TN TAX BATTLE: House-Senat rift widens as state slashes services

BOO HOO THE GOV HAD TO ACTUALLY PHYSICALLY DO WHAT MILLIONS OF HUSBANDS HAVE TO DO ALL OVER AMERICA...CARRY OUT THE TRASH OF THE GOV'S MANSION.

Hey Spendquist give one of your kids an allowance out of YOUR OWN POCKET to take out your trash like the rest of us do.

Haynes has now joined the PRO-IT crowd. Be sure to vote OUT his wife Barbara Haynes when you vote out sen haynes. She is as LIBERAL/SOCIALISTIC as he is.

boss hogg has put the phone in his office that the public uses to access his office on voice mail...but State employees can contact him at 615-741-2144 or you might want to call Spendquist 615-741-2001. Happy dialing.

Thanks Gail, I needed a laugh! I'm so sick of this whole state spending out of control business that's it's nice to see the humor in it for a change.

http://www.knoxnews.com/kns/politics/article/0,1406,KNS_356_1241892,00.html

Legislators still at odds on budget

Senate wants tax hikes; House wants spending cuts

By Tom Humphrey, News-Sentinel Nashville bureau July 2, 2002

NASHVILLE - Taking divergent paths with state government in a partial shutdown Monday, the Senate talked up a new package of tax hikes, while the House turned toward cutting state spending.

Neither chamber took a vote on anything, however, and some meetings were poorly attended. Sen. John Ford, D-Memphis, left town after telling colleagues he did not intend to return for the rest of this week.

"We have lost our sense of urgency," complained House Speaker Jimmy Naifeh in a House floor speech. "The situation is more urgent now, on Monday afternoon, than it was yesterday - and each day that this goes on, there should be more sense of urgency with us."

The Legislature adopted a stopgap budget on Sunday that left more than 30,000 state government and university employees on furlough while keeping "essential services" in place. The stopgap expires on Friday, and another budget of some sort must be in place by then to avert a complete shutdown of state government.

The House has reacted to that situation by giving top priority to putting a yearlong budget in place by Friday even if it means major cuts of existing programs.

House Finance Committee Chairman Matt Kisber, D-Jackson, said the no-new-taxes budget will allow state government to operate on a more normal basis while legislators continue to seek enactment of new taxes to undo the cuts required.

The draft no-new-taxes budget calls for $685 million in spending reductions, including $203 million from kindergarten-through-12th-grade education and $93 million from higher education. MY NOTE there are 95 counties and 50 higher ED facility DO THE MATH)

The size of cuts to K-12 is reduced to $203 million by diverting $170 million in state-shared taxes to education. The funds come from local government's share of funds, from the Hall income tax on some dividends and interest and from beer taxes.

The Senate took precisely the opposite viewpoint, pushing to develop a new package of tax increases with the intention of bringing it to a floor vote today.

The new package, sponsored by Sen. Jerry Cooper, D-McMinnville, is anchored on raising the basic state sales tax from 6 percent to 7 percent. Groceries would be an exception, with the rate for food purchases remaining at 6 percent.

Other elements of the Cooper plan include:

A 10 percent increase in taxes on alcohol and tobacco products.

An increase in the excise tax, which amounts to a corporate income tax, from 6 percent to 6.5 percent.

A "decoupling" of state business tax formulas from following federal law. As part of a recent economic stimulus package, Congress recently approved business tax breaks at the federal level, and since Tennessee tracks federal law on business tax in such areas as depreciation, the state would lose $50 million without "decoupling."

Extending the state sales tax to cover coin-operated amusement devices and vending machines.

Adding $10 to motor vehicle registration fees.

Increasing commercial vehicle fees by 10 percent.

Raising the present $200-per-year "professional privilege tax" levied on licensed professionals, such as doctors and lawyers, to $300 per year and making more professionals subject to the tax.

Raising the "single article cap" on the sales tax from the present $1,600 to $3,200. Currently, the state sales tax applies to the full price of major purchases, while local government sales taxes apply only to the first $1,600. The bill would give the resulting new revenue to the state. The Cooper package would net an estimated $938 million in new revenue. The Senate Finance Committee debated the measure Monday afternoon, and Cooper hoped that if the bill is approved this morning, it would be sent to the floor for a vote later today.

