The Department of Juvenile Justice will present new budget cuts at a board meeting Thursday morning. Governor Perdue has ordered every state agency to come up with scenarios detailing 4%, 6% and 8% cuts.
On the eve of the big reveal, the Georgia Budget and Policy Institute says the state tax structure dates back to the Great Depression and that’s why we’re in trouble. Here’s an excerpt from Advancing Georgia’s 1930s Tax System to the Modern Day:
“Georgia will spend more than 80 percent of the FY 2011 state budget on education, healthcare, and public safety; therefore, the size of the state budget is overwhelmingly driven by these three policy areas Georgia’s overall population, as well as the specific populations that state government serves, such as school children and prisoners, will continue to increase dramatically. In addition to meeting the needs of sheer increased numbers of Georgians, the state has urgent existing needs, such as bringing our education, mental health, and transportation systems, among others, up to national standard”
The report recommends changes that include:
- Taxing more personal services, while lowering the sales tax
- Updating cigarette and motor fuel excise tax rates
- Modernizing personal income tax brackets, rates, and standard deductions
- Closing corporate tax loopholes