Nashville's local news and NPR station

After major surplus year, Tennessee again opts for conservative budget projection

State Funding Board Director David Thurman speaks at the board meeting on Nov. 23, 2021.
State Funding Board Director David Thurman speaks at the board meeting on Nov. 23, 2021.
Share:

Tennessee’s State Funding Board expects the state to receive around 7% more in tax revenue this fiscal year compared to last. That amount is lower than economists predicted last week.

These conservative projections are not uncommon. Last fiscal year, the state finished with $3.1 billion more in tax revenue than they anticipated.

More: How far does a $4B surplus really go for a state like Tennessee?

State Budget Director David Thurman says they remained conservative for fiscal year ’23 because this year saw an unexpected surplus from federal dollars.

“The recurring thing that we heard last week was caution, and what we’re seeing in the current year was a result of a lot of one-time events from federal stimulus, from change in spending patterns,” Thurman said. “And going forward there would be a big shift or a shift and resetting of those spending patterns.”

The governor and general assembly will use the predictions to craft the state’s spending plan going forward.

For the next fiscal year, they estimate a growth of about 2%.

Blaise Gainey, Political Reporter

Blaise Gainey is the youngest of three siblings, husband and father of two. He previously held the State Government Reporter position for WFSU News in Tallahassee. He is from Apopka, Fla., and graduated from The School of Journalism at the Florida A&M University. He previously worked for The Florida Channel and WTXL-TV. He is excited to move to another capital and report on state government. In his spare time, he enjoys watching sports, outdoor activities and enjoying family time.

on-air light On Air - 90.3 WPLN-FM