The State of Georgia ended the 2022 budget year in June with $6.6 billion in surplus cash, even after it filled its savings account to the legal limit.
Governor Brian Kemp has announced plans to spend more than $3 billion of the amount through a combination of one-time tax givebacks, with fellow Republican legislative leaders signaling support. But even that bonanza would leave about $3 billion that could be spent, saved or given away. And barring a notable economic disaster, the state is likely to run a surplus again in the current budget year.
The governor and lawmakers in the General Assembly have yet to decide about future tax cuts or additional spending, but the governor has hinted as to what he would like to see.
First is replacing revenue Georgia hasn’t collected on gasoline and diesel taxes since March. The state next week will resume taxing gasoline at 29.1 cents per gallon and diesel at 32.6 cents per gallon. That money is used for transportation, and Kemp plans to backfill foregone revenue using $1.7 billion or more of the surplus.
The governor also wants to give another round of state income tax rebates like the $1.1 billion in payments issued last year. Those payments gave dual-earner households $500, single adults with dependents $375, and single adults $250.
Finally, Kemp wants to revive a property tax rebate abolished in 2009. The governor wants to spend $1 billion to save about $500 a year for homeowners.
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