Georgia Governor Brian Kemp has unveiled a sweeping budget and tax relief plan that could put money directly into the pockets of Habersham County residents while delivering another round of bonus checks to teachers and state employees.
In his final State of the State address at the Georgia Capitol, Kemp announced proposals that would return more than $2 billion to taxpayers through a combination of tax rebates, income tax cuts, and employee bonuses — continuing a trend that has already delivered nearly $9.7 billion in tax relief since 2021.
“These investments were possible because we rejected the idea that, just because government takes in more money, it should turn right around and spend it on more government,” Kemp told lawmakers.
What Habersham County Residents Could Receive
If approved by the General Assembly, Georgians would receive a fourth income tax rebate in five years:
- Single filers: up to $250
- Heads of household: up to $375
- Married couples filing jointly: up to $500
In addition, Kemp proposed reducing Georgia’s income tax rate from 5.19% to 4.99%, continuing a multi-year effort that has already lowered the rate from 5.75% in 2022. For working families in Habersham County, the lower rate means smaller tax bills year after year.
$2,000 Bonuses for Teachers and State Employees
Habersham County educators would also benefit under Kemp’s revised fiscal year 2026 budget, which includes $2,000 one-time bonus checks for teachers and other state employees.
The $42.3 billion revised budget also includes:
- $264 million for school construction and renovation
- $12 million to reduce pre-K class sizes
- $1.5 billion to support growing student enrollment statewide
Local school leaders say state investments like these are critical as rural systems continue to face staffing challenges, facility needs, and rising enrollment pressures.
Infrastructure, Scholarships and Roads
Kemp’s proposal also includes funding that could impact Northeast Georgia directly, including:
- $250 million for local road projects
- $200 million for new interchanges on Ga. 316
- $1.8 billion for toll lanes on I-75 south of Atlanta
- $325 million for a state scholarship endowment for low-income college students
The scholarship fund is designed to eventually reach $1.8 billion, helping more Georgia students afford college — including those from Habersham County.
Looking Ahead to 2027
Kemp also outlined a $38.5 billion general fund budget for fiscal year 2027, which includes:
- $16.9 billion in bond funds for state park renovations
- $26.8 million for more correctional officers
- $264 million for school construction
- $1.5 billion to maintain core state services
For the first time in three years, the state would begin borrowing again for capital projects, with more than $650 million in planned borrowing.
Budget Surplus Shrinks, But Remains Strong
If all proposals pass, Georgia’s budget surplus and rainy day reserves would decline from about $14.6 billion to roughly $10 billion — still high by historical standards.
Kemp cautioned lawmakers that federal Medicaid cuts and other federal budget changes could create future financial pressure for the state.
“Showing fiscal restraint… may not be popular or easy,” Kemp said, “but the Georgia of today… does not stand on sticks made of ‘easy’ or ‘politically convenient.’”
What Happens Next
Kemp’s plan now heads into the legislative process, where House and Senate leaders will shape the final budget. House Speaker Jon Burns has emphasized literacy initiatives, while Lt. Gov. Burt Jones has focused on eliminating Georgia’s income tax altogether.
Joint budget hearings are scheduled to begin next week.
Why It Matters Locally
For Habersham County residents, Kemp’s proposal could mean:
- Direct tax rebate checks
- Lower long-term income taxes
- Bonus payments for teachers and state employees
- Continued investment in schools, roads, and student scholarships
While nothing is final yet, the proposal sets the stage for one of the most impactful financial packages Georgia has seen in years — with effects reaching from Atlanta to rural communities like Habersham County.
