NASHVILLE – Republican Gov. Bill Haslam opens public hearings today on his administration’s upcoming budget, though Tennessee’s rebounding revenues have administration officials seeking to dampen state lawmakers’ expectations.
A major part of the annual revenue game was resolved last week when the State Funding Board lowballed projected revenue growth for the last half of this fiscal year as well as in the FY 2017 spending plan that will come before the General Assembly early next year. The board ignored more optimistic projections by University of Tennessee economist Bill Fox and economists in Haslam’s Department of Revenue and the Legislature’s Fiscal Review Committee.
The Funding Board comprises Haslam’s finance commissioner, Larry Martin, and three constitutional officers appointed by the GOP-controlled Legislature: Comptroller Justin Wilson, Secretary of State Tre Hargett and Treasurer David Lillard.
Funding board members are banking on a current-year surplus of up to $353 million, and revenue growth next year of as much as $348 million. Legislative estimates say the fiscal 2017 budget year could see as much as $662.6 million in new, recurring revenue over and above the $10.4 billion budgeted for the general fund this year.
Tennessee’s general fund pays for most state government operations in areas ranging from K-12 education to TennCare, the state’s Medicaid program. The current total budget, which includes federal funds, college tuition and operations as well as other areas of government, is more than $33.4 billion.