NASHVILLE - With state revenues lagging behind projections, Gov. Bill Haslam today announced $160 million in cuts to his proposed 2014-2015 budget and another $150 million in reductions in the current budget.
As a result there will be no 2 percent pay raise for state workers and teachers, and $12.9 million in proposed higher education improvements are also out, Haslam told reporters this afternoon.
"Obviously the revenues are off, the governor said.
The biggest drop in projected revenue was in corporate franchise and excise taxes.
The governor said officials are still looking at reasons for that and among other things are seeking to determine whether large corporations have found a new tax "loophole" or changed their business models in some way.
Read more in tomorrow's Times Free Press.
doing away with the 2 percent pay increase applies to state workers and teachers