Georgia: Gov. Kemp Signs FY27 Budget

ATLANTA - Governor Brian P. Kemp, joined by First Lady Marty Kemp and Office of Planning and Budget (OPB) Director Rick Dunn, today signed the state budget for Fiscal Year 2027. Below is an excerpt of the governor's remarks which includes a link to the budget in full and any disregard or veto language included therein. You can also find links to the Fiscal Year 2027 and Amended Fiscal Year 2026 budgets on the OPB website here.

Excerpt of Governor Kemp's Remarks

Good afternoon. Thank you for joining us as I prepare to put my name on the last budget I'll sign while serving as your 83rd governor. I'm joined today by the nation's best First Lady, Marty Kemp, and our great Office of Planning and Budget Director, Rick Dunn...

House Bill 974 delivers on the promise I made when I first ran for governor and the same promise we've kept for every budget since. It makes strategic investments to keep our state the best place to live, work, and raise a family - while also holding the line on government spending.

As I always say, our job is to be good stewards of taxpayer dollars, because that's the people's money, not the government's! That's why we've saved or returned over $12 billion to the taxpayers, and why we'll save them even more through the tax cuts I signed yesterday.

Like my earlier budgets, this document prioritizes education, behavioral health, community health, public safety, our agriculture and forestry industries, and much more.

Yet again, we're fully funding our K-12 classrooms, funding growth in the HOPE Scholarship and Grant programs, fulfilling our prior commitment to increase the number of residency slots, and funding other key priorities that will grow our state's healthcare workforce. With the launch of our Career Navigator System, those students will have an easier time connecting with opportunity once they've completed their academic careers.

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This budget also supports Georgia's mental health crisis system through the 9-8-8 hotline, something I know the First Lady appreciates the legislature's support on. And it addresses the needs of the Out-of-Home Care program at the Division of Family and Children Services.

We're shoring up the state's public safety capabilities, from the State Patrol to the Department of Corrections and more. And we're supporting the farmers and foresters as they continue to recover from Hurricane Helene, the devastating wildfires, and challenges unique to their industries.

My team will direct you to a more comprehensive list of investments, but it's important to note that apart from formula growth and our fulfillment of prior commitments. The only significant, new ongoing commitment in this budget is for:

• The literacy measures championed by the Speaker and members of the legislature, and
• The enhanced retirement benefits for state law enforcement, which is something I believe is critical to the future safety and wellbeing of our state, and something our men and women in state law enforcement certainly deserve.

...Under this administration, we have put unprecedented funding toward our classrooms, toward mental health services, into local and state infrastructure projects, public and community health initiatives, and more. Those investments remain intact in this bill.

When I introduced my balanced budget recommendation in January, it was based on a general fund revenue estimate of $36.6 billion. With the tax cuts the General Assembly passed, and I signed into law yesterday, the state must now address a reduction in revenue for this coming fiscal year of nearly 1 billion dollars, and that's assuming we don't have an economic downturn.

That's money that has to be accounted for in a balanced budget, because as long as I'm governor, Georgia will not follow in the steps of Washington, D.C. where too many politicians refuse to make the tough decisions necessary to keep spending in check.

I also want to be clear that I strongly support cutting taxes and giving hardworking Georgians more relief – which is exactly what we accomplished this legislative session working with the Speaker, Lt. Governor, and members of the House and Senate. But our job is to deliver on that relief, while at the same time protecting the future fiscal standing of our state.

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Other states are dealing with budget shortfalls and thinking about raising taxes on their citizens. Here in Georgia, we're giving money back to the taxpayers, and we're only able to do that because we maintain fiscal discipline.

That's what I did when I first came into office over seven years ago, and it's what I've done every year since. And it's what I'll do today by directing state agencies to withhold more than $300 million in proposed new spending in HB 974.

Let me be clear: we're talking about new spending; we aren't making any cuts to or rolling back any parts of current programs. We're preserving existing services while bringing total spending into alignment with projected revenues, just like every Georgia household has to do.

Even with these actions, the state may still need to rely on reserve funds to meet obligations in Fiscal Year 2027. As we move through the first half of the fiscal year, we'll continue to evaluate the state's financial position in preparation for the amended budget process.

But here again, I want to stress something I mentioned in my state of the state address back in January: reserves are a limited, one-time resource. As I've said before: you can't spend one-time money on long-term liabilities. Every Georgia family or small business balancing their checkbook can tell you that.

As a former state senator, I have great respect for the legislative process and the constitutional authority the General Assembly has when it comes to appropriating the people's hard-earned tax dollars and determining fiscal policy. And my office has enjoyed a strong working relationship with both chambers throughout my time serving as your governor.

As I've said many times, our state's success has been a team effort – and I greatly appreciate that partnership with leaders and members both past and present. But those successes are not guaranteed in the future. Downturns and tough times will come. Reserves can be erased. Future budget decisions might be more painful than those we're making today. And I have confidence that future governors and legislators will heed that advice. The directions I'm giving today will keep Georgia where it needs to be – on sound financial footing.

So, I want to thank the General Assembly for their careful consideration and understanding of the current financial situation, and for their partnership as we give hardworking Georgians the tax relief they deserve while holding the line on state government spending.

I also want to thank Director Dunn and his team at the Office of Planning and Budget. They spend countless hours on these budgets, and without them, we would not have been able to give so much relief to the people of our state.

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