NEWS

Transportation, state library, Gatlinburg relief bolstered in Haslam's latest budget

Joel Ebert
USA TODAY NETWORK - Tennessee
Bill Haslam

Gov. Bill Haslam on Tuesday proposed additional funding for transportation, the state’s library and archives, and Gatlinburg disaster relief efforts, in addition to the budget he proposed earlier this year.

The additional spending was announced Tuesday morning during a Senate finance committee meeting as Finance and Administration Commissioner Larry Martin outlined the governor’s amended budget. The changes to the budget are necessary because governors are required to present their annual budget by Feb. 1.

Tuesday’s additional spending — commonly known as the governor’s budget amendment — allows for adjustments that are made during the legislative session while also providing an update based on the state’s latest revenue projections.

► RELATED:  Haslam unveils budget proposal, $100 million for employee and teacher raises

Haslam’s amended budget calls for moving $55 million from the state’s general fund to the highway fund on a one-time basis, in part, due to the phase-in of the governor’s recently approved gas tax proposal. Haslam’s gas tax plan was altered to include a phased-in approach, which Martin said necessitates the need for the budget to be adjusted in order to help start transportation projects sooner.

The governor's proposal seeks to raise the tax on gasoline and diesel fuel by 6 cents and 10 cents, respectively, over a three-year period, while also calling for a variety of other tax cuts.

► RELATED:  Tennessee gas tax increase: What it means for you

The governor’s latest proposal also calls for $40 million for a new state library and archives building, which lawmakers and Secretary of State Tre Hargett have advocated for in recent years. The new building would house the state’s historical records, some of which have been held in storage. The state’s library and archives building is 65 years old.

Martin said the $40 million paired with $10 million from Hargett's office would cover about half the projected costs for the new building. The new facility is set to be built near the forthcoming state museum, which is under construction near the state Capitol.

About $10.6 million is also included in Haslam’s amended budget to provide additional disaster relief in Gatlinburg and Sevier County related to last year’s wildfires.

An additional $22.3 million in Haslam's latest budget is set aside for LG Capital, which announced in February that it would be building a plant in Clarksville that would bring more than 500 jobs. The expense is paired with a $20 million reduction from the state Department of Economic and Community Development's budget for the FastTrack program, which assists communities with attracting new businesses.

Beyond the one-time expenditures, Haslam’s amended budget calls for $8 million in recurring salary increases for Department of Intellectual and Developmental Disabilities service providers and an additional $2 million for the Department of Mental Health and Substance Abuse Services.

“This amendment builds on our priorities by making strategic and thoughtful investments across state government,” Haslam said in a news release. “Because of the conservative fiscal responsibility we have shown, we can be the state with the lowest taxes and the lowest debt while providing Tennesseans not only with access to opportunity but the tools to be successful, like a safe and reliable transportation network that supports long-term growth.”

Haslam’s additional funding proposals come one day after Martin's office announced that the state's tax revenue in March was $100 million less than was collected in the same month last year. Martin, who stressed caution while not signaling alarm, also noted that the state's general fund revenue was nearly 8 percent, or $71 million, below projections in March.

On Tuesday, Lt. Gov. Randy McNally said while the latest revenue estimates are not necessarily a cause for significant concern, it stresses the need for conservative estimates and continuing to build the state's budget reserves, known as the rainy day fund.

"We have been fortunate to have seven years of sustained growth in the economy, but downturns are inevitable," McNally said in a statement. "I am grateful that our strong financial position gives us the ability to weather periodic slumps better than most. We must continue our sound financial practices in order to protect our citizens and our state economy in the future."

Budget highlights

Other highlights in Haslam’s latest budget include:

  • $11.8 million to reimburse the Tennessee Valley Authority for a 20-year agreement to run water in the Ocoee River for whitewater rafting 
  • $11 million in film commission grants (one-time)
  • $5 million for additional funding of the veterans property tax relief program included in the IMPROVE Act (recurring)
  • $3.9 million to implement the Tennessee Board of Regents campus security task force recommendations (one-time)
  • $2.5 million grant to Memphis Research Consortium (one-time)
  • $1.2 million for a parking garage at Columbia State Community College (one-time)
  • $1 million grant for Teach for America (one-time)
  • $500,000 for Meharry Wellness Project (recurring)
  • $500,000 grant for the African American Museum in Nashville (one-time)
  • $150,000 for NAACP 100th Anniversary and Martin Luther King Jr. 50th Anniversary Memorial (one-time)
  • $100,000 grant to the Oliver Springs Historical Society (one-time)

The Associated Press contributed to this report. 

Reach Joel Ebert at jebert@tennessean.com or 615-772-1681 and on Twitter @joelebert29