The panel adjourned Monday afternoon with debate under way on a proposal pushed by Sen. Steve Cohen, D-Memphis, to amend the bill by adding a 3 percent sales tax to gasoline and diesel fuel. Gasoline is now taxed at 21 cents per gallon, with funds earmarked for the state road program, but there is no sales tax on fuel.

The move, which would generate $160 million, touched off spirited debate but did not come to a vote as two committee members left. Ford, also a member of the committee, never appeared.

Earlier in the Finance Committee meeting, Sen. Tim Burchett, R-Knoxville, proposed an amendment that would have diverted $191 million from the state's highway fund to the general fund.

Department of Transportation official Mike Shinn said that would cut DOT funding by 30 percent, prompting elimination of funds for mass transit and aid to local governments for roads and other projects. Kent Startwalt, executive director of the Tennessee Road Builders Association, also opposed the proposal in testimony.

Sen. Bob Rochelle, D-Lebanon, jokingly proposed that Burchett's proposal be revised to provide that "98 percent of all (highway construction) money be spent west of Knox County."

At that point Burchett declared that "my unscientific poll" of committee members indicated the idea would be killed. He then withdrew his amendment.

Tom Humphrey may be reached at 615-242-7782 or humphrey@edge.net.

lawmakers hold ut sports hostage

http://www.knoxnews.com/kns/goladyvols/article/0,1406,KNS_288_1241934,00.html

So much for their claims that "edukashun is number won with me".

They're going to shove that 4.5% income tax down your throat one way or another , aren't they? That attempt to force it on you even if you voted against the Constitutional Convention was outrageous, you need a rope and a good tree branch for legislators like that.

http://www.timesnews.net/index.cgi?CONTEXT=story&BISKIT=1186382793&id=61790&category=63

I LOVE THIS SIGN

This sign was posted on a local government office door Monday.

Tennessee shuts down all nonessential services amid continuing budget crisis

By TIM WHALEY

Tennessee literally rolled up the welcome mats Monday, barricading welcome stations and rest stops across the state as the continuing budget crisis closed all nonessential state services.

Among the more visible of shutdown services were the welcome stations, a disconcerting development for motorists in need of a pit stop who were instead confronted by barricades at welcome centers and rest stops.

Also very evident was heavy equipment designed for earth moving that stood idle in Boones Creek and across the state.

At East Tennessee State University's Quillen College of Medicine, Dean Ronald Franks said third-year medical students will likely be sent home Wednesday.

Fourth-year students will continue their residencies providing medical care at home and elsewhere in the country, as the medical school runs on reserve funds.

"It would be too difficult and too burdensome for their patients to pull them back in off their rotations," Franks said.

Also, most federal and privately funded research continues, although those on state funding projects have been curtaied.

Franks did say that most doctors who teach are willing to continue their lessons for students, although they won't receive the state portion of their checks.

"Nobody is very happy about this," Franks said. "It's our feeling that the job didn't get done in Nashville and that there has been plenty of time to get the job done.

"This is just hurting our community, our students and our faculty, and they're not involved in politics. They're just wanting to move on with their education and their lives."

Franks said the medical school, like its parent, ETSU, is running on reserves for a few days in hopes that the General Assembly will solve the problem - and replenish depleted reserves once the budget is funded.

The fallout wasn't felt at ETSU alone.

Workers at local offices of the state planning office, commerce and insurance, health department and even environmental regulatory agencies were furloughed.

Mark Braswell, administrator at the state Environmental Assistance Center serving Upper East Tennessee, was left with only four of 65 staff members.

"We haven't gotten any emergencies so far today, but basically business has pretty well stopped," Braswell said.

The assistance center houses seven divisions, and only solid waste, Superfund and water pollution control were represented.

That left the divisions of groundwater protection, air pollution control, drinking water supply, and underground storage tanks unmanned.

In Nashville, state Rep. Ken Givens, D-Rogersville, said lawmakers were hearing about real estate and other transactions hindered because no inspectors were available to test wells or test new septic systems.

Melanie Catania, in Gov. Don Sundquist's press office, said each state department was left with at least a "skeleton crew."

"The essential services bill keeps open those offices with services pertaining to health and safety," Catania said. "Each department has a skeleton crew that varies in size by department depending on how much their mission protects health and safety of the public."

That leaves other departments, such as Economic and Community Development and Tourism, with only a staffer or two since promoting the state isn't considered an "essential" service.

The fallout also hit more than direct state services.

Sullivan County was lucky compared to some counties, as its government operations are largely self-sufficient.

