NASHVILLE, Tenn. — Tennessee Gov. Invoice Lee on Monday proposed an injection of greater than $1 billion into street tasks in an effort to deal with the state’s $30 billion tasks backlog, which is able to once more want greater than what fuel taxes and different charges can present.
The Republican governor’s price range proposal contains almost $1 billion in one-time, normal state tax cash and a plan to shift $80 million yearly from the gross sales tax on tires. It comes two years after Lee and Republican lawmakers accepted the same $3 billion shift of normal tax cash to roads funding, which is historically coated by fuel taxes.
The cash for roads is among the big-ticket objects in Lee’s $59.5 billion price range proposal for the 12 months that begins in July. Tennessee’s price range has turn into tighter as a result of tax revenues have slowed in contrast with the growth occasions that took form through the COVID-19 pandemic.
“Protected, dependable roads are a main accountability of the state, but there are restricted funds to satisfy an infinite want,” Lee mentioned in ready remarks throughout his annual State of the State speech Monday night.
Some elements of the price range have been already stuffed in after a fast particular session final month. Lee satisfied lawmakers to move greater than $900 million price of initiatives from completely different pots of cash. They embody an enormous growth of vouchers to assist college students attend personal college, coupled with public college trainer raises; aid for areas devastated by Hurricane Helene; and adjustments to assist President Donald Trump’s administration with its immigration deportation crackdown plans.
Lee elevated roadwork as a precedence in 2023, when his laws included a $3 billion infusion for tasks and a hike in electrical automobile and hybrid charges. It additionally opened the door for permitting specific toll lanes on highways by means of public-private partnerships, which hasn’t been carried out but as officers initially contemplate it for a stretch of Interstate 24 from Nashville to the southeastern suburbs.
Tennessee is not alone. Many states have likewise taken quite a lot of steps to complement their fuel taxes, which are not maintaining with their wanted roadwork as extra folks drive electrical autos and hybrids.
In the meantime, Lee proposed directing $11 million to the Boys and Women Membership to assist increase their childcare applications all through the state, in addition to broaden eligibility to a state program that dietary supplements childcare employee salaries.
“At the moment, toddler care in Tennessee carries nearly the identical price ticket as in-state tuition at a four-year public school,” Lee mentioned. “That’s an insurmountable value for the overwhelming majority of mothers and dads who wish to be within the workforce.”
Lee boasted that his proposals would end in “tens of 1000’s of recent daycare spots throughout rural and concrete Tennessee” however didn’t present further particulars on how or when that objective can be achieved. Nor did he specify who precisely it will serve. For instance, lots of the Boys and Women Membership areas in Tennessee solely supply daycare providers to kids 5 years outdated and up.
Additionally in Monday’s speech, Lee proposed a $60 million fund that may create 0% development loans to construct single-family properties. And whereas the governor’s price range doesn’t include any new tax breaks for Tennesseans, Lee mentioned he plans on funding a tax credit score enacted final 12 months that may give incentives to builders constructing reasonably priced housing.
“These are essential steps, and collectively, we must always proceed searching for extra options which can be fiscally accountable to lastly tackle the problem of housing –- by means of innovation, not by means of regulation,” Lee mentioned.
Lee is proposing tens of thousands and thousands of {dollars} extra to spend money on nuclear power, as nicely. In his plan, the state would contribute $50 million to assist the Tennessee Valley Authority develop a small modular reactor. The federal utility has utilized for an $800 million U.S. Division of Vitality grant for the initiative.