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Rep. Jim Hackworth - House District 33
IMMEDIATE RELEASE February
22, 2007
Lawmakers Set Hearings on
Governor’s Proposed $27.5 Billion Budget for Fiscal Year 2007-2008
Education Top Priority of
Fiscally Conservative Appropriations Bill
NASHVILLE (Feb. 22) –
The House Finance, Ways and Means Committee began an eight-week series
of budget hearings on Feb. 20 with an overview by Finance and
Administration Commissioner David Goetz of the governor’s proposed $27.5
billion appropriations package. Education tops the state’s top
spending priorities, followed by conservation, health care, economic
development and an alternative fuels initiative.
“Gov. Phil Bredesen
submitted a balanced, fiscally conservative budget to the legislature.
The House of Representatives now must work together in a bipartisan
spirit that puts the needs of our citizens first as members begin
crunching the numbers,” said Rep.
Jim Hackworth, D
Anderson County.
Both federal and state
dollars are used for funding Tennessee’s budget. Federal revenue stands
at $9.5 million, or an increase of one percent over fiscal year
2006-2007.
State taxpayers
contribute $13.3 billion of revenue in the governor’s budget, up four
percent over the current fiscal year. For each state tax dollar
paid by Tennesseans:
- 42 cents is allocated to
education;
- 30 cents is targeted for
health and social services;
- nine cents goes to law,
safety and correction;
- seven cents is claimed by
transportation;
- six cents is returned to
cities and counties;
- three cents goes to
resources and regulation;
- two cents is set aside for
general government expenses; and,
- one cent is dedicated to
business and economic development.
Sixty cents of every
taxpayer dollar is raised through the sales tax. Property taxes
and business taxes net 13 cents per dollar, and gasoline taxes
contribute seven cents to the revenue stream.
“The governor notes that
our state is already one of the very lowest taxed in the nation.
Tennessee ranks at number 48 out of 50 in combined state and local
taxes. He strongly believes that his budget holds the key to
greater prosperity and opportunities for all citizens. That’s more
important to him than trying to become number 49 in lowest taxed
states,” said Hackworth.
Overall, the budget
proposal shows an estimated $1 billion increase in spending compared to
the current budget of $26.5 billion. About $220 million in new
money is raised by increasing the cigarette tax from 20 cents to 60
cents, with 90 percent of these revenues targeted for education funding.
A breakdown of the
$548.4 million education plan proposes $351.4 million in new money for
pre-kindergarten through 12th grade. Spending for
pre-kindergarten through 12th grade initiatives totals 17
percent of the total budget.
In addition, $97 million
in new money is earmarked for operating funds for higher education.
Spending for public colleges and universities represents 12 percent of
the state budget if the governor’s proposals stand.
“The bottom line is that
university students and their families would see very modest tuition and
fee increases of five or six percent for the coming academic year,”
added Hackworth.
The submitted education
budget also proposes:
- fully funding the Basic
Education Plan (BEP);
- adding more BEP enrollment
growth funding for local schools;
- increasing teacher salaries
across the board;
- expanding the number of
Pre-K classrooms;
- fully funding programs for
at-risk children;
- awarding free community
college tuition to many students; and,
- raising HOPE scholarships
to $4,000 annually for qualified students.
In addition to more
education spending, Bredesen has requested such major improvement
initiatives as $92 million for conservation; $72.6 million for a
comprehensive alternative fuels strategy; and, $45.1 million for
business and infrastructure development.
TennCare remains the
largest part of the state budget at 28 percent of total spending,
although these costs are now controlled by recent reforms. A
number of related bills submitted by Bredesen in his companion
legislative package address TennCare fraud and prescription drug abuse,
which further helps stabilize the program’s expenses.
“Legislators are looking
hard at bills that criminalize ‘doctor shopping’ for medications.
We may extend current laws that penalize physicians who write
prescriptions for pain medicine to TennCare recipients without first
giving medical examinations. Other measures call for easier access
by health care providers and Tennessee Bureau of Investigation agents to
the state’s controlled substances database,” said
Hackworth.
The governor’s
appropriations bill also sets transportation spending at $1.82 billion,
or seven percent of the state budget. Miscellaneous expenses
totaling $10.2 billion comprise the remaining 36 percent of the
appropriations bill.
“We have passed five
consecutive common sense balanced budgets since Gov. Bredesen took
office. Plus, Tennessee has record savings in the Rainy Day Fund, with
$533.5 million projected by fiscal year 2008. Our bond ratings are
improved to AA+, which gives state government greater financial
leverage. This proposed budget offers a brighter future for all
Tennesseans, especially our children and grandchildren,” concluded
Hackworth.
CONTACT:
Kenneth Townsend, Press Secretary, House Democratic Caucus,
at 615-741-6620 or email
kenneth.townsend@legislature.state.tn.us.
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