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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Amount, in percentage, total taxes and other revenues decreased in March 2009 compared to March 2008: 14.5

Amount, in percentage, individual income tax revenue declined in March 2009 compared to March 2008: 18.8

Amount, in percentage, sales tax revenue declined in March 2009 compared to March 2008: 5.9

Amount, in percentage, gas tax revenue declined in March 2009 compared to March 2008: 28.6

Amount, in percentage, alcoholic beverage tax revenue increased as of March 2009: 8

Estimated amount of money, in sales tax, Sunday beer and wine sales could generate: $3.3 million

Number of states other than Georgia that ban alcohol sales in stores on Sunday: 2

Number of times in the last three years state lawmakers have tried to pass a bill allowing Sunday sales: 3

Percentage of Georgians in a 2008 poll who support Sunday sales: 65

Sources: ajc.com, Georgia Department of Revenue, AJC/Mason Dixon poll

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Projected MARTA budget shortfall for the current fiscal year, in millions of dollars: 60

MARTA operating expenses for FY09, in millions of dollars: 396

Percentage increase in total MARTA ridership from August 2007 to August 2008: 11.5

Number of years since rail service began in 1979 that MARTA has seen a higher ridership increase: 2

Total annual operating funding MARTA receives from state of Georgia, in dollars: 0

Number of other major metropolitan areas whose public transit agency receives no state funding: 0

Total annual operating funding MARTA receives from the federal government, in millions of dollars: 42

Potential liability faced by MARTA due to lease-back deal with now-collapsed insurer AIG, in millions of dollars: 391

Maximum percentage of revenue from local 1-cent sales tax that MARTA is allowed to spend on system operations: 50

Percentage of MARTA operating costs covered by sales tax revenue: 52

Estimated percentage by which U.S. consumer spending will drop in 2009: 1

Number of years since the U.S. had a bigger slump in consumer spending: 67

Sources: MARTA, ajc.com, Bloomberg

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