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Tennessee Budget Shortfall

Tennessee Budget Shortfall

Tennessee Gov. Phil Bredesen says a budget shortfall that is now expected to reach $1 billion will require cutting up to 20 percent out of most state department's spending plans.


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Bredesen, a Democrat, has seen the budget picture deteriorate rapidly over the last six months.

In August, Bredesen told department heads to prepare for a 3 percent cut. That figure was revised in November to a 10 percent.

Since then, the worsening outlook has led the governor to dial up those cuts, first to 15 percent and now to up to 20 percent.

Pre-kindergarten through high school education is the only area the governor wants to protect from the deep spending cuts.

Bredesen says the budget crunch will likely require a further reduction in the state work force, either through layoffs, buyouts or extending a hiring freeze.

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