Republican Gov. Brian Kemp on Tuesday vetoed millions of dollars for homeless veterans, K-12 student transportation and other state programs to help cover a $1.3 billion deficit caused by a last-minute income tax cut.
Republican lawmakers passed the tax cut, which went beyond what Kemp had proposed, in the final hours of the legislative session last month. The governor signed that income tax cut Monday — a decision he says caused the $1.3 billion deficit.
Kemp helped cover that deficit Tuesday when he used his veto pen to strip $300 million in spending out of the state’s $38.5 billion budget.
The governor is counting on the state’s revenue to grow over the next year to fill some of the remaining deficit. Whatever is left will have to come from the state’s $8 billion savings account, said Rick Dunn, director of the Governor’s Office of Planning and Budget.
“We’ve got a hole in the budget that we’ve got to fix,” Kemp said. “(State lawmakers) may not really like that so much, but for the members who get reelected, who come back next year, when they’re dealing with the ‘27 budget, they’ll be thanking us for doing this.”
At a news conference, Kemp emphasized what the budget still includes, not what is missing. That includes $70.4 million for literacy coaches in every elementary school, $11.7 million for new school enrollment growth, $213.3 million for school construction and $44.7 million in additional lottery funds for HOPE scholarships.
The income tax bill Kemp signed will lower the tax rate, raise the standard deduction and exempt some overtime and tips income. Kemp supported the bill but acknowledged Tuesday it creates a structural deficit that must be addressed.
“(The budget) makes strategic investments to keep our state the best place to live, work and raise a family while holding the line on government spending,” Kemp said. “As I always say, our job is to be good stewards of the taxpayer dollars, because that’s the people’s money, not the government’s.”
Credit: Hyosub Shin/AJC
Credit: Hyosub Shin/AJC
Most of Kemp’s cuts are for new or expanded state programs. They include $30.7 million in new funding for student transportation, $5.9 million for outdoor recreation and $5.3 million for Medicaid dental care.
The cuts also included $10 million in airport aid, $2.5 million to aid homeless veterans and scores of smaller cuts to numerous programs. He also vetoed nearly a dozen small capital projects, including about $12 million for school safety equipment grants and $463,000 for library repairs.
His decisions were met with fierce criticism from Democrats, who hope to make gains in the Republican-controlled Legislature this year.
“Once again, middle class and working Georgians will pay for another GOP tax scam that makes the rich richer,” Senate Democratic Leader Harold Jones II said.
Republican Lt. Gov. Burt Jones, who championed the tax cut, praised Kemp, saying the two-term governor has been “has been consistent in his fiscal conservatism the past eight years.”
“I appreciate his thoughtfulness,” said Jones, who is running for governor this year. “I look forward to continuing this great work, while giving every family a 5% raise through the complete elimination of our state income tax.”
House Speaker Jon Burns said the House passed “a sound, fiscally responsible budget.”
“Our commitment to passing a strong, balanced budget has never wavered, and we’ll continue working with the governor to ensure our budget maintains our state’s standing as the best place in the nation to live, work and raise a family for generations to come,” Burns said.
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