Amid the coronavirus pandemic, Gov. Bill Lee is walking backs some of his biggest new spending priorities for the year and diverting some of that money into fighting COVID-19 and helping with tornado recovery.
Gov. Bill Lee’s office has released his revised budget proposal. It was quickly put together during the last couple of days, and it was made public on Wednesday morning.
Finance Commissioner Stuart McWhorter told lawmakers the administration took a “conservative and cautious approach.” He cited rapidly changing circumstances.
“We are now likely embarking on a recession,” McWhorter said. “Clearly we are in a time of recovery, a time of preparedness.”
The governor’s office said the proposed budget lowers the projected growth rate for the current fiscal year from 3.75% to 2.5%.
It also brings down to zero the growth rate for fiscal year 2021.
Among the initiatives dropped from the latest budget proposal is Lee’s $250 million K-12 Mental Health Fund. This money was going to be invested in the stock market with the expectation the fund would produce yearly returns of 3% to 6%. That money would into programs to improve students’ mental health.
The new budget proposal also reduces from 4% to 2% a promised salary increase for teachers. The governor’s proposal now allocates $58.7 million, instead of the $117.4 million first discussed.
But, McWhorter said the new budget still fully funds the Basic Education Program — the state’s formula to fund public schools.
Money for coronavirus, tornado relief
The proposal also includes $150 million to fight the spread of coronavirus in the state. It also adds $30 million to the Tennessee Emergency Management Agency’s Disaster Relief Fund. This would help with tornado recovery.
The administration also plans to deposit $350 million into the rainy day fund. That’s $300 million more than what was initially proposed earlier this year.
The legislature will vote on the budget this week. Legislative leaders say they would like to go on recess after they do so and won’t return until this summer.
This is a developing story.
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