Historical Tennessee budget and finance information

in  Tennessee

* Fiscal
* Budgets
* Tennessee state budget and finances
* Tax policy in Tennessee
* Finance
* Financial regulation in Tennessee
* Pensions
* Public pensions in Tennessee
* Pension health in Tennessee
* Civil liberties
* Affirmative action in Tennessee
* Campaign finance requirements in Tennessee
* Campaign finance requirements for Tennessee ballot measures
* Nonprofit regulation in Tennessee
* Education
* Charter schools in Tennessee
* Higher education in Tennessee
* Public education in Tennessee
* School choice in Tennessee
* Elections
* Ballot access
* Ballot access requirements for political candidates in Tennessee
* Ballot access requirements for political parties in Tennessee
* Political parties in Tennessee
* Ballot access requirements for presidential candidates in Tennessee
* Redistricting in Tennessee
* Voting in Tennessee
* Energy and Environment
* Energy policy in Tennessee
* Fracking in Tennessee
* Oil and gas extraction on federal land in Tennessee
* Endangered species in Tennessee
* Environmental policy in Tennessee
* Healthcare
* Healthcare policy in Tennessee
* Medicaid spending in Tennessee
* Effect of the Affordable Care Act in Tennessee
* Immigration
* Immigration in Tennessee

* * *

This article does not contain the most recently published data on this subject. If you would like to help our coverage grow, consider donating to Ballotpedia.

* * *

The historical Tennessee budget and finance information below applies to years prior to the most current fiscal year. With the exception of the tab labeled "Prior fiscal year budgets," the tabs below display information from several different fiscal years as it was presented on Ballotpedia in prior calendar years. For more current information regarding Tennessee's budget and finances, click here.

## Contents

* 1 As published 2016
* 1.1 Definitions
* 1.2 Revenues
* 1.2.1 2014 revenues
* 1.2.2 Federal aid to the state budget
* 1.3 Spending
* 1.3.1 Estimated 2015 expenditures
* 1.3.2 Spending by function
* 1.3.3 Spending trends
* 1.4 Fiscal year budgets
* 1.4.1 Fiscal year 2016
* 1.5 State debt
* 1.5.1 Taxpayer burden
* 1.5.2 Public pensions
* 1.5.3 Credit ratings
* 1.6 Economic indicators
* 1.7 Budget process
* 1.7.1 Agencies, offices, and committees
* 1.7.2 Transparency
* 2 As published 2015
* 2.1 Spending
* 2.1.1 Definitions
* 2.1.2 2014 expenditures
* 2.1.3 Spending by function
* 2.1.4 Spending trends
* 2.2 Revenues
* 2.2.1 2013 revenues
* 2.3 State debt
* 2.3.1 Public pensions
* 2.3.2 Credit ratings
* 2.4 Federal aid to the state budget
* 2.4.1 Stimulus
* 2.5 Budget process
* 2.5.1 Agencies, offices, and committees
* 2.6 Studies and reports
* 2.6.1 U.S. PIRG "Following the Money" report
* 3 As published 2014
* 3.1 Spending
* 3.1.1 Definitions
* 3.1.2 2013
* 3.2 Spending by function
* 3.2.1 2012
* 3.3 Spending trends
* 3.4 Revenues
* 3.4.1 2013 revenues
* 3.4.2 Revenue trends
* 3.5 Historical spending
* 3.6 Budget transparency
* 3.6.1 Multi-measure budget transparency profile
* 4 Prior fiscal year budgets
* 4.1 Fiscal year 2016
* 4.2 Fiscal year 2015
* 4.3 Fiscal year 2014
* 4.4 Fiscal year 2013
* 4.5 Fiscal year 2012
* 4.6 Fiscal year 2011
* 4.7 Fiscal year 2010
* 4.8 See also
* 4.9 Footnotes

# As published 2016[edit]

Tennessee budget and finances

General information
Budget calendar:
Annual
Fiscal year:
2017
State credit rating:
AA+ (as of 2014)
Current governor:
Bill Haslam
Financial figures
Total spending (state and federal funds):
$32.0 billion (estimated for 2015)
Per capita spending:
$4,842.51 (estimated for 2015)
Total state tax collections:
$11.8 billion (2014)
Per capita tax collections:
$1,803.10 (2014)
State debt:
$41 billion (as of 2014)
Per capita state debt:
$6,358 (as of 2014)

* * *

* * *

State budget and finance pages • Total state expenditures • State debt • Tax policy in Tennessee

In Tennessee, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.

HIGHLIGHTS

* Between fiscal years 2014 and 2015, total government spending in Tennessee increased by approximately $1.4 billion—from $30.5 billion in fiscal year 2014 to an estimated $32.0 billion in 2015. This represents a 4.5-percent increase.[1][2][3]

* In Tennessee in fiscal year 2014, 74.2 percent of total tax revenues came from sales and gross receipts.

* Education accounted for 32.5 percent of state expenditures in fiscal year 2015, while 30.6 percent went to Medicaid.

The Tennessee state budget and financial data presented here come from different years because the states and the federal government report and publish the information at different times.

### Definitions[edit]

The following terms are used to describe a state's finances:

* Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
* Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
* State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
* The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
* State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."[4]
* Federal funds are "funds received directly from the federal government."[4]
* Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

Note: In comparing dollar amounts across the states, it is important to note that the cost of living can from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis.

## Revenues[edit]

### 2014 revenues[edit]

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2014 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2013 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2013 population" and "Per capita collections" have not been abbreviated.[5]

Compared to neighboring states, Tennessee had the lowest state tax collections per capita, at $1,803.

State tax collections by source ($ in thousands), 2014

State  | Property taxes  | Sales and gross receipts  | Licenses  | Income taxes  | Other taxes  | Total  | 2013 population  | Per capita collections
Tennessee | N/A | $8,758,085 | $1,335,392 | $1,416,190 | $296,662 | $11,806,329 | 6,547,779 | $1,803
Alabama | $329,598 | $4,812,674 | $386,378 | $3,612,991 | $152,113 | $9,293,754 | 4,846,411 | $1,918
Arkansas | $1,077,377 | $4,324,157 | $368,622 | $3,000,653 | $165,972 | $8,936,781 | 2,966,835 | $3,012
Kentucky | $562,370 | $5,354,124 | $472,225 | $4,423,722 | $291,104 | $11,103,545 | 4,412,617 | $2,516
Mississippi | $25,103 | $4,704,955 | $559,218 | $2,193,646 | $91,593 | $7,574,515 | 2,993,443 | $2,530
United States | $14,232,835 | $411,414,175 | $51,120,024 | $357,104,785 | $31,880,270 | $865,752,089 | 318,907,401 | $2,715
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

Tennessee tax collections by source in 2014.
Source: U.S. Census Bureau

The table below lists 2014 tax collections by source as percentages of total collections. About 74.2 percent of Tennessee's total state tax collections came from sales taxes and gross receipts.[5]

State tax collections by source (as percentages), 2014

State  | Property taxes  | Sales and gross receipts  | Licenses  | Income taxes  | Other taxes
Tennessee | N/A | 74.2% | 11.3% | 12.0% | 2.5%
Alabama | 3.5% | 51.8% | 4.2% | 38.9% | 1.6%
Arkansas | 12.1% | 48.4% | 4.1% | 33.6% | 1.9%
Kentucky | 5.1% | 48.2% | 4.3% | 39.8% | 2.6%
Mississippi | 0.3% | 62.1% | 7.4% | 29.0% | 1.2%
Source: U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016

### Federal aid to the state budget[edit]

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2013 federal aid to the states accounted for roughly 30 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.5 billion in federal aid in 2013, accounting for about 43 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2013, or just 19 percent of the state's general revenues, the lowest percentage in the nation.[6]

The table below notes what share of Tennessee’s general revenues came from the federal government in 2013. That year, Tennessee received approximately $10.8 billion in federal aid, 39.5 percent of the state's general revenues. Taking into consideration the state's 2013 population, this came out to about $1,666 in federal aid per capita. Figures from surrounding states are provided for additional context.[7]

Federal aid to state budgets, 2013

State  | Total federal aid ($ in thousands)  | Federal aid as a % of general revenues  | Ranking (by % of general revenues)  | Est. 2013 population  | Aid per capita
Tennessee | $10,819,977 | 39.5% | 3 | 6,495,978 | $1,666
Alabama | $8,226,967 | 36.2% | 9 | 4,833,722 | $1,702
Arkansas | $5,689,390 | 32.9% | 22 | 2,959,373 | $1,922
Kentucky | $8,047,093 | 35.1% | 12 | 4,395,295 | $1,831
Mississippi | $7,509,589 | 42.9% | 1 | 2,991,207 | $2,511
Sources: United States Census Bureau, "State Government Finances: 2013," accessed April 4, 2016
United States Census Bureau, "State totals: Vintage 2013," accessed April 8, 2016
Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2013.

## Spending[edit]

### Estimated 2015 expenditures[edit]

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2015 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[2]

Tennessee's total estimated government spending in fiscal year 2015 was $32.0 billion, which was the highest amount when compared to surrounding states.

Total estimated state spending, FY 2015 ($ in millions)

State  | State funds  | Federal funds  | Total spending  | Population  | Per capita spending
Tennessee | $18,806 | $13,156 | $31,962 | 6,600,299 | $4,842.51
Alabama | $14,990 | $9,556 | $24,546 | 4,858,979 | $5,051.68
Arkansas | $16,502 | $7,131 | $23,633 | 2,978,204 | $7,935.32
Kentucky | $19,512 | $11,830 | $31,342 | 4,425,092 | $7,082.79
Mississippi | $11,481 | $8,953 | $20,434 | 2,992,333 | $6,828.79
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.[8]
Source: National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016

### Spending by function[edit]

Breakdown of spending by function in FY 2014.
Source: National Association of State Budget Officers

See also: State spending by function as a percent of total expenditures

State spending in Tennessee can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2014 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[2]

In fiscal year 2014, Medicaid accounted for 30.6 percent of Tennessee's total expenditures.

State spending by function as a percent of total expenditures, FY 2014

State  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
Tennessee | 18.3% | 14.2% | 0.3% | 30.6% | 3.1% | 5.7% | 27.8%
Alabama | 20.5% | 20.6% | 0.2% | 23.3% | 2.4% | 6.4% | 26.6%
Arkansas | 15.1% | 15.6% | 2.3% | 22.1% | 2.1% | 6.1% | 36.8%
Kentucky | 17.4% | 23.9% | 0.7% | 24.0% | 2.1% | 9.5% | 22.4%
Mississippi | 16.3% | 18.9% | 5.5% | 24.6% | 2.0% | 7.1% | 25.5%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

### Spending trends[edit]

Between 2010 and 2014, the share of the Tennessee state budget spent on Medicaid increased from 28.8 percent in 2010 to 30.6 percent in 2014. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[2][9][10]

Spending by function from 2010 to 2014 (as percentages)

Year  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
2014 | 18.3% | 14.2% | 0.3% | 30.6% | 3.1% | 5.7% | 27.8%
2013 | 17.8% | 13.9% | 0.4% | 30.8% | 2.8% | 6.1% | 28.2%
2012 | 17.7% | 12.8% | 0.4% | 30.7% | 2.7% | 6.4% | 29.3%
2011 | 17.3% | 13.3% | 0.4% | 29.8% | 2.6% | 6.3% | 30.4%
2010 | 17.7% | 13.1% | 0.5% | 28.8% | 2.3% | 6.4% | 31.3%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[2]

## Fiscal year budgets[edit]

See also: Historical Tennessee budget and finance information

### Fiscal year 2016[edit]

See budget bill: HB 1374 and SB 1399

Governor Bill Haslam announced his fiscal year 2016 budget proposal on February 9, 2015. Under this proposal, total state spending would have equaled about $33.3 billion, including $29.4 billion in general fund spending. The largest portions of general fund spending would have gone to education (47 percent), health and social services (34 percent), and law, safety, and corrections (11 percent).[11]

Governor Haslam signed the official budget into law on May 18, 2015. The final budget totaled $33.8 billion in total spending and invested heavily into education and economic development. The budget also mandated property tax relief for the elderly and veterans, as well as teacher pay increases throughout the state. The budget also set aside $120 million for a new museum, but did not include the governor's healthcare expansion plan.[11]

