Governor Brian Kemp’s proposed budget for Georgia is a mix of increased spending and cautious revenue projections, with a focus on immediate needs, disaster relief, and infrastructure development. Here’s a breakdown of the key points:
- Increased Spending: Kemp wants to raise the state’s budget by 12%, from $36.1 billion to $40.6 billion, a $4.4 billion boost in the final months of the current fiscal year. This additional spending will come from both tax revenue growth and tapping into Georgia’s substantial reserves, which total over $16 billion.
- Cautious Revenue Growth: For the 2026 budget year, Kemp projects minimal revenue growth, reflecting a cautious approach to income tax cuts. He aims to avoid creating large, ongoing government programs, emphasizing fiscal restraint.
- Hurricane Helene Relief: The state plans a significant relief effort following Hurricane Helene, with a proposed $1 billion in aid. This includes $615 million for immediate relief, tax breaks for affected farmers and timber growers, and $200 million for transportation repairs. Another $150 million would be set aside for matching federal disaster funds.
- Tax Relief and Disaster Aid: Kemp wants to provide further tax relief for farmers and others affected by the hurricane and exempt federal disaster relief from state income taxes, which could cost the state an additional $450 million in foregone revenue.
- Cash for Construction Projects: Kemp proposes using the state’s surplus funds to pay for construction projects, avoiding the need for borrowing. This includes $100 million for medical research facilities, $47 million for new ballot scanners, and other key projects.
- Infrastructure Investments: The budget includes significant investments in infrastructure, including $502 million to ensure a sustainable water supply for Savannah and its surrounding counties, $530 million for transportation improvements, and $250 million for local water and sewer infrastructure.
These measures indicate Kemp’s strategy of maintaining fiscal responsibility while addressing immediate needs, particularly following the hurricane and for infrastructure development.