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Are revenues a spike or a trend?
Hill Jack
Sen. Jack Hill

December state revenues came in with a big gain for the month, $158 million, or a 9 percent growth rate on revenues totaling $1.9 billion. This makes December 2014 the highest revenue December in at least five years.

Individual income tax collections were the big producers, coming in with a 13.4 percent gain for the month, up $128.4 million on revenues of $1.08 billion. Within that category, withholding payments were up $91.5 million, or 10.7 percent, and estimated income tax payments were up $56.5 million or 65 percent. Refunds in that category were only up $16.2 million. Withholding and estimated payments are good indicators of payroll activity and small business profits.

Net sales taxes to the state totaled $431 million, with net state collections up $16.6 million or a solid 4 percent. These are November sales tax collections. Christmas collections will be reported in January’s return. Local governments’ distribution was up 6.8 percent for the month.
Even with falling prices, motor fuel collections were up for the month, 1.5 percent on sales taxes on fuel and up 6.6 percent on excise taxes by the gallon.

Corporate income taxes finished the three-month period with a gain of $33.8 million and showed a gain year-to-date as will be examined below. Tobacco and alcoholic beverage taxes were both down for the month, at -8 percent and -2.3 percent, respectively.
For the first time, I believe, title/tag fees were negative, showing an $18 million decline after an adjustment of -$6.2 million for separate maintaining of tax revenue for IRP AAVT/trailers.

Half-year totals very positive at 5.7 percent
With half the fiscal year in the books, the six-month’s totals, including the big month in December, look fantastic. Overall, the state has taken in $9.6 billion, some $516.8 million over 2014, a growth rate of 5.7 percent.

Individual income tax collections lead the way, totaling $5.1 billion, producing $338.6 million of the increase YTD, a 7.1 percent increase.

Sales taxes are showing very positive returns, clipping along at a 5.9 percent increase on $2.66 billion in revenues producing a $148.4 million increase. Local governments’ distribution is showing a 6.9 percent increase YTD.

Motor fuel tax collections continue to struggle against last year, falling 4.3 percent in sales taxes on fuel and flat at -0.3 percent on excise taxes. Corporate taxes returned to positive territory, showing for the six months, a $20.3 million increase or a 5.2 percent gain. Tobacco taxes are negative at -3.2 percent and positive for alcoholic beverages at a 3.5 percent increase.

Tag/title fees are positive for the year so far, gaining $28.99 million or 5.6 percent over 2014.

Totals over budget YTD
The positive increases in state revenues are showing a huge gain of some $516.8 million for the year. The 12-month trailing average increase in revenues has increased to 5.5 percent. When compared to the amount budgeted for fiscal year 2015, the state has collected approximately $228.7 million over the amount anticipated in the FY15 budget so far. So the state is doing very well and has much to be proud of at this juncture.

Previous columns can be viewed at www.senatorjackhill.com.

I may be reached at
234 State Capitol, Atlanta, GA 30334
(404) 656-5038 (phone)
(404) 657-7092 (fax)
E-mail at Jack.Hill@senate.ga.gov
Or call toll-free at
1-800-367-3334 day or night
Reidsville office: (912) 557-3811

In Effingham County, Progress Starts With a Plan
Guest Editorial by Susan Kraut, President/CEO of Effingham County Chamber of Commerce
Susan Kraut column
A sold-out crowd of more than 150 business and community leaders gathered at Effingham’s New Ebenezer Retreat Center Sept. 24 for the Chamber of Commerce’s annual State of the County Luncheon, hearing updates on economic growth, education, and infrastructure across Effingham County. (Submitted photo)

At last Wednesday’s sold-out State of the County luncheon, more than 150 business and community leaders heard a message that resonated throughout the program: We have a plan, and we’re sticking to it.

Effingham County City Manager Tim Callanan opened his remarks with that thought. It was simple, but powerful. In an era when news feeds churn with controversy and change, it served as a reminder that behind the scenes, steady planning is happening – and those plans are beginning to bear fruit.