## State debt[edit]

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Tennessee had a state debt of approximately $41 billion. Its state debt per capita was $6,358. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.[12][13]

Total 2012 state debt

State  | Total state debt  | State debt per capita  | Per capita debt ranking
Tennessee | $41,049,738,000 | $6,358 | 50
Alabama | $68,343,597,000 | $14,173 | 26
Arkansas | $37,704,936,000 | $12,785 | 33
Kentucky | $86,245,730,000 | $19,689 | 11
Mississippi | $54,686,815,000 | $18,321 | 14
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

### Taxpayer burden[edit]

TIA Methodology: To figure a state’s taxpayer burden or surplus, TIA looked at a state’s total reported assets minus capital assets and assets restricted by law (buildings, roads, land, etc.) to calculate “available assets,” which were then compared to the amount of money the state owes in bills, including retirement obligations such as pension plans and healthcare benefits for retirees.

If the difference between available assets and total bills was positive, TIA called this a surplus; if it was negative, this was a burden. This amount was then divided by the number of individual tax returns with a positive tax liability, thus expressing the total state surplus or burden on a per-taxpayer basis.

According to a report released in September 2015 by the nonprofit Truth in Accounting (TIA), Tennessee ranked 9th best in the country in “taxpayer surplus.” Rather than using per capita state debt, TIA ranked states based on what it called a “taxpayer burden,” a term that reflects “the amount each taxpayer would have to send to their state’s treasury in order for the state to be debt-free.” On the other hand, states that had sufficient resources to pay their bills were said to have a “taxpayer surplus,” which represents the amount that each taxpayer would receive if the state were to disburse its excess funds.

Based on analysis of Tennessee’s Comprehensive Annual Financial Report from June 30, 2014 and actuarial reports for the state’s retirement plans, TIA concluded that $3.3 billion in promised retirement benefits were unfunded, but only $763.6 million of these liabilities were reported on Tennessee’s balance sheet. With all of the unfunded retirement benefits included in the total debt, the state had a surplus of $2.4 billion, or a taxpayer surplus of $1,300.[14]

### Public pensions[edit]

See also: Tennessee public pensions and Tennessee public employee salaries

Between fiscal years 2008 and 2011, the funded ratio of Tennessee's state-administered pension plans decreased from 96.2 percent to 92.1 percent. The state paid 100 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $3.4 billion.[15][16]

### Credit ratings[edit]

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[17][18]

The table below lists the Standard and Poor's credit ratings for Tennessee and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[19]

State credit ratings, 2004 to 2014

State  | 2014  | 2013  | 2012  | 2011  | 2010  | 2009  | 2008  | 2007  | 2006  | 2005  | 2004
Tennessee | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA | AA
Alabama | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA
Arkansas | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA
Kentucky | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA-
Mississippi | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

## Economic indicators[edit]

See also: Economic indicators by state

Tennessee's GDP increased by 1.7 percent in 2014. Click the image to view a larger version.

Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[20][21][22]

Compared to neighboring states, in 2013 Tennessee had the largest gross state product at $287.6 billion. Most Tennessee residents earned incomes between 200 and 399 percent of the federal poverty level, with a median annual household income of $42,785. The unemployment rate in Tennessee was above the national rate in September 2014, 7.3 percent.[23][24][25][26]

Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.

Various economic indicators by state

State  | Distribution of population by FPL* (2013)  | Median annual income (2011-2013)  | Unemployment rate  | Total GSP (2013)†
Under 100%  | 100-199%  | 200-399%  | 400%+  | Sept. 2013  | Sept. 2014
Tennessee | 18% | 20% | 34% | 28% | $42,785 | 8.2% | 7.3% | $287,633
Alabama | 17% | 22% | 33% | 28% | $43,330 | 6.4% | 6.6% | $193,566
Kentucky | 20% | 22% | 30% | 28% | $42,260 | 8.3% | 6.7% | $183,373
Mississippi | 23% | 20% | 29% | 28% | $40,338 | 8.4% | 7.7% | $105,163
United States | 15% | 19% | 30% | 36% | $52,047 | 7.2% | 5.9% | $16,701,415
* Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government."
† Median annual household income, 2011-2013.
‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state."
Source: The Henry J. Kaiser Family Foundation, "State Health Facts"

## Budget process[edit]

State documents and agenciesBelow are links to official Tennessee budget and financial documents. The first is the state's Comprehensive Annual Financial Report (CAFR). A CAFR is a detailed presentation of a government entity's financial condition. This includes fiscal activities and balances for a fiscal year. The second link is to the state's relevant budget agency or office.

* Tennessee CAFR
* Tennessee budget agency

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[27]

1. Budget instructions are sent to state agencies in August of the year preceding the start of the new fiscal year.
2. State agencies submit their budget requests to the governor by October 1.
3. The governor submits his or her proposed budget to the state legislature by February 1. The deadline for new governors is March 1.
4. The legislature typically adopts a budget between April and June. A simple majority is required to pass a budget. The fiscal year begins July 1.

Tennessee is one of 44 states in which the governor has line item veto authority.[27][28]

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to adopt a balanced budget.[27]

### Agencies, offices, and committees[edit]

The following standing committees in the Tennessee State Legislature deal with budget and finance matters:

1. Finance, Ways and Means Committee, Tennessee State Senate
2. Finance, Ways, and Means Committee, Tennessee House of Representatives
3. Fiscal Review Committee, Tennessee State Legislature

### Transparency[edit]

See also: "Following the Money" report, 2015

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in March 2015. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending.[29] According to the report, Tennessee received a grade of B- and a numerical score of 82, indicating that Tennessee was "Advancing" in terms of transparency regarding state spending.[29]

# As published 2015[edit]

* * *

* * *

State finances in the U.S.
State tax policy in the U.S.
Pension Policy

* * *

* * *

State finances on the ballot
Taxes on the ballot
Glossary of state budget terms
Public pensions

The information on this tab contains:

* Spending (fiscal years 2013 and 2014)
* Revenues (fiscal year 2013)
* State debt (fiscal year 2012)
* Federal aid to the state budget (fiscal year 2012)
* Budget process

Between fiscal years 2013 and 2014, total government spending in Tennessee increased by approximately $1.9 billion, from $30.2 billion in fiscal year 2013 to an estimated $32.1 billion in 2014. This represented a 6.2 percent increase. The cumulative rate of inflation during the same period was 1.58 percent, calculated using the Consumer Price Indices for January 2013 and January 2014. As of 2014, financial services firm Standard and Poor's had assigned Tennessee a credit rating of AA+.[30][31][32]

HIGHLIGHTS

* In 2013, Tennessee's state tax collections per capita equaled $1,903, the seventh-lowest in the nation.

