Recently in State government Category

 NASHVILLE - Tennessee Republicans are downright giddy over the prospect of being in charge of legislative and congressional redistricting next year for the first time - apparently few more so than Tim Skow, head of a downtown Nashville GOP luncheon club called First Tuesday.

 

First Tuesday's guest speaker today was Memphis lawyer John Ryder, Tennessee's Republican National Committeeman and chairman of the RNC's redistricting committee. Skow's e-mailed invitation to First Tuesday members for today's meeting gave a glimpse of what Democrats might expect from Republicans in the redistricting process next year if the GOP retains its majorities in the state legislature, as expected.

 

"You want to know what we can do 'legally' to make the DEMS scream as a result of redistricting?" Skow wrote in the e-mail. "For years our cry has been 'Win the Pen in 2010' - then we can redraw  the line for Congress, the State House, and State Senate WITHOUT any input from the dreaded DEMs! - Well, John Ryder is our party's legal expert on this critical issue - and it will be John who leads our fight in court if (or WHEN) the DEMs sue because they don't like the way WE draw the lines. (don't know about you but I can't wait to hear the whining coming from the DEMS when the new lines become public should we 'Win the Pen in 2010' and redraw the lines!)" (sic)

 

We should note here that these are Skow's words, not Ryder's. 

 

That kind of buildup naturally drew the attention of the press. But when five reporters -- including me -- arrived to chronicle the revelation of the grand strategy, Skow barred entrance, declaring it a closed event. The club is private and, of course, has every right to close its meetings. First Tuesday's monthly meetings attract a mixture of grassroots Republican activists and Capitol Hill officials. For example, Nashville lawyer Linda Knight, a member of the state's Ethics Commission, attends frequently.

 

Before Skow was elected its chairman, the group's meetings were routinely open to reporters who occasionally dropped by to hear what officials, candidates and insiders had to say.

 

Skow alternates where he places the blame for the current sometimes-open, sometimes-closed policy. Occasionally, he says the law firm that hosts the meeting in its expansive conference room, Waller Lansden Dortch & Davis, must clear the presence of reporters lest they spy some client  who prefers privacy. Other times, he's said that particular month's speaker doesn't want the coverage. And other times, he's just simply noted First Tuesday's status as a private club that can admit whomever it wishes. Sometimes, reporters are allowed in.

 

Today though, Skow declared: "It's a members meeting....  If a candidate wanted you here, we'd be glad to do it. All the people who are attending the meeting were well aware that it's a Republican Party meeting, okay? A dues-paying members meeting, okay?"

 

Skow later said reporters need only let him know in advance so he can clear their presence with Waller Lansden.

UPDATE: Ryder -- a cross between an expert attorney and a college political science professor -- walked across the street to the Legislative Plaza pressroom to give the ink-stained wretches there our own briefing on the status of the reapportionment process. (A report on that appears separately in our print and online editions.) 

Ryder said he did not ask Skow to keep the press out and said he basically told the First Tuesday members the same thing he told us -- that the redistricting will have to be "fair and legal" in order to pass constitutional muster and the courts. Because Tennessee has "tilted Republican" -- as evidenced, he said, by the general trend of statewide elections in recent years -- a majority of legislative districts will reflect that.

 

 

NASHVILLE - It was almost enough to restore faith in the future: dozens of high school students assembled at the governor's residence this evening to pose questions to gubernatorial candidates Bill Haslam and Mike McWherter.

 

The students were assembled by First Lady Andrea Conte from Nashville public and private schools, including Tennessee School for the Blind. The students took turns asking separate questions of each candidate. The format kept the candidates from answering the same questions and from talking to each other - making it difficult to gauge differences between them - but it resulted in some new topics they haven't faced before.

 

Would Democrat McWherter, for example, seek to restore financial aid for local high schools to participate in the International Baccalaureate program - a rigorous program of academic study that gives high school students several hours of college credit? "Yes!" he declared..

