This blog has been co-authored by Leah Chan, Ashley Young and Daniel Kanso, PhD
Last week marked Crossover Day in Georgia, the deadline by which a bill must traditionally pass out of its originating legislative chamber to be considered by the other chamber before the end of the session and become law. One exception to this rule is the Fiscal Year (FY) 2027 budget, which passed through the House this week. Legislation can continue to be debated, amended and substituted until the General Assembly adjourns Sine Die on April 2nd.
Highlights of the House-Passed $38.5 Billion Budget for FY 2027 (HB 974)
Education:
- $129.4 million less than Gov. Kemp’s proposed increase for State Health Benefit Plan (SHBP) costs for educators and school employees. Instead of increasing from $1,885 per month to $2,028, the employer share of SHBP costs would increase to $1,935. This change would also reduce the amount paid by local schools from an estimated $115.4 million to $40.3 million.
- $71.8 million less than Gov. Kemp’s proposed budget for the Georgia Promise voucher program, based on projected enrollment of eligible students.
- $41.1 million added for student transportation formula grants ($2.6 million above Gov. Kemp’s recommendation) to reflect updated bus counts and operations for a total of $405 million. Georgia’s schools will spend more than $1.5 billion on total student transportation costs next year, with most funds coming from the local level.
- $40.8 million added to establish the implementation of literacy coaches in elementary schools, related professional development for teachers and administrators, literacy initiative coordination through the Governor’s Office of Student Achievement, along with one-time grants to school systems for vision and auditory screening equipment. $18.5 million in existing funds are also repurposed for RESA-based literacy coaches.
- $15.3 million less that eliminates the pilot program that could serve as a basis to establish a dedicated “opportunity weight” for students living in poverty.
- $13.1 million added to Gov. Kemp’s budget recommendation for Pre-K (and $30.8 million above the current budget). This includes $9.7 million to expand the extended day program to the Pre-K priority group, which includes children experiencing homelessness and those who are in foster care. It also includes $4 million to provide five days leave for Pre-K lead and assistant teachers.
- $9.7 million in federal funds reallocated to expand the Child and Parent Services (CAPS) program to an additional 1,288 children.
- $2 million added to the Department of Education and the Department of Human Services to implement a new summer nutrition program called Sun Bucks that will allow Georgia to draw down additional federal resources to provide meals and snacks to students.
Health:
- $45.3 million added to increase Medicaid provider and facilities reimbursement and payment rates.
- $7 million added ($5 million above Gov. Kemp’s recommendation) to expand Georgia’s home visiting program. Through this program, no cost, personalized care is provided during and after pregnancy and to infants up to 1 year old.[1]
- $4.6 million added ($2.3M above the Gov. Kemp’s recommendation) to expand home- and community-based services for individuals with intellectual and developmental disabilities.[2] The budget also includes $513,558 for waiver staffing.
- $3 million added for rural hospital stabilization grants. [3]
- $2 million added to develop and implement a solvency evaluation process for rural hospitals. Starting in 2028, rural Georgia hospitals are estimated to lose about $626 million in supplemental federal funding due to a new federal law.[4] It is critical for the state to proactively address funding gaps that may force hospitals to cut services or close their doors
Economic Security:
- $46.4 million added for the Supplemental Nutrition Assistance Program (SNAP) to make up for a loss of administrative funding at the federal level caused by the passage of last year’s H.R. 1.
- $11 million added to reduce the SNAP program error rate by hiring 319 additional staff members to the Department of Family & Children Services (DFCS). The state’s error rate will determine the state’s level of cost sharing for program costs in future years.
Legislation we’re tracking this session
In addition to the FY 2027 budget, GBPI continues to track several bills that bring us closer or further away from a more equitable Georgia where everyone can prosper. The following bills remain under consideration:
Tax and Budget
House Bill (HB) 880 would threaten services such as health care and education by reducing income tax revenues by one-third ($6.4 billion annually when fully implemented). Over the next decade, it would lower the top personal and corporate income tax rate to 3.99%, increase the standard deduction and dependent exemption by 50% and increase the retirement exclusion by $5,000 per person.[5] Overall, about 63% of these benefits would go to those with incomes in the top 20% and out-of-state corporations. GBPI opposes this bill.
