Sensible spending plan keeps state moving in right direction

KNOXVILLE NEWS SENTINEL
Tennessee Gov. Bill Haslam presented a promising, pragmatic budget during his State of the State speech at a joint session of the Legislature.
The $32.7 billion spending plan is a prudent approach amid a resurgent though fragile economy.
Spending increases in Haslam’s proposed budget focus on education and TennCare, while two tax cuts should lighten grocery bills and help seniors.
While outlining his proposal for the News Sentinel Editorial Board on Jan. 31, Haslam employed a favorite phrase of his: “Budget drives policy.”
If that’s the case, it is obvious that education — both K-12 and post-secondary — is Haslam’s primary policy initiative in his third year in office.
The budget contains $307.3 million for higher education capital projects, $51 million for K-12 technology needs and $43.2 million in addition funds for the Basic Education Program.
Tennessee traditionally has wallowed near the bottom in K-12 education spending, but in fiscal year 2012 the 12 percent increase in funding was the second-largest increase among all 50 states.
The governor wants to devote $76.5 million for a 1.5 percent pay increase for state employees, teachers and higher education employees. Another $27.9 million would go toward bringing the salaries of selected positions in line with the findings of a salary study. ...
Unemployment in Tennessee is at a four-year low, and Haslam noted that Tennessee led the Southeast in manufacturing job growth. To continue the momentum, Haslam wants to spend $30 million for his Jobs4TN program.
TennCare will receive about $350 million in new spending. The beleaguered Department of Children’s Services will get an extra $6.7 million to address the agency’s problems.
The budget proposal also would replenish the state’s recession-depleted cash reserves by $100 million.
On the revenue side of the ledger, Haslam is continuing to lower the state sales tax on groceries. The rate would drop from 5.25 percent to 5 percent, leaving $21.2 million in the pockets of Tennesseans. The spending plan would raise the exemptions from the Hall tax on stock and bond income for people older than age 65. And the inheritance tax exemption would increase to $2 million.
Haslam’s proposal should please the Republican supermajority in the Legislature. With the increases in education funding and trimming of taxes, there should be little for legislators to complain about.
Haslam has produced a sensible spending plan that promises to keep the state moving in the right direction. Published in The WCP 2.12.13

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