NASHVILLE, Tenn. (AP) - Republican Governor Bill Haslam's annual spending proposal calls for raises for state employees, more spending on construction on college campuses and tax cuts on food and inheritance.
The governor's $31.08 billion proposal relies on rebounding revenues to avoid more drastic cuts the state would have faced otherwise.
But Haslam is still calling for eliminating nearly 1,200 state jobs. Those cuts would leave the state with just shy of 44,000 employees -- or about 6,000 fewer than in 2008.
Meanwhile, the governor wants to raise the salaries of remaining state workers by 2.5 percent.
Haslam is also proposing a $335 million increase in construction and building maintenance spending at the state's colleges and universities.
The governor said his proposals reflect his aim to deliver effective but low-cost services to Tennesseans.
(Copyright 2012 by The Associated Press. All Rights Reserved.)