Lawmakers could act on state budget this week
End in sight for 2017 legislative session
NASHVILLE — They’ve crossed their fingers, uttered their prayers and maybe even rubbed one or two lucky rabbit-foot charms.
And now? Tennessee legislative leaders hope they can win final approval this week for the state’s $37 billion spending plan, clearing the way toward adjourning sometime the following week.
“We hope,” dryly observed Lt. Gov. Randy McNally, R-Oak Ridge, the Senate speaker. “Hope springs eternal.”
Forget, if you will, the annual legislative battles over everything from abortion and the Second Amendment to business tax breaks, the granting of special liquor licenses, telling local governments what they can and can’t do and all the rest.
The Tennessee General Assembly’s only constitutionally mandated task is to pass an annual state budget.
Once that’s done, it’s like a dam bursting, with a stream of final bills flooding the floor as lawmakers scramble to wrap up for the year.
At this point, barring a blowup, leaders tentatively plan to put the budget up for final approval Wednesday or Thursday.
The way was eased after the GOP-dominated House and Senate last month approved Republican Gov. Bill Haslam’s IMPROVE Act, with its fuel tax hikes for road improvements coupled with tax cuts elsewhere.
Last week, Haslam brought his annual budget revision before the House and Senate finance committees. It reflects the IMPROVE Act’s passage and other budgetary nods the governor has made to state lawmakers.
“Optimistically, I think, the leader thinks we could be prepared maybe about Wednesday” with final action Thursday, House Finance Committee Chairman Bo Watson, R-Hixson, told reporters last week.
HORSE TRADING?
The Senate and House usually have at least some differences
between the chambers and with the governor over pet legislation.
Watson, in his first year as Finance chairman, said there’s always a “process of negotiation” between the chambers on their priorities.
“But to this point in time we haven’t had a real one that’s jumped up and we said, ‘Oh, we got a real conflict here.’”
Asked whether the House, Senate and governor have been in the customary “horse trading” mode to forestall differences, Watson appeared surprised at the term.
“Well, I guess what you call, well, I guess we’ll use the ‘natural meaning’ of the word. I won’t say no, we’re not,” Watson said before launching into a lengthy explanation.
His use of “natural meaning” referred to a bill passed last week seeking to direct state judges that undefined words in Tennessee law be given their “natural and ordinary” meaning. LGBT advocates say it’s an effort to sabotage same-sex marriage, divorce and child custody issues.
Watson made several other stabs at describing the process before settling on: “So are there some negotiation points? Absolutely, but that’s not horse trading, that’s just the process, that’s democracy, that’s the negotiation process that has occurred between these two chambers over 200 years.”
Battles remain over a number of bills, including one by Chattanooga Democrat JoAnne Favors, which requires seat belts on all public and private school buses ordered or purchased beginning July 1, 2019.
The bill seeks to address the Nov. 21 crash in Chattanooga that killed six Woodmore Elementary School students and injured more than two dozen others.
Because of the bill’s high cost, it’s been placed “behind the budget,” meaning it won’t even be considered by the subcommittee until the full Finance Committee moves Haslam’s budget bill out.
BUSTING A CAP
Several things could make the budget process bumpy this week. The House GOP’s most conservative faction, disgruntled over the gas tax and other issues, is expected to lob at least one harpoon at the budget.
It involves the “Copeland Cap,” a 1978 amendment to the Tennessee Constitution. The nickname comes from former Rep. David Copeland, RCollegedale, who successfully advocated for it.
The provision, Article II, Section 24 of the state Constitution, says: “In no year shall the rate of growth of appropriations from state tax revenues exceed the rate of growth of the state’s economy as determined by law.” And given this year’s budget surplus, it’s an issue.
But it also has an escape hatch. All the General Assembly has to do is declare the dollar amount and the percentage rate that is over the limit.
The administration has a bill to do just that. It authorizes state spending to exceed growth in revenues by $438 million or 2.85 percent. And that’s what opponents would like to bring down.
Given the wide margin of the IMPROVE Act’s passage, a successful challenge may be doubtful. But nothing is certain in the General Assembly until lawmakers go home.
Another issue involves a Haslam administration rule that requires out-of-state catalog and internet vendors with no physical presence in Tennessee to collect state and local sales taxes.
It’s fiercely opposed by a number of out-of-state companies whose trade associations have already challenged it in court. That’s the administration’s goal: it’s all part of an effort by states to force the U.S. Supreme Court to revisit a preinternet commerce landmark ruling that prevents their collecting sales taxes.
The remote sellers’ rule — worth about $160 million to the state and nearly $60 million for local governments — is part of an omnibus package that must be approved by the General Assembly.
Opponents are said to be prepared to try to kill the rule.
Contact Andy Sher at asher@timesfreepress.com or 615-255-0550. Follow on Twitter @AndySher1.