KNOXVILLE, Tenn. — Governor Bill Lee's State of the State address included his proposals for using taxpayer money in the next fiscal year. Lee's proposed budget, released Monday, was nearly $10 billion lower than the previous year.
"Our money coming in has been amazing," said Rep. Jeremy Faison (R-Cosby), the Republican House Caucus Chair. "That's why we've cut so many taxes."
Tennessee's funding proposal for the next fiscal year also includes a change to the state's "franchise tax," one any entity doing business in Tennessee has to pay. The tax requires businesses to pay tax on their net worth if they do business in Tennessee. If any property the business owns in Tennessee is worth more, they have to pay at least that amount.
Lawmakers said the Attorney General has warned Tennessee courts have struck down that provision in other states. Governor Lee's budget would modify the franchise tax to remove that provision, at a revenue loss of $410 million, the budget said.
"It's those big businesses that are pushing against this," said Rep. Sam McKenzie (D-Knoxville). "You need to pay your fair share, just like every citizen is doing."
McKenzie said shrinking revenues is not the time for Governor Lee to expand school vouchers across the state. The Governor's proposal would provide $7,000 of public funding to families to pay for private schools.
"The Democrats will never, ever, no matter how much revenue we have, will ever say, 'Well, yeah, we should look at school choice,'" Faison said. "It's a conversation that we as a state need to have."
McKenzie said he would like to see the state invest more in public education and capital projects.