Peach Tree Times

After a record-breaking surplus, Gov. Brian Kemp is ordering state agencies to stay at bay and not spend excess funds during the upcoming year.

The unemployment rate in Georgia has dropped for 13 straight months and currently sits at 4%. This is a rate below the July national average of 5.4%, according to the Department of Labor.

The Governor's Budget Director Kelly Farr said the state's economy gained traction in 2020 due to worries of an economic downturn from COVID-19, the Atlantic Journal Constitution reports.

“As we continue to see increasing economic activity, strong consumer demand and continued unemployment declines, we expect our economy to see solid growth through the current fiscal year and into fiscal year 2023 (which starts July 1),” Farr said, as reported by the AJC. "As our economy and our state grows, so too do demands of state government as we strive to meet the health, safety and education needs of our citizens."

Despite the economic recovery and state revenue, Kemp is directing state agencies to "hold the line" on spending their reserves, AJC reports.

The AJC reports that the General Assembly "backfilled" approximately 60% of school budget cuts earlier in the year. While budget writers argue that schools don't need additional funding since they received billions in pandemic-related funding, Georgia Senate Minority Leader Gloria Butler (D-Stone Mountain) argues otherwise.

“While the governor has partially restored pre-pandemic budget levels, Georgia still falls short in educational investment,” Butler told the AJC. “The jobs of tomorrow are built on the education opportunities of today.”