Portrait of Dr. Martin Luther King, Jr. displayed in the Georgia State Capitol on Friday.
As the world reacted to the shove heard round the world, the General Assembly kept a low profile on Friday. Convening an hour earlier than the Senate, the House gaveled in and out before senators even made it to their desks. Business was also light in the Senate, but Lieutenant Governor Burt Jones did take a point of personal privilege to acknowledge Thursday’s events, which made local and national news. Following a conversation with Speaker of the House Jon Burns, Jones announced an agreement that such events would not happen again. As we all prepare to honor the life and legacy of Dr. Martin Luther King, Jr. on Monday, here’s hoping the chambers can give peace a chance.
Although the General Assembly is in adjournment next week, appropriators will be scrutinizing Governor Brian Kemp’s spending plans during Joint Appropriations Committee hearings that begin on Tuesday. An in-depth dive into those plans is inside this #GoldDomeReport.
In this Report:
- IN DEPTH: Governor’s AFY 2025 and FY 2026 Budget Proposals
- New Legislation
- What’s Next
IN DEPTH: Governor’s AFY 2025 and FY 2026 Budget Proposals
On Thursday, the Office of Planning and Budget released Governor Kemp’s proposals for the Amended FY 20205 and FY 2026 budgets. With both spending plans, Kemp aims to, “prioritize putting taxpayer dollars where they belong — back in the pockets of hardworking Georgians — while meeting our financial obligations as a state, strategically investing funds to reduce future costs and build infrastructure for future growth, and ensuring we take care of our most vulnerable citizens as well as those devastated by the impact of Hurricane Helene.”
Total state fund revenues for FY 2025 Amended are more than $40.5 billion. For FY 2026, the state revenues are $37.7 billion. In other economic news, Georgia’s job growth in FY 2024 and through the first five months of FY 2025 (since July 1, 2024) has been the strongest in education and health services sectors while the weakest growth in jobs has been seen in wholesale and retail areas. With changes in Washington with a new administration, there are unknowns about changes in policies and those impacts that may be forthcoming to our financial situation (such as tariffs on goods that are imported). Overall, the state’s economist is projecting growth to slow from what 2024 saw. The financial health, though, of consumers remains strong but that could change with the tariffs imposed.
Governor Kemp has proposed more than $7.6 billion be returned to taxpayers in property tax relief, motor fuel tax relief, and income tax rebates and cuts. He is continuing to lower Georgia’s income tax rate from 5.75% to 4.99%. The budget reflects an additional reduction by 20 basis points down to 5.19% for the 2025 tax year (a savings to Georgians of $745 million).
In the Office of the Governor for FY 2025 Amended, in the Governor’s Emergency Fund, he has targeted $150 million to provide emergency response expense reimbursement for Hurricane Helene (the state’s share of FEMA match). Within the Department of Transportation, Capital Construction Projects, the governor proposed an increase of more than $98.9 million for capital construction projects to hold the Department of Transportation harmless for the suspension of the motor fuel excise tax in response to Hurricane Helene. Also within the Department of Transportation, Governor Kemp proposed $200 million for debris removal, infrastructure rehabilitation, and signage replacement due to Helene. He also proposed $50 million within the Department of Administrative Services to address property liability impacts to state agencies due to the hurricane. Finally, he proposed adding in the Georgia State Financing and Investment Commission: Capital Projects fund Georgia Forestry Commission — Firefighting helicopter ($4,785,000); Georgia Forestry Commission — Environmental cab tractors ($10,989,262); and funds to replace Debt Defeasance Funds used for farmer and timber producer relief and debris removal ($100,000,000). In all, this is more than $614.7 million to address the impacts of Helene in the state.
