May 4, 2006                                   

From Mark’s Desk 

“Robbing Peter to Pay Phil?”

Dear Friends,

Here’s some fuel for thought. Next time you pay $3 plus to “Phil ‘er Up” at the gas station, ask yourself why Phil Bredesen thinks we have a gas tax in Tennessee.

Nearly two weeks ago, the Governor told reporters that restoring gas tax revenues in the Tennessee transportation fund is “money we don’t have.”

Yesterday, the Governor reported the state has an unexpected windfall of not less than $116 million. It could be as much as $178 million.

Why does he want to continue diverting your gas tax dollars to new entitlement programs having nothing to do with infrastructure or transportation?

The Governor’s budget for next year proposes to divert another $43.4 million in gas tax revenues from the transportation fund. He’s already taken $217 million since becoming governor. You pay about 21 cents on every gallon of gas you buy to pay for roads, bridges and public transportation among other transportation needs in this state. It is what has traditionally made us a “pay as you go” state rather than one which borrows to maintain infrastructure.

The Governor says restoring the road fund will wreck the state’s finances. It’s hard to see how. Especially with this week’s “windfall.”

If the governor doesn’t think we need the gas tax for transportation funding, then why not reduce the tax?

We are not asking for new funds. We’re asking for the Governor to shoot straight with taxpayers. And we’re asking him to put your money back where it belongs.

Norris Sets the Record Straight on Diversion of Road Funds

Defends Need to Restore $43.8 million for State’s Needs 

NASHVILLE -- Senator Mark Norris (R-Collierville), Chairman of the Senate Transportation and Safety Committee, defended a Committee budget amendment restoring the road fund in letters to the Tennessee Business Roundtable and Governor Bredesen.   

In an address to the group last week, Gov. Bredesen said the Committee had “tacked on another $44 million” without “any plan for where the money is to come from.”  In his letter, Norris references a “material misrepresentation” in the Governor’s speech.  

“The Governor describes the restoration as ‘money we don’t have’ which is misleading,” Norris said.  “This money accrues to the state with every gallon of gas sold.  It’s money he has collected, but he chooses to spend it elsewhere. I wonder if Tennesseans know they are pumping gas for Pre-K every time they fill up?”  

Norris described levying a tax for one purpose but using it for another as irresponsible. 

“If the governor needs new revenue for new programs, then he should make that case to the taxpaying public and not divert funds from their intended purpose,” Norris said.  “If the Administration has determined that the tax is no longer necessary for transportation, then the governor should reduce the state gasoline tax.” 

Tennessee’s gasoline tax was established in 1923 under Gov. Austin Peay’s administration to support transportation.  Norris said Tennesseans are paying record-high prices for gasoline while 21.4 cents per gallon is supposed to be dedicated to Tennessee transportation needs. 

The Committee’s bi-partisan decision to amend TDOT’s budget requires the Administration to utilize the gasoline tax in the manner for which it was assessed.   

Norris also referenced the continued taking of dedicated road funds. 

“The Governor began taking funds when he came into office and the state was in a pinch.  His desire to continue funding programs unrelated to transportation is, in effect, an unwarranted tax,” Norris said. 

Gov. Bredesen also announced during his speech last week he would veto any legislative effort to restore the road fund.   

Citing a recent study reporting that Tennessee is falling behind in funding essential needs in schools, transportation and utilities, Norris said that approximately $217 million dedicated to transportation has been diverted for other purposes.   

In addition, the Federal government recently rescinded more than $76 million without notice leaving a shortfall for scheduled projects which are now in jeopardy. 

“The Bredesen Administration is robbing Peter to pay Paul,” Norris said. “As the price of gas nears $3 a gallon, I think the public would be shocked to know they are paying at the pump for new entitlement programs wholly unrelated to transportation.”

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Film Location Bill Passes Committee 

NASHVILLE – Legislation to attract motion picture production to Tennessee unanimously passed the Senate Government Operations Committee on Wednesday. 

Senate Bill 3513, cosponsored by Senator Mark Norris (R-Collierville), provides economic incentives to encourage Tennessee’s industrial growth in motion picture production. 

“There are significant benefits for the state, in addition to the visibility alone,” Norris said.  “These projects bring with them large economic benefits.” 

Norris said the projects also bring various job opportunities for Tennesseans and production companies. 

“Good jobs stem from this industry, and competition for projects has become more intense between the states,” Norris said.  “It’s time we treat film and television productions like any other revenue-producing industry in Tennessee.” 

Known as the “Visual Content Act of 2006,” the bill is being scheduled for a full vote on the Senate floor. 

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Cover Tennessee Draws Criticism

Over Use of One-Time Money 

NASHVILLE—The governor’s showcase Cover Tennessee Plan, Senate Bill 3895, continues to lack sufficient support to advance in the Senate because it lacks details.  This week the measure came under intense scrutiny in the Fiscal Review Committee.  The Senate Commerce Committee, already shut down for the year, reopens on Monday to hear bills pertaining to the proposed plan. 

Last week, the administration bill failed to garner enough votes for a favorable recommendation in the Senate Government Operations Committee.  The bill received only five favorable votes on the 11-member Committee with all six Republicans abstaining from supporting the bill at this time due to the continued lack of details and growing concerns over the use of one-time money to fund it for the first three years under a tax deferment scheme. 

If the devil is in the details, the lack of details presented by the Administration so far on the Governor’s Cover Tennessee Plan is preventing legislators from determining whether or not the plan is a good idea for the state in the wake of TennCare. 

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Burchett Bill Targets Sex Offender Assets           

Senate Bill 3245, sponsored by Senator Tim Burchett (R-Knoxville), moved through the Senate Judiciary Committee this week to target assets used in the commission of sexual offenses against minors.   

“If we start taking their vehicles and other assets used in the commission of these horrific offenses, we can try to put the brakes on sexual perpetrators,” stated Senator Burchett.  “At least, we can make it more expensive for them until we can get them locked up and out of our society. 

“The money will go to Child Advocacy Centers which are grossly under-funded throughout the state.” 

The bill would authorize state and local governments to seize a vehicle or real property used in the commission of sexual offenses against minors.  Additionally, vehicles, aircraft, or vessels could be seized from those who commit other sexual offenses. 

According to the Tennessee Bureau of Investigation Crime Statistics for 2004, there were 4,007 incidents of sex offenses against minors. 

The measure now goes to Senate Finance, Ways and Means Committee because it is anticipated that the bill would bring in over $4 million annually to local governments and over $100,000 to state government. 

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Sunshine Law to Undergo Summer Study 

Senate Bill 2471, sponsored by Senator Randy McNally (R-Oak Ridge), unanimously passed the Senate Wednesday, in an amended form, to have a special 16-member panel study the issue of government openness and accountability after the end of regular session and report back to the General Assembly next year. 

This approach gives all interested parties an opportunity to work together to give open government laws clarity and make them enforceable.  The sponsor plans to bring the issue of government openness and accountability back up next year in the 105th General Assembly. 

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House Warms to English Driver’s License Exams  

House Bill 242, the House companion to Senate Bill 303, sponsored by Senators Bill Ketron (R-Murfreesboro), Jeff Miller (R-Cleveland), Steve Southerland (R-Morristown), and Raymond Finney (R-Maryville), advanced this week in a key bipartisan vote in the House Transportation Committee.  The measure now goes before the House Finance, Ways, and Means Committee. 

The Senate passed the bill last Wednesday (April 19) in an 18-14 party line vote to require the Department of Safety to give the written driver’s license examinations in English.  All Republicans voted in favor of the bill.

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