Tennessee lawmakers approve a record $52.8 billion budget

NASHVILLE - Tennessee lawmakers on Thursday gave final approval to the state's $52.8 billion budget, the largest in state history amid historic tax surpluses and a tsunami of federal stimulus dollars.

The bill, which now heads to Gov. Bill Lee, includes an additional $1 billion for K-12 schools as part of Lee's new funding education formula, dubbed the Tennessee Investment in Student Achievement, although the formula itself has not yet passed through the General Assembly.

Tennessee's new budget, which takes effect July 1, also includes $500 million in bonds to help Tennessee Titans team owners and Metro Nashville finance a new enclosed football stadium that could cost upwards of $2.2 billion.

Along those same lines, albeit at a fraction of the cost, the new spending plan includes a $5 million grant to East Ridge. That's for infrastructure related to Chattanooga Red Wolves SC owner Bob Martino's estimated $200 million in planned new housing and commercial development.

At the same time, efforts by property owners as well as the city of Chattanooga, Hamilton County government and Chattanooga Lookouts owners to obtain $20.8 million in state funds for a new stadium in the South Broad District struck out, with local legislators panning the deal, questioning why the property owners and team owners weren't pitching in funding as well.

But in a nod to the state's massive $3 billion budget surplus, the budget also provides some $300 million or so in tax relief.

For example, millions of Tennessee vehicle owners will get a collective one-time $121 million break on their car and light truck license plates during the fiscal year that begins July 1. That amounts to a savings of $23.75 per vehicle.

Some surplus funds are also being spent on a one-time basis in a number of areas, a list that includes $5 million for Child Advocacy Centers across the state.

Another provision adds recurring funds to the tune of $26 million for the new "truth in sentencing" bill that cleared the House and Senate on Thursday. Championed by House Speaker Cameron Sexton, R-Crossville, and Lt. Gov. Randy McNally, the Republican Senate speaker, the sentencing bill would require people convicted of a number of mostly violent crimes to serve 100% of the sentences imposed by judges without taking into consideration good behavior.

Critics say the costs are vastly underestimated and will lead to discipline problems and the possibility of prison overcrowding.

"We're investing in our future," House Finance Committee Chairwoman Patsy Hazlewood, R-Signal Mountain, told the House. "We're making sure that Tennesseans down the road have the opportunities we have had."

Earlier, Senate Finance Committee Chairman Bo Watson, R-Hixson, said the two finance committees worked closely together, recognizing differences and working through them.

"There are things in every budget that people will not agree with," Watson said. "We understand that. But I think if one steps back and looks in total at this budget, they will see the many good things we're doing all across the state of Tennessee."

State employees are expected to see a 4% raise, while there's an additional $125 million to boost pay for public teachers and other K-12 staffers and employees. Case managers at the state's troubled and understaffed Department of Children's Services are getting pay increases as well. So are Department of Correction employees who will see their average pay rise to $44,520.

While the state is spending more on K-12 education, that wasn't enough for Senate Minority Leader Jeff Yarbro, D-Nashville, who sought to draw an additional $1 billion from surpluses. Even at that, Yarbro said, Tennessee's total education spending would remain $2 billion below the national average. He chided GOP colleagues for eliminating sales taxes for purchases of gold and other precious metals. His effort to secure the additional $1 billion failed.

The Titans stadium drew the most heated debate in the House, with a number of GOP members in the Republican-dominated legislature grousing over the $500 million request and railing at the Titans' millionaire owners, as well as Metro Nashville. Efforts to strip it from the funding bill failed.

House proceedings went awry at one point after Rep. Tim Rudd, R-Murfreesboro, persuaded colleagues to approve an amendment for a new $18 million parking garage for legislative workers. Lawmakers already have their own garage. It was later stripped by passage of an amendment. Garage proponents asked Hazlewood about that, and she acknowledged the ensuing amendment had deleted the garage provision. Irate, they sought to repass the provision but it failed.

The appropriations bill also provides authority for the state to proceed with a number of federal stimulus-funded projects, among them, some $275 million for a new mental hospital in Chattanooga.

Lee had originally proposed rebuilding the existing 61-year-old Moccasin Bend Mental Health Institute. Chattanooga Mayor Tim Kelly and lawmakers would like to relocate the hospital and allow the property, which is within the Moccasin Bend National Archeological District, to become a formal part of the district.

Contact Andy Sher at asher@timesfreepress.com or 615-255-0550. Follow him on Twitter @AndySher1.

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