Governor Brian Kemp announced his budget proposal on Friday, highlighting $250 income tax rebates, one-time discounts on homeowner property tax, and spending on education, economic development, improving healthcare access, and a $2,000 cost-of-living increase for state employees.
“Despite national economic headwinds caused by 40-year high inflation, Georgia’s economy remains a leader nationwide. As we look ahead to the upcoming fiscal year, we expect the state’s economy to be well positioned to withstand any further national economic slowing,” he said in a letter to lawmakers.
Kemp enters the legislative session with the wind at his back both politically after his reelection and financially, with a $6.58 billion surplus left at the end of Fiscal Year 2022 in June. Republicans in both chambers of the legislature can ease the passage of shared priorities.
In total, the proposal predicts about $33 billion in revenues each for Fiscal Years 2023 and 2024.
The proposal includes about $1.8 billion across FY 2023 and 2024 for K-12 education, including increased salaries, $15 million in grants to encourage paraprofessionals to get teaching certifications, and $50,000 school safety grants for each K-12 school. The proposal also includes $61.2 million for the HOPE scholarship programs.
It includes $166.7 million for an economic development fund to help localities incentivize business development. It includes $35.7 million for a fund to allow local authorities to prepare land for housing development. The proposal includes $52 million in FY 2024 to increase health insurance access, and $92 million in FYs 2023 and 2024 for a reinsurance program to reduce insurance premiums.
Kemp is also proposing $77 million across the two years for maintenance at state law enforcement facilities, $25 million to add to previously-allocated funds to build a new state prison, $34.6 million for a new public safety radio system, and $3.2 million for a loan repayment plan, offering law enforcement officers up to $20,000 in return for five years of service.
The proposal also includes a second round of income tax rebates after those approved in the previous budget, $250 for single payers and $500 for joint payers, costing $1 billion from the surplus. The proposal includes a $20,000 exemption on homeowner property tax, worth an average savings of about $500.
Additionally, it includes $243 million in FY 2024 for cost of living increases for state employees.
“While economic uncertainty remains present, through conservative fiscal stewardship we can continue to grow. It is only through the sound decisions made in previous years that we have the opportunity to address new challenges and deploy innovative solutions,” Kemp said in his letter.
NFIB State Director Hunter Loggins said in a statement, “We’re still looking over it, but there’s a lot here that would help Georgia’s small businesses, like the $166.7 million for a Regional Economic Business Assistance program that would help local governments provide incentives to support economic development. Our small business members would also benefit from the proposed $1 billion in state income tax refunds. Most small businesses in the state are organized as pass-through entities, meaning any profit passes through the business to the owner, who pays taxes at the individual rate.”
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Eric Burk is a reporter at The Georgia Star News and The Star News Network. Email tips to [email protected].
Photo “Brian Kemp” by Brian Kemp. Background Photo “Georgia State Capitol” by Ken Lund. CC BY-SA 2.0.
