February 2, 2005

Is Bredesen About to Break the Bank?

Matt White shreds Tennessee Gov. Phil Bredesen's "State of the State" speech and budgetary plans.

Phil Bredesen gave his State of the State address before a house chamber, packed to the gills. I would contend that this little diatribe should be termed the State of the Bank...because he's about to break it. Of course, his willing accomplices in the press have showered him with praise for his effectiveness, brilliance and management acumen. But there's two sides of the story and, odds are you came here to get the straight scoop and so that is what you shall get.

Bill Hobbs did a strong breakdown of the hard numbers, so I will refer you to his post for a brief synopsis of the Governor's budget. I will just underscore one point. Spending is growing faster than revenues, not unlike it did in the late 90's. We are on a collision course with another massive tax increase. The budget has largely been balanced these last two years because of a $1 billion tax increase passed before Bredesen took office. In two years he has eaten up that additional $1,000,000,000 and put Tennessee on a very dangerous course.