(Part-1) Raise pay and higher education expenditure headline Georgia Gov. Brian Kemp's budget proposal

 The governor of Georgia, Brian Kemp, is calling for a significant increase in spending after years of keeping it well below the state's income collection.

The Republican governor has proposed an extra $5 billion in expenditures for the current budget, which runs through June, according to figures issued on Thursday

As mentioned in his State of the State address, Kemp has proposed a $3.6 billion increase in spending in the 2025 budget, which would go into effect on July 1, exceeding this year's initial budget. This increase would cover the salary increases for nearly 300,000 state workers and teachers.

With $5.4 billion already put away, Georgia's rainy-day fund is at the maximum amount allowed by law—15% of state earnings. Also, after three years of operations, it has accumulated a surplus of $10.7 billion. Only $8.7 billion would remain after Kemp's proposed expenditure of $2 billion from the surplus.

Because of the state's surplus, Kemp has insisted that Georgia pay in full for all of the building and remodeling projects he has proposed. The state has borrowed money every year for the past several years, according to the Office of Planning and Budget. 

 Georgia raised $880 million from bond sales in July. There will be a $1.3 billion savings in interest charges over the next 20 years if everyone pays with cash.

A state employee pension fund would be strengthened with $500 million from Kemp's proposed budget, which also includes $1.5 billion for road development and maintenance, $250 million for water and sewer projects, and $250 million for grants to encourage business.

Under Kemp's plan, Georgia will allocate $37.5 billion in the current budget and $36.1 billion in 2025. Tax and other revenues would decline by almost 7% through June, according to Kemp's gloomy revenue forecast. The decline in state tax income is not as severe as it may be at the moment.

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