Capital projects, sales tax holiday: $42.6B Tennessee budget

NASHVILLE, Tenn. (AP) – Tennessee’s upcoming state budget is one signature by the governor away from becoming law, including a one-week sales tax holiday on restaurants, bars and groceries, an infusion of cash into capital maintenance and improvements, and a big paydown into the state’s retirement system. The Republican-dominated Legislature passed the budget Thursday, touting it as a conservative investment during a time of much-better-than-expected revenues during the COVID-19 pandemic. Democrats criticized the proposal on several fronts, including funding for K-12 schools and teachers that they say comes up well short of what’s achievable when the state is flush with cash.

By JONATHAN MATTISE

Associated Press