State ended tough year with surplus and reserves full

ATLANTA - Georgia ended its budget year on July 1 with its reserve funds full and an estimated surplus of $150-$300 million, but it was the first time since 1953 that tax collections were less than the year before. <br> <br> Revenue for the year came to nearly $13.1 billion, down by $686.2 million, or five percent, from last year, with declines in all 12 months. <br> <br> The state used a massive surplus from the previous year to offset most of the effects of the national recession, trimmed some spending and converted a school construction program from cash to money borrowed through bonds. <br> <br> Henry Thomassen, the governor&#39;s economic adviser, told reporters those steps allowed the state to keep its reserves of $900 million full and to accumulate a surplus of $150-$300 million above that when the books were closed on the year. <br> <br> Thomassen said he looks for little improvement in the first half of the new budget year, which runs from July first to June 30.