NASHVILLE, Tenn. (WTVF) — Tennessee Gov. Bill Lee unveiled a $58 billion state budget proposal that, despite its massive size, represents a 9% decrease from last year's spending plan.
Vouchers and Public School Funding
During his State of the State address on Monday, Lee emphasized expanding the Education Freedom Scholarships program as his signature initiative. "This is why we should at the very least double the amount of scholarships this year for Tennessee students," Lee said.
The voucher program, established last year, would expand from 20,000 to 40,000 Education Freedom Scholarships at a cost of $300 million to the state. However, Democratic lawmakers expressed concern about prioritizing vouchers over public school funding, especially when the public school funding doesn't keep up with inflation.
"It is deeply troubling to me that we're talking about doubling the size of a program that is brand new while we are not even keeping public school funding up to par with inflation," said State Sen. Jeff Yarbro (D-Nashville). "Just looking at the math here, it looks like you would need at least another 100 million dollars just so schools break even."
Transportation
Transportation funding drew bipartisan criticism. The Tennessee Department of Transportation received only $425 million despite Transportation Commissioner Will Reid telling NewsChannel 5 they have a $58 billion project backlog. "There's several projects even from 40 years ago that we still haven't finished," said Sen. Joey Hensley (R-Hohenwald).
Yarbro noted the funding shortfall's long-term impact. "$400 million is a significant investment, no doubt, but the inflation on what's left is going to be more than $400 million," Yarbro said.
Jim Bryson, Tennessee Commissioner of Finance and Administration, defended the budget constraints.
"Whether it's in infrastructure, or education, or other things, there's a lot of things the budget has to do. We're doing what we can here," Bryson said.
Other budget priorities
Lee's proposal allocates $2.8 million for 50 additional state trooper positions, $25 million for rural development projects, and $42 million for a statewide judicial computer system to track criminal histories. The budget also includes $50 million to modernize state government using artificial intelligence. The state is also putting $70 million towards updating the state's outdated computer operating system.
Infrastructure projects receive significant attention, with $165 million designated for renovating state welcome centers and $83 million to begin relocating Berry Field to Smyrna, making room for a second terminal at Nashville International Airport. $25 million will go towards Tennessee's Nuclear fund, to entice new energy projects to the state.
During the State of the State, Gov. Lee also called on lawmakers to reduce regulatory barriers for medical professionals and reform Certificate of Need laws that have blocked nearly $1.5 billion in healthcare investment since 2000.
The Governor is also proposing $50 million towards a Tennessee Quantum Initiative, positioning the state as a national leader in quantum research and development, and proposed an additional $25 million for the state's Nuclear Fund after Tennessee was named the top state for nuclear energy development.
The budget proposal will undergo legislative review and debate before lawmakers must pass a final version this spring. Notably absent from the official budget is a grocery sales tax cut, though lawmakers indicate they may still pursue at least a reduction this year.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
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