Capitol Hill Week

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

     (NASHVILLE, TN), January 28, 2010 –   The Tennessee General Assembly returned to Capitol Hill this week to close out the Special Session on Education and begin the work of the 2010 legislative session.  Although the budget deficit will be the predominant driver for legislative action this year, other issues that will headline the legislature’s agenda are unemployment, job creation, and preparing for Congressional action on health care that could have a huge negative impact on the state’s finances in the future.   

Resolution would ensure future generations have the right to hunt and fish in Tennessee

     Action on the Senate floor this week included several bills pending from the 2009 legislative session.  One such bill approved by the full Senate gives Tennessee voters the opportunity to decide if the state’s Constitution should be amended to recognize that citizens have the right to hunt and fish.  The resolution was approved after all members of the Senate were added as sponsors of the measure.   An identical resolution was approved during the 2007-2008 legislative sessions by a simple majority, however, the Constitution requires a two-thirds vote in the succeeding General Assembly before it can be placed on the ballot in November 2010.

     “This resolution is critically important to the long term preservation of both our wildlife preservation efforts and our state’s great hunting and fishing heritage,” said Speaker Pro Tempore Jamie Woodson.  “It will ensure that the state’s hunting traditions will be enjoyed by future generations of Tennesseans.”

     Tennessee, like most other states, predicates wildlife conservation efforts on a user pay system supported by sportsmen.  The sportsmen pay for all wildlife conservation efforts, not just game fish and animals, including the acquisition of protected land and preservation of endangered species.  Protection of the sportsmen’s right to hunt and fish make sure wildlife preservation efforts in Tennessee continue indefinitely.  In addition, sportsmen pump millions of dollars into Tennessee’s economy.   

     The resolution, Senate Joint Resolution 30, will give sportsmen a voice in court on any future action that would deny their right to hunt and fish if approved by the voters.  The ballot measure will be voted on in the same manner as the "Victim's Rights Amendment" in 1998, the “State Lottery Scholarship Amendment” of 2002, or the latest amendment to give property tax relief to the elderly.

 

     “A constitutional right to hunt and fish will afford some added level of protection, added Woodson.  “I am pleased that voters will have the opportunity to guarantee this right for generations to come.”

Senate overrides Governor’s veto on restaurant menu requirements

     The Senate voted 24 to 7 to override the governor’s veto of legislation approved last year to ban unelected local government regulatory agencies from imposing requirements on restaurants to post calories on menus.  The Senate passed the measure, Senate Bill 1092, last year after many small businesses raised concerns that some communities will impose different standards than those likely to be required at the federal level, which will significantly increase costs to small restaurant owners.   

     Last March, Davidson County’s Metro Board of Health, made up of unelected members, voted to require restaurants located in that county to post caloric information on menus even though Congress is considering the Federal LEAN Act.  That act would implement a national standard generally accepted by restaurant owners to provide standardized nutritional information to customers.  This year the same Metro Board voted to suspend its regulations until they can be reconciled with the federal legislation that is also included in the health care bill pending in Congress.   

     Small business owners, as well as the restaurant and hospitality associations, support the LEAN Act, which requires some restaurant chains to post calories on menus, as well as other information that is helpful like total fat, cholesterol, sodium, and sugars.  However, they want a consistent labeling system across all levels of government rather than having to comply with separate requirements from local, state and federal governments which would be costly to small business owners.

     “Our small businesses are struggling as it is to make ends meet in difficult financial times and must comply with red tape imposed on them by multi-levels of government,” said Senator Diane Black, sponsor of the bill.  “We are not against nutritional information being available to consumers.  This is about unelected regulatory agencies that should not have the power to impose their own mandates on what should be posted on menus, which will likely be in addition to what is required at the federal level upon passage of the LEAN Act.”

Senate Commerce Committee approves legislation to boost sale of “prime milk” by Tennessee dairy farmers

     The Senate Commerce Committee has approved a bill sponsored by Senator Mike Faulk (R-Church Hill) to help Tennessee’s dairy farmers by establishing a category of milk to be called "Tennessee Prime Milk.”  The voluntary milk labeling category is designed to promote Tennessee's new official state drink: milk!  

     The bill, Senate Bill 1899, aims to help Tennessee's dairy farmers which have declined from 10,000 active farms at the height of the business to 500 today.  The bill allows marketing and sale of a "home grown" milk product with solid non-fat content that will likely be priced below organic milk categories.   

     "We need to do everything we can to help our local dairy farmers who are struggling in a tough economic climate," said Senator Faulk.  "This bill provides them a platform to launch a product to boost sales of milk from Tennessee dairy farms."

     The voluntary program calls for the milk to be certified by the state’s Department of Agriculture for sale at retail stores as “Tennessee Prime Milk” if it meets higher standards.  Bottling plants can label their milk as "Tennessee Prime Milk", as long as 80% of the milk is produced in Tennessee.  Reduced fat Tennessee prime milk sold at retail must contain at least 10 percent milk solids not fat (SNF); non-fat or skim Tennessee prime milk must contain at least 9 percent SNF; and whole Tennessee prime milk must contain at least 8.5 percent SNF.

     "Only 50 percent of milk consumed in the state is from Tennessee dairies," added Faulk.  "Hopefully this legislation will give consumers an optimal Tennessee product, while helping our farmers."  

General Welfare, Health and Human Resources Committee hears strategies for improving health in Tennessee

     In Committee action this week, the General Welfare, Health and Human Resources Committee heard from Jeff Ockerman with Tennessee’s Division of Health Planning regarding strategies for improving health in the state.  Ockerman is charged with implementing an act passed by the General Assembly to develop a state health plan that will serve as a guide to improve the overall health care of Tennesseans.

     Tennessee has been called one of the least healthy states in America, ranking 47th in the nation.  In addition, the state’s health system performance has ranked below average as well at 39th in the nation.  According to Ockerman, once the plan is in place it will provide a vision for moving Tennessee’s current health care system to an integrated system of care, which is more efficient and effective.  It will also focus on the need for health promotion, health education, disease prevention, better nutrition, and chronic disease management.

