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Budget Principles
Maintain education as the state’s top priority Use Recovery Act funds to minimize impact of planned cuts Reduce spending over next two years to ensure budget remains balanced Protect the state’s ability to sustain services through national economic downturn

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23 Billion in Pre-K-12.02 Billion in higher ed capital funds 3 .Budget Record 7 common sense balanced budgets Conservative budget growth Record savings in Rainy Day Fund $750 Million Improved bond rating (AA+) Record investments in education since FY03 $1. $1.

Budget Overview Total FY 09-10 Budget SOURCE TennCare Pre-K−12 Higher Ed Transportation Other RECOMMENDED (including federal dollars) FY09-10 $ 7.12 B $ 3. 7% Higher Pre-K–12 Ed 12% 17% TennCare 26% TOTAL $29.59 B $ 2.96 B Other 38% Trans.34 Billion 4 .64 B $ 5.03 B $ 10.

48 B $ $27.03 5 .34 B 1.03 B 10.96 B $ 29.64 B 5.09 B 4.34 B ARRA $ 7.Budget Overview Total FY 09-10 Budget Impact of Recovery Act funds (including federal dollars) WITHOUT SOURCE TennCare Pre-K−12 Higher Ed Transportation Other TOTAL RECOMMENDED FY09-10 $ 7.7 B 3.12 B 3.59 B 2.36 B 10.

68 M TOTAL $11.24 M 476.89 B 2.09 M 140.Budget Overview FY 09-10 Taxpayers’ Budget (state dollars only) SOURCE Education Health and Social Services Law.10 M 720. Correction State Shared Taxes Transportation General Government Resources and Regulation Business and Economic Dev.66 M 128.13 B 803. Other $ RECOMMENDED FY09-10 $ 4.88 B 1.23 M 311.48 Billion 6 . Safety.

853 3.53%) 9.617 10.290 1.47%) Net decrease in overall state budget.Budget Breakdown Revenue (federal and state dollars) ESTIMATED RECOMMENDED SOURCE (millions) State Appropriations Federal Revenue Other Departmental Tuition and Fees Bonds TOTAL FY08-09 $ 13.336 CHANGE (7.837 3.085 533 $ 29. 7 .56%) (1.08%) 0% (25.085 716 $ 29.591 11.503 1.07% (6.774 FY09-10 $ 12.

72%) (12.607 357 621 170 803 $ 29.45% (74.94%) 0% (1.Budget Breakdown Breakdown by fund (federal and state dollars) ESTIMATED RECOMMENDED FUND (millions) General Fund Transportation* Debt Service Capital Outlay Facilities Revolving Cities & Counties (SST) TOTAL FY08-09 $ 25.774 FY09-10 $ 25.47%) 8 *Includes ARRA Infrastructure funds .772 2.216 2.29%) 20.336 CHANGE 2.2% (22.026 430 157 148 803 $ 29.

146 352 599 720 843 $ 12.Budget Breakdown Appropriations (state dollars only) ESTIMATED RECOMMENDED APPROPRIATIONS (millions) FY08-09 $ 422 5.192 374 493 805 1.617 FY09-10 $ 360 5.980 1.56%) (17.18%) (18.11%) (7.017 $ 13. Transportation Other TOTAL * Includes education lottery appropriations 9 .49 %) (3.50% (10.53%) General Government GENERAL FUND Education * Health and Social Services Law.656 1.591 2.591 CHANGE (14.69%) (1.88 %) 21.86%) (5. Safety & Correction Resources & Regulation Business & Economic Dev.658 3.

475 1.397 940 $ $ 6.16% (3.229 .392 915 $ 11.289 940 $ 6.Budget Breakdown State tax collections Dept.604 1. of Revenue Collections BUDGETED ESTIMATED RECOMMEND ED FY09-10 CHANGE FROM BUDGETED SOURCE (millions) FY08-09 FY08-09 FY08-09 Sales Franchise & Excise Gas Motor Vehicle Reg.51%) (8. Privilege Gross Receipts Other SUBTOTAL Other State Rev.620 609 263 307 311 1.08%) (.32%) (14.084 (5.019 1.8%) (25.337 $ 11.268 11.9%) (19.108 10.69%) .328 599 248 226 305 1.35%) 10 $ 10.82%) (2.301 610 253 230 310 1.66%) (8.307 $ 12. TOTAL $ $ 7.

Budget Breakdown Revenue collections continue to underperform at unprecedented levels 1600 (Millions) Projected Actual 1200 800 400 Ap ri l Au gu st O ct ob er De ce m be r Fe br ua ry 2007 Au gu st O ct ob er De ce m be r Fe br ua ry Ju ne 2009 11 .

Those cuts have been reduced to an average of 3. 12 .5%.Recovery Act The American Recovery and Reinvestment Act of 2009 will: – Speed economic recovery – Create and save jobs – Provide services to those affected by the recession State agencies planned for cuts averaging 14.76% prior to ARRA.

