Group Wants Special Session If State Revenues Don't Improve

(7/29/08) The Georgia Budget and Policy Institute, a progressive policy group, says it wants the governor to call a special session in September if state revenues don’t improve to consider raising the cigarette tax, reducing or eliminating the homeowner’s tax relief grant and eliminating tax breaks passed during the 2007 and 2008 sessions of the Legislature.

The governor had to dip into reserves to the tune of $600-plus million to make the books balance when the fiscal year ended on June 30. Because of the shortfall, state revenues now must increase by $1.5 billion to meet the budget for the fiscal year that just began, the organization said in a report it issued Tuesday.

While the governor has asked state agencies to offer 3.5 percent in cuts for the year, that could cripple key state services and still not do the job, says the group’s executive director, Alan Essig.

Here is a link to the report.