The contrast between Tennessee’s and Washington’s handling of the economic crisis could not be any clearer.
Faced with high unemployment and a $14.7 trillion federal debt, the president and many in Congress think the solution is to borrow more money, raise taxes and try to spend and “stimulate” our way to job creation. The failure of the last stimulus to boost employment does not deter them in the least.
But in Tennessee, Gov. Bill Haslam is taking a different approach. He recognizes that Washington is not a limitless source of money, and he realizes that federal funds which are given can be taken away.
So he ordered state agencies to take a hard look at their budgets and prepare for the possibility that federal funds coming to Tennessee may be cut by as much as 30 percent in coming months and years.
Unlike the president and Democrats in Congress, Haslam is not looking to have state lawmakers impose huge tax increases. Also unlike the federal government, Tennessee is bound by its constitution to balance its budget. So our state will not be piling up deficits year after year the way Washington has.