Gov. Haslam tells Tenn. agencies to plan for cuts
NASHVILLE, Tenn. (AP) Republican Gov. Bill Haslam is calling on all state agencies to plan for up to 7 percent spending cuts in the upcoming budget year.
The Chattanooga Times Free Press reports the move comes following a spending year in which revenues fell more than $300 million short of projections, leading the governor to cancel planned raises for state workers and teachers.
The actual amount of any potential cuts for the upcoming budget year will depend on whether revenues rebound and on the governor's spending priorities.
Haslam recently traveled to meet with bond rating agencies in New York to tout Tennessee's fiscal strength. He said the agencies expressed concern about flagging corporate tax collections.
The governor said a recent decline in business taxes is due to overpayments the previous year.