Report: GA needs to save NOW for the future

Georgia needs to save for a rainy day. That's the conclusion of a new report by the Georgia Budget and Policy Institute (URL: http://gbpi.org/pubs/gabudget/20070619.pdf) that recommends the state increase its revenue reserve fund.

States save for the future by building up their revenue shortfall reserve. At its peak in 2001, Georgia's revenue shortfall fund was at one point six billion dollars. And, while the fund's current balance is about eight hundred million dollars, it's still not enough, says Alan Essig, head of the group that authored the report.

During the most recent legislative session, Governor Perdue wrangled with legislators over a proposed tax refund to homeowners. Essig described the debate as political posturing. The bottom line says Essig, Georgia should build its rainy day fund before lawmakers even consider tax rebates.