GA Legislative Watch 2025 | Week Two

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GA Legislative Watch

By Molly Mcloughlin ● Jan 24, 2025
Smart Brevity™ count: 5.5 mins…1,473 words

❄ Three “snow” days. Though not everyone saw flurries, severe winter weather delayed the General Assembly’s plans for budget hearings. Most hearings are rescheduled for next week.

• Legislative days 6-9 are planned for Monday to Thursday, barring any other weather emergencies.

🏈 Situational awareness: Congrats to the Buckeyes! Although both teams’ fans had to bear extreme wait times at HJIA this week, there were hard-earned celebrations at the Benz.

1 big thing: Financial planning

💲Gov. Kemp’s FY26 budget continues tax cuts and increased spending, despite slowing revenues and dwindling COVID era funds.

• ⬇️ Tax collections were down about 1% in the first 6 months of fiscal year 2025, after nearly 4 years of record growth – possibly a shift to a new post-pandemic economic normal.
• Yes, but: The state maintains significant reserves, including an $11B undesignated surplus and nearly $5.5B in emergency funds.
• If lawmakers approve all the governor’s tax and spending priorities, the state’s reserves would be reduced by about $4B.

Big picture: Spending rose more than 11% in the past year. For perspective, FY20’s budget stood at $26.6B and FY26 at $37.7B, likely to rise above $40B in the amended budget.

The plan to gradually reduce the state income tax rate to 4.99% is still in play, but with HB 111, the latest reduction of 5.39% to 5.19% is put off by a year, with the new rate going into effect in the 2025 tax year.

• The cut is expected to cost the state $149M in revenue in FY25 and $852M in FY26.

A one-time income tax refund is also in the works. HB 112 provides for $250 for single filers, $375 for those filing as heads of households, and $500 for married couples filing jointly based on their 2023 earnings.

Diverging Perspectives. Senate Minority Leader Harold Jones (D-Augusta) rebuts the Gov.’s spending plan contending,

“What he calls conservative budgeting, we say we’re actually depriving people of needed resources for public projects.”

The minority wants to see the state’s massive surplus spent on education, healthcare, and social programs, like free school breakfast and lunch. House Appropriations committee member, Rep. David Wilkerson (D-Powder Springs) said,

“It’s almost like we’re hoarding it in some cases.”

2. Notable legislation (filed and pending)

The Guest Worker Act, the bipartisan HB 82 would identify labor shortages and designate foreign born or “guest” workers to fill those shortages – but only if Georgians can’t fill them.

More ethics training and less opinion sharing for school boards would come with SB 4, which also clarifies financial management responsibilities and is sponsored by Sen. Greg Dolezal (R-Cumming), who also brought us school vouchers.

• Zoom out: Local school boards have come under scrutiny as members and meetings became emblematic of cultural and political divides.

Save our historic properties. Sen. Max Burns (R-Sylvania) has proposed SB 24 allowing for preferential tax treatment for developing historic properties for up to 21 years instead of the current 9-year limit, subject to county approval.

Data centers. Regulating and planning for them will be a legislative priority, as investment in new centers grows throughout the state.

• Legislation is expected from the House Special Committee on Resource Management, created to figure out how to manage the impact data centers have on local energy and water supply.

Data privacy. Georgia lawmakers and technology companies almost came to an agreement last year on the best way to protect consumer data in the digital age, but the effort stalled on the final day of the session. We expect a similar version to come into play this session.

🏇 Sports betting. For the 7th consecutive year, lawmakers will gamble with legalizing it. First out of the gate is Sen. Carden Summers’ (R- Cordele) proposal for a constitutional amendment asking voters:

• Should the first $2B generated be split evenly among Georgia’s 159 counties?
• The winnings would amount to about $12.6M per county.

Housing rights. Local governments and advocates want to keep closer tabs on landlords and hold them accountable.

• With investor and out-of-state property owners flooding Atlanta, the 2003 Georgia law prohibiting localities from requiring landlords to register their properties isn’t aging well.

