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Tax Plans Gain No Momentum(Tennessee Tax Revolt)
The Tennessean ^ | June 25, 2002 | Anne Paine and Durne Cheek

Posted on 06/25/2002 5:21:11 AM PDT by TennTuxedo

Edited on 05/07/2004 9:20:03 PM PDT by Jim Robinson. [history]

The ''no-new-taxes'' budget appeared to be the least popular budget proposal among several lobbyists who represent some of the state's largest public and private interest groups swirling around Capitol Hill yesterday.

Six days before a balanced budget must be passed, none of the three tax measures on the table has enough backing for a consensus among lobbyists.


(Excerpt) Read more at tennessean.com ...


TOPICS: Front Page News; US: Tennessee
KEYWORDS: lobbyists; stateincometax; tennessee; tennesseetaxrevolt
The Tennessean reveals that the lobbyists are the ones who really matter in this budget "wrestling match". Our lawmakers are worried about upsetting the "golden gooose" that feathers their nests with gold and treasures.

What about the people of the state of Tennessee? Where are they mentioned in this article? The only reference to the public is made by a lobbyist, who talks as if the citizens are "riff raff". Folks, the reality of this situation has been revealed. What will we do about this?

1 posted on 06/25/2002 5:21:12 AM PDT by TennTuxedo
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To: TennTuxedo
The no-new-taxes budget eliminates 756 positions at the University of Tennessee, more than 300 of those filled, UT lobbyist Tom Ballard said.

Which means 456 phantom jobs could be eliminated...TDOT has over 166 phantom jobs it could elminate. I would hazzard a guess that in the 2,500 FULLY HALF are phantom jobs if you base that on these other two sets of phantom jobs!

2 posted on 06/25/2002 5:25:43 AM PDT by GailA
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To: GailA
http://www.gomemphis.com/mca/politics/article/0,1426,MCA_1496_1228448,00.html

Deadline near but tax plan elusive Naifeh's proposal only 3 votes short

By Richard Locker locker@gomemphis.com
June 25, 2002

NASHVILLE - Income tax proponents worked feverishly behind the scenes Monday to resuscitate their tax reform plan while the state legislature as a whole treaded water six days before Sunday's budget deadline.

Both the Senate and House finance committees failed to meet their self-imposed Monday deadline for sending some alternative tax and budget measure to the floors amid reports House Speaker Jimmy Naifeh may now be only three votes short of the 50 he needs to pass a 4.5 percent flat-rate income tax plan in the House of Representatives.

A floor vote could come without notice any day, including today.

Horn-honking anti-tax protesters returned to the sidewalks and streets across from the Capitol Monday and, with the possibility of a tax vote anytime, are likely to remain all week. The NAACP announced plans Monday for a march to the Capitol area at 11 a.m. today in support of a state income tax.

Gov. Don Sundquist and other income tax proponents mounted a full-court press to sway votes for the Naifeh plan, including discussions of lowering its 4.5 percent rate to less than 4 percent and other alterations to pick up votes. Sen. Jerry Cooper (D-McMinnville) said Naifeh told a meeting of legislative leaders and the governor Monday afternoon that he believes he is now three votes short and is hopeful he can pick them up today.

In summary, lawmakers say privately that Naifeh effectively has until Wednesday to win House approval of the income tax, defer to some alternative tax plan or move toward a no-new-taxes budget.

With six days to go until some budget measure must be adopted or a partial shutdown of government is triggered, there were these developments:

Higher education officials told the Senate Finance Committee that another 15 percent in-state tuition increase is likely to partially make up for the no-new-taxes budget plan's $93 million in cuts to campuses. It would be the fourth year of double-digit increases, and the officials said it would make tuition at Tennessee colleges and universities the highest in the region. (MY NOTE there are 50 higher ed facilities in TN..93 divided by 50 is 1.86 a piece)

Even with the big tuition increases, degree programs and personnel would be slashed and classes would become even larger, the officials said. The Senate committee ended testimony Monday on the impacts of a no-new-taxes budget being drafted if no new tax is passed.

Sen. David Fowler (R-Chattanooga) presented a sweeping new tax plan that would raise $933 million in state revenue through increases in numerous existing business and personal taxes and extending the taxes to previously untaxed businesses. The Fowler plan would increase sales taxes to 8.75 percent, increase taxes on vehicle registration fees, double the current $1,600 limit on a single-item purchase that local sales taxes are applied to, raise the corporate excise tax from 6 to 6.25 percent, increase taxes on cigarettes and alcohol products, impose the sales tax on several services now exempt and other measures.

Fowler asked the committee to delay a vote on his proposal until today.

Sponsors of the so-called CATS budget, which would raise sales and other taxes, raise $771 million and require about $100 million in cuts, did not present their proposal in the Senate committee Monday and did not ask for a vote in the House Finance Committee. That indicates they lack enough votes to win passage in the committees, its opponents say. "Some of the proponents of the income tax would push this to the eleventh hour and say it's either the income tax or a shutdown," said Rep. Frank Buck (D-Dowelltown), House sponsor of the CATS budget. He said he will not ask for a Finance Committee vote "until the most advantageous time."

