Tennessee doesn't have the questionable "luxury" of running budgets in red ink. Unlike the U.S. government, Tennessee has to have balanced budgets, as it should, even when it is hard. So Gov. Phil Bredesen has done his duty and proposed a balanced budget -- the hard way.
He proposes spending $28.41 billion (which includes both state and federal tax funding) -- a 5.1 percent reduction from the current $29.95 billion budget. (State funding would rise from $12.21 billion to $12.44 billion.)
Painfully, there will be reduction of 1,363 current state jobs, plus elimination of 456 currently vacant positions. That's tough! Some jobs would be saved by drawing money from the state's "Rainy Day Fund" and TennCare reserves.
The governor would increase fees for driver's licenses, from $19.50 for five years to $46 for eight years, to raise $21.9 million more a year.
He would raise $49.8 million through taxes on cable and telecommunications services, and real estate investment dividend paid deductions, to offset some cuts.
He would provide $46.7 million for growth in pre-kindergarten programs and the Basic Education Program. Using $533 million from federal "stimulus" funds, there would be $3.8 billion for pre-K through 12th-grade education.
There sadly would be $24 million in cuts for the University of Tennessee system and $38.9 million for the Board of Regents colleges. The University of Tennessee at Chattanooga would "lose" $2.63 million but have $2.44 million "restored" from one-time stimulus funds. Chattanooga State would "lose" $1.27 million, but have $1.18 million "restored."
These and other budget adjustments will be difficult -- but Tennessee's budget will be balanced!
We commend Gov. Bredesen and other state officials for doing the necessary hard job in the best way they can, to be responsible to all the people of Tennessee.
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