We have a lot to be proud of in Tennessee. Our state economy is healthy and booming. New businesses continue to move in and bring high-quality jobs. Tennesseans enjoy the lowest state and local tax burden per capita, and we do all of this without a personal state income tax.
We stood strong and recovered much more quickly than most other states following an unprecedented economic downturn caused by the pandemic. When other states were facing huge budget deficits last year, the Volunteer State reduced state agency spending by more than $180 million. Tennesseans benefited from a tax savings of $415 million in sales-tax-holiday purchases.
Fiscal responsibility is how we do business in the Volunteer State. We pay our bills. We invest in ourselves. We plan for the future. We live within in our means.
Our state's success didn't happen overnight. Back in 2010, Tennessee was facing an unprecedented $1 billion deficit in our state budget resulting from dysfunctional fiscal policies that did not keep up with the times. We had to put state government in check.
We raised our expectations of ourselves, and we made some tough decisions. Tennessee grew stronger and is in a much better place today. Conservative fiscal policies work.
Our primary goal each year is always the same in the Tennessee General Assembly: to pass a balanced budget. We want to provide the best possible service at the greatest efficiency and at the lowest cost to taxpayers. From top to bottom, this year's $52.5 billion, zero-debt budget will be a spending plan that addresses the priorities and needs of all Tennesseans.
We will continue to put a strong emphasis on investing in rural communities, infrastructure, economic development and improving health care. This year's budget includes $626.5 million in strategic transportation and infrastructure projects like new road projects and economic development initiatives.
Without a doubt, our most import obligation is to provide great classrooms and excellent teachers in a safe environment where every child has the best possible opportunity to excel.
Republicans have doubled down on this commitment. This year, my colleagues and I are working closely with Gov. Bill Lee's administration on a new education funding formula that prioritizes the needs of students above all else and will pay particular attention to students with disabilities, students in rural Tennessee and students from low-income households.
If approved by the General Assembly, the governor's newly proposed Tennessee Investment in Student Achievement (TISA) will demand accountability and reward districts for performance.
This budget includes $1.9 billion for higher education. Of that, we are allocating $90 million to keep state universities from raising tuition and $200 million for infrastructure investments. I'm delighted that for the first time since 2008, we will be increasing the amount of the Hope Scholarship for four-year and two-year students. Coupled with no tuition increases at our state universities, Tennessee students will find it less financially stressful to access secondary education options.
We know our state is going to be challenged by rising inflation this year. Inflation can certainly cause uncertainty in expenditure forecasts, but our approach is to remain vigilant and plan accordingly. Our rainy-day fund stands at $1.1 billion, and we are on target to make a significant investment this year.
As Tennesseans, I believe we are all deeply invested in making our state a place where everyone has the best opportunities to prosper. Our willingness to work hard to meet challenges is what makes us so resilient through the tough times. That's something to be proud of.
Patsy Hazlewood, who represents District 27 in the Tennessee General Assembly, serves as chair of the Finance, Ways and Means Committee for the Tennessee House of Representatives.