FY2021-2022 Budget Overview

Overview

Governor Lee has proposed a fiscally conservative Fiscal Year 2022 budget that focuses on economic stimulus, smarter investments, and preparing for the future. This budget reflects the Governor’s priorities to create  good jobs, great schools, and safe neighborhoods. The budget also includes record investments in broadband, teacher salaries, increasing reserves, and local infrastructure. Because of Tennessee’s strong financial leadership, Tennessee has been ranked number one in fiscal stability by US World News & Report in both 2019 and 2020.

Budget Framework and Principles

• Grow the economy and create jobs
• Return to Pre-Pandemic Priorities
• Focus on Evidence-Based Budgeting
• Increase Reserves
• Ensure Efficiency and Transparency
• Won't Raise Taxes
• Won't Utilize Reserves
• Won't Cut Education Funding
• Won't Deplete Unemployment Trust Fund
  

Proposed Budget: $41.8 Billion

Key Highlights

$71 Million – BEP Funding - Fully funds state share of BEP for K-12 education

$200 Million – Broadband Expansion - Combined with private investment, ensures every Tennessean has access to high speed broadband

$120 Million – Increase State Funding of Teacher Salaries - Includes 2% increase in addition to 2% increase passed during Special Session

$50 Million – Rainy-Day Fund Deposit - Includes highest reserves in history to prepare for uncertainty ($1.5B in RDF and $500M in TennCare reserve)

$150 Million – COVID Relief & Support - Provides testing, vaccine supports, hospital and school assistance, PPE and more

$931 Million – Capital Maintenance & Improvements - Preserves current assets and creates jobs 

$2 Million – Health Care Safety Net - Provides additional access to care for the uninsured

$7 Million – Postpartum Care for TennCare Population - Extends coverage to 12 months

$21 Million – Rural Opportunity Site Grants - Invests in attracting top business to rural Tennessee 

$200 Million – Local Infrastructure Grants - Supports reinvestment and improving assets

$30 Million – State Parks - Eliminates deferred maintenance and improves accessibility 

$8 Million – Tourism Initiatives - Improves marketing to reattract visitors