Lee says economy is solid, while Democrats criticize rising costs under GOP administration.
Image Credit: John Partipilo/Tennessee Lookout
***Note from The Tennessee Conservative – this article posted here for informational purposes only.
By Sam Stockard [Tennessee Lookout -CC BY-NC-ND 4.0] –
Despite planning to cut the state budget, Tennessee Gov. Bill Lee is proposing a 100% increase in private-school vouchers, even as lawmakers say the state is building an unsustainable entitlement program.
During his final State of the State address Monday heading into the last year of a second four-year term, Lee said he wants to increase the size of Tennessee’s education voucher program to 40,000, doubling it from 20,000 in its first year, at a total cost of $310 million for the vouchers alone.
“Clearly, Tennesseans like freedom,” Lee said in his yearly address. “Last year, we received more than 40,000 applications, and this year, 54,000 applications so far for 20,000 spots. That means, right now, 34,0000 students are still waiting for a shot at education freedom. We owe it to them.”
The governor has made “school choice” a priority in his two terms, narrowly passing a program in 2019 for low-income students to use state funds to enroll in private schools in Davidson and Shelby Counties, then starting the “Education Freedom Scholarships” last year.
Voucher detractors, including rural Republican lawmakers, have criticized the cost of the program while a report from the Tennessee Comptroller found most families in the program aren’t using the funds to leave low-performing public schools.
As part of a proposed $57.9 billion budget, the governor also is requesting lawmakers approve $40 million for charter school facilities as the state becomes friendlier to those entities, which are private yet operate as part of public school systems.
Total budgeting will be down 9.6% from the current year’s $64 billion as the state slowly spends down federal pandemic era funding.
The governor is seeking $170 million more for K-12 public schools and $20 million for K-12 school construction grants, putting roughly 60% of new education spending toward public schools.
With the economy growing at a moderate rate, Lee touted the state’s economic development efforts, saying the state brought in $11 billion worth of investment last year.
Democrats jumped on Lee’s plan to increase spending for private-school vouchers at the same time Tennesseans are facing higher costs for housing, health insurance coverage, electricity rates and groceries. The governor’s proposal comes two years after he pushed through a massive business tax break and rebate that benefited his family business, Lee Co., a large HVAC and plumbing company.
Democratic state Sen. Raumesh Akbari of Memphis said in advance of Lee’s speech that Tennessee families are “feeling the strain” after 15 years of Republican Party control.
“Housing costs are at a ten-year high. Grocery bills are higher than ever – and we still tax food at one of the highest rates in the nation. Electricity prices hit record levels. Child care now costs more than in-state college tuition. Nearly half of Tennessee families can’t cover the basic cost of living,” Akbari said in a statement.
In addition to increasing expenses for education, Lee wants to add 50 state troopers to the state’s ranks at a cost of $40.7 million. One hundred troopers are to be placed in Memphis as part of a safe task force, Lee said.
He also plans to provide an $80 million grant for the Memphis safety initiative, including funds for crime deterrence technology, violent crime reduction, victim safety and support and workforce development.
The governor sent National Guard personnel to Memphis last fall as part of President Trump’s safety task force, a combination of multiple local, state and federal law enforcement.
The federally-led task force has reported making nearly 4,700 arrests since September 2025, but obtaining detailed information has proven difficult. It has also made 48,000 traffic stops, giving citations mainly to impoverished residents.
Lee called the partnership “nothing short of extraordinary” and said the federal resources sent by the Trump administration have helped create “generational change in Memphis” and proved the critics wrong.
Deployment of Tennessee National Guard troops to Memphis led to a lawsuit against the state by Shelby County and state lawmakers who claim it violated the Constitution. A Nashville chancellor ruled in favor of the plaintiffs but allowed the Guard to remain in Memphis while the state appealed the case.
Another $25 million is targeted for rural development grants, and $4.5 million is to go toward a cattle facility at UT-Martin.
Lee also put $70 million in the budget plan to update the state’s main computer system, which is 20 years old. Another $81 million is to go toward other technology plans, including $50 for artificial intelligence investment and a quantum research initiative..
The governor plans to add $25 million to the state’s nuclear fund, along with $11.5 million for workforce grants and new technology.