 

Haslam, the Republican, said TennCare will be among the programs that will have to be shrunk to deal with budget shortfalls and that some of the federal health plan mandates concern him.

 

On other topics:

 

· McWherter was asked about controversies over an Islamic mosque proposed in Murfreesboro. He said: "There is no question that I am a huge proponent of freedom of religion in this country. This is what this country was founded upon and I always want to promote that. At the same time, I well understand the constraints and problems you have when you locate an institution like that inside of a quiet neighborhood. And so I think as a community, you ought to be able to have some zoning restrictions....

 

"Now having said that, I think the people who committed the atrocity down there (in Murfreesboro) in burning that equipment should be found and prosecuted to the full extent of the law. That's unacceptable in Tennessee. It's unacceptable anywhere in the United States. We need to find them and we need to prosecute them."

 

· Haslam was asked whether he supports efforts by some legislators to nullify elements of the federal health reform act in Tennessee that require uninsured people who can afford to buy health insurance to buy plans or potentially face tax penalties. He responded:  "I do wonder about a new plan that forces you to purchase something. I don't think we've ever done that in this country before. So that is a concern to me. Coming back to the big picture, I'm concerned long term about the cost of the health care plan. Whether it's an additional $200 million, the low-end estimate, or $400 million a year, it's going to cost us. The impact to the state is going to be big and its going to be felt somewhere along the way in other programs that you care about. I'm also concerned that employers might find it easier just to not pay insurance, have their employees go on TennCare and Medicaid, pay the penalty and come out ahead." 

 

·  McWherter was asked about the federal government's program that allows employers to electronically check the immigration status of potential hires and his view on sponsoring legislation creating "real consequences" for employers who are not validating status prior to hiring. Said McWherter: "This is one of those areas where I totally agree with Zach Wamp. He has talked about the fact that we need to do a much better job of making the E-Verification information available to employers. And I do think we need to make that information avail to employers. We need for them to know if there is an undocumented worker in their workforce, and frankly if there is and they're caught, we need to prosecute them and fine them. It creates a totally unfair advantage for small business in this state for those people who are using undocumented workers. You know they are not paying any kind of taxes on them, you know they're not providing health benefits. Those are expenses that small businesses normally incur and it gives those people an unfair advantage. We need to make sure we go after them. As governor, I'm going to do that."

 

·    Haslam was asked his postion on universal health care and how it would affect Tennessee. He said: "I assume you're talking about the national health care plan that passed this past year. Here's my concerns: the state of  Tennessee is already in a big budget hole - over a billion dollars that's coming out of our revenue that the next governor is not going to have. So we're going to have to address that. Gov. Bredesen called this plan the 'mother of all unfunded mandates.' It's the federal government telling the states what they have to do. Estimates are that it will cost $200 million to $400 million additional. So the question is again, where does that come from? Do you want to take that out of K-12 edcucation, higher education, or infrastructure.

 

"My thought is, what we have to focus on in health care in America is we have to begin with personal responsibility. You look at where our costs have escalated so much, in the end I think a lot of it is...we're not taking care of ourselves and the government's paying for most of that. Until we introduce more personal responsibility in the system, we're going to have problems with health care costs."

 

 

·   McWherter was asked if he's in favor of Arizona's immigration law and would he support similar legislation in Tennessee. He said: "Frankly I think the responsibility for immigration is a federal issue, not a state issue and I am very disappointed that we've got a federal government that has not secured our borders. If we can secure the border between North and South Korea, then I've got to think we can secure our own border. And that has got to be absolutely the first step before we do any kind of immigration reform.

 

"I don't think there should be a patchwork of immigration laws all across the states. You're going to have a patchwork of immigration laws all across the states. If we're forced into that, then yes, I'm going to support it. But what I want to do right now is work with (U.S. Senators) Lamar Alexander and Bob Corker and our congressional delegation and see if we can't get a congressional resolution to that."

