While lawmakers are more than offsetting the $6.5 billion influx, the extra cut of $516 million shouldn’t be so large as to endanger the state’s AAA bond rating. In fact, because the 5.5 percent rate has to be “triggered” by further legislative action, there won’t be a cut at all if the projections about increased revenues don’t prove correct. And if they prove to have been understated, both the precedent and the mechanism will be in place for further cuts to the top rate.
The balance here was to improve Georgia’s incentives to work, save and invest via the tax code while maintaining the funding needed to address a rapidly growing population -- and the increased student enrollment, traffic congestion, etc. that brings.
This was a fine line to walk, but it appears they’ve done it.