Georgia lawmakers have agreed to incrementally allocate more state funding toward private school vouchers and provide additional support for students from low-income families attending public schools. The approved budget, documented in House Bill 68, allocates $37.8 billion in state funds and $67.2 billion in total, including federal funds, for the fiscal year starting July 1. The budget passed the Senate with a 54-1 vote and the House with a 170-5 vote.
Key elements of the budget include increased funding for Georgia’s prison system and the initiation of a private school and homeschooling voucher system. This initiative marks a significant step in the education sector, which also sees, for the first time, added financial support dedicated to economically disadvantaged students.
Governor Brian Kemp has approved an additional $50 million to be utilized for programs such as foster care and to support new infrastructure at the University of North Georgia. Kemp’s role involves setting the maximum budgetary constraints on state spending.
A significant highlight in the new budget is the dedication of $141 million to a new voucher program designed for private schools and home schooling. This funding equates to $6,500 per voucher, theoretically supporting over 21,000 vouchers. Despite the House initially proposing $46 million for approximately 7,000 slots, the level of applications remains uncertain with multiple application periods scheduled throughout the year.
Additionally, a $15.3 million funding provision targets schools serving large populations of low-income students. This new funding effort is championed as a pilot program, with officials like Senate Appropriations Committee Chairman Blake Tillery monitoring its impact. Though the figure has reduced from an initial $28 million proposal, it reflects a shift from the long-standing exclusion of direct financial support for impoverished schoolchildren in Georgia.
Under House Bill 36, parents will receive up to a $250 state income tax reduction for each child under the age of six starting in 2026. This bill also enhances the current child care tax credit from 30% to 50% of the federal credit limit, raising Georgia’s credit ceiling from $900 to $1,500 per child. Furthermore, new provisions offer employers state income tax credits when they subsidize employee child care expenses.
Moreover, the budget indicates that no money will be borrowed for construction projects for the third consecutive year. Georgia plans to fund such projects with $715 million from current revenues, thanks to sufficient financial reserves and avoidance of high-interest rates associated with new debt.
An extra $10 million is allocated to the state’s Employees Retirement System, catering to state workers outside the teaching profession. This funding ensures about $200 in bonus payments for retirees, part of a broader strategy to enhance the pension fund’s stability without leaning heavily on the state’s budgetary resources.