A big part of Gov. Bill Haslam’s State of the State address was trying to convince lawmakers not to spend Tennessee’s billion-dollar surplus on roads.
Instead, he presented a laundry list of ways the money could be put to better use.
Haslam wants to increase education spending from kindergarten to college. He wants to cut taxes on groceries, investments and manufacturers. And there are buildings that need fixing and rising health costs for the poor, state workers and retirees.
It all adds up to $900 million.
“We don’t have to give raises to our teachers or to our employees,” Haslam said. “We don’t have to cut taxes, and we don’t have to fund the maintenance of our buildings on a recurring basis. However, I am convinced that all of these things are strategic investments in the future of our state.”
That means money for roads would have to come from a gas tax increase, Haslam says. The state hasn’t had a hike since 1989.
Haslam argues that a gas tax increase is more prudent and more fair, since out-of-state drivers would also be charged when they pass through. He also says the state needs more than $10 billion in road improvements, far more than the surplus could provide.
But for an anti-tax state legislature, a gas tax increase could be a tough sell. Some lawmakers are already saying they won’t support it.
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