Gov. Don Sundquist and the Tennessee legislature are embroiled in a bitter battle over tax policy. At Sundquist's request, legislators convened this week to address the subject, which has divided the two branches of government for most of the year. This is the second unscheduled session in six months.At issue is how to fund many of the social programs outlined in the state's fiscal budget. Spending outlays stand to create a $383 million deficit for the government if new revenue is not found. According to Sundquist, the state will soon be unable to provide current levels of state services to children and the poor.
In a passionate speech to the Assembly last Monday, the governor told legislators they would have to take the blame for denying children health-care, keeping schoolchildren in portable classrooms, and releasing criminals from prison early, if they did not pass his tax plan.
"You'll die by a thousand cuts with a razor blade by the cuts you'll have made," Sundquist said.
The governor's plan calls for a 3.75% income tax and reduces the state sales tax. It also increases the premium tax for health insurance companies. According to Sundquist, Tennessee is 50th among the states in revenue collection.
The Senate Finance committee is expected to vote on the bill next week. Political leaders contend that even if the bill makes it through committee, however, it still will not have enough support in the full Senate. "There's no momentum for anything but for us to go home . . ." Sen. David Fowler, R-Signal Mountain, told the Tennessean.
Many lawmakers blame TennCare, the state's $4.3 billion health-care program for the primary reason for the state's fiscal problems. TennCare insures 1.3 million low-income, disabled, and previously uninsured citizens - a quarter of the state's population.
In Arizona, Gov. Jane Hull urged legislative leaders this week to consider a December special session to allocate the state's $3.1 billion tobacco settlement.
The state will receive its first $170 million next month from the multi-state federal suit. The governor would like to use the funds to construct a new state hospital, health lab, and numerous rural health clinics. The Arizona Republic reports that House and Senate leaders agree on these goals but dispute how to accomplish them.
Lawmakers do not look to be very enthusiastic about going back to work before the new year, however. They suggest waiting on the issue until their regular session begins in January 2000.
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