The Tennessee General Assembly

House of Representatives

CAPITOL HILL REVIEW

A ee!ly rap"up of le#islative ne s
Contact: Cade Cothren, (615) 741-5185 cade.cothren@capitol.tn.gov

Tennessee Poise$ to %aintain &tron# 'on$ Ratin#s

The federal govern ent!" "erio#" financial challenge" haven!t p#t a da per on Tenne""ee!" econo ic "#cce"" over the la"t "everal $ear", a fact that %a" "ho%ca"ed d#ring official eeting" %ith the nation!" three a&or 'ond rating agencie" thi" onth. The eeting", %hich too( place in )e% *or( in id-+cto'er, %ere led '$ ,ep#'lican -overnor .ill /a"la , "tate Con"tit#tional +fficer" 0#"tin 1. 2il"on, Tre /argett, and 3avid /. 4illard, 0r., along %ith House &pea!er 'eth Har ell (R)*ashville+ and House %a,ority Lea$er Geral$ %-Cormi-! (R)Chattanoo#a+. 4a"t $ear, Tenne""ee %a" rated 555 '$ 6itch ,ating" and 5aa '$ 7ood$!" 8nve"tor 9ervice" : the highe"t ran(ing" given. 8n addition, the "tate %a" rated 55; '$ 9tandard and 1oor!", %hich i" the "econd highe"t rating availa'le. <2e have the lo%e"t de't ratio of an$ "tate, %hich i" one a&or indicator of o#r financial health,= Co ptroller 2il"on "aid. <2e have a hi"tor$ in Tenne""ee of 'orro%ing co parativel$ little one$ and repa$ing it >#ic(l$. That (ind of financial di"cipline i" one of the hall ar(" of o#r "tate.= Tenne""ee!" credit rating help" deter ine ho% #ch intere"t "tate and local govern ent" %hen the$ 'orro% one$ to f#nd pro&ect" "#ch a" ne% "chool" and road". #"t pa$

<Tenne""ean" can ta(e great pride in ho% o#r real gro"" do e"tic prod#ct (-31) ha" gro%n at a fa"ter rate than the ?nited 9tate"! -31 for three con"ec#tive $ear",= 9ecretar$ /argett "aid. <Thi" can 'e attri'#ted to the prod#ctivit$ of o#r hard-%or(ing citi@en" and the inve"t ent" %e contin#e to a(e in ed#cation, odern technolog$ and infra"tr#ct#re. 8n fact, %hen govern ent i" eAcl#ded, the private "hare of o#r -31 co pare" favora'l$ to other triple 555-rated "tate", de on"trating ho% o#r econo $ i" 'etter e>#ipped to %eather c#t" in govern ent "pending.= <4ong-ter lia'ilitie" "#ch a" pen"ion" and other entitle ent" are a ong the 'igge"t financial challenge" facing govern ent" toda$,= Trea"#rer 4illard "aid. <8n Tenne""ee, %e recentl$ refor ed o#r pen"ion "$"te to red#ce the "tate!" lia'ilit$ over ti e %hile prod#cing a "#fficient and "#"taina'le 'enefit for retiree".= The rating agencie" are eApected to anno#nce Tenne""ee!" #pdated rating" in the neAt "everal %ee(".