     Ockerman said Tennessee has been successful in the state’s childhood immunization effort with 83.1 percent of children being immunized.  The national average is 80.1 percent.   The remainder of the indicators on the health status of Tennesseans, however, is grim.  Tennessee is the worst in the nation in infant mortality, with an 8.8 per 1000 birth death rate.  The national average for infant mortality is 6.6 per 1,000 births.  Adult diabetes is a major concern since the state is above the national 8 percent average, with 10.4 percent of Tennesseans having the disease.  In following, adult obesity is 31.2 percent in Tennessee, well above the 26.7 percent average.  Likewise, one of the most concerning indicators is childhood obesity.  Tennessee children are well above the 28.8 percent national average, with 35 percent overweight.

    Senator Rusty Crowe (R-Johnson City), Chairman of the Senate Health and Human Resources Committee said, “I have asked Jeff Ockerman to appear before the committee so that we may begin to better understand those areas needing improvement and so that we might develop strategies and provide solutions in those areas.  I thank the governor and Mr. Ockerman for their work on this project.  I have asked him to return at a later date when he has made progress on the plan to identify further how we might focus on these problem areas and improve our state health rankings.”

Open Records Counsel gives lawmakers an update on efforts to open government in Tennessee
 

     The Senate State and Local Government Committee heard an update from Elisha Hodge, Director of the Office of Open Records Counsel, regarding efforts to open government in Tennessee.  The office was created in 2008 as a division of the State Comptroller’s Office to resolve disputes regarding access to public records and promote education and awareness of Tennessee’s public records and open meetings law.  It also assists Tennesseans in obtaining public records from local governments by guiding them to the correct offices or officials.    

     Hodge said the Office of Open Records dealt with 898 inquiries in 2009, of which 456 were from government entities, 63 from media, and 379 from individual citizens.  The Office also dealt with 14 complaints of the open meetings act and was involved in 3 public records lawsuits.  The Office did 29 opinions dealing with a variety of subjects involving open records.   

     The Tennessee Public Records Act provides that Tennessee citizens have the right to receive copies of public records, further supporting transparency in government.  The Office of Open Records set a schedule of reasonable charges for photocopies at 15 cents for each black and white copy and 50 cents for color.   

     “Our open records law is working to make governments across Tennessee more transparent and accountable to the public,” said State and Local Government Committee Chairman Bill Ketron.  “I commend their work and look forward to seeing their continued efforts in opening up government to Tennessee citizens.”   

     Hodge also reported that two local government entities are taking advantage of the expansion of a pilot program utilized in Knox County that brings sunshine online to the Internet.  Blount County is now approved to use technology to set up an online forum for elected officials to communicate outside of public meetings; but within the bounds of the state’s Sunshine law, while Loudon County is close to finalizing a similar plan.   

     Under the law, elected bodies statewide can set up websites where they can post messages to one another after approval by the Office of Open Records Counsel.  These “conversations” would be available for the public and media’s viewing.  The technological sunshine bill is designed to make it easier for officials to conduct business, while balancing the public’s right to know.

     “I am very pleased that this new law is working to provide a new technological forum for our elected officials and their constituents,” said Senator Randy McNally, who sponsored the legislation.  “As technology and Internet capabilities continue to advance, I expect to see this program expand to other areas of the state.”  

Bills in Brief

     Tourism – Tourism Commissioner Susan Whitaker appeared before the Senate Conservation and Environment Committee this week to update lawmakers on efforts to promote travel to and within the state.  Whitaker said tourism is up from $14.2 billion to $14.4 billion over the last year, although some parts of the state have been hit hard by the recession.  The state is in the top ten in the U.S. in tourism and is doing very well compared to neighboring states, some of which are in double-digit decline.  Tennessee is promoting a scenic by-ways project to get tourists into the more rural areas of the state, which is already meeting with some success.   

     Using data to drive teacher instruction – Senate Education Committee members heard from Murfreesboro’s Scales Elementary teacher Pam East this week regarding her efforts to use student test data to drive individualized instruction.  East, who is the author of “The 5-Step Way to Raise Test Scores” outlined the basic steps of analyzing a variety of student data and then using that information to drive classroom instruction.  She said it was a way to target instruction exactly where it’s needed.  The veteran teacher looks at standardized test scores as a tool to bring student’s learning to new heights.

     Education reforms signed – This week the governor signed legislation that passed during the Special Session on Education.  The legislation focused on improving K-12 education and putting Tennessee in position to be a leader in the Race to the Top competition.  If successful, the state could receive up to $500 million in federal funds.  A second bill focuses on Higher Education measures to help ensure that students are successful in completing their college degrees or post-secondary academic programs.  

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General Assembly passes legislation to boost college graduation rates as Special Session comes to a close

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

     (NASHVILLE, TN), January 21, 2010 – The General Assembly passed major legislation this week designed to grow the number of college graduates in Tennessee as the work of the Special Session on Education comes to a close.  The legislature will come back on Monday before adjourning the Special Session to make sure that there are no unanticipated problems with the legalities of the reform measures.   

     The first week of the two-week session focused on improving K-12 education and putting Tennessee in position to be a leader in the Race to the Top competition, which could mean up to $500 million in federal funds.  The second week saw the legislature turn its attention to the goal of how to get more Tennesseans to pursue a post-secondary education that fits their academic and workplace needs.  It also included a focus on measures to help ensure that students are successful in completing their college degrees or post-secondary academic programs.  

     “I am very pleased with the education reforms approved by the General Assembly during the Special Session,” said Senate Education Chairman Dolores Gresham (R-Somerville), who helped craft the legislation.  “The status quo is unacceptable.  These bills will help move Tennessee students forward in educational attainment at both the K-12 and higher education levels. It will also help our students compete in a new global economy that puts a premium on a well-educated and trained workforce.  In turn, it will help Tennessee attract the kind of jobs we need to raise the standard of living for many generations to come.”

     The problem -- Tennessee ranks 40th in the nation in completion of bachelor’s degrees and 45th in associate degrees.  The average graduation rates in Tennessee range from 44 percent at four-year institutions to 12 percent at community colleges.  To achieve the national average of 38 percent of adults having an associate’s degree or higher by 2025, Tennessee will have to produce 20,000 more graduates annually.  If successful in meeting this goal, Tennesseans could earn an estimated $6 billion in additional wages and salaries each year as the state enhances the ability to lure new and better paying jobs to the state.

