Both chambers' plans, Perdue said, would force state to make 'draconian cuts' to programs
The Atlanta Journal-Constitution
Published on: 03/19/08
Gov. Sonny Perdue hammered both legislative chambers Wednesday for pushing tax cuts that he predicted would force the state to make "draconian cuts" to government programs, including education.
The House last week passed legislation to eliminate the car tag tax and the state's .25 mill property tax on homes. That would reduce taxes, and state revenue, about $760 million a year.
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Lt. Gov. Casey Cagle and Senate leaders Tuesday proposed a 10 percent reduction in the state's income tax rate over five years. That would eventually reduce taxes, and state revenue, about $1.2 billion a year.
Perdue said from a policy standpoint, he preferred the Senate plan. But he said both would create a huge hole in the state budget.
"We're setting up an organic imbalance going forward that will make this state out of balance," Perdue said. "And we've got to have some draconian cuts coming on things we don't want to cut, like education, health care, transportation. This is not where I want to go.
"It's time to stop playing politics with the financial future of this state."
Perdue said lawmakers from both chambers seem to be playing an election-year game of trying to one-up each other.
He said 80 percent of the state's $21 billion budget next year will go for education, health care and paying the state's debt on money it's borrowed for construction projects.
With the economy and tax collections slowing, Perdue has already called on lawmakers to cut $245 million from next year's budget. To make ends meet, he expects the state will also have to dip into reserves this year and possibly next year.
"To talk about tax cuts as if we're a federal government that can run a deficit befuddles me," he said "It is politics, it's trying to trump one another. They are here trying to figure out how to get elected and I am sitting here trying to figure out how we balance this budget.
"It's sad to watch and I hope cooler heads prevail."



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