Bailey Said State Preparing Budget To Protect Against Virus

State Senator Paul Bailey said the legislature wants to make sure it puts safeguards in place for longer term impacts from the coronavirus.

State department heads have made more than 400 million dollars in cuts to the state budget first proposed by Governor Bill Lee earlier this year.

“Tennessee derives most of its revenue from sales tax and obviously, when you have your major cities like Nashville shutting down so our revenue streams are going to be diminished over the next few weeks while we work through this,” Bailey said. “That’s another reason that we made drastic cuts to the budget. Move that money over into the rainy day fund and and basically just preparing in the event that we have a, you know, a prolonged shut down due to this coronavirus.”

Governor Lee proposed a $350 million contribution to Tennessee’s rainy day fund Wednesday to protect the state’s economy. Legislators are trying to get a budget passed and leave Nashville because of the ongoing health concerns.

Bailey said if the coronavirus slowdown eases in the coming months, the legislature could reconvene later this year and move that money.

“If the legislature reconvenes at a later date, some of that money could be used to maybe fund some of the other projects that that we we had originally or the governor had originally planned on funding,” Bailey said. “But in the event that the economy completely tanks, you know, the administration has protection.”

In addition to business shutdowns in Nashville, the hardest hit Tennessee community with 58 coronavirus cases, Bailey said tourism statewide will affect sales tax revenues.

“We had a huge hit to the number of conventions coming just to Nashville,” Bailey said. “And just today. Opry Mills Mall has announced that it’s going to be closing.”

Bailey said the rush to complete the budget has been eased because much of the groundwork had already been laid. However, he said the governor’s staff has worked hard identifying cuts.

“But at the same time, we’re basically going to meet the deadline and adjourn a recess either Friday or Saturday,” Bailey said.