Week 2 Session Update: Budget Planning Takes Center Stage

Foll owi ng an exciting Presidential Inaugur ation and the obser vance of Mar t in Luther King Jr. Day, the Georgia General Assembly prepared to resume its legislative session on Tuesday, January 21, with the muchanticipated “budget week.” This period, traditionally dedicated to joint hearings by the House and Senate Appropriations Committees, marks the beginning of budget planning for the state. However, winter storms prompted Governor Kemp to declare a State of Emergency, delaying these hearings. Despite this disruption, the governor released his official budget report, allowing legislators and staff to continue their work remotely, ensuring the budget process remains on schedule.

Passing a balanced budget is the legislature’s only constitutional obligation and serves as the foundation of Georgia’s financial planning. During budget week, lawmakers review proposals for the Amended Fiscal Year (AFY) 2025 and Fiscal Year (FY) 2026 budgets. These recommendations, presented by state leaders and agency experts, will eventually be transformed into legislation determining how the state allocates its revenue. Effective budget planning ensures that Georgia’s financial resources are used efficiently to address both immediate and long-term needs.

Relief for Hurricane Helene Recovery

For those of us living in south Georgia, we only have to look out our windows or drive through our communities to be reminded of the devastation we all faced just a few months ago. That’s why I was pleased to see that a top priority in Governor Kemp’s budget proposals is addressing the aftermath of Hurricane Helene. He has allocated over $614 million in the AFY 2025 budget to support recovery efforts statewide. This includes $300 million for debris cleanup and road repairs, $100 million for agriculture and timber relief, $50 million to stabilize the state’s property insurance risk pool, and $150 million for FEMA-related expenses. These investments are vital for helping communities rebuild and ensuring resilience against future natural disasters.

Tax Relief and Economic Growth Georgia’s strong, conservative fiscal management continues to deliver benefits to residents. Governor Kemp’s proposals include a $1 billion one-time tax rebate for the 2024 tax year and a phased reduction in the income tax rate from 5.75% to 4.99% by 2026. This change is expected to save taxpayers approximately $745 million annually.

The governor’s budget also emphasizes maintaining a robust Revenue Shortfall Reserve. With $2.7 billion in reserve funds, the state can make targeted investments in infrastructure, including $743 million for transportation projects and $250 million for water system improvements. Additionally, $1.1 billion is earmarked for local economic development, such as road assistance grants and coastal water infrastructure. Careful budget planning in these areas ensures that the state remains prepared to address challenges while fostering growth. Investing in Education and Healthcare Governor Kemp’s budget underscores a commitment to education, with more than $1 billion in new investments across all levels of learning. This includes $141 million to fund the first year of Georgia’s Promise Scholarships, ensuring access to higher education, and $115 million for the Teachers Retirement System. These measures aim to support educators and provide students with the resources they need to thrive.

Healthcare is also a priority, $36 million for advanced treatments, such as gene therapies for sickle cell disease. Additionally, $150 million is designated to expand funding for Georgia’s medical schools, strengthening the state’s healthcare workforce and advancing medical research. We know that students tend to locate relatively close to where they are trained. Continued investment in Georgia’s medical schools and healthcare training programs will lead to increased numbers of much-needed healthcare workers remaining in our state, particularly rural areas.

Strengthening Infrastructure and Public Safety To support economic development, Governor Kemp’s proposals include $60 million for the Georgia Transportation Infrastructure Bank and $48 million for the OneGeorgia Authority, which focuses on rural workforce housing. These initiatives aim to improve living conditions and promote growth in areas like the 156th district.

Public safety and corrections are also key priorities. The budget recommends $603 million for the Georgia Department of Corrections to enhance staffing, improve facility security, and address the physical and mental health needs of inmates. Additionally, $725 million is proposed to bolster the state’s retirement systems, ensuring the well-being of public servants.

Looking Ahead

While winter storms briefly delayed legislative activities, my colleagues and I remain committed to addressing Georgia’s financial priorities. Effective budget planning will play a pivotal role in guiding these efforts. As the session resumes, House Appropriations Subcommittees will meet to review specific sections of the budget, ensuring a thorough and efficient process.

Thank you for remaining engaged with Georgia’s legislative process. If you have any questions or need assistance, please don’t hesitate to reach out to me at leesa.hagan@house.ga.gov. I look forward to continuing our work together to benefit our community and our great state. Thank you for trusting me to represent you at our Capitol.