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Dear Friends, Senator Paul Stanley Senate District 31 Senator Paul Stanley’s Weekly Update
General Assembly passes budget and several key bills Contact: Darlene Schlicher
(615) 741-6336 or email: darlene.schlicher@legislature.state.tn.us
(NASHVILLE, TN), May 21, 2008 -- The 105th General Assembly passed a state budget and several key bills before adjourning the 2008 legislative session to become a part of Tennessee history. The action came after four and a half months of legislative deliberations and is one of the earliest adjournments in recent years. The State Senate had targeted an April adjournment date; however, significant revenue shortfalls required consideration of a revised budget proposal from Governor Phil Bredesen to fund the 2008-2009 fiscal year, which will start in July. Among items the governor cut from the budget were $22 million to extend pre-K, a two percent pay raise for state employees, $86.5 million for a scheduled installment to the Basic Education Program 2.0 (BEP 2.0), $55.8 million in base reductions from higher education, and money for an automatic license revocation program for drunk drivers. He also devised a plan to reduce Tennessee’s state government workforce by 5 percent, or 2,000 employees. The employee buyout plan entails offering “voluntary buyouts” to as many employees in the executive branch of government as possible. If reductions are achieved through voluntary buyouts, the cost is estimated to be approximately $50 million in one-time funds. In turn, eliminating the required number of positions will reduce state payroll by an estimated $64 million in recurring funds. Following are some of the details of the plan:
The General Assembly did restore enough money to provide state employees, higher education employees, and teachers with three of more years of service with a $400 Employee Assistance Payment Program, or bonus, to be distributed by October 1. In addition, the legislature voted to restore the state’s share of state employees’ 401 K match from $40, back to the current $50 contribution per month. Over 70 percent of state employees participate in the 401 K match plan. Lottery Scholarship Plan approved by legislature Among key bills approved during the final day of the 2008 legislative session was a plan to distribute excess lottery dollars to Tennessee students. The legislation will provide college scholarship opportunities to 12,000 more students. One of the key points of the bill is extending the 2.75 grade point average (GPA) requirement for students to maintain the HOPE Scholarship. Currently, the 2.75 GPA requirement to retain the HOPE scholarship applies through the student’s first 45 hours. The bill takes that 2.75 through 75 hours at which time the student can benefit from a “fresh start” provision. That provision allows students to use their current semester average, rather than the cumulative average, in obtaining the 3.0 needed to continue the scholarship into the senior year. The bill also provides scholarship opportunities to non-traditional students, military veterans, those who are dually enrolled in college and high school, students seeking medical degrees who agree to serve rural areas, and foster children. There is $461.8 million in the lottery reserve account, of which $50 million must be kept in savings under current law. The General Assembly also benefits from ongoing net revenues of an estimated $11.4 million more than is needed to continue the current programs funded by lottery proceeds. Highlights of the plan include:
The lottery scholarship distribution plan is in addition to the 950,000 K-12 students that would benefit from the Energy Efficient Schools Program, which was also approved this week. The bill is especially needed this year to help bolster capital needs of local K-12 schools due to the administration’s cuts in the Basic Education Program 2.0 (BEP) improvements that were slated for distribution this year. The proposal partners the state with TVA, Oak Ridge Laboratory, and other energy experts by setting up a Council that would guide schools in energy-saving options. The Council would set up the rules for distribution of the funds, which would come in the form of grants and loans. The Council could also tap into federal grants from TVA and the Department of Energy that are available for such “green energy” programs. The program could result in a savings of 18.5% on energy bills if the schools implement the upgrades and utilize some of the best practices for energy conservation. The measure is expected to save an estimated $29 million in energy costs for Tennessee schools annually. The constitutional amendment creating Tennessee’s lottery scholarship program adopted in 2002 approved the use of excess dollars for three purposes. The amendment listed K-12 construction as the first purpose, new Pre-Kindergarten classes as the second, and after school programs as the third. The Energy Efficient Schools program would fall under the K-12 construction provision, which is the only facet of the amendment yet to be enacted, even though it was listed first on the ballot Open Records bill approved during last week legislation action In an action on open government, the General Assembly voted to approve major legislation opening records in Tennessee during the last week of legislative action. The bill creates the office of open government counsel to deal with open records issues for local government; requires open records requests to be available within five days or a denial must be sent with explanation; clarifies that violations may be considered in circuit or chancery court; and mandates certain boards and utilities to develop training programs on open meeting laws. Senator Randy McNally (R-Oak Ridge), sponsor of the bill, told state senators that the legislation would move Tennessee from being rated the 4th lowest to 10th best in the nation by open government watchdog groups. Another major bill passed during the last days of the legislative session adds expertise and accountability to the Board that oversees the Tennessee Veterans Nursing Homes. The nursing homes have come under increasing state and federal scrutiny following recent allegations of abuse. The bill restructures the board, consolidates daily management responsibilities in a new executive committee, and provides for heightened accountability between board members and state government. The bill requires appointment of two new members with clinical nursing home and administrative experience, and it makes the Commissioner of Finance and Administration a member of the Board. New reporting and legislative review requirements are also enacted. Bill protects children from sex offenders Legislation was passed this week to require that driver’s licenses of convicted sex offender be encoded to allow law enforcement to identify them. Burchett said the action will allow police officers to immediately identify child sex offenders who violate conditions of their lifetime monitoring which prohibits them from visiting areas that children commonly go, like schools and parks. A Tennessee convicted sex offender’s vehicle was stopped during a routine search in Nashville and was found with five male children, ranging in age from 12-13 years-old. The sex offender met one of the boys on MySpace, a popular social networking site. The five juveniles were in the vehicle with the offender for three hours, and officers discovered that none of them had any relation to the defendant, police records indicate. Failure to obtain or carry the identification would be a Class E felony punished by a fine of $350 and 90 days in jail on a first offense, $600 and 180 days imprisonment for a second violation, and $1,100 and up to one year in prison for a third or subsequent offense. “We must protect children from sex offenders who experts maintain, rarely if ever are rehabilitated,” said Senator Paul Stanley (R-Germantown). “This bill will be an effective tool to give law enforcement the information they need to protect victims of this crime.” Self-Directed Care bill takes new approach to long term care needs “Tennessee has been last in the nation for too long in the number of healthcare choices for elderly and disabled citizens on Medicaid-supported services, a problem that has kept them from being able to stay in their homes and age with dignity,” said Sen. Black. “I know from speaking with citizens in my district that this is an issue that concerns many of them, and I can sympathize with their lack of options.” Arkansas, Florida, and New Jersey were the pioneers of the self-directed health care concept. Since that time, 12 other states have expanded their choices. In Arkansas, there was a 40% reduction in nursing home admissions in the second year of the program, and the total Medicaid cost per person under the self-directed care plan was commensurate with that for the traditional agency model. Studies reveal that, by every measure, self-directed care is succeeding and that consumers with this option are reporting greater satisfaction, better quality of life, and fewer unmet needs. Issues in Brief Message to Congress / highway funds – Senator Diane Black (R-Gallatin) led to passage this week of a resolution asking Congress to stop the increasingly popular
budgetary practice of using earmarks to the Highway Trust Fund. The General Assembly asked Congress to return each state's fair share of Highway Fund dollars and halt its ongoing efforts to rescind additional funds from the states. |
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