Gov. Kemp Sets New Precedent with $242 Million in Non-Binding Budget Disregards, $13.1 Million in Line-Item Vetoes

With Gov. Brian P. Kemp’s signature, Georgia’s FY 2024 budget became law ahead of the state’s next fiscal year, which begins on July 1, 2023. However, Gov. Kemp’s approval of the spending plan was accompanied by a wave of 134 non-binding orders to either fully or partially disregard budget language and appropriations comprising $242 million in state spending, along with nine line-item vetoes, which cut $13.1 million from the budget entirely. In effect, these actions will withhold tens of millions from the state’s ailing health care system and safety net, block $6.3 million in funding to the Department of Education to cover the cost of breakfast and lunch for reduce-pay students and slash a host of priorities championed by lawmakers across the aisle. Taken together, these actions are relatively unprecedented. Cumulatively, throughout the previous four years of Kemp’s governorship, from FY 2020 –2023, 49 non-binding disregards were issued on $85 million of state spending and nine line-item vetoes were issued on $3.2 million in allocations.

Kemp Issues More Budget Vetoes and Disregards in FY 2024 Than in Previous Four Years Combined

Under Georgia’s constitution, the governor is entrusted with authority to veto “any appropriation” through the line-item veto. Throughout Kemp’s governorship, rather than rely primarily on the line-item veto to modify appropriations legislation, the governor has traditionally employed “nonbinding disregards” and signing statements to provide additional instructions to relevant state agencies and, in some cases, to explain why funds will be withheld for provisions approved by the General Assembly. This blending of executive authority demonstrates the wide range of powers held by the state’s chief executive over state appropriations, which Gov. Kemp has expanded use of in recent years. Although described as non-binding, these orders have a similar effect to line-item vetoes in practice, while preserving the availability of state funds for other purposes or to be appropriated in subsequent amended appropriations plans.

Georgia law also enables the governor to require agencies to reserve appropriations for budget reductions and to withhold agency allotments to maintain spending within projected revenues, which the governor holds unilateral authority to set in establishing the state’s revenue estimate. In practice, this authority offers the state’s chief executive wide latitude to exercise control over funding allotted to state agencies.

Of approximately $255 million in non-binding budget disregards and line-item vetoes issued by Gov. Kemp, the lion’s share of these cuts will reduce funding for health and education programs and services. Several of these items only slightly modify the spending plan approved by the General Assembly, such as the $11 million allocated to annualize the cost of 513 NOW/COMP waiver program slots for individuals with intellectual and developmental disabilities. In this case, the governor instructed the Department of Behavioral Health and Developmental Disabilities to simply utilize funding for direct waiver expenses only, while removing the possibility of covering administrative overhead with these funds. In most cases, however, funds are withheld entirely from the programs and services approved by the General Assembly. Unless instructions state otherwise, appropriations will not be made to agencies for budget items that were disregarded, and the General Assembly will have the opportunity to reengage on these measures when the legislature convenes for its next session.