## Spending[edit]

### Definitions[edit]

The following terms are used to describe a state's finances:

* Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
* Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
* State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
* The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
* State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."[4]
* Federal funds are "funds received directly from the federal government."[4]
* Total spending is calculated by adding together the totals for state and federal funds used for expenditures.

### 2014 expenditures[edit]

See also: Total state expenditures

The table below breaks down estimated spending totals for fiscal year 2014 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[32]

When compared to neighboring states, Tennessee had the highest total estimated spending in fiscal year 2014 at $32.1 billion.

Total estimated state spending, FY 2014 ($ in millions)

State  | State funds  | Federal funds  | Total spending  | Population  | Per capita spending
Tennessee | $18,832 | $13,231 | $32,063 | 6,549,352 | $4,895.60
Alabama | $14,605 | $9,288 | $23,893 | 4,849,377 | $4,927.02
Arkansas | $16,077 | $6,511 | $22,588 | 2,966,369 | $7,614.70
Kentucky | $19,221 | $9,614 | $28,835 | 4,413,457 | $6,533.43
Mississippi | $10,479 | $8,197 | $18,676 | 2,994,079 | $6,237.64
Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates.[33]
Source: National Association of State Budget Officers

### Spending by function[edit]

See also: State spending by function as a percent of total expenditures

Breakdown of spending by function in FY 2013
Source: National Association of State Budget Officers

State spending in Tennessee can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2013 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[32]

In fiscal year 2013, Medicaid accounted for nearly 31 percent of total state spending in Tennessee.

State spending by function as a percent of total expenditures, FY 2013

State  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Trans-
portation  | Other
Tennessee | 17.8% | 13.9% | 0.4% | 30.8% | 2.8% | 6.1% | 28.2%
Alabama | 20.4% | 19.9% | 0.2% | 22.8% | 2.4% | 6.5% | 27.7%
Arkansas | 15.6% | 15.4% | 2.0% | 21.0% | 2.1% | 5.8% | 38.0%
Kentucky | 19.6% | 26.7% | 0.9% | 21.9% | 2.4% | 9.8% | 18.8%
Mississippi | 16.4% | 16.1% | 5.9% | 26.1% | 2.0% | 6.7% | 26.7%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[32]

### Spending trends[edit]

Between 2009 and 2013, the share of the Tennessee state budget spent on Medicaid increased from 25.4 percent to 30.8 percent. See the table below for further details (figures are rendered as percentages, indicating the share of the total budget spent per category).[32][9][10][34][35]

Spending by function from 2009 to 2013 (as percentages)

Year  | K-12 education  | Higher education  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
2013 | 17.8% | 13.9% | 0.4% | 30.8% | 2.8% | 6.1% | 28.2%
2012 | 17.7% | 12.8% | 0.4% | 30.7% | 2.7% | 6.4% | 29.3%
2011 | 17.3% | 13.3% | 0.4% | 29.8% | 2.6% | 6.3% | 30.4%
2010 | 17.7% | 13.1% | 0.5% | 28.8% | 2.3% | 6.4% | 31.3%
2009 | 17.0% | 12.8% | 0.4% | 25.4% | 2.7% | 8.9% | 32.8%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[32]

## Revenues[edit]

### 2013 revenues[edit]

See also: State government tax collections by source

The table below breaks down state government tax collections by source in 2013 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "Population" and "Per capita revenue" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "Population" and "Per capita revenue" have not been abbreviated.[5]

Sales taxes and gross receipts accounted for $9.1 billion of Tennessee's total state tax collections in fiscal year 2013.

State tax collections by source ($ in thousands)

State  | Property taxes  | Sales and gross receipts  | Licenses  | Individual income taxes  | Corporation net income taxes  | Other taxes  | Total  | 2013 population  | Per capita collections
Tennessee | N/A | $9,128,175 | $1,421,174 | $262,842 | $1,256,173 | $298,527 | $12,366,891 | 6,497,269 | $1,903.40
Alabama | $322,300 | $4,707,375 | $490,475 | $3,202,520 | $382,202 | $161,597 | $9,266,469 | 4,833,996 | $1,916.94
Arkansas | $1,022,066 | $4,019,203 | $356,920 | $2,649,577 | $402,874 | $135,767 | $8,586,407 | 2,958,765 | $2,902.02
Kentucky | $558,377 | $5,110,456 | $462,534 | $3,722,964 | $646,875 | $314,556 | $10,815,762 | 4,399,583 | $2,458.36
Mississippi | $24,122 | $4,571,294 | $530,010 | $1,755,424 | $415,980 | $105,895 | $7,402,725 | 2,992,206 | $2,474.00
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

Tennessee tax collections by source in 2013
Source: Tax Policy Center

The table below lists 2013 tax collections by source as percentages of total collections. Sales taxes and gross receipts accounted for approximately 74 percent of Tennessee's total state tax collections in fiscal year 2013.[5]

State tax collections by source (as percentages)

State  | Property taxes  | Sales and gross receipts  | Licenses  | Individual income taxes  | Corporation net income taxes  | Other taxes
Tennessee | N/A | 73.81% | 11.49% | 2.13% | 10.16% | 2.41%
Alabama | 3.48% | 50.80% | 5.29% | 34.56% | 4.12% | 1.74%
Arkansas | 11.90% | 46.81% | 4.16% | 30.86% | 4.69% | 1.58%
Kentucky | 5.16% | 47.25% | 4.28% | 34.42% | 5.98% | 2.91%
Mississippi | 0.33% | 61.75% | 7.16% | 23.71% | 5.62% | 1.43%
Source: Tax Policy Center, "State Tax Collection Sources 2000-2013," June 20, 2014