     The higher education bill, called the "Complete College Tennessee Act of 2010" revises the Tennessee Higher Education Commission’s master planning responsibility to increase college completion, address economic development needs and differentiate institutional missions to increase collaboration and efficiency between Tennessee’s post-secondary schools.  State leaders have worked over the past several months to come up with legislation to achieve this goal with help from the National Center for Higher Education Management Systems and the Complete College America organization.   

     Performance-based funding -- The legislation puts the framework in place to retool the funding formula for higher education to make it substantially based on outcomes.  Currently the formula is based primarily on beginning of term enrollment.  The bill focuses on outcomes by calling for a funding formula that looks at end of term enrollment or student retention, as well as timely progress toward degree attainment and degree completion.  Community colleges will be engaged in the process of devising a formula that is fair, given the unique factors and the number of part-time and non-traditional students attending these schools.   

     Transferrable credits and establishment of a unified community college system --      The bill calls for a more cohesive system to be in place by Fall 2012 to unlock the potential of affordable and effective gateways to higher education through Tennessee’s community college system.  The legislation directs the Board of Regents to develop coordinated programs and services, including a 41-hour common course catalog to make credits earned at community colleges easily transferrable to the four-year college institutions.  This means that an associate of science or arts degree from a Tennessee community college will enable a student to transfer to a Tennessee public university as a junior.  Also, the 19 hours of pre-major courses will be transferrable as a block to meet the requirements of any Tennessee university offering that major.  This system will provide a clearly designated path for students to further their education after completion of an associate degree in the state’s community colleges.

     Dual enrollment / Remedial instruction -- The bill calls for dual admission and dual enrollment to community colleges and four year universities to be widely available for students intending to transfer.  The legislation, however, prohibits remedial or developmental instruction to be offered in a four-year Tennessee university, except when they coordinate with a community college to offer these courses to dually enrolled students.   

     Research Institutions -- The General Assembly has approved $6.2 million to establish a new world-class graduate energy sciences and engineering program at the University of Tennessee at Knoxville in partnership with Oak Ridge National Lab.  The premise is to make the university a top-25 public research institution by placing dramatically heightened levels of instruction in the nation’s premier national lab.  The move is expected to create 200 new faculty appointments among the existing researchers at Oak Ridge National Lab.   The partnership would be similar to one currently in place with the University of California at Berkeley and the Berkeley National Lab.  The bill, as amended, also allows any other four-year Tennessee university to establish an academic unit in collaboration with the Oak Ridge Lab.  It calls for keeping those entrepreneurial opportunities in Tennessee.     

     Similarly, the Memphis Research Consortium is recognized for inclusion under an amendment pushed by Senate Republican Leader Mark Norris (R-Collierville).  The Consortium includes 10 Memphis institutions, hospitals and businesses to collaborate on research, medicine and health care, computational and computer science, and engineering and learning technologies to promote long-term economic development and jobs in that area of the state.

     “The University of Memphis is Metropolitan Research University classified by the Carnegie Foundation for the Advancement of Teaching as a doctoral level high research university,” said Leader Norris. “This significant distinction enables collaborative research which leads to meaningful jobs and economic development.

     Tennessee Technology Centers -- On Tennessee’s Technology Centers, which have enjoyed a very high program completion rate, the bill calls for development of agreements between the technical centers and the community colleges to provide seamless transfer opportunities for students and reciprocal use of facilities and other resources.

     Accountability -- The bill has multiple accountability measures to better ensure implementation of the legislation.  Several provisions in the bill require date-specific reporting to legislative committees regarding the progress and plans for completion of the tasks laid out in the comprehensive measure.  

     “It is incumbent that we review the empowered agencies to make sure that those charged with implementation have fulfilled these reforms,” said Government Operations Chairman Bo Watson.  “The auspices fall to the Government Operations Committee who must be vigilant in making sure that we are on track and moving forward with the reform measures passed by the General Assembly.”  

     Upon adjourning the Special Session, the 106th General Assembly will meet immediately to take up the business of the regular 2010 legislative session.

Issues in Brief

     Parental Choice Scholarships -- The Senate Education Committee voted to create a pilot program in one persistently under-performing Memphis city high school to provide “Parental Choice Scholarships” for low income students who are eligible for free and reduced lunch.  The bill is sponsored by Senator Brian Kelsey (R-Germantwon).  However, action on the bill was deferred due to the time restraints for hearing the matter before the end of the Special Session.  The scholarships would be equal to the amount that state and local school systems would have spent on each child.  They can be used in the school of the parent’s choice, including charter schools, private schools, or other public schools if space is available.  The scholarship amount gradually decreases to 25% of the full amount as incomes rise up to two and a half times the eligible income for receiving free and reduced lunch.  Expect the legislation to come back before the General Assembly during the regular 2010 legislative session.

     “This provides poor kids with hope and real choices in what school they want to attend,” added Senator Kelsey.  “Children from wealthier families are more empowered to move to another school district or to afford a private school.  However, many students from low income families and who are zoned to a persistently failing school do not have another recourse.  Kids shouldn’t be victims of their own geography.”

     Race to the Top application submitted --   Tennessee has submitted the state’s application to compete with other states to receive up to $501.8 million in funds under the federal Race to the Top program.  The application was submitted on the same day the president called for adding $1.3 billion to the budget for the program.  The program currently has $4.3 billion allocated to it to reward states which are implementing significant reforms in four education areas: enhancing standards and assessments; improving the collection and use of data; increasing teacher effectiveness and achieving equity in teacher distribution; and, turning around struggling schools.  The grants are expected to be announced in April to be followed by a second round of competition later in the year.

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Capitol Hill Week

Tennessee General Assembly passes bold initiatives to transform education

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

     (NASHVILLE, TN), January 15, 2010 -- The Tennessee General Assembly returned to Capitol Hill this week in a Special Session to pass bold initiatives designed to transform education and place the state in position to be a top competitor to receive up to $485 million in federal funds.  The legislation, entitled the Tennessee First to the Top Act of 2010, was the result of the collaborative efforts of lawmakers, the governor, and numerous education stakeholders, including an education reform panel headed by former U.S. Senator Bill Frist called the State Collaborative on Reforming Education (SCORE).  Senate Education Chairman Dolores Gresham (R-Somerville) and Senate Speaker Pro Tempore Jamie Woodson (R-Knoxville) were also members of the SCORE panel.

