NASHVILLE - In fashioning his second Tennessee government budget, Gov. Bill Haslam has anticipated having about $400 million more in state tax revenue to spread around than in his $30.2 billion plan for the current fiscal year.

But the governor has also anticipated that "ingrained" cost increases in various areas, including TennCare and education, will roughly consume the increase in revenue. Maintaining the status quo in kindergarten-through-12 education alone is expected to require an extra $55 million allocation for the fiscal year beginning July 1.

And, even with the projected revenue increase, state tax collections will be below levels reached in 2008 before a national economic slump began. Federal stimulus funds — remnants of which continued into this year's budget after peaking a year earlier — are completely gone.

The current year's total budget, pegged at $30.2 billion when enacted last May, includes about $12 billion in federal money, down $2 billion from the year before when stimulus money was flowing. The current spending from tax revenue is $11.3 billion, with the remainder coming from such things as college tuition, license fees, lottery profits and the like.

The increase in expected revenue comes both from state tax collections running ahead of projections made when the current budget was adopted and from the State Funding Board's current projections that things will continue to improve in the coming months.

But, with the offsetting increases in expenses and no federal money to fall back on, there will almost certainly be some spending cuts as well as spending increases in the budget that will be outlined to legislators Monday night in the governor's annual "state of the state" address.