As Tennessee’s recent boom years fade with slower tax revenues, Gov. Bill Lee is forging ahead on some big-ticket items in his state budget proposal – among them, a dramatic expansion of taxpayer-funded vouchers to help children attend private schools, a big tax break for businesses, and growth of state parks and natural areas.
The Republican’s spending plan for fiscal year 2024-2025 clocks in at $52.6 billion, down from this year’s estimated $62.5 billion budget, as state tax revenues have largely flattened and funding under some federal initiatives has dried up. The administration says it has some money at its disposal after deciding to spend about $2.6 billion from year-after-year tax revenues on one-time projects this year, freeing those sources of cash for next year.
Lawmakers in the Tennessee General Assembly, where Republicans hold supermajorities, will take up the budget and make any changes in the coming months.
Some key increases in state spending:
• Franchise tax, $1.6B: Would include an ongoing $410 million franchise tax break and $1.2 billion in one-time money backfilled into the current year’s budget to give businesses tax refunds, both aimed at avoiding a legal challenge over the state’s current tax
• School vouchers, $144M: Would serve up to 20,000 students in the first year, half of them restricted by their family’s income, the other half unrestricted
• Public school funding, $261.3M: Would add to the K-12 education funding formula, including money for incremental raises to teacher pay aimed at reaching $50,000 starting pay by the 2026-2027 school year
• Parks, nature, agriculture, $207.3M: Various initiatives would include new state parks at Hiwassee Scenic River, Ocoee River, Head of the Crow, Fort Southwest and Cardwell Mountain, a new grant program to support a lake improvement project named for fishing legend Bill Dance and a farmland conservation fund and an agriculture enterprise fund
• Rural health, $81.1M: Includes several items to address health care apprenticeships, training, career pathways, specialty care and technical assistance, the largest of which is $50M for grants for applicants seeking to improve rural care
• Rainy day fund, $20M: Increases state reserve fund to $2.07B
• State employee pay, $49M: Adds 3% increase to the fund that pays many state employees; more funding is included to give raises to additional state workers
• State troopers, $17.4M: Funds 60 new state troopers, supervisors, support staff
State plans only one year of summer food aid
Tennessee only plans to participate for one year in a federal program that gives low-income families $40 per child per month to pay for food while school is out, the governor’s office said Feb. 2.
Tennessee is among 35 states, all five U.S. territories and four tribes that have opted into the Summer Electronic Benefits Transfer program, or Summer EBT, for this summer. Fifteen other states, all currently with Republican governors, won’t be participating.
Officials in President Joe Biden’s administration say the money is meant to supplement existing programs during the summer that have had a more limited reach.
In announcing Tennessee doesn’t plan to keep the benefit after one summer, Gov. Bill Lee’s office echoed arguments from some of the states not participating, saying the initiative stemmed from a pandemic-era benefit and that other food assistance programs are in place.
Signe Anderson, senior director of nutrition advocacy at the nonprofit Tennessee Justice Center, said Summer EBT helps fill gaps in existing food programs for families who need help when school isn’t in session. She said she’s grateful Tennessee will offer the benefit this summer, but is extremely disappointed officials appear to be ruling out further participation.
TDOT nabs award for pollinator efforts
The Tennessee Department of Transportation has been awarded the Pollinator Roadside Management Award for 2023 by the North American Pollinator Partnership Campaign. The award is given to agencies leading the field in pollinator-friendly roadside practices.
“Pollinators are vitally important to Tennessee’s agriculture and economy,” explained Deputy Governor and TDOT Commissioner Butch Eley. “TDOT is proud of the work we’ve done, and the work of our partners, in bringing about better management of roadsides and informing the public about the critical threat to pollinators.”
TDOT was recognized, alongside the Partners for Pollinators Working Group, for its continuing improvement of Tennessee’s roadside maintenance practices. Additionally, TDOT and the Working Group were lauded for their public education efforts and pursuit of partnerships to make an ecological impact.
Information: www.pollinator.org
TDHS opens grants for child care
The Tennessee Department of Human Services has announced the opening of applications for the nonprofit and Employer Workforce Care Partnership Grants, (also known as NEW Care Partnership Grants).
This opportunity is made available through the Child Care Improvement Fund, a 3-year pilot, which allocates $15 million a year in state dollars to support child care provided through nonprofit organizations.
