Fresh Loaf

The Nelson A. Rockefeller Institute of Government recently looked at states’ revenue streams and discovered, whoa, hey, this appears to be the worst year on record.

State tax collections during the first quarter 2009 showed the sharpest decline on record, dropping 11.7 percent overall, according to an Institute report released July 17… Early figures for the second quarter reveal continued worsening of fiscal conditions for states.

According to the report (PDF), Georgia leads the pack when it comes to declines in sales-tax revenue.

Forty of 45 states with broad-based sales taxes had declines, and eleven states had double-digit declines. Iowa had the largest increase at 18.5 percent which is attributable to legislated tax increases. Georgia led the states with the largest decline at 16.3 percent followed by Nevada at 16.0 percent.

The institute predicts more budget shortfalls and financial hardships for states. Last Tuesday, Gov. Sonny Perdue told agency heads to trim their budgets once more to help fill a $900 million shortfall. Some teachers face three furlough days.

Not the best way to start the upcoming school year, but you work with what you’ve got.

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U.S. Sen. Johnny Isakson, R-Ga., visited the Atlanta Press Club today and spoke about rail, water woes and the nation’s standstill economy. (He said it might take five years for the nation to recover.) Isakson also said the closing of the Hapeville Ford Plant might have hurt the region’s chances for the Atlanta-Lovejoy rail line.

Maria Saporta and the AJC’s Kristi Swartz wrote great summaries of his speech. Grayson Daughters also produced a video of Isakson’s talk.

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The AP’s Russ Bynum writes an excellent piece that helps explain why Georgia has found itself at the tippity top of a terrible list — the state with the highest number of bank failures:

Experts say it’s a combination of an antiquated state law that favored a plethora of smaller community banks over multi-branch giants; a population explosion in metro Atlanta that fueled massive suburban real estate development and a crush of new banks formed to cash in on the Atlanta boom shortly before the market tanked.

…

Georgia’s diversity of small banks was an asset when the economy was strong, with consumers benefiting from competitive rates and broader sources of credit, said James Verbrugge, a professor emeritus of finance at the University of Georgia’s Terry College of Business. It became a liability when the bottom fell out of the housing market and smaller banks had less capital to weather the crisis.

The excerpts don’t do the article justice. Give it a read for your daily dose of edumacation.

(Hat tip to Travis Fain)

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Whereas, things worth remembering need names. Children, pets, generations, boats. If we didn’t name them, then we might forget ‘em.

Whereas, when this current recession — or “current economic crisis” — ends, we better have some way of distinguishing it from the other occasional economic dips this country’s seen.

Whereas, I, Thomas Wheatley, who as an employee of Creative Loafing enjoy a wide variety of useless trinkets in my vicinity, have the desire to award the commenter who provides the best name for the “current economic crisis” with a scribbled-on Sany Group hat snatched from an “economic development” announcement. Or a National Rife Association bumper sticker currently plastered on my cubicle wall. (Or maybe tickets to something? I don’t know, I can’t promise anything. I’ll have to check with our marketing department.)

Therefore, let it be resolved that I am sick and tired of referring to the “current economic crisis” as such, and would like to know what to call this damn catastrophe in which the country finds itself.

Please leave your suggestions in the comments. You can also e-mail me. Be sure to let me know how I can get back in touch with you.

(Many more silly boat photos at Media-Post)

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Labor Commissioner Michael Thurmond

In this week’s feature, “The big hurt,” I write about Georgia’s rising unemployment rate and how it’s impacting metro Atlantans. To better understand the current economic landscape, I visited the state Department of Labor’s recent job fair at the Georgia World Congress Center. The event, which organizers estimate attracted more than 19,000 job seekers, was considered the largest in the state’s history. To view Joeff Davis’ photographs of the event, go here.

While reporting on the convention center floor, I spotted Commissioner Michael Thurmond monitoring the event from a hospitality suite. Thurmond, who’s brutally honest but optimistic about the situation, agreed to chat. After the jump, a transcript of my interview with the commissioner. In it, he talks about how the state can prepare for a recovered economy, the impact of globalization, and the job-loss story that hit him the hardest.

(File photo by Joeff Davis)

(more…)

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Polling organization Rasmussen Reports says:

The majority of voters in Georgia (53%) say Republican Governor Sonny Perdue is not doing enough to help them through the economic recession, though he still earns fairly positive reviews.

The latest Rasmussen Reports telephone survey in the state found that one in four voters (25%) say the governor is doing enough for Georgians, while another 22% remain undecided.

…

Still, more than half of voters (57%) approve of the way Perdue is handling his job as governor, while 39% disapprove.

The menz like duh govnuh. The ladies say “meh.” Also:

The early frontrunners among Republicans for the 2010 governor race in Georgia are Casey Cagle and John Oxendine. Cagle is currently serving as lieutenant governor, and Oxendine is the state insurance commissioner. Both men are favored by 14% of Republicans.

Among Democrats, former Governor Roy Barnes leads the pack of 2010 contenders with 28% support. Twenty-two percent (22%) of Democrats would consider voting for Atlanta Mayor Shirley Franklin for governor.

Check out the full rundown of responses. Among them: Barack Obama will do a better job as president than George W. Bush and native son Jimmy Carter.

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Black Friday, who loves ya, baby?

From Gov. Sonny Perdue’s office:

ATLANTA – Governor Sonny Perdue announced today that net revenue collections for the month of November 2008 (FY09) totaled $1,419,543,000 compared to $1,399,595,000 for November 2007 (FY08), an increase of $19,948,000 or 1.4 percent.

The percentage decrease year-to-date for FY09 compared to FY08 is -1.3 percent.

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This time last year, Georgia’s unemployment rate was 4.5 percent, just below the national unemployment rate of 4.7 percent.

The latest stats put Georgia’s unemployment rate at 7 percent, well-ahead of the national unemployment rate of 6.5 percent.

For as long as I can remember, Georgia has been a job-magnet. This year, it’s a job-repellent. So far in 2008, Georgia has lost more jobs than every state except Michigan.

Dr. Rajeev Dhawan of Georgia State University’s Economic Forecast Center expects unemployment in Georgia to keep rising until 2010.

Something to keep in mind: official state and national unemployment stats only tally as unemployed people who are actively seeking full-time work.

Among the unemployed who are not counted in official stats: people who have given up looking for full-time work, freelance and self-employed people who can’t find any paying work, and skilled professional who take low-skill, low-wage jobs because they cannot find work in their chosen field.

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From the governor’s office (emphasis added):

ATLANTA – Governor Sonny Perdue announced today that net revenue collections for the month of September 2008 (FY09) totaled $1,632,334,000 compared to $1,561,749,000 for September 2007 (FY08), an increase of $70,585,000 or 4.5 percent.

The percentage decrease year-to-date for FY09 compared to FY08 is 2.6 percent.

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