Tag: #gasenate

By: Sen. Bill Cowsert (R–Athens)

The second week of the legislative session is commonly referred to as “Budget Week” at the State Capitol. The budget process begins with Gov. Brian Kemp presenting a proposed budget for consideration by the General Assembly. This year’s budget proposal is presented in a printed report of 390 pages, which is just the increases to the 2025 budget. Various agencies present budget requests during joint Senate and House Appropriations Committee meetings. The House then passes an appropriations bill setting forth governmental spending for the upcoming year. Finally, the Senate makes its changes and the differences are worked out by a joint conference committee and the final version is sent to the Governor for his signature. The General Assembly’s most important endeavor is passing a balanced, commonsense budget, addressing the needs of Georgia citizens each year. In fact, the only bill which the General Assembly is required to pass each year is the annual appropriations bill.

Over the past 15 years, Georgia’s state budget has experienced steady growth, reflecting the state’s expanding economy and increasing demands for public services. In Fiscal Year (FY) 2010, Georgia’s budget was approximately $17.4 billion during the heart of the Great Recession. Fast forward to FY 2026, and that figure has more than doubled to $37.71 billion. In addition, approximately $22.46 billion in federal funds are included in Georgia’s 2026 budget.

Without going into extensive detail, the Governor proposes spending 20.33 billion (53.9%) on education, 8.76 billion (23.2%) on healthcare, 3.05 billion (8.1%) on public safety and 2.78 billion (7.4%) on transportation. This leaves only $2.79 billion (7.4%) for all other areas of government spending.

A key factor in Georgia’s economic stability is our unwavering commitment to maintaining a balanced budget. Unlike the federal government, which has spent both recklessly and unapologetically, Georgia is constitutionally required to balance its budget every year. This requirement ensures that the state lives within its means, preventing excessive debt accumulation and promoting long-term financial health for all citizens. Maintaining a balanced budget encourages responsible spending, requiring lawmakers to prioritize essential services and eliminate wasteful expenditures. It also enhances Georgia’s credit rating, allowing us to finance large-scale projects at lower interest rates, saving taxpayers money in the long run. Perhaps most importantly, a balanced budget fosters public confidence in our state’s financial management, reinforcing Georgia’s reputation as a great place to live, work and raise a family. By adhering to a balanced budget and prioritizing critical investments, we continue to build a prosperous future for all Georgians.

Thanks to our responsible fiscal management, Georgia has built a robust Revenue Shortfall Reserve (RSR), commonly known as the “rainy day fund.” The reserve was depleted to less than $50 million during the great recession, however, By FY 2023, the reserve had reached its statutory cap of 15% of the prior year’s revenue, totaling $5.4 billion. This financial cushion allows the state to weather economic downturns without resorting to drastic spending cuts or tax increases, ensuring continuity in essential public services. In addition, Georgia has over $11 billion in additional undesignated reserves over and above the funds held in the rainy day fund. There is really no authority for the State to accumulate taxpayer funds above the amounts needed to fund basic state needs. Fortunately, Gov. Kemp and the legislature have refunded at least $1 billion per year to taxpayers and significantly reduced taxes in response to our financial good fortune.

It’s important to highlight the stark contrast in spending at the federal level due to the Biden administration’s recent mismanagement of funds. Unfortunately, both political parties are guilty of irresponsible budgeting at the federal level. In fact, the last time that the federal budget was balanced was in the early 1990s when Bill Clinton was President and John Kasich was Chairman of the Appropriations Committee in the United States House. As of 2024, our national debt exceeded $35 trillion, with annual budget deficits contributing over $1 trillion annually to this growing burden. Persistent federal deficits pose risks such as higher interest rates, reduced national savings and potential economic uncertainty for future generations. These misguided spending practices have led our country down a dangerous path. Calls are growing for a constitutional amendment requiring the federal government to pass a balanced budget just like Georgia and almost all other states must do.

It is a privilege and an honor to serve the people of the 46^th Senate District. As always, don’t hesitate to contact my office with any legislative concerns. I hope to see you under the Gold Dome soon.

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Sen. Bill Cowsert serves as Chairman of the Senate Committee on Regulated Industries and Utilities. He represents the 46^th Senate District which includes portions of Barrow, Clarke, Gwinnett, Oconee and Walton Counties. He may be reached at (404) 463-1366 or via email at bill.cowsert@senate.ga.gov

For all media inquiries, please reach out to SenatePressInquiries@senate.ga.gov.