By now, you should know Georgia is more fiscally responsible than the federal government. If not, the folks in Washington, D.C., are working overtime to demonstrate it.
But to see how budgeting is done without these gimmicks, look no further than the Gold Dome.
The state government operates under a balanced budget requirement, so there is no deficit spending a la Washington. Still, the state historically has issued bonds to pay for infrastructure projects, from bridges to new college classrooms.
Lately, however, it has eschewed even that borrowing – to the benefit of taxpayers.
The budget year that begins July 1 will be the third straight with no “bond package,” as that section is typically called. Instead, over the course of three years the state has paid cash for projects totaling $3.45 billion. The savings to taxpayers comes from the interest payments they’ll never have to make.
To issue bonds for that $3.45 billion would have cost a total of $6.26 billion over the course of 23 years, according to estimates provided by the Governor’s Office. The difference of about $2.81 billion represents the interest payments that would have been made.
That’s an average of $120 million per year that future taxpayers won’t have to pay. All of this was made possible by the state’s conservative approach to budgeting. Georgia now holds nearly $19 billion in reserves: $8 billion in rainy-day and other official reserve accounts, plus another $11 billion in surplus cash.
Those surpluses have built up despite a series of tax cuts and tax rebates, not to mention those cash expenditures for infrastructure projects we’ve been talking about. How? The state has been spending (get this, D.C. types) less than it takes in.
We talk about the benefits of Georgia’s conservative budgeting in this week’s commentary. We also have the latest news and analysis from the last week, including:
- State awards three grants in latest round of workforce housing program
- Atlanta approves new tree protection ordinance
- America’s power grid faces unprecedented challenge as AI and crypto drive demand skyward
- Wealthy Americans will continue to flee New York, other high-tax states
Have a great weekend,
– Kyle Wingfield
Friday’s Freshest
Homeschooling support for military families: A new opportunity for Georgia
The U.S. Department of Defense recently announced a formal review of how it supports military families who choose to homeschool their children—a move that could significantly benefit Georgia’s large and growing population of service members. The review signals a broader recognition in Washington of what military families have known for years.
School choice means more than just one program
Proponents of educational freedom in Georgia often hold up Florida as a paragon of empowering families to choose the education that best fits their children’s needs. But with so much of the focus on private choice, it’s easy to forget that freedom also means the ability to move among public schools. That’s particularly worth remembering as Florida has hit a new milestone: 51% of all K-12 students there exercised educational choice last year.
Wall Street remains easy target, but tackling housing affordability begins in Georgia
Out-of-state companies, typically classified as “institutional investors,” have drawn the ire of policymakers and the public primarily by purchasing existing single-family homes and then renting them out. Some of these companies also build homes and develop entire subdivisions with the sole intention of renting, another contentious concept known as Build-to-Rent, or BTR. But to truly look at the issue of housing affordability, we must look inward at the policies that have stifled housing.
Weighing the costs and benefits of data centers in Georgia
While the data center industry has grown rapidly since a tax credit was introduced, there is debate over how influential the credit has been over that growth. In late 2022, the University of Georgia’s Carl Vinson Institute of Government released a report that evaluated tax incentives for Georgia’s data centers. This study calculated the return on investment of the credits, or in other words, how much economic activity would have occurred if not for the subsidy.
‘Obscene Increase’: Savannah schools’ spending priorities seem lopsided
The Savannah-Chatham County Public School System is Georgia’s 10th largest, and over time its yearly budgets have increased … and so have the number of school administrators. As for the number of teachers and students, well, those numbers have actually decreased. Are you confused?
The Latest
Economy
Senate Republicans unveil bill to make Trump tax cuts permanent: Here’s what to know
Senate Republicans have introduced their chamber’s version of the GOP’s tax cuts and extensions package, as Congress looks to deliver on President Donald Trump’s “One Big, Beautiful Bill” before the Fourth of July. What are some of the tax policies that affect most American taxpayers and households?
Rich Americans will flee NY, high-tax states even with higher SALT deduction
A new analysis by Goldman Sachs finds that while lawmakers in Congress are weighing a higher cap on the SALT (state and local tax) deduction, those potential tax savings are unlikely to stop wealthier taxpayers from moving South. The report, authored by Goldman economists led by Jan Hatzius, noted that over the last two decades, interstate migration has shifted the U.S. population away from the Northeast and West Coast to the South and Southwest.
