Contact:  Darlene Schlicher (615) 741-6336 or email:  darlene.schlicher@capitol.tn.us

      (NASHVILLE, TN), May 25, 2010 – The State Senate has approved a major job creation bill sponsored by State Senator Doug Overbey (R-Maryville) to expand the state’s TNInvestco tax credit program by $80 million.  The innovative new program provides investment capital to small, medium and start up businesses in Tennessee and is considered a model job growth plan by other states.   

“Small businesses provide 67 percent of first jobs and produce the majority of innovations,” said Senator Overbey, who also sponsored the bill which implemented the program.    “However, access to capital is a huge obstacle to success.  This legislation provides a vehicle for small and start up businesses to take an innovative idea and commercialize it, creating jobs for Tennesseans.”

In October, six investment firms were chosen to receive an allocation of $20 million dollars in gross premiums tax credits which are then marketed to insurance companies to create a pool of venture capital funds for investment in start-up and mid-stage companies in Tennessee.  The legislation would allow the program to include four additional participants already selected as alternates.  It also adds improvements to the bill to increase transparency and accountability in the program.  Overbey said the improvements include a scorecard kept by the state to make sure that qualified TNInvestcos are following program guidelines and obligations to maximize investment potential.

Under the plan, investors receive a tax credit against insurance premiums taxes that spread over years three through ten of the program.  Even though the capital will be available for small businesses immediately, there are no tax credits for investors until 2012.  Capital returned to the state through the program must first go to the General Fund, with any remaining funds to be deposited in the Rural Opportunity Fund which helps economically distressed counties grow jobs.  Other state programs are generally dollar for dollar subsidies.   

“Innovation does not know geographical boundaries,” added Overbey.  “What truly separates this program from those being used in other states is that it will pay for itself down the road and puts money into the Rural Opportunity Fund.  That fund focuses on job growth in some of the most economically distressed areas of the state where unemployment is very high.”

“TNInvestco allows us to create jobs, provide capital for small and start up businesses and also helps us get our seed investment back,” Overbey continued.  “I am very pleased the bill was approved in our State Senate.”

The bill is pending action in the House Finance Committee where it will be heard today.   It will then go to the House floor for final action as the General Assembly is looking to conclude their business by next week.

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Reference:  Senate Bill 3049 / Other details on the program can be founds at  www.tninvestco.gov

By Senate Majority Leader Mark Norris

Editorial / Tennessean / May 18, 2010

Balancing the State of Tennessee’s annual budget is more of an art than a science. Doing so, while simultaneously nurturing a fledgling economic recovery, demands discipline and determination.  It takes discipline to stick with the four-year plan presented by the governor and passed by the General Assembly last year and the determination to balance our budget without raising taxes.

This year, during his state of the state address on February 1, the governor urged us to stay the course. “We have a good plan,” the governor said, “and I think it is important that we stick with it and not get our heads turned by the possibility of more one-time money.” He likened it to the family budget, “the way sensible families have to manage through these times.”

Despite this admonition, last Thursday, the Commissioner of Finance and other Administration officials rolled out a revised budget that does not “stick with” the plan. It raises the sales tax, taxes cable television subscribers, and increases your driver license renewal fee by almost 50 percent. It fails to fully fund education and reflects the termination of more state employees.

Strangely, despite the elimination of more than 2,000 state jobs, the budget includes a three percent bonus for state employees totaling $160 million for those remaining employees.  Given the recent natural disaster, could this sum not be better spent, if at all, on the recovery?  For example, a one-time match for disaster relief could help local officials avoid tax hikes at the city and county level.

Republicans preferred the original plan, or something closer to it, and we have long advocated a more “reality-based budget.” Giving state employees a bonus now, when many state workers and Tennesseans in the private sector are unemployed, seems unrealistic. The Leaf-Chronicle editorialized against it last week: “When it comes to balancing the budget, there are no easy answers. But bonuses during a bad economy are an expense the state would have difficulty justifying to the taxpaying citizens.”

