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Tennessee Projects Revenue Growth, But Cuts Still Loom

By AP

Nashville, TN – Tennessee's improving economy means the state will begin collecting more money, but official projections indicate it won't be enough to avoid deep spending cuts. Under the best-case scenario adopted Wednesday by the State Funding Board, general fund collections in the budget year beginning July 1 will increase by over $350 million, or almost 4%. But those increased revenues would still fall far short of the nearly $900 million in planned cuts that were put off thanks to federal stimulus money, which runs out this year. Governor Bill Haslam's administration wasn't ready Wednesday to give a specific dollar figure for the cuts facing the state. Haslam is scheduled to present his budget proposal to lawmakers next month.