What's New On The Hill 4/19/2024
Yesterday, the FY24-25 $52.8 billion state operating budget passed by both the House and the Senate with bipartisan support.
The budget, effective from July 1, 2024, reflects a reduction of approximately $10 billion compared to last year's record budget due to flat revenues and expiring federal funds.
While bringing the state back to pre-pandemic spending levels, this budget relies more on state funds rather than federal allocations.
Legislative leaders emphasize a conservative and responsible budgeting approach, prioritizing recurring revenue over non-recurring spending items to avoid escalating state liabilities.
Highlights of the budget include:
Businesses will see a recurring reduction of approximately $400 million through the removal of the alternative measure portion of the franchise tax.
Over $1.5 billion in non-recurring funds will be allocated for three years of retroactive refunds, benefiting businesses over-collected franchise tax based on the alternative measure.
A $10 million grant is designated for Nuclear Development initiatives.
The Tennessee Investment in Student Achievement funding formula receives a significant boost of $261 million, with $125 million allocated for teacher salary increases and retirement contributions.
$40 million is earmarked for Infrastructure improvements at the I-24 industrial site under the Economic and Community Development (ECD) initiative.
A budget allocation of $15.8 million is dedicated to the rural health pathways workforce development program.
Consideration is ongoing for the allocation of $144 million in funding for a statewide school voucher program.
Once the budget is signed by the Speaker of the House and Senate, it will be transmitted to the Governor's desk for action or for his signature. We will send further details and insights with the Governor’s final signature.
Tennessee's Strawberry Season is Here!
As fields across the state burst into red, please support your community and local farmers by purchasing fresh strawberries.
Strawberry season typically lasts four to six week and you can Download the free Pick Tennessee mobile app or visit www.PickTNProducts.org to locate a farm near you.
"Bible of the Revolution" Named one of Tennessee’s State Books
Governor Lee signed legislation designating the Aitken Bible, alongside nine other notable works, as the state's official books.
While the move was largely celebrated, there was some minor pushback citing concerns about the separation of church and state.
Exciting Economic Growth for West Tennessee!
On Wednesday, Gov. Bill Lee and TNECD Commissioner Stuart McWhorter announced that Firestone Industrial Products will invest $8.9 million to expand manufacturing and distribution at its Firestone Airide facility in Dyersburg
Franchise Tax Reform Heads to Conference Committee
As the House and Senate grapple with reconciling their disparate versions of HB1893 (Lamberth) / SB2103 (Johnson), Governor's proposed franchise tax reform, a conference committee has been convened to bridge the gaps as the committee aims to resolve differences and finalize the bill for passage.
The Senate's appointment of Majority Leader Jack Johnson, Caucus Chairman Ken Yager, Finance Chair Bo Watson, Senator John Stevens, and Minority Leader Raumesh Akbari, alongside the House's selection of Majority Leader William Lamberth, Finance Chair Patsy Hazelwood, Finance Subcommittee Chair Gary Hicks, Appropriations Subcommittee Chair Ryan Williams, and Representative Larry Miller, underscores the collaborative effort to reach consensus.
While substantial alignment has been achieved between the versions, a critical point of contention remains: the House's insistence on requiring the Department of Revenue to disclose the names and refund amounts of businesses receiving refunds. Concerns over taxpayer anonymity and the confidentiality of tax information have prompted vigorous debate.
A potential compromise may entail disclosing business names grouped by refund size, striking a balance between transparency and privacy. However, the final resolution hinges on the House and Senate agreement on the conference committee's report, slated for next week.
Stay tuned for further updates on the Governor’s Franchise and Excise legislation.
Tennessee's revenue collection soared in March, surpassing expectations and marking a significant milestone in fiscal management. The state garnered nearly $1.7 billion in taxes and fees, exceeding estimates by $17.6 million and outpacing March 2023 figures by $55.1 million.
A substantial portion of this can be attributed to robust sales and use tax revenue, which reached nearly $1.1 billion, surpassing estimates by almost $50 million and exceeding March 2023 levels by $65 million.
Despite these gains, the state still faces a shortfall of $420 million against budgeted estimates for the first eight months of the fiscal year. February fell short by $60 million, following an $86 million deficit in January.
Recognizing the consistent shortfall, Tennessee's State Funding Board adjusted next year's budget estimates, reducing them by $718.8 million from the original projections. The revised estimates anticipate a flat year-over-year scenario, with a modest 0.5% increase in collections compared to the current fiscal year.
As the state monitors economic trends, the robust March revenue offers a promising outlook for Tennessee's commendable financial stability.
Certificate of Need Reform Advances: House Greenlights Overhaul
The House has approved a bill aiming to overhaul the state's certificate of need (CON) program for health providers, sending it to the Senate for further consideration. The measure, championed by Representative Clark Boyd, received bipartisan support, passing with a vote of 76-12, with four members abstaining.