A few noteworthy areas to consider are as follows (this is not a full analysis of each agency and program area):
Amended FY 2025
- Department of Agriculture (total funds of $66.9 million)
- Consumer Protection
- An addition of $425,772 for more administrative oversight assistance (license coordinator, investigator, and equipment) to expand Georgia’s Hemp Program (per SB 494 (2024))
- Department of Behavioral Health and Developmental Disabilities (total funds of $2.090 billion)
- Adult Addictive Diseases Services
- Replacement of $375,000 in state general funds with other funds for the expansion of Hepatitis C screening services at core behavioral health provider sites
- Adult Developmental Disabilities Services
- Reduction of $1.5 million to reflect the delayed start date of the Macon Crisis Stabilization and Diagnostic Center for individuals with intellectual and developmental disabilities
- Adult Forensic Services
- Reduction of $436,920 in funds to reflect the delayed start date of a 30-bed jail-based competency restoration program pilot in Dodge County
- Adult Developmental Disabilities Respite Services (no change)
- Adult Mental Health Services
- Addition of $500,000 to transfer funds for the Georgia State Investment and Financing for the planning, design, and land acquisition of a new behavioral health crisis center in North Metro Atlanta
- Child and Adolescent Addictive DIseases Services (no change)
- Child and Adolescent Developmental Disabilities (no change)
- Child and Adolescent Forensic Services (no change)
- Child and Adolescent Mental Health Services (no change
- Department of Community Health
- Healthcare Access and Improvement (no change)
- Healthcare Facility Regulation
- Language instructing that the Department utilize existing funds of $417,898 for consulting and personal services for the Certificate of Need program pursuant to HB 1339 (2024)
- Indigent Care Trust Fund (no change)
- Medicaid Aged Blind and Disabled
- More than $5.9 million added for growth in Medicaid based on projected utilization
- More than $17.9 million added for skilled nursing centers based on projected utilization
- More than $9.8 million added for Medicare Part D clawback payment
- $11.49 million plus added for new high cost drugs
- Language instructing the Department to replace more than $4.7 million in state general funds with hospital provider fees and $6.7 million in state general funds with nursing home provider fees
- Reduction of $477,435 for ambulance provider fees based on projected revenue
- Medicaid Low-Income
- Reduction of more than $85.3 million based on projected utilization
- Addition of more than $5.8 million for Centers for Medicare and Medicaid Services requirement that the state provide 12 months of continuous eligibility for children under the age of 19 in Medicaid effective January 1, 2024
- Language instructing the Department to replace more than $41.4 million in state general funds with hospital provider fees
- PeachCare for Kids
- Reduction of more than $16.1 million in funds based on projected utilization
- Addition of $449,825 for Centers for Medicare and Medicaid Services requirement that the state provide 12 months of continuous eligibility for children under the age of 19 in Medicaid effective January 1, 2024
- State Health Benefit Plan (no change)
- Department of Community Health
- Healthcare Access and Improvement (no change)
- Healthcare Facility Regulation
- Language instructing that the Department utilize existing funds of $417,898 for consulting and personal services for the Certificate of Need program pursuant to HB 1339 (2024)
- Indigent Care Trust Fund (no change)
- Medicaid Aged Blind and Disabled
- More than $5.9 million added for growth in Medicaid based on projected utilization
- More than $17.9 million added for skilled nursing centers based on projected utilization
- More than $9.8 million added for Medicare Part D clawback payment
- $11.49 million plus added for new high cost drugs
- Language instructing the Department to replace more than $4.7 million in state general funds with hospital provider fees and $6.7 million in state general funds with nursing home provider fees
- Reduction of $477,435 for ambulance provider fees based on projected revenue
- Medicaid Low-Income
- Reduction of more than $85.3 million based on projected utilization
- Addition of more than $5.8 million for Centers for Medicare and Medicaid Services requirement that the state provide 12 months of continuous eligibility for children under the age of 19 in Medicaid effective January 1, 2024
- Language instructing the Department to replace more than $41.4 million in state general funds with hospital provider fees
- PeachCare for Kids
- Reduction of more than $16.1 million in funds based on projected utilization
- Addition of $449,825 for Centers for Medicare and Medicaid Services requirement that the state provide 12 months of continuous eligibility for children under the age of 19 in Medicaid effective January 1, 2024
- State Health Benefit Plan (no change)
- Georgia Board of Healthcare Workforce - Graduate Medical Education (no change)
- Department of Education
- Agricultural Education (no change)
- Georgia Network for Educational and Therapeutic Support (GNETS) (no change)
- Non-Quality Basic Education Formula Grants (no change)
- Quality Basic Education Equalization
- Reduction of more than $24.3 million to reflect a data correction for Gainesville City and Hall County Tax Digests
- Quality Basic Education Local Five Mill Share
- Reduction of $214,870 to adjust funds for the Local Five Mill Share for two new State Commission Charter Schools
- Quality Basic Education Program
