(The Center Square) — Georgia has routinely generated record surpluses, and the governor’s budget proposals are expected to maintain its undesignated reserves of $11 billion, a new analysis revealed.
According to a budget analysis from the Georgia Budget and Policy Institute, the surpluses have led to an annual addition to reserve accounts of between 15% and 23% of General Fund expenditures.
Republican Gov. Brian Kemp has proposed a nearly $36.1 billion fiscal 2025 budget, a spending plan higher than the initial $32.4 billion fiscal 2024 budget lawmakers passed but below his $37.5 amended fiscal 2024 plan.
“As Georgia stands at the crossroads of unprecedented surpluses and unallocated resources, it’s important to recognize both the progress made and the need for the state to do more,” GBPI Fiscal Analyst Danny Kanso said in a statement. “Governor Kemp’s budget proposals offer a starting point for the appropriations process, and our hope is that leaders in the General Assembly seize this historic opportunity to address long-standing deficiencies, foster equitable prosperity, and enact forward-looking investments in Georgia’s future.”
While the group lauded aspects of the governor’s budget, such as cost-of-living salary adjustments for state employees and certified teachers, it questioned how much accelerating the state’s flat tax would impact most Georgians. It also called for the “responsible allocation” of “undesignated reserves” for “generational investments” in childcare and the modernization of school bus fleets while also “prioritizing one-time investments for long-term benefits and equitable returns.”
Spokespeople for Kemp did not respond to a request for comment on the GBPI analysis.
“Our founders didn’t believe the states should always look to the federal government for answers,” Kemp said during his recent State of the State address. “In Georgia, we balance our budget and spend less than we take in.”
According to recent statements, Kemp and policymakers could also consider increasing state spending on transportation.
