EDITOR’S NOTE: This article has been updated to reflect additions and deletions to Gov. Bill Lee’s budget plan.
Scurrying to pass a budget this week as the Tennessee legislature prepares to adjourn, lawmakers are putting their own stamp on the state’s budget despite being hampered by federal cuts that eat into the spending plan.
Republican chairs of the House and Senate finance committee remain uncertain about the impact of reductions in the $24.5 billion the state receives from the federal government.
Similarly, Democrats are asking Gov. Bill Lee’s administration to clue them in on federal cuts that could affect the proposed $59.6 billion spending plan, which is undergoing a bit of transformation as lawmakers put their own ideas into the budget.
With federal funds making up nearly 42% of the state’s budget, Democrats sent a letter Monday to Finance and Administration Commissioner Jim Bryson notifying him that lawmakers need a “clear understanding of current and anticipating reductions” to make decisions.
Federal funds make up 93.4% of Human Services funding, 78.4% of the Department of Military, 61% of the TennCare Bureau, 51.5% of the Transportation Department and 57.8% of the Health Department.
“Understanding the depth and scope of these changes is imperative, not only for budgetary accuracy but also for anticipating impacts on essential services and public trust,” the letter signed by House and Senate Democrats says.
Federal funds make up nearly 42% of Tennessee’s budget, including 93% of state Human Services funding, 78.4% of the Department of Military and 57.8% of the Tennessee Department of Health.
The Finance and Administration Department did not respond immediately to questions.
House finance committee Chairman Gary Hicks said this week he is hearing continually from departments about budget cuts emanating from Washington, D.C. He could not pinpoint any large items but said reductions have been made across several areas, such as the Department of Health, forcing the state to find funds to keep programs going. Lawmakers put $4 million Monday into county health departments to make up for grant reductions from the Centers for Disease Control.
As lawmakers started adding their own touches to the budget Monday, they removed $179 million from the governor’s proposals and added items such as $3 million to an audit of Memphis Shelby County Schools, which would come on top of $3 million already in the governor’s plan for an audit, increased the Attorney General’s Office budget by $4.5 million and inserted $35 million to extend a tax break to broadband internet companies.
The biggest item lawmakers removed from the governor’s budget plan was $60 million for a starter home revolving fund, the Tennessee Journal reported. That was followed by a $35 million reduction in funding for the Duck River water project, $20 million for a Nashville Zoo grant, $20 million for a north data center relocation, $10 million for Youth Villages Memphis Allies and $5 million each for artificial intelligence and Moore Tech.
Lawmakers inserted $78 million for TennCare services through the state’s annual hospital assessment, $37.5 million for a college of applied technology in Robertson County, $20 million for Hurricane Helene relief, $20 million for grants to volunteer fire departments, $20 million to replace the Erwin sewage treatment plant and $10 million to replace equipment at University of Tennessee medical and veterinary schools.
“We’re all watching to see what the federal government’s going to do, because quite frankly we don’t know what that’s gonna look like,” Hicks said. “I certainly support what they’re doing up there with trying to make cuts where it’s necessary. So we’ll have our nose pressed to the glass like everybody else to see how that will affect (the state).”
Tennessee lawmakers have talked about “contingencies” in case of major reductions in federal funds, but they have no “formal plan” to deal with them, said Senate Finance Chair Bo Watson, a Hixson Republican. (Photo: John Partipilo/Tennessee Lookout)
Likewise, Senate finance Chairman Bo Watson said cuts are coming in several areas, ranging from the Department of Human Services to the Education Department but predicted that lawmakers won’t know the scope of reductions before the legislature adjourns, especially considering Congress is working on its budget.
“We’ve got to move forward regardless of what’s happening at the federal level,” said Watson, a Hixson Republican. “Hopefully, we can get the budget out this week.”
Tennessee lawmakers have talked about “contingencies” in case of major reductions, but they have no “formal plan” to deal with them, Watson said.
Among the cuts coming from the Trump administration, Second Harvest Food Bank in East Tennessee canceled more than 377,000 pounds of food costing $722,000 because of a funding pause, according to Democrats.
The Department of Health is ending sexually transmitted infection (STI) monitoring contractors, a move leading Metro Nashville to file suit.
TennCare, the state’s Medicaid program for 1.7 million low-income people, could see funding gaps because of the expiration of a federal match.
In addition, state residents are likely to see energy assistance reductions, some of which could affect 1,000 households in upper East Tennessee, according to Democrats’ letter.
Tennessee Lookout is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Tennessee Lookout maintains editorial independence. Contact Editor Holly McCall for questions: info@tennesseelookout.com.
