Senate Passes Balanced Budget and Support for Rural Utility Operators
By State Senator Page Walley
After years of trying to help rural municipalities afford to install and maintain water and wastewater systems, my bill providing them with support to do so passed in our Senate last week. The bill helps rural counties with ‘utility depreciation’ which is the cost of funding the replacement of any new system while simultaneously paying for the new system. Many rural communities cannot afford to accept block grants because the state’s expectations of depreciation prevent rural municipalities from upgrading their utility systems.
This bill aims to help rural counties provide adequate utility infrastructure to Tennesseans. By providing a depreciation holiday of one year following installation of infrastructure, this bill will provide some relief to rural counties.
Currently, the municipality is responsible for paying depreciation immediately, which is costly and burdensome for rural counties. This also makes it even harder to replace the systems once its life has ended. The bill allows for a one-year reprieve of paying depreciation after installation, and still keeps the municipality in compliance with accounting standards.
Budget reaffirms commitment to education and public safety
Also last week, we passed the state budget, which will take effect on Monday, July 1, 2024, of this year. The 2024/2025 budget takes on no new debt and reflects lawmakers’ continuous efforts to cut taxes, maintain fiscal responsibility, protect public safety, prioritize education and invest in rural health.
This year lawmakers faced new budgeting challenges as state revenue collections have slowed. Fortunately, years of consistent conservative budgeting from Republican lawmakers enabled the state to be well-prepared to face declining revenues. Tennessee continues to be among the most fiscally stable states in the nation with no state income tax and low tax burden overall.
After years of record-high revenue growth, the state’s revenues have normalized. We’ve tightened our belts and kept recurring expenses low to alleviate future financial burdens. Despite declining revenues, this budget maintains low taxes while also providing services to those in need, particularly disabled and vulnerable populations. Through this budget Tennessee continues to lead the nation in fiscal conservatism, and I am proud of our work.
The budget accounts for a slowdown in economic growth by spending less and opting for one-time expenditures over recurring expenditures to lower the state’s financial obligations in the future. The $52.8 billion 2024/2025 budget total is $10 billion less than last year’s 2023/2024 budget.
This budget reflects that we Tennesseans see the inherent dignity in every human life. We support our neighbors in need and stand beside law enforcement and first responders who protect our lives and property. We believe in personal responsibility and we do not tolerate those who prey upon the weak and vulnerable.
The budget efficiently uses existing funding sources within the budget, such as TennCare shared savings and interest earnings, to reduce the reliance on general fund appropriations.
This budget also includes a $100 million addition to the state’s Rainy Day Fund, which serves as the state’s savings account to withstand economic downturns, bringing the fund to a historic level of $2.15 billion.
Continuing focus on education
Once again, education is a top priority in the budget this year, with an emphasis on empowering parents and improving public education. For K-12 public education, the budget invests an additional $261 million to go into the TISA education funding formula. It also includes $125 million to keep the state’s commitment to raise the starting salary for every Tennessee teacher to $50,000 by 2026.
Prioritizing public safety
A key aspect of this budget is to provide resources to keep Tennessee communities safe. Investments in public safety include:
● $17 million to add 60 new highway patrol troopers, supervisors and support staff
● $6.4 million for military border deployment of Tennessee National Guard
● $4.4 million for a legislative initiative to implement blended sentencing to address juvenile crime
● $1.5 million to fund a legislative initiative to reduce recidivism of repeat misdemeanor offenders
● $383,500 for a legislative initiative to collect data on number of illegal immigrants in Tennessee from law enforcement agencies
● $15 million for grant pools for volunteer firefighters, rescue squads, and EMS
● $4.45 million for Youth Villages Violence Prevention Program in Shelby County
● 13 new positions for the TBI
Rural Communities
There is $36 million in non-recurring grants to help distressed counties and rural communities with economic development, such as community asset improvements, marketing and downtown revitalization grants.
This week should conclude the 113th General Assembly. In the coming weeks I will be providing more detail about additional achievements and investments about our state and district. It continues to be an honor to serve you as our state senator. Please contact my office if I can be of assistance to you at (615) 741-2368 or sen.page.walley@capitol.tn.gov.
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