Tennessee Governor Continues Trend of Underfunded Schools

Andy Spears
3 min readMay 14, 2021

Erik Schelzig in the Tennessee Journal’s On the Hill blog notes that Tennessee’s April revenues were $600 million more than the budgeted estimate.

Go ahead, read that again. In one month, the state collected $600 million more than planned.

Here’s more from Schelzig:

Tennessee’s general fund revenue collections were nearly $600 million above estimates in April, bringing the state’s surplus to $1.9 billion through the first nine months of the budget year.

So, with three months left in the fiscal year, the state is nearly $2 billion ahead of where it planned to be. Even if the surpluses drop off, the state is well on its way to a surplus significantly in excess of $2 billion.

To put this in perspective, the state is $1.7 billion behind where it should be in terms of funding public schools according to a bipartisan legislative commission.

For further perspective, the April surplus alone is three times what Gov. Bill Lee allocated in new education funding for the entire 2021–22 fiscal year.

Tennessee policymakers, who recently adjourned their legislative session, could have paid for at least a third of the school funding shortfall with JUST the April surplus. Of course, that would assume these lawmakers are serious when they say they want to fully fund schools.

To be clear, making even a $600 million down payment on the necessary investments in schools would leave the state with a surplus approaching $1.4 billion and three months left in the budget year.

When all is said and done for the year, it is likely the entire $1.7 billion education funding deficit could be made up and the state would have half a billion dollars or more for savings and other expenses or projects.

For further clarity, not a single Tennessee taxpayer would see any tax increase if schools were funded from this surplus. In fact, it is very likely that a state investment in schools that would make up for the current funding shortfall would actually help local governments keep property taxes low.

This year, groups that typically stay out of the school funding fight like the Nashville Public Education Foundation and the League of Women Voters got involved and urged Lee and lawmakers to make use of this historic surplus to make significant new investments in public education…

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Andy Spears

Writer and policy advocate living in Nashville, TN —Public Policy Ph.D. — writes on education policy, consumer affairs, and more . . .