Governor says Tennessee has money for both Hurricane Helene recovery and universal school vouchers

A man in a suit stands and speaks behind a podium.
Gov. Bill Lee speaks about Tennessee's emergency response to Hurricane Helene destruction in northeast Tennessee during a media briefing on Oct. 10, 2024, at the headquarters for the Tennessee Emergency Management Agency in Nashville. (Marta W. Aldrich / Chalkbeat)

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Gov. Bill Lee said Hurricane Helene’s massive destruction in northeast Tennessee, plus a growing backlog of public infrastructure needs statewide, won’t prevent his administration from pursuing a universal private school voucher program during his final two years in office.

He also suggested that there’s no need to tap into the $144 million set aside for his Education Freedom Scholarship Act to beef up the state’s disaster response. That money currently is not being used, because his proposal stalled in the legislature this year.

“We don’t have to choose one or the other,” Lee said Thursday during a media briefing about the state’s emergency response and recovery work.

Ongoing and potential new initiatives like statewide vouchers remain possible, he said, because of strong fiscal management by the state in the last 20 years.

“We have resources. We have an economy. We have the ability to invest in … infrastructure and education both,” Lee added.

The governor sought to quell suggestions from some lawmakers that state leaders rethink Tennessee’s budget priorities, not only to help northeast Tennessee recover from potentially $1 billion-plus in damage to its public infrastructure, but also to address a growing backlog of at least $68 billion needed statewide to improve roads, bridges, water systems, schools, firehouses, and more, according to the state’s latest assessment.

One of his administration’s top priorities is to give public funding to any family across Tennessee who wants to send their children to private school. This summer, Lee said his office was crafting a new bill after his 2024 proposal stumbled in legislative committees this spring due to disagreements among Republicans.

Last week, Rep. Mark White, a Memphis Republican and voucher supporter who chairs a House education committee, said the state’s new first priority should be “taking care of our neighbors in East Tennessee” and helping them recover from the deadly storm.

“Can we do universal vouchers, too? I don’t know,” White continued. “But East Tennessee has got to be our top focus.”

On Thursday, Lee said his administration is already prioritizing recovery and rebuilding for the region.

He announced a $100 million fund to help 13 hurricane-ravaged counties remove debris and repair water and wastewater systems immediately. Those counties eventually can seek reimbursements from the federal government to repay the fund, but need no-interest loans up front, Lee said.

On Friday, the chairperson of the House Democratic caucus issued a scathing critique of the governor’s plan to loan counties money, instead of providing state funding outright to supplement federal assistance. He also criticized Lee for tapping shared state-federal Medicaid funding to provide the loans.

“Gov. Lee has established a solid reputation for fiscal mismanagement and callous decision-making during his term, but this loan program beats anything I’ve ever seen,” said Rep. John Ray Clemmons, of Nashville.

Clemmons said the state should be pulling from its reserves, or the unused $144 million voucher allocation, to provide disaster assistance.

Schools have been closed since the storm flooded the rural, mountainous region in late September, washing out roads and bridges, damaging drinking water and wastewater systems, and battering school campuses.

In addition to overseeing repairs, school officials have been revamping bus routes for the return of students, many of whom already had fall breaks planned for October. Daily bus commutes likely will lengthen to more than an hour for many children. At a Carter County high school that’s expected to be declared a total loss, students will be relocated to a former school building that houses district offices.

Meanwhile, officials with the state education department said they are working with local school leaders to provide flexibility and assistance to school systems affected by Helene.

That may involve granting waivers so schools can provide more instruction remotely than normally allowed, or to reduce the required number of instructional days. The state also will work with districts as needed regarding fall high school and ACT testing, a spokesperson said.

Marta Aldrich is a senior correspondent and covers the statehouse for Chalkbeat Tennessee. Contact her at maldrich@chalkbeat.org.

Editor’s note: This story has been updated to include a response from House Democrats.

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