Tennessee finance chief previews FY‑26 plan: $1 billion for roads, education boosts and $17 billion in reserves not stated but budget totals discussed

Commissioner Jim Bryson, Commissioner of Finance and Administration, told the House Finance, Ways and Means Committee that Tennessee’s proposed FY‑26 budget assumes modest tax growth, taps prior-year recurring funds for one‑time needs and includes new investments in roads, education, higher education and public safety.

Bryson said the administration is using a conservative 2% tax‑revenue growth target set by the funding board and expects federal revenues to fall as COVID emergency funding ends. "Because of this decline in federal funding, total revenues for the FY‑26 budget are expected to be slightly lower at approximately $58,400,000,000," Bryson said. He added that state tax revenues are "now growing slightly," producing an estimated $540 million in new recurring dollars under the growth assumption.

The nut of the presentation was how the state smoothed revenue by using recurring receipts for one‑time investments in prior years. Bryson noted that during high growth years the administration and the General Assembly intentionally spent recurring funds on…