Gov. Brian Kemp urges tax rebate and income-tax cut, boosts for schools and public safety in State of the State

ATLANTA — Gov. Brian P. Kemp delivered the State of the State to a joint session of the Georgia General Assembly on Jan. 13, outlining an agenda that blends tax relief, education spending and public-safety proposals while touting record reserves and recent job gains.

Kemp proposed a one-time $1 billion tax rebate intended to return surplus revenue to taxpayers and said his administration will seek a further 20‑basis‑point reduction in the state personal and corporate income tax rate, taking it to 4.99%. He framed the measures as both immediate relief and part of a broader effort to keep Georgia competitive for business and jobs.

The governor also proposed a $2,000, one-time pay supplement for all state employees, including educators and public safety officers, and said the administration will increase funding for higher-education initiatives. Kemp described a $325 million endowment for a new "dream scholarship," characterized in his remarks as a first-of-its-kind, need‑based program designed to expand access to college for students lacking financial resources.

Kemp said the state has used cash rather than debt to fund roughly $4.1 billion in capital projects in recent years and forecast that those choices would reduce future interest costs. He called attention to a rainy-day fund at what he described as a record level and argued that the state should preserve fiscal reserves even while returning one‑time money to taxpayers.

On public safety, Kemp proposed enhanced retirement support for state law-enforcement officers, including a higher state match to 401(k)-style accounts and an eventual maximum matching rate of 15% by year 10 of service, which he said would improve recruitment and retention.

Kemp highlighted anti–human‑trafficking and gang-enforcement efforts, noted investments in school safety (which he said total more than $511 million during his administration), and emphasized economic development projects that, he said, created jobs outside metro Atlanta.

Direct quotes from the address included Kemp saying his plan would "return the surplus revenue" to taxpayers and that "we keep your tax burden low." He also stated that the proposed tax cut would "come a full 3 years ahead of schedule." (All direct quotations are from the governor’s remarks as recorded in the joint session transcript.)

The address was followed by routine legislative business; no floor votes on the governor’s budget or tax proposals were recorded in the joint session.