Governor Brian Kemp delivers his seventh State of State Address at the Georgia State Capitol on Thursday. Image Credit: Georgia Public Broadcasting

Evoking Georgians’ soft spot for the All-Star Special, Governor Brian Kemp promoted tort reform as necessary to protect Georgia businesses like Waffle House from being smothered by insurance and litigation costs during his seventh State of the State Address on Thursday. In a speech expected by many to include details of what civil justice reform the governor will back this year, Kemp instead outlined a number of other budget and policy priorities and promised to circle back later with the particulars on tort reform. While the specifics remain unclear, the governor’s seriousness is crystal. Lawmakers and lobbyists alike shuddered at Kemp’s allusion to a special session if some form of reform is not passed.

Following the State of the State Address, the Office of Planning and Budget released the governor’s proposals for the Amended FY 2025 and FY 2026 State budgets, and legislature “syllabus week” continued with House committee assignments. More details on all of this are in the #GoldDomeReport.

In this Report:

• Governor Kemp Caps 2025 Policy, Budget Rollout in State of the State Address
• SNAPSHOT: Governor’s AFY 2025 and FY 2026 Budget Proposals
• House Assigns Committee Chairs, Members
• New Legislation
• What’s Next

Governor Kemp Caps 2025 Policy, Budget Rollout in State of the State Address

After over a week of rolling policy and budget announcements, Governor Kemp tied a bow on his 2025 policy package in his seventh State of the State address. Reflecting on the State’s accomplishments in the face of tough times over the first six years of his tenure, including the COVID-19 pandemic and 11 hurricanes that have passed through, Kemp proclaimed that the state of our state is “not only strong… it is resilient.” The roughly 40-minute speech covered the waterfront, from storm relief to tort reform, but left a number of details to be determined.

As usual, the address was focused largely on the State’s finances. After pummeling the federal government for its consistent deficit spending (but thanking both President Biden and President-elect Trump for support of disaster relief funds after Hurricane Helene), Governor Kemp preached the Peach State’s recent fiscal conservatism and noted that the State has provided $7.6 billion in tax relief for Georgians over the last four years. He also announced his intent to seek an additional 0.2% reduction in the state’s income tax rate, bringing the rate to 5.19% and saving taxpayers approximately $745 million per year. He also highlighted a number of expenditures he is proposing in the Amended FY 2025 and FY 2026 spending plans, including previously announced additions for school safety grants and $1.2 million for the Attorney General to bolster gang and human trafficking prosecutions.

Kemp’s plans for tort reform were perhaps the most anticipated proposals ahead of the address, but few details were revealed. Evoking Georgians’ soft spot for the All-Star Special, the governor promoted tort reform as necessary to protect Georgia businesses like Waffle House from being smothered by insurance and litigation costs. Kemp again alluded to a forthcoming tort reform package that will be “comprehensive but fair” and encouraged legislators to work hard and seek compromise this session — or face the prospect of returning later this year for a special session devoted to legal reforms.

In a parting shot to politicos and pundits lambasting the state for not expanding Medicaid, Governor Kemp made his position clear. With 93 provider rate increases and costs growing by more than $250 million per year, he said that those promoting expansion as fiscally responsible “know that they are selling you a bill of goods — because the numbers simply don’t match the rhetoric.” Instead, the reality according to Kemp is that through Georgia Access and Georgia Pathways, “we’re covering well over 200,000 more Georgians than traditional Medicaid expansion would cover.” He expressed a renewed commitment to the State’s “innovative approach to healthcare access.”

Governor Kemp’s complete remarks are available here, and a video of the address may be found here.

SNAPSHOT: Governor’s AFY 2025 and FY 2026 Budget Proposals

Following the State of the State Address, the Office of Planning and Budget released Governor Kemp’s proposals for the Amended FY 20205 and FY 2026 budgets. Notable items from the proposals include:

Amended FY 2025

• $1,000,000,000 for one-time additional refunds from prior year undesignated surplus funds to taxpayers for tax year 2024.
• $530,000,000 for infrastructure projects that enhance economic development while promoting freight and logistics efficiency and safety for the agricultural, manufacturing, and distribution industries.
• $501,700,000 for investment in the development and construction of surface water resources for Georgia’s Coastal region to meet growth in demand.
• $250,000,000 for the Georgia Fund to support water and wastewater infrastructure development across the state through low-interest loans to local communities.
• $250,000,000 for local maintenance and improvement grants through the Department of Transportation’s Local Road Assistance Program.
• $150,000,000 for the Governor’s Emergency Fund for expenses related to Hurricane Helene emergency response.
• $50,000,000 in one-time funds for additional school security grants to K-12 public schools to improve school safety.
• $7,422,147 to provide salary parity between Pre-K teachers with K12 teachers by moving to the State Board of Education salary schedule.

FY 2026

• $173,782,658 to fund the state share of employer increases on certified educators who participate in SHBP.
• $14,061,322 for year two of a four-year phase in to reduce Pre-K classroom size from 22 to 20 students.
• $3,928,500 to provide 500 additional state funded slots in the Childcare and Parent Services (CAPS) program.
• $3,758,239 to expand the maternal health home visiting program to 75 counties and increase access to maternal fetal medicine in rural communities.
• $2,331,025 for 100 new slots for the NOW/COMP Waiver Program for individuals with intellectual and developmental disabilities.
• $1,250,000 to establish a High Demand Equipment Grant to support K-12 vocational classrooms in high needs areas statewide.

The complete budget proposals can be found here. The House and Senate Appropriations Committees will meet jointly next week to hear testimony on the proposals. The schedule for the hearings can be found here.

House Assigns Committee Chairs, Members

Late Wednesday, the Speaker’s Office announced committee members and leadership for the 2025-2026 Biennium. A complete list of assignments is available here, and notable new chairs include:

• Appropriations - Economic Development Subcommittee: Representative Steven Meeks (R-Screven)
• Appropriations - Higher Education Subcommittee: Representative Mark Newton (R-Augusta)
• Appropriations - Judicial Subcommittee: Representative Joseph Gullett (R-Acworth)
• Appropriations - Transportation Subcommittee: Representative John LaHood (R-Valdosta)
• Governmental Affairs - Representative Victor Anderson (R-Cornelia)
• Interstate Cooperation - Representative Stevne Sainz (R-St. Marys)
• Public Safety and Homeland Security - Representative Clint Crowe (R-Jackson)
• Special Rules - Representative Mitchell Scoggins (R-Cartersville)

The House added two new committees, the Rural Development Committee, which will be chaired by Representative Leesa Hagan (R-Lyons), and the Special Committee on Resource Management, to be chaired by Representative Brad Thomas (R-Holly Springs). The House also renamed the Juvenile Justice Committee the Judiciary - Juvenile Committee, which will continue to be chaired by Representative Mandi Ballinger (R-Canton).

New Legislation

The following new legislation of interest has been introduced in the House:

The following new legislation of interest has been introduced in the Senate:

What’s Next

The House will reconvene for Legislative Day 5 on Friday, January 17 at 9 a.m. and the Senate will convene at 10 a.m.