May 14, 2004

Where Is It?

NASHVILLE - Halfway through May - and a week later than usual - the Tennessee Department of Finance & Administration still has not released the monthly tax revenue report for the month of April. Last month, F&A released the March data on April 8. The month before, F&A released the February data on March 3.

So why the delay? I don't know - and F&A spokesperson Lola Potter has not responded to an email inquiring about the April report. But I suspect the department might be withholding the data because it shows yet another increase in the state's rapidly-growing revenue surplus, which F&A officials already admitted a few weeks ago is likely to reach $256 million this fiscal year.

The use of the surplus is becoming a rather contentious issue at Legislative Plaza, with Gov. Phil Bredesen and his fellow Democrats rushing to spend it, while some Republicans are suggesting it be used to restore state funds to cities and counties that were cut last year, or even that it be used to give taxpayers - hit with a billion-dollar tax increase two years ago - some tax relief.

One imagines that, if the surplus is going to be even larger than the $256 million they now say, the Bredesen administration would prefer that the public and the legislators not know this until the budget is crafted. After all, every additional dollar in surplus is another argument for reducing taxes or restoring those cuts in state funds to cities and counties. But the Bredesen administration doesn't want to cut taxes, and neither does the Tennessee Democratic Party.

If the April revenue report is not released today, I'd bet money it's being delayed for political reasons.

UPDATE: 1:45 p.m. Friday, May 14: I just received the revenue report five minutes ago via email, and will be posting it shortly.