The state finished the last fiscal year with net revenue increases in every month.
Georgia's net revenue rose $87.5 million in June, or 6.2 percent, as compared to net revenues in June 2010. That includes collections jumps in the important categories of individual income tax and sales tax.
State Senator Jack Hill calls this “very encouraging” for the state’s budget. The Republican chair of the Senate Appropriations Committee says extra money above the governor’s budget projections needs to go to refilling Georgia’s rainy day fund.
“For the short term I’d be much more inclined to continue to build the reserve and then if there’s new funds let’s look at new funds in the (FY)’13 budget.”
Hill estimates about $300 million could go into the reserve, which has nearly run dry. Only a few years ago it was brimming with more than a billion and a half dollars.
Governor Nathan Deal on the revenue report: “We saw numbers that were above trend for 12 consecutive months in FY 2011,” Deal said. “The upward movement in Georgia’s revenue numbers is a clear indication that our state can and will advance as long as we continue the practice of maintaining a fiscally conservative state budget.”
Inside the numbers: Individual Income Tax collections for June 2011 reported an increase of $55 million or 7.5 percent, up from $728 million in June 2010 to $783 million in June 2011.
Sales and Use Tax reported an increase in net collections of $45 million or 11.4 percent, up from $394 million in June 2010 to $439 million in June 2011.