HB 1000 creates a one-time non-refundable income tax rebate of up to $250 for single filers or up to $500 for married couples filing jointly. The legislation is estimated to cost up to $1.17 billion, which will be drawn from Georgia’s undesignated surplus reserves. GBPI is monitoring this bill.
HB 1001 would reduce the state’s flat personal and corporate income tax rate to 4.99% at an estimated cost of $797 million over a full year. This is final step of implementing the flat tax legislation approved in 2022. Approximately 74% of these benefits ($593 million) would go to the 20% of Georgia households that earn the most and corporations, while the remaining 80% of Georgians would see average savings of less than $122 in per year ($204 million total). GBPI opposes this bill.
HB 1116 would cap year-over-year property tax revenue growth for local governments at three percent or the rate of inflation. It also includes provisions intended to allow local governments to fund programs and services using sales taxes. Replacing property taxes with sales taxes would raise the cost of living and would do little to address broader affordability concerns for most Georgians, while likely increasing the overall amount of taxes paid by low- and middle-income families.[6] GBPI opposes this bill.
House Bill 1199 is the annual income tax conformity bill, which updates the state personal and corporate tax code to match certain provisions of the federal tax code that lawmakers agree to jointly implement. Senate lawmakers modified the House-passed version to adopt conformity with the federal government’s new temporary exemption (2025-28) for some tipped and overtime income, while failing to conform with recent changes the federal Low Income Housing Tax Credit (LIHTC). GBPI opposes this bill as passed by the Senate.
Senate Bill (SB) 382 removes the option for local governments and school districts to opt out of the statewide property tax exemption that passed into law in 2024. When given the option, 68% of school districts and 30% of counties opted out, citing funding concerns.[7] These school districts and local governments have already made clear they cannot afford the revenue losses that would accompany a cap on taxable home values. GBPI opposes this bill.
SB 410 would stop the state from issuing new permits that allow special sales tax exemptions for data centers. The legislation also includes a measure intended to prevent consumers from subsidizing power costs for data centers through higher electricity bills.[8] GBPI supports this bill but encourages lawmakers to strengthen it by accelerating the rollback of tax breaks for data centers and to ensure consumers do not subsidize their power costs.
SB 476 (also passed as HB 134) is one of two bills in Lt. Governor Jones’ partial income tax elimination package. It cuts the corporate income tax rate from 5.19% to 4.99% and increases the state standard deduction to $50,000 for individuals and to $100,000 for couples. The measure partially offsets its $6.8 billion cost by raising up to $1.8 billion by 2031 through eliminating a series of income and sales tax breaks. Even with these measures included, SB 476 would create an estimated annual deficit of more than $5 billion. GBPI opposes this bill.
SB 477 (also passed as HB 463) is the second part of Lt. Governor Jones’ partial income tax elimination package. It cuts Georgia’s flat personal income tax rate from 5.19% to 3.99% over the next two years. If passed alongside SB 476, this package would reduce state revenues by a total of $9.5 billion and Georgia could see an annual budget deficit greater than $7.7 billion. This would create the largest budget deficit in modern state history to primarily benefit the wealthiest 20% of Georgians. GBPI opposes this bill.
Education
SB 445 expands eligibility for the Georgia Promise Scholarship private school voucher program that siphons money away from public schools. GBPI opposes this bill.
HB 1413 accompanies the newly endowed DREAMS Scholarship. It would provide need-based financial aid with scholarships of up to $3,000 per year for students at two-year and four-year colleges. The provision that would have doubled the minimum threshold for Lottery reserve funds was removed before the bill passed the House. GBPI supports this bill.
Health
HB 291 establishes a state certification process for Community Health Workers, a critical sector of the public health and health care workforce. GBPI supports this bill.
HB 1096 allows a subset of county board of health employees to retain annual and sick leave when they move to a new position with the Department of Public Health. GBPI supports this bill.