     “I am very pleased this legislation has been approved by our General Assembly,” said Chairman Gresham.  “It gives Tennessee students across the state many more opportunities to succeed and improve their quality of life.  It also enables the state to provide our students with the kind of skills needed to draw new and better paying jobs to our state.”

     “I see this legislation as an opportunity to rethink education policy, to rebuild the box,” said Speaker Pro Tempore Jamie Woodson.  “It’s potentially transformational.  We have the obligation to prepare our students for a global economy.  This legislation provides meaningful reform to provide multiple opportunities to prepare our students for a brighter future.”

     The governor called the Special Session after recognizing that Tennessee has an opportunity to receive a large portion of the $4.3 billion federal “Race to the Top” dollars if the General Assembly acts promptly with certain education reforms.  Gresham was among many legislators who expressed their support for the legislation apart from the opportunity to apply for federal stimulus funds.  

     “To think we might have done this just for the money is inconceivable,” added Gresham.  “The receipt of federal funds is an added bonus to needed education changes that should be passed with or without federal intervention.”   

     Race to the Top is authorized under the American Recovery and Reinvestment Act of 2009 (ARRA) and is a competitive grant program to encourage and reward states who are implementing significant reforms in four education areas: enhancing standards and assessments; improving the collection and use of data; increasing teacher effectiveness and achieving equity in teacher distribution; and turning around struggling schools.

     These goals are also in line with recommendations from SCORE.  That panel held numerous public meetings last year seeking real, meaningful improvements in Tennessee’s education system. Their work has served as a compass for the General Assembly to understand the substantive changes needed to boost student achievement with seven of the panel’s key recommendations included in the innovative legislation.

     The state had to adopt legislation to conform to the Race to the Top requirements by January 19, 2010, to qualify for priority status for receiving funds.  Priority is given in the first round of awards to states that have already adopted an innovative and cohesive plan to improve education.  If Tennessee is successful, the funds would be split with half used for statewide efforts and half going to local education agencies if they agree to participate.  

     Teachers – “The legislation focuses on the belief that great teachers and school leaders make the biggest difference in student performance,” said Chairman Gresham.  “This legislation demonstrates our commitment to teachers and their professional development, recognizing their critical influence on Tennessee children.”  

     The bill capitalizes on Tennessee’s two decades of experience with the Tennessee Value-Added Assessment System (TVAAS) in evaluating student achievement on a year-to-year basis.  Currently, state law bans utilizing the value-added data for making decisions regarding teachers, including the granting of tenure.  The ability to use student achievement and teacher effect data is one of the linchpin issues for receiving Race to the Top funds.  Some of the details of the teacher and principal evaluation process included in the bill are:

    * Creates a Teacher Evaluation Advisory Committee composed of 15 members, including five K-12 teachers, two principals and one director of schools for a total of eight professional educators to recommend evaluation guidelines.
    * Requires annual evaluations using teacher effect data in teacher and principal evaluations.
    * Allows student achievement data to be a component of all teacher evaluations.
    * Thirty-five percent of a teacher’s evaluation would be based on the TVAAS teacher-effect data with another 15 percent based on other measurements agreed upon by the teacher and their evaluator, such as the end of year TCAP tests, ACT or Advanced Placement scores.
    * Requires tenure decisions to be based in part on teacher evaluations.
    * Grants tenured teachers the right to a hearing before an impartial hearing officer selected by the local board of education prior to any termination.
    * Provides that local school systems can create a local salary schedule for teachers and principals to allow local education agencies to reward professional excellence.
    * Gives teacher training programs access to non-identifying TVAAS data on their graduates to help identify the strengths and weaknesses of their programs.

 

     Under-performing schools -- On the issue of providing help for under-performing schools, the legislation focuses on early intervention so the state can take action sooner to get them back on track.  The bill allows the Commissioner of Education to move any public school or local education agency into a newly created “Achievement School District” if the school is in the fifth year of improvement status or at any time a Title I school meets the federal definition of “persistently lowest achieving schools.”  The school would then remain in that District until it achieves adequate yearly progress for three consecutive years, at which time it would transition back.   

     In the meantime, the bill allows for the Commissioner to contract with outside entities to manage the day-to-day operation of any or all schools or local education agencies within the Achievement School District.  Those who contract would report to the local education agency how the money is spent to increase accountability.

     STEM -- In addition to the legislation, the state plans to enhance its Science, Technology, Engineering, and Math (STEM) program, which will be included in the Race to the Top application.  The state is partnering with Battelle, which manages the Oak Ridge National Laboratory, to provide an extensive network of STEM programs across the state.  This includes building new science labs, adding new technology, and creating new curricula to inspire and create new interest in science and math.  Tennessee students must be proficient in these subject areas to compete in a changing global economy.

     Tennessee has compelling criteria to place it at the top of the list for Race to the Top funds.  Finalists in the competition will be invited to Washington to present their plans to the U.S. Department of Education in March.  The winners will be announced in April.  If successful, Tennessee can expect to begin receiving funds in September 2010 which will continue in equal increments over four years.  

Issues in Brief

     Worker’s Compensation -- The General Assembly approved legislation calling for immediate suspension of a new law to require sole proprietors and partners engaged in the construction industry carry workers’ compensation coverage on themselves due to unintended effects with the act.  The legislature will discuss alternative ways to address gaps in coverage for workers in companies of all sizes in the various construction fields in order to address the problem without harming small business owners.  Senator Bill Ketron (R-Murfreesboro) was sponsor of the bill, which now suspends the law until March 28, 2010.

     Voting machines -- The Tennessee Senate approved legislation to delay a law that would have required cash-strapped Tennessee counties to spend $30 million to replace their voting machines.  The legislation was easily approved by a vote of 70 to 23 in the House of Representatives last year with bi-partisan sponsors and support.   The vote in the Senate came after both Democrat and Republican county mayors from across the state expressed strong support in delaying the law due to the costs to taxpayers, absence of availability for up-to-date federally certified machines, and the fact that the machines will have to be replaced again in the immediate future to comply with new standards from Washington.  Those standards include over 100 new requirements, with many of these focused on allowing physically impaired voters to vote independent of assistance.  Senator Bill Ketron (R-Murfreesboro) is sponsor of the legislation.    

