Woods said that we are about $500 million in the hole that must be closed by June 2003. He said Bredesen is determined to balance the budget for this year without any tax increases and if that means employee furloughs or massive program cuts, so be it. Woods said the $300 million for TennCare could be 1/3 State and 2/3 Federal as the program is setup. He thought there was little chance that Washington would be willing to kick in $200 million. Either way, we pay the bill.
I think Woods gave away their strategy later by saying that in politics you do not try to help the ox until he is completely in the ditch and nearly dead. Meaning: Let the problem get so bad that people will demand higher taxes or policy changes to fix the problem.
This strategy may backfire on them however. If massive cuts are made, the people may be quite happy with less government. The media though will be out there with sob stories every day of how these massive cuts are "hurting" Tennessee.
I think this is the strategy that Bredesen is going to follow.
Tom Humphrey was also a guest. He feels there will be a constitutional conference in 2 years with an income tax placed on the ballot for voters to decide in 2006.
We also have the Frist factor. Bush's new Medicare plan to be unveiled next week is supposedly what Frist designed. Whether it helps or hurts our situation remains to be seen.
Yet illegals, state employees, inmates, out of staters, and out of country can get it.