- Addition of more than $114.9 million for the mid-term adjustment based on enrollment
- $12.9 million in formula funds for the State Commission Charter School supplement for a total supplement of more than $248.4 million
- $5.6 million plus added for mid-term adjustment to the State Commission Charter School Supplement for training and experience
- Reduction of more than $1.8 million for the completion of the special schools supplement
- Addition of $12,440,382 to reflect growth in the Special Needs ScholarshipAddition of $835,166 to increase funding to reflect data correction for two locally-approved charter schools, Drew Charter School and the Kindred School in Atlanta Public School system
- Addition of $267,110 to increase funds for a mid-term adjustment to the charter system grant
- $150,725 addition for an increase in formula funds for a mid-term adjustment to the local charter school grant
- School Safety Grants
- Addition of $50 million to provide funds for security grants in the amount of $21,635 per school, allowing local school systems to enhance security system-wide
- Technology/Career Education
- Addition of $95,859 for 2 full-time and 2 part-time positions and operating costs to sustain Great Promise Partnership operations as a part of work-based learning programs for at-risk students at the Department of Education
- Department of Human Services
- Adoptions (no changes)
- Out-of-School Care Services (no changes)
- Child Abuse and Neglect Prevention (no changes)
- Child Support Services
- Addition of more than $5.7 million in one-time funds to maintain software applications on the Georgia Technology Authority mainframe
- Child Welfare Services
- Addition of more than $`.7 million for CASA to replace federal funds deemed ineligible by the Administration for Children and Families
- Elder Abuse Investigations and Prevention (no changes)
- Elder Community Living Services
- Reduction of $225,000 in funds with a transfer of brain health awareness campaign funding to the Department of Public Health to match agency budgets with existing contracts
- Elder Support Services (no changes)
- Out-of-Home Care (no changes)
- Refugee Assistance (no changes)
- Residential Child Care Licensing
- Language instructing the Department to utilize existing funds of $82,550 for one position and TRAILS electronic records management system enhancements to address new licensure and regulation and responsibilities due to the creation of two new Child Caring Institution types in SB 377 (2024 Session) and HB 1201 (2024 Session)
- Safe Harbor for Sexually Exploited Children Fund Commission (no changes)
- Georgia Vocational Rehabilitation Agency: Vocational Rehabilitation Program (no changes)
- Department of Public Health
- Adolescent and Adult Health Promotion (no changes)
- Adult Essential Health Treatment Services (no changes)
- Emergency Preparedness/Trauma System Improvement
- $225,000 transfer of brain health awareness campaign funding from the Department of Human Services to the Department to match agency budgets with existing contracts
- Epidemiology
- Addition of $270,000 to study the impacts of social media on mental health for children in Georgia
- Immunization (no changes)
- Infant and Child Essential Health Treatment Services
- Addition of $437,000 for the cost of mailing low THC Oil Patient Registry cards pursuant to SB 495 (2024 Session)
- Infant and Child Health Promotion (no changes)
- Infectious Disease Control (no changes)
- Inspections and Environmental Hazard Control (no changes)
- Public Health Formula Grants to Counties (no changes)
- Vital Records (no changes)
- Georgia Trauma Care Network Commission
- Elimination of more than $2 million for SB 515 which did not pass during 2024 but was funded
FY 2026
- Department of Agriculture (total funds of $66.0 million)
- Consumer Protection
- An addition of $490,873 for more administrative oversight assistance (license coordinator, investigator,and three inspectors) to expand Georgia’s Hemp Program (per SB 494 (2024))
- Department of Behavioral Health and Developmental Disabilities (total funds of $2.38 billion)
- Adult Addictive Diseases Services
- Reduction of $232,081 to replace state general funds with other funds for the expansion of Hepatitis C screening services at core behavioral health provider sites
- Adult Developmental Disabilities Services
- Addition of more than $26.7 million to annualize the provider rate increases recommended by the NOW and COMP provider rate study
- More than $2.33 million added to annualize cost of 100 NOW and COMP waiver slots for individuals with intellectual and developmental disabilities
- Addition of $2.33 million to increase funds for 100 additional slots for NOW and COMP Waivers
- Addition of $3.1 million to annualize operations of the Macon Crisis Stabilization and Diagnostic Center for individuals with intellectual and developmental disabilities
- Adult Developmental Disabilities Respite Services (no change)
- Adult Forensic Services
- Addition of more than $1 million to annualize operations for a 30-bed jail-based competency restoration program pilot in Dodge County
- $1.18 million to operationalize a 20-bed forensic unit at Georgia Regional Hospital Skilled Nursing Facility (Atlanta)
- $1.6 million addition to operationalize a 30-bed Project New Hope forensic step-down unit at West Central Georgia Regional Hospital (Columbus)
- $1.9 million to operationalize a new 17-bed forensic unit at Central State Hospital Allen Building (Milledgeville)
- Adult Mental Health Services
- More than $12.5 million added t annualize the provider rate increases recommended by the Community Behavioral Health Rehabilitation Services provider rate study
