Georgia State Agencies Submit Budget Requests for Fiscal Year 2028; Amended Fiscal Year 2027

ATLANTA - Georgia's state agencies have submitted requests for the upcoming Amended Fiscal Year (AFY) 2027 and Fiscal Year (FY) 2028 budgets. This comes after Gov. Brian Kemp instructed agencies to maintain largely flat budgets next year, though Georgia's next governor and General Assembly will ultimately be responsible for writing the state's future spending plans.

Overall, state agency budget requests increased from $38.5 billion in the current fiscal year to $38.8 billion in AFY 2027 (+1%) and $39.6 billion (+3%) in FY 2028. Approximately 85% of new funding requested for FY 2028 would cover increased costs for Medicaid ($343.7 million), PreK-12^th grade public education ($260.8 million) and higher education ($374.8 million). Agencies also collectively submitted an additional $1.2 billion in requests for capital projects.

As the state struggles to meet the basic needs of its residents across health care, food assistance and public education, lawmakers enacted HB 463 during the 2026 session. If fully implemented, this legislation would eliminate one third of the state's entire income tax, which funds about half of the state budget, reducing revenues by $6.3 billion. Because the bill does not offset these revenue losses, lawmakers are likely to face continued challenges next year in meeting their constitutional obligation to balance Georgia's budget. In May, Gov. Kemp issued more than $344 million in executive budget cuts due to the immediate revenue-decreasing effects of this legislation, which will cost approximately $1.2 billion in its first full year.

"The more than $1.1 billion in new FY 2028 requests-submitted under a process that discouraged agencies from seeking all the resources they need-makes clear that Georgia must raise additional revenue to meet the basic needs of a growing state," said Staci Fox, CEO of the Georgia Budget and Policy Institute. "State leaders must act now to reverse lost ground and raise revenue in ways that support working Georgians and fund high-quality public education, health care and assistance for our most vulnerable residents."

Highlights from agency budget requests for AFY 2027 and FY 2028 include:

• Medicaid and Peachcare: The Department of Community Health is requesting an additional $152.9 million (+2.8%) in AFY 2027 and $343.7 million (+6.3%) in FY 2028 for Medicaid and Peachcare based on projected utilization.
• Department of Education: Requesting a total increase of $139.6 million (+1%) in AFY 2027 and $244.8 million (+1.7%) in FY 2028, including $81.3 million for an AFY 2027 midterm adjustment based on enrollment growth and $63.9 million for the same purpose in FY 2028. Equalization costs are also projected to increase by $95.3 million in FY 2028. Following the passage of major legislation to improve literacy in Georgia, the DOE is requesting $39.8 million in FY 2028 to cover additional QBE formula costs for literacy coaches.
• Board of Regents of the University System of Georgia: Requesting a total addition of $234 million in FY 2028 (+6.1%), which includes $188.1 million to cover a 4.4% increase in formula-funded credit hours, $3.9 million in maintenance and operations funding, $30.4 million for changes in health benefit costs for active employees and retirees, $19.7 million for the School of Medicine at the University of Georgia and $1.2 million for the School of Nursing at the University of Georgia.
• Student Finance Commission: Projecting that the cost of HOPE Scholarships at public schools will increase by $32.8 million (+3.5%) in AFY 2027 and $90.9 million (+9.7%) next year. In FY 2028, an additional $1.4 million was also requested for HOPE Scholarships at private schools, along with an additional $12 million for Dual Enrollment (+9.2%).
• Technical College System of Georgia: Projecting that an 8.9% increase in enrollment and a 1.7% increase in square footage will increase costs by $33.3 million, along with $2.5 million to reflect an 8.7% increase in enrollment for high-cost programs.
• Department of Transportation: Requesting a total increase of $94.9 million in FY 2028 (+3.3%).
• Department of Early Care and Learning: Requesting $16 million for the final year of a four-year plan to reduce classroom sizes from 22 to 20 kids.
• State Courts and Judicial Branch: Requesting a total addition of $1 million (+0.3%) in AFY 2027 and $60.6 million (+17.5%) in FY 2028.

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