Businesses and residents often express frustration about roads, zoning, parks, schools or economic development, feeling that growth is outpacing action. The truth, as Callanan underscored, is that many of those actions are already underway, rooted in master plans that cover everything from transportation and stormwater to parks, communications and public safety.

The challenge is that plans only matter if people know they exist. Too often, businesses and citizens forget these plans are in place, don’t know where to find them or don’t realize how to weigh in at the right moments. When that happens, the community loses the chance to shape its own future and to express the value of those plans – why they matter and why they’re worth supporting.

Planning delivers progress

Last week’s luncheon highlighted how “plans” translate into progress. Mayor Kevin Exley shared Rincon’s ranking as one of Georgia’s safest cities and the city’s launch of the Citizen Central app – a small but meaningful step toward accessible local government. Springfield’s new city manager, Lauren Eargle, outlined a capital improvement plan that includes sidewalks, drainage and playgrounds, along with the less glamorous but vital work of a $35 million wastewater plant upgrade. Guyton’s city manager, Bill Lindsey, discussed contracting with planning consultants, winning grants for sidewalks, and reinvesting in Bazemore Park and downtown revitalization. These aren’t random acts; they’re evidence of intentional planning.

The school district provided another example when Superintendent Yancy Ford noted that Effingham now serves nearly 14,500 students speaking 33 languages. That diversity is an asset – but it also requires careful, proactive investment to maintain the high standards families expect. His most powerful point concerned ESPLOST, the 1-cent Education Special Purpose Local Option Sales Tax. Thanks to community support over the years, ESPLOST has built classrooms, purchased buses, enhanced safety measures, provided Chromebooks to all students, added security cameras and access-control systems, created inclusive playgrounds and athletic facilities open to the community, supported hands-on learning spaces like Honey Ridge, and established the College & Career Academy – a facility credited by Ford as helping lift the district’s graduation rate above 90% and expanding career pathways for a rapidly diversifying student body. And it has done so without incurring long-term debt.

Why ESPLOST matters

Among these examples of planning, none is clearer than ESPLOST — a long-term, voter-approved blueprint for funding education, renewed every five years to stay ahead of growth. The November ballot will again include the ESPLOST renewal, giving voters the opportunity to continue this proven approach to funding school facilities, technology, safety, transportation, inclusive playgrounds and community-accessible athletic fields. Renewing ESPLOST does not create a new tax; it simply extends the existing 1-cent sales tax, allowing residents, visitors and businesses to contribute to improvements that benefit every student. Without it, many of the projects parents and community members count on – such as new buses, safer schools, modern classrooms, career pathways and accessible playgrounds – would stall or require long-term debt.

Renewing ESPLOST is about more than bricks and mortar. It is not a reactionary measure but part of an intentional, ongoing plan to manage growth and maintain education – reinforcing the theme that plans become progress. As the district’s population becomes increasingly diverse and enrollment continues to rise, sustained ESPLOST funding is crucial to scaling programs, expanding facilities and maintaining the high graduation rates and opportunities that families expect. It is about protecting Effingham County’s tradition of educational excellence, maintaining property values and ensuring the workforce being prepared in our schools is ready to meet the needs of local employers. It is an investment in students, families and the future of our communities.

A call to the community

Effingham County is growing. Growth brings challenges, but it also brings opportunities. As the luncheon demonstrated, leaders at every level are working to guide that growth thoughtfully. The next step belongs to business owners, parents and neighbors – to lean in, stay informed and participate.

When hearing about a master plan, a referendum or a public meeting, don’t assume it is someone else’s job. Look up the plan, attend the forum, ask questions and cast a vote. That is how plans become progress – and how a yes vote on ESPLOST reaffirms and continues the community’s long-term plan for educational excellence, reinvesting in Effingham County’s future.