Tennessee Senate Bill SB0115

Tennessee 2023-2024 Regular Session

• Introduced: 1/11/23

Caption

AN ACT pursuant to Article II, Section 24, of the Tennessee Constitution providing for the dollar amount and rate by which the growth of appropriations from state tax revenues will exceed the estimated growth in the state's economy and to amend Tennessee Code Annotated, Title 9, Chapter 4, Part 52.

Impact

The enactment of SB0115 is likely to have significant implications on how state appropriations are determined moving forward. By explicitly tying budget growth to expected economic growth, this bill could lead to more conservative budgeting practices that prioritize fiscal responsibility. This approach may prevent fiscal instability caused by unchecked growth in state spending and could promote more measured, long-term financial planning.

Summary

Senate Bill 115 (SB0115) is an act designed to establish parameters for the growth of state appropriations relative to the estimated economic growth of Tennessee. Specifically, the bill amends provisions in the Tennessee Code Annotated to define the relationship between state tax revenue growth and the overall economic growth of the state. The modifications aim to ensure that state spending does not outpace the growth of the economy, thereby fostering a more sustainable fiscal environment.

Sentiment

The sentiment surrounding SB0115 appears to be cautiously optimistic among proponents who see it as a necessary step toward responsible budget management in Tennessee. Supporters advocate for preemptive measures to curb overspending, while some skeptics worry that a stringent approach to appropriation growth could limit funding for essential services in times of economic downturn. Overall, there seems to be a general consensus that managing the relationship between economic growth and state spending is a critical issue.

Contention

Notable points of contention likely revolve around how strictly the new parameters will be enforced and the potential impacts on funding for public services. Critics may argue that limiting budget growth to economic growth forecasts could hamper the state's ability to respond to unexpected economic challenges or the needs for increased spending on public programs. The balance between maintaining fiscal discipline and meeting the needs of the citizens is a central theme in the discussions surrounding this bill.