State Budgets: Tennessee Cuts Non-Education Spending, Hopes for Future Federal Bailout
Gov. Phil Bredesen (D) is now estimating a budget shortfall of between $884 million and $1.02 billion (out of a $27 billion budget). The estimate has accelerated, with Bredesen in August warning departments to cut spending by 3%, revised to 10% in November, then 15%, and now 20%. The state may extend a hiring freeze, and the rainy day fund may be exhausted just to close this year’s budget. K-12 education spending is exempt from the cuts. Bredesen hopes that increased federal Medicaid spending as part of a stimulus or bailout of the states will allow Tennessee to shift $500 million from Medicaid to other budget items.
More on Tennessee here.
Was this page helpful to you?
Thank you!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationLet us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback