ATLANTA — The Georgia Senate approved a mid-year budget amendment Friday, prioritizing tax relief and mental health funding even as scaling back some of Governor Brian Kemp’s initial proposals. The $42.3 billion budget, passed by a vote of 49-1, now heads to a conference committee for negotiations with the House.
Central to the Senate’s revisions is the preservation of Kemp’s $1.2 billion taxpayer rebate, providing $250 to single filers, $375 to heads of household, and $500 to jointly filing couples. The Senate also endorsed the House’s addition of an $850 million property tax grant for homeowners, offering approximately $500 to urban homeowners and $300 to those in rural areas, according to Senator Blake Tillery (R-Vidalia).
“We are laser focused on affordability,” said Tillery, who also chairs the Senate Appropriations Committee and is currently running for lieutenant governor. The focus on tax breaks comes as affordability is a key issue in an election year.
While maintaining the tax relief measures, the Senate reduced the size of a proposed bonus for state employees. Kemp had proposed a $2,000 one-time supplement, costing over $600 million, but the Senate lowered it to $1,250, saving approximately $200 million.
Funding for higher education also saw adjustments. The Senate allocated $100 million to the Georgia DREAMS scholarship fund, a need-based program, significantly less than the $325 million endowment initially proposed by Kemp. A $50 million grant program aimed at addressing homelessness was also reduced to $10 million.
A major shift in funding priorities was the allocation of $409 million towards the construction of a regional hospital for the mentally ill. This represents a substantial increase from the $27 million initially proposed by the House, and addresses a critical need for mental health services, often resulting in individuals being housed in local jails, according to Lieutenant Governor Burt Jones.
“This represents not a partisan issue,” Jones stated, highlighting the broad agreement on the need for improved mental health care.
The Senate also restored $88 million for an aerospace building at Georgia Tech, funding that had been reduced by the House to $15 million. However, the Senate cut nearly $100 million from Kemp’s proposed $2 billion in improvements to I-75 south of Atlanta and State Route 316, from Gwinnett County to Athens.
Rural areas did receive increased attention, with the Senate adding $15 million to fix rural bridges, some dating back to the 1940s, and $30 million for rural infrastructure projects. The Senate also expanded a $35 million natural gas infrastructure improvement program, adding $55 million to deliver methane to customers, aiming to spur economic development in areas where gas capacity is limited.
The House has indicated it does not agree with the Senate’s changes, setting the stage for negotiations within a conference committee to reconcile the differences before finalizing the mid-year budget. Lawmakers will then turn their attention to the full budget for the fiscal year beginning in July.
Governor Kemp announced earlier this year that he would not be running for U.S. Senate, but intends to remain actively involved in Georgia politics, supporting Republican efforts in upcoming elections, including maintaining legislative majorities and backing former President Trump.
