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Thursday, August 10, 2006
Perdue takes credit for budget turnaround
The Atlanta Journal-Constitution
REALITY CHECK An occasional look at the credibility of campaign claims.
“He set priorities, cut waste, focused on creating jobs. Now we have a $580 million surplus.� Gov. Sonny Perdue’s campaign says this television ad is running statewide.
Sponsor: Republican Party of Georgia
The ad: The ad begins with the scene of a closed diner with cobwebs on the counter. An announcer says, “Three years ago, Georgia had the worst state budget crisis since the Great Depression. We were losing jobs. Our deficit was $640 million.� Then the scene cuts to the governor’s massive black SUV speeding down the road, and the announcer adds, “And we elected Sonny governor.� Next come scenes of a Perdue handshake, a cell phone being dialed, and the announcer says, “He set priorities, cut waste, focused on creating jobs. Now we have a $580 million surplus. That’s what Sonny did. Why would we ever go back?�
The reality: When Perdue was elected, he faced a $640 million shortfall. His predecessor, Roy Barnes, had already ordered spending cuts, but more were needed to balance the budget. Perdue came into office with $700 million in reserves. In terms of revenue collections, it was the slowest period since the Great Depression by some estimates. However, Gov. Zell Miller faced a tougher situation when he took office in 1991, starting out with no reserves and facing a shortfall that forced a special session to cut $400 million in spending and eliminate 1,000 state jobs. Perdue set priorities to escape the budget crisis, including raising cigarette taxes and cutting school funding by more than $1 billion over the past four years. While job growth, which he has promoted, has been sketchy at times, the state ended fiscal 2006 on June 30 with a $580 million surplus. Perdue, early in his term, spent down most of the reserves Barnes left, but he has since rebuilt them to nearly the level they were in 2002. Perdue has benefited mightily from the improved economic picture in general since taking office. The two biggest sources of state revenue, sales and individual income taxes - which are tied to the economy - have increased from $11.3 billion in fiscal 2002, the last full year before Perdue took office, to $13.7 billion in fiscal 2006.
Watch the ad: www.votesonny.com
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