Everything You Need to Know About Georgia's Proposed Budget

MoneyPhoto byAlexander Mils

Each year brings with it an entirely new budgeting process, and 2023 in Georgia is no different. Once again, Governor Kemp has laid out a proposed budget complete with new objectives, spending, and focus areas. 2023's budget - like each of those before it - is the largest in the state's history.

We've combed through this year's proposal so that you don't have to. Below, we'll summarize the biggest changes, new measures, and new spending, and how they might affect you or your family this coming year.

Taxes

One of the first items of concern in any budget is the tax recommendations: whether families will see any rebates or exemptions, or if the state is earning enough in taxes to meet its obligations, and whether or not the state's financial footing enables new spending. Owing to the Peach State's continued growth, particularly in the business sector, this year's budget has some good news for families and taxpayers.

The state currently has over $5 billion in reserves for years where a budget shortfall could occur, a stronger position than many others in the nation. The governor's office has proposed releasing $1 billion of this in the form of additional tax refunds of $250 for single filers and $500 for families - a duplicate of the prior year's proposal. The new budget also proposes a one-time exemption on up to $20,000 in assessed value for any homeowners in the state, a measure that the governor's office claims should result in an average savings of $500 per household.

Targeted Spending

The other major item in any budget proposal is the areas highlighted by the governor for special projects, funds, or spending. Georgia's 2023-2024 budget has several such areas.

A primary focus of the proposal set forth by Governor Kemp is education spending. The proposals for 2023 and 2024 contain a combined additional funding of more than $1.8 billion for K-12 education in the two years it covers. Of that spending, a little over $300 million is allocated for teacher salary increases, while another $15 million is set aside to incentivize paraprofessionals and other technical assistants in education to pursue degrees and teaching licenses.

For students, the budget sets aside an additional $61 million for adjustments to the HOPE scholarship program. The proposal states the purpose of this funding is to ensure that the HOPE recipients continue to have 100% of their in-state tuition covered by the program.

On non-education fronts, the proposed changes also include some workforce training and continued learning programs, particularly those tailored to the two major manufacturing facilities recently moved to the state by Rivian and Hyundai. $130 million is designated for what Governor Kemp recommends as "electric vehicle training facilities" to recruit and train a pipeline of workers for those plants and other related activities.

Lastly, on the healthcare front, the proposal suggests a few new measures. One - the ability to determine Medicaid eligibility for the state's residents - is left up to the federal government. Others are directly covered by proposed state spending. Of particular interest to Peach State residents may be a healthcare reinsurance program set up by the state in an effort to offset premium costs for its residents. That program will receive an additional $92 million in funding. The governor's office estimates the savings from the reinsurance program at $83 per month, per insurance premium.

Smaller items and adjustments are also proposed for public safety, transportation, and communication measures, but they pale in comparison to the top-line spending recommended in the areas we discussed above.

The proposal will now go to the Georgia Legislature for consideration, modification, and debate. If approved as-is, the budget would represent the largest education spending in recent history. Either way, Georgia appears to be in a more sound financial condition than many of its neighbors, holding at least several billion dollars in reserve even if all proposed spending increases are accepted and approved.

Those who would like to read the full proposal, as well as those for prior years, can find it through the Georgia Governor's Office of Planning and Budget here.