STATE GOVERNMENT FINANCES
(Amounts are in thousands.  Per capita in dollars.)

                                                      Percent           Per
TENNESSEE                                    1995 Distribution       capita

Population (thousands)                      5,256           -             -
Total Revenue                          12,899,912       100.0%     2,454.32
  General revenue                      11,521,631        89.3%     2,192.09
    Intergovernmental revenue           4,044,934        31.4%       769.58
    Taxes                               5,907,721        45.8%     1,124.00
      General sales                     3,360,568        26.1%       639.38
      Selective sales                   1,203,613         9.3%       229.00
      License taxes                       603,188         4.7%       114.76
      Individual income                   101,511         0.8%        19.31
      Corporation net income              493,072         3.8%        93.81
      Other taxes                         145,769         1.1%        27.73
    Current charges                     1,094,241         8.5%       208.19
    Miscellaneous general revenue         474,735         3.7%        90.32
  Utility revenue                               0         0.0%         0.00
  Liquor stores revenue                         0         0.0%         0.00
  Insurance trust revenue               1,378,281        10.7%       262.23

Total Expenditure                      13,432,374       100.0%     2,555.63
  Intergovernmental expenditure         3,262,616        24.3%       620.74
  Direct expenditure                   10,169,758        75.7%     1,934.89
    Current operation                   7,336,166        54.6%     1,395.77
    Capital outlay                      1,400,739        10.4%       266.50
    Insurance benefits and repayments     850,006         6.3%       161.72
    Assistance and subsidies              397,055         3.0%        75.54
    Interest on debt                      185,792         1.4%        35.35
Exhibit:  Salaries and wages            2,249,117        16.7%       427.91

Total expenditure                      13,432,374       100.0%     2,555.63
  General expenditure                  12,578,238        93.6%     2,393.12
        Intergovernmental expenditure   3,262,616        24.3%       620.74
        Direct expenditure              9,315,622        69.4%     1,772.38
  General expenditure, by function:
      Education                         4,302,667        32.0%       818.62
      Public welfare                    3,804,888        28.3%       723.91
      Hospitals                           499,511         3.7%        95.04
      Health                              560,550         4.2%       106.65
      Highways                          1,220,053         9.1%       232.13
      Police protection                    85,476         0.6%        16.26
      Correction                          424,429         3.2%        80.75
      Natural resources                   168,612         1.3%        32.08
      Parks and recreation                 91,894         0.7%        17.48
      Governmental administration         396,603         3.0%        75.46
      Interest on general debt            185,792         1.4%        35.35
      Other and unallocable               837,763         6.2%       159.39
  Utility expenditure                       4,130         0.0%         0.79
  Liquor stores expenditure                     0         0.0%         0.00
  Insurance trust expenditure             850,006         6.3%       161.72

Debt at end of fiscal year              2,821,948       100.0%       536.90

Cash and Security Holdings             14,604,755       100.0%     2,778.68