There is no rest for the weary, especially in politics!

The 40-day period after the legislative session ends in which the Governor has to sign (or veto) all of the bills the General Assembly passed has expired and your ACEC Georgia government affairs team is back with our regular post-signing period edition, also with a recap of the primary elections and an update on the upcoming special legislative session!

VETOES, DISREGARD STATEMENTS, AND LINE-ITEM VETOES 

In our Sine Die update, we reported on the legislature’s income tax reduction proposal, House Bill 463, which the Governor has signed into law. HB 463 reduces Georgia’s flat personal income tax rate to 3.99% by 2028. It also increases the standard deduction to $30,000 for joint filers and $15,000 for individuals. Additional increases to the standard deduction are also tied to certain state revenue growth metrics that would eventually increase those deductions to $18,000 for individuals and $36,000 for joint filers. Dependent deductions also increase to $5,000 this year, then incrementally increase to $6,000. 

The financial impact of House Bill 463 and the additional property tax reduction efforts were not fully understood in the FY 2027 budget the Legislature passed, and the shortfall was estimated at $1.3 billion. To balance the budget (as required by the Georgia Constitution), the Kemp administration line item vetoed and/or issued disregard statements (which direct state agencies to disregard the legislature’s direction on how appropriations should be spent) for over $300 million in spending. One such casualty was the safety and compliance investigator position for the Professional Engineers and Land Surveyors Board. While the funding itself was not vetoed, the Board’s additional investigator position will be put on hold indefinitely. On the positive side, the PELS Board did receive a net increase of $125,000 to its FY 2027 budget.  

The Governor also vetoed a number of bills, not on the merit of the proposals, but on a failure of the General Assembly “to account for [the] loss of revenue in the appropriations process, instead prioritizing general taxpayer relief.” For this reason the following bills were vetoed:

• House Bill 376 which would have increased tax credits for historic property rehabilitation

• House Bill 1070 which would have increased the tax credit and extended the sunset for Class III railroad track maintenance

• House Bill 1077 which would have extended the sunset on tax exemptions for certain fine arts performances and museum exhibitions

• Senate Bill 59 which would have increased the cap on the Reforestation Tax Credit 

• Senate Bill 478 which would have increased the percentage of sales tax revenue dedicated to the Georgia Outdoor Stewardship Trust Fund from 40% to 60%

SIGNED LEGISLATION 

Land Disturbance Permitting Reform  

SB 447 by Sen. Clint Dixon (R-Mulberry) has been signed by the governor and will be effective July 1. The law contains various land disturbance permit process clean-ups, including placing a 14-day “shot clock” on any additional comment review period if the initial permit application was deemed incomplete or found to violate local, state, or federal law or code. It also includes a 5-day period for a local government to determine if a received application is complete, before the initial 45-day comment period begins. There is a provision exempting Paulding and all 5 of its adjacent neighboring counties from applying the deadlines unless approved by a local referendum. 

Transportation 

House Bill 297, championed by Senator Jason Anavitarte (R-Dallas), has received the Governor’s signature. The proposal abolishes the Georgia Regional Transportation Agency (GRTA) and restructures the Atlanta Transit Link Authority (The ATL) and consolidates those assets into the Georgia Transportation Efficiency Authority (GTEA). The legislation also extends the sunset on the existing MARTA sales tax to June 30, 2067 

The Governor also signed HB 1277, the GDOT housekeeping bill, which raises the environmental evaluation threshold exemption from $100 million to $200 million for road and airport projects, with a mechanism for inflation adjustments for the threshold. HB 1277 also repeals the threshold that limits design-build projects to only 50% of the total number of construction projects in a fiscal year and creates new guidelines for GDOT to sell remnant right-of-way property upon completion of a project. The proposal also removes the requirement to have value engineering studies on all projects whose costs exceed $50 million.  

Tax Reform 

Income and property tax reductions also elicited the Governor’s support. In addition to HB 463 mentioned previously, Senate Bill 33 was the successful property tax reduction effort. The proposal added an optional 1% Local Homestead Option Sales Tax (LHOST) and a mandatory Floating Local Option Sales Tax (FLOST), without a revenue cap on local governments, which are intended as tools local governments could use to offset potential property tax reductions. 

STUDY COMMITTEES

The House appointed numerous Blue Ribbon Study Committees following Sine Die. The Study Committee on Local Government Taxation, Funding, and Budgeting, which aims to “evaluate Georgia’s local funding mechanisms to strengthen transparency, ensure fairness for hardworking taxpayers and increase fiscal accountability for local governments” will be chaired by Rep. Chas Cannon (R-Moultrie). The Study Committee on Transportation Infrastructure and Vehicle Regulation which will focus on “Georgia’s transportation networks and regulations to improve efficiency, streamline utility right-of-way coordination, control costs and strengthen safety statewide” will be chaired by Chairman Rick Jasperse (R-Jasper). Additionally, there is a Study Committee on Education Performance Metrics and Workforce Stability aimed at reviewing student success metrics and teacher recruitment and retention that we will monitor over the interim. 

SPECIAL SESSION 

Some unfinished legislative business is on the docket for the special legislative session called by Governor Kemp set to begin on June 17. We previously reported that legislation that would have extended the deadline for overhauling Georgia’s ballot counting process did not receive final approval, despite a July 1, 2026 deadline. The special session will immediately follow the June primary run-off and will address the QR code ballot counting issue as well as redraw congressional and legislative district maps following the Louisiana v. Callais US Supreme Court ruling. These new maps would be used beginning with the 2028 election cycle.

