Fights deepen over state spending

NASHVILLE -- Legislative leaders' major differences over the state's budget have dwindled to a handful of items that in a $28 billion spending plan don't seem all that large dollarwise but nonetheless are taking on big importance as symbols.

It proved enough last week to lead to a breakdown in House and Senate negotiations in how to complete a budget while avoiding Gov. Phil Bredesen's call for $140 million in increased taxes and fees.

It remains unclear whether lawmakers will put the budget back on track this week or the following week. Already, they are weeks behind their original adjournment plans.

Last week, led by Lt. Gov. Ron Ramsey, who is running for governor, Republicans hammered away at a House proposal that provides $16.1 million out of $341 million in enhanced federal Medicaid matching funds, if the money materializes, for a fish hatchery in House Speaker Kent Williams' district.

PDF: House Alternative

"We really are now down to quibbling over a fish hatchery," Lt. Gov. Ramsey, the Senate speaker from Blountville, told reporters last week as Senate Republicans abruptly broke off budget negotiations. "It's more than just a fish hatchery. I do believe it is. It's a symbol of just out-of-control spending. It has nothing to do with whose district it's in."

Rep. Williams is the Elizabethton Republican who last year joined with Democrats to elect himself speaker over Ramsey ally, House Majority Leader Jason Mumpower, R-Bristol.

But the House speaker, now an independent, said in an interview Saturday that Lt. Gov. Ramsey obviously is using the hatchery to hurt him while also trying to advance his own campaign for governor.

"You know they want to beat me here again, and they want to make it look like I can't do anything for East Tennessee, which we've already accomplished a lot for in four years," Rep. Williams said, noting planning for the hatchery began long before he was elected.

He said the hatchery "is probably one of the most major things that could happen for Carter County and Upper East Tennessee in a long time, for a lot of years."

Rep. Williams also said of Lt. Gov. Ramsey, "I can hear him right now. 'We gave pork barrel the boot.' Once he wakes up, if he ever does, and realizes he'll never be the governor of the state of Tennessee, maybe he'll concentrate on governing rather than on campaigning."

In his gubernatorial campaign, Lt. Gov. Ramsey has run television ads promising to give Washington "the boot."

Speaking to reporters last week, the lieutenant governor said "absolutely, positively, unequivocally not" when asked if his opposition to the fish hatchery was related to his House counterpart.

Lt. Gov. Ramsey said his insistence the hatchery be eliminated is a "symbol of running things the Tennessee way and not the Washington way."

He acknowledged his budget stances "could affect my gubernatorial race in some ways, I suppose, but I want to do the job I've hired on to do."

Lt. Gov. Ramsey then fired off a shot at GOP rivals, U.S. Rep. Zach Wamp and Knoxville Mayor Bill Haslam, both of whom have spoken favorably in the past about Rep. Williams, as to whether they would "be going along with the House in building a fish hatchery."

Children's health

Rep. Williams said he will continue to fight for the hatchery, which the speaker says would create 22 jobs and generate more economic activity through tourism and sport fishing.

"But what disturbs me even more is shutting down our (agency) for our children's coordinated health (program)," he said.

Senate Republicans in their plan have proposed eliminating $4.5 million in recurring state funds for the governor's Office of Children's Care Coordination, which provides grants to local groups combating the state's high levels of infant mortality.

The GOP plan shifts the funding to a one-time appropriation of $2.27 million with the program ending Jan. 1.

During a Senate Finance Committee meeting Thursday night, Bob Duncan, who is director of the office as well as CoverKids, was asked what impact the cuts would have.

"Sir, if we have a 50 percent reduction in those programs, the biggest stat we're going to have is in the increase in babies dying," Mr. Duncan warned.

After hearing testimony from Mr. Duncan and two state child advocates who backed his assertions, Sen. Bo Watson, R-Hixson, asked GOP colleagues if they could not find additional funds to save the program. They said they could not.

Efforts by Senate Minority Leader Jim Kyle, D-Memphis, to restore the funds failed on a 7-4 party line vote with Republicans, including Sen. Watson, voting no.

Rep. Williams called it "hypocritical of the Senate to say they are right to life" while trying to end the program.

"I guess they really don't care whether a baby's healthy or not, just so we get them born," he said.

Senate Republicans hope to have their plan on the Senate floor on Wednesday.

Meanwhile, the GOP appears to have given in partially to demands by Democrats, Rep. Williams and several House Republicans that lawmakers provide state employees some sort of compensation in a time of dire economic times, employee layoffs and increased workloads.

Rejecting Democratic Gov. Bredesen's proposal to provide a 3 percent "bonus," Republicans for weeks have resisted providing them anything. Legislative Democrats countered with a $72 million plan that would give employees, teachers and higher education workers a $500 "recession stipend."

The plan approved by Senate Republicans on Thursday night would provide additional longevity pay to employees if revenues come in $50 million above recent projections.

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