Pinching Pennies

Photo: tnhistoryforkids.org

As the legislative sessions draws to a close in Nashville, Tennesseans are reminded of the balanced budget requirement, as stated in the Tennessee constitution.  Having said that, lean times could be ahead in the Volunteer State, as Governor Phil Bredesen will be forced to deal with declining sales tax revenues. The latest from Metro News…

 Tennessee’s revenue situation is going from bad to worse as tax collections continue to slide.  April sales tax revenues  came in more than ten-percent less than the same time last year.  That marks eleven straight months of sales tax declines over the previous year.  The state’s top economists tell members of the Tennessee Funding Board that revenues for the current fiscal year that ends June 30th will be between 81 and 180-million-dollars below the projections in Governor Phil Bredesen’s budget.  It’s unclear how much will need to be cut from the budget or where the money will come from.  Finance and Administration Commissioner Dave Goetz says K-through-12 and higher education will be spared from cuts.  That’s because of funding requirements to receive federal economic stimulus money.