Gov. Kemp signs budget, freezes more than $300M in new spending
ATLANTA, Ga. (Atlanta News First) — Gov. Brian Kemp signed Georgia’s new state budget, House Bill 974, at the Capitol on Tuesday. He announced he ordered state agencies to withhold more than $300 million in proposed new spending — a move his office described as “disregards” — as the state absorbs the cost of recently passed tax cuts.
Richard Dunn, director of the Governor’s Office of Planning and Budget, clarified that the tax cuts created a revenue reduction of $1.3 billion for the coming fiscal year and warned the picture could worsen if the economy slows.
“With the tax cuts, the state must now address a reduction in revenue... and that’s assuming we don’t have an economic downturn,” Kemp said.
Kemp argued the state could hold back new spending without rolling back existing services. He said the budget still maintained funding for priorities, including schools, the 988 mental health crisis line, public safety and storm recovery.
“Georgia will not follow in the steps of Washington, D.C.,” Kemp said.
Democrats criticized the move, arguing that the tax cut headlines obscure the tradeoffs and that Georgians will feel the impact through reduced services.
“The governor had to take a red pen and strike through so many things people depend on,” said state Sen. RaShaun Kemp, a Democrat. “Headlines sound great, but what is underneath that is that you’re going to lose the services that you depend on.”
One item affected is funding to run SUN Bucks, a summer meals program. Lawmakers estimated it would cost about $2 million to administer and unlock $143 million in federal food aid, but the governor’s office said the Georgia Department of Human Services estimated the cost closer to $7 million.
“These kids are our future, and they deserve a leg to stand on,” said Rebecca Nachtigall, a cafeteria worker and a mother of six who advocated for the House and Senate to keep the funding in the initial version of the bill.
Kemp also warned the state may still need to lean on savings to close the budget gap and said he did not want to leave the next governor in a difficult fiscal position.
“I wasn’t going to leave our next governor, or the General Assembly, in that fiscal position,” Kemp said.
Lawmakers could decide if any of the withheld spending returns in the amended budget process next year.
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