- More than $1.1 million added in a transfer from the Department of Community Health to the Department for four licensure programs to match agency roles and responsibilities
- Child and Adolescent Addictive DIseases Services (no change)
- Child and Adolescent Developmental Disabilities (no change)
- Child and Adolescent Forensic Services (no change)
- Child and Adolescent Mental Health Services
- Addition of $1.8 million to increase and annualize funds for the operations of the new Gateway child and adolescent crisis stabilization unit in Savannah
- Department of Community Health
- Departmental Administration
- $504,332 added for consulting, actuarial, and personal services for the PACE program pursuant to HB 1078 (2024)
- $640,000 for consulting services for two-years for the PACE program pursuant to HB 1078 (2024)
- Addition of $47,869 in funds for three Katie Beckett Medicaid program caseworkers and operating expenses to address increased workload
- Healthcare Access and Improvement
- Transfer of $100,000 to support lupus research, data collection, awareness, and education from the Department of Community Health to the Department of Public Health
- Healthcare Facility Regulation
- Transfer of more than $1.1 million from the Department of Community Health to the Department of Behavioral Health and Developmental Disabilities for four licensure programs to match agency roles and responsibilities
- Language instructing that the Department utilize existing funds of $417,898 for consulting and personal services for the Certificate of Need program pursuant to HB 1339 (2024)
- Indigent Care Trust Fund (no change)
- Medicaid Aged Blind and Disabled
- More than $41.7 million added for growth in Medicaid based on projected utilization
- More than $7.1 million added for skilled nursing centers based on 2023 cost reports
- More than $28.5 million added for Medicare Part D clawback payment
- $36.5 million plus added for new high cost drugs
- Language instructing the Department to replace more than $5.4 million in state general funds with hospital provider fees and $6.1 million in state general funds with nursing home provider fees
- Reduction of $568,995 for ambulance provider fees based on projected revenue
- Medicaid Low-Income
- Addition of more than $188.6 million based on projected utilization
- Addition of more than $21.2 million for Centers for Medicare and Medicaid Services requirement that the state provide 12 months of continuous eligibility for children under the age of 19 in Medicaid effective January 1, 2024
- Language instructing the Department to replace more than $47.7 million in state general funds with hospital provider fees
- PeachCare for Kids
- Reduction of more than $1.2 million in funds based on projected utilization
- Addition of $1,577,238 for Centers for Medicare and Medicaid Services requirement that the state provide 12 months of continuous eligibility for children under the age of 19 in Medicaid effective January 1, 2024
- State Health Benefit Plan
- Reduction of $6.2 million for interim one-time funding for a $3 per prescription dispensing fee for independent pharmacists awaiting the outcome of a SHBP prescription Benefit Manager study
- Language instructing:
- Recognition of an increase in formula funds ($177,130,676) in the Department of Education, Department of Early Care and Learning, and Georgia Military College to reflect an increase in the employer healthcare contribution per-member per-month rate for certified school employees and lead and assistant teachers to $1,885 effective July 1, 2025
- Language instructing the Department to increase the employer health care contribution per-member per-month for non-certified school employees to match the per-member per-month for certified school employees effective July 1, 2025 to maintain the financial stability of the plan
- Georgia Board of Healthcare Workforce - Graduate Medical Education
- $1.508,629 is added for 75 new residency slots in primary care medicine
- $50,000 reduction for the on-time start-up funds for the development of a Pediatric Rural Training Track
- $750,000 reduction o one-time start-up funds for rural OB/GYN service expansion
- Department of Education
- Agricultural Education
- Reduction of $95,411 to reflect updated counts of extended dat/year teachers
- Georgia Network for Educational and Therapeutic Support (GNETS)
- $1.8 million plus reduction in formula earnings based on enrollment and training and experience
- Addition of $330,000 in formula funds to reflect an increase in the health insurance employer contribution per-member per-month rate for certified school employees to $1,885 effective July 1, 2025
- Non-Quality Basic Education Formula Grants
- Removal of $362,000 in one-time grant funds for CPR training and equipment for student health and safety
- Addition of $5,918,900 in formula funds for sparsity grants based on enrollment data
- $543,000 addition for custodian supplement grants
- Reduction of $43,186 in formula funds for residential treatment facilities based on attendance
- Pupil Transportation
- Addition of more than $10.3 million for pupil transportation formula grants to reflect updated bus counts and operating expenses
- Quality Basic Education Equalization
- Reduction of more than $112.9 million in formula earnings
- Quality Basic Education Local Five Mill Share
- Reduction of more than $115.8 million to adjust funds for the Local Five Mill Share
- Quality Basic Education Program
- $305.9 million added for enrollment growth and training and experience
- Reduction of $605,051 for differentiated pay for newly certified math and science teachers
