|
Rep. Jim Hackworth - House District 33
IMMEDIATE RELEASE May
27, 2006
House
Members Approve State Budget Plan;
Education, Tax Relief, Health Care Top Priorities
Session’s Final Days See State-Shared Taxes Returned to
Localities
NASHVILLE (May 27) – With
adjournment looming, legislators asserted their control over the
government’s purse strings by approving a balanced state budget with no
new taxes. The House of Representatives approved the $26.1 billion
appropriations bill for 2006-2007 by a 95-2 vote. The Senate also
approved the budget measure.
The bill featured
larger-than-expected appropriations for education and health care.
Senior citizens and disabled military veterans will also find relief
from escalating property taxes, thanks to $7.7 million contained in a
companion budget bill.
“This budget shows the
strength of Tennessee’s current economy. It is a balanced budget
with recurring and non-recurring funding balanced appropriately.
Just a few years ago, our state was in financial trouble. Now we can
make substantial investments in the future of the Volunteer State,” said
Jim Hackworth D-Anderson County.”
Appropriations for the
Rainy Day Fund stand at $172.2 million. This is more than ever before,
and increases the total of the Rainy Day Fund to $496.9 million by June
2007. As a result, state government will meet its five percent
requirement for savings, continued Hackworth.
Education
Education, with more than $232.8 million appropriated, represents
one-third of the state budget. Among the education provisions is full
funding for the Basic Education Program at $95.2 million. Another
provision transfers unused state lottery scholarship money to
after-school programs.
The bill adds $45 million
of new funding to the Pre-K program, which is earmarked for 250 new
classrooms. At-Risk children’s programs were allocated $35 million in
new money. This is equivalent to an 8 percent increase in funds
for such programs. For fiscal year 2006-2007, Anderson County is
expected to receive an estimated $95,000, Oak Ridge an estimated
$37,000 and Clinton City an estimated $12,000 in additional funding.
In addition, $39 million
restored to higher education translates into limited tuition increases
for students and their families, from about 8 percent to 4 percent.
Thirteen capital projects for state colleges and universities are funded
at $146.1 million including a new University of Memphis law school.
A new Math and Science High School in Middle Tennessee has been
allocated $1 million in start-up costs.
Tax Relief
The approved budget bill returns some money to the state’s taxpayers.
Residents will benefit from a second sales tax holiday in April 2007 for
school supplies, personal computers and clothing items for students and
some skilled workers. The first sales tax holiday is set for
Friday, Aug. 4, until Sunday, Aug. 6, for a full 72-hour period.
Low-income elderly
homeowners and disabled veterans will see property tax relief because of
a measure that raises the eligibility ceiling for household income to
$20,000 a year. Plus, the first $25,000 in assessed home value
will be exempt from taxation, according to Hackworth.
Most important, about $24
million was restored to local governments in shared taxes. These
are used to supplement a local government’s income, which is mostly
raised from property taxes, fees, and fines. Since 2003, the state
government withheld about $100 million in shared-tax revenue from the
counties and cities because of financial exigencies. Anderson
County is slated to receive approximately $218,400 said
Hackworth.
“A few years ago, cities
and counties shared the burden of spending cuts along with state
programs. Now that our financial house is back in order, I am
proud that we have restored the final portion of state shared taxes to
local governments,” said Hackworth.
Health Care
The budget bill’s health care provisions include the new Cover Tennessee
program at $64.9 million, funded totally by recurring state revenues.
This initiative is designed to provide affordable and portable medical
insurance to uninsured adults and children.
At least $5 million will be
directed to premium assistance for uninsured low-income residents
previously deemed uninsurable by insurance companies, said Hackworth.
Other budget highlights
include:
• $32.8 million to
restore the highway fund;
• $26.8 million for a jobs package;
• $4 million to implement a statewide emergency preparedness system;
• $3.5 million to fund existing and new drug courts for non-violent
offenders;
• $1.7 million for child advocacy centers.
CONTACT: Kenneth
Townsend, Press Secretary, House Democratic Caucus,
at 615-741-6620 or email
kenneth.townsend@legislature.state.tn.us
Back to Top
Back to Weekly Reports |
