Tennessee House passes budget, but standoff expected with Senate

Lt. Gov. Randy McNally bangs the gavel as House Speaker Glen Casada looks on at the start of Bill Lee's inauguration Jan. 19, 2019.

The House of Representatives has passed its version of the state budget, though anticipated disagreements with the Senate could lead the all-important $38.5 billion document to be settled in a conference committee.

The House version of the state's spending plan for fiscal year 2019-2020 heavily relies on Gov. Bill Lee's proposed budget, as well as specific House initiatives adopted on Wednesday after being approved by the Finance, Ways and Means committee.

The budget passed 95 to 1, with Rep. Bo Mitchell, D-Nashville, casting the lone no vote after changing from a yes at the final second. The chamber erupted in laughter as Mitchell voted against the budget.

Ahead of the vote, Rep. Susan Lynn, R-Mt. Juliet, gave an overview of the spending plan, which she described as a "conservative budget" with an unprecedented $225 million deposit into the state's reserves, known as the Rainy Day Fund.

"There's a lot of money we're not spending," said Lynn, who is in her first year as chair of the finance committee.

Senate expected to vote on budget early next week

The Senate plans to vote on its version of the budget early next week, departing from its historic tradition of passing a budget ahead of the House.

Senate finance chairman Bo Watson, R-Hixson, said the budget process in the upper chamber was “right on track.”

Senate Majority Leader Jack Johnson, R-Franklin, said the Senate's budget will look different than the House's, prompting continued conversations between the legislative leaders.

"There's a chance we could go to conference on the budget," he said.

Lynn said House leaders would be meeting with the Senate again on Sunday to discuss the issue.

Watson said conference committees over the budget are rare, with the last one having occurred during Gov. Bill Haslam's first year in office.

Disagreement expected over Medicaid waiver funding

As House Republican leadership has repeatedly said in recent days, the chamber is funding a $27 million Katie Beckett waiver program through revenue expected to come from a online sales taxes being collected later this year.

The program would provide funding for treatment of children with disabilities and severe medical conditions whose families don't qualify for TennCare, the state's version of Medicaid.

Senate Republican leaders have said they're unsure how and whether they'll fund the Katie Beckett waiver program in their version of the budget, while the House insists it's prepared for a fight to include it.

"Because you included that, I personally will be voting for this (budget)," said House Democratic Caucus Chairman Mike Stewart, D-Nashville, of the House's decision to fund the Medicaid waiver program.

"I think that’s an extraordinary action, and so important for our citizens. I think it's really good we're taking the lead on that issue."

House members — including Speaker Glen Casada, R-Franklin, who has said the chamber is committed to fully funding the Katie Beckett waiver — applauded after Stewart's remarks.

Another Democrat, Rep. Antonio Parkinson of Memphis, also announced he would vote in favor of the budget because he was pleased with the process in the House and did not feel he had been "run over," as in previous years.

"This is the first time I've also seen where the Tennessee House is the driver of the train," Parkinson said, alluding to Casada's previous assertion that the House would take a greater role in the budget process this session.

Among the projects funded by the House's $18 million discretionary spending for legislative initiatives was:

  • $4.5 million to cover the loss of revenue from fiber-optic cable tax cuts to improve Internet access.
  • $3.1 million in health care safety net grants.
  • $1 million in additional Economic and Community Development grants. 
  • $1 million in grants to the state's four accredited zoos and the Tennessee Aquarium.
  • $750,000 in financial aid for students enrolled in a new medical education program through Middle Tennessee State University and Meharry Medical College.
  • $500,000 for grants to volunteer fire departments.
  • $490,600 related to establishing new elder abuse criminal offenses.

The Senate has $24.4 million left to use for its priorities.

Reach Natalie Allison at nallison@tennessean.com. Follow her on Twitter at @natalie_allison.

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