Gov. Bill Haslam today unveiled a $33.3 billion spending plan for fiscal year 2016 that calls for pay increases for both K-12 teachers and higher education employees as well as $165.8 million worth of infrastructure commitments for Volkswagen’s planned expansion at its Chattanooga plant.
At the same time, the Republican is recommending spending cuts of $200 million in other areas as he seeks to make room for must-do items and his own priorities while staying within the $300 million in revenue growth he’s anticipating in the new budget taking effect this July 1.
There are also funds for “some” capital construction projects in higher education, he said, including improvements at UTC and Chattanooga State. UTC is also proposed to receive more in state funds.
Haslam is also proposing a few tax increases in select areas that could produce yet more friction between the governor and fellow Republicans who dominate the General Assembly.