Tennessee Faces $1 Billion Budget Shortfall

Tennessee will have a projected $1 Billion less for their budget in the coming fiscal year.

Tennessee revenues crater, Gov. Bill Lee says the state faces a $1 billion shortfall in the $39.8 billion budget set to take effect July 1 and plans among other things to to eliminate nearly $150 million in proposed pay raises for educators and state government employees.

With the COVID-19-induced plummet in state tax collections, the Republican governor is also asking lawmakers to cut $38 million in previously planned “outcomes based” funding formula for public colleges and universities, designed to reward institutions for moving students toward graduation.

The elimination of those and other state plans were announced by state Finance Commissioner Butch Eley to Senate Finance Committee members Thursday morning as he described the governor’s plans to close out the current Fiscal Year 2020 budget year ending June 30. It faces a $500 million shortfall with the other $1 billion projected for Fiscal Year 2020-2021.

Source: Times Free Press

 

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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