by Rep. Eric Watson
posted January 2, 2009
 Rep. Eric Watson |
Because Republicans made gains in both the House and the Senate this year, we have reached a constitutional majority, which will allow us to select the state’s constitutional officers. On Dec. 15, Republican leaders conducted a public hearing to thoroughly review the applicants for the state’s constitutional offices of secretary of state, treasurer, and comptroller.
The leaders expressed a desire to make the process more transparent than has been done in the past, so that citizens may view the qualifications for each of the candidates. The hearing was available via video streaming at www.legislature.state.tn.us.
House and Senate Republicans posted the information, such as the duties of the offices and application forms, on both the House and Senate Republican Caucus websites. Applications were collected and were reviewed by an eight-member nominating committee selected from members of each caucus who will narrow the search to up to three applicants per position. Having interviewed the applicants, House and Senate Republicans will select their nominees in a joint caucus meeting, before the final vote when the 106th General Assembly convenes for business.
The candidates for the offices are:
Secretary of State
William Baird, Jim Bryson, Tre Hargett, James M. Rollins, Jerry Scott, Larry Scroggs, David Shirley, Randy Stamps
Treasurer
Ira Brody, Vance W. Cheek, Jr., Barry Davis, David Lillard, Jr., D. W. "Bill" McGaughey, William Howard Watkins
Comptroller
Justin Wilson
States across the nation are suffering from the economic downturn, and Tennessee is not exempt. Tennessee could be left to deal with as much as a $900 million shortfall by the end of the budget year in June and state economic experts say the outlook is grim. Due to the downturn in revenues, the governor has requested the departments to prepare contingency plans for cuts of 10-15 percent in their budgets.
Tennessee’s year-to-date collections for the first quarter of the fiscal year, which started in July, were $217 million below the budgeted estimate. The state’s financial experts predict that the budget gap will only get worse as revenue collections are still falling.
Tennessee’s leading financial advisors on the state’s funding board makes revenue estimates for each fiscal year. Although revenues were already falling when the current year’s budget was passed, the experts failed to predict how hard Tennessee would be hit by the economic downturn.
There has been a $1.25 billion lowering of estimates from January, including cuts that were made in the current budget year. Despite the bleak economic picture, Tennessee is better prepared than other states due to a robust Rainy Day Fund with $750 million — which serves as the state’s savings account in times of severe economic hardship — and a TennCare reserve account that has $500 million.
Various other reserve accounts hold a combined $476.9 million in funds, which brings the total number of reserve funds to $1.72 billion — a record-level savings for state government that could help ease the blow of the economic woes.
While there are many options on the table for dealing with the budget crisis, I have pledged no new taxes and no new tax increases. The governor has already mentioned the possibility that he will renew his efforts once again this year to raise taxes on family-owned, non-corporate entities (FONCEs). FONCEs are certain limited liability corporations and limited partnerships that derive passive income through commercial property.
The proposal, which failed in the General Assembly last year, would remove the franchise and excise tax exemption currently in place for such entities. The legislature had great concerns about the impact that raising this tax would have on family-owned businesses, especially in a time of decline. According to Department of Revenue estimates, roughly 2,700 businesses in Tennessee would be subject to the change. I have pledged to fight the removal of the exemption again this year.
One area that will likely not be trimmed in this difficult budget is education, as spending for Tennessee schools is a priority of state government. The Basic Education Program (BEP) received a major overhaul in 2007, with regards to the way the state disperses money to local governments and school districts. The new plan called for a three-installment plan, the first installment of which came in 2007 and was a substantial down payment of over $290 million. It is unknown, however, when the next installment will take place.
Some of the mandated improvements for K-12 under current law would be the $80 million to fully fund BEP formula growth, $14 million to address new K-12 test development requirements and $3.5 million to address mandated salary increases.
For several years, we have been touting our "Education First" plan, and we will set out to pass the legislation this year. The proposal would literally make education spending a top priority by requiring the General Assembly to pass an education budget independent and prior to the rest of the state’s expenditures.
The bill will prioritize education spending and eliminate any last minute compromises that often accompany the massive appropriations bill, which is generally one of the last acted upon pieces of legislation before adjourning. I feel that this "first funding" requirement will prevent the education budget from becoming a political football during legislative sessions and prevent its use as a late-session hostage in budget negotiations. Also, by funding education first, the schools will have the budget in time to allow them to hire teachers and prepare their own budgets earlier, a common problem that is cited with passing the state budget at the 11th hour.
