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Friday, October 30, 2026Oct 30

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Tennessee Senate approves budget eliminating pay raises for teachers, state employees

Sen. Jack Johnson, R-Franklin, speaks with a colleague on the Senate floor in this 2011 file photo. (AP Photo/Erik Schelzig)
Sen. Jack Johnson, R-Franklin, speaks with a colleague on the Senate floor in this 2011 file photo. (AP Photo/Erik Schelzig) Sen. Jack Johnson, R-Franklin, speaks with a colleague on the Senate floor in this 2011 file photo. (AP Photo/Erik Schelzig)
photo Sen. Jack Johnson, R-Franklin, speaks with a colleague on the Senate floor in this 2011 file photo. (AP Photo/Erik Schelzig)


NASHVILLE – Tennessee senators on Thursday approved a revised $39.4 billion budget for the fiscal year that will start July 1 which eliminates previously promised pay raises for teachers, most state workers and higher education employees.

The spending plan was reduced by a half billion dollars from the initial proposal approved in March.

In approving Gov. Bill Lee’s proposed new budget and making changes to the budget for the fiscal year that will end June 30, the Republican-led Senate also removed restrictions on how cities and counties can spend $200 million in previously approved infrastructure grants.

The money can now be spent as local governments wish, whereas before, city and county officials had to report to the state how they planned to spend the money, which originally was intended for areas ranging from roads to internet connectivity.

The budget has yet to be taken up by the House, which has recessed until next week. Senators quickly left the capital after passing the budget.