by Senator Jack Johnson, NASHVILLE, Tenn., March 7,
2019 – Governor Bill Lee presented
his first State of the State / Budget Address to the General Assembly Monday
evening outlining his proposals for the 2019-2020 budget year. The proposed budget continues Tennessee’s
strong fiscal stewardship which has earned the state triple-A bond ratings with
the nation’s top credit rating agencies and recognition as one of the best
financially managed states in the U.S.
It also makes key investments to promote job growth, improve education,
expand rural opportunities, and enhance public safety.
In addition, the
Governor offered initiatives to modernize healthcare and make it more
affordable.
Lawmakers went
straight to work Tuesday morning examining budget details. The Senate Finance, Ways and Means Committee
heard testimony from administration officials who gave a budget overview and
answered numerous questions about the spending plan. Committee members expressed strong support
for the Governor’s plan to add a record-breaking deposit to the Rainy Day Fund
that will lift the state’s savings account to a historic high of $1.1
billion. The fund is critical in times
of emergency or a downturn in the economy.
The $38.6 billion budget
represents a 1.1 percent growth and cuts $42.2 million in costs without
compromising services. It also does not
take on any long-term debt. On tax
relief, the proposal provides $10 million to fund legislation repealing the
amusement tax on gym memberships which has disproportionately impacted small
business owners. The tax relief legislation
advanced through the Senate Revenue Subcommittee this week. The tax, which is exempted for gyms over
15,000 square feet, serves as a disincentive for physical fitness centers at a
time when Tennessee is ranked 40th in the nation for physical
activity and 35th for adult obesity. Illnesses related to diabetes,
hypertension, and cardiovascular disease costs Tennessee directly and
indirectly more than $5.3 billion annually.
The Senate’s nine
standing committees have scheduled a combined 59 hearings to review individual
budgets of all departments and agencies of state government over the next five
weeks.
The full speech
is available on Governor Lee’s
website
and the proposed budget is available on the Department of Finance &
Administration website.
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