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Revenues flat as refunds flow out
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March revenues came in at a positive 1.1 percent on a gain of $12.6 million for the month.


The level of refunds going out could have had some effect on the individual income tax category which showed an increase of only $300,000 or 0.1 percent. Individual taxes only collected net $422,610 for the month. Individual withholding payments were up for March by $37.1 million or 4.5 percent. Individual refunds were up $55.4 million or 11.8 percent.


Net state sales taxes only showed a negative 0.2 percent over March 2012, bringing in $427,402 for the month. Combined with the negative month motor fuel taxes showed, it was dismal month, not considering the level of refunds that went out. Motor fuel excise taxes were down 15.7 percent and sales taxes -17.1 percent, for an overall decrease of 16.5 percent for the month. Motor fuel taxes’ decreases for the month were tied to the higher than normal tax collections for March 2012.


Corporate income tax collections continued to look better, showing a 4.4 percent increase. Corporate income payments were up $4.5 million, or 6.6 percent. Corporate refunds were down $13.5 million. Tobacco and alcohol taxes were negative at -10.9 percent and -4.6 percent, respectively.

Total revenues for March were $1.17 billion.


Third FY quarter holding up for now
Everything considered, the nine-month total for state revenues is still looking pretty positive, with an overall 5.2 percent gain, or $607.1 million, on $12.3 billion in revenues. Year to date, individual income taxes stand at a gain of 5.9 percent, or $352.8 million. Net state sales taxes show a 2.6 percent increase or a gain of $104.0 million. Motor fuel taxes are still suffering from the effects of high prices this quarter, showing a negative 3.9 percent, or $29.3 million, under the same nine months of 2012.


Corporate income taxes have been the only true bright spot in revenues this year, showing a gain of $135.5 million or 37.7 percent YTD. Tobacco taxes are negative for the year so far at -2.4 percent, but alcoholic beverages are up 1.3 percent YTD.


So the 5.2 percent meets revenue projections but April, May and June will “tell the tale.” So, if you’re looking for “big picture” news, this quarter is the 11th consecutive positive revenue growth quarter.


Legislative review - week 2
Juvenile Justice reform
The General Assembly passed a juvenile justice reform bill, HB 242, sponsored by the Special Council on Criminal Justice Reform, which developed the reform of the adult criminal justice reform last session.  The bill focuses on evidence-based practices as well as reserving beds in detention facilities for the most dangerous offenders. The council incorporated reforms that have been proven to reduce recidivism amongst juvenile offenders in other states to insure a more effective juvenile justice system for Georgia. The governor proposed and the Legislature agreed to appropriate $5 million for Juvenile Justice Incentive Funding grants which will be awarded to local jurisdictions for local programs.


Update to tax credit for donations to student scholarship organizations
HB 283 is a comprehensive education bill that expands the distribution and reporting requirements that apply to tax credits for donations to student scholarship organizations (SSOs). The bill creates more accountability and transparency to target some who have tried to exploit the system.


HB 283 also increases the tax credit from $50 million to $58 million, and removes the provision that allows the credit to fluctuate with the consumer price index. The tax credit for donations to SSOs helps children who lack financial flexibility in school choice choose what learning environment is best for them.


The bill includes changes to QBE funding, charter system funding, and accountability recommended by the Education Committee. It also establishes an ongoing cap on new extra revenues earned by systems declaring “charter system” status.


If you would like additional information regarding a specific piece of legislation, you may access the Georgia General Assembly Web site at http://www.legis.ga.gov/.


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.