PRIMARY ELECTION UPDATES 

The 2026 primary season, one of the most expensive in the state’s history as I’m sure the many dozens of mailers you received can attest to, is almost over—to the relief of many an overstuffed mailbox. 

Key takeaways from the May 19th election include:

STATEWIDE RACES

• A run-off between Rep. Mike Collins and Derek Dooley for the Republican nomination for US Senate. The race will determine who takes on incumbent Senator Jon Ossoff in November.

• Former Atlanta Mayor Keisha Lance Bottoms was able to win the Democratic nomination for Governor outright despite a crowded primary field, while Lt. Governor Burt Jones and Rick Jackson will duke it out in the June run-off for the Republican nomination for Governor. 

• Both parties will have run-offs to determine their Lt. Governor candidates. State Senators John F. Kennedy and Greg Dolezal will fight for the Republican nomination, while State Senators Josh McLaurin and Nabilah Islam Parkes will face each other for the Democrat nomination 

• State Rep. Tim Fleming will face former Democrat Vernon Jones for the Republican nomination for Secretary of State, while former Fulton County State Court Judge Penny Brown Reynolds and Fulton County Commissioner Dana Barrett will vie for the Democrat nomination

• State Senator Brian Strickland outperformed Senator Bill Cowsert, 71.6% to 28.4% for the Republican nomination for Attorney General, while Tanya Miller performed similarly for the Democratic nomination for AG 

• Incumbent Richard Woods nearly eked out a victory, but will face Bubba Longgrear in a run-off to be the Republican party’s nominee for State School Superintendent, while Lydia Powell nabbed just over 50% to be the Democratic nominee

• Public Service Commission District 5, formerly held by Tricia Pridemore who opted to run for Congressional District 14, will see a Republican run-off between Josh Tolbert, PE, vs. Bobby Mehan. The winner will face Democrat Shelia Edwards in November.

• Both incumbent Georgia Supreme Court Justices won re-election, despite an effort by the Democratic Party of Georgia to inject part into the non-partisan race. Justice Charlie Bethel barely eked out a 2-point victory over Miracle Rankin while Justice Sarah Warren defeated former State Sen. Jen Jordan by 18 points. 

• 
  

CONGRESSIONAL RACES

• Jim Kingston is the Republican nominee to succeed Congressman Buddy Carter in Georgia’s coastal Congressional District that is likely to stay in Republican hands. Jim’s father, Jack Kingston, held this congressional seat prior to Buddy Carter. 

• Houston Gaines, a state representative and ACEC Georgia member, is the Republican nominee for Congressional District 10, which is being vacated by Mike Collins. 

• Congressional District 11, held by outgoing Congressman Barry Loudermilk, will see a Republican run-off between Loudermilk’s former chief of staff Rob Adkerson and neurosurgeon John Cowan. Republicans are favored to hold this district.

• State Representative Jasmine Clark is the Democratic Party’s nominee to succeed the late Congressman David Scott in the 13th Congressional District.

STATE SENATE RACES  

• Senate District 14, which is being vacated by Josh McLaurin to run for Lt. Governor, will have a Democratic run-off between former GDOT Board Member Kevin Abel and Nathalie Kanani.

• Former State Representative Mike Dudgeon is the Republican nominee for Senate District 27, Senator Greg Dolezal’s old seat.

• State Representative Saira Draper has won the nomination in deep blue District 44 in a bid to replace retiring State Senator Elena Parent.

• Senator and ACEC Georgia member Frank Ginn was successful in his bid for re-election against a well-funded opponent!

• Senate District 51, being vacated by transportation advocate and former Senate Majority Leader Steve Gooch, will see a June run-off between State Representative Will Wade and attorney Philip Milam.  

STATE HOUSE RACES

• Numerous state representatives were primaried this year, however, all but two incumbents won their re-elections 

• State Representative Mary Ann Santos (D) is in a June run-off against Kim Smith, who garnered more votes

• Chairman Bill Werkheiser was ousted in a surprise defeat by Bradley Anderson for the southwest Georgia House District 157

• The state house could potentially flip in November, the at-risk seats for Republicans are:

• District 48 (R): Scott Hilton is the incumbent, and the seat leans slightly R (51.5% R vs. 46.2% D)

• District 53 (R): Deborah Silcox is the incumbent. This seat leans slightly D (49.4% D vs. 48.5% R)

• District 99 (R): incumbent Matt Reeves, a longtime friend of ACEC Georgia, faces a tight district fight in November (49.1% R vs. 48.6% D)

• District 105 (R): incumbent Sandy Donatucci will rematch against former Representative Farooq Mughal in this 50.6% R vs. 47.2% D district

• District 108 (D): is an open seat being vacated by Rep. Mack Jackson, the seat is slightly R leaning (50.7% R vs. 48.4% D). Trey Sheppard (R) and Tryone Evans (D) will face off in November

• District 151 (R): Republican incumbent Mike Cheokas will be in a tight race for this district which leans slightly R at 52.7% R vs. 46.4% D

• District 154 (R): A perpetual race to watch, the Dean of the House (longest serving member of the House) Gerald Green (R) is in a lean D seat, (51.6% D vs. 47.8% R)