February 8, 2024

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TRUMP FUNDRAISES IN NASHVILLE

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SUPER BOWL LOCALS

FEBRUARY 8, 2024 | VOLUME 36 | NUMBER 5

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How long can the city-state détente last? BY STEPHEN ELLIOTT

Gov. Bill Lee giving the State of the State address on Monday

PHOTO BY MATT MASTERS

Flattened revenue growth, corporate tax refund headline Lee budget proposal BY STEPHEN ELLIOTT

Gov. Bill Lee on Monday delivered his annual State of the State address to gathered lawmakers, with his 2024-25 budget proposal defined by more than $1 billion in planned tax refunds for corporations and a projection that years of annual revenue growth have come to an end. The governor’s most significant policy proposal for the year is his Education Freedom Scholarship Act, unveiled late last year. The program would fund voucher-like scholarships for up to 20,000 Tennessee students next year, with unlimited growth

planned for the years to follow. The program is expected to trigger substantial debate among lawmakers and could see changes from Lee’s initial proposal. The overall spending plan totals $52.6 billion, down from $62.5 billion in the current year. State officials said the decrease was due to expiring federal funds stemming from COVID-19 response and infrastructure spending, plus a drop in one-time state funds. “I’ve got three years left, and yet there is a lot to do. We’re not slowing down – not for a

second,” Lee said. “So, in 2024, and frankly for the remainder of my time in office, I believe our job is to fortify that which has been built over the years, and to remember the work it took to get here.” Jim Bryson, commissioner of the Tennessee Department of Finance and Administration, said Monday that the state has gone “from high growth to basically no growth” and is “facing significant financial challenges.” He credited “conservative fiscal management” for helping the state stave off unplanned budget cuts or >> PAGE 2

They’re talking the talk, at least. Leaders at both the Metro Courthouse and the state Capitol just down the street are saying nice things about one another, promising to put their tense past in the past. “Right now I’m encouraged by at least the spirit and tone of conversations,” says Mayor Freddie O’Connell, who last year inherited a Metro government embroiled in legal and political battles with the state government. Adds House Speaker Cameron Sexton: “We’re working with Mayor O’Connell. I think he’s doing a wonderful job. We’re probably not going to agree on a lot of different policies, but as long as we can continue to have a conversation, we’ll be happy, and that’s what we’re doing right now.” Sexton, a Crossville Republican, presided over a 2023 session characterized in part by attacks on Metro governance — from cutting the size of the Metro Council in half to taking over the board that oversees the Nashville International Airport to easing the path for NASCAR’s return to The Fairgrounds Nashville. O’Connell and Sexton have met to discuss shared priorities, and both mention — unprompted — the East Bank as a possible area of positive collaboration. The tension, of course, did not begin in 2023. In 2022, the Metro Council (with O’Connell then a member) opted not to support a bid to host the 2024 Republican National Convention in Nashville. That move infuriated key Republican leaders in state government and seems to have poured gasoline on the fire. But fights between the city and state long predate the RNC vote, with the state legislature cracking Nashville’s congressional district into three pieces months before the vote, plus a string of earlier preemption moves. Maybe Republicans at the state got all their anger out last year. Maybe they saw mounting losses in court as a sign. Or maybe they’re simply ready to turn a new page when it comes to the capital city. But at least so far, there doesn’t seem to be >> PAGE 2

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February 8, 2024 by FW Publishing - Issuu