Senator Bo Watson Weighs in on State Budget Cuts

Governor Bill Haslam has ordered state agencies to cut spending by up to seven percent because of struggling revenues.

Senator Watson adds, "Seven percent of $32 billion … that’s close to three billion dollars. That’s a big hit."

However, Senator Bo Watson doesn’t feel cuts will be made across the board.

He adds, "It will be done very surgically.  I think what the governor is saying is everyone be prepared. It’s gunna be a tough budget year."

A reported $302.4 million revenue shortfall last year is what the Haslam administration is dealing with.

Senator Watson adds, "We feel like there are some key employers in the state who’ve made some adjustments that have affected the franchise and excise tax to where the state has lost revenue."

Senator Watson believes some key businesses moved across state lines in order to save money on taxes.

He adds, "That’s one of the challenges being a state that borders eight other states."

So, the Haslam administration will now be looking at tax policies, as well as home and car sales.

Senator Watson says, "And when all those things are clicking, our revenues are going to be fine. But if one of those lil cogs is off, then it challenges the government as it should."

We’ll see exactly what gets cuts when the 2015-2016 budget is approved next year.