TN TAX BATTLE: Shock of(INCOME)tax defeat doesn't ruffle Naifeh

Shock of tax defeat doesn't ruffle Naifeh Speaker keeps cool, prepares to try again

Hoping to end four years of legislative deadlock over taxes, the Democrat from Covington led 44 of his House colleagues into the political breach Wednesday to a recorded vote for a state income tax - in an election year, with cameras rolling and angry protesters outside and in the House gallery, no less.

It was a political earthquake, and everyone in the crowded, dead-silent House chamber knew it. There were the quick political calculations: What had happened? Who had bolted? Who'd survive this? How will they get out of the budget crisis now? Some murmured that a GOP takeover of the House was now a certainty.

The day after the crushing defeat of his tax reform bill, the 62-year-old Naifeh, a 27-year veteran lawmaker, was at work again at 8:40 a.m., whistling Raindrops Keep Fallin' on My Head. He'd have been there sooner, but he'd had an appearance on Nashville radio's Teddy Bart's Round table at which the panelists tried to draw Naifeh out about being lied to, being hung out to dry, betrayed by six men he'd counted on. He didn't rise to the bait.

"We had a setback yesterday," he said in an interview later Thursday, appreciating his own understatement. He didn't lay blame or voice recriminations. There was no flash of the famous Naifeh temper. Instead, he said, he'd work to make more lawmakers "comfortable" about voting for tax reform. It's a vote that could come as soon as Wednesday, if the speaker thinks he's persuaded enough representatives to change their votes to "yes."

"I have to try," he said. "I cannot tolerate the thought of cutting $800 million to $900 million out of the budget, knowing what damage it will do to this state."

Naifeh was sure he had at least 52 votes last week when he made an unremarkable floor speech introducing the bill, and only one person rose to speak against it. But when the lighted vote board came on, a startled silence lasted what seemed like forever.

"I was just shocked when I looked at the board. Lois (DeBerry) was standing behind me, and what I can remember is that it got to 38 and then slowed down, then I thought 'We may get in some trouble here,' " said Naifeh. "Then it went to 45, and when I looked at the board to see who the different ones were, then I knew it wasn't going to happen.

"I'd already made up my mind that if it got to 49 I was going to leave the board open for a while. . . . They've done it in Congress, did it for three days in Missouri. So I was prepared to just leave it open for a while and let people think about it."

With the vote board showing 45 green lights and 53 red, after a while, Naifeh strode out of the chamber, summoning the representatives who had reneged on their pledges to vote for the tax measure to his Capitol office. Ninety tense minutes later, they returned, and four changed their votes to abstentions, preventing the official rejection of the bill and sending it back to committee.

"I don't take it personally, because this is not something I set out to achieve," said Naifeh. "I was somewhat thrust into this role."

Naifeh decided to lead the income tax fight last year, after Lt. Gov. John Wilder (D-Somerville) - whose contradictory positions on the tax issue are well-documented - "gave all those speeches about being responsible. That was when I couldn't take it any more."

In fact, Sen. Robert Rochelle (D-Lebanon) had done all he could for his graduated income tax proposal, and Gov. Don Sundquist has no following left in the legislature. The crisis wasn't going away, and Naifeh had to do it.

"I feel good about having attempted it," said Naifeh, who added that he believes his 44 tax-reformer colleagues are disappointed, but not bitter or angry. "Some of them have told me they were glad to have had the opportunity to be recorded voting for tax reform. They're almost relieved."

One of those is House Republican Leader Steve McDaniel (R-Parkers Crossroads), who looked relaxed Thursday morning even as hundreds of vitriolic E-mails flooded his office. "I feel good about it, I really do," he said of the vote.

"A lot of the other ones are disappointed because they were hoping it would pass and that other people would carry it for them," he said.

Naifeh well understands what he's asking of his colleagues: Any income tax is a career-killer for many, particularly those who haven't been out talking to their local Rotary, Kiwanis and Lions Clubs about the depth of the state's budget mess.

He also knows well that the 45 who voted "yes" have been hung out to dry and will be excoriated for voting for an income tax. But the others may also bear voters' rage if state services get cut, parks close and teachers are fired because lawmakers can't agree on a new source of revenue to fund a shortfall of more than $1 billion in the next fiscal year's proposed budget.