 

Haslam was asked how he would deal with a potential billion dollar budget shortfall when a recent congressionally approved increase in Medicaid funding for the state expires. He said: "We don't have a drawer full of money that we can (say) 'Oh that's a good program; lets keep paying for it.' In Tennessee, we don't have an income tax. That's a good thing. Our sales tax is the highest in the country. We're not going to raise taxes in Tennessee. It's the wrong thing to do.

"Our only choice is either to shrink government or to take that out of some other pot. It would mean taking money away from K-12 or higher education or money away from helping folks with mental disabilities. I can go on and on. We're going to have to shrink the size of state government and TennCare is going to be one of those places that happens."

 

 

NASHVILLE - No wonder that both candidates for governor say they won't raise sales taxes.

 

A new report by the non-partisan Tax Foundation confirms what most Tennesseans already suspected at the checkout counter: the Volunteer State has the highest combined state and average local sales rate in the country - although some cities elsewhere have higher combined rates.

 

Local sales taxes in Tennessee - those levied by cities and counties - are capped at 2.75 percent, and are 2.25 percent in Memphis and Shelby County. But statewide, local sales taxes in Tennessee average 2.44. Combined with the 7 percent state sales tax, Tennessee's combined state and local average rate is 9.44 percent - the nation's highest, according to the Tax Foundation http://www.taxfoundation.org/ a Washington nonprofit that monitors federal, state and local fiscal policy.

 

After Tennessee, the Tax Foundation reports states with the highest combined state and average local sales tax rates are California (9.08 percent), Arizona (9.01), Louisiana (8.69), Washington (8.61) New York (8.52), Oklahoma (8.33), Illinois (8.22), Arkansas (8.1) and Alabama (8.03).

 

Memphis and Nashville are tied with San Jose, Calif., for the 13^th highest combined sales tax rates - 9.25 percent - among the nation's major metropolitan areas, the Tax Foundation also reports. Both the state and metro area reports are available on the website above.

 

Birmingham and Montgomery, Ala., share the dubious distinction of having the highest combined sales tax rate - 10 percent - in the nation.

 

Unlike Tennessee, Alabama's city and county sales taxes are stacked on each other. So in Birmingham, consumers pay 4 percent state sales tax, 4 percent city and 2 percent county sales tax, for a total 10 percent. In Montgomery, it's 4 percent to the state, 3.5 percent to the city and 2.5 percent to the county.

 

Ouch! At least in Tennessee, you pay a city or county sales tax depending on where the sale occurs - but not both.

 

On the other hand, Tennessee is among 17 states that tax food to varying degrees, which progressive tax-policy advocates decry. Tennessee discounts the sales tax on food in grocery stores (not restaurants) by 1.5 percentage points; that is, the state sales tax applied to grocery food is 5.5 percent rather than the full 7 percent. Local sales taxes are added on top of the 5.5 percent.

 

According to the Federation of Tax Administrators http://www.taxadmin.org/ Tennessee is one of 10 states that provide some sales tax discounts - either state or local or both -  for food purchases. Two others - Alabama and Mississippi - apply their full sales tax rates to food. Five state - Hawaii, Idaho, Kansas, Oklahoma and Wyoming - tax food but provide rebates and/or tax credits to low-income households. http://www.taxadmin.org/fta/rate/sales.pdf

 

Tennessee's sales taxes are high, of course, because we rely on them to fund government more than most states do. Seven states don't have individual income taxes at all: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two - New Hampshire and Tennessee - have a limited income tax that taxes only unearned income such as some interest and dividends, according to the FTA http://www.legis.state.wi.us/lfb/Informationalpapers/4_individual%20income%20tax%20provisions%20in%20the%20states.pdf

 

Surprisingly, given the current anti-tax political environment, three states have increased their sales or income tax rates this year, according to the Tax Foundation.