     State revenues continue negative trend – The state’s Department of Finance and Administration released Tennessee’s latest revenue collections this week.  The report showed a continued trend of negative tax revenue growth, with tax collections falling below budgeted estimates again in December. It was the 19th consecutive month of negative sales tax growth, with the general fund under collected by $50.8 million and the four other funds were under collected by $3.4 million.

   

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A Preview of the 2010 Legislative Session

Budget and jobs headline 2010 legislative agenda /

Special Session on Education is set to enable Tennessee to draw down federal funds for states with significant reforms  

     (NASHVILLE, TN), January 2010 –  The state budget tops the list of issues that will be debated as lawmakers return to Nashville to begin the second half of the 106th General Assembly.  Although the budget deficit will be the predominant driver for legislative action this year, other issues expected to be on lawmaker’s agenda in 2010 are unemployment and job creation, worker’s compensation, and preparing for Congressional action on health care that could negatively impact the state’s finances in the future.

     However, before the General Assembly begins the work of the regular 2010 legislative session, legislators are meeting in a Special Session on Education to consider legislative changes required to draw down federal “Race to the Top” dollars available to states. The governor called the Special Session after recognizing that Tennessee has an opportunity to receive these funds if the General Assembly acts promptly with certain education reforms.  Race to the Top is authorized under the American Recovery and Reinvestment Act of 2009 (ARRA) and is a competitive grant program to encourage and reward states who are implementing significant reforms in the four education areas: enhancing standards and assessments; improving the collection and use of data; increasing teacher effectiveness and achieving equity in teacher distribution; and turning around struggling schools.  

     The state must adopt legislation to conform to the Race to the Top requirements by January 19, 2010, to qualify for priority status for receiving the funds.  Priority is given to states that have already adopted an innovative and cohesive plan to improve education.  Such action could enable Tennessee to receive as much as $400 million of the $ 4.3 billion in federal funds set aside for states that meet reform guidelines. If Tennessee is successful, the funds would be split with half used for statewide efforts, and with the other half going to local education agencies if they agree to participate.

 

     The General Assembly is expected to consider the K-12 reform proposals first, followed by proposed changes to higher education in Tennessee.
 
     K-12 Education -- Some of the legislative topics expected to be debated regarding compliance with Race to the Top requirements include:

    * Requiring the use of teacher effect data in teacher and principal evaluations
    * Requiring tenure decisions to be based in part on teacher evaluations
    * Requiring annual teacher evaluations
    * Establishing a statewide recovery district for failing schools and school systems

 
     Expect legislation to focus on changing the way Tennessee evaluates teachers. The state already has one of the best evaluation databases in the nation to measures student’s achievements from year to year. Lawmakers will discuss tying this data to teacher evaluation, tenure, and performance pay. The SCORE (State Collaborative on Reforming Education) report, which stemmed from an initiative headed by former U.S. Senator Bill Frist, will serve as a compass in guiding legislators in their reform efforts.  The SCORE report recommended directly linking tenure decisions to teacher effectiveness.  It also recommended allowing student achievement gains to be included as one component of the teacher effectiveness measure before a final tenure decision is reached.  
 
     On the issue of providing help for failing schools, expect the legislative focus to be on early intervention.  If a school is low-performing, the state would be ready to take action sooner.  Several years ago, the legislature changed accountability measures to put Tennessee more in sync with No Child Left Behind standards. Proposals could also include new parameters by which schools will be classified as “failing,” and affix new accountability standards to the plan.

     Another area that could be addressed is the effectiveness of any statewide efforts to enhance Science, Technology, Engineering, and Math.  Tennessee students must be proficient in these subject areas to compete in a changing global economy.   

 
     On improving high school graduation rates, the legislature will consider proposals to place more emphasis on preparing students for college. This includes preparing students for community college and technical schools, in addition to the state’s four-year higher education institutions.  Some lawmakers favor greater utilization of the state’s two-year colleges as a preferred point of entry for incoming freshman.  Similarly, the General Assembly will likely consider making it easier to transfer credits between institutions to make post-secondary work flexible enough to meet the needs of more graduating seniors.   

     Higher Education -- On higher education, the General Assembly will look at a proposal to tie some funding to performance, which would be measured by the number of students who complete their degree program. Among other higher education issues proposed are changing the credit transferring process to establish a statewide transfer agreement between all two- and four year colleges and universities; eliminating remedial education in four-year institutions, and allowing students to dual-enroll in two and four-year institutions. The goal is to direct more students to post-secondary work that fits their academic and workplace needs. The plan would include streamlining and simplifying the process for students to  transfer, enroll, or dual-enroll.
 

     Worker’s Compensation --  The governor also broadened the call for the General Assembly to immediately suspend a new law in the Special Session which requires certain construction subcontractors and independent contractors to carry workers’ compensation insurance on themselves due to unintended consequences.  That law, Public Chapter 1041, took effect on December 31.

     A Joint Workers Compensation Committee heard testimony on the unintended effects of the new law in Nashville last October.  Those most impacted by the legislation are independent contractors and sole proprietors.   

     Recommendations for alternatives have been collected from consumers and affected industries and are being examined.   

     Budget -- The state is facing a budget gap that could go over $1 billion, making the 2010-11 budget the most challenging in recent history.  Unlike Congress, the Tennessee General Assembly is constitutionally bound to balance the budget.   Revenues have fallen short of the weak one percent growth projection assumed for the current budget year which started in July.  The weakening economic condition means lawmakers must be vigilant to make sure that taxpayer dollars are spent in the most efficient and effective manner.   

     As of December, the state was in its 18th consecutive month of revenue declines in an unprecedented economic downturn.  Although the state is in its deepest "fiscal downturn" in modern history, some of the cuts' potentially harmful effects, possible layoffs and reductions, have been greatly abated so far by some of the $5 billion in federal stimulus money for Tennessee, concealing what’s been going on in terms of revenues.  The General Assembly made $753 million in cuts (12 percent) last year, but approximately $526 million was added back with one-time funding, minimizing the first year appropriation reduction to only $227 million.  Now the state must look at making these cuts without money to backfill.   

     The administration asked Tennessee’s various state departments for 6% to 9% more in reductions on top of the $753 million already identified in the current budget year.  Hearings were conducted in late November regarding the reduction plans submitted to the governor from state agencies.  The various departments presented grim pictures under their spending reduction plans, including the Department of Mental Health which placed on the table what they termed “draconian” cuts in core services like alcohol and drug treatment, the behavioral health safety net and community mental health support services.  In TennCare, departmental officials said everyone on the program except pregnant women and children will be affected by the plan they offered.  The officials said they might also have to impose a $10,000 annual cap on hospital coverage, an action that must have approval from the federal government.   

