ATLANTA, Ga. (Atlanta News First) — A newly released internal directive from Gov. Brian Kemp’s office ordering state agencies to freeze spending has ignited a high-stakes battle under the Gold Dome over whether Georgia can afford massive tax cuts while holding the line on public services.

The governor’s office stated that this year’s budget instructions are very similar to last year’s spending freeze.

“Through common sense, conservative budgeting, the State of Georgia has remained on strong financial footing the last several years and has weathered financial storms that have had worse effects on other regions,” a Kemp spokesperson said in a statement. “The governor’s latest budget instructions will preserve that foundation and keep Georgia in a strong financial place for the future.”

The directive requires state agencies to prepare bare-minimum, flat budgets for the upcoming year, despite the state’s rainy day fund holding roughly $10 billion at last check.

Wayne Huston, a local social studies teacher, said the spending freeze is a direct threat to students.

“My major concern again is the impact on children,” Huston said. “When there’s not enough funding, something is going to be cut.”

However, Republican Senate Appropriations Chairman Blake Tillery said the freeze is a necessary step of fiscal discipline as Georgia comes down from a pandemic-era economic peak.

“But now all that sugar high has finally bled out of the system, and you’re seeing a return to normal on state revenues,” Tillery said.

The Georgia Budget and Policy Institute (GBPI) responded to the budget instructions, pointing out that Georgia’s per-person state spending has decreased by about $23 when adjusting for inflation over the past eight years.

According to the GBPI, Georgia’s current $38.5 billion budget allocates approximately $264.5 million less than if the state had kept up with inflation and population growth since July 2019.

The tension centers on a high-stakes legislative choice, after Georgia recently approved House Bill 463, which could slash the state’s income tax by $6.3 billion—representing one-third of the state’s entire income tax—with no plan to replace the revenue.

“The future of Georgia’s fiscal health depends on raising enough revenue to balance the state’s budget, while meeting the needs of our residents,” said Staci Fox, GBPI President and CEO.

Senate Democrat Reshaun Kemp warned that these freezes hit education and healthcare, which account for more than three-quarters of the state budget.

“While we continue to see hospitals closed and students that are languishing in their education, we should not be cutting or freezing spending,” Kemp said.

While critics argue the tax cuts favor the wealthy, Tillery insisted that leaving money in taxpayers’ pockets is worth the hard choices.

“The best advice I can give to the next chair is you have to be willing to confidently and with conviction say no,” Tillery said.

Huston feared the freeze will force teachers to spend their recent state raises directly on classroom needs.

“That money that teachers got for a raise will probably be used for classroom supplies or other needs of students,” Huston said.

State agencies are currently preparing their bare-minimum budget requests. The financial tension could bubble over next January when lawmakers return to decide whether the state can afford to continue prioritizing tax cuts while flat-funding public services.

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