SUMMARY: Rome Ramirez, former Sublime member, celebrates his solo debut with the single “Why Me.” The song reflects his 15-year journey with Sublime, flipping the negative question “Why me?” into a message of gratitude and perseverance. Written with close friend Chris Galbuta, the track showcases Ramirez’s personal growth. The debut single’s cover artwork features a young Ramirez with a Sublime poster, symbolizing his roots. Ramirez, now living in Nashville, is also gearing up for upcoming festivals, including Summerfest in Milwaukee, while releasing more music throughout the year. He remains grateful for his experiences with Sublime and his musical journey.
He is a multi-platinum singer and songwriter, and now He is debuting his solo career today on Local On 2! You know Rome Ramirez from his time as the front man of Sublime and Rome! Now he is stepping out on his own with his new song, “Why Me?”
www.thecentersquare.com – By Kim Jarrett | The Center Square – (The Center Square – ) 2025-04-18 12:36:00
(The Center Square) – Tennessee’s revenues for March were $33.3 million less than the budgeted estimates, according to Department of Finance and Administration Commissioner Jim Bryson.
The $1.6 billion in collections is $69.3 million less than March 2024.
“Sales tax receipts, which reflect February’s consumer activity, were likely impacted by adverse weather conditions,” Bryson said. “Corporate tax collections came in slightly below target but remained largely in line with expectations.”
Fuel taxes exceeded budget expectations, increasing by $9.1 million, a 10.39% jump.
Corporate collections are down 13.9% when compared to March 2024, a difference of $44 million. Corporate tax revenues year-to-date are 9.65% below estimates and down 22% when compared to August 2023 to March 2024 numbers. The General Assembly passed a corporate franchise tax cut in 2024 that was estimated to cost the state $1.6 billion. Corporations started applying for the tax break in May 2024.
Bryson reported a decline of $35.4 million in general fund revenues for March.
“Although we fell short of our monthly target, year-to-date revenues remain just below forecast,” Bryson said. “We will continue to closely monitor economic indicators and revenue trends to maintain fiscal stability.”
March is the eighth month of the fiscal year 2024-2025 budget.
The General Assembly passed the $59.8 billion budget for fiscal year 2025-2026 earlier this week, which does not include any tax breaks.
Lawmakers from both parties raised concerns about possible federal budget cuts that could affect Tennessee. Sen. Bo Watson, R-Hixson, said when the budget process began in February that the state was already seeing a freeze in some programs.
House and Senate Democrats sent a letter to Bryson this week asking for more details on federal budget cuts.
WASHINGTON — The U.S. Supreme Court announced Thursday it will hear oral arguments next month over President Donald Trump’s efforts to restructure birthright citizenship, though the justices won’t decide on the merits of the case just yet.
Instead, they will choose whether to leave in place nationwide injunctions from lower courts that so far have blocked the Trump administration from implementing the executive order.
The oral arguments, scheduled for May 15, will likely provide the first indication of whether any of the nine justices are interested in revisiting the Court’s interpretation of the 14th Amendment, which was ratified in 1868 following the Civil War.
The amendment states that “all persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.”
The Supreme Court ruled in 1898 in United States v. Wong Kim Ark that the 14th Amendment guarantees any child born in the United States is entitled to U.S. citizenship, even if their parents are not citizens.
Trump disagrees with that ruling and signed an executive order on his first day in office seeking to change which babies born in the United States become citizens. If that order were implemented, babies whose parents were “unlawfully present in the United States” or whose parents’ presence “was lawful but temporary” would not be eligible for citizenship.
Several organizations and Democratic attorneys general filed lawsuits seeking to block the executive order, leading to nationwide injunctions against its implementation.
Last month, the Trump administration asked the Supreme Court to intervene in the lower court’s nationwide injunctions, limiting them to the organizations and states that filed suit.
The three cases are Trump v. State of Washington, Trump v. CASA, Inc. and Trump v. State of New Jersey.
Legislation
Nationwide injunctions by lower court judges have become an issue for Republicans in Congress as well as the Trump administration.
Iowa Republican Sen. Chuck Grassley introduced a bill in Congress that would bar federal district court judges from being able to implement nationwide injunctions.
“We all have to agree to give up the universal injunction as a weapon against policies we disagree with,” Grassley said during a hearing earlier this month. “The damage it causes to the judicial system and to our democracy is too great.”
Tennessee Lookout is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Tennessee Lookout maintains editorial independence. Contact Editor Holly McCall for questions: info@tennesseelookout.com.
