State of the State: Haslam doubles down on education

Tennessee Gov. Bill Haslam delivers his State of the State Address Monday, Feb. 1, 2016, in Nashville.

NASHVILLE -- Tennessee Gov. Bill Haslam unveiled a $34.8 billion budget Monday that calls for investing $261 million in new money for K-12 education in areas ranging from teacher pay to adding a 12th month of state funding for teacher health insurance.

During his annual State of the State address to the state House and Senate, Haslam called it the biggest investment in K-12 education in state history that isn't relying on a state tax hike.

But it does rely on huge increases in revenue growth - $703.8 million - as Tennessee's economy continues to recover from the Great Recession. And other spending, including a $35.9 million renovation of the University of Tennessee at Chattanooga's old Lupton Library and another building, also relies on a jaw-dropping surplus of nearly $1 billion in one-time money built up from last fiscal year and projected surpluses in the current budget year.

"Our commitment to education continues in a big way tonight," Haslam said of his improvements in K-12 spending. "What's important in all of this is that we're not investing in the same old public education system in Tennessee. We've raised our standards. We've linked teacher evaluations to student performance, and we've expanded education options for children. We're showing historic progress, and we can't back up."

But while Haslam touted this year's increase, which includes $104.6 million for teacher salaries and $45 million for increasing teacher health insurance coverage to 12 months, it remains to be seen whether it's sufficient to satisfy school boards in Hamilton County and six nearby counties.

The seven counties last year sued the state, charging Tennessee's current school funding formula shortchanges them. The lawsuit is now pending before a Davidson County Chancery Court judge, who may decide the case based on whether the state is making a good-faith effort to improve funding.

Besides the teacher raises and insurance, Haslam is also recommending providing an additional $48.8 million to account for more students and inflation in the state's Basic Education Program funding formula.

The administration says counting the current fiscal year and his newest proposal, Haslam is putting $414 million in additional money into Tennessee schools, with more than $200 million of that increase going for teacher salaries.

Efforts to reach two Hamilton County School Board members were unsuccessful Monday night.

But Will Pinkston, a Metro Nashville School Board member, labeled Haslam's proposal "modest" and said it "falls far short of what's needed to adequately fund K-12 public education in Tennessee."

Pinkston, a one-time top aide to former Gov. Phil Bredesen, said Comptroller Justin Wilson told House Finance Committee members last week that the Basic Education Program funding formula is underfunded by at least $500 million and Pinkston added he believes it may approach $1 billion.

He accused the GOP-led Legislature of "force-feeding unfunded mandates on local school systems like unchecked charter growth and now, potentially, vouchers.

"It's this frustration and exasperation that has led a growing number of school systems to go to court," Pinkston said. "The reality is: At a time when we're asking more of our students and teachers than ever before, the state of Tennessee is not upholding its end of the bargain."

The theme of Haslam's address Monday was "this is what we do." He stressed again and again what the state has done and continues to do in areas ranging from pushing for student testing improvements to National Guard Armory security upgrades in response to the July attacks in Chattanooga.

Haslam is also proposing beefing up the state's Rainy Day Fund by $100 million and bringing it to $668 million by July 2017, the second highest level in state history.

"The reality is that the state of our state is one of unique opportunity, an opportunity that must not go to waste," Haslam told lawmakers. "This opportunity is a result of a strengthening economy combined with the hard work and discipline of our departments and the conservative fiscal strategy employed by the General Assembly, our constitutional officers and this administration."

But the governor also noted he has slashed $500 million in state spending over his six years in office.

"By managing wisely and investing strategically, we're making tax dollars work harder for Tennesseans. This is what we do," Haslam said.

This year's State of the State address is also noteworthy for what Haslam did not say. Last year, he proposed expanding Medicaid to an additional 280,000 Tennesseans through the Affordable Care Act. He was rebuked by fellow Republicans. No mention of that was made in Monday's speech.

Nor was Haslam's hope for lawmakers to increase funding for transportation, an increase that would have had to have relied on a gas tax increase. A number of top Republicans said it was no go.

What Haslam did do was accede to fellow Republicans' demands that he repay the state at least part of the $260 million taken from the transportation fund under Democratic Gov. Phil Bredesen. His budget calls for $130 million in one-time money to go into the fund.

The governor's budget also provides:

* $60 million salary increases for state workers. That includes additional pay boosts for Tennessee prison guards, a number of whom have voted with their feet and left state employ because of low pay, a new work schedule and a change in classifications of assaults in prisons. After denying problems, the administration later began addressing the concerns;

* $82.5 million in recurring funds for higher education and another $49.6 million in one-time funds. The higher education formula units, for example, get an additional $50 million;

* $171 million for TennCare;

* $581.58 million in capital budget spending, with $456.61 million of that coming from the state.

Contact staff writer Andy Sher at asher@timesfreepress.com, 615-255-0550 or follow via Twitter at AndySher1.