The state projected a budget hole of $1 billion. Actual: $210 million.
"Remember when the national press corps portrayed Georgia Governor Brian Kemp as a villain for reopening the state’s economy too soon? Well, more than a few states would like to be in the Peach State’s pandemic and fiscal position now.
Start with the state’s economy, which had a relatively low jobless rate of 7.6% in July. Construction was never shut down, and schools in much of the state are opening for classroom instruction. The state expected a budget shortfall of $1 billion for the year but the actual deficit was $210 million. Mr. Kemp says sales tax revenue is rebounding and the state hasn’t exhausted its $700 million reserve fund.
Mr. Kemp says he’d like Congress to allow him more flexibility to spend the money left from the first state rescue. But he doesn’t need another federal bailout. Contrast that with Speaker Nancy Pelosi’s demand that President Trump agree to $1 trillion for states and localities. A well-run state like Georgia doesn’t need it, while Illinois has asked for tens of billions more to pay its runaway bills to public unions.
Georgia saw a surge in coronavirus infections in June and July, which the Governor attributes to people “letting down their guard” during holiday weekends, graduation parties and the like. But new cases have fallen 30% since July 26, hospitalizations by 23.4%, and test positivity to 9% from 13.1%.
Mr. Kemp says people have responded to warnings to wear masks and socially distance even as they “learn to live with” the virus. Another infection surge is possible, as it is everywhere, but Georgia is in a much stronger position now because it recognized early that shutting down an economy is unnecessary and destructive."
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.