Georgia Releases Revenues and Reserves Report for Fiscal Year 2026

ATLANTA - October 26, 2026 - Today, Georgia's State Accounting Office released its annual report on Revenues and Reserves for Fiscal Year (FY) 2026, which ended on June 30, 2026.

In total, the state reported spending down $6.3 billion in General Fund Reserves, including $4.5 billion on Amended Fiscal Year (AFY) 2026 appropriations, $1.4 billion on one-time tax credits and $372 million on the mid-year adjustment for K-12 education. These expenditures reduced the balance of General Fund Reserves from $14.9 billion to $8.7 billion, after adjusting for $141.5 million in additional revenues raised and in unspent funds during FY 2026.

During the 2026 legislative session, lawmakers enacted House Bill (HB) 463, which increased the maximum threshold of the state's Revenue Shortfall Reserve (RSR) from 15% to 20% of the previous fiscal year's revenue collections. The legislation also increased the minimum balance threshold to release funds from the RSR for appropriation from 4% to 8%. As a result, Georgia now holds $7.4 billion in its RSR and $1.3 billion in undesignated reserves, with approximately $5.8 billion available for appropriation and $3 billion required to meet the minimum RSR balance.

The primary purpose of the RSR is to help manage against instability in revenue collections and prepare Georgia for the possibility of a recession. Since the end of FY 2021, the RSR has remained full at its maximum level allowed under state law. As a result, excess funds have accumulated as undesignated surplus funds.

These figures will be updated in January 2027 to reflect any lapsed funds that were not spent by state agencies, along with funds needed to cover the suspension of the state's motor fuel tax between September 28 and November 30, 2026. This two-month suspension of Georgia's motor fuel tax is estimated to cost approximately $400 million.

Georgia also reported spending down $170.6 million in Lottery Reserves, reducing the total balance from $2.5 billion to $2.3 billion. Of this amount, $803 million is held in the Lottery Shortfall Reserve (50% of average proceeds for the past three fiscal years) and $1.5 billion is unrestricted and available for appropriation to educational programs.

"After spending down more than $6.3 billion in general fund reserves last year-the most in state history-Georgia's leaders will enter the 2027 legislative session facing increased costs due to rising inflation and widespread affordability concerns," said Daniel Kanso, PhD, Vice President of Public Policy at the Georgia Budget and Policy Institute. "Opportunities remain to use available surplus dollars in ways that set Georgians up for success in the future, such as by creating a Childcare Trust Fund. However, it is also essential to reject measures that would jeopardize the state's ability to raise enough revenue to meet the needs of its residents, and instead, look to new solutions to ensure that Georgia does not fall into a structural deficit."

Highlights from the FY 2026 Georgia Revenues and Reserve Reports:

• Georgia generated $36.9 billion in revenue in FY 2026 and spent $36.7 billion on regular appropriations, leaving $141.5 million in excess and unspent funds that would otherwise have been added to the balance of state reserves.
• Georgia ended FY 2026 with $8.7 billion in General Fund Reserves. This includes $7.375 billion in the RSR and $1.343 billion in undesignated surplus funds.
• Of the $7.375 billion in the state's RSR, $2.95 billion is reserved to meet the minimum 8% threshold required under state law and $4.25 billion may be released for appropriation by the governor. This includes $368.8 million already available for appropriation through the mid-year adjustment for education in AFY 2027.
• Last year (FY 2026), Georgia spent down $6.344 billion from its reserves, including $4.53 billion appropriated in the AFY 2026 budget, $1.44 billion for one-time tax measures and $372 million for the mid-year adjustment for K-12 education.
• The Georgia Lottery generated $1.631 billion in FY 2026 and spent $1.837 billion, reducing the total balance of Lottery Reserves from $2.517 billion to $2.347 billion.
• Georgia's Lottery now holds $803.5 million in restricted reserves and $1.544 billion in unrestricted reserves. In FY 2027, state law requires approximately $154 million or 10% of Unrestricted Lottery Reserves to be appropriated for educational purposes and programs.

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