Finance commissioner outlines FY26 budget plan: $58.4 billion, $1 billion for roads and $930 million in proposed bonds

Tennessee Commissioner of Finance and Administration Jim Bryson presented the Lee administration’s FY26 budget overview to the House Finance, Ways and Means Committee, saying the plan relies on an estimated $58.4 billion in total revenues and a 2% tax-growth assumption.

Bryson said the administration expects “some growth in this year's… taxes of about 2% … which will account for about $540,000,000 of new recurring dollars.” Commissioner Jim Bryson, Commissioner of Finance and Administration, introduced the budget and the staff who will answer questions: David Thurman, director of the budget office, and Alex Schumann, assistant director.

The administration framed the FY26 proposal as a smoothing exercise that uses recurring revenue reserved in stronger years to pay nonrecurring needs now. Bryson told lawmakers the state used recurring dollars for one-time projects in recent high-growth years and reserved those nonrecurring outlays so the funds would be available again when growth slowed. “We are in the position we are in today because of the wise stewardship of our funds by the general assembly,” he told the committee.

Most important elements of the FY26 presentation

- Revenues and assumptions: The administration projects modest revenue growth and expects total FY26 revenues near $58.4 billion after a decline in federal COVID-related funding. The 2% tax-growth…