Georgia's fiscal landscape is proving to be robust despite a slowdown in tax revenue growth. Governor Brian Kemp and state lawmakers find themselves sitting on a budget surplus, providing ample opportunity for additional spending as they prepare for the 2024 legislative session. As noted by FOX 5 Atlanta, Kemp, who has the final say on state spending limits, has maintained a conservative revenue estimate that now signals a multi-billion dollar surplus.
Following the years of surplus, Georgia boasts an $11 billion cash reserve from the last three fiscal years, with a separate $5.4 billion rainy day fund intact. With such a financial cushion, this year's session, commencing Monday, could usher in salary increases for public sector workers and educators, bolster health and education spending, and possibly cut taxes further. In anticipation of the surplus usage, Matt Hatchett, Chairman of the House Appropriations Committee, assured, "Things have softened, but I think we’re still in a good position" in a statement obtained by FOX 5 Atlanta.
Kemp, who has not promised a state employee pay raise yet, did introduce $1,000 bonuses for state personnel across various departments before the holiday season, spending an estimated $330 million. He hinted at "more good news coming in the weeks and months ahead," further raising expectations. Legislative budget writers are now focusing on increasing compensation for state jobs with high attrition rates, according to reports by FOX 5 Atlanta. This follows a state workforce report which highlighted an employee turnover of 21% in full-time state positions during the last fiscal year, a noticeable improvement from the year prior.
Reimbursement rates for healthcare and mental health contractors are also slated for an increase, recognizing that these providers require more funds to pay their staff adequately. "We recognize the significance of fair and sustainable rates to ensure the continuity and quality of community-based services," Kaleb McMichen, spokesperson for the Department of Behavioral Health and Developmental Disabilities, shared with U.S. News.
The state is poised to accommodate a $1.1 billion dip in tax revenue due to an acceleration in planned income tax cuts spearheaded by Kemp and Republican leaders, reducing the rate to a flat 5.39% starting this year. A move lauded by Kemp, involving a possible extension of a rebate that reduced property tax bills by about $500, spelled out a $950 million spending last year, a move Hatchett and Tillery reportedly support.