     Other departments and agencies of state government echoed similar lists of painful cuts for consideration to help balance the budget.  

     Economists predict the state's tax base won't return to 2008 levels until at least 2014.

    

        Unemployment -- One of the most significant factors attributing to the state’s budget gap is the high unemployment rate.  Job losses are at 10.3 percent statewide, as of December, a level not seen since the early 1980s.     

   The prolonged unemployment rate has greatly stressed the state’s Unemployment Compensation Fund.  The fund is expected to be very close to broke by the end of 2009 and could possibly dip into the red in the first quarter of 2010.   Expect the solvency of the fund to be a topic for discussion again this session, as the governor has already indicated that the administration may bring a proposal to broaden the wage base during the upcoming legislative session.  

     Bredesen won approval of legislation last session to broaden the taxable wage base to $9,000 from $7,000 and adopted a 0.6 percent premium charge.   Although the state can borrow money to keep the fund solvent without interest until December 2010, any additional funds would require interest from the federal government that could cost businesses more in the long run according to the administration.  Federal control of the state’s fund would mean Washington could dictate future tax rates and wage base thresholds.  Twenty-four states have already borrowed money from the federal government to keep their unemployment funds solvent.   

     The nation has lost 8 million jobs during this recession, which is more than the last four recessions combined.  Tennessee has shared evenly in this loss with a 5 percent decline.  However, Tennessee had the 17th largest private sector loss.  The stimulus package passed into law by Congress has not made any notable improvements in private sector job recovery in the state.   

   Rural Tennessee communities have been hardest hit by the recession, due to the loss of non-durable manufacturing plants located in these communities.  The cities have a more diverse workforce, many of which are service-oriented, a sector of the job market that has not taken as hard a hit as manufacturing and other jobs found in rural areas.  Every industry in Tennessee is in decline, except health care and education.  The hardest hit industries are construction, which has suffered at a 20 percent loss and non-durable manufacturing, at a 10 percent decline.   

   One of Tennessee’s key state economic advisors, Dr. William Fox of the University of Tennessee, does not predict state revenues will start growing again until employment begins to move in the right direction.   

     Congressional Action -- As Tennessee struggles to make ends meet in our state budget, the state is also bracing for the health care proposal currently pending in Congress.  The proposal could cost the state anywhere from over $800 million to $1.4 billion from 2014 to 2019, depending on which version is passed.  The decision from Washington could have dire effects on the state’s budget and the ability of Tennessee to control its own health care program.

     In the wake of Senator Ben Nelson’s “cornhusker kickback,” Lt. Governor Ron Ramsey has already asked Tennessee’s Attorney General to offer preliminary legal options to the Tennessee General Assembly as to how we may best protect our citizens from this unfair and quite possibly unconstitutional federal action.  Senate Majority Leader Harry Reid has publicly acknowledged the critical sixtieth vote in favor of passage was cast by Nebraska Senator Ben Nelson in exchange for inclusion of a provision within the health care legislation to hold the State of Nebraska harmless from increased costs arising from the proposed Medicaid expansion. Taxpayers in all other states will be required to annually pay millions of dollars to offset increased Medicaid costs, without any rational basis for favoring Nebraska taxpayers over taxpayers in Tennessee or any other state.

     Expect legislation to be introduced this session called the "Health Care Choice Act" to allow Tennessee to join a reciprocal compact with other states so that citizens can purchase health insurance plans from companies in other states, a practice that is currently prohibited.  The Health Care Choice Act will expand the number of health care plans available for purchase from 127 in Tennessee to potentially more than 5,000 plans nationwide.  At least 5 other states have introduced similar legislation, including New Jersey, Colorado, West Virginia, Pennsylvania, and Washington. A bill introduced on the federal level also aims to allow states to enter into an interstate compact to sell health insurance over state lines.  

     There may also be a proposal to limit, alter or oppose selected state or federal actions, including single payer provisions and mandates that would require purchase of insurance.  At least 11 states have already seen legislation filed in opposition to certain health reforms associated with the plans pending in Congress.   

     Another bill pending in Congress that could have dire effects on both Tennessee consumers and the state’s ability to attract or retain jobs is the “Cap and Trade” bill.  Placing a fee on carbon being emitted into the atmosphere would effect Tennessee consumers in a wide variety of ways, from driving cars to burning coal to generate electricity.  Legislation was approved by the State Senate last year, but still awaits action in the House of Representatives expressing Tennessee’s opposition to the proposed federal carbon cap-and-trade system.   

     Over one-third of Tennessee’s manufacturing jobs have been lost to China and India, who are unlikely to join a global cap and trade agreement.  U.S. plants are three times more environmentally efficient than Asian manufacturing.  The cap and trade bill would cause the loss of Tennessee jobs and investment, while increasing greenhouse gases in countries that do not have the same restrictions.

 

      Jobs and economic development -- Most lawmakers agree that Tennessee must be aggressive in bringing new jobs to the state to weather the economic storm.  This includes making Tennessee a business-friendly state by holding down taxes and government red tape.  Senate Republicans have worked diligently to resist efforts to erode Tennessee’s business friendly status.  Expect Republican lawmakers to continue to defend the rights of small business owners against any further efforts to place government mandates on companies within our state boundaries.  

     Senate Republicans will be on the offense to address job growth in the state.  The state’s economic downturn and the rise in unemployment, provides legislators with serious financial challenges, but economic development and job creation will be a top priority of the upcoming legislative session.  Look for legislation to be introduced in the 2010 legislative session to expand an innovative new program sponsored by Republicans last session called TNInvestco.   

     Small businesses provide 67 percent of first jobs and produce 55 percent of innovations.  TNInvestco helps to make investment capital available to small, medium and start up businesses in Tennessee.   The goal is to develop Tennessee’s entrepreneurial infrastructure, to bring additional capital into the state, to diversify the state’s economy and to create “anchors” or “clusters” of business innovation which can result in new companies being created in Tennessee.

