Proposed Budget Highlights
The governor’s fiscal 2023 budget focuses on making strategic investments that focus resources on new efforts to improve the lives of Tennesseans. Investments are proposed in the following areas:
Investments in Education and Workforce Development
- $750 million to change the funding formula for K-12 education starting in fiscal 2024. The governor proposes to use the $750 million for the following nonrecurring items in fiscal 2023:
- $500 million to provide innovative career and technical education grants to all high schools and middle schools in the state.
- $200 million to relocate 14 schools currently in flood plains,
- $50 million for allocation to the Governor’s Investment in Vocational Education and Supporting Postsecondary Access in Rural Communities grant programs.
- $70.5 million for funding of the Basic Education Program formula and a $124.7 million increase to the instructional salary component of the formula.
- $16 million recurring and $16 million non-recurring for the Charter School Facilities fund.
- $25.5 million for continuation of summer bridge camps to combat pandemic-related learning loss.
- $90 million to fully fund the outcome funding formula for the University of Tennessee system, Locally Governed Institutions, and the Board of Regents. This appropriation will keep tuition at higher education institutions flat in the 2022-2023 academic year.
- $66.3 million for a 4 percent salary increase for higher education employees.
- $19.4 million to reduce the waitlist for programs at Tennessee Colleges of Applied Technology.
Investments in Health and Social Services
- $25.5 million to provide dental benefits to all adult TennCare enrollees.
- $11.9 million of nonrecurring funds to address unmet dental services needs and increase the number of dentists practicing in the state.
- $21.8 million to extend services in the Tennessee Early Intervention system to a child’s fourth birthday.
- $90.8 million for provider rate increases.
- $88.8 million for the Department of Intellectual and Developmental Disabilities Services Employment and Community First CHOICES program to increase services to enrollees.
- $50.4 million to expand the Extension of Foster Care program and childcare vouchers to more foster care and adoptive children.
- $5.5 million to expand the Court Appointed Special Advocates program statewide.
- $10.4 million to eliminate the waitlist for the OPTIONS for Community Living program.
Investments in Public Safety
- $43.2 million to increase correctional officer salaries at state and privately-operated prisons.
- $150 million of non-recurring funds for violent crime intervention grants to local law enforcements.
- $25.3 million for evidence-based programming seed grants.
- $1 million to Department of Corrections to provide treatment for those incarcerated.
- $25 million to prepare offenders for life after prison.
- $25.2 million to increase the number of law enforcement agents statewide.
- $178.9 million of non-recurring funds to improve infrastructure of the Tennessee Advanced Communications Network.
- $4.97 million to expand partnership with the Tennessee Board of Regents to provide correctional officer training.
- $30.1 million for local law enforcement recruitment bonuses.
- $24 million for Tennessee Law Enforcement Training Academy training.
Investments in Business and Rural Initiatives
- $103 million with $18 million recurring funds for the Jobs4TN program to create new opportunities for Tennessee’s workforce.
- $26 million for grants and services to assist rural communities and distressed counties.
- $25 million of non-recurring funds for a grant fund to attract major entertainment, sports, and convention events to the state.
- $9.5 million of non-recurring funds to further develop the state fair site in Wilson county.
- $9.6 million to the forestry division in the Department of Agriculture for maintenance needs and other operations.
- $626.5 million ($3.5 million recurring) to be transferred from the general fund to the Department of Transportation for the following:
- $519 million for new road projects.
- $100 million to accelerate completion of existing IMPROVE act projects.
- $4.0 million for enhanced litter removal along roads.
- $3.5 million for the Transportation Equity Fund.
Investments in Resources and Regulation
- $13.4 million to establish the necessary infrastructure and environmental readiness at the Memphis Area Regional Megasite.
- $28 million of non-recurring funds for state parks and natural areas to address maintenance.
Investments in Employees
- $64.4 million to continue to implement Pay for Performance in executive branch agencies.
- $15.4 million for salary increases for state employees not covered by the Tennessee Excellence, Accountability, and Management Act.
- $120 million to address employee salaries in relation to the market.
- Investments in employee benefits in the following areas:
- $21.3 million for retirement.
- $57.1 million for group health insurance.
- $48.3 million of non-recurring funds to double the state match to employees’ 401(k) accounts for the first $50 employee contribution.
- $350 million one-time deposit to the Tennessee Consolidated Retirement System Trust Fund and $300 million one-time deposit to the Other Postemployment Benefits Trust Fund to reduce unfunded liabilities in both trust funds.