Tennessee Governor: Reserves to Make Up Budget Shortfall - WRCBtv.com | Chattanooga News, Weather & Sports

Tennessee Governor Wants to Use Reserves to Make Up Budget Shortfall

Posted: Updated:

NASHVILLE, Tenn. (AP) - Gov. Phil Bredesen says he plans to use money from the state's reserves to spare some state jobs and key services.

The Democratic governor told reporters Monday morning that he would provide details of his plan later that night in his eighth and final State of the State address.

There are currently $875 million in cash reserves, and lawmakers have made various suggestions on how much of the reserves should be spent.

Despite the use of reserves, Bredesen said painful cuts will have to be made in other areas, such as TennCare, the state's expanded Medicaid program.

However, he said the changes will apply more to institutions than TennCare enrollees.


(Copyright 2010 by The Associated Press. All Rights Reserved.)

AP-NY-02-01-10 1255EST

Powered by Frankly