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April 10th, 2010
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State Revenues are up for First Time in 15 Months


After 15 months of decline, state revenues have finally inched up.

To help offset the budget shortfall, the state Senate and House have approved a controversial hospital tax proposal expected to bring in $175 million.

By AP / Special


After 15 months of decline, state revenues have finally inched up.


State money managers reported last week that net tax collections for March are up 1 percent over the same month the year before. For the fiscal year that ends June 30, tax collections are off 11.5 percent from the year before.


The state is struggling to close an expected $785 million shortfall in the fiscal year that begins July 1.


Gov. Sonny Perdue called the increase in tax collections "encouraging.''


"While we are always cautious about reading too much into a single month's revenue report ... I am hopeful we are also seeing the first buds of economic recovery,'' Perdue said in a statement released Tuesday.


Net revenue collections for March jumped $10 million to $998 million. It's the first monthly increase since November 2008.


Gross tax collections were up 7.9 percent, but much of that money was returned to taxpayers in refund checks and to local jurisdictions through sales tax distributions.


Sales tax collections were down 11.6 percent from the previous fiscal year, but corporate income tax jumped 9.8 percent. Personal income tax collections declined 2.6 percent.


Georgia's unemployment rate continues to hold steady at 10.5 percent.


The state's fiscal economist, Kenneth Heaghney, said the details are generally good news for Georgia.


 "This breaks a long string,'' he said.  "It's modest improvement. You've got to begin the journey somewhere, and this is a good first step. Now we need to see this trend continue.''


Lawmakers return to the Capitol next week and are expected to tackle the budget with seven days left in the legislative session. To avoid raising taxes, they have trimmed state spending to the bone and weighed a host of unpopular cuts that included increasing tuition at public colleges, laying off state employees and eliminating some programs.


PERDUE:  AG SHOULD SUE OVER VOTING CHECKS IN GA


Georgia's attorney general is once again in the middle of a fight over whether to sue the federal government.


Gov. Sonny Perdue has directed Thurbert Baker to sue the Obama administration to implement citizenship checks for newly-registering voters. A spokesman for Baker said he has not decided whether to pursue the lawsuit.


Secretary of State Brian Kemp said Thursday politics are behind the Justice Department's refusal to clear Georgia's system of using federal identification numbers and driver's license data to confirm whether prospective voters are U.S. citizens. He wants to take the fight to federal court.


Last month, Baker refused to mount a legal challenge to overturn a new federal health care law, leading some Republican legislators to threaten impeachment.


GEORGIA AWARDED $65.6M IN AIDS MONEY


Georgia Monday received more than $65 million in federal funds designed to help people living with HIV and AIDS.


Activists called the cash a major source of funding for people living with the disease who are in need or have no health insurance.


Jeff Cheek, a Fulton County health administrator, called last week's announcement an exciting one -- especially since so many AIDS activists feared the declining economy would reduce funding at a time when more people have lost jobs and health coverage.


Fulton County received $20.3 million, an increase of $1.7 million over last year, to be distributed among the 20-county metro area.


Georgia's cash was part of $1.8 billion in Ryan White HIV/AIDS Program grants awarded Monday across the country.

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