Tennessee House Bill HB1703

Tennessee 2023-2024 Regular Session

• Introduced: 1/8/24
• Refer: 1/10/24

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 anticipated effect of HB 1703 involves potential implications for state budgeting processes moving forward. By establishing a more concrete relationship between state appropriations and economic growth, the bill may influence how future budgets are drafted, implemented, and monitored. This could allow for more flexible allocation of resources in accordance with economic performance, ultimately affecting various areas of public expenditure such as education and infrastructure.

Summary

House Bill 1703 proposes modifications to the Tennessee Code Annotated regarding the growth of appropriations from state tax revenues in relation to the estimated growth of the state’s economy. The bill seeks to define the dollar amount and rate by which appropriations from state tax revenue will surpass the projected economic growth. This change is anchored in Article II, Section 24 of the Tennessee Constitution and aims to create a clearer framework for state budgeting and financial planning.

Sentiment

Sentiment regarding HB 1703 is projected to be mixed. Proponents argue that the bill will enhance fiscal responsibility by tying appropriations more closely to economic conditions, which can promote sustainability in public finance. On the other hand, opponents may view this approach as too restrictive, potentially limiting the government’s ability to respond to immediate needs or emergencies that could require increased funding beyond the set growth parameters.

Contention

Debate around HB 1703 centers on the balance between maintaining fiscal discipline and ensuring sufficient funding for essential services and programs. Notable points of contention include fears that strict adherence to this new appropriations growth framework might hinder the state's ability to address social and economic challenges that arise unexpectedly, thereby creating tension between maintaining budgetary limits and adequately supporting the needs of the population.