Gov. Haslam gives annual State of State address, talks gas tax increase
NASHVILLE, Tenn. — Gov. Bill Haslam on Monday addressed the 110th General Assembly in his seventh State of the State address.
“Thanks to the hard work of so many Tennesseans, I believe the state of our state has never been better,” Haslam said.
In a speech that lasted around 45 minutes, Haslam highlighted the economic growth and accomplishments of the Volunteer State.
“This year, the amount of new recurring revenue is $957 million, double the amount we usually receive,” Haslam said. “Tennessee’s median household income has grown at the second fastest rate in the country.”
The governor also introduced a new form of revenue — increasing the tax on gas.
“With the IMPROVE Act, we are proposing to increase the gas tax 7 cents and the diesel tax 12 cents per gallon, and all new revenue goes only to address our transportation needs,” Gov. Haslam said.
The governor said this is the best idea because a gas tax is one form of revenue that does not have inflation built into it.
He also proposed cutting major business taxes.
“I am confident that this tax cut will mean more jobs for Tennesseans in the future,” Haslam said.
He also wants to cut the grocery tax. “This new tax cut will save Tennesseans $55 million annually on their grocery bills.”
But the major announcement of the night focused on education.
“I am proposing Tennessee become the first state in the nation to offer all adults access to community college free of tuition and fees,” Haslam said.
The governor did not stop there. He introduced “Tennessee Strong,” which will offer free education to those who served in the Tennessee National Guard.
Other highlights from his speech include raises in teacher salaries, increased test scores and bringing the state’s rainy day fund to an all-time high of $8 million.
Haslam also announced for a second year in a row the state budget does not take on any new debt.
