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Political |
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The
voters of Tennessee, like many in the United States, do not want
additional taxes. In the last gubernatorial election, both candidates
for Governor promised to balance the state budget without new taxes.
Governor Phil Bredesen, who won the election, is steadfastly standing by
his promise. He is formulating a state budget without asking for
additional tax revenues. Governor Bredesen is telling the people he is
going to do as he promised-put together a new state budget without new
revenues. To accomplish this goal, the Governor must cut the budget 9%
across the board. The
budget cuts promise to be painful. One of area of growing concern is
whether the Governor can cut the budget without cutting the 148 million
the state shares with local governments. Governor Bredesen faces a
$470 million shortfall this fiscal year. The $470 million shortfall is
expected to grow to $780 million for the next fiscal year. In order to
fairly consider cuts, Governor Bredesen must look at the state shared
revenues. The Governor must face up to the facts—the people voted to
“hold the line” on new revenues to fund government, and the Governor
must present a balanced budget without new revenue sources. Like it
or not, the voters must also face up to the facts. Despite the largest
sales tax increase in state's history, this state is facing severe
budget shortages. The people must, therefore, accept that cutting the
budget is going to mean less, and less may be painful for all of
us—requiring us to pay more local taxes for the cuts being made on the
state level. If the
Governor looks to state shared revenues, Chattanooga and Hamilton County
could lose 4.5 million and 1.5 million respectively. Other smaller
municipalities will have bigger hit in their budgets. If the State must
cut, our local leaders must share in the responsibility of either
cutting or increasing taxes to make up the difference. If the
local governments do initiate tax increases, all of us can expect to pay
more on the local level—reinvesting the Bush tax cut into the
increased local tax burden. Any tax cut on the federal level may,
therefore, go in one hand and out the other—paying the increased tax
burden on the local level. Despite
the “grim” news, Governor Bredesen is facing the budget crisis head
on—it is time for our local leaders, and the voters, to do the same Stuart F. James
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