Legislative Recap: #1 in the Nation - Tennessee’s Fiscal Health: Strong but We Can Do Better

Tennessee continues to lead the nation in fiscal health—and that’s something to be proud of. While Washington, D.C., drowns in debt and other states overtax their citizens, Tennessee proves that conservative principles work.

I voted for this year’s budget because it funds essential services and reflects many of our shared values, even if I didn’t agree with every line item. Our results speak for themselves:

#1 State to Save Money (Bankrate) - When families want to build wealth and secure their future, they choose Tennessee. Our low taxes, responsible spending, and business-friendly policies create an environment where individuals can keep more of what they earn and build lasting wealth for generations.

#2 in Lowest State and Local Taxes Per Capita (Tax Foundation) - We let people keep their money instead of sending it to government bureaucrats. Every dollar left in taxpayers' pockets is a dollar that can be invested, spent, or saved according to their priorities, not politicians' whims.

#5 in Fiscal Stability (US News) - While other states face budget crises and pension crises, Tennessee maintains rock-solid fiscal management, providing predictability for families and businesses.

Lowest State Debt Per Capita (TNECD) - We don't mortgage our children's future to pay for today's government spending. Low debt means more resources available for essential services and lower long-term costs for taxpayers.

Zero Income Tax - Tennessee workers keep their entire paycheck instead of sending chunks to the state government. This fundamental respect for private property rights attracts residents and businesses while ensuring individuals control their own economic destiny.

Triple-A Bond Rating from All Agencies - Moody's, S&P, and Fitch all give Tennessee their highest rating, reflecting our "very low debt and pension liabilities and well-considered approach to fiscal management." When the experts evaluate fiscal responsibility, Tennessee earns perfect scores.

Over $5.1B in Tax Cuts Since 2011: Real savings for families and small businesses.

Where We Must Do Better:

Even in the midst of these strong numbers, we must remain vigilant. Our state budget has grown by more than 50% since the previous administration ended. That's a serious increase—and one we must reflect on. Rising revenues should not automatically translate to rising spending. When Tennessee families have extra income, they prioritize savings and investments. Our government should do the same.

Instead of expanding government, we should have returned more of that surplus to the taxpayers—through broad-based tax relief or a permanent reduction in the financial burden on working families. While some of the spending went to valuable one-time investments, we still lack a recurring infrastructure funding line item in the budget, something I believe we must address to ensure our roads, bridges, and public systems are sustainably maintained for future generations.

Why Conservative Fiscal Policy Works:

• Lower Taxes Drive Growth - When people keep more of their money, they spend it, invest it, and create economic activity that benefits everyone. Government spending often results in waste and inefficiency, whereas private spending generates jobs and fosters prosperity.

• Debt is Theft from Future Generations - Every dollar of government debt is a dollar our children and grandchildren will have to repay with interest. Fiscal responsibility means living within our means today, rather than borrowing against tomorrow.

• Limited Government Serves Citizens Better - When government focuses on essential functions instead of trying to solve every problem, it performs those core functions more effectively while leaving citizens free to pursue their own happiness.

• Predictable Policies Attract Investment - Businesses and families need stability to make long-term plans. Tennessee's consistent commitment to low taxes and responsible spending creates an environment where people can invest confidently in their future.
  

As we celebrate our fiscal accomplishments, let's also recommit ourselves to the core conservative principle of limited government and responsible stewardship. It's not just about keeping taxes low—it's about guarding against complacency and making sure our government grows only in proportion to need, not revenue.

Looking Forward: We'll continue pursuing policies that reduce tax burdens, eliminate waste, and respect taxpayers' hard-earned money. Every budget cycle, we should be asking the same question: "Are we serving taxpayers or are we serving government?"

The answer will guide every decision I make. Tennessee proves that when government stays in its proper role, citizens prosper.

Your faithful steward,

Michele Reneau

TN State Representative

District 27, Hamilton County