• Arizona voters approved - by a 64 to 36 percent margin - increasing their sales tax from 5.6 percent to 6.6 percent.

• The Kansas legislature increased its sales tax rate from 5.3% to 6.3%.

• Oregon voters approved - by a 54 to 46 percent margin - a state income tax increase retroactive to Jan. 1, 2009.

 

Meanwhile, neighboring Arkansas enacted another decrease in its sales tax on grocery food, now subject to 2 percent in state sales tax rather than 3 percent. Local sales taxes may be added.

 

If you have not already heard, The Commercial Appeal is preparing for the departure of Otis Sanford, currently what we call the Opinion Editor though that does not begin to fully capture the role he plays for us. The University of Memphis has recommended him to the Tennessee Board of Regents to take over the Helen and Jabie Hardin Chair of Economics/Managerial Journalism, but, fortunately for us, he will not leave until the end of the year -- after this important 2010 election season has finished. And even after he leaves the newsroom, Otis will continue to write his weekly column. For a longer look at Otis's fascinating career, go here and jump to page 12.

In honor of Otis, check out some of the recent Opinion pieces, including Otis's analysis of why Memphis Mayor A C Wharton decided not to fight the City Council and public opinion on the issue of pay cuts for the city's highest-paid employees.

Otis and the editorial board (including citizen members) met with Wharton and Robert Lipscomb, the city's director of housing and community development, and came away impressed by the Wharton administration's plan to "right-size" city government by utilizing the BRAC process (Base Realignment and Closure) the federal government employs to find savings and efficiencies with the Armed Forces. The idea is to create a commission that looks at every corner of city government and makes recommendations that the City Council would approve with an up or down vote.

The Tennessee Newspaper Network's coverage of the gubernatorial campaign continued with a look at the distinctions between candidates on the issues of campaign finance and constitutional offices. Here is the article and our sister Scripps-Howard newspaper publication, the Knoxville News-Sentinel, has a great reproduction of the grid listing the candidates full responses to questions. Knoxnews.com also has a nice utility that allows readers to look at responses candidates have made on various issues and a database of campaign contributions.

Despite this story about a report that Bass Pro fails to deliver for communities who give the company big tax breaks in return for megastores, Memphis Mayor A C Wharton and Robert Lipscomb, the city's director of housing and community development, told The Commercial Appeal's editorial board this morning that they are very close to finishing the deal to remake The Pyramid into a Bass Pro megastore.

At the meeting, Mayor Wharton responded (sort of) to the harsh criticisms thrown at him from his predecessor, 9th Congressional District candidate Willie Herenton,
in a Wednesday press conference. Wendi Thomas responded much more directly to Herenton's assertion that he did not "give a damn" about the controversies that arose over the Memphis Animal Shelter and the Memphis Sexual Assault Resource Center. Meanwhile, 9th District incumbent U.S. Rep. Steve Cohen continues to try and persuade voters that he's focused on getting things done in Washington that voters care about -- filing a bill to aid non-violent offenders on Wednesday.

Wharton and Lipscomb were actually visiting to talk about long-term budget strategies, which is a reminder to go and read about the final budget approved Tuesday by the City Council, with a slight alteration on Wednesday at the request of Wharton to free up more funds aimed at recruiting businesses and promoting economic development.

In Nashville, the General Assembly finally adjourned, six weeks after they had hoped, and several last-minute votes made it, some did not. One bill that got killed was a super speeding bill, and another was a push to ban red-light cameras. It is interesting how little public attention is given to the deaths and injuries on our roads, given the human toll taken every day. We were reminded of that tragically when a 9-year-old in DeSoto County died in a wreck yesterday. We ran a story in December pointing out one of the most dangerous places for anyone in the Mid-South is, indeed, inside a vehicle.

In suburban government developments, a lot of candidates are lining up in Germantown, including a legitimate challenger for Mayor Sharon Goldsworthy, and Bartlett ponders whether to give raises to its elected officials.