- Addition of more than $4.1 million for State Commission Charter School supplement
- Reduction of more than $1.8 million for the Completion Special Schools Supplement
- Addition of $313,627 for charter system grant
- Addition of $48,477 for local charter school grant
- Addition of more than $172.6 million for an increase in health insurance employer contribution per-member per-month rate for certified school employees to $1,885 effective July 1, 20256
- $872,333 added to fully fund school psychologist ratio at 1:2,420 for all QBE student categories pursuant to HB 283 (2013 Session)
- School Safety Grants (no change)
- Technology/Career Education
- Addition of $383,444 for 2 full time and 2 part-time positions and operating costs to sustain Great Promise Partnership operations as a part of work-based learning programs for at-risk students at the Department of Education
- $1,250,000 added to establish a high-demand equipment grant program for new and expanding career and technical education labs that support instruction for high-demand careers as identified by the State Workforce Board
- $18,951 added to reflect updated count of extended day/year teachers
- Department of Human Services
- Out-of-School Care Services (no changes)
- Child Abuse and Neglect Prevention
- Reduction of $93,233 to reflect FY 2024 collections of marriage and divorce filing fees pursuant to HB 511 (2021 session)
- Child Support Services
- Addition of $60,899 to increase funds to expand participation in the Child Support Lien Network to include real property and lump sum payment matching services
- Child Welfare Services
- Addition of more than $1..7 million for CASA to replace federal funds deemed ineligible by the Administration for Children and Families
- Elimination of $1.5 million in matching funds for the wraparound services pilot due to the denial of federal funds by the Administration of Children and Families
- Elder Community Living Services
- Reduction of $225,000 in funds with a transfer of brain health awareness campaign funding to the Department of Public Health to match agency budgets with existing contracts
- Elder Support Services (no changes)
- Out-of-Home Care (no changes except the FMAP percentage)
- Refugee Assistance (no changes)
- Residential Child Care Licensing
- Language instructing the Department to utilize existing funds of $46,550 to address new licensure and regulation and responsibilities due to the creation of two new Child Caring Institution types in SB 377 (2024 Session) and HB 1201 (2024 Session)
- Safe Harbor for Sexually Exploited Children Fund Commission
- Reduction of $120,110 to reflect FY 2024 collections of financial penalties for sex trafficking and sexual offenses pursuant to O.C.G.A. 15-21-208 and adult entertainment establishment assessments pursuant to O.C.G.A. 15-21-209
- Department of Public Health
- Adolescent and Adult Health Promotion
- Transfer of $100,000 to support lupus research, data collection, awareness, and education from the Department of Community Health to the Department
- Emergency Preparedness/Trauma System Improvement
- $225,000 transfer of brain health awareness campaign funding from the Department of Human Services to the Department to match agency budgets with existing contracts
- Infant and Child Essential Health Treatment Services
- Addition of $437,000 for the cost of mailing low THC Oil Patient Registry cards pursuant to SB 495 (2024 Session)
- Addition of $2,980,000 in funds to expand the pilot to provide home visiting in at-risk and underserved rural communities during pregnancy and early childhood to improve birth outcomes, reduce preterm deliveries, and decrease infant and maternal mortality
- $778,239 added to existing funds of $97,701 for a cardiac obstetric program to increase access to maternal fetal medicine
- Infant and Child Health Promotion
- Language instructing the Department to utilize existing funds of $1,007,109 for newborn screening to include one additional disorder that has been approved by the Georgia Newborn Screening Advisory Committee
- Georgia Trauma Care Network Commission
- Addition of $1,041,180 to reflect FY 2024 drivers license reinstatement fee collections
- Elimination of more than $2 million for SB 515 which did not pass during 2024 but was funded
In terms of bond funds for FY 2026, below are a few which are included:
- More than $146 million is included for the Department of Education Capital Outlay Program for local school construction statewide
- $20 million is included for the Department of Education to purchase school buses statewide
- $7,345,070 is included for the Department of Education to purchase vocational and agricultural education equipment statewide
- University System has several bond projects included
- More than $82 million is proposed for the construction and additional design of an 80-bed facility expansion for Macon-Bibb County for the Department of Juvenile Justice
- Georgia Building Authority is slated to receive more than $44.4 million for the construction and equipment to complete the renovation of the Agriculture Building, Atlanta, Fulton County
The complete budget proposals can be found here. The House and Senate Appropriations Committees will meet jointly next week to hear testimony on the proposals. The schedule for the hearings can be found here.
New Legislation
The following new legislation of interest has been introduced in the House:
The following new legislation of interest has been introduced in the Senate:
What’s Next
The General Assembly is in adjournment the week of January 20-24, 2025 to allow for Joint Appropriations Committee hearings on the Amended FY 2025 and FY 2026 Budgets.
