NASHVILLE, Tenn. (AP) – Tennessee’s upcoming state budget is one signature by the governor away from becoming law, including a one-week sales tax holiday on restaurants, bars and groceries, an infusion of cash into capital maintenance and improvements, and a big paydown into the state’s retirement system.
The Republican-dominated Legislature passed the budget Thursday, touting it as a conservative investment during a time of much-better-than-expected revenues during the COVID-19 pandemic. Democrats criticized the proposal over, among other things, funding for K-12 schools and teachers’ salaries, saying the state could do more given what’s achievable when the state is flush with cash.
“In a year where we’ve got a $1 billion recurring surplus that could be invested in education, we’re basically keeping up with inflation,” said Senate Minority Leader Jeff Yarbro, a Nashville Democrat.
Gov. Bill Lee can reduce or veto line items, but lawmakers can override with majority votes. The plan lawmakers passed scaled back a few of the Republican’s key priorities, but he had kind words for what passed and gave no indication that he’s considering any changes.
“I’m proud that this budget delivers on some of our top promises to Tennesseans and invests in external organizations meeting the needs of our local communities,” Lee said in a statement.