Governor Lee Touts Passage Of $42.6 Billion State Budget

Thursday, April 29, 2021

The Fiscal Year 2021-2022 budget has passed through the General Assembly. The budget totals $42.6 billion and, according to Governor Bill Lee, includes historic investments in literacy, mental health, broadband, and safety.

“I’m proud that this budget delivers on some of our top promises to Tennesseans and invests in external organizations meeting the needs of our local communities,” said Governor Lee. “Thank you to the General Assembly for their steadfast commitment to our shared goals and establishing Tennessee as a fiscal leader across the nation.”

He said, "As a result of fiscal prudence and over $180 million in spending reductions from the state agencies, Tennessee is able to return to pre-pandemic priorities and invest in public-private partnerships.

The budget includes $100M to provide high speed broadband to every Tennessean, a $250 million investment in the Mental Health Trust Fund, $79 million to eliminate the 11,400 person TCAT waiting list and $145 million for air and rail transportation infrastructure.

Department of Finance and Administration Commissioner Butch Eley said, “I’d like to thank the General Assembly for their outstanding partnership in passing this historic budget. I am proud of the way state agencies worked hard to curtail spending, allowing us to make long-term strategic investments in the future of our state. This budget will enable us to maintain Tennessee’s status as one of the best fiscally managed states in the nation.”

Governor Lee said the budget includes "strategic investments in public-private partnerships, non-profit organizations, and external partners to support Tennesseans’ top priorities without growing government." Those highlights include:

Pro-Life & Pro-Family

$500K to Agape Child & Family Services
$250K to Families Free, Inc.
$3M to Human Coalition
$50K to Isaiah 117 House
$183K to Psalm 139 Project

Fighting Human Trafficking & Supporting Victims

$3.5M to End Slavery Tennessee
$1.2M to Her Song, a Ministry of the Tim Tebow Foundation
$600K to Tennessee Anti- Slavery Alliance

Career & Technical Education

$1M to Associated Builders and Contractors Greater Tennessee Chapter
$150K to Center for Employment Opportunities
$40K to Flight Foundation
$700K to Niswonger Foundation
$478K to Tennessee Builders Education Foundation

K-12 Education

$225K to Boys & Girls Clubs of the Clinch Valley – Oak Ridge
$200K to Niswonger Foundation

Criminal Justice Reform

$600K to Carroll Academy
$121K to Lipscomb University, Lipscomb Life Program
$250K to Tennessee Higher Education Initiative

Mental Health & Substance Abuse

$150K to Helen Ross McNabb Center
$305K to The Jason Foundation
$100K to Thistle Farms

The budget includes $50 million to provide a week-long sales tax holiday on groceries and prepared food. The governor initially proposed a two-week sales tax holiday. It does not add new debt and contains the highest reserves in history, bringing the Rainy-Day Fund to $1.55 billion.

Key FY21-22 budget highlights include: