In Brief…
Preview of issues expected to headline 113th General Assembly
Upon completion of organizational tasks, the General Assembly will get to work on issues facing Tennessee.
Budget
Passing a balanced budget is the most important Constitutional duty of the Tennessee General Assembly and its only required task. The state is in great financial condition despite challenges including inflation, which is impacting not only Tennessee, but the entire country and world. For fiscal year 2022-2023, the state’s Funding Board is projecting a growth rate of 7.2%-7.7% while estimates drop to between 1.25% and 2.25% for fiscal year 2023-2024. Governor Lee and lawmakers will build this year’s budget utilizing these estimates. Tennessee has a proud tradition of being a fiscally conservative state that is well managed with the lowest possible tax burden to residents. The AAA-ranked Volunteer State is the least indebted state in the nation per capita and is the number one state for fiscal stability. Tennessee also is one of only five states without road debt and ranks in the top 3 of states for best-funded pension plans. Expect the 2023/2024 budget to reflect these conservative values.
Transportation
Tennessee’s transportation system will be a major issue addressed in the 113th General Assembly. As Tennessee continues to grow, its transportation infrastructure needs are also growing. Governor Lee has announced plans to work with the General Assembly to develop a long-term plan to invest in Tennessee’s transportation network in both rural and urban areas to provide more opportunities and a higher quality of life for Tennesseans.
The Tennessee Department of Transportation (TDOT) has highlighted a clear need for the state to take major action to meet the demands of a growing list of transportation projects. TDOT has identified a $34 billion need for infrastructure projects across the state. Currently, Tennessee’s investment in transportation falls well short of this need and spends $1.2 billion annually to maintain current infrastructure, with about $500 million allocated for new construction projects.
TDOT has highlighted three main challenges facing Tennessee’s transportation system: congestion, delivery, and workforce. Proposals to help solve these issues include:
● Building “Choice Lanes” through public private partnerships that offer more options to drivers to avoid traffic congestion
● Increasing the utilization of alternative delivery models to improve the delivery of projects 30-50% faster than the traditional model
● Improving pay for TDOT workers
● Raising the state registration fee on electric vehicles from $100 to $300 per year to help offset future revenue losses as electric vehicle adoption increases.
The Senate Finance Ways and Means Committee and the Transportation and Safety Committee will look at the various needs of TDOT and weigh options of how a long-term, strategic plan can ensure Tennessee is able to meet growing infrastructure needs while also maintaining conservative fiscal management of taxpayer dollars.
Department of Children’s Services
Another top issue of the 2023 legislative agenda will be improving services, facilities, and record-keeping technology at the Department of Children’s Services (DCS), which is facing considerable challenges, including staffing shortages and housing facility needs. An audit by the Tennessee Comptroller found that “the safety, permanency, and well-being of Tennessee’s most vulnerable children is in jeopardy” by the department’s failure to address ongoing needs. The three main findings of the audit were issues with staffing, child placement, and repeat historical audit findings. DCS has requested a $156 million budget increase for the 2023/2024 fiscal year to increase salaries for DCS case managers; update the Tennessee Family and Child Tracking System (TFACTS); and improve foster care, residential services, prevention services, and adoption services.
Abortion Laws
On June 24, 2022, the United States Supreme Court overruled Roe v. Wade in Dobbs v. Jackson Women’s Health Organization. This action returned abortion law to the individual states and triggered Tennessee’s Human Life Protection Act into effect. Almost immediately, Tennessee became one of the most pro-life states in the nation. Tennessee’s law currently provides the strongest possible protections for the unborn by outlawing abortion in Tennessee except when the life of the mother is at risk. A violation of this law punishes the abortionist, not the mother, with a Class C felony.
Because the Dobbs decision returns abortion law to the states, it is likely many pieces of legislation will be filed on the subject by members of both parties. Lawmakers are expected to examine all aspects of Tennessee’s abortion law in the 2023 legislative session to determine whether any clarifications or changes need to be made.
Criminal Justice Reform
In 2023, the General Assembly will continue its efforts to be tough on crime and keep dangerous criminals off the streets. The September 2022 Memphis murders were committed by two criminals released early from their prison sentences. Following those murders, the Senate and House Speakers appointed the Joint Ad Hoc Committee to Review the Adequacy and Supervision, Investigation and Release of Criminal Defendants. The Committee will make legislative recommendations which could include expanding the 2022 Truth in Sentencing law to ensure that sentence credits are only awarded to inmates who have demonstrated good behavior and worked towards rehabilitation; and that violent, dangerous criminals with serious disciplinary infractions serve 100% of their full sentence.
Education
Third Grade Literacy and Retention – A 2021 law passed during a special session on education, ensures students can read at a third-grade level before moving on to the fourth grade. Concerns have risen from school districts about the lack of control at the local level. The General Assembly may look to build upon the changes made to literacy instruction for children in early grades and address concerns about third grade retention requirements.
Education Savings Accounts -- Another potential focus of the General Assembly this year is expected efforts to expand the state’s Education Savings Account program, which was established in 2019 to serve low-income students zoned in Metro Nashville, Shelby County and the state’s Achievement School District (ASD). The program is part of the Lee administration’s efforts to improve education opportunities for students, focusing on providing parental choice in school districts that have the state’s highest concentration of poverty and priority schools, which are schools most in need of support and improvement.
