Sine Die 2026: Georgia Rejects Property Tax Caps and Adds Major Investments, Income Tax Package Threatens Outlook

This blog was co-authored by Daniel Kanso, PhD; Leah Chan and Ashley Young

Thursday, April 2, marked Sine Die in Georgia, the final day of the legislative session when both chambers of the state legislature must agree in order to send legislation to the governor’s desk. The 2026 legislative session marked Gov. Brian Kemp’s eighth and final session as governor. Now, Gov. Kemp has 40 days to sign or veto legislation, including the FY 2027 state budget (HB 974) ahead of the May 12 deadline.

Each session, lawmakers debate unique measures that bring us closer or further away from our mission at GBPI: a Georgia where everyone can thrive. While we secured major policy victories across tax issues, health care, education and economic security programs, our biggest wins this year reflect successes resulting from the many ways we advocate.

We advocate with a long-term lens. GBPI has been advocating for need-based financial aid for more than fifteen years. Governor Kemp, with support from the legislature through SB 556 and the Amended Fiscal Year (AFY) 2026 state budget, enacted the DREAMS Scholarship to increase access to higher education programs for more students with lower incomes. Children born in 2011, the year our first report on need-based aid came out, are now at an age to start thinking about college. These Georgia students can dream a little bigger with this need-based scholarship in place.

We advocate for immediate solutions to needs that Georgia families face. Last year, the federal reconciliation bill, H.R. 1, initiated the deepest cuts in history for the Supplemental Nutrition Assistance Program (SNAP). To keep funding level for this critical program when federal cuts begin this October, Georgia needed to immediately adjust the FY 2027 state budget. GBPI worked alongside our partners to help educate lawmakers , and it made a difference. $46.4 million has been appropriated to make up for the loss of administrative funding that helps Georgians keep food on the table, along with at least $6.9 million in new funding to reduce the state’s error rate that will determine cost sharing levels in future years.

We advocate to defend against future harm. Much of this year’s session was dominated by the House and Senate considering property tax measures that would have significantly harmed schools by cutting or capping all property tax revenues, which raise 71% of local tax revenues for schools. After a session full of research, events and advocacy, the main property tax bill that passed (SB 33) keeps schools and local budgets under local control. Critically, the legislation doesn’t include harmful caps on total property tax revenues or sales tax substitutes that were considered earlier in session.

These are a few of our biggest wins, but not all of them. The school voucher programs that siphon funding away from our public schools through the budget and tax credits will receive $11 million less overall than were allocated at the start of the year. Although Georgia continues to reject a nine-to-one federal match to close the coverage gap through Medicaid expansion, we also made strides in health care. The FY 2027 budget will fund more waiver slots for Georgians with intellectual and developmental disabilities, an expansion to Georgia’s maternal and infant home visiting program to 33 additional counties and allocates funding to plan for addressing rural hospital financial solvency.

We made several steps towards a more equitable Georgia this year, but our work is not done. One of the biggest threats to future investments in health care and education is HB 463, which was sent to Gov. Kemp’s desk and could initiate significant income tax cuts over the next eight years. If fully implemented, the measure would eliminate about one-third of Georgia’s income tax by 2034, reducing state revenues by more than $6.5 billion. However, future General Assemblies can reject this regressive approach that doubles down on enriching top income earners at the expense of all other Georgians by adhering to the measure’s revenue triggers and returning the state to a graduated income tax structure.

In addition to these major pieces of legislation, lawmakers approved the state budget for Fiscal Year (FY) 2027 through HB 974. Here are some key changes approved by the Conference Committee and sent to Gov. Kemp’s desk:

Human Services and Food Assistance

• $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.
• $50 million added ($28.7 million above Gov. Kemp’s recommendation) for the Out-of-Home Care program, which was facing a deficit of nearly $85 million when lawmakers convened in January. These funds will help cover the increased costs for caring for and fostering children with complex needs.
• $6.9 million added for the Department of Human Services to reduce the SNAP error rate. These funds are matched by $5.3 million from the federal government, which is reallocated to support the Department of Human Services in submitting a corrective action plan to reduce the state’s SNAP error rate below 6% thereby minimizing future program costs passed down from the federal government to Georgia’s state budget.
• $500,000 added for the Department of Corrections to help cover rising food costs in jails and prisons.
• $1.5 million added for Child Welfare Services to support reunification, youth exiting foster care and families at risk of child welfare involvement.

