Georgia Starts Fiscal Year 2026 with $14.6 Billion in General Fund Surplus Accounts

This week, the state released its annual Georgia Revenues and Reserves report, which provides information on the state's financial position after the conclusion of the 2025 fiscal year (FY), ending June 30, 2025.

The 2025 fiscal year marked the first instance since 2020 that the State of Georgia released a portion of its undesignated reserves. This came in the form of a spend down of up to $2.7 billion in undesignated reserves and a one-time income tax rebate estimated at up to $1 billion. After accounting for the undesignated reserves release, the report shows that Georgia started its 2026 fiscal year on July 1, 2025, with more than $14.6 billion in general fund reserves, which includes $5.6 billion in its Revenue Shortfall Reserve (RSR) and $9.1 billion in undesignated reserves. These funds are equivalent to approximately 39% of state general funds raised, with the RSR at its capacity of 15% authorized under state law and nearly 25% in undesignated surplus. Overall, the state raised approximately $1.5 billion over the adjusted fiscal year (AFY) 2025 revenue estimate issued by Gov. Kemp, with nearly $39 billion in total state treasury receipts.

"Georgia remains in a strong fiscal position, with a historic opportunity to make major investments in our future by addressing gaps in the availability and affordability of child care and health care through the use of surplus funds," said Danny Kanso, Senior Fiscal Analyst and Director of Legislative Strategy with the Georgia Budget & Policy Institute. "After allocating billions for income tax rebates and long-term infrastructure projects, Georgia remains well positioned to address the greatest economic challenges facing families across our state by making child care and health care more accessible and affordable. Further, with state agencies and programs requesting an additional $1.3 billion in FY 2027 to keep services level for Georgians, state leaders should remain cautious of the fiscal environment ahead and reject risky proposals that could upend Georgia's budget system."

Summary of key information:

• Georgia raised $38.95 billion in total treasury receipts in FY 2025, about $1.5 billion more than Gov. Kemp's estimate of $37.5 billion, which was supplemented by up to $2.7 billion in undesignated reserves.
• As of the conclusion of the 2025 fiscal year, the state reports:
  • $5,582,959,810 in its Revenue Shortfall Reserve (the maximum allowed, which is equivalent to 15% of state general fund receipts).
  • $9,052,884,468 in undesignated reserves, which can be freely allocated (equivalent to 24% of state general fund receipts).
  • $2,517,754,396 in reserves for the Lottery for Education, an increase of $105 million from the previous year, including $1,721,489,492 in unrestricted reserves that can be freely allocated.

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