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TENN: Both unity, discord face legislature (funding/taxes)
The Knox News Sentinel ^ | 1/12/03 | Tom Humphrey

Posted on 01/12/2003 7:02:17 AM PST by GailA

Both unity, discord face legislature Funding woes still at top of long list

By TOM HUMPHREY, tomhumphrey3@aol.com January 12, 2003

NASHVILLE - The 103rd General Assembly dawns this week with legislators indicating unity against new taxes, partisan discord over power positions and unease about the state budget.

There are 21 new representatives and five new senators. When inauguration day comes at week's end, there will also be a new governor, Phil Bredesen.

But with Democrats holding control in all branches of state government for the first time in eight years, a majority of Republican representatives are poised to make a symbolic gesture of defiance against the long rule of House Speaker Jimmy Naifeh.

Traditionally, Republicans - with the notable exception of Knoxville's Rep. Bill Dunn - have joined with Democrats in voting for Naifeh as speaker on the first day of session.

Barring a change of heart during a House Republican Caucus meeting on Monday, however, House Minority Leader Tre Hargett will be formally nominated as an opponent to Naifeh when the first day of the 103rd session arrives Tuesday.

"I think the Republican Party has an obligation to bring forth alternatives, both of policy and of leadership," said state GOP Chair Beth Harwell, who is also a state representative from Nashville.

Hargett says he has not actually decided whether to accept the nomination. Even if he declines, many Republican representatives indicate they will follow the course Dunn chose in the past - simply abstaining from the vote on Naifeh as the only candidate.

The move has caused a split in Republican ranks, with at least six saying they would vote for Naifeh over Hargett, according to reports filtering out of a secret Republican caucus gathering.

With Democrats already holding a 54-45 advantage in the House, Hargett has no hope of actually beating Naifeh without Democratic support that has not publicly materialized.

Some members of the GOP's conservative wing have raised the possibility of any Republican voting for Naifeh facing political retaliation when the time comes to seek re-election.

Harwell said she opposes any retaliation and believes that Republicans will work cooperatively with Naifeh, Bredesen and other Democrats. Hargett offered similar sentiments.

"Ultimately, they'll all come together and do what's right for this state," she said. "I don't believe we're going to force the state into any kind of gridlock."

The Legislature spent the better part of the past four years in gridlock over taxes and spending, culminating in the enactment last July of the largest tax increase in state history - estimated at $933 million per year.

That experience has virtually eliminated the prospect of any further tax increase for 2003. Bredesen has pledged to avoid a tax increase, and most legislators have done the same. Naifeh, who last year crusaded for an income tax and wound up voting for the tax increase that passed, comes pretty close.

"It is fair to say that I am absolutely committed to a budget within the confines of the revenues we have available. No games," Naifeh said. "That is going to require some sacrifices.

"I'm not saying I know today there are going to be layoffs and across-the-board cuts, but they are definitely on the table," Naifeh said.

Lt. Gov. John Wilder, who will be re-elected speaker of the Senate with unanimous support of both Republicans and Democrats, has also indicated opposition to tax increases and says his focus this year will be on finding new efficiencies in government.

There remains some sentiment for a long-term effort at resolving problems with the state's tax structure. A new study commission has been named to make recommendations by 2004, and some prominent people, including Attorney General Paul G. Summers, have urged that the Legislature act promptly to begin the years-long process of allowing a statewide vote on amending the state constitution's tax provisions.

The beleaguered TennCare program is once again the focus of budget-busting worries, thanks to a federal judge's ruling that could put about 200,000 people back into the program. The decision deflated expectations raised last year that the worst of TennCare problems had been resolved by legislation and a new waiver granted by the federal government.

If that ruling should be upheld, it would cost the state an estimated $300 million just in the current fiscal year, which ends July 1. The cost would increase in the following year.

A federal appeals court is considering the state's appeal of the ruling and a decision is expected soon.

Even if the state dodges that budget bullet, other financial considerations remain for lawmakers.

The state Supreme Court last fall ruled that public school teacher pay - which now varies as much as $10,000 per year between the richest and the poorest counties - must be equalized. Although the court set no deadline, some legislators feel that to avoid further litigation, a good faith effort needs to be made by the Legislature this year even if the problem is not fully resolved.

"I think the pressure is on to take some action this year," said Senate Republican leader Ben Atchley of Knoxville.

Estimates of the cost for teacher pay equalization vary dramatically - from around $40 million to more than $400 million, depending on the formula that's followed. Atchley is among those believing "something in the lower end" would suffice.

There have also been concerns that a stagnant economy would mean lower tax revenues than were projected when the budget was adopted. Those were eased somewhat last week with reports that December tax collections were much improved, leaving the state's general fund just $15.2 million under expected revenue at this point and the highway fund ahead of projections by $21 million.

The budget crunch raises the prospect of debate being renewed on whether to raid some dedicated government funds, such as those earmarked for highway construction of subsidies to city and county governments.

There is also potential for conflict over putting a state lottery in place, now that voters have repealed the longstanding ban on such things in Tennessee. A Tsolid majority seems to favor of following the voter mandate in general, but there is disagreement over specifics, such as limits on college scholarships to be funded by lottery profits.

Pro-life advocates are renewing their push to negate a state Supreme Court ruling that says the Tennessee Constitution grants women a broader right to abortion than does the U.S. Constitution. The Senate voted last year in favor of authorizing a constitutional amendment referendum to accomplish that objective, but the House did not.

A renewal of continuing controversy over legislative reforms - such as requiring that all votes be recorded and that the Legislature be subject to the state's open-meetings law - can be expected.

And there are always other controversies that may arise on topics such as a proposal to ban the use of cell phones in cars, revise the adult-child ratio required in day-care centers or change laws dealing with campaign finance and elections.

But as the session begins, legislators and Bredesen alike are voicing optimism that the session will be swift and sweet, at least by the standards set in recent years. The target for adjournment is early May.

After Tuesday's opening, the rest of the week will be devoted to organizational matters, including the appointments of committees and their chairmen.

Naifeh has left open the possibility of reversing his long-standing decision to give committee officer positions only to Democrats. Last week, with the possibility of Republicans making a symbolic show against him looming, he would not talk about the matter.

"I couldn't answer that because I haven't been elected speaker yet," he said.

Tom Humphrey, chief of the News-Sentinel Nashville bureau, may be reached at 615-242-7782.


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Extended News; Government; Politics/Elections; US: Tennessee
KEYWORDS: budgetcrisis; incometax; nea; tenncare; tennessee
Revenue has been UP the past 5 months and still they scream there is NOT enough. Hobbs
1 posted on 01/12/2003 7:02:17 AM PST by GailA
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To: GailA
I'm certainly not looking forward to having a Dem governor, but after Sundtax, how do I defend the Repubs to my friends? And didn't he just name Rochelle (of all people) to a committee looking for sources of revenue?
2 posted on 01/12/2003 10:13:17 AM PST by Chad
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To: Chad
Yep. all the tax commission are PRO-INCOME TAX. ALL WHITE MEN to boot.
3 posted on 01/12/2003 1:15:45 PM PST by GailA
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To: Chad
Just left your friends know that Sundquist is no Republican. He is a RINO. A Democrat posing as a Republican. He was always close to the West Tennessee Democratic machine (Ford, Naifeh, Kisber, etc.). Sundquist is no more Republican than Jumpin Jim Jeffords up in Vermont of Lincoln Chafee in Rhode Island.
4 posted on 01/12/2003 1:54:30 PM PST by JDGreen123
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