SR 493: Children First Trust Fund; creation; authorize General Assembly - CA

This resolution proposes a change to Georgia's Constitution rather than an ordinary law, which means it must go before voters. It would let the General Assembly create a Children First Trust Fund and immediately require a one-time $2 billion appropriation into that fund, drawn from the state's Revenue Shortfall Reserve (the state's rainy day savings account). Money placed in the fund would not lapse back to the general treasury at the end of the budget year, unlike most state funds. Instead it would stay available to provide scholarships, grants, or other financial assistance for child care services in Georgia. Part of the fund would be invested, and any investment returns would also be deposited back into the fund and used for the same child care assistance purpose. If the General Assembly passes the enabling law and voters ratify the amendment on the ballot, it becomes part of the state Constitution.

• Amends Article III, Section IX, Paragraph VI of the Georgia Constitution to authorize creation of a Children First Trust Fund by law.
• Requires a one-time $2 billion appropriation into the fund from the state's Revenue Shortfall Reserve once the fund is created.
• Allows, but does not require, the General Assembly to appropriate additional money into the fund later.
• Exempts money in the fund from the usual constitutional rule that unspent appropriations lapse at year end.
• Requires fund money to be used for scholarships, grants, or other financial assistance for child care services in Georgia.
• Requires part of the fund to be invested, with investment returns deposited back into the fund for the same child care purpose.

Georgia families seeking child care assistance, child care providers who could receive scholarship or grant funding, and state budget officials who manage the Revenue Shortfall Reserve and the state treasury. Voters statewide are affected because the change requires their ratification on the ballot.

If ratified, Georgia would commit $2 billion of its reserve savings to a dedicated, non-lapsing fund for child care assistance, a significant shift from year-to-year budgeting. Families could see new scholarships or grants for child care, while the state's rainy day fund would be reduced by that amount.

• Section 1 adds new language to Article III, Section IX, Paragraph VI authorizing the General Assembly to create the Children First Trust Fund by law.
• The new provision mandates a one-time $2 billion appropriation into the fund from the Revenue Shortfall Reserve upon the fund's creation.
• Fund money is exempted from Article III, Section IX, Paragraph IV(c)'s lapsing rule, so it carries over rather than reverting to the treasury.
• A portion of the fund must be invested and reinvested as provided by law, with returns funneled back into the fund for child care assistance.
• Section 2 sets the ballot language voters will see, asking whether to authorize using part of the state's revenue surplus to create the fund.

1. 2025-03-31Senate Read and Referred (Senado)
2. 2025-03-28Senate Hopper (Senado)

• Derek Mallow (D, SD-002)Patrocinador principal
• Sonya Halpern (D, SD-039)
• Jason Esteves (D, SD-035)
• Kim Jackson (D, SD-041)
• Harold Jones (D, SD-022)
• Nan Orrock (D, SD-036)
• Michael Rhett (D, SD-033)
• Elena Parent (D, SD-044)
• Josh McLaurin (D, SD-014)
• Sally Harrell (D, SD-040)
• Donzella James (D, SD-028)
• RaShaun Kemp (D, SD-038)

• child care funding
• constitutional amendment
• state budget reserves
• Georgia ballot measures