Tennessee

The state budget is prepared annually by the Budget Division of the Tennessee Department of Finance and Administration and submitted by the governor to the legislature every January. The fiscal year lasts from l July to 30 June.

The total Tennessee State budget forecast for 2000/01 was $16.7 billion, of which $14 billion came from the general fund, and $1.3 billion came from the Department of Transportation. For 2000/01 general fund revenues totaled $7.159 billion, sufficient for the biennial budget, but in 2001/02 general fund revenues fell to $7.002 billion, while expenditures rose to $7.516 billion. Already at the end of 2001, the governor had closed some public parks for lack of funds, and in 2002 the legislature drew on the state's Reserve for Revenue Fluctuations (RRF, the rainy day fund) and made major transfers from other fund. The stage was set for a battle over whether Tennessee was going to finally going to get a personal income tax (a 3.75% flat tax), which ended in defeat for the income tax advocates and a hike in the state sales tax from 6% to 7%. In 2002/03 general fund revenue jumped to $7.895 billion thanks mainly to the increase sales rate, but expenditures jumped even more, to $8.2 billion. The state's budget deficit was estimated at 8.2% of the state budget for 2002/03. For 2004, the deficit is projected to reach 37.8% of the state's budget (about $896 million). The starting balance in 2000/01 equaled 3% of expenditures. This fell to 2.5% of expenditure in 2002/03, for both 2002/03 and 2003/04, the starting balance was at 0. Appropriations were scheduled for health and social services (approximately 23%), health care providers (18.4%), higher education (16%), general government (14.2%), primary and secondary education (14%), public safety (3.5%), economic development (3%), resources and regulations (3%), mental health services (2% million), children's services (1.2%), commission on aging (0.7%); and human services, health services, and mental retardation 0.3% each).

The following table from the US Census Bureau contains information on revenues, expenditures, indebtedness, and cash/securities for 2001.