Senator Joey Hensley, MD

Preview of the 114th General Assembly 2025 Legislative Session

The General Assembly will convene for the 114th General Assembly on January 14. The budget and education, will be among the top issues addressed by lawmakers. The following is an overview of key legislative issues expected to be considered in the 2025 regular session.

Budget

The Tennessee General Assembly’s most important responsibility – and only constitutional duty – is passing a balanced budget, which depends on accurate revenue projections from the state. Each year, the State Funding Board (SFB) is tasked with issuing General Fund growth projections for the upcoming fiscal year, which is used as the basis for the next year’s available budget funds. For the second year in a row, the state is seeing much slower revenue growth than in years past, with the Board predicting a growth rate of 1% to 2% for Fiscal Year 2025/2026. Experts told the SFB in November 2024 the state’s economy remains healthy, and the dramatic dip in revenue growth is largely due to two years of double digit growth rates of 13% to 15%. However, Tennessee’s growth rate is typically between 3.5% to 5%.

Despite slower revenue growth and inflation, Tennessee’s economy continues to outperform the national average in multiple metrics. Tennessee’s job growth is at 18.5% since the Great Recession, compared with the national average of 15%. In addition, Tennessee’s unemployment rate remains notably below the national average, standing at 3.3% in October 2024 compared to the national rate of 4.1%.

Tennessee’s absence of an income tax has recently attracted an influx of retirees, contributing to a decline in the state’s labor force participation rate. Experts expect that because of Tennessee’s robust and well-functioning sales tax, the state will not see a hit from this.

The AAA-rated Volunteer State ranks among the nation’s least indebted states and stands out as a leader in fiscal stability and low taxes. Republican lawmakers are committed to ensuring that Tennesseans keep more of their hard-earned money and have consistently cut taxes every year. Since 2011, the General Assembly has cut over $2 billion in taxes. In 2025, expect lawmakers to explore more ways to ease the tax burden on Tennessee taxpayers.

To safeguard the state’s financial stability during economic downturns, Tennessee lawmakers have consistently prioritized strengthening the Rainy Day Fund, the state’s savings account. In 2024, the legislature contributed an additional $100 million, raising the fund to a record-breaking $2.15 billion.

Education

Education is a top priority in the General Assembly. In 2025, expect lawmakers to look for various ways to strengthen Tennessee’s student-centered approach to education, continue efforts to support teachers, and improve the quality of education children receive. ensuring that all students have access to a quality education.

Education Freedom Act

School choice has been at the forefront of education discussions in recent years and will continue in 2025. In the 114th General Assembly, lawmakers will consider Governor Lee’s new Education Freedom Act, which was filed November 6, 2024. The new proposal aims to expand the state’s school choice initiative statewide to give every Tennessee family the opportunity to choose the educational path that best suits the needs of their child. It would establish a scholarship program so that parents can use their tax dollars for private school alternatives, while maintaining accountability and supporting public school teachers.

Governor Lee’s proposed Education Freedom Act of 2025 includes:

* 20,000 scholarships for Tennessee students starting in the 2025-2026 school year

* Assurance that state funding to school districts will never decrease due to disenrollment

* Scholarship amounts equal to the per pupil base funds allocated to public school year - $7,075 as of most recent school year

* 350+ private schools eligible to voluntarily receive scholarships as Category I-III schools

* 5,000 additional scholarships with universal eligibility added each year after 75% of scholarships are taken in prior year to ensure controlled, fiscally responsible program growth

* $2,000 bonus for every teacher in the state

* 80% of all sports wagering dollars dedicated to building and maintaining K-12 public school facilities

Tennessee remains committed to supporting public schools through an estimated $275 million in additional state funding provided through TISA. Starting teacher pay will also increase to $47,000 in FY 25-26 – an increase from $35,000 in 2019, placing the state 16th in the nation.

Cell Phone Use in School

Lawmakers will consider legislation in 2025 to prohibit the use of cellphones in classrooms, which has become a major distraction for students and teachers. Cell Phone use in schools inhibits quality instructional time and students’ ability to learn important material. While the bill would prohibit students from using their phones during class, it would not necessarily prohibit them from using phones during breaks or at lunch.

Many schools already have phone policies that restrict phone use during class time. This proposal would make the restrictions uniform across the state, while maintaining schools’ autonomy on how to restrict access. Additionally, this bill would require local school boards to draft a disciplinary response to a violation of cell phone policies.

You May Contact

Senator Hensley at

425 5th Avenue North,

Suite 746

Nashville TN 37243

615-741-3100

Toll Free 1-800-449-8366 ext. 13100

Fax 615-253-0231

855 Summertown Highway

Hohenwald TN 38462

Phone 931-796-2018

Cell Phone 931-212-8823

E-mail: [email protected]