April 13, 2021

• Prudent and cautious approach

• Return to pre-pandemic priorities

• Invest in what works

• Deliver critical services while not growing government

• Long-term strategic investments

Revenues & Expenditures Recurring Non-Recurring

Available Additional Revenues $903,120,000 $1,671,274,600

Reductions & Reallocations $185,790,500 $0

Cost Increases & Base Adjustments

($812,828,500) ($1,945,390,800)

Balance $276,082,000 ($274,116,200)

0.0

5.0

10.0

15.0

20.0

25.0

Motor vehicles and

parts

Furnishings and

durable household

equipment

Other durable goods Durable goods Recreational goods

and vehicles

William F. Fox • http://cber.haslam.utk.edu

Available Funding RecurringNon-

Recurring

Agency Reversion on June 30, 2021 $398,221,700

Reversion of COVID-19 Response Funding

$100,000,000

Non-Tax Revenues $35,000,000 $47,000,000

Balance $35,000,000 $545,221,700

Highlights

Mental Health Trust Fund

$250,000,000

Summer Education Transportation

$18,500,000

Governor’s Early Literacy Foundation

$2,055,300

Highlights

Elimination of the TCAT Waitlist

$79,380,000

Transfer to Tennessee Promise

$25,000,000

Additional Agriculture Extension Agents

$4,190,000

Highlights

Radio Replacement $17,672,000

Dynamic System Resiliency

$18,000,000

Homeland Security Agents $680,800

Firearm Safety Program $500,000

Highlights

ECD Projects $55,000,000

Historic Preservation Grants

$5,000,000

Small Business Innovation Research

$3,000,000

Recurring Aviation Funding

$3,000,000

Proposals

Grocery Two-Week Sales Tax Holiday

$25,000,000

Restaurants and All Prepared Food Two-Week Sales Tax Holiday

$75,000,000

Reduce Professional Privilege Tax 25 Percent

$16,912,300

Local Recovery and Rebuilding

– $200 million investment

– Goal to facilitate economic stimulus

– Award no later than Jan 1 to permit review of federal funds and adjust guidelines

Broadband

– $200 million investment

– Goal to serve all communities

– Federal funds will have unknown strings attached

– Ability to reimburse ourselves

$17.8 $19.2 $21.1

$14.2$19.3 $15.5

$6.1

$6.3$6.0

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

FY20Actual

FY21Budgeted

FY22 Recommended

Bill

ion

s

Other

Federal

State

$44.9$42.6

$38.1

• Prudent and cautious approach

• Return to pre-pandemic priorities

• Invest in what works

• Deliver critical services while not growing government

• Long-term strategic investments