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Tennessee state budget (2008-2009)
| Note: This article was last updated in 2009. Click here for more recent information on state budgets and finances. |
State officials announced that Tennessee was facing a $543 million budget gap for fiscal year 2009.[1] According to the Center on Budget and Policy Priorities, Tennessee could have faced a $712 million deficit for FY 2010.[2]
Budget background
- See also: Tennessee state budget and finances
Tennessee's budget process begins in August of each year when the Commissioner of Finance and Administration issues budget instructions to all departments and agencies of state government. Agency budget requests are submitted by October 1. During October and November, the governor meets with the departments and agencies to hear their budget proposals for the following fiscal year.[3] Following the hearings the governor issues a budget recommendation for the upcoming fiscal year to the legislature. Both the House and the Senate are required to make any necessary changes or adjustments to the budget until the bill is passed in both houses. Lawmakers must pass a balanced budget before the fiscal year begins on July 1 of each year.[4]
- Tennessee has no general income tax.[5]
- Tennessee's tax structure has the majority of its tax revenue coming from the sales tax, the largest portion of which funds K-12 education.[6]
- For FY 2009, out of the state's tax revenue the state spent approximately 48 percent on education; 4 percent on resources and regulation; 12 percent on law, safety, and correction; 3 percent on the general government; 32 percent on health and social services; and 1 percent on business and economic development.[6]
- For FY2009, state tax revenue was comprised of 57 percent sales tax, 2 percent motor vehicle tax, 7 percent gasoline tax, 3 percent income and inheritance tax, 5 percent gross receipts and privilege, 14 percent franchise and excise tax, 3 percent insurance and banking tax, 6 percent from other taxes, and 3 percent from tobacco, alcohol and beer tax.[6]
Budget figures
The following table provides a history of Tennessee's expenditures and gross domestic product (GDP).
| Fiscal year | Expenditures (billions) | GDP (billions) |
|---|---|---|
| 2000 | $32.0[7] | $174.9[7] |
| 2001 | $34.3[7] | $180.6[7] |
| 2002 | $36.6[7] | $191.5[7] |
| 2003 | $39.2[7] | $200.3[7] |
| 2004 | $41.8[7] | $214.8[7] |
| 2005 | $42.7[7] | $224.2[7] |
| 2006 | $44.3[7] | $235.8[7] |
| 2007 | $46.2[7] | $243.9[7] |
| 2008 | $48.3[7] | $252.3[7] |
| 2009 | $50.5*[7] | $260.9*[7] |
- NOTE: The figures for FY 2009 had not been finalized at the time this data was compiled.
See also
Footnotes
- ↑ Associated Press, "Tenn. budget gap grows to $543M in January," March 6,2009
- ↑ Center on Budget and Policy Priorities, "State budget troubles worsen," March 13,2009
- ↑ State of Tennessee, "Budget Process," accessed March 16, 2009
- ↑ Tennessee Department of Finance and Administration, "Budgetary Process," accessed March 16,2009
- ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedIncomeTax - ↑ 6.0 6.1 6.2 State of Tennessee, "The budget, fiscal years 2008-2009," accessed March 16, 2009
- ↑ 7.00 7.01 7.02 7.03 7.04 7.05 7.06 7.07 7.08 7.09 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 U.S. Government Spending, "Tennessee state and local spending," accessed March 13,2009
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