Governor lobs threat over 2009 budget


The Atlanta Journal-Constitution
Published on: 03/26/08

Gov. Sonny Perdue is threatening to lower his projection for tax revenue for the second time in a month, a move that would force lawmakers to make further budget cuts.

He also is threatening to veto the budget the House approved for next year because he said it is out of balance with his projections.

The latest spat between the governor and lawmakers comes as the General Assembly tries to finish work on a $21.2 billion budget for fiscal 2009, which begins July 1.

In a letter Tuesday to Lt. Gov. Casey Cagle and House Speaker Glenn Richardson, Perdue says he might lower projections of tax collections because his call for spending cuts was ignored in the midyear budget passed last week.

Perdue signed changes in that spending plan, which runs through June 30, into law Friday. He criticized then the lack of spending cuts, and now he wants them made in the fiscal 2009 budget.

With the economy struggling, Perdue announced March 10 he would reduce his estimate of tax revenue the state would take in by $65 million in fiscal 2008 and by $245 million in 2009. He recommended a series of cuts.

The General Assembly did not adjust the midyear budget to reflect the governor's lower revenue estimate. Then, the House passed a fiscal 2009 budget that ignored some of Perdue's recommendations.

The House also spent $17 million more than the governor's revenue estimate.

"I do not acquiesce to the revenue estimate as proposed [by the House] nor will I sign an appropriations act that purposes an upward revision of my latest revenue estimate," Perdue wrote the legislative leaders.

House leaders say most of the extra $17 million is Georgia Ports Authority revenue that would be used to pay off bonds for the agency. Lawmakers have included similar Ports Authority money in the budget for several years.

House Appropriations Chairman Ben Harbin (R-Evans) said Perdue should not blame lawmakers. He said the state has reserves to cover a shortfall.

"When you have $1.5 billion in reserves, that's what it is there for," Harbin said. "Just because he couldn't get [the revenue projections] right the first time doesn't mean he should be blaming us.

"If he wants more cuts, we'll deal with it, but maybe he needs to find himself some new economists."

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