Tenn. ends budget year with $42M surplus

Tenn. ends budget year with $42M general fund surplus, sales tax collections up by 1.9 percent

Associated Press

NASHVILLE, Tenn. (AP) -- Tennessee has finshed the budget year with a $42 million general fund surplus.

Tennessee collected $342 million more than originally projected by the State Funding Board for the 2012-2013 budget year, but the panel revised that prediction upward by $306 million in December. Collections still came out above those estimates.

Over the course of the budget year, sales taxes grew by 1.8 percent and corporate taxes increased by 9 percent.

Gov. Bill Haslam's office did not immediately respond to questions about what he planned to do with the extra money. The Republican's administration chose to bank most of the $333 million surplus the state collected last year, despite calls by Democrats to use the money to defray tuition increases or reduce the state's sales tax on groceries.

View Comments (4)