than raising taxes.”

So the budget will continue to tank into 2010 and we will see more cuts. Word is that telephone call from Governor Perdue to school superintendents said there could be 8 more furlough days early 2010. (that would be a total of 10 unpaid days for teachers, meaning all of our planning/ work days) I ran the numbers and for my family, we would nows make $140 LESS a month than we did last year under the worst case scenrio.

Honestly, I see many more teacher layoffs come Spring 2010 when things are still not improving.