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TENNESSEE GENERAL ASSEMBLY
HOUSE DEMOCRATIC CAUCUS

Contact: Marianne Purcell, Legislative Assistant
615.741.4400 - 615.741.4322 fax
Marianne.Purcell@legislature.state.tn.us

Rep. Jim Hackworth - House District 33


 IMMEDIATE RELEASE                                                                                 May 3, 2007

Governor Calls for School Funding Changes;
Minimum Wage Bill Passes in Final Action
House Replaces Certificates of Driving with Temporary Driver Licenses


NASHVILLE (May 3) – Gov. Phil Bredesen announced major changes to the Basic Education Program (BEP) today in a joint session of the General Assembly.  The BEP is a complex mathematical formula used to allocate state money to local school systems.  The proposed adjustments are estimated to cost $475 million and will be phased in over several years, according to Rep. Jim Hackworth, D-Anderson County.

“The governor and legislators have a once-in-a-lifetime opportunity to make needed changes in our state’s education system.  The current BEP is flawed and there’s no reason to put more money into a deficient plan. We must address the funding and fairness shortfalls and demand accountability from our schools,” said Hackworth.

After the State Funding Board releases its projections for recurring and nonrecurring revenues next week, legislators will decide how much taxpayer money is appropriated for the new BEP formula.  The plan’s success also depends on the 40-cent cigarette tax hike proposed by the governor earlier this year.

An estimated $140 million generated from the proposed cigarette tax increase is targeted to fulfill the state’s share of funding to school systems with high student growth and large populations of “at-risk” students.  English language learners may also benefit from smaller student-to-teacher ratios under the new plan.

School funding is presently based on a cost-differential factor that totaled up each local school system’s expected financial contribution.  The revised BEP instead uses calculations of total assessed property and total local option sales tax collections from each of the state’s 95 counties.  As a result, local governments can easily determine their fair share of funding.

“We can set a framework in place and create a long term funding mechanism that is transparent and realistically determine how much state money each district requires.  But schools must meet high performance standards in return.  Funding is not the only issue we’re addressing.  The state must aggressively intervene with failing schools and fix their problems.  We have laws already in place that allow this,” said Hackworth.

The state also plans to increase its funding of teacher salaries from 65 percent to 75 percent under the revised BEP.  Plus, teacher starting salaries may be raised incrementally from $36,700 to $40,000 annually.

“Teachers will also be held accountable for their performance.  They must have hard content knowledge of their academic subjects, and be able to pass standardized tests in their fields.  The schools of education in our state universities must emphasize professional training more than academic theory,” said Hackworth.

The new BEP is flexible and appropriations can be adjusted to accommodate differences in state revenue collections from year-to-year.  The broad structural changes in school funding and equitable teacher pay are shared by all the counties and those with more capacity are expected to transfer state dollars to less affluent counties.

If approved by legislators, at least half of the $475 million plan would receive funding this year.

“Only 27 percent of our students are scored on national performance examinations as proficient in their subjects.  Our state is transforming from manufacturing and farming to a service-based economy.  We are competing with other states and nations for good-paying jobs.  We must seize the moment so our children can successfully enter the mainstream,” said Hackworth.

In other action, the House passed the state’s first state minimum wage in a majority vote on the floor.  This historic bill adopts the federal hourly wage as the hourly wage in Tennessee.  The measure automatically increases the state wage if the federal minimum wage isn’t raised for calendar five years. The present federal hourly wage is $5.15.

“This bill is for working people with families who are trying to pay their bills and put food on the table. They do the best they can, but many good-paying jobs are now outsourced overseas.  Public policy is based on public input, and our constituents have demanded that we act.  The cost of living continuously increases, but real wages are the lowest in more than 50 years,” said Hackworth.

If the bill is enacted into law, all employers subject to the federal Fair Labor Standards Act must comply starting July 1.  Should the US Congress hike the federal minimum wage within five years, the state minimum wage also goes up.

But if the federal rate is static, the state minimum wage automatically adjusts to reflect increases in the federal consumer price index over the five year period.

The state Department of Labor and Workforce Development, which oversees compliance, continues setting Tennessee’s hourly wage annually until the federal government raises its minimum wage.  The clock stops for another five years if the new federal rate equals or exceeds the state rate.

Also under the bill’s provisions, workers can sue employers who violate the law.  Employers must pay all lost wages, attorney fees and court costs if the court rules for the plaintiff.

“More than 20 states have enacted a minimum wage.  The employment rate in these states has gone up, and they also have the greatest economic growth.  Passing this bill is a moral issue and popular among the majority of Tennesseans regardless of their political convictions,” said Hackworth.

Also in final action, lawmakers passed a bill that abolishes the controversial certificate of driving (CFD) linked by police to criminal rings that produced forged documents for illegal immigrants.  Created in 2004, the CFD was seen as public safety issue as legislators were concerned that foreign residents were driving untested and uninsured.

CFD applicants weren’t required to furnish social security numbers to the Department of Safety, unlike permanent residents.  The document was invalid for identification purposes and only allowed the holder to drive in Tennessee.

Illegal immigrants from neighboring states, however, purchased forged documents to prove legal residency.  Some state employees were also accused of accepting bribes in return for the CFD.

“This bill eliminates fraud by requiring applicants to present official proof to the Department of Safety of their legal identity and authorized period of Tennessee residency.  Foreign nationals who are legitimate students, business executives or government officials may apply for valid temporary licenses.  These temporary driver licenses expire between one to five years,” 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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