Budget Overview Fiscal Year 2022-2023

1 Budget OverviewFiscal Year Revenues - Increase / (Decrease) Base Increase - FY 2021-2022 Revised Recurring Estimate at Growth2,870,600,000$ -$ -$ 2022-2023 Department of Revenue Growth at ,500,000 4,700,000 - State Premiums20,000,000 - - Premium Tax22,380,500 - - Property Accounting Change7,500,000 - - Continuation - Hospital Coverage, Nursing Home Bed, and Ambulance Service Assessments- - 754,597,700 Fund Inspection Act - Adjustment1,600,000 - - Plate Production - Adjustment- - 1,500,000 Sports Authority Debt Service - Adjustment360,400 - - Funds at June 30, 2022 Surplus from FY 2020-2021 Closing - Available at June 30, 2021- 2,320,577,500 - 2021-2022 Tax Revenue Base Increase at Growth- 2,870,600,000 - Unbudgeted FY 2021-2022 Revenue Growth Available at June 30, 2021-2022 Other State Revenue - Insurance Premiums- 20,000,000 - 2021-2022 Unclaimed Property Accounting Change- 7,500,000.

2 FY 2021-2022 Supplemental Appropriations- (912,023,100) (1,250,000) of Recurring Debt Service Requirements24,400,000 - - 2021-2022 Enacted Budget Available Funds234,744,340 17,362,140 - Revenue - - 106,110,100 Adjustment(40) (40) - Total Available Revenues3,553,085,200$ 4,328,716,500$ 860,957,800$ Increases - Expense / (Savings)State 's services 72,342,700$ 655,000$ -$ 95,632,100 5,369,800 - and Community Development44,095,600 102,000,000 - 1,014,545,300 (31,700,000)

3 - and Conservation6,849,500 115,521,900 - and Administration2,743,100 175,300,000 - ,841,100 11,868,000 320,800 Education 215,460,500 342,989,000 88,618,000 and Developmental Disabilities63,907,200 750,000 - Health and Substance Abuse Services26,765,700 200,000 - ,428,000 5,878,400 - ,924,600 186,350,600 - ,676,700 (7,823,800) - Bureau of Investigation9,531,200 14,641,300 - ,500,000 623,000,000 - Agencies124,286,300 437,537,600 17,421,300 Subtotal State Agency Cost Increases2,050,529,600$ 1,982,537,800$ 106,360,100$ State Employee Salary Policy and Benefits for Performance Funding Pool - TEAM Act Agencies64,364,000$ -$ -$ the Board Funding Pool - Non-TEAM Act Agencies15,400,000 - - Rate Adjustment120,000,000 - - Health Insurance Rate Increase15,262,900 - - Retirement Rate Increase 21,299.

4 600 - - Enhanced State Match- 48,300,000 - Subtotal State Employee Salary Policy and Benefits Contribution236,326,500$ 48,300,000$ -$ Capital Buildings-$ 1,435,041,000$ -$ Education- 856,210,800 - Strategic Initiative - 250,000,000 - Buildings- 166,747,500 - Education- 48,044,000 - Subtotal Capital Outlay Cost Increases-$ 2,756,043,300$ -$ Deposits and Day Fund Deposit-$ 50,000,000$ -$ - Reduce Unfunded Liability- 300,000,000 - - Reduce Unfunded Liability- 350,000,000 - Authorized / Unissued Debt- 221,696,000 - Subtotal Deposits and Transfers-$ 921,696,000$ -$ Total Cost Increases2,286,856,100$ 5,708,577,100$ 106,360,100$ Base Adjustments3,250,000$ -$ 754,597,700$ Before Reductions ( I - II - III)1,262,979,100$ (1,379,860,600)$ -$ Budget Reductions and Reallocations(117,076,200)

5 $ -$ -$ Balance (IV - V)1,380,055,300$ (1,379,860,600)$ -$ 23 AdReq1311/31/2022 3:09 PMBudget OverviewFiscal Year 2020-2021 Final Revised Estimate13,192,300,000$ 13,218,500,000$ (26,200,000)$ Reported Collections (August - July)15,080,561,000$ 15,102,661,000$ (22,100,000)$ Plus / (Less): Accruals and Adjustments114,504,000 114,504,000 - Total FY 2020-2021 Actual Collections15,195,065,000$ 15,217,165,000$ (22,100,000)$ 2021-2022 February 8, 2021 Budget Document Estimate 13,641,500,000$ 13,641,500,000$ -$ Plus / (Less): Tax Legislation(20,700,000) (1,500,000) (19,200,000) Budgeted FY 2021-2022 Estimate at July 1, 202113,620,800,000$ 13,640,000,000$ (19,200,000)$ Revenue Base Increase at Recurring Growth2,870,600,000$ 2,870,600,000$ -$ over FY 2020-2021 Recurring CollectionsTotal FY 2021-2022 Revised Estimate16,491,400,000$ 16,510,600,000$ (19,200,000)$ 2022-2023 Revenue Base 16,515,300,000$ 16,510,600,000$ 4,700,000$ Growth from Revenue Base at ,500,000 371,500,000 - Total FY 2022-2023 Estimate16,886,800,000$ 16,882,100,000$ 4,700,000$ Department of Revenue TaxesStatement of Adjustments to Tax EstimatesGeneral Fund and Education FundIncrease / (Decrease)23 AdReq1321/31/2022 3.

