Members of the Tennessee General Assembly are on the frontlines when they try to pass state budgets as they wait to see how cuts in federal program funding will affect the state. (Photo: John Partipilo/Tennessee Lookout)

As the Tennessee Legislature prepares to postpone this week, lawmakers are running to hand over the budget, putting their own stamp on the state’s budget despite being hampered by federal cuts eating up spending plans.

Republican chairs on the House and Senate Treasury Committee remain uncertain about the impact of the $24.5 billion cuts states will receive from the federal government.

Similarly, Democrats are hoping to use Gov. Bill Lee’s administration as clues to federal cuts that could affect the proposed $59.6 billion spending plan.

With federal funds accounting for almost 42% of the state’s budget, Democrats sent a letter Monday to inform him that lawmakers need to “predict current cuts and forecast cuts” to make decisions.

The federal fund accounts for 93.4% of human services funding, 78.4% of military departments, 61% of Tencare Department, 51.5% of transportation departments and 57.8% of health departments.

“Understanding the depth and scope of these changes is essential not only for budget accuracy, but also for predicting the impact on essential services and public trust,” said a letter signed by House and Senate Democrats.

The Financial Management Department did not immediately answer any questions.

House Finance Committee Chairman Gary Hicks said this week he has been hearing ongoing budget cuts coming from Washington, D.C., but he couldn’t identify any large items, but he said cuts have been made in several areas, including the Department of Health, forcing them to find funds to continue the program. Lawmakers put $4 million into the county health department on Monday to compensate for cuts in grants from the Centers for Disease Control.

When lawmakers began adding their own touches to their budget on Monday, they removed tens of millions of people from the governor’s proposal and added $3 million to an audit of Memphis-Shelby County schools.

“We’re all looking at what the federal government does because frankly, we don’t know what it looks like,” Hicks said. “I certainly support what they’re doing there by trying to cut where they need it. So we can push our nose into the glass like everyone else and see how it affects them (states).”

Similarly, Senate Treasury Chairman Botson said cuts have come in several areas, from the Department of Human Welfare to the Department of Education, but predicted lawmakers would not know the scope of the cuts before Congress postponed.

“No matter what’s going on at the federal level, we have to move forward,” said Watson, a Hixon Republican. “Hopefully we can budget this week.”

Tennessee lawmakers have spoken about “contingency” in cases of major cuts, but there is no “formal plan” to address them, Watson said.

Amid a cut from the Trump administration, East Tennessee’s Second Tennessee Harvest Food Bank cancelled more than £377,000 in food, over $722,000 due to funding suspensions, according to Democrats.

The Ministry of Health has terminated its Sexually Transmitted Diseases (STI) Surveillance Contractors. This is a move that will lead Metronashville to lawsuits.

Tenncare, the state’s Medicaid program for 1.7 million low-income people, was able to see the funding gap as the federal game expired.

Additionally, state residents are likely to see cuts in energy aid, which could affect 1,000 households in eastern Tennessee, according to a Democrat letter.

Federal Funding Letters from Leaders