Sen. Jerry Cooper (D-McMinnville) said the Senate delayed action on every alternative tax plan Monday because Naifeh told a meeting of legislative leaders and Sundquist that he was optimistic he could garner enough support for the income tax.

"I'm encouraged by the ability of Speaker Naifeh in getting the three votes he needs. He thinks that he's got a good chance.

"We're down to the no-new-taxes budget, shutting the government down or the income tax," Cooper said.

Sen. Jim Kyle (D-Memphis), vice chairman of the Senate Finance Committee, said he was alarmed by the committee's failure to act Monday, in defiance of its own deadline.

Contact Nashville Bureau chief Richard Locker at (615) 255-4923.

3 posted on 06/25/2002 5:31:36 AM PDT by GailA
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To: GailA
http://www.timesnews.net/index.cgi?CONTEXT=cat&BISKIT=1186382793&id=61539&category=63

Lawmakers continue to talk about CATS as budget deadline looms

By TIM WHALEY

A revised version of the Continuing Adequate Taxes and Services budget is set to be heard today in the House Finance Committee as the state legislature appears once again to be foundering on the edge of a government shutdown.

A budget must be in place by Sunday night to avoid such a shutdown. A 4.5 percent income tax plan appears dead in the water, and a second plan to cut $945 million from state government doesn't even have a sponsor.

The latest version of CATS calls for a two-phase plan.

On July 1, the one-time registration fee on freight trailers would rise from $50 to $75, while tabbing some $37 million from the Department of Transportation and jacking up sin taxes on alcohol and tobacco.

Cigarette taxes would jump 30 cents per pack alone.

The state tax on gasoline and diesel would rise by 2 cents, and corporate excise taxes would rise by .25 percent. The original CATS plan anticipated a .75 percent increase on business income.

Also, the state sales tax would rise one full percent to 7 percent from July to August, and energy taxes would rise from 1.5 percent to 2 percent.

Then, on Sept. 1, a new graduated vehicle registration fee would be imposed on passenger and antique vehicles. The top rate would be $85 for a car that is five years old or newer in addition to the existing $24 registration fee.

Vehicles that are 10 years old or newer would pay a total of $99, while vehicles of 21 to 25 years of age would be assessed a total $39 state registration fee.

Also on Sept. 1, the state sales tax would be unified, eliminating local option sales taxes, and a state sales tax rate of 8.75 percent would be levied in every jurisdiction.

That could result in a .25 percent sales tax hike in Kingsport, a .50 percent hike in Sullivan County and a 1.25 percent increase in Johnson City.

That new 8.75 percent state sales tax rate would then be extended to a host of services, including pest control, cleaning services, detective and security services, landscape services, barber services, amusements and "operator or crew services."

The sales tax would also go to 8.75 percent on telecommunications services, including cable and wireless services, and satellite television.

Exempted items would be brought in as well at 8.75 percent, including nonprofit sales at gun shows, rentals of films and transcripts, construction machinery transferred from a parent corporation to a subsidiary corporation, the first $150 of club memberships, capital improvements to recreation clubs, physical fitness facility fees, taxidermists and legend drugs sold by veterinarians.

The measure would raise $939 million the first year.

Local governments would receive an increase of $2.7 million in the first year and would be held harmless from the loss of local option sales tax revenues.

In exchange from all those tax increases, the measure would reduce the tax on food for human consumption to 5 percent. (MY NOTE PLUS THE LOCAL OPTION)

"This is just a sort of variation on everything out there," Rep. Ken Givens, D-Rogersville, said. "It's a plan a minute right now down here.

"But none of them amount to much, and I think we are fast approaching passing a cut budget with no new revenue."

Such a measure would require at least $845 million in cuts from existing state services.

Last week, the House Finance Committee decided that if the no new revenue plan goes into effect, the state will take back $368 million in state-shared taxes given to local governments. Using those funds would soften the original plan's $400 million cut to K-12 education.

"Chances are very slim that the state-shared cut will stand up," Givens said. "But I would say chances are very good that the cuts in K-12 will hold."

Meanwhile, state Sen. Ron Ramsey, R-Blountville, says the CATS plan is the only plan with a chance right now.

"It's quite obvious the income tax is not going to pass, so it's time for the income taxers to fish or cut bait and this is not pretty, but it's the most viable option on the table," Ramsey said. "Nobody wants to cut and nobody wants to take money from local governments, so in my opinion, this is by far the best option out there."

4 posted on 06/25/2002 5:36:36 AM PDT by GailA
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To: TennTuxedo
Naifeh's income tax plan is the only proposal any lobbyist would speak up for yesterday.

No surprise there. Like TT said, lobbyists only want the golden goose to keep squeezing it out. The lobbyists need to get out and shut up. Our legislators need to give first consideration to their constituents. If they think they can ever satisfy the lobbyists, they're mistaken. If they think they can satisfy the lobbyists and their constituents at the same time, they're mistaken.