## State debt[edit]

See also: State debt

According to a January 2014 report by the nonprofit organization State Budget Solutions, Tennessee had a state debt of approximately $41 billion. Its state debt per capita was $6,358. In this report for fiscal year 2012, state debt was calculated based on four components: "market-valued unfunded public pension liabilities, outstanding government debt, unfunded other post employment benefit (OPEB) liabilities, and outstanding unemployment trust fund loans." The report revealed that altogether state governments faced a combined $5.1 trillion in debt, which amounted to $16,178 per capita in the nation.[36][37]

Total 2012 state debt

State  | Total state debt  | State debt per capita  | Per capita debt ranking
Tennessee | $41,049,738,000 | $6,358 | 50
Alabama | $68,343,597,000 | $14,173 | 26
Arkansas | $37,704,936,000 | $12,785 | 33
Kentucky | $86,245,730,000 | $19,689 | 11
Mississippi | $54,686,815,000 | $18,321 | 14
Sources: State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014

### Public pensions[edit]

See also: Tennessee public pensions and Tennessee public employee salaries

Between fiscal years 2008 and 2011, the funded ratio of Tennessee's state-administered pension plans decreased from 96.2 percent to 92.1 percent. The state paid 100 percent of its annual required contribution, and for fiscal year 2012 the pension system's unfunded accrued liability totaled $3.4 billion.[15][38]

### Credit ratings[edit]

See also: State credit ratings

Credit rating agencies, such as Standard and Poor's, assign grades to states that take into account a state's ability to pay debts and the general health of the state's economy. Generally speaking, a higher credit rating indicates lower interest costs on the general obligation bonds states sometimes sell to investors in order to finance large-scale undertakings (e.g., road construction and other public works projects). This in turn results in lower interest costs, thereby lowering the cost to taxpayers.[17][39]

The table below lists the Standard and Poor's credit ratings for Tennessee and surrounding states from 2004 to 2014. Standard and Poor's grades range from AAA, the highest available, to BBB, the lowest.[40]

State credit ratings, 2004 to 2014

State  | 2014  | 2013  | 2012  | 2011  | 2010  | 2009  | 2008  | 2007  | 2006  | 2005  | 2004
Tennessee | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA+ | AA | AA
Alabama | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA
Arkansas | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA
Kentucky | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA- | AA-
Mississippi | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA | AA
Source: Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014

## Federal aid to the state budget[edit]

See also: Federal aid to state budgets

State governments receive aid from the federal government to fund a variety of joint programs, such as Medicaid. Federal aid varies from state to state. For example, Mississippi received approximately $7.7 billion in federal aid in 2012, which accounted for more than 45 percent of the state's general revenues. By contrast, Alaska received roughly $2.9 billion in federal aid in 2012, just under 20 percent of the state's general revenues.[7]

The table below notes what share of Tennessee’s general revenues came from the federal government in 2012. That year, Tennessee received approximately $11.2 billion in federal aid, almost 41 percent of the state's total general revenues. Figures from surrounding states are provided for additional context.[7]

Federal aid to state budgets, 2012

State  | Total federal aid ($ in thousands)  | Federal aid as a % of general revenue  | Ranking
Tennessee | $11,198,575 | 40.97% | 3
Alabama | $8,112,509 | 36.50% | 9
Arkansas | $5,900,988 | 34.46% | 21
Kentucky | $8,056,691 | 35.69% | 14
Mississippi | $7,725,294 | 45.35% | 1
Source: United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014

### Stimulus[edit]

Tennessee received $5.33 billion in federal stimulus funding between February 2009 and June 2013.[41]

## Budget process[edit]

The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[27]

1. Budget instructions are sent to state agencies in August of the year preceding the start of the new fiscal year.
2. State agencies submit their budget requests to the governor by October 1.
3. The governor submits his or her proposed budget to the state legislature by February 1. The deadline for new governors is March 1.
4. The legislature typically adopts a budget between April and June. A simple majority is required to pass a budget. The fiscal year begins July 1.

Tennessee is one of 44 states in which the governor has line item veto authority.[27][42]

The governor is constitutionally required to submit a balanced budget proposal. Likewise, the legislature is required to adopt a balanced budget.[27]

### Agencies, offices, and committees[edit]

The following standing committees in the Tennessee State Legislature deal with budget and finance matters:

1. Finance, Ways and Means Committee, Tennessee State Senate
2. Finance, Ways, and Means Committee, Tennessee House of Representatives
3. Fiscal Review Committee, Tennessee State Legislature

## Studies and reports[edit]

### U.S. PIRG "Following the Money" report[edit]

See also: "Following the Money" report, 2014

The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2014. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending.[43] According to the report, Tennessee received a grade of B and a numerical score of 83, indicating that Tennessee was an "advancing" state in terms of transparency regarding state spending.[43]

# As published 2014[edit]

The information on this tab contains:

* Spending (fiscal year 2013)
* Spending by function (fiscal year 2012)
* Spending trends (fiscal years 2008 to 2012)
* Revenues (fiscal year 2013)
* Historical spending (fiscal years 2009 to 2012)
* Budget transparency

Between fiscal year 2009 and fiscal year 2013, Tennessee's total expenditures increased by approximately $2.381 billion, from $29.072 billion in 2009 to $31.453 billion in 2013. This represented an 8.19 percent increase, below the cumulative rate of inflation during the same period (9.06 percent, calculated using the Consumer Price Indices for January 2009 and January 2013).[44][45]

## Spending[edit]

### Definitions[edit]

Although each state executes its budget process differently, the National Association of State Budget Officers (NASBO) breaks down state expenditures into four general categories. This allows for comparisons among the 50 states. NASBO's categories are as follows:[46]

* General fund: "The predominant fund for financing a state’s operations. Revenues are received from broad-based state taxes. However, there are differences in how specific functions are financed from state to state."[46]
* Other funds: "Expenditures from revenue sources that are restricted by law for particular governmental functions or activities. For example, a gasoline tax dedicated to a highway trust fund would appear in the 'Other funds' column. For Medicaid, other state funds include provider taxes, fees, donations, assessments, and local funds."[46]
* Federal funds: "Funds received directly from the federal government."[46]
* Bonds: "Expenditures from the sale of bonds, generally for capital projects."[46]

### 2013[edit]

Breakdown of expenditures in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down expenditures for fiscal year 2013 (comparable figures from surrounding states are provided to give additional context).[46] Figures for all columns except "Per capita expenditures" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita expenditures" have not been abbreviated.

