Budget week has come and gone, but the cold is still with us.  

Last week, we reported on some of the Governor’s major initiatives for this year’s budget, including his proposal for $2.35 billion in new transportation infrastructure funding. This past week, lawmakers held their annual marathon joint appropriations hearing which included a presentation by the State Economist, Robert Buschman.  

Mr. Buschman’s somewhat chilly outlook (economics has been referred to as “the dismal science,” after all) seems to have mimicked the weather. He projected slow job growth and nagging inflation for 2026, which will heighten ongoing affordability concerns for Georgians. He did state, however, that personal debt is down and assets are up, though rising prices, record business bankruptcies, and trade uncertainty from tariffs will likely pose challenges this year. His projections do not predict an actual recession, but polls show that confidence in the economy is low for both consumers and business owners and that these types of responses are “typically associated with recessions”. He further reiterated that the “real problem” is that employers are not keeping employee incomes in pace with inflation.  

The previous week, the Governor indicated in his State of the State address that the $10 billion that will be left in the state’s surplus and reserves if the legislature follows through with his FY 2026 recommendations, will be necessary to weather the storm ahead. During the appropriations hearings on Tuesday, he stated that  the conversative budgeting approach his administration has taken throughout this tenure “has allowed us to store up strategic reserves for the next economic downturn, ensuring you all or future legislators won’t be forced to cut critical services for Georgians when, not if, the next economic crisis hits.” 

That same approach has simultaneously allowed regular, incremental decreases in the state’s personal income tax rate that will help ease some of the affordability concerns for Georgians without sacrificing state services. This year, lawmakers expect to be able to further reduce the income tax rate to 4.99% later this session.  

This week, lawmakers are meeting for legislative days 6 through 9, though today, due to the weather, both chambers gaveled in and out without conducting any legislative business, in order to stay in line with the previously passed adjournment resolution. They are expected to resume regular business tomorrow.  

See you next week! 

LEGISLATION ACEC GEORGIA IS FOLLOWING:  

Local Government   

HB 152 by Representative Matt Reeves (R-Duluth): would extend the existing Mini Brooks Act to local governments. This would require Qualifications-Based Selection for the procurement of A/E services for projects where professional services are estimated to be $75,000 or more or for any project with a total preliminary construction cost of over $1 million.  

Status: Assigned to the House Governmental Affairs Committee  

Position: SUPPORT  

HB 168 by Representative Mitchell Horner (R-Ringgold): would require any local proposal to reimpose a previously passed SPLOST to pass the General Assembly as a local bill (i.e., if a jurisdiction wants to reimpose a SPLOST, they will have to go through the General Assembly to do it.) 

Status: Assigned to the Ways & Means Committee  

Position: Reviewing   

HB 317 by Representative Ron Stephens (R-Savannah): would create a new option for local governments to help finance essential infrastructure needs called a “Workforce and Residential Infrastructure District” (WRID). If approved by the local government, this would allow landowners within the district to self-impose taxes to fund these public infrastructure projects & improvements. A constitutional amendment would be required for the enactment of the legislation which has been filed as HR 192 by Representative Ron Stephens (R-Savannah).  

Status: Assigned to the House Ways & Means Committee (was originally assigned to Governmental Affairs). The sponsor and advocates agree that this should be a 2 year bill, as it requires a constitutional amendment. This initiative is back this session.  

Position: SUPPORT   

HB 531 by Representative Matt Reeves (R-Duluth): proposes to extend the period for plaintiffs to provide notice (ante litem notice) for an intent to sue a city from six months to twelve months. The legislation also has a provision to limit the liability for cities at $3 million per person and $5 million per occurrence.  

Status: Passed the House Judiciary Committee; Passed the House 161 to 13; Passed the Senate Judiciary Committee; Recommitted to the Senate Judiciary Committee  

Position: Monitor  

HB 812 by Representative Mike Cheokas (R-Americus): proposes to reinforce the shot clock on local government plan reviews by limiting the number of rounds an application may undergo. The legislation continues to enforce the 45-day turn around requirement for local governments but would require a new 14-day turn around where a local government would then be required to issue or deny the permit. Any comments made by the local government would need a citation for the exact local, state, or federal rule or regulation they violate. The main purpose of this bill is to limit a local government’s ability to perpetually run the clock on a permit issuance or denial and end the practice of unlimited rounds of comments where new items are introduced during subsequent rounds.  

