(The Center Square) – Georgia Gov. Brian Kemp proposed another tax rebate, a $2,000 pay supplement for state employees and a new need-based college scholarship in his final State of the State address.
The $1 billion tax cut pitched mirrors one from 2025 that gave single filers $250 and married filers $500.
The governor said his budget also includes reducing the state’s flat income tax rate to 4.99%, three years ahead of schedule.
“The reason that we’ve been able to do this and do it three years ahead of schedule is because of our fiscal discipline,” Kemp said. “Even with the rebate and tax cuts that my office will propose this legislative session, our state’s rainy day fund and strategic reserves will stand at over $10 billion.”
All state employees, including teachers and public safety officers, Kemp said.
“Our state employees have done an incredible job in unprecedented times and are one of the driving forces behind Georgia’s success,” he said.
The governor’s amended budget proposal for the fiscal year includes $325 million for the state’s first need-based scholarship.
“The Dream Scholarship will build on the incredible unmatched legacy of the Hope Scholarship and leave no stone unturned when it comes to student achievement in our state,” Kemp said.
The Hope Scholarship is funded with proceeds from the Georgia Lottery.
Kemp did not mention transportation proposals he discussed at the Georgia Chamber of Commerce’s annual Eggs and Issues breakfast.
One of his most significant asks is for $1.8 billion to build new north and south express lanes along a stretch of I-75 in Henry County. Because of the high volume, between 45% to 60% of drivers can’t get into the current express lanes, Kemp said.
“Nearly 200,000 vehicles a day travel this major artery that connects Georgians with key business hubs in much of our state,” the governor said in remarks provided to the media. “A quarter of those vehicles are trucks hauling goods – more than most major highways. That’s a sign of a strong and active economy… but without enough roadway capacity, it creates bottlenecks and slowdowns.”
Another $200 million would go toward improvements on Highway 316, commonly known as University Highway, as it runs from Atlanta to the University of Georgia in Athens. The governor is also asking for another $250 million for local road projects.
The governor wants $50 million for a new Homelessness Response Grant.
“And just like the other initiatives we’ve launched over the years, the Homelessness Response Grant isn’t a handout program with limited impact and no mechanism for improving someone’s conditions,” Kemp said. “It is carefully designed to help those experiencing homelessness move to greater stability and economic mobility.”
The grant requires private, nonprofit or public matching funds.
Kemp will meet with the House and Senate Appropriation Committees on Tuesday to discuss his amended fiscal year 2026 and fiscal year 2027 budgets.