     In October, six investment firms were chosen to receive an allocation of $20 million dollars in gross premiums tax credits which will be marketed to insurance companies to create a pool of venture capital funds for investment in start-up and mid-stage companies in Tennessee.  Capital returned to the state through the program must first go to the General Fund.  Once enough money has been repaid, the remaining funds will be deposited in the Rural Opportunity Fund.  Two alternate investment firms are ready to participate in the program upon expansion.  

     The overwhelming majority of jobs in this state are created by small businesses.  That is why it is so important to encourage the growth of small businesses.  This new program provides a viable alternative for many companies to get the capital needed to grow and create jobs.  

Education reforms on front burner in 2010 legislative session

     Education reform will be on the front burner in the upcoming 2010 legislative session with a number of legislative recommendations coming from a blue ribbon panel studying ways to make Tennessee’s K-12 schools number one in the Southeast within five years.  The group, State Collaborative on Reforming Education (SCORE), was headed by former U.S. Senate Majority Leader Bill Frist and enlisted educational experts from selected think tanks, colleges and universities, as well as key government officials, business leaders, and representatives of the Tennessee Teacher Education Association.  Their report, entitled “A Roadmap to Success” lists 63 measurable steps to reform education in the state, some of which will need legislative approval this session.

     SCORE -- Tennessee currently ranks 41st in student achievement.  Only 63 of every 100 Tennessee ninth graders will graduate from high school, and only 17 will complete their college education within six years after graduating.  This is at a time when Tennessee students will not only have to compete against students in the Southeast region, but with those in China and India.

     Some of SCORE’s key recommendations will be taken up in the Special Session on Education.  Legislative recommendations coming from the SCORE Report will not to be “budget-breaker” initiatives that will cost the state tens upon millions of dollars.  It can begin by utilizing the resources the state already has and taps into private funding, like the Gates Foundation, to implement innovative new teaching strategies.

     The SCORE report recommendations are based on four key strategies:

    * Embrace High Standards
    * Cultivate Strong School Leaders
    * Ensure Excellent Teachers
    * Utilize Data to Enhance Student Learning

 

     The report calls for more rigorous assessments and higher academic standards to create a culture of high expectations.  It prescribes additional teacher support to elevate classroom instruction to meet those expectations, including the creation of professional learning communities where teachers can learn best practices.  In addition, the report recommends focusing on recruiting the best and brightest into teaching through teacher preparation programs and by expanding high-quality alternative licensure programs.   

     In order to retain the best teachers, the report recommended fundamentally rethinking our compensation systems to reward excellence. Similarly, to promote excellence in school leadership, the SCORE report calls for creation of a statewide leadership initiative focused on enhancing the scope and quality of existing leadership training programs.    

     The report recommends greater use of data, which it says should be used on a continual basis and managed in a way that allows educators to differentiate instruction and provide low-performing students with more time on task.   Technology is also the impetus behind the recommendation that the state identify low-cost ways to expand e-learning, dual enrollment, dual credit, early college high schools, advanced placement, and International Baccalaureate courses.  This will provide high school graduates more pathways for transitioning into the workplace or postsecondary education.

     These are just some of the concepts embraced in the recommendations presented in the report and that could be under legislative consideration in 2010.  SCORE is designed to jumpstart long-term educational change in Tennessee to ensure that every child graduates from high school prepared for college or a career.

     Education Budget – Keeping Tennessee’s education improvements moving forward will be a key concern this year as Tennessee struggles to make ends meet in the toughest economic year in recent history.  About $82 million would be needed to fund inflationary growth to the state’s $3.9 billion Basic Education Program, the state’s funding formula for K-12 schools.  The Basic Education Plan (BEP) received a major overhaul in 2007 in the way it disperses money to local governments.  The first year was a substantial down payment on the reformulation of the BEP at $290 to $295 million.  The Tennessee General Assembly intended to implement the second of several phases of BEP 2.0, Tennessee’s formula for funding K-12 schools in 2008 before the state finances began to decline.  It is unknown as to when the next installment will take place.

     In a budget proposal where deep cuts will be made in critical services, it will be very difficult for education to go unscathed.  Those programs singled out by Department of Education officials as possible areas for cuts are the Coordinated School Health Program and contracts paid to teachers under the Career Ladder program.

     Higher Education – Expect to see attention in higher education shift to improving graduation rates and student performance at the state’s colleges and universities, most of which will be discussed in the Special Session on Education.  Some lawmakers favor greater utilization of the state’s two-year colleges as a preferred point of entry for incoming freshman.  Enhancing the lottery scholarship funds received by students enrolling in these two-year colleges may be proposed to accomplish this task.  Expect efforts to remain on keeping the lottery scholarships promises already made to recipients of the grants.   

     Meanwhile, there has been some discussion regarding enhancement of the University of Tennessee at Knoxville’s status as the state’s “flagship” research institution.  All Tennessee’s colleges and universities have benefitted by the stimulus funds made available under the education provisions of the federal American Recovery and Reinvestment Act. However, that money, is set to expire in 2011 when the state’s colleges and university systems will be forced to cut about $250 million from their budgets.   

Anti-crime bills, DUI, immigration and Second Amendment rights bills set for discussion when General Assembly reconvenes

     Several anti-crime, drunk driving and immigration bills are set for discussion when the General Assembly reconvenes.  However, many of the measures will face very strict fiscal scrutiny based on the state’s weakened financial condition.  The state faces substantial budget cuts for the 2010-11 budget year, including a Bredesen Administration proposal to possibly release over 3,000 non-violent felons from the state’s prisons or county jails.   

     Sex Offender Registry -- Among issues still on the table from the last legislative session is one to place violent juvenile offenders on Tennessee’s Sex Offender Registry as required under the federal Adam Walsh Act.  This legislation, which would place offenders between the ages of 14 and 18 years of age on the Registry, would save governments across the state from losing millions of dollars in federal Byrnes grants.  The bill would apply to those 14 years old and older who are convicted of rape, aggravated rape, aggravated sexual battery, rape of a child and aggravated rape of a child.    

     Tennessee was awarded over $50 million in Byrne Grant funding last year, 10 percent of which could be in jeopardy unless the state adheres to these requirements.  The Walsh Act requirements had been scheduled to go into effect in 2009.  In June, U.S. Attorney General Anthony Holder signed a one year agreement to extend the deadline for states to comply with the Sex Offender Registration and Notification Act.  Only Ohio has complied with the law thus far.

