Press Release from State of Tennessee; April 15, 2011:
Based on some encouraging economic signs, the Tennessee State Funding Board is projecting modest growth in state revenues for the 2011-2012 fiscal year.
On Friday, the board estimated that overall state revenues will grow between 3.10 and 3.35 percent for the 2011-2012 fiscal year, which begins July 1.
The board projected that the growth rate for the general fund balance will be from 3.40 to 3.70 percent above the current fiscal year’s estimated general fund balance, which funds the largest portion of state government expenses.
For the current fiscal year, which ends June 30, the board projected that overall state revenues will be between 3.90 and 4.15 percent higher than the prior year’s revenues.
The board’s projections represent its consensus on the revenue forecast.
Earlier this week, board members heard presentations from economists, all of whom forecast some improvement in the economy in the months ahead.
Board members cited recent increases in sales tax collections as one clear sign the state’s revenue picture is improving.
The board’s revenue estimates are used by the governor, members of the General Assembly and their staffs for budget planning purposes.
Members of the board are Governor Bill Haslam, Comptroller Justin P. Wilson, Treasurer David H. Lillard Jr., Secretary of State Tre Hargett and Finance and Administration Commissioner Mark Emkes.