GEORGIA – GBPI Reacts to New Laws that Take Effect January 1st.
School Vouchers
At GBPI we believe that all students in Georgia should be afforded access to high-quality education. Due to the passage of SB 233, in the 2025-2026 school year K-12 public school funding will withstand a decrease of an estimated $144 million (a spending cap equal to 1% of the funding formula for public schools) with the implementation of the school voucher program, Georgia Promise Scholarship. Pressure to raise the spending cap and increase the number of students who qualify for the scholarship could grow based on the Georgia Education Savings Authority’s recent interpretation of the new law. That recent interpretation would mean that students who live in a school zone with a bottom 25% school would be eligible for the voucher whereas the original intent was that only students attending the bottom 25% school would be eligible. It is critical that state lawmakers defend the 1% spending cap and ensure that only students who attend a bottom 25% school have access to the Georgia Promise Scholarship.
The high number of students in poverty in SB 233-eligible schools illustrates the need for more equitable state investment in public education, not a private school discount. Georgia students deserve the state’s full financial investment. State lawmakers can ensure this by fully investing in K-12 education through the Quality Basic Education (QBE) funding formula, enacting an opportunity weight within QBE and by firmly committing to the provisions in SB 233 that limit the scope of the Georgia Promise Scholarship, to prevent financial and eligibility expansion that would divert more resources from K-12 education.
Constitutional Amendment Related to Property
The constitutional Amendment that appeared as the first question on the general election ballot in Georgia was supported by 62.92% of those voting in Georgia and passed on November 4, 2024. This amendment to the state constitution will limit taxed home values by ensuring that property tax increases are capped at the rate of inflation.
As an example, if inflation is 1%, the max uptick in a home’s assessed value would be 1%. This kind of permanent change to tax code may harm local public schools who use property taxes to pay for teacher salaries and things like construction and new school buses. On the plus side, this constitutional amendment might help some individuals. For example, taxes on homes have risen so rapidly in recent years that those on fixed incomes may not have been able to keep up.
We acknowledge that property taxes are a significant burden on Georgians. However, what Georgia needs is a tax system that is equitable in a big-picture way, and includes revenue streams that produce dependable revenue, while ensuring that the wealthy pay their fair share for things like public schools. There are many other steps we could take to improve our tax system that benefits ALL Georgians and does not put the burden to pay the most on those who have the least.
The Georgia constitution is not the place to do that. Changes to our constitution are permanent and extremely hard to undo. GBPI did not support this constitutional amendment.
To learn more, go to gbpi.org “Reimagining Revenue” and “How Does Georgia Fund Schools?”.
Measures affecting government transparency and the budget process
GBPI believes that government transparency and accountability require that information be made available to the public, and that shining more daylight on government activities is a net good for Georgians. To that end, we are generally concerned about measures that do the opposite, like those found in SB 341 that make communications between General Assembly staff and the Office of Legislative Counsel privileged. GBPI understands the need for state employees to be able to seek legal advice on behalf of the state but worries that this policy could be used too broadly, and to shield government matters that should be available for public inspection. As SB 341 takes effect, we caution the state to ensure that this SB 341 measure is applied narrowly.
GBPI also believes that the passing of a just and equitable state budget is a complex and arduous process and that legislators deserve sufficient time to deliberate, debate, and determine what is in the best interests of their constituents. As a result, GBPI celebrates that the provisions found in SB 366 are taking effect. These provisions make modest improvements to both how the general appropriations bill is considered and enhance transparency related to tax expenditures. SB 366 grants a full 24 hours for legislators to digest budget changes after the budget has passed the Senate Appropriations Committee and before any action is taken on the appropriations bill. It also mandates that annual cost estimates be presented along with appropriations legislation, that improvements be made to the process of assessing the impact of current and proposed tax provisions, and that the House Ways and Means Committee and Senate Finance Committee consider at least 12 economic analyses each year.