6 09 PMBudget OverviewFiscal Year State of Commerce and Insurance - Insurance Premiums20,000,000$ -$ -$ of Commerce and Insurance - HMO Premium Tax22,380,500 - - Property Accounting Change7,500,000 - - Coverage Assessment - - 609,301,600 Home Bed Assessment - - 134,605,900 Service Provider Assessment - - 10,690,200 Total Other State Revenue49,880,500$ -$ 754,597,700$ from July 1, 2022 Budgeted EstimatesSelected State Revenue AdjustmentsIncrease / (Decrease)23 AdReq1331/31/2022 3:09 PMBudget OverviewFiscal Year of Revenue Taxes - Over / (Under) Collections Compared to EstimateReported Collections (August - July)15,080,561,000$ Less: Revised Estimate(13,192,300,000) Subtotal Department of Revenue Taxes - Over / (Under) Estimate1,888,261,000$ Plus / (Less): Accruals and Adjustments114,504,000$ Total Department of Revenue Taxes - Over / (Under) Estimate2,002,765,000$ State and Miscellaneous Revenue - Over / (Under) Estimate Reported Collections1,562,478,600$ Less: Estimate(1,467,531,300) Total Other State and Miscellaneous Revenue - Over / (Under) Estimate94,947,300$ Service Transfer at June 30, 2021 54,000,000$ Master Settlement Agreement - Over / (Under) Collections Compared to EstimatesActual Collections172,471,600$ Less.

7 Estimate(150,000,000) Total Tobacco Master Settlement Agreement - Over / (Under) Estimate22,471,600$ Other Net Revenue Adjustments in Accounts(6,478,100)$ Total Revenues - Net Over / (Under) Collections2,167,705,800$ ReversionActual Reversion927,501,900$ Less: Revised Estimate(624,630,200) Total Agency Reversion - Over / (Under) Estimate302,871,700$ from ReservesActual Transfer-$ Less: Estimate(150,000,000) Total Transfer from Reserves - Over / (Under) Estimate(150,000,000)$ Total Reversion and Reserve Transfers - Net Over / (Under) Collections152,871,700$ Total Unappropriated Budget Surplus / (Deficit)2,320,577,500$ Fiscal Year 2020-2021 ClosingUnappropriated Budget Surplus / (Deficit)(Reserve for Future Requirements at June 30, 2021)23 AdReq1341/31/2022 3:09 PMBudget OverviewFiscal Year 2022-2023I. Unappropriated Budget Surplus / (Deficit) at June 30, 20212,320,577,500$ Adjustments and Other Available FundsDept.

8 Of Revenue Taxes - Base Increase at Growth over FY 2020-2021 Actual2,870,600,000$ FY 2021-2022 Enacted Budget Available Funds17,362,140 Other State Revenue - Insurance Premium Tax20,000,000 Unclaimed Property Accounting Change7,500,000 Rounding Adjustment(40) Revenue Adjustments and Other Available Funds2,915,462,100$ Subtotal Budget Surplus / (Deficit) and Revenue Adjustments (I + II)5,236,039,600$ and Transfer RequirementsFY 2021-2022 Supplemental Appropriations(912,023,100)$ Appropriation and Transfer Requirements(912,023,100)$ Total Available Funds at June 30, 2022 (I + II + III)4,324,016,500$ Available FundsFiscal Year 2021-202223 AdReq1351/31/2022 3:09 PMBudget OverviewFiscal Year 2022-2023 General FundDedicated FundsI. Operating of ParoleTraining Costs86,400$ -$ and CompensationUnclaimed Property Accounting Change7,500,000$ -$ of the TreasurySpecial Session - Contract Specialist (1 FT)51,600$ Prison Contract Adjustment 7,403,400$ -$ ServicesGov.

9 Early Literacy Foundation - Continued Book Delivery and Expansion to Rising 2nd Graders4,400,000$ -$ Special Session - Megasite Authority of West TN Operational Support745,100 - Subtotal General Services5,145,100$ -$ at Southwestern Border500,000$ -$ Wagering CouncilOperations-$ 1,250,000$ Session - Road Development200,000,000$ -$ AppropriationsSpecial Session - Consultants and Legal Support5,000,000$ -$ Local Cybersecurity Grant Program418,300 - Administration Legislation - State Holiday - Juneteenth7,700,000 - Subtotal Miscellaneous Appropriations13,118,300$ -$ Subtotal Operating Budget Supplemental Appropriations233,804,800$ 1,250,000$ OutlaySpecial Session - Ford Capital Grant500,000,000$ -$ Special Session - Water / Wastewater138,218,300 - Special Session - New West TN TCAT 40,000,000 - Subtotal Capital Outlay678,218,300$ -$ Subtotal Capital Outlay Supplemental Appropriations678,218,300$ -$ Total Supplemental Appropriations912,023,100$ 1,250,000$ Supplemental AppropriationsGeneral Fund and Dedicated FundsFiscal Year 2021-202223 AdReq1361/31/2022 3.

10 09 PMBudget OverviewFiscal Year ,646,000 18,923,500 - Fair Infrastructure- 9,500,000 - Farmers of America (6 FT)513,200 - - Animal Disease Testing (3 FT)797,600 - - Auditor (1 FT)80,500 - - and Dairy Inspectors (2 FT) - $48,800 Other Funding74,500 - - Driver's License (CDL) Training - Federal Policy Change206,000 - - / Weights and Measures - Equipment Replacement.