"Most of our services can be provided without interruption," said County Executive Gil Hodges. "Those services that the county provides on behalf of the state of Tennessee may be impacted by the inability to communicate with the respective agencies of state government."

But Hodges said not to try to get a subdivision approved without sewer service until the government reopens.

Getting routine health care from the state is difficult in rural counties as well.

Of the state's 95 counties, only Sullivan, Knox, Hamilton, Davidson, Jackson and Shelby counties have fully functional health departments until the money starts flowing again, according to the Department of Health.

A spokesperson said all others were providing only "basic emergency services" - treating illnesses and issuing essential documents like burial permits.

That's not to say things are normal at the remaining metro departments. >{? Eleven employees at the Sullivan County Health Department had to stay home on Monday, forcing the department's Kingsport office to all but shut down.

Director Gary Mayes said the employees on furlough were primarily nurses and clerical support.

"We've closed some clinics in the Kingsport office and reallocated resources to the Blountville office," he said. "We're trying to see our patients there. So far, we're still able to provide all the services at the Blountville office and very minimal services at the Kingsport office."

As word spreads that Sullivan County's office is open, more and more people will start making their way to Blountville for treatment, Mayes said.

That had already started on Monday, he said, and would likely get worse if the shutdown drags on.

"We're not sure what the full impact of that is going to be yet as people learn that we're open," he said.

The legal system hardly found immunity under the essential services clause either.

District Attorney General Greeley Wells said 11 of his employees in the child support division were told to stay home Monday by the Department of Human Services.

The division attorney worked because she had cases scheduled in court, Wells said, and one employee was allowed to work to ensure child support payment orders were entered so the recipients could get their money.

The remainder of Wells' employees were funded under the weeklong essential services extension.

State judges offices are also covered under that plan, and court in Blountville went on as scheduled.

But other offices, such as juvenile services and the parole and probation departments, reportedly had some employees who are not included in the essential services bill and will not work until the budget crisis is resolved.

I'm glad to see some one besides me read that same thing into Fowler's Foul Plan.

http://www.timesnews.net/index.cgi?CONTEXT=story&id=61786&category=63

Former and aspiring governors say shutdown embarrassing but disagree on a solution

By ELIZABETH A. DAVIS Associated Press Writer

KNOXVILLE, Tenn. - Former and aspiring governors from both parties agreed that the partial shutdown of Tennesssee government on Monday was an embarrassment.

But they didn't agree on how legislators should resolve the state's financial woes to balance the budget.

Winfield Dunn, a Republican governor from 1971-75 who celebrated his 75th birthday Monday, said he wasn't surprised the Legislature didn't pass a budget in time.

"We were headed that way. There has been so little statesmanship and leadership demonstrated by our representatives over time that the outcome was almost predictable."

Republican gubernatorial candidate Van Hilleary held a news conference at the University of Tennessee, where summer school was cut short because of the budget impasse.

He criticized House Speaker Jimmy Naifeh for trying to pass an income tax and urged him to "accept defeat and work for a middle ground approach."

"For weeks Jimmy Naifeh has stood in the way of compromise in an effort to pass an unconstitutional, job-killing income tax. He and the powerful few have blocked every reasonable option until critical deadlines have come and gone and are now passed," said Hilleary, a four-term congressman.

Lawmakers had until midnight Sunday to approve a budget and resolve an $800 million shortfall or face a government shutdown. The House and Senate remain divided between supporters and opponents of an income tax.

A resolution looked possible Sunday after the Senate passed a bill sponsored by Sen. David Fowler, R-Signal Mountain, that would have raised the sales tax and allowed voters to decide in November whether they wanted a constitutional convention on taxes. The House voted against it an hour short of midnight Sunday.

Jim Henry, perceived as Hilleary's only rival for the Republican nomination, said he thought the Fowler plan was a good solution.

He advocates a constitutional convention for tax reform and supports extending the sales tax to items currently exempt.

"There is only one candidate in this race - and that's Mr. Hilleary - that doesn't recognize that there's a revenue problem here. Sure, we can affect some economies in state government and we can do some cutting and we should," Henry said. "But I don't think you're going to be able to save enough money that you're not going to need new revenue sources."

Former Nashville mayor Phil Bredesen said Sunday at a debate between Democratic gubernatorial candidates that finding a new revenue source was necessary.

"Given the hole we are in I think that's what we are going to have to do," said Bredesen, who declined to say which taxes he would raise. He does not support an income tax.

