THE GOVERNOR’S BUDGET REPORT – Amended Fiscal Year 2023 and Fiscal Year 2024

STATE OF GEORGIA
OFFICE OF THE GOVERNOR
ATLANTA 30334-0900

Brian P. Kemp GOVERNOR

The Georgia State Senate

The Honorable Burt Jones, Lieutenant Governor

The Georgia House of Representatives

The Honorable Jon Burns, Speaker

The Citizens and Families of Georgia

Dear Lieutenant Governor, Mr. Speaker, Members of the General Assembly, and Fellow Georgians:

FY 2022 was another record-breaking year for the Georgia economy. As the number one state in which to do business for nine years in a row, Georgia announced a record number of jobs and investment statewide, with our ports moving more cargo in and out of the state than ever before. Despite national economic headwinds caused by 40-year high inflation, Georgia’s economy remains a leader nationwide. As we look ahead to the upcoming fiscal year, we expect the state’s economy to be well positioned to withstand any further national economic slowing. As such, the Amended FY 2023 and FY 2024 budgets I am presenting herein ensure that we continue to meet our financial obligations as a state while also investing in the education, health, and safety of our citizens to maintain our position as the best state in the county to live, work, and raise our families.

Georgia’s record-breaking FY 2022 coupled with our conservative fiscal management enabled us to continue building our Revenue Shortfall Reserve (RSR) to an all-time high of $5.2 billion. Georgia also maintained an undesignated reserve in addition to the RSR. In FY 2022, as a result of our strong economic performance, I authorized the use of that reserve to return $1 billion dollars back to taxpayers as those funds belong to the taxpayer and not the government. As FY 2022 also brought higher-than-expected revenues, I am again recommending the use of $1 billion from the undesignated reserve to provide an additional refund, ranging from $250 for single filers to $500 for joint filers, to every eligible taxpayer in Georgia filing their taxes this spring. I also am recommending funds for a one-time Homeowner Tax Relief Grants (HTRG) program which will provide property tax relief for every eligible homeowner in calendar year 2023. Through this plan, homeowners will receive a $20,000 exemption for their assessed home value on their 2023 property tax bill, resulting in an average savings of $500. These actions will put real money back in the pockets of hardworking Georgians facing unforeseen jumps in property values and record-high inflation.

Georgia’s economy relies on the strength of its workforce. A well-educated, highly trained citizenry is a must for the businesses looking to expand to our state. Therefore, we must continue to invest in our education system at both the K-12 and higher education levels to build the workforce a growing state needs and provide our citizens the knowledge to achieve high-quality, fulfilling employment. As the parent of a teacher, I know that we must attract, retain, and equip our highest quality educators with the tools needed to instill these critical, lifelong skills in our future generations. Therefore, this budget includes an additional $745 million in Amended FY 2023 and more than $1.1 billion in FY 2024 for K-12 education, fully funding the Quality Basic Education program that supports our local schools and educators. This additional funding includes $303 million to adjust the state base salary schedule to increase salaries for certified personnel by $2,000 in FY 2024. The Amended budget also includes $15 million in grant funds to encourage paraprofessional to pursue their teaching certification to help further build our talent pool of skilled, dedicated educators. These budgets also prioritize safety for both our students and educators by providing $50,000 school safety grants to every K-12 school in the state to invest in their security needs, totaling $115 million in Amended FY 2023. FY 2024 will then increase funding for school counselors by $26.9 million to help address our students’ emotional and mental well-being in school. Finally, my Amended budget includes $25 million for learning loss grants to allow schools to tailor programs to fit the unique needs of their student body in catching up after the disruptions caused by COVID-19.

To continue reading the Governor’s Budget Report, please visit here.