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Thursday, October 29, 2026Oct 29

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Tennessee budget $1.2 billion higher than estimated

NASHVILLE – As Tennessee lawmakers passed the 2010-2011 budget last spring, the Bredesen administration estimated the size of the total spending plan, including federal as well as state dollars, at about $29.9 billion.

Fast forward a half year later: The final budget figures actually total about $31.3 billion, $1.2 billion more than previously estimated, state Finance and Administration Department officials recently said.

Officials attribute the differences to a variety of things. For one, a contingency provision in the state budget depended on Congress extending more-generous Medicaid match rates, which benefit TennCare.

Other factors are higher education tuition increases, a federal Education Jobs Fund expansion and the carry over of federal stimulus funds from the prior fiscal year, officials said.

Meanwhile, the state’s new governor, Republican Bill Haslam, begins his 2011-2012 budget hearings later this afternoon.