Sycamore Institute report expresses concern about state transportation, lottery scholarship funding

The Sycamore Institute's annual State Budget Primer(opens in a new tab) is highlighting what the organization considers “structural deficits” in the Tennessee budget related to transportation funding and lottery-funded scholarships. The report from the nonpartisan research organization listed the concerns under a new “top topics” section for the 2026-2027 fiscal year. Other areas of concern the report noted included the impact of prolonged high inflation on managing and balancing the budget, changes in federal grant matching requirements, and the increasing reliance on special funding sources that may undermine long-term sustainability of funding.  Tennessee’s $57.9 billion budget funds state operations from July 1, 2026, to June 30, 2027.