State tax revenues did better than expected in April, but Governor Phil Bredesen is warning lawmakers that’s no guarantee they’ll have enough money in the coming budget year.
April marked the first time in almost two years sales taxes brought in more money than expected. Now legislators may dip deeper into the state’s one-time reserves than Bredesen would like as they patch together next year’s budget.
“I’m very concerned about the extent to which people are taking one up-month in our numbers and declaring victory, and ‘the recession is over.’ I don’t think that’s the case at all; I think we need to still be very careful and very conservative in the way that we do our budgeting.”
Bredesen says he’d like to leave a balanced budget when a new governor takes office next year, but ultimately the matter is up to state lawmakers.