Legislature to Focus on Budget Upon Return
By JAMES CLARK
Editor for the Southern Standard
(McMinnville, Tenn.)
When Tennessee lawmakers return to Capitol Hill on Tuesday to begin a new legislative session, one thing will be on their minds – the state budget shortfall. A deficit projected by Gov. Phil Bredesen to
climb as high as $1 billion by June promises to bring with it an array of state spending cuts and
job losses in the coming months. It’s been mentioned that some state departments could face 10 to
15 percent cuts.
“This is the worst I’ve ever seen it in my lifetime,” said state Rep. Charles Curtiss, who is set to begin his 15th year in the General Assembly. “All the legislation is going to be overshadowed by the budget.”
Curtiss said since the state began collecting sales tax in 1947, this is the first time the state has collected less than the year before. He says construction is the No. 1 sales tax source and auto sales are No. 2, and both have taken significant dips. “The sales tax is our dominant source of revenue
and when you lose that it hurts,” said Curtiss.
The state has some money in the bank to ease the shortfall. There is roughly $750 million in the rainy
day fund, and another $500 million in TennCare reserves. While that $1.25 billion provides a nice cushion, the state wouldn’t be wise to use all that money this budget year, according to state Rep. Judd Matheny. “If we exhaust those funds we’re totally vulnerable,” said Matheny. “I don’t think
we’d want it to get below $250 million in all. We could use $250 million this year and $250 million next year and see where we stand. I think we’re looking at a two- to three-year down cycle.”
With so many cuts in the near future, Matheny doesn’t think any new spending proposals stand much of a chance. “If a piece of legislation costs any amount of money, it’s going to be nearly impossible
to pass it,” said Matheny. “My goal is for the state to absorb the brunt of this financial hit and not pass it down to the local level.”
Newly elected state Sen. Eric Stewart doesn’t have the luxury of beginning his term during prosperous times. Like Gov. Bredesen, he firmly favors education but admits if education funding remains
untouched it makes it that much tougher for the rest of the state. Stewart says the key task for
legislators will be finding the vital services and making sure they stay funded.
“The biggest thing we need to do is to keep taking care of our people,” said Stewart. “That means making sure projects like the four-lane from Centertown to Woodbury stay funded. Yes the budget is tight, but we have to work to make sure the things that are important to communities get done.”