That vastly more people in Shelby County are aware that there is a disagreement between Willie Herenton and Steve Cohen over the logistics of a debate than are aware of the battles being waged in local and state budget hearings is an unfortunate but unavoidable reality. But right now at City Hall, at the Shelby County Administration Building and at the State Capitol, there are public policy fights being waged that will eventually lead to real-world consequences.

Richard Locker in Nashville lays out how Memphis is caught in the crossfire of a budget dispute pitting Senate Republicans against -- well, against everybody else: Senate Democrats, Republicans and Democrats in the House and, of course, Gov. Bredesen. As much as $30 million is at stake for Shelby County institutions including the Regional Medical Center at Memphis, the National Civil Rights Museum and the University of Tennessee Health Science Center. Despite the high stakes, the Senate Republicans voted Tuesday to take the rest of the week off. According to the story:

The Senate Finance Committee unexpectedly recessed for the week Tuesday without voting on Gov. Phil Bredesen's budget proposal, an alternative proposed by Senate Republicans last week, nor a plan presented by Democratic Leader Jim Kyle that Republican House Speaker Kent Williams says is backed by a bipartisan majority of House members.

Rick tracked down Senate Majority Leader Mark Norris, R-Collierville, in New York for a Council of State Governments meeting, and he claimed that "very productive negotiations" were underway with the House.

Back in the Bluff City, that old saying about being careful what you wish for seems appropriate for A C Wharton as he presides over his first budget as Memphis mayor. Wharton claims, correctly, that he inherited a mess caused in large part by the City Council's decision in 2008 to slash the city's contribution to Memphis City Schools, though there is no question that throughout the special mayoral election campaign, Wharton and every serious candidate was well aware the first budget would be difficult because of the school funding. Wharton is saying he would not veto a budget that included salary cuts for city workers, but pointed out that seven votes for such a measure are not likely from on a City Council that has given those workers raises of 8 percent since since 2008. However, Wharton also made some bold claims after election about using the "political muscle" that came with his resounding victory, and the Council's leading budget hawk, Democratic District 5 representative Jim Strickland, said "we need his leadership on this issue."

Across Main Street, the County Commission approved additional funding for The Regional Medical Center at Memphis. And many current and future commissioners of both parties joined Republican gubernatorial candidate Zach Wamp at The Med to show their appreciation for his decision to sign a pledge they sent candidates to make a commitment to return all federal funds generated by The Med to The Med.

Several members of the local media received an update from County Commissioner Mike Ritz about the federal complaint he's brought against the state and Gov. Bredesen for what he says amounts to civil-rights discrimination based on how federal Medicaid funds are distributed (or not distributed) back to The Regional Medical Center at Memphis. But it was our own Richard Locker, in Nashville, who knew the repercussions that might come with Ritz becoming more aggressive, and the story he filed this afternoon captures the consternation among some of the Shelby County state legislators. They're afraid that Ritz's actions -- which he contends are long overdue and a response to what he contends are Gov. Bredesen's and the state's shoddy treatment of Shelby County -- could endanger the short-term funding solutions that have been cobbled together for The Med.

From Rick's story:

The e-mail (from Ritz) says: "I filed this amendment to my complaint against the state and DHHS (U.S. Department of Health and Human Services). The governor continues to play the rest of the state against the Med in all matters politic (sic) and fiscal...."

In his May 13 letter to the Health and Human Services' office of civil rights, Ritz claimed that the state "did not timely request" federal approval for federal matching money for Shelby County's new $10 million additional appropriation for the hospital -- federal money that he said would total $30 million but which state officials expect will be only $20 million under the usual 2-for-1 formula in which the federal government helps Tennessee finance its TennCare/Medicaid program.

"I am sure the state has political and practical excuses for not making the timely request, but I find their actions to be discriminatory in intent and effect," Ritz wrote.