Tennessee: House Democrats push use of reserves for budget

NASHVILLE - House Democratic leaders say they will push the use of reserves as an alternative to a Senate GOP plan that makes more than $100 million in cuts that Democrats say will hurt "teachers, farmers, working families" and others.

"The budget proposal offered by Senate Republicans is unacceptable and shows a fundamental lack of compassion for Tennesseans," said House Minority Leader Gary Odom, D-Nashville. "What Tennessee needs is a budget that will lead them to recovery, not ruin."

Senate Republicans unveiled their plan Tuesday as an alternative to Democratic Gov. Phil Bredesen's latest budget proposal, which includes about $133 million in tax and fee increases, including an $85 million provision lifting the sales tax cap on big-ticket items costing more than $3,200.

The GOP plan would eliminate $113 million in bonuses for state workers, teacher and higher education employees. About $34.5 million in money for some 29,000 teachers who receive additional stipends under the Career Ladder program would be moved from recurring to non-recurring funding, raising the possibility it could be eliminated in two years.

Other cuts include $6 million in agricultural grants $720,000 in anti-meth grants.

While Democrats oppose the cuts, they aren't falling all over themselves to go with the governor's proposed tax increase. Instead, they turned to the state's still considerable reserves.

"Our Rainy Day Fund is for a rainy day and, here in Tennessee, it's raining," said House Speaker Pro Tem Lois DeBerry, D-Memphis.

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