According to the Knoxville News Sentinel Gov. Phil Bredesen proposes layoffs of up to 1,051 state employees and predicts $38 million in new revenue from tax law changes in a draft budget amendment prepared for delivery to legislators this week.
An outline of changes to the state budget also indicates that some harsh cuts feared in areas such as mental health and children's services will be avoided under the latest budget plan.
The governor anticipated a state revenue shortfall of about $1 billion when he initially proposed a state budget in March, but more recent estimates have increased the shortfall by an additional $200 million. At the same time, the state is receiving about $5 billion in federal stimulus funds over the next two years, most designated for specific purposes.
The News Sentinel obtained a draft copy of the administration's budget amendment overview on Tuesday. A finalized version is to be presented to the House and Senate Finance Committees today.
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