 |
|
|
|
February 23, 2007
Dear Friends, The Governor presented his budget and legislators have been parsing through his requests. Many new programs are included, some of which are funded by a proposed increase in the cigarette tax. But as a $27.5 billion proposal that seeks to increase state spending by $1 billion, we must closely examine whether this is unwarranted growth. While the administration wants $1 billion more than last year, we must be convinced that an increase in government of this magnitude is justified when we could give something back to our citizens instead. The question in having this kind of excess revenue available is whether we have overtaxed in the first place. On a positive note, tax collections remain strong, an indication that our economy continues to remain healthy. But I have reservations about growing government when state coffers are overflowing because, due to the ebb and tide of collections, we have to fund these programs and departments tomorrow when revenues might not be as plentiful. Restraint and responsibility with the state’s checkbook is never more important than right now when times are good. There are measures in place to ensure we keep state spending in check. Back in 1978, an amendment to our state Constitution was passed to keep the rate of government growth under control. It is found today in Article 2, Section 24 of the Tennessee Constitution. Known as the “Copeland Cap,” it provides that at no time can the rate of state spending surpass the rate of personal income growth of Tennesseans. For example, if, according to the U.S. Department of Commerce, Tennesseans’ personal income increases by 2% in a given year, the state can increase its spending by no more than the same 2% level. Right now, as presented, the Governor’s budget exceeds the Constitutional cap by around $35 million. And, if revenue collections remain strong in the coming months, that number will escalate. We’re presented with a big budget when Tennesseans should be getting a break. Mark Norris * * * * * Bredesen Says Plan for Reducing Food Tax “Voodoo” Absent from the Governor’s proposed budget was any plan to return money to the taxpayers. Sen. Mae Beavers (R-Mount Juliet) for the second year in a row has sponsored a plan (SB 305), along with all 17 members of the Senate Republican Caucus, that would gradually remove the sales tax on food. Bredesen referred to the plan as “really dangerous”. “These are people who want to remove the sales tax from food, a significant source of revenue to our state, without either identifying an offsetting revenue or recommending programs to be cut,” the Governor said. He said many support the plan because “they think it will mess up the economics of the state and we will have to go back to an income tax consideration.” Sen. Mae Beavers (R-Mount Juliet) lead sponsor of the proposal, said there was no need for replacing the revenue because the state has been running up surpluses in recent years. "Last year, we had $900 million in new revenue and we spent every bit of it," she said. "We need to give people a tax break. "To me, what's voodoo is to pass a new tobacco tax, which is a declining source of revenue, to fund education, which is a permanent program." -Knoxville News Sentinel * * * * * Woodson Receives Awards from Statewide Organizations Senator Jamie Woodson (R-Knoxville) was recognized by two organizations this week for her support of education in Tennessee. The Tennessee Independent Colleges and Universities Association (TICUA) awarded her with the William Baird Legislative Leadership Award. “We are honored to present this award to Senator Woodson,” said Dr. Claude Pressnell, President of TICUA. “She has worked diligently to make sure that students attending TICUA member institutions are treated fairly in the State’s student aid programs.” The Tennessee Parent Teacher Association (PTA) also selected Sen. Woodson as the 2007 Sigrid Steward Legislator of the Year Award. “This is a prestigious award that we present every year to an outstanding legislator who helps secure adequate laws for the care and protection of children and youth,” explained Evelyn Pelletier, President of the Tennessee PTA. “We are honored to present this award to Senator Woodson and applaud her commitment to provide quality education for our children.” * * * * * Republican Legislation Sen. Dewayne Bunch (R-Cleveland) has filed SB 376 which would require law enforcement officers to conduct a test to determine the blood alcohol level of a driver involved in an accident resulting in injury or death if the officer has probable cause to believe the driver committed DUI, vehicular assault, vehicular homicide, or aggravated vehicular homicide. This week, The Senate Commerce Committee heard a presentation relative to identity theft. A bill filed by Sen. Raymond Finney (R-Maryville), SB 161, was mentioned as an important initiative to help citizens combat identity theft. Known as the "Credit Security Act of 2007" it establishes a process for requesting a security freeze on a consumer report and creates an identity theft “passport” for identity theft victims. The legislation also governs disclosure of social security numbers. Sen. Bill Ketron (R-Murfreesboro) passed SB 201 through the Senate Transportation and Safety Committee this week. The bill requires all written drivers license examinations be given in English, unless the person has written security clearance from the U.S. Department of Homeland Security. * * * * * |
