Here is Gov. Lee’s revised budget plan amid coronavirus pandemic

Gov. Bill Lee speaks at a press conference on Tennessee’s coronavirus response in Nashville on March 16, 2020. (Erik Schelzig, Tennessee Journal)

The governor’s revised budget proposal assumes Tennessee’s economic growth will drop from a projected 3.1 to zero in the coming fiscal year.

A detailed breakdown can be viewed here: FY21 Amendment Overview Schedule.

Here are the assumptions of his plan for addressing the fallout from the corona virus in the current budget year and next, as released by the governor’s office:

Recognizing the sudden change to our economic circumstances by:

  • Lowering our Growth Rate for the current year from 3.75% to 2.5%.
  • Revising our FY21 growth rate from 3.1% to basically zero.
  • Adding to our reserves: Rainy day: $1.2 billion balance at 6/30/20 & $1.45 billion balance at 6/30/21.
  • Making an additional $57M in base reductions.

New spending items that include:

  • Fully Funding the BEP Formula.
  • Fully Funding Higher Education outcomes-based funding formula.
  • Fully funding our Pension contribution.
  • Fully funding our OPEB Liability contribution.
  • Fully funding the inflationary growth in TennCare.
  • Fully funding the growth in DCS children in state services.

Adding resources to critical services:

  • DL Services.
  • State Road Troopers (10 Troopers).
  • TBI Field Agents (25 agents).

Continuing to address, not defer, the long list of deferred Capital Maintenance items in both state government and higher education.

Expanding services for our most vulnerable population.

Providing salary funding for state employees, higher education and K12.

Responding to the Tornado Disaster and COVID-19 by:

  • Adding $30 million to our Disaster Relief Fund for TEMA.
  • Adding significantly to our fund for emergencies to repair state buildings.
  • Establishing a new $150M fund to help us be responsive to Health & Safety Issues resulting from COVID-19.
  • Doubling our Local Government Grants from $100M to $200M (no county will receive less than $500,000 & no municipality will receive less than $30,000).
  • Strengthening our Safety Net for Mental Health and Health.

UPDATE: For the  budget amendment in text form, click here.

 

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