Georgia lawmakers returned to the Capitol after the Martin Luther King Jr. holiday for a week focused on budget discussions. The House and Senate Appropriations Committees, led by Chairman Blake Tillery and Chairman Matt Hatchett, held three days of hearings with leaders from various state agencies. These meetings centered on funding requests for the Amended Fiscal Year 2026 and Fiscal Year 2027 budgets.
Passing a balanced budget is the only action required by Georgia’s constitution each year. Governor Brian Kemp presented his spending recommendations following his State of the State address. He outlined several priorities, including a reduction in the state income tax rate to 4.99%, more than $1 billion in taxpayer rebates, and $2.3 billion allocated for expanding freight and commuter corridors around metro Atlanta as well as local road and bridge maintenance projects.
Other highlights from Kemp’s proposal include $33 million for water and sewer projects through the Georgia Environmental Finance Authority, $35 million to create a natural gas infrastructure financing program, full funding for the HOPE Scholarship Program, and a $325 million endowment to launch the DREAM Scholarship—the first needs-based aid program in Georgia higher education history.
Kemp told committee members: “Georgia’s debt ratio is the lowest it has been since the state first began issuing bonds over five decades ago,” adding that eliminating an unfunded liability for retiree health benefits saved $240 million annually. He also said: “My administration has saved Georgia taxpayers $9.7 billion through tax rebates, reductions in the state income tax, and gas tax suspensions.” Kemp noted that Georgia’s rainy day fund remains full to prepare for unexpected emergencies.
State economist Robert Buschman provided an economic outlook to lawmakers, reporting that personal income tax revenues increased by 1.3 percent despite recent rate cuts. Buschman described current conditions as an economic slowdown but not a recession, citing ongoing political and economic instability affecting markets.
Agency heads spent three days presenting their budget requests and answering questions from legislators. Appropriations subcommittees are scheduled to begin detailed reviews of specific budget areas next week.
In other legislative developments, Republican Steven McNeel and Democrat LeMario Brown advanced to a runoff election set for February 17th after no candidate secured more than half of votes in a special election for Macon’s vacant Senate seat. Another Senate seat will likely remain unfilled this session following Senator Colton Moore’s resignation.
The General Assembly plans to meet Monday through Thursday next week as committee activity increases ahead of deadlines for bill introductions and candidate qualifying periods in early March.
This report was provided by the Regional Business Coalition of Metropolitan Atlanta (RBC), which represents over a dozen major Chambers of Commerce across metro Atlanta with more than 15,000 member companies employing millions locally. The RBC focuses on regional public policy issues related to transportation, water quality, air quality, and economic development initiatives aimed at improving metro Atlanta’s quality of life.
