Tennessee expects to end this year with about a billion dollars more in revenue than it budgeted. State officials say that’s a good thing, but some argue it would be better invested expanding services for struggling Tennesseans.
Tennessee is bringing in tax dollars far faster than projected, and is now $1.3 billion ahead of expectations for the fiscal year that concludes at the end of June.
The state is expecting the economy to improve next year, but the pandemic is making the outlook complicated. There are many promising signs in Tennessee, but officials say they want to be cautious.
Tennessee is betting on growth next year: not a lot, but not quite as modest as some projections. The State Funding Board predicts tax revenues will increase by about 1% in the next fiscal year, and between 2.5% and 3% the year after that.
Economists from around Tennessee presented an array of projections Wednesday to the State Funding Board, estimating how tax revenues will change over the next couple of years.
Despite slowing tax collections in recent months, the state’s top finance official is using rosy projections to put together next year’s budget.