Posted on 06/29/2002 4:12:41 AM PDT by GailA
http://www.gomemphis.com/mca/local_news/article/0,1426,MCA_437_1237556,00.html city
City seeks OK to levy payroll tax Council makes plans to cover legislative cuts
By Blake Fontenay fontenay@gomemphis.com June 29, 2002 Faced with potentially devastating funding cutbacks, City Council members asked the state Friday for authority to adopt a payroll tax.
A payroll tax would tax the wages of those who work within the Memphis city limits.
Some council members said the measure would be an equitable way to make nonresidents who work in Memphis share the cost of city services.
Past efforts to adopt a payroll tax have been met with ferocious opposition from business leaders.
Councilman E. C. Jones said a payroll tax might be politically palatable if it came with property tax cuts for city residents.
"At some point in time, we're going to have to do something,'' Jones said. "We cannot continue to raise property taxes for people inside Memphis."
Council members held a special meeting Friday to discuss balancing the city's budget for next year, if the General Assembly cuts the state funds that flow into Memphis.
Since legislators hadn't taken definitive action on the state budget by early afternoon, the council decided to reset its meeting for 6:30 p.m. Sunday.
Given legislators' preoccupation with the state's budget headache, it's unlikely the city's request would be acted on anytime soon.
Council members hope Sunday to finalize the city's property tax rate for the budget year that begins Monday.
State legislators are considering a number of budget-balancing scenarios, including reducing funding traditionally provided to cities and counties.
Under one proposal that's been making the rounds in Nashville, Memphis would stand to lose about $71 million from four state sources.
Joseph Lee, the city's finance and administration director, said that's not even the worst-case scenario.
Lee presented a scenario in which the state could withhold more than $84 million, taking into account several funding sources that haven't been discussed in Nashville yet.
To make up an $84 million deficit with spending cuts, Lee said the city would probably need to lay off 900 employees, close community centers, parks and branch libraries and make other service reductions. To close a gap that big with property taxes alone would require a 94-cent increase to the city's tax rate of $3.23 per $100 of assessed value, Lee said.
A payroll tax would be another way to help the city cope with reduced state funding, he said. Citing estimates provided by University of Memphis economists, Lee said a 0.5 percent payroll tax would generate $65 million a year. A 1 percent tax would bring in $130 million.
The payroll tax resolution passed by a 6-1 vote. Those voting in favor were: Edmund Ford, Barbara Swearengen Holt, Janet Hooks, Jones, TaJuan Stout Mitchell and Rickey Peete. Brent Taylor cast the only vote against.
The council also passed a resolution endorsing an income tax as the best solution to the state's budget problems.
The vote on that resolution was 5-2, with Jones and Taylor opposed. Although six council members didn't attend Friday's meeting, Peete said the resolutions reflect the council's feelings.
"I feel very comfortable the majority of the council is in support of both these (resolutions) that have been put before us,'' Peete said.
- Blake Fontenay: 529-2386
Budget cuts mean victims continue to suffer, says DA.
By GARREN SHIPLEY
BLOUNTVILLE - A state budget that cuts funding for the district attorneys general will mean more suffering for the victims of crime in Sullivan County, according to the county's prosecutor.
Second Judicial District Attorney General Greely Wells told the region's legislative delegation in a letter last week that potential cuts to his office would end several programs designed to help the victims of crime.
Both the Continuing Adequate Taxes and Services and Downsizing Ongoing Government Services budgets presently under consideration would force the office to cut back its work to only those mandated by law, Wells said.
It would also cut two assistant district attorneys from the office and lose a position that helps victims when they're called to testify.
"Under either scenario I would be forced to dissolve our domestic violence task force, The Front Line, our gang task force, ... our fatal accident reconstruction team, and reduce our participation with the Drug Task Force and the Child Sex Abuse teams," Wells wrote.
Those programs go above and beyond prosecuting criminals, he said, but those efforts help reduce crime and help its victims.
"My office always does much more than that because people want it and demand it," he told the Times-News on Friday.
Losing these programs and a Victim Witness Coordinator would leave the victims of crimes in Sullivan County without any help once they're in the criminal justice system as witnesses.
"That means victims will continue to suffer," Wells said.
