NASHVILLE – Tennesseans will have to wait until Gov. Bill Lee unveils his first proposed state budget in March before learning what the state agreed to on a capital grant to help persuade Volkswagen to build its $800 million, 1,000-worker electric vehicle facility in Chattanooga.
“It’s one of our capital grants and so the governor and the General Assembly will be discussing it and that will be part of the budget when the governor delivers his proposed budget on March 4,” state Economic and Community Development Commissioner Bob Rolfe said Friday.
Rolfe’s comments came following his budget presentation to Lee in which he asked for a $126.2 million increase in departmental spending for the 2019-2020 budget, which would take effect July 1. The VW project wasn’t included.
The commissioner said the amount was determined as part of the negotiations with the German auto manufacturer.
“That was part of their conversation. They wanted a definitive number before they made the commitment to expand in Tennessee,” Rolfe said. “And again, it was another competitive process of where they were going to put that expansion.”