Georgia legislature reviews midyear budget changes as session reaches halfway point

Frankie Atwater, Sr., President & CEO at DeKalb Chamber of Commerce
Frankie Atwater, Sr., President & CEO at DeKalb Chamber of Commerce
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The Georgia legislature met for Legislative Days 19 through 22 this week, reaching the halfway mark of its 40-day session. Committees in both chambers were active as lawmakers work to advance bills before the March 6 Crossover Day deadline. Candidates planning to run for legislative and statewide office will need to file their candidacies during the week of March 2. Speaker Pro Tempore Jan Jones (R-Milton), the second-highest ranking member of the House, announced her retirement and will not seek reelection.

The Senate Appropriations Committee reviewed the Amended Fiscal Year 2026 budget on Wednesday. Chairman Blake Tillery (R-Vidalia) outlined key Senate priorities and noted differences from versions advanced by the House and Governor. The Senate allocated $409 million for a new state mental health hospital, resulting in cuts elsewhere: state employee pay supplements were reduced from $2,000 to $1,250, and funding for the DREAMS Scholarship was lowered from $300 million to $100 million.

Other changes included reducing funds set aside by Governor Kemp for addressing urban homelessness from $50 million to $25 million while reallocating $15 million specifically to eliminate veteran homelessness. The Senate proposed spending $180 million on two modular prison facilities instead of the House’s plan for $220 million toward private prisons.

Chairman Tillery also mentioned areas of agreement with the House: “the Senate’s agreement with the House’s recommendation of an additional $50 million for the Employees’ Retirement System; $2 billion for road investments; and $89 million to address a critical shortage at the Department of Human Services, with an additional $15 million for child endangerment reporting at the Georgia Bureau of Investigation.” Once approved by the Senate, differences between versions are expected to be resolved in a conference committee before being sent to Governor Kemp.

In budget process reform, Senator John Albers (R-Roswell) introduced the ‘Waste Reduction Act of 2026,’ which would require zero-based budgeting by all state agencies at least once every ten years and mandate that future gubernatorial budget reports use this method starting January 2027. The Appropriations Committee approved this legislation, sending it forward to Rules Committee review.

On insurance policy, Speaker Jon Burns (R-Newington), Insurance Commissioner John King, and Representative Matt Reeves (R-Duluth) announced the Affordability and Claims Integrity Act on Wednesday. The measure aims “at increasing accountability and transparency for ratepayers.” It proposes higher fines for violations, tougher enforcement against uninsured motorists, and increased collaboration between relevant agencies. Additional related bills would increase penalties for surprise billing or mental health treatment violations, shorten premium tax refund periods, and require insurers who exceed profit expectations to lower rates. All four measures passed out of committee Thursday morning.

Regarding data centers, Representative Brad Thomas (R-Holly Springs) sponsored a bill codifying protections from costs associated with data center operations into law following a recent Public Service Commission ruling. It requires minimum billing requirements in utility contracts with large-load consumers like data centers and mandates contract provisions protecting residential customers if such contracts end or default occurs. The bill passed overwhelmingly in the House and now awaits consideration in a Senate committee.

Separately, Senator Matt Brass (R-Newnan) presented a bill restricting entities from claiming both data center tax credits and computer equipment exemptions simultaneously; no vote was taken yet on this proposal.

Senator Shawn Still (R-Suwannee) introduced legislation called ‘Georgia River Heritage Act’ addressing rights over non-navigable waterways—granting citizens passage rights—but no committee vote has occurred so far.

Representative Lauren McDonald (R-Cumming) put forward two transportation-related measures: one would abolish the Atlanta-region Transit Link Authority Director of Planning role with duties shifting to Georgia’s Transportation Commissioner; another would change how that commissioner is selected—requiring nomination by governor followed by board approval. Both await review in committee.

In election news, Republican Steven McNeel won Tuesday’s special runoff election in State Senate District 18 with about 59% support over Democrat LeMario Brown. McNeel replaces John Kennedy after his resignation last December.

This update comes from an organization representing major Chambers of Commerce across metro Atlanta—including DeKalb County Chamber of Commerce—which supports local businesses through opportunities for access, influence and leadership while promoting credibility among consumers (official website). The chamber also offers affordable health coverage plans tailored for small businesses (official website), provides networking events aimed at strengthening professional connections (official website), and publishes community resources supporting growth throughout DeKalb (official website).



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