Tennessee budget crisis spawns school, park closings

TennesseeAnytime is about to become TennesseeSometimes again.

The Volunteer State's new marketing tag – designed to convince tourists that Tennessee is a state for all seasons – is imperiled by the foundering state budget steamrolling once again toward disaster. State parks and recreation officials, as well as local education agencies, are scrambling to salvage enough funds to stay open until the crisis is resolved.

Meanwhile, despite two years of near-constant protest, legislators are still debating a state income tax to resolve the debacle.

Tennessee is currently one of only nine states that do not have a personal income tax.

On Thursday, House Speaker Jimmy Naifeh announced his support for a 4.5 percent flat-rate income tax. Naifeh's proposal would void Tennessee's longstanding "Hall Income Tax" on interest and dividend income, and also would scrap state and local sales taxes on food, clothing and non-prescription drugs.

Although Naifeh's support for an income tax isn't particularly new, his proposal is finding some support among the Democratic leadership.

House Democratic Caucus Chair Randy Rinks told WND he favors the speaker's plan with some modifications

"I will vote for an income tax, however I would rather see a lower rate and maybe have a clothes holiday or lower the sales tax rate overall. We cannot continue to rely on the sales tax in Tennessee," Rinks said.

Pat Nolan, senior vice-president with Dye, Van Mol and Lawrence, Tennessee's largest public relations agency and one of the state's most respected political analysts, played down the chances for Naifeh's proposal.

"This is the same House leadership that has several times in the past claimed it had the votes for an income tax if only the Senate would pass it first. Likely that wasn't true then and isn't true now," Nolan said in a recent commentary on WTVF-TV in Nashville.

One immediate result of the state's mounting deficit is a $15 million cut for education. While the governor and legislature trade barbs over the budget crisis, county school systems across the state are attempting to figure out ways to operate summer school programs in the face of these massive cuts. Some school administrators say that non-tenured teachers will lose their jobs, as in Putnam County where 100 teachers have been put on notice.

Also, with some selected park closures already, state park officials across Tennessee are said to be readying for indefinite closures.

Many anti-tax leaders have pointed to the mismanaged TennCare system as a place to recoup the extra revenue, but legislative leaders have avoided tackling that problem, insisting that tax revenue is the only course.

"I think we need a long-term solution," Rinks told WND, "and that means either an income tax or statewide property tax." Republican Gov. Don Sundquist, a longtime proponent of an income tax, has begun taking steps to revamp the TennCare system, but those changes will not provide relief for the present budget year.

Anti-tax protesters have already staged one rally at the state capitol, on April 15 – a modestly attended affair designed to let legislators know that their actions will be watched. And the audience will grow larger this year as the state heads into a long and frustrating budget battle. Local anti-tax activist and radio talk-show host Steve Gill will be taking his show to cable, appearing on WTVF's Newschannel 5+ (cable channel 50), broadcast to much of middle Tennessee.

Previous stories:

Tax issue heats up again in Tennessee

Press gagged at Tennessee budget meeting

Tennessee governor to twist arms on taxes?

Next round in Tennessee tax debate

Tax protesters meet pavement crews

Anti-tax Tennesseans prevail

Contempt of congress

Tennessee tax attack

Tennessee v. talk radio

Tennesseans stage tax revolt