Tennessee Governor Phil Bredesen signed a bill Wednesday authorizing the state's new budget of nearly $26 billion. The new budget increases spending for education and fulfills Bredesen's commitment to decrease TennCare spending. The new budget also includes an increase in spending for the state's preschool program, as much as $100 million in funding for TennCare disenrollees, and a significant contribution to the state's reserve fund.

Bredesen also signed into law a bill authorizing the General Assembly to begin drafting new ethics laws.

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Tennessee Governor signs budget bill