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Agents Raid Education Networks Of America There’s been another dramatic development in the investigation of alleged insider contracts handed out by the Sundquist administration. Friday, federal and state agents raided a Nashville company with close ties to the governor. Agents backed a van inside the offices of Education Networks of America, trying to keep a lid what might be the most dramatic moment yet in the federal and state criminal investigation of alleged insider contracts. Through the window, investigators were seen hauling away boxes of evidence. Two longtime friends of the governor, John Stamps and Al Ganier, formed ENA, an...

Governor builds contingency plan if budget fails deadline Sundquist says Tenn.crisis would be biggestsince the Civil War By Richard Locker and Paula Wade locker@gomemphis.com wade@gomemphis.com June 26, 2002 NASHVILLE - Sundquist Administration officials are scrambling to put together a plan to continue essential state services in the event that lawmakers can't pass new revenue or a budget balanced with cuts. ''If there is no budget, it will be the biggest crisis in Tennessee since the War Between the States,'' said Gov. Don Sundquist, who said he will brief legislative leaders on his contingency plans today. ''It's a tragedy that it...

Bashing, smashing part of campaign fare By Tom Humphrey, News-Sentinel columnist June 9, 2002 Since the fastest-growing political sport in Tennessee these days is Sundquist smashing, it is appropriate to have some means of judging the heated competition. You have surely noticed the Sundquist-smashing phenomena, which is second only to fighting the dreaded and evil income tax (IT) in overall popularity among pandering Tennessee politicians. An argument can be made that lambasting legislators is also on the upswing in popularity. It is entertaining spectator sport to watch legislators calling each other names such as "do-nothing" or "income tax hound." But...

Sundquist feels he has acted correctly By Karin Miller, Associated Press June 9, 2002 NASHVILLE - In his final year as governor, taxes still mean trouble for Don Sundquist, a staunch tax opponent turned income tax champion. When Sundquist first entered office in 1995, the Republican was so anti-tax that he angered Democratic lawmakers who control the General Assembly by refusing to sign bills that allowed cities and counties to raise their own taxes. After his re-election to a second and final term in 1998, he said the state needed new tax revenue and eventually announced his support for an...

Flawed Study Misleads Tennessee Taxpayers A study released last Friday in support of a proposal to institute a broad-based state income tax overlooks a great deal of existing research pointing to the dangers of such a plan. "Supporters of Speaker Naifeh's income tax plan would rather mislead Tennesseans with flawed statistics than confront the real source of Tennessee's budget problem: their own bloated spending habits," said NTU President John Berthoud. "In fact, a mountain of evidence shows that a state income tax would fuel government, stall the economy, and leave all Tennesseans with a bigger tax bill." Read more by...

<p>Efforts to gain votes for the income tax appeared to hit a snag after withdrawal of support by some members of the legislative Black Caucus.</p> <p>As a result, the Senate Commerce Committee yesterday threatened to dissolve a state agency at the heart of the conflict.</p>

<p>House Speaker Jimmy Naifeh geared up yesterday to make his 4.5% flat-rate income tax proposal more attractive to House members by including tax increases on cigarettes and alcoholic beverages.</p> <p>The move came as a counter-proposal, taking a different twist on the state sales tax, ran into trouble because of wobbly revenue projections and was sent back to committee by the sponsors.</p>

Sales tax expansion legislation stalls in Tennessee House By TIM WHALEY KINGSPORT - Tax-protesting motorists, a threatened walkout by a crucial block of votes and, ultimately, no House tax votes Wednesday. Must be spring in Tennessee. As the annual budget crisis arises again - although with even more serious implications than in past years due to a lack of reserve funds - horn-blowing motorists serenaded lawmakers in Nashville Wednesday morning. Meanwhile, at least 12 key pro-income-tax votes in the Black Caucus threatened to walk out Wednesday unless the delegation saw the establishment of a minority member of the Tennessee Regulatory...

No new money, no reading initiative Lawmakers tie education plans to tax action By Tom Sharp, The Associated Press May 16, 2002 NASHVILLE - Gov. Don Sundquist's reading initiative, the most expensive new program in his budget proposal, will remain unfunded for the second straight year unless the legislature passes a tax bill to help raise money for it, lawmakers said Wednesday. The Senate Education Committee voted unanimously to recommend to the Senate Finance Committee that it limit education spending next year to this year's level and whatever is needed to accommodate enrollment growth. This year's Basic Education Program appropriation...

Though fewer than last year, Capitol protesters just as vocal By Rebecca Ferrar, The Knoxville News-Sentinel May 16, 2002 NASHVILLE - Despite days of urging by radio talk show hosts, turnout at Wednesday's anti-tax rally at the State Capitol was relatively skimpy by past standards. During the morning rush hour and in the afternoon as the General Assembly convened with the possibility of floor votes on two tax reform measures, the number of pickets on the sidewalks swelled to just over 200 at any one time. They were joined by scores of horn-honking motorists circling the block across from the...

