Stay calm, Tennessee: revenue flat but we’ll overcome the setback

In an article by Adam Friedman, Tennessee financial officials are urging calm over the state’s flattening revenue. With a decrease in tax revenue over the past few months, concerns have been raised about the state’s budget projections. However, Tennessee Department of Finance and Administration commissioner, Jim Bryson, assured lawmakers that the state is prepared to weather the challenges ahead. He stated that although tax revenue has fallen short of estimates, sales tax revenue has remained strong. The state’s funding board estimates that revenue will come up about $718.8 million short during the 2023-24 fiscal year. Despite this, Bryson mentioned that the state has some breathing room as nearly $2.6 billion from the 2023-24 budget has been dedicated to one-time expenses that won’t appear on next year’s balance sheet. However, a portion of this extra money is likely to be spent on Governor Bill Lee’s school voucher plan and a new franchise and excise tax collections method. Tennessee officials are pushing for this tax change as a “legislative fix” based on a U.S. Supreme Court ruling. They believe that the current tax collection method could violate federal law. Overall, officials are urging calm and assuring the public that they are prepared for the financial challenges ahead.