Tennessee House sends budget to governor

NASHVILLE - With little discussion, House members voted 94-0 today to send the state's 2010-11 budget to Gov. Phil Bredesen, ending weeks of bickering.

"It is a budget that takes us through some of our most challenging times and it was crafted in a difficult time for difficult times," said House Finance Committee Chairman Craig Fitzhugh, D-Ripley. "But it is also a budget that provides a firm, fair and substantial fiscal plan in our state."

He said "there are no new general taxes in this budget."

It does, however, rely on a 3.25 percent tax or fee on most hospitals that will raise $310 million. The money will be used to offset proposed TennCare cuts and attract hundreds of millions of dollars in federal matching funds for TennCare. Hospitals sought the fee, which they and lawmakers contend is not a tax.

On Thursday, state budget director Bill Bradley estimated the budget at about $29.9 billion in state and federal funds.

In response to questions, Rep. Fitzhugh said the state has cut $1.1 billion in spending over the current budget and the one they passed today. That comes to about a 12 percent reduction in state government, he said, and a reduction of some 3,500 in the state workforce.

Many of those have come from eliminating positions held vacant due to recession-battered state revenues. But the state has already sent out layoff notices to 853 state worker as part of the spending plan approved today.

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