Reps. Taylor and Cannon give update on Kemp’s budget report
Published 10:14 am Monday, January 27, 2025
This week the Georgia General Assembly did not meet in full session. Monday was the day we celebrated and honored the life and work of Reverend Martin Luther King, Jr. As a National Holiday, numerous events across the state are planned and many of the members of the General Assembly were able to attend these services. This year because of the inauguration of the 47th President, Donald Trump, there were even more events to celebrate. In addition, Monday night was the final College Football Championship Game, played at Mercedes Bentz Stadium. We welcomed many visitors in Atlanta for all the festivities. However, we also received a frosty visit in the form of an “Artic Blast” and it disrupted our traditional schedule.
The, the second week is commonly known as “budget week.” It is when we customarily conduct joint hearings with the House and Senate Appropriations committees, where the governor, state leaders and agency experts present their budget recommendations to the joint committee. However, Governor Brian Kemp declared a State of Emergency on Monday in anticipation of winter storms across the state. Despite the weather setback, Gov. Kemp released his official budget report to the joint committee, and legislators and staff continued working remotely to ensure the budget process remains on time.
Passing a balanced budget is our one constitutional obligation, and each year, budget week serves as the opportunity to begin the process for the state’s financial planning, covering both the remainder of the current fiscal year [Amended Fiscal Year (AFY) 2025] and the upcoming one [Fiscal Year (FY) 2026]. Below are some of the highlights. These recommendations will eventually be transformed into legislation that will determine how the state allocates its revenue for AFY 2025 and FY 2026.
In his budget proposals, Gov. Kemp made it clear, his top priority is providing relief for those affected by the devastation of Hurricane Helene. As such, the governor is proposing more than $614 million in the AFY 2025 budget to support recovery efforts across the state. This includes more than $600 million allocated to a range of recovery initiatives, such as debris cleanup and road repairs, funds for agriculture and timber relief, and funds to maintain the state’s property insurance risk pool for repairing state facilities, and resources for FEMA-related expenses.
Gov. Kemp’s proposals also highlight Georgia’s recent economic performance, emphasizing the state’s continued position as the number one state for business for 11 consecutive years. The governor credits this achievement to the state’s fiscal management, which has allowed Georgia to return more than $7.6 billion in tax relief to citizens through property tax cuts, motor fuel tax reductions, and income tax rebates. To build on this accomplishment, the governor’s budget proposals include a one-time tax rebate of $1 billion for the 2024 tax year, along with a phased income tax cut that would reduce the rate from 5.75 percent to 4.99 percent. In his report, the governor proposes an additional reduction in tax rates to 5.19 percent by 2025. With these measures, Georgia taxpayers could benefit from more than $9.7 billion in cumulative savings since 2021.
In addition to tax relief, the Governor’s proposals emphasize the importance of maintaining a healthy Revenue Shortfall Reserve. The governor also places a strong emphasis on supporting water and transportation infrastructure, as his proposals suggest $1.6 billion be set aside for development in these areas. This would include funds for capital construction, and freight infrastructure through the Georgia Department of Transportation. The governor’s budget proposals also suggest a boost in funding for local communities, recommending $1.1 billion be added in the AFY 2025 budget for economic development initiatives. This would include extra funds for local road assistance grants, which would more than double the annual investment in local transportation.
In addition, his budget proposals include $250 million in increased funding for the Georgia Environmental Finance Authority to support water infrastructure projects, as well as $501.7 million for coastal water investments aimed at fostering long-term growth in Georgia’s coastal communities. Following the devastation caused by Hurricane Helene, this funding would help rebuild water infrastructure and support projects along our state’s resilient shores.
In line with his infrastructure priorities, Gov. Kemp’s budget proposals recommend an additional $60 million for the Georgia Transportation Infrastructure Bank, which would provide low-interest loans and grants to support local transportation improvements. His budget proposals also call for an additional $48 million for the OneGeorgia Authority, which would continue support for rural workforce housing and site development programs. These initiatives have already facilitated 22 projects and are expected to generate up to 1,607 new housing units.
Additionally, the governor’s budget focus on meeting the needs of Georgia’s education system. His budget proposals include more than $1 billion combined in new investments across all levels of education, from Pre-K through higher education, which would fully fund Georgia’s education sector. Specifically, Gov. Kemp’s budget proposals include $174 million for the State Health Benefit Plan and $115 million for the Teachers Retirement System to cover the employer share of healthcare and retirement benefits.
An issue of importance to all Georgians is healthcare which remains a top priority in the budget recommendations. The proposal includes $324 million to support growth in Medicaid enrollment and utilization, with $36 million earmarked to cover pharmacy benefits for treatments such as gene therapies for sickle cell disease. Additionally, the governor’s plan calls for $150 million to increase funding of medical schools, aiming to strengthen Georgia’s healthcare workforce and advance medical research. By investing in our medical schools and healthcare institutions, we can enhance the quality of care for Georgians while building a stronger, more capable healthcare workforce.
Public safety and corrections are also priorities in Gov. Kemp’s budget proposals. It addresses the challenges facing Georgia’s correctional system in the wake of the pandemic, including rising healthcare and staffing costs. In response, the governor’s budget proposals recommend a historic $603 million for the Georgia Department of Corrections to recruit and retain staff, improve facility security and address the physical and mental health needs of inmates. To maintain the well-being of both those who serve in our correctional facilities and the public.
It was unfortunate that the unusually cold and snowy weather, across the entire state caused the scheduled, live meetings to be postponed. We will be doubling down over the next week to complete these important hearings. Our schedules are full with these hearings and other meetings but it will allow us to meet our deadline.
While we enjoyed the beauty of the white fluffy stuff, after a day or two, we were mostly shut in and were not able to venture out due to the curfews. The winners were the kids (old and young) that played in the snow, built snowmen and made memories of this historic snow event. It would only be appropriate to thank all of our state and local first responders and frontline workers for their dedication and service during this weather emergency.
While your legislators did find time to continue state business via zoom and on the telephone. We had discussions with several citizens concerning a number of issues, including the FLOST, the Statewide Floating Homestead Exemption. It was created to provide local governments with another tool to provide property tax relief to its citizens. Our citizens are facing high cost-of-living and have been calling for meaningful relief, so that is exactly what we did. This is a sound law that creates opportunity for tax relief, creates predictability for homeowners, all while preserving local control.
We can share that HB 581 was passed in direct response to the outcry we heard from all corners of the state, Georgians needed relief from inflation and skyrocketing assessments and property taxes. Working with Association of County Commissioners and the Georgia Municipal Association, and numerous stakeholders, legislation was crafted to provide meaningful tax relief. Ultimately, after two days of public and committee hearings, in the House and Senate, the bill passed. In the November election, the Citizens of Georgia passed the referendum by over 60% statewide. We are optimistic that all the citizens of South Georgia will benefit from this
We returned to the Gold Dome on Monday, January 27, 2025 and continued with our meetings and other state business. You can contact us with any questions and concerns you may have as this legislative session progresses. We can be reached as follows: Rep. Darlene Taylor may be reached at her office in the Capital Building 245-B or via email at darlene.taylor@house.ga.gov or by phone at (404) 463-2246. Rep. Chas Canon, his office is 501-C Coverdell Legislative Office or via email at chas.cannon@house.ga.gov or by phone at: (404) 656-0177
Thank you for allowing us to serve as your state representatives for this legislative term.