Gov. Haslam releases $33.3 billion spending plan

NASHVILLE -- Gov. Bill Haslam on Monday 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 some $300 million in revenue growth he's anticipating in the new budget taking effect this July 1.

"You will see in the budget that we are continuing to invest in the things that we believe in and that Tennesseans care about: education, jobs and a customer-focused, efficient and effective state government," Haslam said in his State of the State address to a joint convention of the General Assembly Monday night.