Under the proposed legislation, certain areas within the CON program, such as rehabilitation hospitals, home health agencies, hospice, methadone clinics, and nursing homes, would remain unchanged. However, significant modifications are slated for other aspects of the program.
One notable change permits entities to establish freestanding emergency rooms in any county of the state by July 1, 2025, provided they remain within 35 miles of a host hospital. The bill also outlines a phased approach to removing various services from CON oversight, with burn units, neonatal intensive care, and other facilities set to transition out of the process in the coming years.
The bill includes provisions for ongoing evaluation, requiring the Health Facilities Commission to conduct a comprehensive study on the impact of CON reform over the next six years. Additionally, any service exiting the CON framework would be subject to stringent licensing standards to ensure quality and compliance with state regulations.
As the legislation advances to the Senate, stakeholders continue to debate the balance between deregulation and safeguarding access to vital healthcare services across Tennessee.
School Voucher Program in Legislative Limbo
While vouchers remain in limbo, negotiations are ongoing amidst legislative deadlines. The Senate's voucher bill is poised for approval, while the House seeks to reconcile differences, offering enticements for public school supporters. Democrats oppose either bill as the session nears its end. The budget also allocates additional funds for K-12 education, including raising base teacher pay. Despite debates and amendments, the voucher program's fate remains uncertain as lawmakers weigh options for the state's education funding.
IN THE NEWS
Tennessee General Assembly passes 'Jillian's Law' in honor of slain Belmont student
The Tennessee General Assembly on Monday voted to block criminal defendants who are deemed mentally incompetent and unable to stand trial from legally buying or possessing a gun, legislation sparked by the shooting death of Belmont University student Jillian Ludwig last year.
TENNESSEAN.COM - April 16, 2024
Budget clears House, Senate panels, but voucher bill on hold
Finance committees in the House and Senate passed a $52.6 billion budget Tuesday containing funds for a private-school voucher plan. But the bill to create a voucher program stayed stuck in neutral – if not dead.
TENNESSEELOOKOUT.COM - April 17, 2024Tennessee Bill That Would Create a Live Music Fund for Indie Venues Passes State Legislature
A bill to create a new statewide live music fund in Tennessee has passed in the state’s Senate and House. It will now head to the desk of Governor Bill Lee, who is expected to sign it into law.
BILLBOARD.COM - April 17, 2024'Different perspective' Tenn. House and Senate at odds over business tax rebate. Here's why it matters.
Tennessee lawmakers have cut taxes before, but this year, they also want to give businesses millions of dollars in tax refunds. Only, the Tennessee House and Senate can't agree on how much they should refund and how to go about it.
NEWSCHANNEL5.COM - April 17, 2024East Bank development project moving forward
The East Bank development project has the green light to begin after Metro Council unanimously agreed to give Boston-based developer The Fallon Company a 99-year lease to develop 30 acres of Metro land.
WKRN.COM - April 18, 2024Tennessee Bill That Could Put Violent Illegal Aliens Behind Bars For Life Passes Senate, Taken Off Notice In House Subcommittee
Legislation that would put illegal aliens convicted of violent crimes behind bars for life passed on the Senate floor by a 27-4 vote on Thursday after being taken off notice in the House of Representatives.
TENNESSEECONSERVATIVENEWS.COM - April 19, 2024Child Rapist Death Penalty Bill Revived In Tennessee House After Being Placed “Behind Budget”
A bill to allow for the death penalty as punishment for child rapists in Tennessee has been revived in the House of Representatives after being placed “behind the budget” in the House Finance, Ways and Means Subcommittee back in February.
TENNESSEECONSERVATIVENEWS.COM - April 18, 2024Year-Round Boarding Schools Bill For Tennessee’s “At-Risk” Youth Funded, Scheduled For House Floor Vote
A bill to create year-round boarding schools or “opportunity public charter schools” for “at-risk” youth in Tennessee has been pulled from behind the governor’s budget in the House Finance, Ways and Means Subcommittee, and has been scheduled for a vote on the House floor on April 18th.
TENNESSEECONSERVATIVENEWS.COM - April 18, 2024Tennessee House Passes Bill To Improve Process Of Removing “Squatters” From Property
The Tennessee House has passed a bill that protects the rights of property owners against “squatters.”
TENNESSEECONSERVATIVENEWS.COM - April 18, 2024Tennessee GOP Removes 14 Republicans From State Ballot For U.S. House, Senate Races
Tennessee’s Republican Party officials removed several candidates from the August primary ballot after questions were raised about whether they were “bona fide” party members, leaving several seats unopposed.
TENNESSEECONSERVATIVENEWS.COM - April 18, 2024