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Governor Lee Proposes FY23-FY24 Budget

 
Governor Lee delivered his State of the State address to the General Assembly on Monday, outlining his administration's FY23-24 budget. Read on to learn more about Governor Lee's agenda, including his administration's health care priorities.
 
Governor Bill Lee delivered his State of the State address to the Tennessee General Assembly on Monday, February 6th. The State of the State coincided with the release of the governor's $55.6B proposed FY23-24 budget, outlining the administration's key priorities.  
 
What is included in the FY23-24 proposed budget? 
During his State of the State address, Governor Lee touted significant investments in infrastructure, economic development, education, children and family services, and natural resources and the environment. Below are highlights from the governor's proposed budget: 
 
Transportation Infrastructure 
  • Governor Lee revealed plans for the Transportation Modernization Act, which will provide $3B to address traffic congestion in the three grand divisions.1  
  •  $300M will also be allocated to local highway projects.2  
Economic Development 
  • $150M in tax relief for small businesses.3  
  • $1B for the Tennessee College of Applied Technology (TCAT) to update and expand certain facilities and create new sites.4  
  • $288.3 for a three-consecutive month grocery sales tax holiday.5 
  • $250M will also be added to the state's Rainy-Day Fund.6 
Education 
  • $350M for Tennessee Investment in Student Achievement (TISA), the public-school funding formula, $125M of which will go to teacher salaries.7 
  • Governor Lee stated his goal is to raise starting teacher salaries to $50,000 within the next four years.8  
  • The budget also includes funding for summer learning and school safety.  
Children and Family Services 
  • $190M to support Department of Child Services including:9 
    • $33M to increase bed capacity in the DCS provider network.10 
    • $39.8M to increase payment rates for DCS providers offering residential and clinical services.11 
    • $15.9M for DCS case manager salaries.12 
    • $11.4M for contracts with private case managers.13 
    • $31M to replace the DCS case management and payment system.14 
  • $100M for Crisis Pregnancy Centers.15 
Public Safety and Law Enforcement 
  • $50M for the Violent Crime Intervention Grant Fund.16 
  • $33.3 M to add 100 state troopers.17 
  • $4.5M for 25 TBI forensic staff.18 
Natural Resources and the Environment 
  • 129M for state park lodge reconstruction.19 
  • $52.4M for four new state parks.20 
  • $128.3M for other state parks, natural areas, and forests.21 
  • $70M to clean up superfund sites, Oak Ridge, and dry cleaner sites.22 
  • $6.3M to address brownfield sites.23 
 
What health care priorities are included in the proposed FY23-24 budget? 
Governor Lee outlined several health care priorities in his State of the State, primarily centered on women and children:
 
TennCare 
Governor Lee highlighted proposed investments in TennCare, the state's Medicaid program. The governor highlighted the success of the TennCare demonstration waiver, which resulted in $300M in shared savings for the state in the first year.24 The proposed FY23-24 budget includes funding for the following initiatives: 
  • $5.1M to increase the TennCare income eligibility to 250% of the Federal Poverty Level for pregnant women.25 
  • $13.6M to increase the TennCare income eligibility to 100% of the Federal Poverty Level for parents.26 
  • $4.7M to make the postpartum coverage expansion from 60 days to 12 months permanent.27 
  • $5.2M for 12-month continuous coverage for children.28 
  • $1.3M for CHANT prenatal care coordination expansion.29 
Tennessee Department of Health 
The proposed FY23-24 budget includes an additional $7M in recurring funding for the Health Care Safety Net Fund. This fund is administered through the Department of Health and partially offsets the cost of providing primary care services to uninsured adults at community health centers and charitable and faith-based clinics. If the $7M is included in the final budget passed by the General Assembly, total Health Care Safety Net funding will reach slightly over $31M, the highest amount ever allocated to the fund.  

The proposed FY23-23 budget also includes $4.6M for investments in perinatal and prenatal care including regional perinatal centers, perinatal telehealth infrastructure, and the TN Initiative for Perinatal Quality Care.30
 
What happens next with the budget?   
The Tennessee General Assembly will now shape the FY23-24 budget. Relevant committees in the General Assembly will hold budget hearings, where they will learn more details about the proposed budget during presentations from state departments. Ultimately the House and Senate must agree on and pass an appropriations bill, will be signed by the governor.  
 
 
 
[1]  2023 state of the State Address. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/sots/2023-state-of-the-state-address
[2]  Ibid.
[3]  Ibid.
[4]  Ibid.
[5]  Gov. Lee delivers 2023 state of the State Address – 'Tennessee: Leading the nation'. Tennessee State Government - TN.gov. (2023, February 6). Retrieved February 8, 2023, from https://www.tn.gov/governor/news/2023/2/6/gov-lee-delivers-2023-state-of-the-state-address-tennessee--leading-the-nation.html 
[6]  2023 state of the State Address. Tennessee State Government - TN.gov. (2023, February 6). Retrieved February 8, 2023, from https://www.tn.gov/governor/sots/2023-state-of-the-state-address 
[7]  Ibid.
[8]  Ibid.
[9]  2023 state of the State Address. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/sots/2023-state-of-the-state-address
[10]  Gov. Lee delivers 2023 state of the State Address – 'Tennessee: Leading the nation'. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/news/2023/2/6/gov-lee-delivers-2023-state-of-the-state-address-tennessee--leading-the-nation.html
[11] Ibid.
[12]  Ibid.
[13]  Ibid.
[14]  Ibid.
[15]  Ibid.
[16]  2023 state of the State Address. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/sots/2023-state-of-the-state-address
[17]  Overview of the Governor's FY2023-2024 Budget Recommendation. Department of Finance & Administration. (2023, February 7). Presented to the Senate Finance, Ways & Means Committee. Retrieved from https://tnga.granicus.com/player/clip/27412?view_id=753&redirect=true&h=4a9cde52c99aede190fc603fbaca3651
[18]  Ibid.
[19]  Ibid.
[20]  Ibid.
[21]  Ibid.
[22]  Gov. Lee delivers 2023 state of the State Address – 'Tennessee: Leading the nation'. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/news/2023/2/6/gov-lee-delivers-2023-state-of-the-state-address-tennessee--leading-the-nation.html.
[23]  Gov. Lee delivers 2023 state of the State Address – 'Tennessee: Leading the nation'. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/news/2023/2/6/gov-lee-delivers-2023-state-of-the-state-address-tennessee--leading-the-nation.html.
[24]  2023 state of the State Address. Tennessee State Government - TN.gov. (2023, February 6). Retrieved from https://www.tn.gov/governor/sots/2023-state-of-the-state-address
[25]  Overview of the Governor's FY2023-2024 Budget Recommendation. Department of Finance & Administration.  (2023, February 7). Presented to the Senate Finance, Ways & Means Committee. Retrieved from https://tnga.granicus.com/player/clip/27412?view_id=753&redirect=true&h=4a9cde52c99aede190fc603fbaca3651 
[26]  Ibid.
[27]  Ibid.
[28]  Ibid.
[29]  Ibid.
[30]  Ibid.
 
 
 

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