Despite declining state tax revenues, Georgia Governor Brian Kemp is moving forward with both increasing spending and cutting taxes by utilizing the state’s surplus funds. With a budget of $36.1 billion for the upcoming year, Kemp plans to boost pay for public school teachers and state employees, while also allocating more funds towards education, health care, and mental health. Including federal money and other sources, the state will spend a total of $66.8 billion. With $5.4 billion in the rainy day fund and $10.7 billion in surplus cash, Kemp aims to maintain higher spending levels while also reducing the state income tax rate.
To fulfill his promise of reducing the state income tax rate while maintaining higher spending levels, Governor Kemp emphasized the importance of holding onto the surplus funds. Public school teachers are set to receive a $2,500 raise starting July 1, in addition to a $1,000 bonus issued in December. Prekindergarten teachers will also see a $2,500 raise, while state and university employees are slated for a 4% pay increase, with the typical state employee making $50,400 annually. Law enforcement officers and child welfare workers will receive additional raises, while the state will allocate more funds towards school buses, school security, and healthcare providers.
Despite the increase in spending, next year’s budget will actually see a decrease of $1.8 billion from the current budget. This reduction is due to Governor Kemp and lawmakers supplementing the budget with billions in one-time cash, including funds for a new legislative office building and renovations to the Georgia Capitol. The state plans to pay for new buildings and equipment in the upcoming budget with cash instead of borrowing, relying on the surplus funds to cover these expenses.
Overall, Governor Brian Kemp is navigating the delicate balance of increasing spending on key areas such as education, healthcare, and public safety, while also prioritizing tax cuts for Georgia residents. With a significant surplus at their disposal, state lawmakers are utilizing these funds to fulfill promises of raises for teachers and state employees, as well as enhance funding for essential services. As Georgia’s economy continues to recover from the impact of the pandemic, Kemp’s budget plan aims to stimulate growth and support the well-being of residents across the state.