State workers already make 78% of the market rate in pay.

When they work at 40% of the efficiency of private sector workers, they're still way overpaid.

5 posted on 06/25/2002 6:13:06 AM PDT by tdadams
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To: tdadams
Our legislators need to give first consideration to their constituents.

Nice idea, but since when has this been the case? This is a "crisis" created by Legislators for Legislators. Follow the money.

6 posted on 06/25/2002 6:20:52 AM PDT by Thermalseeker
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To: Thermalseeker
There is LOTS of PORK in this budget.

The Nashville City Paper: Jimmy Naifeh, speaker of the House, surrounded by a score of legislators, told the crowd, “Those horn-honkers don’t bother me worth a damn! I would rather be dealing with real people like you, people who work for a living.”

The INCOME TAX would increase the gov't by 300 NEW T-IRS employees.

Rep (David Davis), with the agreement of Crowe and Patton, said a shortfall in the current budget of upwards of $350 million is a "real deficit,'' while past budgets "artificially" inflated expenditures to produce a deficit. (The Kingsport Times)

Some of the suggestions out of the Hargett/Jones budget research last year were:

KEEP BUDGET GROWTH WITHN IN CONSTITUTIONAL LIMITS' FUND BUDGET AT 5.45% GROWTH RATE, electronically deposite employees checks; deliver pay stubs by bundling and delivering at work place. Consideration should be given to the possible merging of the Dept of Safety & Dept of Transportation. Could save about $3.6M. Consideration should be given to merging TN Higher ED Commission with Board of Regents to eliminate duplication of efforts.

Abolish TN Commissioner on National & Community Services $185,000, eliminate 2 positions on Historical Commission $80,000, Eliminate or reduce funding fot W. TN river Basion $33,000-$917,000, eliminate funding for small & minority Telecommunications program $80,100, Eliminate diversity marketing $100,000, eliminate quality awards $50,000, cease operations of Jones Auditorium $700,000, reduce funding for Public TV or eliminate $322,360 or $3,223,600, reduce jobs for TN graduates $561,000, Eliminate State Board of ED (Dept of ED would perform these functions) saves $689,400, reduce education edge funding, Eliminate the Holocaust Commission $135,000, IF charter schools don't pass eliminate the $80,000 for it., Reduce funding for Higher ED excellance Initiatives by 50% saves $46,270,000, MAINTAIN student assistance awards at current level saves $9M, Eliminate Chattanooga Team Evaluantion contract saves $70,000, Decrease wetlands axquistion fund base by $1.5M

FROM MY RESEARCH

CLOSE GOV's field offices saves over $2M pg b35 womens economic council is a MAKE work council to line someone's pockets...2 full time employees 1 part timer and 1 seasonal salary consumes $73,500 and operations consumes $25,500 for a total of $98,700

U of M
Central avenue improvements $200,000
N Central Parking log extension $1,180M
N parking garage $14M
Performing arts center $16M
University center renovations $22M
Richardson Tower improvements $8,590M
Various dorm improvements $4,430M
Chattanooga STC
Athletic facilities lighting improvements $320,000
Walters SCC Greene Co Expo Center $5M
Sevier Co Library $3M
Sevier Co soccer facilities $250,000
UT@ Chattanooga
College St special housing $4.420M
UT @ Knoxville
Neyland Thompson sports center $11.6M
Morrill Hall renovation $3.65M
Administration parking garage phase 2 $700,000
Campus entrance $2M
Intercollegate swim facility $19.3M
Stokley athletic center renovation $19.4M
Ft Campbell museum $1M
Country Music Hall of Fame $1M
Public TV $3.2M
ETSU Sherrod library renovation $10.3M (This was only $9.99M last year)
NESTCC New humanities bldg $13.990M
Paris landing kitchen renovation $1.290M
ETSU golf Practice area $250,000
Warriors State park golf cart crossing $260,000 (this was only $247,000 in last year's budget)
APSU McCord bldg renovations $6.840M
WSCC college center renovation $4.380M
DSCC--LLC Eller & Glover addition/renovation $6.90M
UTK Glover bldg renovation/addition $24.3M
UTMHSC college of pharamacy bldg $32.9M
ESTU Greek row $9.250M
ETSU Tennis facility $1M
MTSU Greek row development $17M
housing renovations $15M
obsovatory relocation $500,000
NEW sports museum $1M
recreation fields replacement $4.150M
property demolition $350,000
parking lot $600,000
Nursing bldg addition $4.15M
Women's soft ball locker room $500,000

7 posted on 06/25/2002 6:34:38 AM PDT by GailA
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To: TennTuxedo
Hey East TN Freepers! We're starting a new FR chapter for our region. Please visit this post:

http://www.freerepublic.com/fo cus/news/705694/posts


8 posted on 06/25/2002 11:07:31 AM PDT by Constantine XIII
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