Tennessee Gov. Bill Haslam has filed an amendment with the General Assembly that adjusts next year’s budget proposal to reflect new estimates on increased state revenues. The supplemental appropriations amendment (SB2090/HB2139) includes funding that was not included in the budget the governor presented in March, which was based on earlier revenue projections.
Notable funding priorities in the governor’s budget amendment include:
• $71.3 million for disaster relief resulting from recent storms and flooding.
• $4.7 million for the Department of Intellectual Disabilities Services to restore residential rates.
• $1.9 million for mental health services for residents of Northeast Tennessee through the Mountain State Health Alliance.
• $8.5 million to restore previously scheduled rate reductions of 8.5 percent to mental health providers in TennCare.
• $5 million for payments to the Memphis Regional Medical Center, Nashville General Hospital and Jellico Community Hospital.
• $3.5 million additional for smoking cessation assistance in TennCare.
• $6.9 million grant for three programs at Meherry Medical College.
• $220,000 for first-year debt service on construction bonds for $22.6 million, 108-bed State Veterans’ Home in Clarksville.
• $2.5 million for the Civil Rights Museum in Memphis.
• $1 million recurring to limit the impact of the Hall Income Tax on eligible seniors 65 years and older, beginning in fiscal year 2012-2013.
• $19.9 million additional for lottery scholarships to fund students’ ability to utilize them during summer school.
• $5 million to the University of Memphis for operations on the Lambuth campus in Jackson.
• $21.1 million for state building maintenance, plus $1 million for a statewide capital improvements master plan for Higher Education and state facilities.
• $16.5 million for a potential major economic development expansion project.
The budget amendment assumes a reimbursement of approximately $82 million in Medicaid funding errors, which the federal government says is owed to the state. Several healthcare-related investments are contingent on receiving those funds, as well as higher education investments:
The General Assembly is expected to consider the budget this week.
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