HB 1192 requires the Departments of Community Health and Human Services to submit annual reports on their finances, including opportunities for operational efficiency. The bill also prohibits the two Departments from commingling funds and mandates that state and federal funds be kept in separate accounts. GBPI is monitoring this bill.
HR 1522 establishes a House study committee to evaluate the Department of Community Health’s current operations, funding and staffing with a focus on Medicaid. GBPI supports this resolution.
HB 1238 authorizes Department of Community Health to submit a waiver for federal approval that would qualify the care provided by caregivers of Medicaid-enrolled children and youth with complex behavioral health needs as reimbursable. This waiver would likely also expand health care coverage to some of their low-income caregivers by making them eligible for the Pathways to Coverage program. GBPI supports this bill.
SB 428 authorizes Department of Community Health to submit a waiver for federal approval that would provide home- and community-based services for adults with mental health issues at risk of crisis. GBPI supports this bill.
Economic Security
HB 947 would increase burdensome administrative processes and make it more difficult for SNAP recipients and applicants to verify their eligibility. These changes could worsen error rates, potentially leaving the state with higher cost sharing expenses while causing eligible Georgians to lose benefits. GBPI opposes this bill.
HB 1118 would grant an additional three weeks of paid parental leave to parents who just gave birth and are state or public school employees. GBPI supports this bill.
Endnotes
[1] Tice, C. (2025, September 17). DPH home visiting program [PowerPoint slides]. https://www.legis.ga.gov/api/document/docs/default-source/house-study-committee-document-library-page/2025/evaluating-public-health-funding/09-17/dph-home-visiting-program.pdf?sfvrsn=bf0a20cf_2
[2] Tanner, K. (2026, January 21). Department of Behavioral Health and Developmental Disabilities budget overview [Testimony for Joint Appropriations Committee starting at 18 minutes]. https://www.youtube.com/watch?v=PaNTtq8ks94
[3] Hart, A. (2026, January 29). City shuts off rural Georgia hospital’s water for nonpayment locals say. The Atlanta Journal-Constitution. https://www.ajc.com/news/2026/01/city-shuts-off-rural-georgia-hospitals-water-for-nonpayment-locals-say/
[4] Georgia Health Initiative (2025, November). Impact of federal policy changes to Georgia’s health care landscape. https://georgiahealthinitiative.org/wp-content/uploads/2025/11/Impact-of-Federal-Policy-Changes-to-Georgias-Health-Care-Landscape_Report_November_2025.pdf
[5] Kanso, D. (2025, March 4). Racing to the bottom: Sweeping income tax proposals threaten funding for schools and health care, alternatives offer tax cuts with balanced budget. Georgia Budget and Policy Institute. https://gbpi.org/racing-to-the-bottom/?_gl=1*mbb1je*_up*MQ..*_ga*MTI3MDUyMjMwMS4xNzczMDg2NDU1*_ga_ZWZC5HZ1YJ*czE3NzMwODY0NTUkbzEkZzAkdDE3NzMwODY0NTUkajYwJGwwJGgw
[6] Kanso, D. and A. Young. (2026, March 6). Passing the buck: Property taxes fund Georgia’s schools and local services. Georgia Budget and Policy Institute. https://gbpi.org/passing-the-buck-property-taxes-fund-georgias-schools-and-local-services/?_gl=1*1ds964r*_up*MQ..*_ga*MTA5OTMwNTAzMS4xNzczMDg2NDM0*_ga_ZWZC5HZ1YJ*czE3NzMwODY0MzQkbzEkZzAkdDE3NzMwODY0MzQkajYwJGwwJGgw
[7] Yushkov, A. and J. Johns. (2025, April 17). Localities opt out of Georgia’s new homestead tax exemption. The Tax Foundation. https://taxfoundation.org/blog/georgia-property-tax-reform/
[8] Evans, B. (2026, March 10). Georgia bet big on data centers. Now comes the backlash. State Affairs. https://pro.stateaffairs.com/ga/technology/georgia-data-centers-energy-costs
