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Kemp warns of special session to pass lawsuit limits, pitches income tax cut and disaster relief

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Kemp warns of special session to pass lawsuit limits, pitches income tax cut and disaster relief

By Jill Nolin Ross Williams
Kemp warns of special session to pass lawsuit limits, pitches income tax cut and disaster relief
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Gov. Brian Kemp said "doing nothing is no longer an option" when it comes to passing new limits on lawsuits in his State of the State speech Thursday. Ross Williams/Georgia Recorder

This story was updated at 7 p.m. on Thursday, Jan. 16, 2025, with more information. 

In a speech focused on resiliency, Georgia Gov. Brian Kemp warned of dark clouds ahead for the state’s economy if the Legislature does not pass new limits on lawsuits – and signaled he might call a special session later this year if “meaningful, impactful” measures are not passed this winter.

Kemp did not outline specifics Wednesday but devoted a significant portion of his State of the State address emphasizing what he argues is the need for sweeping changes and how hard he plans to push for them.

The governor said his soon-to-be-unveiled proposal will be “comprehensive but fair.”

“We will be fair to all involved in this important debate, and we will work together to pass legislation that strikes the right balance and puts hardworking Georgians first,” Kemp said. “But I also want to be very clear: there is always room for compromise, but there will be no room for excuses, half-measures, or failure.

“Whether it’s this legislative session, or a second one later this year, we will achieve meaningful, impactful tort reform,” he added.

Shortly after Kemp finished speaking, proponents of a litigation overhaul released statements from industry groups backing the governor’s overarching call for changes. The Georgia Hospital Association said it hopes to see health care liability reform, and Georgia Retailers pointed to the state’s current premises liability laws as a problem.

The governor also appealed directly to Democrats in his speech, making the case for bipartisan support for an overhaul to the state’s litigation rules.

“Stabilizing the cost of car insurance and ensuring families have access to affordable housing is not partisan – it’s common sense,” he said. “And giving working people and small business owners a chance at the American Dream is about who we are as a state – not what political party we support.” 

Kemp noted the complexity of the issue, but said “doing nothing is no longer an option.”

But Democrats from both chambers had the same reaction to the governor’s comments: Where is the bill spelling out specific proposed changes?

“Democrats are not the problem here. Democrats are waiting to be engaged on this issue, but what I really would like to see the Republicans talk about is not just the trial lawyers, but the insurance companies,” said Rep. Tanya Miller, an Atlanta Democrat who is the House minority caucus chair. “It is not, I think, accurate to say that jury verdicts are the sole reason for why insurance rates are rising.

“I think the tort reform debate needs to be expanded, and it needs to be expanded to include an assessment of whether or not insurance companies are being transparent and are being held accountable to our citizens,” Miller also said.

Some Democrats signaled that there may be room for common ground on an issue affecting all Georgians but said the details matter.

“Nobody likes insurance companies and nobody likes lawyers, so at the end of the day, we’ve got to look at the details and keep in mind what’s in the best interest of the citizens in Georgia,” said House Minority Leader Carolyn Hugley, a Columbus Democrat.

The governor also releases his spending plans

Kemp also released his new spending plans Thursday, proposing state budgets that include about $2 billion in cuts and a one-time refund while planning hundreds of millions in new spending.

The governor’s proposed $40.6 billion amended budget for this year includes a $615 million recovery package for Georgians harmed by hurricanes Helene and Debby as well as November flooding in southeast Georgia. 

Next year’s spending plan is set at $37.7 billion.

The total construction package is approximately $1.5 billion, funded in cash, with $639 million funded in the 2025 amended budget and $867 million funded in the fiscal year 2026 budget.

Some of the major projects in the proposed budget include a new health sciences research building at Augusta University, a new ferry for Sapelo Island off the coast, infrastructure renovations and repairs at the Atlanta farmers market, a new recovery facility for victims of human trafficking, two new law enforcement training facilities, a new 81-bed women’s youth detention center and a new medical examiner’s building, both in the Macon area.

At the same time, the governor is calling for an income tax reduction to 5.19% from 5.39%. That cut is in addition to a $1 billion rebate Kemp announced in October, which is subject to legislative approval, which would return $250 to single tax filers, $375 to head-of-household filers or $500 to married couples filing jointly.

Kemp said Georgia’s history of conservative budgeting allows for the government to lower taxes and also fund priorities like $50 million in one-time school safety grants or $10.4 million to hire new corrections officers.

“In Georgia, we don’t conduct the people’s business with trillion-dollar deficits or endless continuing resolutions,” Kemp said in his speech. “Just because we take in more money, doesn’t mean we need to create new big government programs to fund for eternity. Instead, we budget conservatively, fund our priorities, keep government efficient, cut taxes, and then return your money back to you.” 

Kemp’s budget proposals set the spending limit, but the plans must still be approved by state lawmakers, who cannot add money to the overall budget but can move dollars around to leave their imprint on the new spending plans.

Under Kemp’s proposal, the budget would draw down about $4 billion from the state’s $16.4 billion reserve fund.

Democrats argue Georgians suffer when the state keeps billions in reserves.

“There’s a difference between conservative budgeting that the governor talked about and actually hoarding money that can go to resources, and that’s the key,” said Senate Minority Leader Harold Jones, an Augusta Democrat.

Jones said the state’s reserves should go toward priorities like improving public education, expanding health care coverage or lowering child care costs.

“People are actually hurting out there and they need these particular resources,” he said.