Georgia’s regulatory code has grown steadily since the Secretary of State’s office began tracking rules and regulations in 1965. While the General Assembly is tasked with passing laws, the majority of Georgia’s regulations actually come from unelected state employees working in the many agencies that make up Georgia’s executive branch.
Regulations are enacted for several reasons including public safety and quality control, but often it is unclear whether they practically achieve their policy goals or generate benefits worth the costs they impose.
Worse yet, without being subject to periodic review, regulations tend to build up unchecked over time, which has negative impacts on industry and economic growth in the jurisdictions they impact. In particular, small businesses experience negative results.
The federal government’s vast landscape of regulation has been shown to have negative impacts including higher poverty, lost jobs and inflation. Manufacturers also bear a disproportionate share of regulatory burden, with one analysis showing that the average American manufacturer pays $29,000 annually per employee – more than double what the average U.S. company pays. Small manufacturers face an even greater burden. The highest regulatory costs among U.S. firms – an estimated $50,100 per employee per year – are incurred by manufacturers with fewer than 50 employees. It was also estimated that U.S. regulation alone would account for the ninth-largest economy in the world.
Naturally, unnecessary regulation from the state only compounds these issues.
A recent study of the regulatory landscape across America ranked Georgia as the 26th-most regulated state. What does that mean? And what can we do about it? We talk about Georgia’s regulatory environment in our new report. We also have the latest news and analysis from the last week, including:
- School zones eligible for Georgia Promise Scholarship announced
- Georgia’s tax climate ranked 26th nationally
- Georgia lawmakers propose sweeping AI policies, privacy and ethics laws
- Black Friday, Cyber Monday sales exceed expectations
Have a great weekend,
– Kyle Wingfield
Friday’s Freshest
TORT REFORM: Gwinnett County slapped hard by Georgia Court of Appeals
Imagine that you own a company, and your company gets sued, but the judge overseeing the trial won’t allow you or your attorneys to say or do much to defend yourselves in court. That’s exactly the position that the Ford Motor Company found itself in in Gwinnett County. The end result was a $1.7 billion verdict against Ford. Legal experts say that, as far as they know, this was the largest ever judgment against a private company in all of Georgia’s history. Last month, the Georgia Court of Appeals remanded that pricey judgment.
Georgia’s tax climate ranked 26th nationally
Each year, the Tax Foundation rates the states based on their tax codes. In the latest edition of its rankings, Georgia came in 26th. Considering that the index also includes the District of Columbia, that places our state exactly in the middle nationally: 25 above us and 25 below us. As in the past, Georgia’s best performance came on corporate taxation, where it rated 12th best. Did Georgia rate poorly in any areas, and how did it compare to neighbors?
Tech services expand access to higher education
At a time when it’s clear that many Americans are dissatisfied with higher education, the Department should be encouraging institutions to seek out fruitful partnerships and new dynamics. Federal efforts to limit these revenue sharing agreements, which have worked for Georgia institutions, should be scrapped.
Georgia Promise Scholarship is coming soon
For many families, their schools are one of the things that makes them grateful — even if the kids may not admit it. Other families may not feel the same way. Maybe their child is struggling. Maybe they’re feeling ignored, or getting unwanted attention from a bully. Maybe their high expectations aren’t being met. Maybe their school just isn’t a good fit. For those families, hope is around the corner.
The election is over. Let’s focus on policy.
We know this past campaign season was particularly intense. But now, in Washington and in Georgia, we need to turn our attention to policy, something that wasn’t always present in the campaign. The Foundation’s Guide to the Issues provides an in-depth look at the biggest issues in Georgia.
The Latest
Economy
Six Georgia communities receive site development grants
Six local development authorities have been awarded $9.3 million in grants through a new state program aimed at fostering economic development in rural communities, Gov. Brian Kemp announced this week. The OneGeorgia Authority’s Rural Site Development Initiative will enable grant recipients to identify, assess and develop new industrial sites through such activities as site studies and land grading.
Georgia PSC certifies battery storage projects
The state Public Service Commission voted unanimously this week to certify Georgia Power’s plan to build battery energy storage systems at four locations. The Atlanta-based utility’s proposal will add 500 megawatts of electrical generating capacity to Georgia Power’s energy supply portfolio. One megawatt is enough electricity to power 750 homes.
