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Local cash registers are not reflecting much confidence that the economic recovery is close at hand.
It was hoped the June check from the Georgia Department of Revenue would signal an increase in retail sales to spur on the economy. However, Local Option Sales Tax (LOST) revenues were down by 23.82 percent from June 2008.
Receipts from the state are generally two months behind actual collections so the fact that June’s check didn’t show a boost in retail sales is worrisome. Projections for LOST and SPLOST counted on increased collections.
"We had a disappointing month for LOST and Special Purpose Local Option Sales Tax (SPLOST)," said County Chief Financial Officer Beth Horacek. "We were anticipating at least $400,000 for LOST and felt like Barrow Crossing would add an additional $100,000 to this number. However, the actual amount was $356,883."
Horacek said her office contacted the Georgia Department of Revenue and was advised there would be only one deposit this month. In the previous month, the county had received two separate checks as the state was transitioning to a new electronic system.
"The Department of Revenue indicated that we might see a slight increase in next month’s numbers since they are still transitioning to the new system," said Horacek.
Commission Chairman Danny Yearwood said the receipts were not good news. "That’s just another loss," said Yearwood.
Barrow County has undertaken a number of cost-cutting measures — reducing departmental budgets, leaving vacant positions unfilled, cutting salaries with another round of pay reductions set to be felt on the next paychecks issued, layoffs and retirements.
Yearwood said the county is now spending less than 60 percent of its budget on salaries; that is down from 74 percent after the initial adjustments.
According to Horacek, the Fiscal Year 2009 savings of the layoffs of 18 employees and retirement of three totals $183,096. For Fiscal Year 2010, the savings will be $912,670.
Those savings likely won’t be enough to avoid the inevitable if other revenues don’t increase and service levels are not to be further cut, suggests Yearwood.
"We may have to raise taxes to get the budget where it needs to be," he said.
"I’m doing what I said I was going to do if elected, and that was to stop wasteful spending and do the right thing for Barrow County," said Yearwood.
