Gov. Nathan Deal offered some hope Tuesday night that the era of drastic state budget cuts could be ending, with proposals for some modest new spending and extra money for cash-strapped schools.

In his second State of the State address, Deal promised several new initiatives on issues from traffic relief to cancer research. One proposal, he said, could ease congestion on Georgia 400 with an extra southbound lane from McFarland Road to the Chattahoochee River.

A standing-room-only crowd overflowed the House chamber for Deal's 45-minute speech to a joint session of the House and Senate.

In education, the governor said the state is moving past a repeat of the kind of cuts that in recent years have stripped local school systems of a collective $1.1 billion. Instead, he pledged $257.9 million to public schools and the state's universities, colleges and technical colleges for enrollment growth, declaring "our schools are the front line in our effort to create prosperity."

Educators are waiting the release today of the details of the governor's budget. Tuesday night they were cautiously optimistic.

Angela Palm with the Georgia School Boards Association said the governor's decision to fully fund enrollment growth is "reassuring" and "a good first step."

In advance of the state of the state speech, Deal had unveiled much of what he is proposing, including adding back 10 days of the 20 days that were cut from the popular, lottery-funded prekindergarten program last year.

Earlier Tuesday, Deal said he'll be pushing the vote on a regional transportation tax that would fund $6.14 billion worth of road in public transportation projects in metro Atlanta. He also said he would be advocating energy tax exemptions for manufacturers, tax breaks on construction materials for large projects and tax credits for job creation.

He told House and Senate members Tuesday night there will be money for new programs, including $1.6 million to launch a reading mentor program, with the objective of having more children reading on grade level by third grade.

"When we fail to invest in our youngest students, we are forced to spend money on remediation for the remainder of their academic careers," Deal said.

The governor said the state’s better off than it was a year ago, when it only had enough money in savings to fund two days of government operations, a court ruling was casting doubt on the future of metro Atlanta’s main water supply and the HOPE scholarship program seemed on an unsustainable course.

All those circumstances have improved, including the balance in the state’s savings, which is up 138 percent in a year to $328 million, Deal said.

Still, he said, zero-based budgeting is needed, in part, to verify that taxpayer dollars are being spent on Georgians’ priorities.

HOPE scholars, as well as participants in a needs-based one percent student loan program, will have the same money available this year as last, the governor said.

Other recommendations from Deal include:

  • A second installment of $45.7 million to build water reservoirs;
  • $8.7 million in grants to keep charter schools open that lost their funding because of a court decision;
  • The sale of $46.7 million in bonds to deepen Savannah harbor.
  • $10 million for new drug and mental health courts
  • $5.7 million for residential substance abuse treatment centers.
  • $35.2 million for new prison beds
  • $1.4 million for additional parole officers

To reduce traffic congestion in metro Atlanta along Georgia 400, the governor said the state will "modify the existing southbound lanes from McFarland Road to the Chattahoochee River, allowing an additional southbound through lane."

Deal also called for $55.8 million to fund teacher salary increases geared to training and experience. Educators watching the speech said the raises are standard and do not represent new, across-the-board pay raises.

Deal said he wants the state to develop a world-class public medical university that would be among the top 50 nationally and help the Georgia Health Sciences University to become the state’s second National Cancer Institute designated cancer center, alongside the Winship Cancer Center at Emory.

Undergraduate medical education will receive a boost -- 400 new residency slots across the state, though it was not clear how that will be funded.

Republican lawmakers were receptive to many of the governor's initiatives.

"The state Senate is committed to getting down to to business to successfully accomplish the goals the governor has laid out that will make Georgia one of the most competitive states in our nation," said Senate President Pro Tem Tommie Williams.

Democratic leaders voiced support for some of the governor's initiatives. Their question was where will the money come from to pay for them.

“I think that his approach to competitiveness is a sound one but the question is how do we pay for it,” said House Minority Leader Stacey Abrams, D-Atlanta, referring the governor's proposal to trim some business taxes.

Deal announced creation of a Go Build Georgia program, educating Georgians about highly skilled trades in industrial and commercial construction. Mark Woodall, legislative director for the Associated General Contractors of Georgia, said a similar program in Alabama is funded by the construction industry.

"When the economy turns, and it will turn, there will be a tremendous need of a skilled work force and we do not have bodies in the pipeline," Woodall said. "We are talking about projects such as new construction at Plant Vogtle and deepening the Savannah harbor. And I believe there will be a need across the spectrum when large number of folks retire and leave the industry."