August 9, 2006

Tennessee's Surplus Grows A Surplus

The state of Tennessee finished July and the 2005-06 fiscal year with $411.2 million more revenue than was necessary to balance the state budgeted adopted at the beginning of the fiscal year. That's about $100 million more than the surplus the politicians told you they were expecting a few months ago. But now it appears that they did expect the larger surplus. From the press release:

"We continue to see healthy corporate collections and strong consumer confidence in Tennessee, as indicated in franchise and excise taxes and sales tax collections," [Finance and Administration Commissioner Dave] Goetz said. "This is totally in line the expectations we were given in May from the state Funding Board and the state's economic advisers."

Don't you wonder what they're planning to do with the extra $111 million?

In a related story, Gov. Phil Bredesen plans to campaign hard for the election of former state Sen. Bob Rochelle, the chief architect and proponent of a proposed state income tax, to represent the 17th district, which currently is lead by one of the income tax's staunchest foes, state Sen. Mae Beavers. But of course Bredesen opposes the income tax. Or so the governor says. They all do when they're seeking to be re-elected to a second term.

Okay, then. Back to my regularly scheduled vacation...