May 5, 2004

Democrats in Tennessee Legislature Prepare To Break Spending Cap Next Year, Too

NASHVILLE - It appears the Democratic leadership of the Tennessee legislature won't be satisfied with just breaking the constitution cap on the growth of state spending by a whopping $105.1 million in this fiscal year. Legislation is pending that would allow the legislature to also break the spending cap in the 2004-05 fiscal year.

Senate Bill 3433, and its companion House Bill 3548 would, as currently written, permit the legislature to exceed the spending cap by just $100,000. The amount is a placeholder - it can be amended later to accomodate tens of millions of dollars in additional spending over the constitutional cap.

The legislation is sponsored in the state Senate by Sen. Douglas Henry and Sen. Ward Crutchfield, both Democrats. In the House, the sponsors are House Majority Leader Kim McMillan, Rep. Tommy Head, Rep. Craig Fitzhugh and Rep. Harry Tindell, all Democrats.

In the Senate Finance, Ways & Means Committee Tuesday, action on Senate Bill 3433 was deferred to tomorrow's meeting of the same committee. In the House Finance, Ways & Means Committee, action on House Bill 3548 was deferred to the first meeting of that same committee next week.

For more on the constitutional cap on the growth of spending by the Tennessee legislature, and how they've broken the cap 11 times in the past 20 years - and how that makes tax increases more likely - scroll down to my entries Busting the Cap in Tennessee, posted Tuesday, and Tennessee Legislature Aims To Break Spending Cap - Again, posted Monday.