NASHVILLE, Tenn. (AP) - Tennessee officials are reporting another month of year-over-year revenue growth in the face of the COVID-19 pandemic, putting year-to-date revenues for three months up by $447.4 million over what the state has projected.
Finance Commissioner Butch Eley announced Friday that October revenues were $1.2 billion, which is $38.2 million more than October 2019 and $134.8 million more than the state’s budget estimate. The growth rate for October was nearly 3.4%.
The state last registered a decline in revenues for June, with each month since showing growth year-over-year and compared to the budget estimate. October marked the third month in the 2020-2021 budget year on an accrual basis.
Eley has said that though the state is exceeding expectations, officials will continue to proceed cautiously. Eley said the state may still be showing numbers boosted by federal coronavirus assistance, with little clarity on whether Congress will pass a new stimulus package.
State departments will present budget requests next week. Gov. Bill Lee will then use those proposals to draft his own budget plan that the Republican will eventually submit to state lawmakers for their approval.
“A couple months don’t make a trend, but three months feels like we’re into a trend of positive,” Eley told reporters Friday. “We’ve got to remain cautious from a budget standpoint.”
October sales tax revenues were $110.6 million more than projected, with an October growth rate of about 5.8% and 3.7% year-to-date.
Additionally, the state’s funding board will meet later this month to reassess projections after fiscal year 2020 ended with higher than estimated revenues.
Lee is hoping to revive a handful of initiatives that were proposed, then had to be slashed earlier this year due to concerns of mass budget cuts caused by the COVID-19 outbreak, Eley said. This includes the possibility of restoring proposed teacher pay raises, economic development in rural regions and money for criminal justice reform policies.
The state has roughly $4.5 billion in reserves spread out in a variety of rainy day accounts, but Eley told reporters that he doesn’t believe the state will have to dip into them that much in the upcoming year – if at all.
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