The Pattison Group

States balance budgets with cuts, not taxes

It’s turned out to be a little less horrible than expected. That’s largely because more than half of the states saw more tax revenues come in than they had anticipated, a small but significant dividend from a gradually improving economy. California discovered an additional $6 billion in tax revenues that it hadn’t counted on. In New Jersey, the windfall was more than $900 million; in Michigan it was $429 million.

The extra cash helped ease the sense of emergency. But it wasn’t enough to save most states from the budget reckoning they anticipated. Scott Pattison, executive director of the National Association of State Budget Officers, likens the situation states faced this year to a couple who gets a hefty tax refund but still can’t afford a trip to Disney World because they have too many bills to pay.

According to Pattison’s group, 20 states had virtually no money in their rainy day funds. That meant those states this year essentially had to choose between making big spending cuts or raising taxes — or some combination of those two — to balance their budgets.

By and large, they’ve chosen spending cuts. Fresh off historic election wins in November, Republicans swept into statehouses pledging to shrink the size of government. Some 13 governors and 1,262 state legislators — a record number of both — have signed a pledge not to raise taxes. For many of them, the imperative to close budget gaps represented not a crisis but an opportunity to realign state government around a smaller mission.

The result is budgets that contract state government to a degree never before seen in some capitals. Florida’s budget spends $1 billion less than last year and $4 billion less than 2006. New York closed its $10 billion deficit with $9.3 billion in spending reductions. Arizona did away with a $1.5 billion shortfall with $1.1 billion in net spending reductions — and no new taxes.

“Everyone is cutting,” says Sujit M. CanagaRetna, a tax and budget expert at the Council of State Governments. “That’s a given.”

Michigan was a key battleground on corporate taxes. Republican Governor Rick Snyder made good on a campaign promise to eliminate the much-hated “Michigan Business Tax,” which companies complained was not only too costly but also convoluted and difficult to calculate. The tax will be replaced with a flat 6 percent corporate income tax. Michigan will make up the $1.8 billion in lost business tax revenues with a higher tax on personal income. Under existing Michigan law, the state income tax rate was supposed to drop to 3.9 percent by 2015. The measure Snyder signed keeps the income tax rate at its current 4.35 percent until January 1, 2013, when it will drop to 4.25 percent.

Brian Pattison of Miller-Valentine Group, Graduates 2011 ...

COLUMBIA, SC- June 16, 2011 -  Miller-Valentine Group has announced project manager, Brian Pattison, graduated from the 2011 Leadership Columbia class, a Columbia Chamber of Commerce program designed to provide existing and emerging leaders with opportunities to enhance their civic knowledge and professional network.

Mr. Pattison has over 15 years of experience in the construction industry including a wide variety of design/build projects ranging from Class “A” office, industrial, medical, retail, religious and student housing facilities.  His most recent projects completed include a 465,000 SF distribution center for Home Depot and an 18,500 SF mixed-use project in the Vista. Miller-Valentine Group is a full-service real estate company that offers expert services in the areas of development and construction, providing total real estate solutions totaling more than 50 million square feet in a variety of industries. Founded in 1963, Miller-Valentine Group’s commitment to quality, value and service is reflected in its wide range of products, from multi-family residences to Class “A” office and retail developments. Miller-Valentine Group has been awarded the prestigious national “Developer of the Year Award” by NAIOP, a leasing association in the real estate industry. For more information regarding Miller-Valentine Group, visit www.mvg.com . From the Blog BIO bound: Delegation will tout S.C.’s benefits for biotech companies at industry’s premier event

COLUMBIA, SC - June 22, 2011 - Next week, a team of South Carolinians will head to Washington, D.C., to represent the state’s growing biosciences industry and business-friendly environment at the 2011 BIO International Convention. During the June 27–30 event, South Carolina’s delegation will have the chance to interact with a “who’s who” of bioscience [...]

WASHINGTON, DC - June 22, 2011 - Assistant Democratic Leader James E. Clyburn today issued the following statement on President Obama’s plan for troop withdrawals from Afghanistan: “President Obama tonight delivered on his promise to begin responsibly drawing down our troops in Afghanistan.  Eighteen months ago he launched a troop surge that has proven effective, and [...]

Board Approves $6.5M in Projects CHARLESTON, SC - June 22, 2011 - The South Carolina State Ports Authority Board today approved its fiscal year 2012 budget, which projects a 6.6 percent increase in container volume and nearly $82 million in capital projects for the year. In the fiscal year beginning July 1, the SCSPA plans to invest [...

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