Tree li#htin# -eremony ill -ommemorate .The &alvation Army An#el Tree /ay0
Country Artist Jimmy Wayne to perform
,ep#'lican la% a(er" anno#nced thi" %ee( that a )a"hville 3ail$!" %ill 'e "pon"oring a tree lighting cere on$ in 3ece 'er to co e orate the long-"tanding 5ngel Tree progra ad ini"tered '$ the 9alvation 5r $. 5 re"ol#tion pa""ed earlier thi" $ear de"ignated 3ece 'er 1 "t a" <The 9alvation 5r $ 5ngel Tree 3a$= to f#rther rai"e a%arene"" for the 5ngel Tree and the 6orgotten 5ngel" 1rogra ". Co#ntr$ arti"t 0i $ 2a$ne, %ho a" a child 'enefitted fro the 5ngel Tree progra and originall$ pre"ented the idea of 3ece 'er 1"t a" 5ngel Tree 3a$ in Tenne""ee, %ill 'e perfor ing at the event, and &tate Representative %ar! White (R)%emphis+, %ho %a" the pri ar$ /o#"e "pon"or of the legi"lation, %ill pre"ent re"ol#tion" to the progra " fo#nder", 4t. Col. Charle" and 9hirle$ 2hite. The 9alvation 5r $ 5ngel Tree 1rogra , created in 1B7B, give" individ#al" and partnering corporation" an opport#nit$ to adopt le"" fort#nate children and "enior" and provide the %ith per"onali@ed gift" and nece""itie" the$ other%i"e %o#ld not receive d#ring the holida$ "ea"on. <The 9alvation 5r $!" 5ngel Tree 1rogra ha" "#ch a po"itive i pact on children and "enior" in need d#ring the holida$ "ea"on,= "aid ,epre"entative 2hite. <3e"ignating 3ece 'er 1"t in honor of thi" progra %ill rai"e a%arene"" and enco#rage tho"e in the co #nit$ to participate.= The cere on$ %ill 'e held on 3ece 'er 1 "t at 1 p. . C3T at the 2e"t Cnd 3ail$!" location in )a"hville. WHO1 /o#"e and 9enate la% a(er"D co#ntr$ 2hite, fo#nder" of the 5ngel Tree 1rogra . WHAT1 Cere on$ co #"ic arti"t 0i $ 2a$neD 4t. Col. Charle" and 9hirle$

e orating <The 9alvation 5r $ 5ngel Tree 3a$=

WHE*1 3ece 'er 1, EF1G at 1 17 C3T WHERE1 2e"t Cnd 3ail$!", 17FF 2e"t Cnd 5ven#e, )a"hville, T) G7EFG Thi" event i" free and open to the p#'lic. 5ll intere"ted partie" are invited and enco#raged to attend.

&e-on$ Half Of 234th General Assembly &et To Convene In 5anuary

/aving co pleted the fir"t half of the 1F8 th -eneral 5""e 'l$ in late 5pril, /o#"e la% a(er" are no% '#"$ preparing for the "econd half of the legi"lative "e""ion "et to 'egin on T#e"da$, 0an#ar$ 14th, EF14 at high noon. 2hile an$ topic" that %ill 'e de'ated are "till #p in the air, /o#"e ,ep#'lican" hope to '#ild on the "#cce""e" of the EF1G 'alanced '#dget that %a" pa""ed earlier thi" $ear. /ighlight" of thi" $ear!" '#dget incl#de:

Tax Cuts 5 drop in the "tate "ale" taA on grocerie" fro 5.E5H to a flat 5.FFH rate %hich %ill "ave taApa$er" approAi atel$ IE5 illion "tate%ide. Thi" taA red#ction '#ild" on effort" d#ring the EF1E legi"lative "e""ion %hich red#ced the "ale" taA on food fro 5.5H to 5.E5H. 4a% a(er" hope to contin#e thi" trend in $ear" to co eD 8 ple entation of the "econd pha"e to eli inate Tenne""ee!" death taA, %hich i" "et to 'e co pletel$ pha"ed o#t '$ EF16. /o#"e ,ep#'lican" agree the death taA 'rea(" #p fa il$ far " and " all '#"ine""e", forcing fa ilie" to a(e to#gh deci"ion" d#ring %hat i" often the o"t diffic#lt ti e" in their live": the pa""ing of a loved one. 8n an$ ca"e", fa ilie" are faced %ith "elling off part" of far " and land or clo"ing a " all, fa il$-o%ned '#"ine"" in order to pa$ the taA 'ill. The f#ll repeal of the death taA %ill repre"ent a IB4.6 illion taA c#tD 5 c#t in the /all taA for "enior" 65 and older. The /all taA i" i po"ed on inco e derived fro intere"t on 'ond", note", and "toc( dividend". 9ince enact ent of the /all taA in 1BEB, the #"e of inve"t ent "aving" ha" gro%n a" a pri ar$ "o#rce of retire ent inco e. .eca#"e of thi" fact, ,ep#'lican la% a(er" arg#e the /all taA i" act#all$ an inco e taA, e"peciall$ for "enior" living on a fiAed inco e. The /all taA c#t approved in the '#dget rai"e" the inco e eAe ption level fro IE6,EFF to IGG,FFF for "ingle filer" and fro IG7,FFF to I5B,FFF for &oint filer". 4a% a(er" have pro i"ed to '#ild on thi" taA c#t in the f#t#reD 5nd, a contin#ation of propert$ taA relief effort" pa""ed in previo#" $ear" to help veteran", "enior", and the di"a'led pop#lation of Tenne""ee.

Education Improvements The "tate!" .a"ic Cd#cation 1rogra (.C1):the echani" for f#nding p#'lic "chool":i" f#ll$ f#nded in thi" $ear!" '#dget at I4 'illion. 8n addition, the '#dget provide": 8ncrea"ed f#nding for infor ation technolog$ #pgrade" at J K 1E "chool" "tate%ideD 8ncrea"ed f#nding for need-'a"ed financial aidD 6#nding for a ne% '#ilding at the Tenne""ee 9chool for the 3eafD Contin#ed f#nding for the "tate!" 9cience 5lliance 7#"e# ", the -overnor!" 9chool and 6a il$ ,e"o#rce Center", the 5rt" 5cade $, and the Tenne""ee /oloca#"t Co i""ionD 8ncrea"ed f#nding for "tate%ide e>#ip ent #pgrade" at co 5nd over IGFF "tate. illion for capital o#tla$ and #nit$ and technical college"D

aintenance pro&ect" at p#'lic college" acro"" the

Law and Safety Carlier in the $ear, -overnor /a"la anno#nced hi" plan to addre"" violent cri e in Tenne""ee. 5 ong the ea"#re" f#ll$ f#nded in thi" $ear!" '#dget are la%" addre""ing gang violence, pre"cription dr#g a'#"e, repeat do e"tic violence offender", and "$nthetic dr#g". The"e ea"#re" incl#de:

6#nding for increa"ed "entencing for gang-related cri e"D 6#nding for the eApan"ion of the 9o#thea"tern Tenne""ee ,egional Correctional 6acilit$D 6#nding to addre"" an increa"e in the n# 'er of felon" in local &ail"D 5nd an arra$ of ea"#re" de"igned to 'attle the ri"e of h# an traffic(ing acro"" the "tate.

Workforce Development The '#dget pa""ed thi" $ear reflect" a co it ent '$ -+1 la% a(er" to fo"ter an environ ent for &o' gro%th acro"" Tenne""ee. ,ep#'lican legi"lator" #nder"tand that in order for o#r econo $ to contin#e i proving, govern ent #"t "ta$ o#t of the %a$ of &o' creator" and en"#re it i" not placing #nnece""ar$ '#rden" on '#"ine"". The '#dget pa""ed thi" "e""ion incl#de" #ltiple progra " to help '#"ine"" o%ner" gro% and thrive, incl#ding: 5 contin#ation in f#nding of the "tate!" 6a"tTrac( 8nfra"tr#ct#re and 0o' Training progra %hich aid" '#"ine""e" acro"" the "tate in "ec#ring f#nding for eApan"ion pro&ect" and en"#ring e plo$ee" are trained to their f#lle"t potentialD 5n increa"e in f#nding to Tenne""ee!" nine regional develop ent di"trict" to help local govern ent" i ple ent i portant infra"tr#ct#re pro&ect" and recr#it ne% '#"ine""D 5nd contin#ed f#nding to recr#it and develop the "tate!" fil and televi"ion ind#"tr$ %hich ha" "teadil$ gro%n in recent $ear" and helped 'ring in illion" of fil and to#ri" dollar".

9ince 0an#ar$ EF11, nearl$ 8F,FFF ne% &o'" have 'een created in Tenne""ee and the #ne plo$ ent rate i" the lo%e"t it!" 'een "ince 3ece 'er EFF8.