Lax taxes put state in fiscal hole again
ATLANTA - Georgia legislators voted Thursday to take a two-week recess as they scramble to fill what is shaping up to be another huge hole in the state's already slimmed-down budget.
With tax collections continuing to slide, legislators will take a break from passing bills in the House and the Senate. Instead, budget writers will huddle to address another $1 billion-plus budget shortfall.
Legislators said they were caught off guard by yet another dismal revenue report last month. There had been hopes that January would break a slump in tax collections. Instead, tax collections dipped 8.7 percent, the 14th straight month revenue have declined.
Some lawmakers grumbled that the forecast for the fiscal year that begins July 1 could be even bleaker than originally thought.
"I think $1 billion may be on the low side," state Senate Majority Leader Chip Rogers said Thursday of the budget hole.
Gov. Sonny Perdue has proposed an $18.2 billion budget for the coming fiscal year. He projected 4 percent revenue growth, which some now say may be far too optimistic.
The governor balanced the budget by floating a pair of unpopular proposals: a tax on hospitals and health plans and siphoning money from the state's environmental loan fund.
Republican legislators
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