Georgia agencies directed to hold spending levels and prepare contingency plans

Governor Brian Kemp instructed Georgia state agencies to keep spending at current levels while they develop budget proposals for the next fiscal year. Agencies must submit budget requests by Sept. 1, and any increase in funding is limited to “urgent, unavoidable” needs, according to a memo from Office of Planning and Budget director Richard Dunn.

Kemp, who is term‑limited, signed a final budget that cut more than $300 million in new spending to fund an income‑tax cut. The upcoming budget will be signed by the next governor, who could be healthcare executive Rick Jackson or former Atlanta mayor Keisha Lance Bottoms. The guidance aims to ensure fiscal responsibility amid uncertain economic conditions and the impact of a recent federal tax and spending bill.

The Georgia Budget and Policy Institute criticized the move, noting that inflation has reduced per‑resident spending despite overall budget growth.