PreK & K-12 Education

• $129.4 million reduced from 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 also makes the cost increase for local schools more manageable, down by $75 million to an estimated $40.3 million.
• $70.4 million to establish the implementation of literacy coaches in every elementary school as part of the Quality Basic Education (QBE) formula, along with related measures to increase literacy in schools.
• $41 million cut for private school vouchers funded through the Georgia Promise Scholarship, which now totals $100 million.
• $38.2 million added for student transportation formula grants to reflect updated bus counts and operations for a total of $402 million. Georgia’s schools will spend more than $1.6 billion on total student transportation costs next year, with most funds coming from the local level.
• $30.9 million added for Pre-K ($5 million above Gov. Kemp’s proposed increase). 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 $12 million for year three of a four-year reduction of class sizes from 22 to 20 students and $4 million to provide five days of leave for Pre-K lead and assistant teachers.
• $15.3 million cut by eliminating the pilot program that could serve as a basis to establish a dedicated “opportunity weight” for students living in poverty.
• $9.7 million in federal funds reallocated to expand the Child and Parent Services (CAPS) program to an additional 1,288 children.
• $5.4 million added for student support services, including $1.6 million added for social work grants, $1.3 million more for mental health support grants and $2.5 million of out-of-school care.
• $2 million 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.

Higher Education

• $218.6 million added to the University System of Georgia (USG) for teaching to reflect a 5% enrollment increase and a corresponding square footage increase.
• $41.5 million added for HOPE Scholarships to meet projected enrollment at public colleges, along with $3.2 million added for HOPE Scholarships at private colleges.
• $34.2 million cut from USG for online courses and instructor salaries.
• $34.2 million added to the Technical College System of Georgia to reflect a 9.4% increase in enrollment and a corresponding increase in square footage.

Department of Behavioral Health and Developmental Disabilities

• $11.6 million increase to support 900 new NOW/COMP waiver slots and the provision of home- and community-based services for individuals with intellectual and developmental disabilities.
• $284,380 increase to support NOW/COMP program administration.

Department of Community Health

• $48.4 million added to support Medicaid provider and facilities reimbursement and payment rate increases—the largest of which supports autism services.
• $4 million added to develop and implement a solvency evaluation process for rural hospitals.
• $2 million added to fund 17 positions to support agency operations.
• $200,000 cut to reflect the planned December 2026 termination of the Comprehensive Health Coverage Commission.
• An unfunded directive to submit a report to various entities of the General Assembly on the impact of various purchases and pharmacy arrangements to the State Health Benefit Plan (SHBP) and Georgia Medicaid by September 1, 2026.

Department of Public Health

• $3.7 million added to expand the maternal and infant home visiting program to an additional 33 counties.

State Government

• $73.25 million added for the Employees’ Retirement System (ERS) through a 2.92% increase in the employer contribution to trigger cost of living adjustments. These funds are matched by an additional $26.75 million in existing funds for a total of $100 million for ERS.

