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Week of June 11, 2007
On Tuesday, lawmakers concluded their business and adjourned the first annual legislative session of the 105th General Assembly. The session culminated with passage of the $27.9 billion budget for the 2007-08 fiscal year. The budget provided for a record investment in education of $588.4 million, an extraordinary deposit into the state’s “Rainy Day Fund” of $253 million and an unprecedented tax relief package totaling nearly $60 million.
Senate Republicans have long advocated for lowering taxes. With the outstanding revenue growth of the past year, the time was ripe for returning money to the taxpayers.
A measure to reduce the sales tax on food was guided through the Senate by Sen. Mae Beavers (R-Mt. Juliet). SB 568 lowered the current state sales tax on food from 6% to 5½%. Sen. Beavers recognized that it may not seem like much, but it is a good first step.
During the last election, 84 percent of Tennesseans voted to amend the state constitution to allow local governments to freeze property taxes for homeowners 65 and up. Sen. Mark Norris (R-Collierville), the prime sponsor of the proposal, has been working all session on language to enable the measure. SB 2 will allow local governments to use the median household income of people ages 65-74 in each county as the maximum income level for seniors to qualify for the property tax freeze.
The legislature also approved a measure that will help veterans with their property taxes. SB 28 allows any veteran who has service-connected permanent and total disability to qualify for property tax relief.
Included in the Republican Tax Relief Package, is an additional sales tax holiday weekend to take place in March 2008. Current law already provides for one annual sales tax holiday to take place at the beginning of the school year in August.
Tennessee, like most households, has a savings account. The Revenue Fluctuation Reserve Fund, more commonly called the “Rainy Day Fund”, was created to help state officials in difficult economic times. Funds in the account can be used “to meet unexpected shortfalls of revenue or to meet expenditure requirements in excess of budgeted appropriation levels”.
In recent history, the state has used all of its reserve funds in the account. Careful management by the legislature has helped restore the fund to record levels. This year, the Senate approved depositing an additional $253 million into the account which will bring the fund to a total of $750 million.
Republicans are proud to have the “Rainy Day Fund” at record levels. This investment will protect the state and taxpayers when revenues begin to dip.
Earlier in the month, the Senate overwhelmingly approved a proposal to overhaul the Basic Education Program (BEP). The plan includes a new fiscal capacity model, an elimination of the cost differential factor (CDF) and an increase in the state's share of teacher pay.
The Senate also unanimously passed SB 570 by Sen. Randy McNally (R-Oak Ridge). As amended, the bill called for more accountability in the state’s public schools. The Republicans in the Senate firmly believe that if additional funds are going to local governments for education, more must be required of the schools.
The bill includes provisions to give principals more control and to increase standards for student achievement. Another key component will allow local education agencies to develop guidelines to offer differentiated pay plans, including bonuses, for highly qualified teachers in certain needed areas like math and science.
The approved budget includes a number of components of the Tennessee Public Safety Coalition’s (TPSC) legislative crime package. Funding for the “Crooks with Guns” legislation, sponsored by Sen. Norris, was included in the budget. The cost, $23.4 million, is the largest investment in crime prevention since the sentencing act of 1989.
Sen. Randy McNally (R-Oak Ridge) and Sen. Beavers successfully secured funding for an additional 32 assistant District Attorneys and 19 assistant Public Defenders.
The Senate continued to pass laws cracking down on sexual predators in the final days of session. SB 230 by Sen. Diane Black (R-Gallatin) requires individuals convicted of repeat sexual offenses to serve 100% of their sentence.
A measure similar to the well publicized “Jessica’s Law” was approved by the legislature as well. Sen. Tim Burchett (R-Knoxville), Sen. Beavers, Sen. Black and several others have worked tirelessly to ensure that sexual offenders stay behind bars. SB 2235 increases the minimum penalty for rape of a child to 25 years in prison. Currently the minimum penalty is 15 years in prison.
Senate Republicans also dealt a strong blow to those employing illegal aliens. SB 202 by Sen. Bill Ketron (R-Murfreesboro) passed both the Senate and the House in the waning days of session.
As amended, the bill provides for the Commissioner of the Department of Labor and Workforce Development to order the appropriate regulatory board or local government to revoke, suspend or deny a person’s license if that person is unlawfully employing an illegal alien and the violation has occurred within the scope of practice of a license issued by the state of Tennessee.
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