Video of Lee’s State of the State | Budget | Budget Infographic

Governor Bill Lee delivered his fourth State of the State address, returning to the Tennessee House Chambers for 2022 after last year’s speech was delivered from the War Memorial Auditorium. Lasting under an hour, the speech was his final of his first term and placed a strong focus on education and a number of spending initiatives for 2022. Governor Lee made the case for his proposed budget for the 2022-23 fiscal year. All told, this year’s budget will total a whopping $52.6 billion. The most in Tennessee history and a 25% increase over last year’s version. Over $1 billion of which is new, recurring spending. Primarily, Governor Lee announced significant investments totaling $1 billion in K-12 education, an effort the Chamber has provided guidance and expertise toward. That includes a $750 million recurring increase for the new K-12 education funding formula. The proposal, if passed would go into effect in 2024. The Chamber is currently evaluating the Governor’s education proposal. 

The administration is proposing $623 million to accelerate projects listed in the IMPROVE Act and invest in transportation projects. Governor Lee also committed $2.5 million toward the Future Workforce Initiative which aims to put Tennessee in the top 25 states for creating technology jobs through launching new Career and Technical Education (CTE), Computer Science (CS), and STEM-focused programs in public schools. Notably, an additional $103 million is being directed to the FastTrack program, ensuring the Tennessee Department of Economic and Community Development has the tools to recruit and retain top companies. 

The Tennessee Chamber will provide more details in the coming weeks on these efforts. Here are some of the initiatives outlined in tonight’s address: 

Education:

  • $1 billion in new, recurring education spending for Tennessee public schools across Tennessee.
  • $2.5 million investment in the Future Workforce Initiative.
  • $125 million raise to teacher pay this year.
  • $200 million in TCAT expansions.
  • $90 million investment in Tennessee’s nationally-highlighted outcomes-based funding formula at the higher education level.
  • $250 million dollar investment to improve the physical infrastructure at TSU.

Infrastructure and Major Investments:

  • $100 million allocation towards the IMPROVE Act to ensure progress on critical projects.
  • $250 million toward road infrastructure projects in the fastest growing counties.
  • $18 million allocation to attract 150 new primary care residents for rural Tennessee.
  • $4M to enhance litter cleanup on Tennessee highways
  • $103M for the FastTrack program, ensuring the Tennessee Department of Economic and Community Development has the tools to recruit and retain top companies to call Tennessee home.
  • Formalizing a long-term strategy to develop the Clinch River Nuclear Site.
  • $40M to invest in environmental cleanup, including National Priority List sites.
  • 5% State employee reduction without layoffs.
  • $26M for Rural Opportunity Grants, helping to get communities ready for business investment

A Record Breaking Year:

  • Largest budget in the state’s history, $52.6 billion (an increase from $41.8 billion in FY 21-22).
  • Rainy-Day Fund to a highest-ever, $1.6 billion.
  • F&E revenues $1.5 million more than the estimate and the annual growth rate is 21.18 percent.
  • Largest proposed K-12 Education expenditure in state history, $12 billion