NASHVILLE, Tenn. (WTVF) — After previously floating the idea in February, House Speaker Cameron Sexton is moving forward with a thought: what if Tennessee did away with some federal funding for education?
As it stands, Tennessee receives around 30% of its annual budget from federal money, but as he said in February, Sexton would like to remove $1.8 billion from that percentage. Federal dollars are also 10% of the state's education budget.
Now, Sexton has created a bipartisan workshop with eight Republicans and two Democrats from the House and Senate to explore the idea before the next budget cycle ends. Lt. Gov. Randy McNally is backing the panel, which will evaluate, analyze, and undertake a comprehensive review of federal education funding and its impact on the classroom, the curriculum, and attainment.
“Any time the federal government sends money, there are always strings attached to those dollars, and there is always a possibility that it opens the state up to other regulations or restrictions,” said Speaker Sexton. “This working group will help provide a clearer picture of how much autonomy Tennessee truly has in educating our students.”
Tennessee does have a rainy day fund it can dip into if necessary, and Tennessee does rely on projections of sales tax revenue and those actual numbers to dictate the state budget, which has to be balanced per state law. State tax revenues make up 60% of the state budget at 7% tax rate. While state sales tax revenues were up in fiscal years 2021 and 2022, those revenues are only up 5% right now, according to the state's tax database.
Nashville collected $1.6 billion in state sales tax revenue this last fiscal year for 2022, which ended June 30. It is the highest sales tax generator in the state.
"The education of our youth is one of the essential responsibilities of our government,” said Lt. Gov. McNally. "Federal dollars and the various mandates and restrictions that come with those dollars affect the way Tennessee’s children are educated. Due to our state’s excellent financial position, this is a worthy subject of examination and study."
Lawmakers didn't say how the state would fund the gap between the state and federal funding. It's not clear when the first meeting of the panel will happen.
Who is on the panel?
- Rep. Debra Moody, R-Covington
- Sen. Jon Lundberg, R-Bristol
- Rep. Ronnie Glynn, D-Clarksville.
- Rep. Timothy Hill, R-Blountville
- Rep. John Ragan, R-Oak Ridge
- Rep. William Slater, R-Gallatin
- Sen. Raumesh Akbari, D-Memphis,
- Sen. Joey Hensley, R-Hohenwald
- Sen. Bill Powers, R-Clarksville
- Sen. Dawn White, R-Murfreesboro.
