TN Gov. Bill Haslam gives his annual State of the State address to the Tennessee General Assembly in Nashville. (AP Photo/Mark Humphrey)
By The Associated Press
Republican Gov. Bill Haslam on Monday unveiled his $37 billion Tennessee spending plan for the budget year beginning July 1, a 4.8 percent increase over the current year. Haslam's proposed new spending includes:
$655 million for building construction and maintenance across state government and higher education.
$279 million in new road building and maintenance funds generated largely from a hike in the gas and diesel taxes.
$278 million to cover tax cuts including $55 million to reduce the sales tax on groceries; $102 million to cut corporate taxes for manufacturers; and $60 million to reduce the tax on income from stocks and bonds.
$230 million for K-12 schools, including $100 million for teacher salaries and $22 million for English language learning programs.
$214 million to cover increased costs for TennCare, the state's expanded Medicaid program covering 1.5 million Tennesseans.
$135 million to give back money taken from the highway fund by previous governors.
$132 million to bring the state's rainy day fund budget reserve to all-time high of $800 million.
$60 million for economic development and jobs training grants.
$78 million for higher education and the Complete College Act.
$77 million for state employee pay increases and market rate adjustments.
$45 million in grants and tax credits over three years to encourage commercial broadband expansion to rural areas.
$21 million to fund Rural Task Force recommendations.
$15 million for career and technology education equipment.
$15 million for the state's aeronautics economic development fund.
$12 million to fund substance abuse and crisis intervention treatment and service.
$8 million to buy a new rescue helicopter and $1.7 million to pay for new fire trucks.
$3.5 million to hire 27 positions in state prosecutors' offices and 18 in public defenders' offices.
$3.4 million to hire and outfit 25 new Tennessee Highway Patrol troopers.
Source: Gov. Bill Haslam's office.
Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.