Georgia Budget Primer

As Georgia prepares to elect its next set of leaders, this year’s Budget Primer from GBPI offers an opportunity to reflect on where our state has been and where it could go.

Governor Brian Kemp leaves office having overseen a period characterized by conservative budgeting and consistent economic growth. During his tenure, Georgia maintained its AAA bond rating, spent billions on infrastructure and one-time rebates, expanded HOPE and created need-based financial aid opportunities and navigated the economic disruption of the COVID-19 pandemic. This helped position Georgia as a growing and competitive state.
Yet a budget that balances on paper does not tell the full story.

Georgia raised tremendous resources but failed to grow its investment in people. The state will spend less on people in FY 2027 than it did eight years ago (adjusted for inflation). Hundreds of thousands of Georgians can no longer afford health insurance and we still have not expanded Medicaid. Kemp unilaterally cut the budget this year, striking funding that would have gone to feed kids during the summer and to provide services for those in a domestic violence situation. Instead, the governor and General Assembly prioritized hundreds of millions in new tax breaks for the wealthy and large corporations.

The next governor will also inherit new fiscal challenges that emerged toward the end of Governor Kemp’s tenure. Federal policy changes are shifting substantial costs to states, including the largest cuts to SNAP in the program’s history. Georgia has already committed an additional $46.4 million in FY 2027 to replace lost federal SNAP administrative funding, and future state obligations for SNAP benefits could amount to more than a half billion dollars annually, depending on program performance measures. These looming costs underscore the importance of maintaining a sustainable revenue system and making strategic investments that strengthen, rather than weaken, Georgia’s capacity to meet future needs.

Over the past eight years, Georgia has consistently generated more revenue than it spent, resulting in historic surpluses and reserve balances. Yet state leaders used much of that excess revenue for one-time tax rebates, capital projects and permanent tax cuts. Too often, the state stopped short of making the long-term investments needed to address persistent challenges affecting families and communities across Georgia.

Despite years of budget growth, Georgia still maintains one of the highest uninsured rates in the nation. Child care remains out of reach for many working families. Public schools continue to shoulder increasing transportation and health insurance costs. Rural hospitals face ongoing financial strain that threatens access to care for entire communities. Deep disparities in economic opportunity persist across geography, race and income.
The question facing Georgia has never been whether we could afford to do more. The question has been what priorities we choose to fund.
This primer examines the choices made in the Fiscal Year 2027 budget, the final budget of the Kemp administration, and places them in the broader context of Georgia’s fiscal history. It highlights both meaningful progress and missed opportunities, providing the facts and analysis needed to inform the next chapter of leadership in our state.

This year, Kemp cut nearly as much from the budget as he had done in the previous seven years combined. Hundreds of millions in budget cuts withdrew many of the investments the General Assembly made in communities across Georgia, giving way to additional tax breaks for corporations and the wealthy.

For 15 years, GBPI advocated for need based aid. It was finally enacted this year. This win proves what we know to be true at GBPI as we continue advocating for the needs of ALL Georgians.
As Georgia looks ahead, policymakers will inherit a state with strong finances, substantial assets and significant challenges. The decisions they make will determine whether Georgia’s prosperity reaches every community and whether future generations inherit a state that invests boldly in its people.

At GBPI, we believe budgets are more than numbers. They are statements of values. We hope this primer helps illuminate the choices before us and inspires a vision of a Georgia where every person has the opportunity to thrive.