Energy
America’s power grid faces unprecedented challenge as AI and crypto drive demand skyward
The rise of artificial intelligence and the increasing popularity of cryptocurrency will continue to push electricity consumption to record highs in 2025 and 2026. Data centers will account for the most significant rise in electricity usage, though the report also said American homes and businesses will use more electricity for heat and transportation.
Georgia Power and Mitsubishi complete second trial blending hydrogen and natural gas fuels
Georgia Power and Mitsubishi Power have successfully completed a second trial blending hydrogen and natural gas fuels at Plant McDonough-Atkinson in Smyrna. The demonstration project is the first to validate a blend of 50% hydrogen fuel and is the largest test of its kind in the world to date. The 50% blend resulted in a 22% decrease in carbon dioxide emissions compared to 100% natural gas.
Government Accountability
Georgia adoption regulations come under fire
Recent changes in the adoption process in Georgia are causing such extensive delays that the state is no longer considered “adoption-friendly,” several adoption lawyers said. But the owner of an adoption agency in Coastal Georgia and a birth mother defended Georgia’s process as ensuring that Peach State adoptions are safe and legal.
Supreme Court revives Atlanta family’s lawsuit whose home was wrongly raided by FBI
The U.S. Supreme Court is reviving the lawsuit brought against the FBI by an Atlanta family whose home was wrongly raided in 2017. The nation’s highest court ruled in favor of Trina Martin and Toi Cliatt, who had filed a lawsuit against the federal government accusing the FBI agents of assault and battery, false arrest and other violations.
Georgia receiving more money to fight opioid crisis
Georgia is receiving $126 million as part of a nationwide settlement with Purdue Pharma and the Sackler families. The overall settlement is $7.4 billion, which will be distributed nationwide over three years.
Housing
State awards three grants in latest round of workforce housing program
Three Georgia communities will receive $6.5 million in grants, the latest round of funding through the Rural Workforce Housing Initiative Gov. Brian Kemp launched more than two years ago. The cities of Leesburg and Greensboro each will receive $2.5 million for water, sewer, drainage and road improvements while $1.5 million will help the Joint Development Authority of Gilmer County and the cities of Ellijay and East Ellijay finance infrastructure improvements
Small real estate investors reach record market share, now dominate 59% of investor purchases
Small real estate investors increased their foothold in the market last year, according to a new report from Realtor.com. Realtor.com found small investors made 59% of all investor home purchases last year. That figure, the real estate marketplace said, represented the “highest share in the data’s history” for entities that have bought ten or fewer homes.
Atlanta approves new tree protection ordinance
The Atlanta City Council unanimously approved a new tree protection ordinance. The ordinance is the first change to the current tree protections established in the early 2000s. In the new ordinance, the recompense increases to $140 per diameter inch. So, starting Jan. 1, 2026, a six-inch tree would cost a developer roughly $840, a 200% increase.
Monroe County extends subdivision moratorium through end of 2025
Monroe County commissioners voted to extend a moratorium on new major subdivisions through Dec. 31, giving officials more time to review development rules as the county prepares for significant growth. The moratorium, which began in March and was originally set to expire July 1, affects subdivisions with five or more lots.
Bonus
Two major US food producers to remove artificial dyes from products sold domestically
Kraft Heinz and General Mills say that they will be pulling artificial dyes from their U.S. products starting in 2027. The shift comes nearly two months after U.S. health officials said that they would urge foodmakers to phase out petroleum-based artificial colors.
Georgia State files construction permit for new baseball field on former Braves stadium site
Georgia State University’s long-awaited new baseball stadium in downtown Atlanta may now be moving forward. The university just filed a construction permit with the city. The stadium would be built on the site of the Braves’ old Atlanta-Fulton County Stadium, where Hank Aaron hit his 715th home run.
Juneteenth is worth the celebration
The nearly 160-year-old holiday of Juneteenth has been drawn into the “culture war.” Combatants should put down both their arms and divisive narratives. The end of slavery and the move toward a more perfect union — one in which the promised liberty of the Declaration of Independence extends to all people — is worthy of celebration. The history of the moment is important.
Quotes of Note
“The best preparation for tomorrow is doing your best today.” – H. Jackson Brown, Jr.
“I can’t change the direction of the wind, but I can adjust my sails to always reach my destination.” – Jimmy Dean
“My grandfather always said, ‘Old man Can’t is dead. I helped bury him.’ That meant we had to find a way.” – Justice Clarence Thomas