Hilleary didn't say what he would support if cost-cutting didn't solve the deficit.

"All I can tell you is, I'm not there. I can't fix it right now, but I can say this: I know what's wrong. An income tax, something people don't want, that a minority of powerful few in Nashville keep on insisting on, is not the way to go," Hilleary said.

Lamar Alexander, a Republican candidate for U.S. Senate and Tennessee's governor from 1979 to 1986, declined to say much about the budget problem.

"As a Tennessean, he is disappointed with the situation," his spokesman Josh Holly said. "As a former governor, he has made it a point not to meddle in the affairs of his successors."

http://www.timesnews.net/index.cgi?CONTEXT=story&id=61801&category=63 Bredesen, Hilleary offer input on state budget crisis

By TIM WHALEY

Democratic gubernatorial candidate Phil Bredesen called on Tennessee's governor and legislature to enact a compromise budget with cuts and a temporary revenue increase, while Republican hopeful Van Hilleary said he was staying out of the fray as long as an income tax is not involved.

Bredesen issued a press statement indicating that the budget crisis has moved from a "political battle" to a situation where "real people" are being hurt.

"It's clear that people don't want a major new tax, and it's clear that the state can't cut in a few days the amount of money it would take to balance our budget," Bredesen said in the statement. "I hope that the governor and the legislature will quickly find a middle ground solution, with some cuts and some new revenue to allow the state to continue operating and give a new governor a chance to make a fresh start."

Bredesen's press secretary, Lydia Lenker, said Bredesen remains staunchly opposed to an income tax.

However, given that the state has gotten into "such a hole," it's now "clearly apparent" to Bredesen that some new revenue is necessary to temporarily patch the budget long enough for a new governor to be elected and take office, Lenker said.

Lenker also said Bredesen will not be recommending a specific revenue increase.

Hilleary's press spokeswoman, Jennifer Coxe, said Hilleary is staying out of the decision-making in Nashville as long as an income tax is not involved.

"Van wrote the legislators earlier this year, and he told them he would not second-guess what they had to do unless they pursued a job-killing income tax," Coxe said. "At this point in time, all the options are painful. Today, Van reiterated his belief that the income tax is not the solution and that he will not second-guess the legislature's solution to this very difficult situation."

Coxe also said Hilleary will not be offering his own suggestions on revenue and/or cuts to solve the problem.

Instead, Hilleary issued a statement outlining a five-point plan that defines his approach to governance.

Those points include always submitting a balanced budget without the use of non-recurring revenue; establishing an independent auditor to identify waste, fraud and abuse; and making decisions about the tax structure "with regard to their impact on economic growth."

However, most lawmakers have indicated that they believe raising the sales tax will simply drive more retail sales across the state's borders or onto the Internet to avoid sales taxes when possible.

Instead of offering a solution, Hilleary said in his statement that House Speaker Jimmy Naifeh, D-Covington, has blocked "every reasonable option" to balance the budget without an income tax.

"The people of Tennessee deserve an orderly government - one that lives within its means, pays its bills on time and performs its tasks reliably," Hilleary said.

HAVE YOU BEEN EFFECTED BY THE GUBERMINT SHUT DOWN?

POLL

"...trash piles up as lawmakers fail to take out the trash..."

But what would they do without Jimmy Naifeh?

"The panel adjourned Monday afternoon with debate under way on a proposal pushed by Sen. Steve Cohen, D-Memphis, to amend the bill by adding a 3 percent sales tax to gasoline and diesel fuel. Gasoline is now taxed at 21 cents per gallon, with funds earmarked for the state road program, but there is no sales tax on fuel."

What absolute bullsh*t!
You sell me something, and tax me on that sale, that's a "sales tax"!

No wonder the state's finances are so screwed up! Legislators don't even know what a "tax" is.

Testing out an All Tennessee Ping list - let me know if you want on or off... the location board announcement box is blocked by the confrence announcement, at least for me.

Thanks Nora!

On Sunday, the Senate approved a tax plan sponsored by Sen. David Fowler, R-Signal Mountain, that would give voters a chance in November to choose between a higher sales tax rate or a state income tax.

heh If they vote for the income tax they'll get both an income tax and a sales tax. Politicians are running out of tricks

Put me on it.

put me on the list

Add me also. Thanks.

Please add me to the list. Thanks!

Please include me. And thanks.

I want to be on your list also.