February 13, 2004

Tennessee's Growing Budget Surplus

Tennessee readers, take note: Tennessee's tax revenue surplus has ballooned to nearly $100 million halfway through the fiscal year. The Tennessee department of Finance & Administration reported that revenues collected in January were $14.9 million above the budgeted estimate for the month. All told, the state has collected $97 million more in tax revenue than it expected in the first half of the year - with the sales tax generating more than half of the surplus. For the year, revenue from the sales tax is up a very strong 6.47 percent over the same period last year, and total state tax revenue is running 7 percent over the same period a year ago.

In other words, Tennessee is running a large revenue surplus. Too bad the Bredesen administration is already making plans to spend the money - rather than save it for a rainy day or return it to the taxpayers who are now paying more in taxes than it will take to balance this year's budget. A lot more. $200 million - this year's likely surplus - per capita, it amounts to almost $150 for a Tennessee family of four.

It's too bad Tennessee doesn't have a Taxpayers Bill of Rights.