Monday, November 16, 2009

FY2010 is just the beginning

Insider Advantage has a doosie of story out this morning culled from recent interviews with state economic thinkers.
Despite the national news that General Motors may be bundling up for that snowball in hell and returning to the land of profitability, state and local governments can keep their shorts on.
"If you think things are bad now for cash-strapped state and local governments, just hang on. It’s going to get worse."
But don't worry, there's something for everyone.
Communities already angered by the fact that their recent property tax revaluations weren't invalidated by '09 legislation to cap rising tax assessments will have more to protest about as it is predicted that the state's next sales ratio study, which determines whether counties are charging too much or too little in property taxes as determined by recent property sales figures, will finally reflect the reality homeowners--and more appropriately homes sellers--are seeing on the ground.
“As property sells (and a true, market-place value is determined) and the state auditor picks that up, we anticipate a rather significant drop in the digest, which means you either have to increase taxes or you have to cut additional programs,” said Jerry Griffin, veteran executive director of the Association County Commissioners of Georgia.

The story also mentions the growing movement to have sales tax revenues accounted for locally and not by the State Revenue Department.
Oh, and dig this mid-session missive:
But what about all of those tax exemptions the state has offered various entities over the years? Georgia State University once estimated that there are about $10 billion a year worth of exemptions on the books.
[Jerry] Keen,[R-St. Simons], the House Republican leader, said lawmakers have been looking at some of those over the past few years, particularly those with sunsets upon them. The problem is, he said, only a handful are due to expire in 2010 and, therefore, require legislative renewal, and they are worth only a few million dollars collectively.

With all this going on, why would anyone be vying for a seat under the Gold Dome this year--and next year for that matter.

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