NASHVILLE, Tenn. (AP) — Tennessee Gov. Bill Lee on Monday proposed infusions to more than $1 billion road projects to address the state’s $30 billion project backlog. .
The Republican governor’s budget proposal includes plans to shift around $1 billion in one-off state taxes and $80 million a year from tire sales tax. It’s two years after Lee and Republican lawmakers approved a similar $3 billion shift in general taxes to road funds covered by traditional gas taxes.
The Money for Roads is one of the most expensive items in Lee’s $59.5 billion budget proposal for the year that begins in July. Tennessee’s budget has become even tougher as tax revenues have slowed compared to the Covid-19 pandemic boom years.
“Safe and reliable roads are the state’s primary responsibility, but funds are limited to meet unlimited needs,” Lee said in a statement prepared during his annual state speech on Monday evening. I did.
Some budget lines were already filled Quick special session last month. Lee has convinced lawmakers to hand over $900 million initiatives from various pots of money. They include a massive expansion of Voucher Coupled with the bonus of public school teachers to help students attend private schools. Relief for areas that have been devastated by Hurricane Helen. Changes to support President Donald Trump’s administration Immigration deportation system plan.
Lee raised road construction as a priority in 2023 as his law included a $3 billion project and increased electric and hybrid fares. I opened the door again Express toll lanes are permitted on the expressway Through a public-private partnership that has not yet been implemented, as authorities are first considering it on Interstate 24 range from Nashville to the southeastern suburbs.
Tennessee isn’t alone. Similarly, many states are taking various measures to compensate for gas taxes. This is not keeping up with the road construction needed as more people drive electric vehicles and hybrids.
Democrats criticised Lee’s priorities, including nearly $2 billion in tax cuts and refunds passed last year. Republicans argued that taxes could spur more expensive lawsuits.
“The billion dollar handouts to people with private planes are their priority and not you,” Nashville Democrat John Ray Clemons said before his speech.
Meanwhile, Lee suggests overseeing $11 million for boys and girls clubs to help boost childcare programs, expanding eligibility for state programs that supplement childcare workers’ salaries. I did.
“Today, Tennessee’s early childhood care costs roughly the same prices as in-state tuition at four-year public universities,” Lee said. “That’s an insurmountable cost for the majority of moms and dads who want to join the workforce.”
Lee boasted that his proposal would lead to “tens of thousands of new daycare spots in rural and urban areas of Tennessee,” but provides additional details on how and when that goal will be achieved. I didn’t. He also did not specify who it would serve exactly. For example, many locations at the Boys and Girls Club in Tennessee only offer nursery services to children over the age of five.
In a speech Monday, Lee also proposed a $60 million fund to create a 0% construction loan to build a detached home. And while the governor’s budget doesn’t include the new Tennessee tax credit, Lee said he plans to fund a tax credit enacted last year that provides incentives to build affordable housing. I’ve said that.
“These are important steps and together, we should continue to look for more solutions that are financially responsible for ultimately addressing housing issues through innovation, not through regulations, but through financial institutions. That’s it,” Lee said.
Lee has proposed tens of millions more dollars to invest in nuclear power as well. In his plan, the state will donate $50 million to help Tennessee Valley officials develop it. Small modular reactor. Federal utilities have applied for a $800 million U.S. Energy Agency grant for the initiative.
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