Nevada voters overwhelmingly approved a constitutional amendment that enacted an Education First plan in 2006, after the Nevada legislature approved the ballot initiative with little fanfare. The first time the legislature utilized the plan was in 2007, and reported the transition went smoothly.
Other education initiatives that will be considered:
* Higher Education
Tennessee’s Higher Education system might be among the hardest hit by budget cuts due to the decline in revenues. Higher education has already suffered cuts of over $40 million to help balance out the past budget year’s economic woes. Needed capital projects for improving college programs also fell victim to last year’s budget, and experts say any additional capital projects in the future appear grim as well.
Higher education officials have expressed that they are concerned with the rising cost of tuition and the elimination of staff, which may be inevitable. However, they seem open to the idea of creating more online courses for students, which are less costly to operate and often more convenient for the growing population of non-traditional students at Tennessee universities. The Tennessee Higher Education Commission (THEC) has said it is working to protect their core mission, while looking to significantly scale back budgets.
THEC’s leaders maintain that higher education is critical to getting the state back on track economically, and also noted that the bio fuel and super computer initiatives at the University of Tennessee have already brought new industry and jobs to the state.
* Taxing Authority for School Boards
The Tennessee School Boards have voted to ask the General Assembly to give them authority to control their own funding. If approved, the resolution would grant the local school boards the authority to raise property taxes if needed, as opposed to that task being delegated to the county commissions and metro governments as it is now. The school boards claim they are held accountable for the success of students so they should be able to control their funding level in order to achieve these goals. Thirty-eight states currently give school boards this power. Such authority would have to be approved through the constitutional amendment process, which means it could not be on the ballot for a vote, by the people until 2014.
* Charter Schools Legislation that would have minimally expanded the students allowed to attend charter schools in Tennessee advanced in the Senate, but failed in a House subcommittee last year. The legislation could make a return in the 2009 legislative session. The bill would have opened up enrollment on a very limited basis to fill vacant slots in the existing schools.
Tennessee has the most restrictive public charter school law in the nation. Currently, a student must be from a "failing" school, or the student must be a "failing" student in order to attend a public charter school. This bill would have made a very conservative expansion of student eligibility to public charter schools to fill empty slots by including students who are classified as "at-risk."
In addition to the main priorities already mentioned, there are a myriad of other issues that may be addressed in the upcoming session to keep Tennessee working.
* Judicial Selection Commission Legislation that would continue the current way of selecting judges in the state of Tennessee was stalled during the last legislation session, an action that puts the Judicial Selection Commission in wind down next year. People began to question the system last year, arguing that the commission make-up was unbalanced. In addition, some lawmakers concluded that the current use of the commission to select judges is unconstitutional.
* Copeland Cap
The Copeland Cap, an amendment to the state constitution approved by Tennessee voters in 1978, stipulates that state spending cannot grow faster than the rate of growth of the state's economy, measured by the growth of incomes of Tennesseans.
The goal is to keep spending growth at a level where the people's income growth can afford it without a tax increase. The cap can, however, be overridden with a simple majority vote. In the past, Members of the House have advocated for increasing the requirement to two-thirds, or a supermajority, to override the Copeland Cap. This issue may be discussed in the 106th General Assembly.
* Elected AG / LG / Secretary of State
Lawmakers have discussed before the possibility of changing the constitution to allow for an elected attorney general, lieutenant governor and secretary of state.
Discussions have centered around the need for these offices to be accountable to the voters of the state, given the weighty issues on which they have a direct effect. There is a possibility this issue will once again be addressed.
* Illegal Immigration
Lawmakers have expressed their frustration with the federal government regarding the inaction of any immigration reform. It is estimated that there are between 12 and 20 million illegal immigrants in the United States. Many states and localities have implemented meaningful reforms that have helped ease the strains illegal immigration is causing.
The General Assembly may once again take up legislation that was approved by the Senate—but defeated in the House—clarifying that Tennessee employers have a right to institute an English in the workplace policy. The "English in the Workplace" bill would have made it clear that these policies were not considered discrimination on the basis of national origin while the employee was engaged in work.
