Tennessee Senate Bill SB1850

Tennessee 2023-2024 Regular Session

• Introduced: 1/23/24

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 bill amends several sections within the Tennessee Code Annotated, particularly Title 9, Chapter 4, Part 52, which governs appropriations from state tax revenues. By updating the language around appropriations, the bill seeks to enhance fiscal responsibility in state budgeting and may limit the growth of expenditures to ensure alignment with available economic resources. The intended outcome is to create a more sustainable fiscal environment that could potentially prevent budgetary shortfalls during economic downturns.

Summary

Senate Bill 1850, proposed in Tennessee, aims to modify the state’s fiscal policy regarding appropriations from state tax revenues. Specifically, the bill establishes the dollar amount and rate by which the growth of appropriations will exceed the estimated growth in the state’s economy, as determined in Article II, Section 24 of the Tennessee Constitution. The adjustments made by this bill are critical as they define the relationship between state revenue growth and appropriations, ensuring that budgeting aligns with economic performance.

Contention

Despite the bill's emphasis on fiscal discipline, there may be concerns about its implications for future state spending and funding for essential services. Critics may argue that while limiting appropriations growth can help avoid deficits, it could also hinder the state’s ability to respond effectively to emerging needs, such as education, public health, and infrastructure investments. The balance between responsible budgeting and adequate funding for state priorities is likely to be a significant point of debate among lawmakers.