Governor Brian Kemp, surrounded by his family, gives remarks at his Inaugural Gala at State Farm Arena on Thursday night.

After four legislative days filled with celebration, the first week of the 2023 Legislative Session is complete. The Gold Dome was relatively empty on Friday, and from the few onlookers in attendance, it was clear that Thursday night’s inaugural festivities continued into the early morning hours for some.

Nevertheless, there was significant news released on Friday regarding the State’s finances. Governor Kemp first announced that State tax revenues were up 7.5% year-over-year for December 2022, a $224.9 million increase over December 2021. And the Governor quickly got to work sharing how he would like to spend those extra dollars. After teasing several funding plans over the last few days and weeks, Kemp released his full budget reports for legislative and public review. Appropriators will begin combing through the spending plans during next week’s budget hearings. Get prepared with the key details and links to the full budget reports in this #GoldDomeReport.

In this Report:

• Governor Releases Amended FY23 and FY24 Budget Proposals

• House, Senate Adopt Rules

• New Legislation

• What’s Next

Governor Releases Amended FY23 and FY24 Budget Proposals

After weeks of campaign promises and teases, Governor Kemp unveiled his complete proposals for the State’s Amended FY23 and FY24 budgets on Friday. The spending plans are over 6% larger than the original FY23 budget adopted last spring ($32.56bb in AFY23, $32.45bb in FY24 versus $30.20bb in the existing FY23 budget). The budget growth reflects record-breaking tax collections Georgia has experienced over the last two years.

But those extra billions go quick. Governor Kemp proposes that over $2.1 billion from the overflowing Revenue Shortfall Reserve (also known as the Rainy Day Fund) be refunded to taxpayers. These refunds would take the form of income tax rebates between $250 and $500 per taxpayer and Homeowner Property Tax Relief grants worth approximately $500 to the average property owner.

In FY24, Governor Kemp proposes that $566,966,153 be allocated to provide a $2,000 cost-of-living adjustment for state and Regents employees, Pre-K teachers and assistant teachers, and certified K-12 personnel.

Other notable discretionary spending increases in the budget proposals (which can be accessed in full here) include:

Amended FY23

• $155,700,000 in one-time grant funding for Department of Education:

  • $115,700,000 to fund school security grants in the amount of $50,000 per school,

  • $25,000,000 to support learning loss grants, and

  • $15,000,000 to support paraprofessionals with bachelor’s degrees seeking teaching certificates.

• $6,428,193 for the Department of Human Services for additional Medicaid caseworkers and a management consultant to ensure quality assurance during redeterminations at the expiration of the federal COVID-19 Public Health Emergency.

• $92,000,000 for the Department of Insurance for the state reinsurance program to reduce insurance premiums statewide.

• $129,375,000 for the Technical College System of Georgia for design and construction of new and existing Quick Start facilities to support the electric vehicle industry.

FY24

• For the Department of Behavioral Health and Developmental Disabilities:

  • $13,088,198 to expand behavioral health and substance abuse crisis capacity with three additional behavioral health crisis centers.

  • $10,178,507 to annualize 513 slots for the New Options Waiver (NOW) and Comprehensive Supports Waiver Program (COMP) for individuals with intellectual and developmental disabilities.

  • $4,199,684 for 250 additional slots for the New Options Waiver (NOW) and Comprehensive Supports Waiver Program (COMP) for individuals with intellectual and developmental disabilities.

  • $6,288,973 for additional mobile crisis teams to address increasing demand statewide.

• For the Department of Community Health:

  • $52,222,154 to implement the Georgia Pathways to Coverage program established by the Patients First Act (2019 Session) and increase health insurance access statewide.

  • $1,772,192 in the Georgia Board of Health Care Workforce for 102 new residency slots in primary care medicine.

  • $2,270,000 in the Georgia Board of Health Care Workforce for the creation and administration of loan repayment programs for mental health professionals, medical examiners, and nurse faculty.

  • $2,480,000 in the Georgia Board of Health Care Workforce to increase the number of physicians, advanced practice registered nurses, and nurses receiving loan repayments and to increase the loan repayment amount for physicians.

• For the Department of Education:

  • $26,933,036 to fully fund the 1-to-450 school counselor ratio for all categories of students pursuant to HB 283 (2013 Session).

  • $22,820,000 in bonds to replace 259 school buses.

• For the Department of Human Services:

  • $3,244,889 for 300 additional Medicaid eligibility caseworkers to process redetermination cases upon the expiration of the federal COVID-19 Public Health Emergency.

  • $3,375,000 in the Safe Harbor for Sexually Exploited Children Fund Commission to assist in the rehabilitation of children, youth, and adult victims of sexual trafficking.

• $92,000,000 for the Department of Insurance for the state reinsurance program to reduce insurance premiums statewide.

House, Senate Adopt Rules

Earlier this week, the House and Senate adopted its Rules for the 2023-2024 Biennium. The new House Rules can be found here. The Senate Rules were approved through SR 3, which amended the Senate Rules from last session, available here.

New Legislation

The following legislation of interest has been introduced in the House:

What’s Next

Joint Appropriation Committee hearings will begin on Tuesday, January 17, where legislators will dig through the Governor’s proposals for the Amended FY23 and FY24 budgets. The General Assembly will reconvene for Legislative Day 5 on Monday, January 23 at 10:00AM.