Republicans in the Tennessee General Assembly warmly received Gov. Bill Lee’s budget priorities for the year during his State of the State address on Monday: a $1.6 billion in tax breaks for businesses, and a controversial $141.5 million statewide school choice voucher program.

Lee touted Tennessee as an “economic powerhouse,” and “the center of the automotive universe,” and praised the legislature’s conservative fiscal management and investments in workforce development. He outlined plans to make new investments in rural health care access, and protect musicians from misused artificial intelligence.

But spectators regularly booed from the House galleries as Lee outlined these budget priorities on Monday ― particularly his call to pass an expanded statewide school voucher program. 

Instead, Democrats called on colleagues to pass a budget that prioritizes working families ― not corporations and private school interests.

Here are five takeaways from Lee’s speech:

Big night for businesses, school choice advocates

Among Lee’s top policy priorities this year are reforming the state’s franchise tax to offer $1.6 billion in tax breaks for businesses, and a controversial $141.5 million statewide school choice voucher program.

More: Gov. Lee’s budget calls for $1.6B business tax cut: What to know about the proposal

Lee is also backing policy reforms aimed at preventing misuse of artificial intelligence in songwriting, new funding for rural healthcare access, and new funding for land conservation. Unlike in recent years, Lee’s proposal does not include any tax cuts for consumers, such as the three-month grocery tax holiday he backed last year.

Rowdy crowds pepper speech with commentary

Despite a recent crackdown in the House of Representatives, crowds watching the annual address were rowdier than usual. Lee’s comments outlining his school choice program sparked the loudest outbursts.

Screams of “No! No! No!” rang out from the House gallery as Lee declared “2024 is the year to make school choice a reality for every Tennessee family.”

“We’ve increased funding for public education by more than $1.8 billion dollars,” Lee said. 

“Not enough!” demonstrators cried. 

State of the State address: Tennessee Gov. Bill Lee touts school choice, business tax refund in State of the State

Outbursts continued throughout his speech, peppering the remarks in almost a dialogued response. 

“We can give parents choice and support public schools at the same time,” Lee said. “You’ll hear me say that over and over again – these two ideas are not in conflict.” 

“Yes they are!” a demonstrator yelled from the gallery. 

Rep. Justin Pearson, D-Memphis, stood defiantly in the back of the chamber holding up his right arm in a “thumbs down” sign. Meanwhile, Education Commissioner Lizzette Reynolds – seated in the front row just a few feet from the governor – emphatically nodded her support. 

After a few minutes, Lee went off script. 

“Now is a good time to remind everyone – as it has been – civility is a strength, not a weakness,” Lee said to loud cheers from officials in the crowd. 

But spectators continued – despite a heavier presence of state troopers that appeared in the gallery during his remarks. After more outbursts from the House’s West Gallery, a spectator stood and yelled, “Let the governor speak, uninterrupted!” 

To no avail.

Lee blazed through the speech, despite the commentary from the gallery — including during an emotional tribute to Covenant School community in Nashville last year. On March 27, 2023, a shooter fatally shot six people, including three children, at the private Christian school, a tragedy that marked calls for gun reform and a special legislative session last year.

“You can prevent it!” a woman yelled.

No gun reforms from Lee

Notably absent from Lee’s speech were calls for new school safety plans or gun reform legislation, even as the issue has largely defined Tennessee politics in the year since the Covenant School shooting.

The governor took a big swing late last fall in calling for an extreme risk proposal, and he failed to get it even close to the finish line last summer with a recalcitrant GOP supermajority.

Lee called the school shooting “one of the most difficult moments our state has ever seen.”

“Covenant experienced unimaginable tragedy, but tragedy doesn’t have to be the end of the story,” Lee said Monday. “There is a redemption in struggle, if we lean into it.”

Rather than propose any new measures, Lee on Monday instead pointed back to a 2023 proposal to fund security resource officers.

Democrats call for a plan to serve the working class

After the address, Senate Democratic Caucus Chair London Lamar, D-Memphis, condemned Lee’s budget plan as one that prioritizes big businesses and underserves average working Tennesseans.

“Tennessee Republicans are leading the nation at the top of violent crime, personal bankruptcies, and maternal deaths by putting big corporations over people, shortchanging public schools and underinvesting in health care,” Lamar said, during the Joint Democratic Caucus’ formal rebuttal.

Of Lee’s proposed franchise tax reforms ― which are projected to cost the state $5.3 billion in tax revenue over the next five years ― Lamar accused Republicans of caving to business interests.

“Republicans are letting big corporations bully them into giving them a refund while working class people are footing the bill and getting less services,” Lamar said. “Instead of giving huge tax cuts to corporations, let’s give it to the people who are actually punching the clock every day.”

“Our challenge to Gov Bill Lee—think about the working class families that are holding up Tennessee and propose an agenda that works for them,” she added.

First Lady rejoins audience after cancer battle

First lady Maria Lee sat in the front row to watch her husband deliver his State of the State address. Last year, Maria Lee was absent from the House chamber as she prepared for a bone marrow transplant amid a serious cancer battle.

The governor grew emotional on Monday night as he recalled his wife’s absence and precarious health in 2023.

“Last year, for the first time since I became governor, she was unable to attend the state of the state address in-person,” Lee said. “That night, we didn’t know just how remarkable her healing journey would turn out to be. Maria and I want to thank all of you – here tonight and across the state – for your love, for your encouragement, and most of all, for your prayers for healing.”

Lee thanked his wife for “all that you do for me and for Tennessee, and for being you.”