The State Accounting Office reports that Georgia currently holds a $14.6 billion surplus, composed of roughly $9 billion in undesignated reserves and $5.6 billion in its rainy‑day fund. FOX 5 Atlanta
This sizable cushion gives state leaders flexibility as they return to the Capitol and prepare the budget for the coming year. FOX 5 Atlanta
Background & Comparison to Past Years
Last year, Georgia’s surplus peaked even higher — around $16.5 billion — which allowed lawmakers to pursue income tax cuts and issue more than $2 billion in refunds to taxpayers. FOX 5 Atlanta
Yet, experts caution that a large surplus does not guarantee aggressive new spending or tax relief. The state faces financial pressures from federal cuts and macroeconomic uncertainties. FOX 5 Atlanta+1
Possible Uses of the Surplus
The surplus opens several paths for lawmakers. Some of the ideas on the table:
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Tax refunds or rate cuts: In prior years, Georgians received direct refunds (e.g. $250 for single filers, $500 for married couples) during surplus years. FOX 5 Atlanta
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Eliminating or reducing the income tax: Lt. Gov. Burt Jones has floated plans to phase out the state income tax. However, experts warn this could rapidly deplete the surplus. FOX 5 Atlanta+1
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Investing in infrastructure, education, or technology: Some voices suggest prioritizing long-term investments that can strengthen the state economy. FOX 5 Atlanta
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Bolstering social services: Democrats have proposed using some of the surplus to expand health, education, and welfare programs. FOX 5 Atlanta+1
Financial analysts emphasize caution: a surplus doesn’t justify a profligate budget. Sound fiscal policy, they say, means balancing immediate needs with long-term stability. FOX 5 Atlanta
What Comes Next
Governor Brian Kemp is expected to lay out his spending proposals when he unveils the next state budget in January. FOX 5 Atlanta
Legislators must weigh whether to maintain a conservative approach or to push for larger outlays or tax reliefs. With looming federal reductions in programs like Medicaid, budget planners will need to be judicious. FOX 5 Atlanta+1
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