Unemployment is widespread in Tennessee, running up to 20 percent in some counties.  There are not many private sector industries or small businesses in the state that haven’t felt the impact of the economic downturn.  Whether it is closures, layoffs, pay cuts, benefit cuts or other tough measures, businesses across the state have made the necessary, but never easy, changes to try and stay afloat.

In March, the Tennessean itself reported that personal income in Tennessee had declined for the first time in over 60 years: “Tennesseans saw their personal incomes slide lower in 2009 for the first time in 60 years, a reflection of lost jobs and companies taking cost-containment measures such as furloughs and salary cuts.”

Is this really the time to raise taxes? Is it time to tax Tennesseans at their television sets?  Is it time to give bonuses to state employees?  What kind of family budgets like that?

Last week, Senate Finance Chairman Randy McNally presented for discussion an alternative proposal backed by Republicans designed to offset the governor’s tax increases by cutting spending rather than raising taxes.  Although it cancels the state employee bonus, the plan does not include massive lay offs or sweeping pay cuts for state employees.   This is not unprecedented. During the recession of the early 1990s, even Democrat Governor Ned McWherter put pay raises for state employees on hold for four years.

The Republican proposal continues funding essential educational and safety programs and cuts the deficit between recurring and nonrecurring dollars by more than half – still well within the spending plan adopted last year and originally advocated by the governor in February.  It is a disciplined approach to economic recovery.

Unlike many other states, Tennessee has resisted the temptation to spend beyond its means. If we are to continue to be fiscally responsible, we must be determined to stay the course.  Saying no isn’t always easy, but it is often necessary.

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For Immediate Release                                                        Contact:  Darlene Schlicher (615) 741-6336
or Kara Watkins (615) 741-1975

(NASHVILLE, TN), May 10, 2010 – A group of law enforcement officers joined forces with several lawmakers in an press conference today to urge passage of legislation that would require written drivers’ license examinations be given in English in Tennessee.  The legislation, Senate Bill 63, is scheduled to be considered for final passage tonight in the State Senate as the General Assembly works to wind up their business for the 2010 legislative session. 

The bill is sponsored by Senator Bill Ketron (R-Murfreesboro) and Representative Eric Watson (R-Cleveland).  The law enforcement officers said passage of the bill would alleviate safety concerns they face on the job with immigrants who live in Tennessee and drive on our roads, but do not speak English.

“It is a very real safety concern to officers that those stopped on our roads are able to listen to commands from law enforcement and understand them,” said Officer David Terrazas of the Metropolitan Police Department.  “This is for the safety of both the officer and the driver.” 

“As an immigrant, I am qualified to say that one of the benefits of this legislation is to encourage all immigrants, regardless of where they come from, to learn English and with that truly grasp and taste the American dream,” said Eddie Garcia.

“This is about public safety on the roads,” said Representative Eric Watson (R-Cleveland), who is also a law enforcement officer.  “From a safety standpoint if they come upon a road sign, such as -- road closed / bridge out or turn off radio / blasting ahead -- that they read English for the safety of all concerned.” 
  
As amended, the bill requires that all written drivers license examinations be given in English unless the person has clearance from the U.S. Department of Homeland Security.  The bill does not apply to persons whose presence in the United States has been authorized by Homeland Security for work in companies located in Tennessee through the efforts of Tennessee’s Department of Economic and Community Development in order to accommodate those nationalities with manufacturing facilities in the state.  Presently, the Department of Safety provides for the written examinations to be given in Japanese, Korean and Spanish for that purpose. 

“It is good policy that is currently being practiced, but it needs the force of law to ensure that we do this past this administration and the next,” said Senator Bill Ketron (R-Murfreesboro), the Senate sponsor.  “It will also send a message to those that want to come here without the proper documentation that they will not be getting a Tennessee drivers license unless they take the test in English.” 

“For those who want to come here and work and call this home, they need to assimilate and learn our language, which is English,” Ketron added.  “The U.S. Department of Transportation already requires that all commercial drivers’ license tests have to be taken in English only for safety reasons.  Tennessee should do the same for all drivers.” 

A similar measure has passed the Senate for the last two years, but did not gain passage in the House of Representatives.  Nine other states have “English only” laws.

The bill is set to be heard in the House Budget Subcommittee on Wednesday.

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