"I don't believe (the vote) weakened him at all - I think it actually strengthened him in a way," said Rep. Chris Newton (R-Cleveland), who was one of the six members who voted "no" when Naifeh had counted on their voting "yes."

"He has taken a huge political risk, and people followed, but now the burden's been placed on those of us who voted 'no,' " said Newton.

Former House Democratic Leader Tommy Burnett, now a panelist on the radio roundtable, said he thinks the vote "doesn't help Naifeh, but it's not fatal to him or his leadership. The only thing I'd say he did wrong was that I'd have put up at least one real trial balloon - call someone in leadership who's against the income tax and ask them to put up some fatal amendment, something that would be a test vote.

"I think there are some people that Naifeh or others in the House leadership just misconstrued, but I know there are others who just outright lied to him," said Burnett, who was a master at the legislative game in his time.

But Burnett says Naifeh's "doing everything right" now by holding his temper, meeting privately and calling members on both sides, trying to work out a new compromise that allows some "no" voters to change their minds. "Nobody says a leader has to win every battle."

"It shows why he's the speaker. A good leader knows when his temper needs to be shown and when it doesn't - he's still trying to find his votes and he knows the best way is to build relationships," said Republican Rep. Tre Hargett of Memphis, who voted "no."

"I had several E-mails from people saying they just knew votes were being bought. I don't believe that," said Hargett. "There's not a prison big enough or a road wide enough to make someone vote for that bill."

Seems the teachers are NOT willing to pony up an extra $25 to help fund their schools! Yet they want in OUR pockets MORE and MORE every year!

http://www.knoxnews.com/kns/local_news/article/0,1406,KNS_347_1170777,00.html

Tags fail to rev up schools' revenues

Wheel tax supporters see irony in low local sales

By Michael Silence, News-Sentinel staff writer May 27, 2002

Backers of a local wheel tax and others supporting increased funding for education have been able for eight years to voluntarily contribute to local schools through the purchase of a "Helping Schools" specialty license tag.

But Knox Countians and Tennesseans have not lived up to the state's nickname when it comes to contributing to the donation plate.

Over the past eight years, only 265 of the tags have been sold in Knox County.

Knox County currently has 381,000 registered vehicles, according to the state Department of Safety.

According to Knox County Clerk Mike Padgett, of the 265 tags sold, only 151 remain in circulation, meaning 114 people dropped the tag.

The specialty tag costs an extra $25. Of that, $21 goes to the local school system where the vehicle is registered.

Padgett said over the past 12 months, revenues from the specialty tag to the Knox County school system have totaled $3,171.

In light of a planned push for a mandatory Knox County wheel tax, Knox County Commissioner Frank Leuthold finds the lack of voluntary support ironic.

So much so, he recently dropped the specialty tag on two of his vehicles because employees of the school system were not buying the tags.

"I noticed most teachers didn't have them so I didn't renew mine," he said.

Leuthold, however, is warm to the idea of a referendum on a local, annual $25 wheel tax.

"It is a source of revenue and people would get a chance to vote on whether they want it," Leuthold said.

Currently, the Knox County Education Association, with more than 2,000 members, is discussing ways to go about getting a referendum on the ballot for the local wheel tax.

KCEA members have said the annual tax could raise $9.6 million annually for the school system. Several commissioners have voiced receptiveness to holding a referendum.

Full-time staff member Betty Crawford, who has been with the KCEA office for 12 years, said she believes the lack of high numbers of "Helping Schools" tags in the county is due to a lack of awareness.

"People may not be educated to the fact the money goes to the local school system," she said.

She also noted the education tag competes with many others. In fact, there are currently 76 other specialty tags in Tennessee, according to the Department of Safety.

And there's proposed legislation before the General Assembly to increase the number of specialty tags, and the annual fee from $25 to $35.

Still, some commissioners wonder where the push has been over the last eight years to promote the tags, especially since Superintendent Charles Lindsey has taken a more active political role in pressing them for more funds.

School spokesman Russ Oaks said Lindsey, in fact, has the specialty plate on his vehicle. The school system has about 7,000 employees.

In the eight years the "Helping Schools" tag has been available, 5,680 have been sold in Tennessee. That equates to a total of $119,280 raised for local school systems.

Michael Silence can be reached at 865-342-6310 or silence@knews.com.

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