Tennessee Funding Board approves smaller budget for the upcoming fiscal year

Tennessee officials approved a budget that’s a little lower than last year’s, citing a need to be cautious due to a slight decrease in revenue projections. However, some believe that dip is actually a sign of how well the state government has managed the budget throughout the pandemic.

The drop in estimated revenue is $95 million, bringing the general fund total down to a little under $18 billion.

For the first time in several years, Tennessee is receiving less tax revenue than it did the the previous year. In fact, throughout the pandemic the state saw upticks every year in its fiscal budget.

Tennessee Director of Budget David Thurman explains that the recent year-to-year growth they had seen has stopped.

“I think everybody recognizes that the last two or three years have been extraordinary, and this is part of a resetting that’s occurring,” said Thurman.

Despite the decrease in revenue predictions, Tennessee Comptroller Jason Mumpower believes the state’s economy is in a good place.

“We’ve seen extraordinary population growth in the last year — over 83,000 people. We’ve had record low unemployment recognized in the past few months,” said Mumpower.

Governor Bill Lee will apply these projections to craft a state budget proposal that the General Assembly will use as a guide during the upcoming session in January.