Hurricane season’s impacts put temporary dent in Savannah metro’s economic growth
Early fall’s spate of hurricanes and tropical storms left more than just debris and power outages across the Savannah region. The storms also put a slight dent in the Savannah metro economy’s growth during the year’s third quarter. The regional economy realized a modest dip in performance during Q3, a departure from the 0.6% growth experienced in Q2.
Education
Report: More money for schools doesn’t always lead to better outcomes
Georgia schools spent twice the amount allocated to them from the Quality Basic Education fund, but tracking individual programs is not possible, according to a report from the state auditor’s office. The state’s 180 school systems spent $15 billion on instruction during the 2023 academic year but the funding amount based on the formula, commonly known as QBE, was only $7.8 billion.
University System of Georgia to ban DEI, commit to neutrality, teach Constitution
The University System of Georgia’s Board of Regents has recommended a number of new and revised policies for its institutions, such as a commitment to institutional neutrality, the prohibiting of DEI tactics, and a mandatory education in America’s founding documents. The University System of Georgia is made up of Georgia’s 26 public colleges and universities as well as Georgia Archives and the Georgia Public Library Service.
Reforming state authorization of colleges to boost competition and lower tuition
Higher education suffers from barriers to entry. Four in five students today attend an institution that was founded before 1970, and virtually none attend a school that formed in the 21st century. This stagnant market contributes to higher tuition — as new schools cannot enter the market to compete down prices — and arguably suppresses innovation that typically comes from new market entrants.
Government accountability
Neighbors split on whether to accept data center project in their small Douglas Co. community
Neighbors are split over whether a data center project will help or hurt their small community. If approved, it will be built in the town of Winston, in Douglas County. While some people say it would be bad for the small town. Others say the company is working with them to make sure no one is negatively impacted.
Georgia lawmakers propose sweeping AI policies, privacy and ethics laws
Georgia lawmakers are recommending that all state bodies, cities, counties and school systems create “comprehensive” policies to ensure the ethical use of artificial intelligence. The bipartisan Georgia Senate Committee on Artificial Intelligence released its final report this week, which included findings and recommended policies and steps to both promote the technology’s advancement and address potential negative consequences.
Transportation
Transportation was on the ballot for Cobb and Gwinnett county voters in November, but both referendums to fund public transit expansion with a local 1 percent sales tax failed. Long-time transit advocates in the Atlanta region pointed to concerns about the economy as the main reason these initiatives didn’t find more support with voters in 2024.
GDOT works to modernize infrastructure, expand broadband
Georgia interstates will soon have 1,400 miles of broadband infrastructure. When completed, a portion of the broadband infrastructure will be dedicated to Georgia DOT’s traffic operations with additional capacity reserved for commercial use which will provide faster, more reliable broadband access for communities, households and businesses in 70 Georgia counties.
Bonus
Kelly Loeffler nominated to lead Small Business Administration
President-elect Donald Trump will nominate former U.S. Senator Kelly Loeffler to serve as the head of the Small Business Administration. In a post on his social media platform, Truth Social, Trump praised Loeffler’s extensive experience in business and government. He emphasized her skills in streamlining operations and fostering growth for small businesses, which he described as “the backbone of our great economy.”
Top states Americans moving to dominated by the South
There’s a southern migration happening in the U.S. right now, and it’s not because of the weather. The National Association of Realtors’ 2024 Migration Trends report released this week shows Southern states dominated in attracting the most new residents, and only 1% of those who moved said they did so because of climate-related reasons, according to its analysis of U.S. Census Bureau data.
Black Friday, Cyber Monday shoppers exceed expectations both in stores and online
Before the five-day Thanksgiving weekend shopping period – from Thanksgiving Day through Cyber Monday – the National Retail Federation had forecast that 183.4 million consumers would shop in stores and online. The number who shopped exceeded the trade group’s expectations fairly dramatically with 197 million consumers.
Quotes of Note
“Georgia has been the No. 1 state for business for over a decade by investing in our future. When we talk to companies, the first question they ask is if we have the workforce. The second is if we have the sites. The Rural Site Development Initiative is just one of the ways we’re making sure Georgia remains in pole position for economic development for years to come.” – Gov. Brian Kemp
“Kelly will bring her experience in business and Washington to reduce red tape, and unleash opportunity for our Small Businesses to grow, innovate, and thrive. She will focus on ensuring that SBA is accountable to taxpayers by cracking down on waste, fraud, and regulatory overreach.” – President Donald Trump
“What do you think?” – Brent Key, Georgia Tech head coach, when asked if last Friday’s loss to Georgia in eight overtimes was the toughest loss he’s ever experienced