<p>With a vote on a state income tax possible next week in the House, new details about the legislation are surfacing, including plans to impose a temporary 1% increase in the state sales tax and increases in other taxes, including the tax on a pack of cigarettes.</p>

Threats, rage ratchet up tensions on Capitol Hill By Rebecca Ferrar, The Knoxville News-Sentinel May 10, 2002 NASHVILLE - As a proposal for a state income tax works its way through the legislature, the rhetoric and tension on Capitol Hill is mounting. The Tennessee Bureau of Investigation has questioned a man about a death threat Tuesday against House Speaker Jimmy Naifeh, who has proposed the plan. Other lawmakers said they have received less threatening calls at home. And an anti-income tax group issued a "terrorist alert" against Naifeh (D-Covington), Gov. Don Sundquist and Sen. Robert Rochelle (D-Lebanon), a leading income...

Sales tax bailout a no-go in House Stopgap fails, deficit grows By Paula Wade wade@gomemphis.com April 24, 2002 NASHVILLE - House members rejected an urgent appeal Wednesday by Gov. Don Sundquist to pass a temporary one-cent sales tax increase to counter the state's ballooning deficit. Sundquist, a longtime opponent of a sales tax increase, pleaded for the temporary hike because of the state budget crisis. The current-year deficit has grown from about $350 million to an estimated at $480 million - an amount greater than the sum of the state's readily available reserve funds. "As much as I hate a...

Almighty Don intervenes in Tennessee elections By WATT CHILDRESS In just seven months Tennessee citizens will give a new governor the chance to redefine leadership in Nashville. The reign of Governor Don Sundquist will end, but that fact hasn't stopped the lame-duck Republican from giving marching orders in state elections. Sundquist recently told candidates for governor they should keep quiet about the state budget, for example. Then he urged voters not to re-elect lawmakers if they fail to collect more money for government. He also blasted conservatives for focusing criticism on a state legislator who leads the statewide campaign for...

<p>Gov. Don Sundquist applauded college students who held a bake sale for higher education on the War Memorial Plaza yesterday, saying the money they raised was not much, ''but it is a whole lot more than the General Assembly has passed.''</p>

Governor: Throw them all out if lawmakers don't find revenue By BILL POOVEY Associated Press Writer CHATTANOOGA, Tenn. - Gov. Don Sundquist offered some advice to voters if Tennessee lawmakers fail to agree on a new revenue measure and settle for deep spending cuts. "I think they ought to throw them all out if that's what happens," Sundquist said. Sundquist made the comment after speaking at a ceremony for a new industrial park northeast of Chattanooga. Seventeen of 33 state Senate seats and all 99 House seats are on the ballot Nov. 5. State government faces a $350 million shortfall...

<p>The state Senate systematically began clearing away proposals to increase taxes yesterday in preparation for a flat-rate income tax plan Senate leaders expect will come from the House.</p> <p>Among tax proposals to stall yesterday were a 2% flat-rate income tax, a plan to increase the state's car tag tax, a bill to repeal a tax break on aviation fuel and one to revamp the state's tax structure by doing away with the 6% state sales tax and replacing it with a 6% flat income tax.</p>

Budget cuts could slash STCC faculty College tells 24 teachers to prepare for the worst By Ruma Banerji banerji@gomemphis.com April 5, 2002 Threatened cuts in the state's higher education budget could cost two dozen teachers their jobs at Southwest Tennessee Community College. The college has notified them they will lose their jobs on June 30 if its budget is cut and the governing Board of Regents does not allow a 15 percent tuition increase. The teachers work on year-to-year contracts without the job security provided by tenure. The dismissals would abruptly end two of the most popular programs in the...

<p>Thirteen now-shuttered state parks could reopen in a matter of days after the legislature yesterday approved shifting $900,000 out of the state parks land-acquisition fund.</p> <p>The House and Senate also approved spending an additional $1.9 million for ''homeland security'' measures, bringing total state spending on that effort to nearly $10 million since Sept. 11.</p>

Tennessee Business Roundtable endorses tax reform By TIM WHALEY KINGSPORT - Tax reform proponents received a shot in the arm Tuesday evening when the Tennessee Business Roundtable announced its endorsement of tax reform and election support for lawmakers and candidates who endorse tax reform efforts. "The board of directors discussed it, and we realized that we needed to take a leadership position on the issue of tax reform," said Ellen Thorton, executive director of the roundtable. "And if tax reform includes a personal income tax, then we can in fact support that. We must look at all components of tax...