Georgia Shows Strong Growth in July

August 10th, 2012

Georgia’s revenue numbers showed strong growth in the first month of the fiscal year.

State revenue collections in July increased more than 7 percent compared to the same time last year. Total revenues were $1.3 billion, an increase of $90 million compared to July 2011.

The big gain came on the back of increased individual and corporate income tax collections.

Despite the strong growth, Alan Essig of the Georgia Budget & Policy Institute says Georgians shouldn’t get ahead of themselves.

“One month is not a trend. The six months prior to this growth was relatively weak, it wasn’t all that great – so I think it’ll take until we get three months worth of numbers in, we’ll have a better idea of where we are this fiscal year.”

Last month, the governor called on all state agencies except the Department of Education to cut 3 percent from their 2013 budgets.

Essig says it reflects a cautious approach to try and build back up reserves while leaving the governor options if the weak growth numbers return.

“Our reserves are at dangerously low levels. Our credit rating depends on growing those reserves so we need revenue growth of close to 8 percent to both fund the budget and grow the reserves at some decent level.”

Last year’s revenue growth was in the 4 percent range. The governor’s revenue growth estimate for the coming year is a little more than 5 percent.