Status: Heard in House Governmental Affairs subcommittee on State & Local Government.  

Position: Support 

SB 51 by Senator Ed Setzler (R-Acworth): this legislation would require qualifications-based selection for the procurement of A/E services for local government projects where the professional services cost is estimated to be $75,000 or more, or if the project cost is estimated to be $1 million or more. This is not a prohibition on cost being a factor, this simply shifts the consideration of cost to a second stage of negotiation after the firms have been ranked, rather than cost being an initial evaluation.   

Status: Passed the Senate State and Local Governmental Affairs Committee unanimously; passed the Senate 54 to 1; passed the House Governmental Affairs Committee; recommitted to the House Governmental Affairs Committee 

Position: SUPPORT  

SB 151 by Senator Brandon Beach (R-Alpharetta): proposes the creation of a “Joint Development Authority of North Fulton Municipalities”. A committee of seven directors would be created with one representative each from Alpharetta, Johns Creek, Milton, Mountain Park, Roswell, and Sandy Springs, with a seventh member being appointed by the committee.   

Status: Passed out of the Senate State and Local Governmental Affairs Committee; passed the Senate 32 to 23. Passed the House Intragovernmental Coordination Committee. The House passed this with a substitute, however the substitute did not receive a final agree on the Senate side in 2025. With Senator Beach’s resignation to serve as US Treasurer, it is unclear what is happening to this measure.  

Position: Monitor  

Industry & Professions  

HB 107 by Representative Bethany Ballard (R-Warner Robins): would require all professional licensing boards in the state to adopt a process by which spouses of military members or transitioning service members may obtain a digitally verifiable license.   

Status: Passed the House Defense & Veterans Affairs Committee  

Position: Monitor  

SB 28 by Senator Greg Dolezal (R-Forsyth County): this legislation aims to reduce red tape and reconfigure how the regulatory environment operates in Georgia by allowing the legislature to take a more active role in regulatory activities.   

Status: Passed the Senate Economic Development & Tourism Committee; passed the Senate 31 to 23. Passed the Senate Budget and Fiscal Affairs Oversight Committee; recommitted to the Senate Budget and Fiscal Affairs Oversight Committee. 

Position: Monitor  

SB 207 by Senator Brian Strickland (R-McDonough): would provide a preclearance process for the licensing of individuals with criminal records who apply for a professional license in the state.  

Status: Passed the Senate Judiciary Committee; passed the Senate 55 to 0. Passed the House Judiciary Committee; Passed the House 170 to 0; Senate agreed to the House version with a Senate floor amendment, so it needs an agree on the House side before it can pass. Still pending an agree.  

Position: SUPPORT   

Transportation   

 HB 76 by Representative Stacey Evans (D-Atlanta): would require the Department of Transportation to host public hearings for local transportation projects of significant impact.  

Status: Assigned to House Transportation Committee  

Position: REVIEWING   

HB 387 by Representative Brad Thomas (R-Holly Springs): would require a service delivery agreement to include a growth boundary agreement component.  

Status: Assigned to the House Governmental Affairs Committee  

Position: Monitor  

Water & Environmental  

HB 559 by Representative John Carson (R-Marietta): this legislation would revise the sunset date on the sales tax exemption for the equipment used in data centers from 2031 to 2026.   

Status: Assigned to the House Ways & Means Committee  

Position: Monitor   

SB 34 by Senator Chuck Hufstetler (R-Rome): would prohibit an electrical utility provider from recovering the cost of servicing a data center from regular ratepayers.   

Status: Assigned to Senate Regulated Industries & Utilities Committee  

Position: Monitor  

SB 410 by Senator Matt Brass (R-Rome): proposes to end the sales & use tax exemptions for new data centers, effective upon signature of the governor.  

Status: Referred to the Senate Finance Committee 

Position: Reviewing