The Tennessee Statehouse has approved a $52.8 billion spending plan for the upcoming fiscal year, which includes a substantial $1.95 billion tax break and refund for businesses. However, the budget does not provide much new tax relief for most Tennessee families. Lawmakers in the state are still divided on whether to advance a proposal to send students to private schools using public money. Republican Gov. Bill Lee has made universal school vouchers a top legislative priority, but the issue faces challenges, especially with rural lawmakers expressing hesitance about redirecting public funds from local schools.
The House and Senate versions of the budget differ in their approach to education reform. The House version includes changes to standardized testing, teacher evaluation requirements, health insurance coverage for educators, and the phasing out of low-performing school districts. Conversely, the Senate version includes testing requirements for students who receive vouchers and allows families to send their children to public schools outside their district. Democratic lawmakers have criticized the budget, stating that it fails to address the problems faced by most families. Some opponents were escorted out of the House gallery after disrupting the floor session.
While the budget includes some funding for child care, emergency medical services, behavioral health, and public hospitals, opponents have criticized the $400 million annual tax breaks and $1.5 billion in refunds for businesses. There is ongoing debate in the House and Senate about how to allocate these funds. Additionally, a law firm representing businesses raised concerns about the legality of Tennessee’s franchise tax and demanded refunds. The details of which businesses are involved remain undisclosed. Lawmakers are considering whether to significantly reduce the refund pot and make the names and amounts of companies receiving refunds public.
The main point of contention remains the expansion of school voucher programs in Tennessee. Gov. Lee has pushed for this expansion since 2019, but the proposal has faced challenges in the legislative process. The existing program, known as education savings accounts, currently applies only to certain districts in Democratic strongholds. There are discussions about potentially expanding the program to include more districts, but lawmakers have yet to reach a consensus. The issue of school vouchers has been a divisive one in the state, with some Republican lawmakers expressing concerns about the impact on local schools and education funding.
Overall, the budget reflects the priorities of the state government, with a focus on education, healthcare, and social services. However, the decision to allocate a significant amount of public funds for tax breaks and refunds for businesses has drawn criticism from some lawmakers and advocates. The upcoming weekend offers a final opportunity for negotiation and resolution on key budget issues before the annual session concludes. It remains to be seen whether lawmakers will be able to reach a compromise on controversial issues such as school vouchers and tax breaks.
