Gov. Brian Kemp says he’s ready to loosen the purse strings after years of huge budget surpluses, reaped partly by holding down spending despite strong state revenue. Richard Dunn, director of the Office of Planning and Budget, told state agencies they can ask for 3% increases both when the current 2024 budget is amended and when lawmakers write the 2025 budget next year.
He also invited agencies to propose one-time ways to spend the state’s unallocated surplus, which could top $10 billion once the books are closed on the budget year ended June 30. Overall tax collections have cooled in recent months, falling 0.4% in June compared with the same month in 2022.
But the state would have to see a disastrous $5 billion drop in tax revenue this year to miss projections. That means Georgia is likely to run a fourth year of surpluses unless Kemp and lawmakers substantially increase spending or cut taxes.
