The Tennessee General Assembly adjourned after a session that included the passing of a more than $32 billion spending plan that does not give pay increases to state employees and teachers.
Governor Bill Haslam planned to give a 1 percent pay increase to state employees and 2 percent to teachers, but later said he wouldn't be able to because of poor revenue collections.
The budget is expected to have a shortfall of about $277 million.
Also voted down was a proposed school voucher program in Tennessee.
Legislation passing included measures to allow wine sales in grocery stores, fight methamphetamine production, and give high school graduates free tuition at community colleges, which was a signature proposal of the governor.