Budget Shortfall Looms as Tennessee Struggles

State struggling to meet budget goals as fiscal year-end approaches

The State of Tennessee is running behind budget estimates as the end of its fiscal year approaches.

In data released to the media, the Department of Finance and Administration noted that revenues for May of 2024 were $29.2 million short of budgeted estimates. The state also reported revenue below estimates for April of this year.

Finance and Administration Commissioner Jim Bryson said, "Year-to-date, we are significantly below our original general fund budget estimate with two months remaining in the current fiscal year."

In addition to the sluggish May revenue, the state reports that year-to-date, incoming revenue is $523 million below budgeted estimates.

The budget shortfall follows nearly a decade of annual budget surpluses and reflects a series of business and other tax cuts passed by the General Assembly.

In recent years, Tennessee has phased out the inheritance tax and also eliminated the Hall Tax on investment income, in addition to passing a slew of business tax reductions.

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