Wells said he hesitated to release the letter, but the situation was just too dire - and local legislators hadn't called him back 10 days after faxing the letter.
With a government shutdown pending on Friday night, state employees across Northeast Tennessee had been told to watch local media to find out if they should go to work on Monday.
But Wells said his office was one of the few covered in the "essential services" that will continue to operate if the rest of the state stops working.
Tennessee needs tax reform, Wells said, to ensure that Sullivan County gets the services it needs.
"The quality of life in Sullivan County will be the loser if this is not done," he said. .............. http://www.timesnews.net/index.cgi?CONTEXT=story&BISKIT=1186382793&id=61691&category=6 etus
http://www.knoxnews.com/kns/local_news/article/0,1406,KNS_347_1237568,00.htmlcar tags Car tags, titles may be harder to obtain By Michael Silence, News-Sentinel staff writer June 29, 2002
As a result of the state's financial fiasco, offices where drivers obtain and renew driver's licenses will be reduced from five to two in Knox County, officials said Friday.
The state Department of Safety - in order to reduce annual costs by $250,000 - is terminating its contracts with six counties that offer "express services" on licenses, department spokeswoman Beth Womack said.
Knox County Clerk Mike Padgett said the services at three locations will cease today, and his office likely will lay off 15 people next week.
License services will continue at the Department of Safety's two Knox County locations - one off Lovell Road and the other off Strawberry Plains Pike.
The two other counties affected in East Tennessee are Hamblen and Jefferson. The three remaining counties are Houston, Grundy and Lake.
Padgett estimated the loss of the contract would cost his office "well over" $100,000.
But he said Wanda Adams, head of the department's Driver's License Division, told him that the funding picture could change depending on what the General Assembly does with the budget.
Womack was not willing to go that far, though: "I really can't speak to that. That would be speculation," she said.
She added in the event of a government shutdown, the driver's license and title and registration services would be shut down.
In addition to the downtown office, Padgett operates two satellite offices, one in Halls and one at Knoxville Center.
Michael Silence can be reached at 865-342-6310 or silence@knews.com
it will hurt football
UT shutdown could hurt football team By Mike Griffith, Scripps Howard News Service June 29, 2002
KNOXVILLE - If the University of Tennessee shuts down for the second term of summer school, so might the football team's national title hopes.
"A lot of games and championships have been won as a result of our summer programs," UT coach Phillip Fulmer said Friday. "It's a very important time for our football team."
UT's first session of summer school ended three days early Friday as a result of the threat of a possible government shutdown.
According to a staff E-mail sent by UT vice president and provost Loren Crabtree, the premature end to the first term of summer school was necessary because "the General Assembly's inability to pass a budget has put the university at risk of closing July 1.''
Fulmer said the absence of a second term of summer school would put the Vols at a tremendous competitive disadvantage.
"We need to have a second session of summer school for eligibility purposes," Fulmer said. "There would be some concerns."
According to NCAA guidelines, players must earn 24 hours of credit per year to retain academic eligibility, 18 of which must be earned in fall and spring terms.
Fulmer wouldn't specify which players would be at risk of losing their academic eligibility.
An overwhelming majority of the team - approximately 95 percent - has remained on campus to participate in the Vols' voluntary offseason conditioning program.
"Hopefully, some reasonable men and women will settle this in our legislature," Fulmer said "I do think it will be worked out."
The Vols' football staff received a memo Thursday indicating that they should allow the incoming freshman players to report as scheduled this week. At least 17 of the 20 signees who have yet to enroll in school are expected to arrive Tuesday and attend orientation Wednesday.
Mike Griffith is a staff reporter for the Knoxville News-Sentinel.
Once again legisltures of TN (state and local) WAKE UP..... cut spending, quit duplicating services, drop all the fancy smancy, frilly do dah's from government, and stay the hell out of my pocketbook!
I just did two technology training sessions in Memphis (with less than half the attendence of similar sessions in Nashville). If Memphis implements a payroll tax for work done in the city, you can bet I won't be back.
Watch, next they will predict doom-gloom for the NFL Tennessee Titans if their IT proposal doesn't pass. I think a state government shutdown is the best option right now (the less TN and local governments do, the better off everyone is).
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