Mark Brown, Communication Director
www.tnsenatedems.com
mark.brown@legislature.state.tn.us
(615) 741-4369 

FOR IMMEDIATE RELEASE

JUNE 12, 2007 

SENATE DEMOCRATS CLOSE SUCCESSFUL SESSION

EDUCATION IMPROVEMENTS, TAX RELIEF HIGHLIGHT ACCOMPLISHMENTS 

NASHVILLE – Having passed sweeping education reforms, invested over a half billion dollars in Tennessee’s education system, provided Tennesseans with tens of millions of dollars in tax relief, balanced the State budget, and raised the Rainy Day Fund to its highest level in State history, the Senate Democratic Caucus brought one of its most successful sessions in recent memory to a close on Tuesday, June 12.

“We might have started the session on a low note with the speaker’s vote, but we were definitely riding high by the time it closed,” Caucus Chairman Senator Joe Haynes, D-Goodlettsville, said. “The Caucus kept its sights set on doing the people’s business, and we did a number of things that will help Tennesseans and make our state’s future a little brighter.”

Democratic Leader Senator Jim Kyle, D-Memphis, agreed with Haynes’ assessment and said he was pleased with the Caucus’ accomplishments this session.

“Tennesseans deserve leadership that looks to the next generation and not the next election, and that’s what the Senate Democratic Caucus gave them this year,” he said. “We made the most significant investment in our education system in over a decade. We provided tax relief. We funded vital State programs, and we saved money in the Rainy Day Fund. That’s not bad work, if you ask me.”

Among numerous accomplishments of the Caucus, Haynes and Kyle specifically pointed out:

BEP 2.0. Education reforms initiated by Governor Phil Bredesen will send over $500 million in new State funding to local education authorities and institute new accountability measures for LEA’s and for Tennessee’s education colleges. In addition, the State will now assume 75 percent of the costs of education. The reforms are funded by a 40-cent-per-pack increase in Tennessee’s cigarette tax.

“We substituted cigarette taxes for property taxes,” Haynes said. “Putting new State dollars into education will keep local governments from raising property taxes. These reforms treat all school systems fairly; they hold schools accountable for academic performance; and they provide a long-term and sustainable funding source for education.”

Tax relief. Democrats in the Senate and House came together to permanently cut one-half cent from Tennessee’s sales tax on food, saving taxpayers approximately $41 million annually. In addition, the State will have another sales tax holiday over the Easter weekend in 2008. During the state’s two previous sales tax holidays, taxpayers have saved approximately $30 million. Senator Lowe Finney, D-Jackson, sponsored legislation to put in place over $3.6 million in property tax relief for senior citizens by increasing their annual income eligibility limit and the threshold on home values eligible for relief under the Property Tax Relief Program for Elderly and Disabled Homeowners. Senator Rosalind Kurita, D-Clarksville, passed a bill extending property tax relief to veterans that are permanently and totally disabled due to service-connected injuries. The General Assembly’s Fiscal Review Committee estimates that at least 2,150 Tennessee veterans will qualify for an annual tax break of $845 on average.

“We have managed the people’s money well, and that allowed us to provide significant tax relief,” Kyle said. “We’re happy to be able to do that.”

Rainy Day Fund. With the $250 million put into it in this budget, the State’s Rainy Day Fund will reach $750 million, an historic high. “State revenue collections are strong today, but we know they’ll go down in the future,” Haynes said. “Saving money today will help us avoid needing to raise taxes when the next downturn comes.”

Senate Democrats also voted to provide funding to hire new district attorneys and public defenders across the state; strengthen sentences for gun crimes and gang crimes; provide $1 million to improve the services provided by the Tennessee Department of Veterans Affairs; increase the payment for in-service training for firefighters to the level given police officers; and to give State employees a three percent pay raise and increase the State contribution to their 401(k) accounts to $50 a month.

“We also put a community enhancement grant program in place,” Kyle said. “This will provide much-needed funding to volunteer fire departments, summer job programs, public libraries, senior citizens centers, and numerous other worthy community projects.”

In all, Haynes noted, the Senate Democratic Caucus accomplished the goals it set at the beginning of session. “We take seriously our commitment to the people of Tennessee, and we fulfilled our responsibility to them,” he said. “We balanced the State budget and made smart investments. We’re proud that we were able to do some good things. This was a good session for the Democratic Caucus and a good session for Tennesseans as a whole.”

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