Lee Administration’s $59.5 Billion Budget Presented In Tennessee Senate Finance Committee

Bryson was joined by the department’s Budget Director David Thurman and Assistant Director Alex Schuhmann.

The commissioner noted that during Covid-19, Tennessee approached usage of federal funding differently than some other states.

“During the Covid years, many states started new programs and expanded existing ones. These states now find themselves in a financial crisis since growth has slowed or stopped entirely. That is not true in Tennessee,” said Bryson. “The Tennessee General Assembly stuck to a policy of smart planning and spending constraint during these years.”

According to Bryson, Tennessee is now in an “enviable” position due to how the state conducted itself financially during that same time frame.

When Sen. Jeff Yarbro (D-Nashville-District 21) asked why the state’s general fund remains relatively flat despite the growing economy, Bryson attributed it to various tax reductions. 

“My impression on that would be the tax reductions that we’ve had over the past several years have impacted our tax revenues and kept us relatively flat,” said Bryson. “I think the good news on that is that we haven’t lost ground. We are gaining ground, just more slowly than we would have otherwise.” 

Some of the key takeaways from Tuesday’s presentation:

• State revenues are expected to grow from $27.1 billion to $29.5 billion in FY25-26.
• Total revenues are expected to drop down to $56.4 billion overall due to Covid dollars and other federal programs coming to an end.
• Tax growth is slowing but still present. An estimated 2% increase in tax revenue, about a $540 million increase, is expected in FY25-26.
• This year, each state agency reviewed their budget and offered a 1% budget reduction. Over $94 million in budget reductions have been made.
• 372 state troopers have been added within the last five years. There are now over 1,000 troopers on Tennessee’s roads.
• 22 new positions will be added to TBI this year, meaning a total of 235 positions will have been added since FY19, making for a grand total of 788 “crime-fighting professionals” serving TBI.
• Two years ago, $3 billion was set aside for road improvements. This budget proposes an additional $1 billion investment. The estimated “outstanding need” across the state is currently $30 billion.
• This budget proposal would put an additional $72.6 million towards nuclear energy initiatives.
• According to Commissioner Bryson, the state is “on track” to make starting pay for public school teachers $50,000/yr by the end of this administration. 
• Some of the recent special session expenditures, approximately $495,519,700, have been accounted for as part of the FY24-25 budget. This includes disaster relief initiatives and some of the education initiatives that were passed.

“The most persistent question that I get on this is, where did that money come from?” Bryson said in reference to the special session expenditures.

“We budget out to the departments and give them the budget to do what they need to do but if they don’t spend that money, it comes back to us so we can actually put it in the next year’s budget,” said Bryson. “That’s a reversion.”

According to Bryson, the money in the FY25 budget that was used for certain special session expenditures was actually originally part of the FY24 budget.

Those funds were not used during FY24, so they were reverted and made available for use in the FY25 budget.

Additional presentations on more specific areas of the budget will be made in other committees as the 2025 legislative session continues.

About the Author: Adelia Kirchner is a Tennessee resident and reporter for the Tennessee Conservative. Currently the host of Subtle Rampage Podcast, she has also worked for the South Dakota State Legislature and interned for Senator Bill Hagerty’s Office in Nashville, Tennessee. Adelia is The Tennessee Conservative’s on-site reporter for the Tennessee General Assembly. You can reach Adelia at adelia@tennesseeconservativenews.com.