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Wednesday, July 30, 2008

Economy slump could slash state worker raises

Raises for teachers and state employees are at risk as the slumping economy could have lawmakers reconsidering the state budget.

Drops in tax collections and a predicted budget shortfall of up to 2 billion don’t add up to the 700 million dollars in new spending approved last legislative session, said one think tank yesterday.

The Georgia Budget and Policy Institute recommends budgets cuts in non-vital areas, and if need be, putting the January 1st raises expected for state and Board of Regents employees on the chopping block.

The think tank's director Allen Essig said education programs and Medicaid and Peachcare should be kept safe. "It's really important we don't balance the budget on the backs of children and the elderly, those who can least afford it and that we spread the responsibility throughout the state."

Spreading responsibility includes a recommendation to raise cigarette taxes and rethinking special interest tax breaks.

A special session for lawmakers to retool the state budget could be on the horizon.

GPB News Team: