NASHVILLE, Tenn. — Tennessee Gov. Bill Lee on Monday proposed an injection of more than $1 billion into road projects in an effort to address the state’s $30 billion projects backlog, which will again need more than what gas taxes and other fees can provide.
The Republican governor’s budget proposal includes nearly $1 billion in one-time, general state tax money and a plan to shift $80 million annually from the sales tax on tires. It comes two years after Lee and Republican lawmakers approved a similar $3 billion shift of general tax money to roads funding, which is traditionally covered by gas taxes.
The money for roads is one of the big-ticket items in Lee’s $59.5 billion budget proposal for the year that begins in July. Tennessee’s budget has become tighter because tax revenues have slowed compared with the boom times that took shape during the COVID-19 pandemic.
“Safe, reliable roads are a primary responsibility of the state, yet there are limited funds to fulfill an unlimited need,” Lee said in prepared remarks during his annual State of the State speech Monday evening.
Some parts of the budget were already filled in after a quick special session last month. Lee convinced lawmakers to pass more than $900 million worth of initiatives from different pots of money. They include a huge expansion of vouchers to help students attend private school, coupled with public school teacher raises; relief for areas devastated by Hurricane Helene; and changes to help President Donald Trump’s administration with its immigration deportation crackdown plans.
Lee elevated roadwork as a priority in 2023, when his legislation included a $3 billion infusion f