The City of Atlanta is also asking for state legislative support on:

• Tech sector incentives to boost capital access for Atlanta entrepreneurs and small businesses.
• Raising the city’s general obligation bond limit to expedite large-scale projects.
• Streamlining development by removing the public hearing requirement for special permits, reducing bureaucratic hurdles and speeding up the process.

3. Leadership change: POTUS

With President Trump back in office and a new Congress in place, Georgia’s businesses, policymakers, and economic leaders are bracing for significant federal policy shifts that could reshape the state’s economic trajectory. Key appointments signal the state’s strategic importance:

• Former Rep. Doug Collins is set to lead the Department of Veterans Affairs, one of the federal government’s largest agencies.
• Former Sen. Kelly Loeffler is the new head of the Small Business Administration, aligning with Georgia’s thriving small business ecosystem.
• Former Sen. David Perdue’s appointment as U.S. Ambassador to China places a Georgia leader at the forefront of global trade diplomacy—a critical role as tariffs dominate policy discussions.
• Rep. Brian Jack, a first Trump term alum, will represent the freshman class on the steering committee that decides committee appointments, and Rep. Marjorie Taylor Greene will chair the Subcommittee on Delivering on Government Efficiency (DOGE).

Corporate America’s relationship with the White House has shifted dramatically. After years of public opposition, businesses are now aligning with Trump’s administration as shown by the haul brought in for the inauguration by companies including Coca Cola’s custom bottles.

Trump’s ambitious AI infrastructure investment plan, and the billions of dollars that will come with it, could be a game changer for Georgia’s tech sector, particularly since Atlanta is a hub for data centers and AI innovation.

The administration’s housing policies could roll back tenant rights introduced by the Biden administration, creating a more landlord-friendly environment. While this could boost investments in multifamily developments, it may also heighten affordability challenges for tenants.

Immigration, trade, and tariff policies could ripple through Georgia’s economy and especially its ports.

• 🚧 For the construction industry, rising material costs may inflate project budgets, while stricter deportation policies could exacerbate labor shortages.
• Higher tariffs could mean a higher cost of goods for consumers.
• Yes, but: Trump’s push to increase oil production here and streamline regulations might offset some challenges, potentially lowering supply chain costs for industries – and therefore consumers – across the board.

Go deeper on Trump’s policies and their impact on Georgia here.

4. Other political news

Rep. Mike Collins’ Laken Riley Act heads to the President’s desk as the first piece of legislation he’ll sign in his second term, in line with his top campaign promise aimed at cracking down on illegal immigration.

• Led by Rs with some Ds’ support – including Georgia’s two senators and Reps. Lucy McBath and Sanford Bishop, the bill requires authorities to detain people who are here illegally and accused of theft or burglary.
• More offenses to the list of crimes that would call for detention were added in the Senate before it went back to the House and passed.

💰 AG Chris Carr raised more than $2M over 40 days before the start of the session when state officials are restricted from collecting donations.

• His campaign claims it’s the largest sum in state records for the first 40 days of an open primary for governor.
• With fundraising being the main reason for his early entry in the race, he’s got a leg up on Lt. Gov. Burt Jones, a wealthy executive who can self-finance his campaign.
• National politics and presidential influence aside, he’s calling himself a “pro-Chris Carr candidate” who is focused on winning over Georgia voters. Go deeper.

Congressman David Scott is being challenged by State Sen. Emanuel Jones (D- Decatur), who has officially entered the race to oust the longtime Atlanta-based Congressman.

• The almost octogenarian Scott, also the first Black person to lead the House Agriculture Committee, is said to have health challenges.

5. What’s next?

❄ Makeup budget week hearings and other meetings lost in the snow.

In parliamentary procedure, a ‘friendly amendment’ enhances the original motion, often as a clarification of intent. Our amendment is a newsletter delivering intelligence from the team at Ohio River South on southern politics, policy making and public sector business.

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