

| State Senate |
| State Senate |


| The Weekly Wrap - a newsletter of Rep. Susan Lynn February 5, 2010 |
| General Assembly is presented with proposed budget The 106th General Assembly was presented with the proposed 2010-2011 state budget this week, as the Governor addressed a joint convention on Monday night. Overall, the proposal includes a 5 to 6 percent decrease in the budget total, with roughly $200 million being used from both the Rainy Day Fund and the TennCare reserve fund. Lawmakers are eager to do their due diligence and fully vet the proposal in the coming weeks as budget hearings begin in the House Finance, Ways and Means Committee. The details of the proposal will become clearer as representatives from the various departments will be available during the hearings to answer questions and concerns. In his speech, the Governor presented a quick overview of the 612 page budget document that was delivered to legislators’ offices the same day. Though some specifics regarding revenue and proposed expenditures were outlined, lawmakers say that they remain committed to fully discussing the budget over the coming weeks as they learn more about the details. Legislators have been stressing the importance of facing the challenges in the budget head on and viewing them as an opportunity to return government to its most important tasks. The legislature will work hard in the coming weeks to examine the budget document, and make common-sense decisions that will protect Tennessee taxpayers. Priorities protected The Department of Safety had originally prepared to cut state troopers in 13 rural counties. However, the Governor is proposing a $2.00 driver’s license renewal fee increase intended to avoid those layoffs and pay for new radio equipment for the state troopers. Currently, it costs $19.50 every five years to renew a Tennessee driver’s license. The proposal increases that fee to $46 every eight years, which state officials say will make the process more efficient. The driver’s license renewal fee was last increased in 1988. K-12 escaped major cuts, with the proposal protecting BEP funding and even includes $47 million in growth funds. Classroom funding remains intact. However, K- 12 capital projects were cut, as were many capital projects across the state. The Tennessee Consolidated Retirement System will receive an infusion of $82 million to shore up the fund. In addition, 1200 more state employee positions will be cut although most of those are currently unfilled. And the Governor has included a one-time bonus of 3 percent for state employees. Recurring Reductions Some lawmakers have, for years, said the state budget should be treated like a family budget. The Governor addressed this issue Monday night, stressing that we ‘must adjust our expenses to match our income.’ With the state in its 20th straight month of revenue decline—a record—some reductions are inevitable. They include: • $200 million in recurring reductions in TennCare; • $64 million reduction in higher education; • $20 million recurring reductions in K-12 capital projects; and • $16 million in recurring Child Services Technical Corrections Bill The technical corrections bill originates in the Department of Revenue and was formerly a bill to clarify or make technical corrections to state law. As has occurred for the last five years, the bill again proposes revenue increases through specific changes to the Tennessee Code. This year, the legislation includes a tax on real estate investment trusts, and an increase in the cable tax, totaling $49.8 million among a few other smaller proposals. The first $15 of cable TV service is currently taxed at 8.25 percent, with the rest being exempt. On the other hand, satellite TV is taxed at 8.25 percent, but without the $15 exemption. The technical corrections bill proposes to tax an entire cable TV bill at 8.25, bringing it in line with satellite service. In addition, cable providers will be charged a new tax on equipment such as cable boxes. Members have expressed concern that this equipment tax will be passed on to the consumer. Secret Ballot Protection Act dies in subcommittee The “Secret Ballot Protection Act” appeared in the Employee Affairs Subcommittee this week by a party-line vote. The proposal defines the denial of secret-ballot elections as an unfair labor practice. It also establishes penalties (class C misdemeanor) and civil remedies for violation. The bill is a remedy for the “card check” legislation which has been proposed in Congress. Card check would require unionization ballots to be public, so that a union representative could see if a worker voted for or against unionization. Currently, the vote on whether to unionize is a secret ballot, which protects workers from undue harassment by union leaders. The Secret Ballot Protection Act would declare that those votes remain private in order to protect workers. As sponsor, I argued that voting is a Constitutional right - that right has been interpreted by the Supreme Court to be by secret ballot - this should always apply to voting at the workplace as it does now. This bill would have ensured that no Act of Congress or otherwise can take away the right of an employee to cast his or her vote by secret ballot. In other words, a body of elected officials voting by majority cannot take away a Constitutional right of the minority - even at their place of work. The bill is consistent with the state’s Constitution in guaranteeing ballot secrecy. House to vote next week on veto-override of menu-labeling measure A bill that would have barred unelected boards and commissions from requiring nutritional labeling on menus passed both the House and Senate last year, but was then vetoed by the Governor. The legislation was filed as several states, as municipalities and cities began considering laws that mandated chain restaurants put calories and other nutritional information on menus. I sponsored and passed this bill last year arguing first that unelected boards should not be creating such policies as they are unaccountable to the people and there is no voter recourse. In addition, such requirements place great expense on restaurant owners in an already struggling economy and create an atmosphere that is unfriendly to business owners. This expense is paid for by the consumer through higher food prices. Often such laws are selective, and vary from municipality to municipality creating enormous difficulty, confusion and expense for restaurant owners to following the laws properly. The legislation also specifies that if the federal government passes legislation requiring menu labeling and the federal action specifically authorizes state departments to enforce such action, then the Tennessee Department of Health will be the department that is primarily responsible for the implementation and supervision of the new requirements. The Senate has already voted on the veto override, with a vote of 24- to 7. The House is expected to take up the veto override next week. |