Total state expenditures, FY 2013 ($ in millions)[46]

State  | General fund  | Federal funds  | Other funds  | Bonds  | Total  | Per capita expenditures
Tennessee | $12,622 | $13,055 | $5,394 | $382 | $31,453 | $4,841.92
Alabama | $6,897 | $9,541 | $7,490 | $189 | $24,117 | $4,989.32
Arkansas | $4,746 | $6,189 | $10,447 | $203 | $21,585 | $7,293.77
Kentucky | $9,426 | $8,001 | $8,246 | $0 | $25,673 | $5,841.02
Mississippi | $4,699 | $8,274 | $5,660 | $784 | $19,417 | $6,491.36
Per-capita figures are calculated by taking the state's total expenditures and dividing by the number of state residents according to United States Census estimates.[47]
Source: National Association of State Budget Officers

## Spending by function[edit]

### 2012[edit]

Breakdown of expenditures by function in FY 2012
Source: National Association of State Budget Officers

State expenditures in Tennessee can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2012 data is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures by function, FY 2012 (as percentages)[46]

State  | Elementary and secondary ed.  | Higher ed.  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
Tennessee | 17.7% | 12.8% | 0.4% | 30.7% | 2.7% | 6.4% | 29.3%
Alabama | 20.9% | 20.1% | 0.2% | 23.3% | 2.5% | 6.1% | 27.0%
Arkansas | 16.3% | 16.2% | 2.1% | 21.4% | 2.2% | 5.8% | 36.0%
Kentucky | 19.8% | 25.7% | 0.9% | 22.5% | 2.4% | 8.9% | 19.8%
Mississippi | 16.9% | 16.8% | 5.8% | 23.4% | 1.8% | 7.5% | 27.7%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[46]

## Spending trends[edit]

From 2008 to 2012, the share of the state budget allotted for higher education spending fell by 1.5 percentage points, or 10.5 percent. During the same period, Medicaid spending rose by more than two percentage points, or 7.7 percent, as a share of the budget. The table below details changes in expenditures from 2008 to 2012.[46][9][10][34][35] Figures are rendered as percentages, indicating the share of the total budget spent per category.

Expenditures from 2008 to 2012 (as percents)

Year  | Elementary and secondary ed.  | Higher ed.  | Public assistance  | Medicaid  | Corrections  | Transportation  | Other
2012 | 17.7% | 12.8% | 0.4% | 30.7% | 2.7% | 6.4% | 29.3%
2011 | 17.3% | 13.3% | 0.4% | 29.8% | 2.6% | 6.3% | 30.4%
2010 | 17.7% | 13.1% | 0.5% | 28.8% | 2.3% | 6.4% | 31.3%
2009 | 17.0% | 12.8% | 0.4% | 25.4% | 2.7% | 8.9% | 32.8%
2008 | 17.7% | 14.3% | 0.4% | 28.5% | 2.6% | 6.6% | 29.8%
Change in % | 0.00% | -1.50% | 0.00% | 2.20% | 0.10% | -0.20%  | -0.50%
Source: National Association of State Budget Officers
Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[46]

## Revenues[edit]

### 2013 revenues[edit]

Breakdown of general fund revenue sources in FY 2013.
Source: National Association of State Budget Officers

The table below breaks down general fund revenues by source in fiscal year 2013 (comparable figures from surrounding states are also provided to give additional context).[46] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, FY 2013 ($ in millions)[46]

State  | Sales tax  | Personal income tax  | Corporate income tax  | Gaming tax  | Other taxes and fees  | Total  | Per capita revenue**
Tennessee | $6,643 | $126 | $1,083 | $0 | $3,551 | $11,403 | $1,755.39
Alabama | $1,945 | $3,104 | $376 | $2 | $1,887 | $7,314 | $1,513.12
Arkansas | $2,125 | $3,144 | $431 | $39 | $475 | $6,214 | $2,099.77
Kentucky | $3,022 | $3,723 | $401 | $0 | $2,202 | $9,348 | $2,126.82
Mississippi | $1,887 | $1,480 | $463 | $145 | $763 | $4,738 | $1,583.98
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates for 2013.[47]
Source: National Association of State Budget Officers

### Revenue trends[edit]

The table below details the change in revenue sources in the general fund from 2009 to 2013.[46][9] Figures for all columns except "Per capita revenue" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the column labeled "Per capita revenue" have not been abbreviated.

Revenue sources in the general fund, Tennessee ($ in millions)[46][9]

Year  | Sales tax  | Personal income tax  | Corporate income tax  | Gaming tax  | Other taxes and fees  | Total  | Per capita revenue**
2013 | $6,643 | $126 | $1,083 | $0 | $3,551 | $11,403 | $1,755.39
2012 | $6,500 | $120 | $1,003 | $0 | $3,520 | $11,143 | $1,726.28
2011 | $6,112 | $123 | $898 | $0 | $3,112 | $10,245 | $1,601.19
2010 | $6,037 | $119 | $668 | $0 | $3,193 | $10,017 | $1,575.82
2009 | $5,966 | $142 | $609 | $0 | $2,519 | $9,236 | $1,466.90
Change in % | 11.92% | 17.00% | 26.70% | 0.00% | -1.87% | 14.71% | 9.47%
Per-capita figures are calculated by taking the state's total revenues and dividing by the number of state residents according to United States Census estimates.[47][48]
Source: National Association of State Budget Officers

## Historical spending[edit]

State budget historical spending below was compiled by the National Association of State Budget Officers. Figures reflect the reported "Total Expenditures" in Table 1. Figures for all columns are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000).[46][10]

