Georgia Budget Gap Passes $850 Million As Revenues Again Lag

With a month left in the current budget year, Georgia’s shortfall widened to more than $850 million in May.

Figures released Monday showed less of a decrease for May collections than in April, when revenues fell by more than $1 billion because the income tax deadline was postponed to July. But revenue still fell sharply, showing a state economy where people and companies are earning less. People bought less stuff in May than a year ago, including less gasoline and fewer cars, and stayed in fewer hotel rooms.

Overall revenue collections were down 10% for the month. The biggest single source of state revenue, sales tax, was down 13%. Personal income taxes dipped only 3%, reflecting in part that more than 700,000 Georgians are getting income from unemployment. But corporate income taxes were down 41%, motor fuel taxes were down 26%, taxes on new vehicle registrations were down 58% and hotel taxes were down 64%.