Another piece of legislation that is expected to be considered this year by lawmakers is the "Sanctuary Cities" bill. A "sanctuary city" is a term given to a city in the United States that follows certain practices to protect illegal aliens. Thirty-eight cities in the U.S. have been recognized as sanctuary cities, but many sources have identified over 200 city or county governments nationwide as having practiced such policies. The bill would cut off economic and community grant money to any Tennessee city that might declare itself a "sanctuary city" for illegal aliens, and aims to be a pre-emptive strike to guard against the adoptions of such policies by cities in the state.
Finally, I hope to see the consideration of two bills that would aim to prevent fraud and abuse at the voting polls. Legislation to require proof of citizenship before registering to vote and to require photo identification at the polls before voting will more than likely be reconsidered in the 106th General Assembly.
* Healthcare
Last year, I sponsored the "Long Term Care and Community Choices Act" which aimed to allow seniors to "age in place" and restructured the state’s long term care program to allow for more options by recipients.
The comprehensive legislation has a tremendous impact on the elderly or disabled Tennesseans who need long term care attention and their families. It creates consumer-directed care options, including the ability to hire non-traditional care from family members, friends, and neighbors with accountability to taxpayer funds.
It also broadens residential care choices in the community beyond nursing facilities, including new options such as companion care, family care homes, and providing improved access to assisted care living facilities. It streamlines the eligibility and enrollment process for new providers and implements active transition and diversion programs for those who can be safely and effectively cared for at home or in another community setting outside of the traditional nursing home.
The General Assembly created a Long Term Care Oversight Committee to review the implementation for the first few years. The committee is charged with making sure the program is running smoothly during its infancy and to ensure that continued improvements are made for seniors and the disabled in the future.
Legislation that would establish tax credits for small business owners who offer health insurance to their employees and dependents fell victims to the budget crunch last year. Although the state’s financial situation has continued to worsen, the concept of these credits could continue to be discussed.
The same applies to legislation that would have provided a Hall Income Tax deduction for premiums paid by the taxpayer for long term care insurance. The credit would have been in an amount equal to the total amount of premiums paid by the taxpayer.
* Second Amendment
The Senate passed but the Democrat-controlled House killed several pieces of legislation last session that would have upheld the rights of legal gun owners in the state of Tennessee. Some legislation is likely to resurface in the 2009 legislative session. One such bill would have allowed handguns to be carried by legal permit holders in state parks.
Another bill previously defeated in the House would allow legal permit holders to carry guns into restaurants that serve alcohol. Those who are in possession of a handgun are already prohibited from consuming alcohol and are subject to face a Class A misdemeanor, which carries a $2,000 fine and up to 11 months and 29 days in jail.
Tennessee has 185,000 citizens who have a license to carry a handgun. There have been no incidents with legal licensed gun owners in any of the 34 states that allow legal permit holders to carry firearms into establishments that serve alcohol. Tennessee has also had no incidents with permit holders since the handgun carry law was enacted over a decade ago.
* SJR 127
The General Assembly will likely reconsider a constitutional amendment to give Tennesseans the opportunity to restore their voice in determining what state law should be regarding commonsense protections for abortions. The resolution failed by a vote of 6-3 last year in a Democrat-controlled House subcommittee, despite strong support among members of both the House and Senate.
The resolution would address an activist state Supreme Court decision in 2000 that struck down provisions in Tennessee law allowing women to receive "informed consent" information about the surgery and a requirement to wait 48 hours before they received an abortion. The court also ruled against a state requirement that all abortions in the first trimester be performed in a hospital.
That ruling made Tennessee more liberal than the courts required in Roe v. Wade and made the right to an abortion a "fundamental right" in Tennessee. Rejection by the House subcommittee means the next opportunity for the measure to be placed on the ballot would be the year 2014.
* Open Container Legislation that would ban open containers in vehicles appeared before the General Assembly last year, but was defeated in a House committee.
Currently, no driver may consume an alcoholic beverage or possess an open container of such while operating a motor vehicle, but passengers may consume alcohol. Some lawmakers say this policy invites drivers to drink as long as there is a passenger to which they can "pass the bottle."
Despite a difficult budget year, I’m humbled by the opportunity that the citizens of Bradley, Polk, and Meigs counties have given me to serve and I’m ready to approach the session with bi-partisan unity to solve the state’s problems and keep Tennessee working.
I look forward to meeting the challenges head-on, and doing so in a transparent way that promotes open government and encourages civic participation by all Tennesseans.
Rep. Eric Watson
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