Recovery Act Impact of Recovery Act funds on FY09-10 Budget TennCare Human Services Higher Education K–12 Education $266M + $152 M Stabilization $ $ $ $ $ 550 484 185 418 M M M M Transportation * 666 M * TDOT funds are available in current fiscal year 13 .

8 8.2 8 7.8 FY07 FY08 FY09 Est.6 8. FY10 Est. FY11 Est. FY12 Est.4 8.2 9 8.4 9. 14 .General Fund Collections Actual and Estimated 9.

24 M 224.1 M 15 .86 M 30.Net Base Budget Cuts TennCare Correction Children’s Services Non-BEP Education Mental Health Environment & Conservation Revenue Health Higher Education Miscellaneous Total Reductions $ $ $ $ $ $ $ $ $ $ $ 101 M 43 M 15 M 12 M 5M 5M 5M 7M .

023 $281.023 $15.000 $280.000 $240.686 Reduction Addback Net Base (All figures in thousands) FY10 Base FY10 Net FY11 16.000 $281.Children’s Services $360.000 $320.686 $39.291 $39.023 $281.9M Net Reduction 16 .000 $200.4% or $54.

912 $140.000 FY10 Base FY10 Net FY11 14.000 $131.000 $17.8M Net Reduction 17 .896 Reduction Addback Net Base $131.000 $4.896 $17.76% or $22.699 $120.699 $131.Mental Health $160.699 (All figures in thousands) $100.

000.400.061.000 $1.090 $68.090 $185.8% or $181.202.202.Higher Education Net Base Federal State Reversion Base Reduction $1.626 $42.626 $68.000 $800.100.935 $1.000 $1.217 $185.000 FY09 Budgeted FY09 Revised $1.061.705 $1.200.061.217 FY10 FY11 FY12 (All figures in thousands) 14.000 $1.7M Net Reduction 18 .000 $1.705 $1.000 $900.935 $1.705 $58.000 $100.300.

600.000 $50.Basic Education Program Net Base Federal Improvement $3.800.923 $48.000 $3.500.000 $3.000 $3.000 $3.488.923 $3.440.592.000 $152.300.000 FY09 $3.000 $3.200.000 FY10 FY11 FY12 (All figures in thousands) 19 .923 $3.923 $50.000 $152.000 $3.400.000 $3.690.700.

928 B $ 1. 20 .6 B $ 3.Budget Breakdown State Dollars EDUCATION TOTAL Pre K-12 Education Higher Education FY 10 IMPROVEMENTS Pre K-12 Improvement Higher Education Improvement $ 5.663 B $ $ $ 156 M 75 M 81 M Pre K – 12 education funding remains protected in FY10. An additional $48 million is being provided for inflationary growth in BEP.

4 M 85. of Revenue Comptroller Legislature Other TRANSPORTATION.319 B $ 1.4 M 123.4 M $ $ $ $ $ 34.6 M 78.6 M $ 70.150 B $ 89.2 M 38.3 M $ 8. BUSINESS & ECD TOTAL Transportation Economic and Community Development Agriculture Tourism $ 360.8 M 21 .8 M $1.Budget Breakdown State Dollars GENERAL GOVERNMENT TOTAL Finance and Administration Dept.

7 M 17.980 B $ $ $ $ $ $ $ $ 1.Budget Breakdown State Dollars HEALTH AND SOCIAL SERVICES TOTAL TennCare Children’s Services Health Human Services Mental Health Cover Tennessee Mental Retardation Other $ 2.1 M 22 .0 M 80.976 B 318.8 M 63.2 M 178.3 M 173.9 M 172.

6 M $ 160.1 M $ 351. SAFETY AND CORRECTION TOTAL Correction Safety TBI Military Other RESOURCES AND REGULATION TOTAL Environment and Conservation Commerce and Insurance Labor and Workforce Development Financial Institutions Other $ 1.9 M 23 .146 B $ 653.7 M $ 36.7 M $ 11.6 M $ 336.2 M $ 53.Budget Breakdown State Dollars LAW.1 M $ 39.9 M $ 89.5 M $ 8.9 M $ 107.

3 M 31.7 M $ 157.6 M 2.5 M $ $ $ 99.5 M 26.5 M 29.7 M 24 .5 M 1.Capital Outlay Budget CAPITAL OUTLAY Bonds Cash Other PROJECTS ECD Correction Higher Education (Maintenance) Mental Retardation Safety $ $ $ $ $ 91.8 M 11.

678 M $ 9M 25 .Improvements State Dollars Fully fund BEP growth Fully fund Pre-K growth Academic assessments TSAC need-based scholarships Jobs package Soil conservation Correction release centers Prison expansion – Morgan Co. $ 48 M $ 490 K $ 9M $ 3M $ 56 M $ 2M $ .

Maintain Healthy Reserves 800 700 600 500 400 300 200 100 0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY 11 FY 12 750 686 750 574 593 543 275 178 178 178 217 325 Rainy Day Fund 26 .

47% smaller than previous year 7th common sense balanced budget 27 .Budget Recap Tennessee well positioned to weather current national economic downturn Education funding protected State budget 1.

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