Tennessee Governor Bill Lee recently announced a significant new investment in infrastructure. The proposal involves injecting over $1 billion into road projects to tackle the state’s $30 billion backlog. This move is necessary as current gas taxes and fees fall short of meeting the funding required for these projects.
Governor Lee’s budget proposal includes utilizing nearly $1 billion in one-time, general state tax funds and reallocating $80 million annually from the sales tax on tires. This initiative follows a previous $3 billion shift of general tax money to roads funding that was approved two years ago under Lee’s administration. The budget proposal for the upcoming year, totaling $59.5 billion, emphasizes the crucial need for safe and reliable roads in the state.
With tax revenues impacted by economic slowdowns in the wake of the pandemic, Governor Lee highlighted the limited resources available to address the state’s infrastructure needs. The budget also includes initiatives from a recent special session, such as expanding vouchers for private school attendance, providing relief for areas affected by natural disasters, and supporting immigration enforcement efforts.
Governor Lee’s focus on infrastructure extends to supporting childcare programs through funding for the Boys and Girls Club. He aims to enhance access to quality childcare and improve childcare worker salaries, recognizing the financial challenges faced by many families in Tennessee. Additionally, the proposal includes creating a $60 million fund for 0% construction loans to build single-family homes and funding tax credits for affordable housing development.
These measures are part of Governor Lee’s comprehensive approach to addressing critical infrastructure and social needs in Tennessee, signaling a proactive stance towards improving the state’s overall well-being.
“Looking for more solutions that are fiscally responsible to finally address the issue of housing – through innovation, not through regulation,” Lee said. Lee is proposing tens of millions of dollars more to invest in nuclear energy, as well. In his plan, the state would contribute $50 million to help the Tennessee Valley Authority develop a small modular reactor. The federal utility has applied for an $800 million U.S. Department of Energy grant for the initiative.