Following the success of the department’s collaboration with Tennessee businesses such as Tyson Foods to enhance employer-sponsored child care, this new initiative will use some of the Child Care Improvement Fund to aid in the creation of child care access for employers and their workforce.
The grant program invites nonprofit organizations in Tennessee to propose strategies and innovative models of partnership with private employers, aiming to expand child care availability for the employer’s workforce.
The initiative requires partnership models to address the specific needs of employee families and enhance the financial sustainability of child care providers. Potential strategies could include new construction/renovation for on-site employer child care, access to existing employer facilities to create new licensed child care capacity, employer support for operating expenses, or the employer agrees to pay for an allotted number of new child care slots.
Nonprofits are encouraged to submit other innovative partnership strategies that are appropriate to their community and situation.
For all awarded grants, state funds will match the level of monetary support invested by the employer throughout the grant term. The NEW Care Partnership Grants reflect TDHS’s commitment to fostering collaborative efforts that contribute to the well-being of families and communities across Tennessee.
Information
Murfreesboro building activity tops $1B in 2023
Murfreesboro’s single-family permits and new commercial development in 2023 reveal expanding growth and higher valuation. Overall building activity in 2023 hit $1 billion in permit valuation, a new high for Murfreesboro, which recorded a 3-year permit valuation of $2.7 billion since January 2021.
New commercial permits in Murfreesboro rose in 2023 to 69 permits from the 62 permits issued in 2022. New commercial permits had previously risen from 44 in 2018 to 51 in 2021, a growing trend.
Larger commercial developments include $65 million in current apartment construction at Clari Park with a future mix of single-family detached residential and townhomes under construction off Medical Center Parkway. Planned or permitted projects in Clari Park include Main Event, Whataburger, PF Chang’s, Raising Cane’s, Drake’s and Towneplace Suites.
Permitting of residential units in Murfreesboro expanded to a total of 1,320 permits in 2023, including 730 single-family detached units, 284 single-family attached units and 306 apartment units.
Ole South Properties lead the market with 128 single-family/townhome permits followed by Crescent Homes with 85 permits and Meritage Homes with 83. By subdivision, Shelton Square on the west side of Murfreesboro and Westwind experienced the most building activity.
The cost of housing, while economical in Murfreesboro compared to many parts of Middle Tennessee and the nation, has been getting more expensive due to lot shortages and building and material costs.
Ingram forms new infrastructure group
Ingram Barge Company LLC announced the creation of Ingram Infrastructure Group LLC as a new material handling and supply chain solutions subsidiary within its corporate structure. The move was fueled by Ingram finalizing its acquisitions of Inland River Transport Holdings LLC and NexStar Solutions LLC, marking a sizable expansion in Ingram’s services and assets.
Ingram acquired SCF, a provider of integrated river transportation and logistics services, from SEACOR Holdings Inc. following the signing of a purchase agreement in October.
Ingram currently operates across more than 4,500 miles of the U.S. inland waterways system transporting a variety of essential agriculture and industrial commodities via 4,100 covered and open top dry cargo and liquid tank barges and 140 towboats. With these acquisitions, they will now be able to leverage their expertise in marine transportation to become a fully integrated, end-to-end supply chain solutions provider.
In addition to acquiring SCF, Ingram has also acquired NexStar Solutions LLC, an industry leader in logistics infrastructure consulting, specializing in comprehensive advisory services to investors, governments and organizations.
State nets $21M for EV charging stations
The Tennessee Department of Transportation, in cooperation with the Tennessee Department of Environment and Conservation, has been awarded $21 million in federal funds for electric vehicle fast-charging stations across the state.
Thirty-one EV fast charging locations are needed to fill gaps along the state’s designated Alternative Fuel Corridors, which include Tennessee’s two-digit interstate routes and U.S. 64.
The awardees will purchase, install, own, operate, maintain and report on the program-funded EV charging infrastructure.
The NEVI formula funding requires a match of at least 20% of the federal funds. For this round of awards totaling over $31 million, private funding accounts for 32%, or more than $10 million in private funding for EV charging stations in Tennessee.
Other requirements include EV charging stations being located every 50 miles along the federally designated AFCs, within one-mile travel distance from the corridor, and having a minimum of four charging ports per location.