NASHVILLE, Tenn. (WTVF) — Tennessee lawmakers are clashing over how to balance the state budget, with the Senate and House opposed on the best way to provide relief to Tennesseans affected by the COVID-19 pandemic.
Senate lawmakers finished drafting their $39.4 billion spending plan last week, ahead of the House, which included $1.5 billion in cuts over three years. The Senate’s version aligned with what Gov. Bill Lee’s administration outlined to address the expected revenue drops caused by coronavirus.
However, House lawmakers unveiled a drastically different budget proposal this week.
Their version would cut the budget by $1.5 billion in just two years.
The two budgets differ in part because of the house plan’s focus on leaving vacant government positions open. Also, the House Republicans want to leave in place an investment income tax called the Hall Tax.
The tax was supposed to be phased out in 2021, but some house leadership felt they should pause the tax.
"Right now, we just paused doing away with that in January of this coming year. We fully intend on repealing the Hall income tax completely,” said Portland Republican Representative William Lamberth.
“I don't like that tax. I want it off the books. But very difficult budget times, what we would prefer to do is just pause the repeal of that right now and take it up when we are in better budget times."
Due to the differences in the budget, the Senate and House will have to negotiate a final version before being able to adjourn. Governor Bill Lee will then have to sign off on the plan.
*Editor's Note: The Associated Press contributed to this article.