Historical state spending in Tennessee ($ in millions)

Fiscal year | General Fund | Other funds | Federal funds | Bonds | Budget totals
Total | % of Budget | Total | % of Budget | Total | % of Budget | Total | % of Budget
2011-2012 | $11,685 | 38% | $5,674 | 19% | $12,806 | 42% | $254 | 1% | $30,419
2010-2011 | $10,561 | 35% | $5,970 | 20% | $13,578 | 45% | $119 | 0% | $30,228
2009-2010 | $9,914 | 35% | $5,484 | 19% | $12,951 | 46% | $100 | 0% | $28,449
Averages: |  $10,720 | 36% |  $5,709 | 19% | $13,112 | 44% | $158 | 1% | $29,699

## Budget transparency[edit]

Transparency evaluation

| Open Government
Searchability | P
Grants | N

Contracts | Y

Line item expenditures | N

Dept./agency budgets | Y

Public employee salaries | Y

Date of last evaluation unknown.

See also: Evaluation of Tennessee state website and Constitutional provisions regarding reading of bills

Tennessee publishes an official, statewide spending database online.

Tennessee House Bill 246 (2009) mandated the creation of a transparency site to be made available by January 1, 2010. As Nebraska's treasurer Shane Osborn pointed out in his letter to Tennessee's legislators, "In the current economic climate, it is as important as ever that citizens have the ability to easily navigate the state budget, giving them access to information on how government is spending their hard-earned income."[49]

### Multi-measure budget transparency profile[edit]

The Institute of Government and Public Affairs at the University of Illinois created a multi-measure transparency profile for Tennessee, which measured state transparency as of September 2011 using indicators from a range of organizations. These indicators measured both website transparency and other recognized facets of governmental transparency. In addition, IGPA presented four unique indicators of non-transparency based on the observation that transfers or reassignments between general and special funds can obscure the true fiscal condition of a state.[50][51]

IGPA devised a budget transparency index based on information available from the National Association of State Budget Officers. Tennessee tied for 33rd in the nation with 12 other states, earning four out of eight possible points.[51]

Tennessee - IGPA score for budget process, contents and disclosure

Budget transparency indicator  | Yes or no?
Performance measures |

"Generally Accepted Accounting Principles" budget | N

Multi-year forecasting | N

Annual cycle | Y

Binding revenue forecast | N

Legislative revenue forecast |

Nonpartisan staff | N

Constitution or statutory tax/spend limitations | Y

TOTAL | 4

In addition to the individual state profile, IGPA offers a 50-state comparison and profiles for other states.[51]

# Prior fiscal year budgets[edit]

### Fiscal year 2016[edit]

See budget bill: HB 1374 and SB 1399

Governor Bill Haslam announced his fiscal year 2016 budget proposal on February 9, 2015. Under this proposal, total state spending would have equaled about $33.3 billion, including $29.4 billion in general fund spending. The largest portions of general fund spending would have gone to education (47 percent); health and social services (34 percent); and law, safety, and correction (11 percent).[11]

Governor Haslam signed the official budget into law on May 18, 2015. The final budget totaled $33.8 billion in total spending and invested heavily into education and economic development. The budget also mandated property tax relief for the elderly and veterans, as well as teacher pay increases throughout the state. The budget also set aside $120 million for a new museum, but it did not include the governor's healthcare expansion plan.[11]

### Fiscal year 2015[edit]

See budget bill: HB 2501

Governor Bill Haslam announced his fiscal year 2015 budget proposal on February 3, 2014. Under the governor's proposal, total spending for fiscal year 2015 would have equaled approximately $32.6 billion, including $15.0 billion from state apropriations.[2]

On May 16, 2014, Haslam signed into law the fiscal year 2015 budget. The enacted budget totaled $32.4 billion, a 2.4 percent reduction over fiscal year 2014.[2]

### Fiscal year 2014[edit]

See budget bill: Senate Bill 502

Tennessee state budget -- 2014

Tennessee State Legislature
Text:| Senate Bill 502
Legislative history
Introduced:| January 31, 2013
House:| April 17, 2013
Vote (lower house):| 83-14
Senate:| April 17, 2013
Vote (upper house):| 32-0
Governor:| Bill Haslam
Signed:| May 16, 2013

The Tennessee General Assembly voted on April 17, 2013, to pass Governor Bill Haslam's proposed budget for fiscal year 2014. The State Senate approved the budget unanimously, and only 14 dissenting votes were cast in the State House.[52]

Haslam signed the budget into law on May 16, 2013.[53]

### Fiscal year 2013[edit]

See also: Tennessee state budget (2012-2013)

### Fiscal year 2012[edit]

See also: Tennessee state budget (2011-2012)

### Fiscal year 2011[edit]

See also: Tennessee state budget (2010-2011)

### Fiscal year 2010[edit]

See also: Tennessee state budget (2009-2010)

