NASHVILLE - The "Grinch" was on full display this week as Tennessee State Funding Board members approved formal revenue growth projections for next year that will guide Gov.-elect Bill Lee as he fashions his first budget.
State Comptroller Justin Wilson, who is famously tight-fisted on projections, sported a "Grinch" tie as he and fellow funding board members adopted growth rates for general state revenue ranges of 2.71 percent to 3.21 percent for the 2019-2020 budget year that begins July 1.
In presentations made to the board last week, four economists and state officials had projected general fund revenue growth for next year from 2.7 percent to as high as 3.76 percent.
In this 2011 file photo, Comptroller Justin Wilson, left, attends a meeting of the State Funding Board in Nashville, Tenn.Instead, Wilson, state Treasurer David Lillard, Secretary of State Tre Hargett - all Republicans - as well as Larry Martin, state finance commissioner for outgoing-Republican Gov. Bill Haslam, held the top estimate line that Lee can use to build his budget to the 3.21 percent growth rate.
That would generate tens of millions of dollars less than the Revenue Department had projected revenue would grow.
The difference between the low- and high-end projections of 2.7 and 3.2 percent that actually were adopted is $184.7 million. If history is any guide, Lee, a Republican, will be like most governors and use the top figure.
It would account for about $400 million in growth, generating $12.45 billion in total revenue for the general fund which pays for most state functions like education, health and prisons.
Transportation and several smaller areas have their separate funds.
After Wilson rattled off the projected growth rates for the remainder of the current 2018-2019 budget and for next year, Hargett quipped to him that "I think that you're wearing your typical tie that you wear on the day we do the economic forecasts.
As always you're kind of Grinchy with your growth rate estimates. I noticed the tie matches what you proposed here," Hargett added. "But, we have a consensus, though."
Wilson grinned, saying, "we have a consensus - and I am The Grinch."
A spokesperson for Lee, who is a Republican, had no immediate comment.
Lee will submit his proposed annual spending plan next year to the GOP-controlled General Assembly.
Haslam's administration has occasionally bristled at the restraints that Wilson, Lillard and Hargett have sometimes placed on revenue growth estimates.
That has resulted in situations involving huge surpluses of one-time money.
Martin said later in a statement that he is "pretty happy with that range for the fiscal year 2019-20. It's a little more conservative than the forecasters presented but that's consistent with the approach we've taken historically and it's appropriate given the length of the current period of economic growth."
He said the "consensus report is a solid growth range and I think it will leave the Lee administration in a good financial situation for FY 19-20 to support their initiatives."
Contact Andy Sher at asher@timesfreepress.com or 615-255-0550. Follow on Twitter @AndySher1.