Georgia Revenues Post a Gain

ATLANTA (AP) - Georgia’s economy showed signs of life on Wednesday as tax collections posted their strongest showing in 20 months, notching a 12.7 percent increase for the month of August.

It marked the third straight month revenues have risen after 17 consecutive months of decline. August’s collections were the first in the last three months to crack the double digits. Revenues inched up 3.8 percent in June and 4.7 percent in July.

The data unveiled on Wednedsday by Gov. Sonny Perdue showed that tax collections in August rose $133 million above the same month the year before.

For August, individual income taxes’considered by many the most important economic indicator’jumped just over 24 percent. Sales tax collections rose 4.8 percent while corporate income tax collections tumbled 158 percent, with refunds representing more money than was taken in.

Additionally, motor fuel revenue’used for road and transportation funding’rose 22.2 percent in August. Tobacco taxes increased 12.4 percent.

For the fiscal year that began July 1, revenues are up 8.6 percent so far.

The state budget for fiscal year 2011, which began July 1 relies on a 4 percent growth in tax collections.

Georgia has been mired in economic bad news for the last several years, forcing deep cuts to the state budget and the furloughing of teachers and state employees.

In July, Perdue ordered an additional 4 percent spending cut for most state agencies, excluding education, to make up for the expected loss of $375 million in Medicaid stimulus money from Washington. Congress has since approved a spending bill that would funnel some $220 million in extra Medicaid dollars to Georgia.

Even so, Perdue spokesman Bert Brantley said Wednesday that the state does not plan to reverse course on the cuts despite the recent good news on the economic front.