Nationwide, tax recovery varies widely; Georgia one of 26 states still trailing

Nationally, total state tax revenue has recovered from its plunge during the Great Recession, despite a slump in receipts in early 2014. But the recovery is uneven. Adjusted for inflation, tax collections in 26 states had not fully rebounded by the first quarter of 2014.

For the fourth straight quarter, total tax revenue for the 50 states was above a key benchmark on the road to recovery. In real dollars, overall tax collections in the first quarter of 2014 were 2.2 percent higher than their peak in the third quarter of 2008, just before the recession took a toll on state tax revenue.

This means that in early 2014, states took in $1.02 for every $1 they collected at their 2008 tax revenue peak, after adjusting for inflation and seasonal fluctuations.

The latest results marked the first decrease after 16 straight quarters of tax revenue increases (based on fourquarter moving averages), but it was not seen as a sign of new economic troubles. The decline was largely anticipated because of a one-time surge in receipts in the prior year as taxpayers accelerated payments to avoid new, higher federal rates on capital gains.

More importantly, state-by-state results continued to vary dramatically.

A comparison of each state’s peak revenue before the end of the recession and its tax receipts in the first quarter of 2014, averaged across four quarters and adjusted for inflation, reveals that:

Alaska was furthest from its peak, down 66.3 percent. But, its 2008 peak was due to a shortlived windfall from a new state oil tax that took effect just as crude prices spiked to record levels.

Three other states’ receipts also were still down more than 15 percent from previous peaks: Wyoming (-26.1 percent), Florida (-20.2 percent), and New Mexico (-17.1 percent).

North Dakota led all states, as its oil boom boosted tax revenue to 113.5 percent above its highest point during the recession.

The next-largest rebounds were in Illinois (23.5 percent) and Minnesota (15.0 percent). Tax increases imposed after the recession contributed to both states’ revenue growth.

“We see close to 80,000 patients a year,” he said. “As we add more and more specialists, we’ll keep more and more here. Specialists are key.”

Closing Hutcheson’s Women’s Center meant fewer babies were delivered and fewer OB/GYN patient visits and surgeries took place at the hospital.

While highly regarded, when the Women’s Center closed it was reported that it had lost nearly $2 million in its final year of operations.

But the center was losing money due to disparities in insurance reimbursement: Georgia’s Medicaid patients are crossing the state line to receive non-emergency care — something that has a huge impact on the number of labor and delivery admissions at Hutcheson.

During the most recent 10-month period that includes Oct. 1 through Dec. 31, 2013, the day the women’s center closed, the hospital reported 129 births. For the same 10 months the previous year there were 509 babies delivered at Hutcheson hospital.

If Gov. Nathan Deal were to approve a change in Medicaid payments, Hayes predicts Hutcheson reopening the Women’s Center and offering a full compliment of OB/GYN services.

The hospital is currently engaged in legal wrangling with Erlanger Health Services that are being heard in the federal court system.