Tenn. Funding Board projects lower growth in 2015

NASHVILLE, Tenn. (AP) – The State Funding Board projects that Tennessee revenue growth will slow down in the upcoming budget year.

Under revenue estimates adopted by the panel on Tuesday, the state’s general fund would grow 2.6 percent to 3 percent in the budget year that begins on July 1. That compares with a revised projection for the current budget year’s collections to grow 3.85 percent to 4.2 percent.

At the top of the range of the projections, the state’s general fund would grow by $409 million in the current budget year and by $304 million in the next.

The Revenue Department estimates that the phase-out of the state inheritance tax will cause those collections to be $34 million next year, down from $107 million in the 2013-2014 budget year.