Tag Archives: Tax cuts

Analysis: TN State of the State #TNSOTS2014

Unicorns and daisies in stunning monochrome

Unicorns and daisies in stunning monochrome®

So last night Gov. Bill Haslam delivered his 4th State of the State address of his term.

It was the same kind of “long on promises and short on details” self-congratulatory affair that we’ve come to expect from the Governor, complete with that good ole fiscal conservatism that says tax cuts for people who don’t miss the money are better than services for people who need them.

It was only imaginative in the way it manipulated or simply omitted facts to further a narrative of success that most people haven’t felt yet.

The Governor talked a lot about education. Nearly half of the speech was about it in some way or another. But to start, we should probably cover some of the other topics, so they don’t get lost in the mix.

Long List of “Accomplishments”

The Governor started off with a long list of “accomplishments”. Real long. Like almost two pages of them.

Lots of accolades from being named 3rd best managed state in the nation (I couldn’t find that, but I did find us at 16th last year which is better than most, that one needs a citation.

He also noted our award for state of the year from Business Facilities Magazine. The magazine notes the state brought in 6900 new jobs, but that’s less than 3% of the 237,700 people who were looking for work in December. Hardly a stellar performance for the people actually looking for jobs.

Haslam also hailed the drop in space state offices occupy. He says this will save the state money. Unfortunately, even his own numbers, as reported by NC5 in Nashville, tell a very different story. NC5 could only find about $450,000/year of savings, and further found the math the Governor has used is more than a little fuzzy. Good to know as we head into the budget section of the presentation.

$260m + -$340m = cut taxes

Haslam laid out new revenues for the upcoming year of $260m. Of course, his projections for this year are already $171m off the mark, so who knows if this is real or more fuzzy math from the Governor.

He also laid out $340m in new spending ($180m in Tenncare, $40m in employee health insurance, and $120m for education). That leaves an $80m hole in the budget.

The Governor defended tax cuts for estate taxes and the Hall income tax as “revenue growth” policies. This is a common GOP refrain, that makes no sense and that has been proven wrong over and over again.

Gov. Haslam offered no proposal that would cover the $80m dollar shortfall, so there’s that.

Education policy du jour

Of course, education was a huge part of the speech, since that’s the one thing just about everyone agrees the state should pay for (within limits). The Governor hailed the gains in the state’s overall TCAP scores for 2013. There’s no question that seeing scores go up is a positive, but a seven point jump in two years when the national average is only one point, should be a cause for skepticism. Further, going back to 2003, the states scores have increased by 12 points (seven of those between 2011 and 2013).

Had the gains been a gradual upswing (they weren’t) they would seem to be the result of a policy decision. But a seven point swing in two years looks more like an outlier than a trend. This is something we’ll have to watch more in the coming years to see if a trend is actually established. My gut tells me no. The state scores have hovered in the same 3 point swing zone since 2005.

He also hit on all the “blame the teachers” policies his administration has been pushing since 2011, and vouchers…something drains resources from already under-resourced public schools.

Tennessee Promises, Promises

The biggest attention grabber was the “Tennessee Promise” program. Under this plan, high school students would be given two years of free tuition at a two-year school to get an associates degree. If they chose to move on to a four-year institution, they could begin as a junior.

On the face of it, this seems like a good and progressive idea. Get kids who might not have the resources or the grades to make it in a four-year school to get their feet wet in a two-year school, and parlay that success into higher educational attainment overall.

But he devil is in the details, and the plan to use money from the Tennessee Lottery Scholarship fund raised the ire of the panned the funding idea because it would drain the fund, and possibly hurt four-year institutions in the state, by draining away college Freshmen and Sophomores.

I’m also skeptical about the “endowment fund” that would pay for this program. How will the endowment be administered? Will it have a board packed with cronies like just about every other government institution in the state? What happens if it runs out of money?

Seems to me, the money would be better spent as intended…to fully fund college, and that more money should be allocated to higher education to bring tuition costs down, and maybe even attract out of state students that pay way more than in-state students do.

As for the Community Colleges, they’re critically important, no doubt. But shouldn’t they be focused on the things they’re already successful at…providing access to some General Ed. courses for students and graduating students who aren’t on a four-year track.

On a political note, the idea that this General Assembly would pass a bill that amounts to a new entitlement is cute. I don’t see it happening.

So there it is. The state of the state. The response from the House Democratic Caucus can be found here.

Morning Coffee – Presenting Your New Republican Overlords – Pre-Legislative Session Edition

The future of the state lies in these thumbs <shiver>
Image Credit: Squalto-rant

The upcoming session of the Tennessee General Assembly begins in just 15 days. Between now and then there will likely be a whole bunch of nothing news wise, except for the TNDP Chair election which is about as exciting as watching socks dry in the rain (no offense guys, but seriously).

Considering the huge shift from a nearly 50-50 split house to the 64-34-1 Republican super-majority, there’s gonna be a lot of changes coming our way. As Jeff Woods reports in the Nashville City paper, they may not be exactly what voters expected.

From the article:

On the to-do list:

• Changing state law to restrict eligibility for unemployment benefits and make it less difficult and time-consuming for businesses to deny payments to workers.

• Enacting caps on damages awarded in lawsuits against businesses, including product liability and medical malpractice cases.

• Streamlining or even eliminating some business regulations, particularly regarding environmental protection.

Good times. 10% unemployment means gut the little bit of help that is keeping these unfortunate folks barely treading water.

Tort reform means that if someone sells you something that hurts you, you’ll only get a percentage of what you might have before regardless of how negligent the business was.

As for the third item, I hope you like Selenium in your water.

Woods also draws quotes from Knoxville stuntbaby and newly elected State Senator Stacey Campfield who is continuing to push his extreme socially conservative bills, saying social and fiscal conservatism shouldn’t be mutually exclusive.

Joy.

Oh, but this is only the beginning. Still caught in an economic downturn that has seen the return of huge bonuses for banks execs that were previously mere seconds away from failure while regular folks still struggle to survive, the newly elected Republican majority in the US House wants to make sure things get so bad down at the state level that they can effectively force bankruptcy on states by cutting the availability of low interest bonds and in the process, drive a stake in the hearts of those dastardly unions, that have been seeking to ensure people have a living wage for generations. Welcome to the new era of the Pinkertons.

Here’s Sam Seder, subbing in for Keith Olberman on Countdown last night:

Visit msnbc.com for breaking news, world news, and news about the economy

Looks like the next two years are going to be a barrel of laughs.

We’ll be keeping an eye out once the legislature gets back in session. A quick glance at bills already filed may be an early indication, including this retaliation bill against the Memphis City Schools filed by Senator Brian Kelsey.

I’m sure these developments will keep keyboards a clicking over the next six months.

Ok, on to the coffee!

Extending the Bush Tax Cuts did more for businesses than anyone else. If you don’t itemize your taxes and you’re a homeowner, you may see an increase.

The economy in Memphis is stagnant, or so says a report by the Federal Reserve.

Mississippi is going to teach Civil Rights in all grades. Suggestion, start with your Governor.

Shelby County Commissioner Terry Roland is making shit up again.

Shelby County School Board President David Pickler is promising answers about MCS charter surrender. Of course, he’s perplexed by the whole development, even though a report that his body commissioned with the Memphis City Schools tells the inconvenient truth that he summarily rejects. You can have your own opinion Mr. Pickler, but you can’t have your own facts.

Ok, have a good day out there. Chances are we’ll be out of pocket until after the New Year.