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What do November revenues mean?
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While the overall gain in state revenues was 3.6 percent, which meets the fiscal year 2014 budgetary requirement, elements of the month’s report are perplexing.


Overall, total revenues came in at $1.3 billion for the month with a gain over November of 2012 of only $48 million. And had the title/tag fee not come in with a gain of $50.6 million, the month overall would have been negative. This is mainly because individual income taxes, normally half of revenue receipts, were negative for the month at $694.2 million, $7.2 million or 1 percent under November 2012.


Inside this category, the main driver was the increase of some $22 million in refunds and low gains in withholding, at 0.7 percent.


Sales taxes for the month were net -2.7 percent on revenues of $423 million. Title/tag fees, however, were up some $50.6 million and when combined with net sales tax numbers gives an “effective” sales tax collection increase of $39 million, or 8.5 percent positive.


Motor fuel taxes continued a positive trend showing an increase of $5.7 million, or 6.8 percent overall with both categories, excise and sales tax, showing increases at 3.7 percent and 10.9 percent, respectively.


Corporate taxes were up $10.4 million but positive by only $934,000 over 2012 since there was a negative number this month last year.


Tobacco taxes were down 10.2 percent, but alcoholic beverages taxes were up 1.5 percent.


I guess the question is, does the weakening of individual income taxes the past two months indicate some kind of trend or just maybe a reflection of the first two months of a quarter that will be rectified with a strong December?


Year-to-date numbers reflect dependence on title/tag fee
After five months of the FY14 budget year, total revenues are up 5.4 percent on $7.3 billion in total revenues. But of the gain of $378.0 million so far, three-fourths of the gain or $305.8 million, are a result of the increase in the title/tag fee which replaced sales taxes on automobile sales this past March.


The other bright spot is corporate taxes, which show an increase of $73.8 million so far, an increase of 44.3 percent.


Individual income taxes are up $112.9 million, an increase of only 3.1 percent on total revenues of $3.8 billion. Net sales taxes are down $140.8 million or 6.3 percent. When combined with the increase in title/tag fees, the “effective” sales tax category shows a net increase of $165 million or 6.98 percent.


YTD motor fuel taxes are positive, up $31.8 million or 7.9 percent altogether, with excise taxes at 8.2 percent and sales taxes at 7.6 percent.


Corporate income taxes continue a positive trend with an increase of some $73.8 million, an increase of 44.3 percent.


Tobacco taxes are up 6.9 percent and alcoholic beverages 1.9 percent.


Explanations hard to fathom
So at 5.4 percent, in the words and wisdom of Alfred E. Neuman, “What, Me Worry?”, isn’t the level of state revenues more than meeting the 3.5 percent need for the FY14 budget and isn’t a growth rate of 5.4 percent good enough to fund what the state needs? Well, on one hand yes, but should we worry that our top two categories are sluggish and well below the overall rate?


The matter of most concern is the apparent slowing of the growth of individual income taxes, which reflect small business withholding and quarterly filings and are a good indicator of economic activity as well as individual income growth. There are a few possible reasons:


1. Federal sequestration is finally affecting communities, employers and contractors around defense bases.
2. There is a flip side in that we experienced a bump in revenues in FY13 from the shifting of income and sale of assets from calendar year 2013 back to 2012 and revenue we gained last spring being lost now.
3. As more seniors turn 65, is the $65,000 per spouse income tax exclusion a growing cut to the income tax category? From 2010 to 2012, 109,000 additional seniors became eligible. Even more sobering is the prediction that Georgia’s 65-plus of the population will grow from 10 percent of population in FY14 to 12.2 percent in FY15.
4. Economic activity is slowing?


And in the sales tax category, is it so muddied by the switch to tag/title fee, that it is harder to spot the loss due to the ag and energy sales tax exemptions?


I may be reached at
234 State Capitol, Atlanta, GA 30334
(404) 656-5038 (phone)
(404) 657-7094 (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.