There were many more bills we have been watching this legislative session leading into Sine Die. Here is how they fared:

• HB (House Bill) 463 was the lone income tax rate cut bill sent to Gov. Kemp’s desk. The legislation would cut Georgia’s income tax rate to 4.99%, retroactively beginning January 1, 2026. On January 1, 2027, the legislation increases the state’s standard deduction to $15,000 for individuals and $30,000 for married couples. At the same interval, the state’s dependent exemption would increase by $1,000, and the retirement exclusion would increase by $5,000 per person. For three years, between 2026 and 2028, the legislation also exempts up to $1,750 in tipped or overtime income from taxes. The legislation raises the cap on Georgia’s Revenue Shortfall Reserve from 15% to 20% of the prior year’s revenue collections and raises the threshold for funds to be spent down. HB 463 also authorizes the General Assembly to use any amount of surplus funds that exceeds this 20% threshold to be used for tax relief. Over eight years, between 2027 and 2034, the legislation calls for Georgia to reduce its income tax rate by 0.125 percentage points, to increase its standard deduction by $375 per person and to increase its dependent exemption by $125 if Georgia meets a series of revenue triggers. While GBPI estimates that the bill would reduce revenues by a total of more than $6.5 billion if fully implemented, the same triggers included in HB 463 have been in effect since 2022 and would have prevented the state from reducing its income tax from 5.19% on January 1 of this year.
• SB (Senate Bill) 33 is the primary property tax measure sent to Gov. Kemp’s desk after a sweeping debate consumed much of the 2026 legislative session. This bill is significantly scaled down from previous versions passed through SB 382 and HB 1116 and changes state law to mandate cities, counties and school districts to cap annual increases to homestead assessments to the rate of inflation or 3%. Previously, under HB 581 as passed in 2024, local governments were allowed to decide whether to opt out of implementing this assessment cap. When given this option, 68% of school districts and 30% of counties opted out, citing funding concerns. While the legislation still includes options for cities and counties to repurpose optional sales taxes for property tax cuts, it does not cap overall property tax collections or enact new statewide homestead exemptions.
• HB 1199 was signed into law by Gov. Kemp. This bill 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.
• HB 1000 was signed into law by Gov. Kemp. This bill 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. After accounting for this reduction and the $4.5 billion spend-down of surplus funds included in the AFY 2026 budget signed by Gov. Kemp, Georgia will have approximately $9.2 billion remaining in total General Fund reserves.
• SB 446 did not pass. Governor Kemp opted into the federally funded school voucher tax credit program in January 2026, This bill would have codified permanent participation in the federal tax program and removes the language requiring an annual opt-in. GBPI opposed this bill.
• SB 445 did not pass. The legislation would have expanded eligibility for the Georgia Promise Scholarship private school voucher program that siphons money away from public schools. GBPI opposes this bill.
• HB 1118 was sent to Gov. Kemp’s desk. The bill 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.
• HB 328 was sent to Gov. Kemp’s desk This bill substitute now only increases the annual limit for tax credit contributions from individuals and corporations to fund vouchers for students attending private schools from $120 million to $150 million, (down from $225 million in the Senate version). Additionally, HB 328 expands student voucher eligibility to include military families and students with IEPs and 504 plans. This bill would also increase the Peach Tax Credit (a tax credit for donations to public schools) from $15 million to $25 million. GBPI opposes this bill.
• SB 556 (Formerly HB 1413) was sent to Gov. Kemp’s desk. This bill 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. GBPI supports this bill.
• HB 291 was substituted into SB 441 and did not pass. It establishes a state certification process for Community Health Workers, a critical sector of the public health and health care workforce. GBPI supported this bill.
• HB 1096 was sent to Gov. Kemp’s desk. It allows a subset of county board of health employees to retain annual and sick leave when they move to state employment. GBPI supports this bill.
• HB 1192 was sent to Gov. Kemp’s desk. The bill 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 was monitoring this bill.
• SB 428 was sent to Gov. Kemp’s desk . The bill 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.
• HB 1238 was sent to Gov. Kemp’s desk . The bill 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. GBPI supports this bill.
• HR 1522 was passed out of committee and is awaiting approval by the Speaker as part of the slate of approved study committees for 2026. The resolution 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 947 did not pass. The legislation would have increased burdensome administrative processes and make it more difficult for SNAP recipients and applicants to verify their eligibility. GBPI opposed this bill.