Daily Dose for May 07, 2007

Surplus Report Due this Week

Surplus Report Due this Week -- Lawmakers should know, later this week, the exact size of the state's much-talked-about budget surplus this year. Surplus talk has already changed the political dynamic in Nashville. Just last week, Gov. Bredesen says that the 40c cigaratte tax he previously said was 'essential' was really not necessary. The Govenor now says he's pushing to phase the tax in - and when asked if Republicans back that move, Lt. Gov. Ramsey simply said 'we'll see.' In addition to the state's proposed education funding increase (more on the later), lawmakers have also proposed a slew of pet projects and there are still tax-swap plans on the table from both parties to partially remove the state sales tax on food. Although the official numbers haven't been released, Bredesen says he expects the surplus to be around $300M in new money.

50% versus 60% Funding -- The $476 million overhaul of Tennessee's Basic Education Program has bipartisan support, but now the only thing being fought over is how much of the proposed changes will be completed this year. Gov. Bredesen and top Democratic leaders have endorsed a plan to fund half of the proposed changes this year, with money coming from revenue surplus projections and a cigarette tax increase. The 50% plan puts off some of the proposed changes until the second yera. The Republicans, however, favor funding 60% of the changes in the first year - a plan that benefits Knox and Hamilton Cos even more. The 60% plan would be funded almost entirely by new projected money in the state's budget surplus - and begin to implement all the changes right away. Lt. Gov. Ramsey has promised that the cigarette tax increase that comes out of the Legislature will be less than 40c.

AT&T Won't Try Again -- AT&T says that if they fail this year to get a state-wide cable franchise, they won't try again next year, but instead will simply offer Nashvillians more competition in the cable market. So far, it doesn't look like the Legislature will grant AT&T a statewide franchise - bills in the House and Senate doing so are still in committee. Hoping to quiet critics who say AT&T will leave behind rural areas, AT&T says its three-year plan is to offer its television service in the state’s four urban areas plus “upwards to 70 small cities and towns across the state of Tennessee, from east to west.” If it doesn't pass, though - AT&T will move that investment to another state, but still request a local franchise for Nashville.

More on Fred -- The Tennessean is doing a three-part spread on Presidential prospect Fred Thompson. Here's today's. See also this article, which addresses the oft-repeated charge that Thompson may be too lazy to run for President. Also, the Hotline has an excellent report from Thompson's speech to the Lincoln Club in Orange County, California. See also - a preview of Thompson's team, which includes plenty of TN connections - TN GOP Chair Bob Davis and last year's TPB Political Consultant of the Year - Tom Ingram, in addition to former Sen. Howard Baker and former Frist CoS Mark Tipps.

Posted by Adam Groves | Email This |