## See also[edit]

* Tennessee state budget and finances

## Footnotes[edit]

1. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2015," accessed April 4, 2016
2. ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 National Association of State Budget Officers, "Examining fiscal 2013-2015 state spending," accessed April 4, 2016 Cite error: Invalid `<ref>` tag; name "nasbo2015" defined multiple times with different content Cite error: Invalid `<ref>` tag; name "nasbo2015" defined multiple times with different content
3. ↑ InflationData.com, "Cumulative Inflation Calculator," accessed April 4, 2016. The cumulative rate of inflation during the same period declined -0.1 percent, calculated using the Consumer Price Indices for January 2014 and January 2015.
4. ↑ 4.0 4.1 4.2 4.3 National Association of State Budget Officers, "State Expenditure Report: 2013-2015," accessed April 7, 2016
5. ↑ 5.0 5.1 5.2 5.3 U.S. Census Bureau, "2014 annual survey of state government tax collections by category," accessed April 4, 2016 Cite error: Invalid `<ref>` tag; name "taxcollections" defined multiple times with different content Cite error: Invalid `<ref>` tag; name "taxcollections" defined multiple times with different content
6. ↑ United States Census Bureau, "State Government Finances: 2013," accessed March 21, 2016
7. ↑ 7.0 7.1 7.2 United States Census Bureau, "State Government Finances: 2012," accessed February 24, 2014
8. ↑ United States Census Bureau, "State and County QuickFacts," accessed April 4, 2016
9. ↑ 9.0 9.1 9.2 9.3 9.4 National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
10. ↑ 10.0 10.1 10.2 10.3 National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
11. ↑ 11.0 11.1 11.2 11.3 National Association of State Budget Officers, "Summaries of Fiscal Year 2016 Proposed and Enacted Budgets," accessed September 22, 2015
12. ↑ State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
13. ↑ In 2016, State Budget Solutions was absorbed by the American Legislative Exchange Council.
14. ↑ Truth in Accounting, "Financial State of the States," September 2015
15. ↑ 15.0 15.1 Morningstar, "The State of State Pension Plans 2013: A Deep Dive Into Shortfalls and Surpluses," accessed September 16, 2013
16. ↑ The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans: Funding Gap Continues to Grow,” accessed April 16, 2015
17. ↑ 17.0 17.1 Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2012," July 13, 2012
18. ↑ Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
19. ↑ Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
20. ↑ Academy Health, "Impact of the Economy on Health Care," August 2009
21. ↑ The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
22. ↑ Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
23. ↑ The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
24. ↑ The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
25. ↑ The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
26. ↑ The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015
27. ↑ 27.0 27.1 27.2 27.3 27.4 27.5 National Association of State Budget Officers, "Budget Processes in the States, Spring 2021," accessed January 24, 2023
28. ↑ National Conference of State Legislatures, "Separation of Powers: Executive Veto Powers," accessed January 26, 2024
29. ↑ 29.0 29.1 U.S. Public Interest Research Group, "Following the Money 2015 Report," accessed April 4, 2016
30. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
31. ↑ InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
32. ↑ 32.0 32.1 32.2 32.3 32.4 32.5 National Association of State Budget Officers, "State Expenditure Report: 2012-2014," accessed February 18, 2015
33. ↑ United States Census Bureau, "State and County QuickFacts," accessed February 23, 2014
34. ↑ 34.0 34.1 National Association of State Budget Officers, "State Expenditure Report, 2009," accessed February 24, 2014
35. ↑ 35.0 35.1 National Association of State Budget Officers, "State Expenditure Report, 2008," accessed February 24, 2014
36. ↑ State Budget Solutions, "State Budget Solutions' Fourth Annual State Debt Report," January 8, 2014
37. ↑ In 2016, State Budget Solutions was absorbed by the American Legislative Exchange Council.
38. ↑ The Pew Charitable Trusts, “The Fiscal Health of State Pension Plans: Funding Gap Continues to Grow,” accessed April 16, 2015
39. ↑ Bankrate, "The 6 states with the worst credit ratings," September 27, 2012
40. ↑ Stateline: The Daily News Service of The Pew Charitable Trusts, "Infographic: S&P State Credit Ratings, 2001-2014," June 9, 2014
41. ↑ Recovery.gov, "Stimulus Spending by State," accessed February 21, 2014
42. ↑ National Conference of State Legislatures, "Separation of Powers: Executive Veto Powers," accessed January 26, 2024
43. ↑ 43.0 43.1 U.S. Public Interest Research Group, "Following the Money 2014 Report," accessed April 15, 2014
44. ↑ Bureau of Labor Statistics, "CPI Detailed Report Data for February 2014," accessed April 9, 2014
45. ↑ InflationData.com, "Cumulative Inflation Calculator," February 28, 2014
46. ↑ 46.00 46.01 46.02 46.03 46.04 46.05 46.06 46.07 46.08 46.09 46.10 46.11 46.12 46.13 46.14 46.15 National Association of State Budget Officers, "State Expenditure Report, 2011-2013," accessed February 21, 2014
47. ↑ 47.0 47.1 47.2 United States Census Bureau, "Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2013," accessed February 26, 2014
48. ↑ United States Census Bureau, "Vintage 2009: Annual Population Estimates," accessed February 26, 2014
49. ↑ Treasurer Shane Osborn, "Letter from Treasurer Shane Osborn to Tennessee's Legislators," March 17, 2009
50. ↑ Institute of Government and Public Affairs at University of Illinois, "Home page," accessed February 21, 2014
51. ↑ 51.0 51.1 51.2 Institute of Government and Public Affairs at University of Illinois, "Budget Transparency Profiles - All 50 States," September 2011
52. ↑ WSMV.com, "TN legislators pass $32.8B Haslam budget proposal," April 17, 2013
53. ↑ Tennessee General Assembly, "Bill Information for SB0502," accessed May 5, 2014

v • e

Budget policy

Budget background|

Government budgets • Cost of state transparency websites • State budget issues • Public employee salaries • Public pensions • States with spending online • Glossary of state budget terms • Total state expenditures • State spending by function as a percent of total expenditures

* * *

State budget and finance pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Tax policy background|

Personal income tax • Sales tax • Corporate income tax • Property tax • Excise taxes • Estate and inheritance taxes • Capital gains tax

* * *

State tax policy pages|

Alabama • Alaska • Arizona • Arkansas • California • Colorado • Connecticut • Delaware • Florida • Georgia • Hawaii • Idaho • Illinois • Indiana • Iowa • Kansas • Kentucky • Louisiana • Maine • Maryland • Massachusetts • Michigan • Minnesota • Mississippi • Missouri • Montana • Nebraska • Nevada • New Hampshire • New Jersey • New Mexico • New York • North Carolina • North Dakota • Ohio • Oklahoma • Oregon • Pennsylvania • Rhode Island • South Carolina • South Dakota • Tennessee • Texas • Utah • Vermont • Virginia • Washington • West Virginia • Wisconsin • Wyoming

* * *

Comparative analysis of state debt|

Federal outlays to state government (2014-2017) • State tax revenue projections and shortfalls (2020-2021) • Proportion of state government general revenues from the federal government (2014-2018) • State debt per capita (2014-2018) • State unfunded public pension liabilities, 2003-2018

v • e

State of Tennessee
Nashville (capital)

|

Elections |

What's on my ballot? | Elections in 2024 | How to vote | How to run for office | Ballot measures

Government |

Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy