Recent editorials from Tennessee newspapers:
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Jan. 23
The Knoxville News Sentinel on Gov. Bill Haslam’s tax proposal:
Gov. Bill Haslam last week unveiled his blueprint for tax changes, which includes a much needed increase in fuel taxes and a range of tax cuts that would affect all Tennesseans.
The package of tax cuts should mollify some Republican lawmakers who point to the state budget surplus as a reason to provide tax relief, but it remains to be seen if that can offset GOP opposition to the proposed fuel tax increase.
The Improving Manufacturing, Public Roads and Opportunities for a Vibrant Economy Act, also known as the IMPROVE Act, would result in $278 million in new dollars that could be used to fund more than 960 transportation projects that are planned across the state’s 95 counties. The price tag for the state’s backlog in infrastructure projects has ballooned to $10.5 billion.
Tennessee has long followed a pay-as-you-go policy toward infrastructure improvements, a responsible approach that keeps debt lower. State funding comes primarily from fuel taxes, which means that those who use the roads are the ones who pay for them.
Tennessee’s fuel taxes haven’t been raised since 1989. Rising construction costs and more fuel-efficient vehicles have cut its purchasing power in half.
Haslam is proposing raising the gasoline tax by 7 cents to 28.4 cents per gallon and the diesel tax by 12 cents to 30.4 cents per gallon. The higher tax rate on diesel fuel would reflect the fact that tractor-trailers cause most of the wear-and-tear on roadways.
Other revenue enhancements include an increase in vehicle registration fees by an average of $5 per vehicle, a new $100 fee paid for electric vehicles and a 3 percent charge on all rental cars.
Another $18 million in federal money would be available each year if, as Haslam has proposed, Tennessee rescinds its law that allows passengers to have open containers of alcohol as long as the driver is not drinking. The increases would net the state’s Department of Transportation an additional $227.8 million, with cities receiving about $39 million and counties $78 million.
A key to Haslam’s proposal is that the tax rate would be indexed to the Consumer Price Index, which would allow revenues to keep up with inflation.
The IMPROVE Act also contains several tax cuts. With the state enjoying a nearly $2 billion surplus, the state is in a position to lower rates.
Haslam is proposing lowering the sales tax on food from 5 percent to 4.5 percent, as well as cutting the franchise and excise taxes on businesses. He also would accelerate the phased elimination of the Hall tax on interest and dividends.
Several lawmakers are developing alternatives to raising fuel taxes, but Haslam’s proposed tax relief in the IMPROVE Act would benefit every resident and most businesses in Tennessee.
Tennessee’s roadways are among the nation’s best in quality, but that advantage is at risk. Haslam’s plan is a fiscally responsible blend of tax cuts and increases that meets the state’s needs in a manner that is reasonable and fair.
Online:
https://www.knoxnews.com/
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Jan. 22
The Commercial Appeal on a decision to allow the Tennessee Valley Authority to draw water from the Memphis Sand aquifer:
Local regulations provided no reason for the Shelby County Groundwater Quality Control Board to overturn the county’s decision to allow the Tennessee Valley Authority to draw water from the Memphis Sand aquifer.
Memphians have plenty of reasons to be concerned about the matter, however, including indications that the new TVA wells, which would draw water to cool a new TVA power plant, could contaminate the Memphis Sand.
This precious reservoir, which underlies parts of 20 counties across West Tennessee is vitally important to public health and the economic well-being of the region. It is one of Memphis’ most important assets.
Similar concerns have been raised about the Cushing, Oklahoma-to-Memphis crude oil pipeline, whose route crosses a part of Presidents Island, lacking a protective clay layer to cover the 60 trillion-gallon aquifer.
Awareness of the importance of the Memphis Sand has been growing, but clearly this awareness needs to be converted into action - some way to bring more awareness to perceived threats to the precious resource, resolve disputes and give people more opportunities to voice their concerns about protecting the community’s fresh water supply.
The Mid-South is not Arizona or New Mexico, but current and future demands for water suggest that we should quit treating it as if we had an infinite supply - taking a page or two from the rigorous control exerted by our friends in the desert Southwest.
Two legislators from Shelby County believe they’ve found a way to meet this need.
Legislation being co-sponsored by state Senators Brian Kelsey, a Republican from Germantown, and Lee Harris, a Democrat from Memphis, would create a regional board or other entity to oversee the aquifer. Kelsey said the bill would be shepherded in the House by Rep. Ron Lollar, R-Bartlett.
The legislation is worth considering. We look forward to hearing more details about the plan. What’s important is to begin the process of creating a means to accomplish this long overdue objective. A regional authority watching out for our water supply might be the best bet.
Cooperation between a suburban Republican and an urban Democrat on this issue, which affects a diverse range of constituents, is certainly reason for optimism.
But there is no reason to be overconfident about the future of the aquifer, which supplies public utilities and private industry in Shelby County with more than 180 million gallons of high-quality water daily.
The potential for contamination must be taken seriously. A discussion about how best to protect it must begin before the next threat to the Memphis Sand is on the horizon.
Online:
https://www.commercialappeal.com/
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Jan. 19
The Johnson City Press on outsourcing campus jobs:
Kudos to state Sen. Rusty Crowe, R-Johnson City, for being one of 20 legislators who signed a letter to the president of the University of Tennessee expressing concern over Gov. Bill Haslam’s plan to outsource some campus jobs. Crowe and state Rep. David Hawk, R-Greeneville, were the only members of the Northeast Tennessee legislative delegation to do so.
Other signers of the letter, which was mailed to Dr. Joe DiPietro last week, included Republicans and Democrats from across the state. Lawmakers noted that outsourcing maintenance and custodial jobs on UT campuses could be detrimental to local economies and damage overall employee morale in the system.
“Savings may be seen on the front end but the state loses the trickle-down effect on the local economy as well as the resulting tax revenue returning back to the state,” the letter states. “The same can be said of the profits that leave the state with the contracting national company.”
Officials with Haslam’s administration said in November that a proposal to outsource jobs on college campuses in Tennessee would proceed after a second report found the strategy could save more than $35 million per year. Critics of the governor’s plan, however, have questioned the validity of those projected savings.
Haslam has said individual institutions can opt out of the outsourcing program. Crowe and his colleagues who sent the letter to DiPietro are urging the president to take a long look at the true costs of outsourcing before making his decision. We agree.
As the letter says: “With privatization, the university loses the flexibility to move the right personnel to the right place at the right time at the discretion of the administration.”
Online:
https://www.johnsoncitypress.com/
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