ATLANTA, Ga. — Georgia’s famous rainy-day pile is still large, but it shrank sharply last year. The state’s annual Revenues and Reserves report, released Monday by the State Accounting Office, shows Georgia pulled about $6.3 billion out of its general fund reserves in the fiscal year that closed June 30, the largest drawdown in state history.
Most of that money, about $4.5 billion, paid for the amended 2026 budget. Another $1.4 billion covered one-time tax credits, and $372 million went to the mid-year adjustment for K-12 schools. After those withdrawals, plus $141.5 million in extra revenue and unspent money that flowed back in, the general fund cushion went from $14.9 billion down to $8.7 billion.
The report tracks taxes, fees, assessments and other collections sent to the Office of the State Treasurer. For the year, Georgia took in $36.9 billion, while regular appropriations used $36.7 billion.
Lawmakers changed the rules for the state’s main savings account this year. House Bill 463 raised the cap on the Revenue Shortfall Reserve from 15% to 20% of the prior year’s revenue and doubled the floor that must stay untouched from 4% to 8%. The account now holds about $7.4 billion, with roughly $1.3 billion more in undesignated surplus.
The lottery side also dipped. Lottery reserves fell by $170.6 million to about $2.3 billion, with $1.5 billion unrestricted and available for education programs.
Not every cost is counted yet. Georgia’s pause on its fuel excise tax, which began Sept. 28 and now runs through Nov. 30, is expected to cost about $400 million and will show up when the figures are revised in January 2027.
The Georgia Budget and Policy Institute, which analyzes state finances, said leaders head into the 2027 legislative session facing rising costs and affordability worries, and urged them to avoid tax moves that could push the state toward a structural deficit.
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