Lee Proposes Spending $83M To Fund Tennessee Airports

Image Credit: Gov. Bill Lee / Facebook

The Center Square [By Jon Styf] –

Tennessee plans to spend more than $83 million next fiscal year funding infrastructure at the state’s airports, according to Gov. Bill Lee’s budget amendment released Tuesday morning.

The funding is part of a final $56.2 billion state budget, which matches the $56.2 billion in this year’s budget only with less federal funding included. The state is proposed to expend $30.5 billion next fiscal year compared to $26.9 billion this year.

The state airport funding has risen as the state aviation fuel tax has been capped. Before the cap was put in place, FedEx paid $32 million in annual aviation fuel tax by itself. But the cap has dropped to $5 million annually per company and the state expects to collect just $26.3 million in total aviation fuel tax next year.

That will lead the state to spend $83 million of its funds supporting the airports, which Senate Finance, Ways and Means Committee Chairman Bo Watson explained was the state’s plan.

The budget amendment indicates Senate Bill 626 will be amended to cut an additional $2.6 million in aviation fuel tax through a lowered fuel tax cap.

“Our goal is to better fund our airports,” said Tennessee Finance and Administration Commissioner Jim Bryson, who presented the proposal to the Senate Finance, Ways and Means Committee on Tuesday morning.

The budget amendment also proposes to use $29 million for health care programs that formerly were funded federally but Bryson explained the state will no longer fulfill the federal requirements to receive those funds. Those include the state’s HIV surveillance and prevention program ($9.8 million), Title X program ($9.3 million) and Ryan White Program ($10 million) to support those with AIDS.

Sen. Jeff Yarbro, D-Nashville, questioned while the state would be paying general fund dollars for what “federal tax dollars should be paying for.”

Lee’s amendment also included a proposed $250 million deposit into the state’s rainy day fund to increase the balance to more than $2 billion, a progressive increase from the $1.2 billion balance of the fund in fiscal year 2019-20.

About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.

One thought on “Lee Proposes Spending $83M To Fund Tennessee Airports

  • April 8, 2023 at 3:32 pm
    Permalink

    No
    Those who purchase tickets should pay a user fee.

    Reply

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