     The Adam Walsh Act is the sweeping federal law, named after the murdered 6-year-old son of “America’s Most Wanted” host John Walsh, required states to adopt strict new standards for registering sex offenders and providing public information about their crimes and whereabouts. This included publishing photos and addresses of sex offenders online and toughening criminal penalties for those who fail to register, among other provisions.   

     Tennessee has made substantial progress at protecting children against child sexual predators over the past three years with passage of sweeping reforms of the state’s child sexual predator laws, exceeding the Walsh requirements in some areas effecting child sexual predators.  The Juvenile Registry is the final hurdle to bring the state into compliance with the Adam Walsh Act.  

     Protecting children – Several other bills protecting children are still pending action from last year.  One such bill would let law enforcement act more quickly to protect children from sexual predators using the Internet. The bill authorizes district attorneys general or assistant district attorneys general to issue a subpoena to require production of records related to the Internet or computer use in cases of sexual exploitation of a minor.  The bill would allow the prosecutor to subpoena the name, address, local and long distance connection records, length and types of service utilized, telephone number, and means of payment for the service.   

     Actor and child protection activists David Keith, spokesman for the National Association to Protect Children, told lawmakers the United States consumes more than 50 percent of the world market of that multi-billion dollar global industry.  Since 2005, more than 750,000 pedophiles have been identified by computer in the United States, with only two percent of those being investigated.   

     Second Look Commission – Another bill associated with the National Association to Protect Children that will be debated this year would set up a Tennessee Second Look Commission to review cases and procedures related to child sexual abuse.  The Commission would review cases from the initial report of alleged abuse through to a finding or criminal conviction of abuse.  Proponents say the bill is an important first step in understanding how the system fails endangered kids. The Commission would be administered through the state’s Administrative Office of the Courts (AOC).   

DUI legislation pending action in 2010 legislative session

     The legislature will come back this year to debate two key DUI bills that are pending action from the last legislative session.  One bill would ban open containers of alcohol in vehicles, while the other would require ignition interlock devices to be installed in automobiles driven by DUI offenders.     

     There were 3,356 drunk drivers arrested for drunk driving statewide in 2008 and 327 alcohol-related fatalities. About 37% of all traffic fatalities are DUI-related. It is the leading cause of death for people from 2 to 33 years old.

     Open Container Bill -- The open container bill addresses a loophole in Tennessee’s current law that allows drinking drivers to “pass the bottle” to a passenger if they get pulled over by law enforcement.  The full Senate approved the legislation in 2009, but the bill failed in a subcommittee in the House of Representatives, even though the bill contains language that exempts taxis, limos, and party buses.   

     The bill would have allowed the state to have control over $12 million in federal highway funds, which have been redirected due to non-compliance with federal safety requirements that includes a ban on open containers of alcohol in vehicles.  The transferred funds may be used only for alcohol-impaired driving countermeasures, enforcement of drunk driving laws, or hazard elimination programs.    

     The National Highway Safety Administration (NTSB) claims open container laws reduce the number of alcohol-related traffic fatalities by 5.1 percent.  Tennessee is one of only eleven states without an open container law.

     Ignition Interlock -- The NTSB has also urged passage of a more uniform and mandatory system for installation of interlock in Tennessee, which will likely garner continued legislative debate this year. Interlock devices are small pieces of equipment attached to the steering wheel of a car with a tube that the driver must breathe into in order to allow ignition to start. About one-third of all drivers arrested or convicted of driving while intoxicated are repeat offenders.

 
     The current alcohol ignition interlock technology makes it easier for courts to require drunk drivers to utilize the device.  The legislation is designed to help curb repeat offenses and get drunk drivers off Tennessee roads.

    

     DUI / Impact to Victims – Expect legislation to be debated this year calling for courts statewide to utilize a program providing that drunk drivers hear from victims of crime regarding the tragic negative consequences they have experienced due to a DUI or alcohol-related crash. The goal is to provide offenders with a clearer picture of the direct results of his/her choice to drink and drive.  

     Under such a program, the offender would be assigned to a local program upon being sentenced. It would then be up to the courts to take action against those who did not comply.

     According to the John Howard Society, some studies have shown that permitting victims to make statements and to give testimony is psychologically beneficial to them and aids in their recovery.  Several Tennessee counties already utilize a DUI program involving crime victims.  The legislation would expand such efforts statewide.

 

General Assembly will revisit Second Amendment rights bills

     Clarification / Restaurant Carry -- The General Assembly passed several bills during the 2009 legislative session that uphold the U.S. and Tennessee’s Constitutional right to bear arms.  Among Second Amendment rights bills approved in the last session of the General Assembly was a new law to allow law-abiding handgun permit holders to “carry” into restaurants serving alcohol as long as the owners of the premises have not posted notification that they are banned.  That bill, however, was struck down by Davidson County Chancellor Claudia Bonnyman, who said the law was ambiguous.  The state plans to appeal the decision which could take up to a year reach the court.

     In the meantime, legislation will be filed this year to address any “vagueness” in the new law as the Judge’s decision centered on that issue.  Look for the new legislation to have clarifying language, particularly as it applies to the posting of notices.   

     Privacy of information / permit holder database – Another gun bill which could come again before State Senators aims to protect the confidential information of handgun permit holders.  The proposal, SB 1126, would protect the confidential information by removing the handgun permit holders’ database from provisions of the state’s open records law.  Many citizens have been offended by the publication of the database by newspapers and media websites.  Permit holders fear criminals will use the information to target their homes to steal weapons, while those who do not own guns are worried about the risk of being identified as a home without a firearm.

 

Lawmakers to consider traffic camera proposals

     Lawmakers will consider several traffic camera proposals in the 2010 legislative session. The use of automated systems for surveillance of intersections and roadways is growing as more communities across the state are utilizing the devices.  

     Despite the testimony from law enforcement officials regarding the public safety aspect of utilizing the cameras, lawmakers say they receive regular complaints from constituents regarding their use. This includes violation of rights and that the motivation behind the cameras is money instead of safety.  Expect several bills regarding this issue to be debated this year in the General Assembly, from a direct ban on the cameras to restrictions on how the fines must be utilized.  Legislation has also been discussed forcing communities to display clearer signage and mandating that only companies headquartered in Tennessee be allowed to operate or process cameras or citations.

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