The last time Governor Phil Bredesen made significant budget cut was five years ago – the first year he took office. Then, the Governor slashed departmental spending with 9% across the board budget cuts.
Most of the cuts were debated with little fanfare from state legislators, with the exception of state shared taxes. That’s the portion of taxes the state sends back to cities and counties. Local governments were upset at losing a portion of the money they relied on to fund their own needs.
Ultimately, they lost $40-million and property taxes went up in several communities. Governor Bredesen fully restored the payments with the 2006 budget, but with this year’s shortfall hovering near $500 million , local government officials are scared of losing the money again.
Chad Jenkins is the Deputy Director of the Tennessee Municipal League, the lobbying arm of local governments.
“No one escapes the consequences of a weak economy. Cities are putting their budgets together now and they’re finding the same problems of the state and anything the state does would further complicate that.”
The Governor is currently scheduled to deliver a new state budget to legislators next week. The specifics of his cuts are unknown though it’s expected to include the first mass state employee layoff in decades.
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