Senate finance committee advances $59.8 billion budget after amendments; directs disaster relief, hospital and volunteer grants

The Senate Finance, Ways and Means Committee approved the fiscal year budget bill, Senate Bill 14-31, on April 15, 2025, recommending the measure for passage to the committee on the calendar. Leader Johnson moved the bill and the committee adopted three finance amendments before approving the Appropriations Act as amended, with the clerk recording seven ayes, two noes and one present-not-voting.

Why it matters: The Appropriations Act sets the state's spending plan for the next fiscal year and contains line-item changes negotiated between the administration and the legislature. Committee members said the amended package keeps the bottom line consistent with the governor's numbers while redirecting some proposed expenditures to priorities identified by legislative negotiators.

Leader Johnson, who presented the package to the committee, said the amendment follows negotiations with the administration and the House and that the legislative amendment "redirected $3,000,000 recurring and $141,400,000 nonrecurring" and otherwise reallocated funding to fit the legislature's priorities. He told the committee the package does not recognize potential new revenue from two pending bills (vape and hemp) and that those revenues would be carried forward, not booked in this year's budget.

Top-line and notable allocations - Budget scale: Committee discussion described the total appropriation as roughly $59.8 billion, with about $29.8 billion coming from state funds as reflected in the legislative amendment materials presented to members. - Disaster relief and preparedness: The legislative amendment earmarked $20 million (nonrecurring) from local match funds for FEMA disaster relief, $25 million (nonrecurring) for disaster relief in northeast Tennessee, and $1.2 million (nonrecurring) for flood preparedness. - Campus and public safety: The package included about $5.4 million (nonrecurring) for campus safety and security at the University of Memphis, $500,000 (nonrecurring) to establish and operate a UT law enforcement innovation center, and $400,000 (nonrecurring) for an East Tennessee regional forensic facility and training program. - Health care and hospitals: The amendment used $78 million from TennCare shared savings to "buy back" services previously paid for by the annual hospital assessment, described by the sponsor as making the total investment there "a little over a hundred million dollars." The bill also includes $4 million recurring to increase pediatric dental rates, $3 million nonrecurring for the adult health care safety net, and smaller nonrecurring grants including $500,000 for epilepsy services. - Education and workforce: The legislative amendment provided $1.4 million recurring for scholarships tied to a public-private medical-school early acceptance partnership and reallocated some teacher residency funding to other programs (see questions and concerns below). - Volunteer and local grants: The legislature created a $42.5 million competitive grant pool for local providers and volunteers: $20 million for volunteer fire department capital and equipment, $5 million for rescue squads, $5 million for emergency medical services, $5 million for senior centers, $5 million for local museums (capital), $2 million for courthouse restorations and improvements, and $500,000 for Second Harvest Food Bank.

Questions and concerns raised in committee Several senators pressed the sponsor and chair about cuts and redirections in the package. Senator Hensley asked why some grants and programs were eliminated or reduced; the sponsor said funds had been redirected to other legislative priorities. Senator Lamar expressed concern about reductions to some Memphis community-based violence-prevention programs and asked whether partial funding could be restored; the sponsor said existing state funding streams still serve many organizations and that an amendment would be required to change the budget.

Senator Yarbrough and others asked about the state's fiscal assumptions and the budget's sensitivity to national economic volatility. Committee leaders said the package used the governor's growth assumptions (roughly 2% in the presented materials) and that the committee did not recognize any additional new revenue in order to avoid overstating receipts.

Attorney General funding Members also questioned an increase of $4.5 million recurring for the attorney general's office. Senator Yarbrough asked about the rationale for the increase; the sponsor said it reflected the office's expanded role defending state actions, including constitutional litigation, and that the legislature had provided additional resources to support those efforts.

Procedure and next steps The committee adopted finance amendment 1 (the "stripper" amendment), finance amendment 2 (the administration amendment), and finance amendment 3 (the legislative amendment schedule), along with several amendment-to-amendment changes that the sponsor described as last-minute reconciliations between the chambers. After debate and recorded voting, the committee recommended Senate Bill 14-31 as amended for passage to the committee on the calendar. The bill will next be scheduled for floor consideration.

Ending Committee members said the calendar for the next days would focus on budget bills first and then the remainder of the finance calendar. The Appropriations Act and related budget measures were slated for floor consideration in the near term.