FISCAL YEAR 2021 RECOMMENDED BUDGET :nt of ?nance Administration FY21 Budget Highlights • Revenue Reserve Investments and Local Government Support • Investing in Our Teachers • Expanding Access to Mental Health Services • Improving Access to Healthcare • Supporting Safe Communities • Supporting Rural Communities • Capital and Deferred Maintenance 2 $40 Billion Milestone • Strong revenues from a favorable economy. • Reductions in professional privilege tax. • Efficiencies from a review of current operations. • Use of existing state positions. • Strategic investments. • Savings in the Rainy Day Fund. 3 FY21 Budget Overview Revenues & Expenditures Available Revenues Cost Increases Recurring Non-Recurring $917,383,200 $1,238,159,800 ($1,007,394,700) ($1,242,617,100) Budget Reductions $91,520,000 $5,325,500 Balance $1,508,500 $868,200 4 Billions Comparison of Funding (billions) $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 $38.2 $39.3 $6.1 $6.1 $40.8 $6.1 $14.2 $14.2 $14.6 Other Federal $17.9 $19.0 $20.1 FY19 Budgeted FY20 Budgeted FY21 Recommended State 5 Reserve Revenues and Local Investments K-12 Mental Health Trust Fund Local Government Grants – Counties Local Government Grants – Cities & Towns Rainy Day Fund Transportation Equity Fund Volunteer Public Education Trust Fund Total $250,000,000 $50,000,000 $50,000,000 $50,000,000 $30,000,000 $15,000,000 $445,000,000 6 K-12 Education Teacher Compensation Literacy Initiatives BEP Full Funding Student Choice Initiatives Leadership Initiatives Other Education Investments Education Total $117,360,000 $70,550,000 $65,881,000 $64,380,100 $46,669,200 $34,116,500 $398,956,800 7 Higher Education Salary Funding Outcome Funding Formula – Fully Funded TSAA Awards Campus Security Veteran Reconnect Grants Mechatronics Other Higher Education Investments Higher Education Total $39,318,000 $38,000,000 $9,600,000 $7,000,000 $1,000,000 $1,000,000 $43,399,600 $139,317,600 8 Mental Health & Substance Abuse Services Children’s Behavioral Health Safety Net School Based Behavioral Health Liaison Substance Abuse Treatment Services Statewide Residential Recovery Court Addiction Recovery Program Enhancement Creating Homes Initiative Other Mental Health & Substance Abuse Services Mental Health & Substance Abuse Services Total $7,571,800 $3,014,300 $6,000,000 $4,687,500 $4,000,000 $3,583,400 $4,002,200 $32,859,200 9 Health and Social Services TennCare – Medical Inflation TennCare - ECF CHOICES – 2,400 New Enrollees TennCare – Postpartum Extension Pilot DCS – Custody Services Growth DCS – Multi-Systemic Therapy for Juvenile Justice Health – Safety Net Expansion Health – Project Access Other Health & Social Services Investments Health & Social Services Total $90,847,800 $35,575,700 $6,644,700 $16,779,700 $1,500,000 $6,500,000 $1,000,000 $73,874,800 $265,581,900 10 Department of Correction Private Contract Services Hepatitis C Treatment Salaries for Probation & Parole Officers Correctional Education Investment (with TCAT’s) Mandatory Re-Entry Supervision Day Reporting & Community Resource Centers Other Department of Correction Investments Department of Correction $28,034,800 $10,000,000 $9,995,100 $8,998,000 $4,644,000 $4,601,400 $48,842,300 $115,115,600 11 Judicial Support & Public Safety TBI – 25 Additional Field Agents Safety – 10 Additional Troopers Safety – New Emergency Dispatch System TEMA – Information System & IT Infrastructure TEMA – New Chattanooga-based Region Other Judicial Support & Public Safety Investments Judicial Support & Public Safety Total $5,565,100 $1,514,000 $3,575,000 $1,561,500 $1,550,500 $38,955,900 $167,194,100 12 Business and Rural Development ECD – FastTrack ECD - Broadband ECD – Rural Opportunity Fund ECD – Launch TN Grants Agriculture – TAEP & AEF Grant Programs Tourism – Marketing Initiatives Other Business and Rural Development Investments Business & Rural Initiatives Total $90,000,000 $25,000,000 $20,568,200 $3,000,000 $9,000,000 $8,000,000 $55,406,300 $210,974,500 13 Information Technology and Security Labor – Unemployment Benefits & Tax System Environment – Modernization & Upgrades Health – EPI Phase II Revenue – TR3 TBI – AFIS Upgrade Statewide - Security Enhancements Statewide - Cloud Enablement & Management Other Information Technology Investments Information Technology Total $41,795,000 $15,000,000 $15,000,000 $10,000,000 $6,000,000 $5,763,600 $3,300,000 $6,941,400 $103,800,000 14 Capital Investments Improvement Maintenance State Buildings – 11 Projects $27,470,000 $0 Higher Education – 4 Projects $159,072,500 $0 Emergency & Contingency Funds $5,000,000 $0 AWS Project Funding $5,000,000 $0 State Buildings – 51 Projects $0 $38,671,400 Higher Education – 46 Projects $0 $59,075,900 Capital Investments Total $196,542,500 $97,747,300 15 Agency Maintenance Funds: Projects <$100,000 State Parks Higher Education General Services – Statewide Military Armories Maintenance Mental Health & Substance Abuse Services Intellectual & Developmental Disabilities Agency Maintenance Funds Total $18,000,000 $10,000,000 $10,000,000 $1,000,000 $250,000 $210,900 $39,460,900 16 Record Rainy Day Fund (millions) $1,400 $1,200 $1,100 $1,000 $800 $800 $600 $1,150 $875 $668 $453 $400 $284 $306 FY11 FY12 $456 $492 FY14 FY15 $568 $356 $200 $0 FY10 FY13 FY16 FY17 FY18 FY19 FY20 FY21 17 FY20 Supplemental Appropriations Correction – State Prosecutions $33,244,500 Special Litigation $10,900,000 Health – Ryan White HIV/AIDS Program $8,000,000 Agriculture – Agriculture Enhancement Fund $7,500,000 Bethel University $5,000,000 TBI – Operational Support $4,100,000 Environment – Clean Water $3,242,300 Highway Patrol & TLETA – Operational & Training Vehicles $1,468,200 Treasury – Electronic Indigency $500,000 General Services – Facility Assessment for TSU $228,300 Total Supplementals $74,183,300 18 In Conclusion … • 3.7% growth in budget. • K-12 Mental Health Trust for long term sustainability. • Strategic reductions totaling $91.5 million recurring. • Professional privilege tax reduced by 50%. • No new debt. 19