NASHVILLE, Tenn. — Tennessee lawmakers and Gov. Bill Lee have officially released the negotiated $58.3 billion state budget proposal for fiscal year 2027.
Healthcare, education, and road improvements
The budget includes major line items for healthcare, education, and road improvements, including $40 million in non-recurring funds for bridge reconstruction in Montgomery County on Zinc Plant Road. It also allocates $11 million for an ALS research center at Vanderbilt University and $1.25 million for houses of worship security grants.
Lawmakers cut $200 million from the governor's requests to fund their own bills. Most of those cuts impacted nonprofits the governor wanted to support.
The governor's wish list wins
The final cut includes adding 50 new state trooper positions, renovations for all Tennessee welcome and rest centers, and $83 million to move the Tennessee National Guard base from Berry Field to make room for a second terminal at Nashville International Airport.
Wish list wins for legislators
Legislators also negotiated funding for several bills, including a measure to change municipal election dates to match state election dates and a proposal to transition Tennessee to a closed primary state, requiring voters to be members of a political party to vote in primaries.
The budget accounts for immigration legislation, including an English-only driver's test bill and a requirement that individuals must be legal residents to receive public benefits. It also includes the Fair Rx bill, which would ban pharmacies from owning pharmacy benefit managers. CVS has threatened to close all of its Tennessee locations if the bill passes.
Contentious topics and what got left behind
The proposed budget does not provide a clear answer on how many Education Freedom Scholarships, or vouchers, the governor will add this year. The Senate was scheduled to vote on the measure Wednesday, but the vote did not happen.
The Senate is currently calling for 20,000 additional slots, matching the governor's request, while the House is asking for 15,000 additional scholarships. The House version includes an amendment changing the "hold harmless clause," which could impact public school funding amounts if students disenroll.
Notably left out of the budget is a request from the Tennessee Wildlife Resources Agency for dedicated funding. Currently the agency relies solely on license fees and federal funding. Instead of their full request, lawmakers are giving the agency a one-time $10 million cash infusion to maintain operations.
I also found out the budget includes $7 million for a bill to ensure children in need have food over the summer months. The legislation would require the state to apply for Summer EBT funding every year it is available, providing $120 per child to help families afford groceries while school is out.
Tennessee did not opt into the federal program before the January deadline, choosing instead to continue a smaller state-run program from last year. That program only reached children in remote areas in 15 of Tennessee's 95 counties. The new bill is scheduled to go before the Senate Finance Committee next week.
Lawmakers will have to officially pass these budget bills on the chamber floors, which could happen as early as Thursday.
Do you have more information about this story? You can email me at Chris.Davis@NewsChannel5.com.
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