When governments implement tax cuts, they must compensate for the resulting revenue reduction by reducing public services, as demonstrated when Georgia's Governor Brian Kemp froze over $300 million in new spending to offset nearly $1 billion in lost revenue from tax cuts, affecting programs like the 988 mental health crisis line, public safety, and the Sun Bucks summer meals program.
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Gov. Kemp signs budget, freezes more than $300M in new spending追加:
A budget signing that the state capital today turned into a reality check.
>> Governor Brian Kemp touted historic investments, but as Atlanta News First Abby Kousouris explains, he then paused new spending to pay for tax cuts.
In a room built for celebration, Governor Brian Kemp signs his last budget, then drops a warning. With the tax cuts, the state must now address a reduction in revenue for the coming fiscal year of nearly $1 billion, and that's assuming we don't have an economic downturn. Kemp orders agencies to withhold more than $300 million in proposed new spending, what he calls {quote} disregards. He says core funding stays, classrooms, the 988 mental health crisis line, public safety, storm recovery, anything new now sits on ice.
Georgia will not follow in the steps of Washington D.C. But Democrats say the tax relief headlines hide the trade-off, that property and income tax cuts come with fewer services. The governor had to take a red pen and strike through so many things people depend on. It sounds great in the headlines. Headlines sound great. Oh, we're going to give you tax breaks. But what is underneath that is that you're going to lose the services that you depend on. One of the items caught in the freeze, money to run Sun Bucks, a summer meals program. Lawmakers pegged administration costs at about $2 million to unlock $143 million in federal food aid. But the governor's office says DHS estimates costs closer to $7 million. These kids are our future, and they deserve, you know, uh a leg to stand on. Kemp warns the state may still lean on savings to close the gap, but he'd rather take the heat now than hand the next governor a mess.
>> And I just wasn't going to leave the state or our next governor in that or the General Assembly, quite honestly, in that uh fiscal position. Abby Kousouris, Atlanta News First.
Next, we're watching for lawmakers and agencies to say what can be salvaged, what stays frozen, and whether any of this comes back in the amended budget next year, you can follow along with us on the Atlanta News First app or Atlanta News First dot com.
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