No New Taxes Budget:

ByMatt Kroplin
Democratic Caucus Press Secretary
www.tnhousedems.com
matt.kroplin@legislature.state.tn.us
615.741.6620

In order to offset proposed cuts
of over $400 million from K-12 Education (including $373 from the BEP which
would have caused either a loss of 8,352 teachers or a property tax increase on
the average of 27% to offset local cuts), the state will instead retain a
portion of state-shared taxes ($368 million) from Tennessee cities and counties
to cover this cut (this will likely cause an increase in local property taxes
but will protect basic education and teachers);
Cuts over $107 million from
Higher Education (including elimination of over 2500 positions and likely
resulting in another substantial tuition increase);
Reduction of uninsurables on
TennCare (causing around 145,000 individuals statewide to lose health
insurance);
Cuts in Health (causing 20,000 Tennesseans with serious mental
illness who are currently in active treatment will lose mental health coverage
and 301,200 additional Tennesseans to lose mental health benefits);
and,
Across-the-board reductions of 12.5%.
Closing all non self-sustaining state
parks and
Reductions of 12.5% in areas of state government including, but not
limited to, the elimination of funding for: TN Preparatory School, the
Governor's Regional Offices, TN State Guard, Wetlands Acquisition Fund, TN Fire
and Codes Academy, Adult Basic Education Program, TN Occupational Safety and
Health Administration (about 2,500 state workers will lose their jobs) as well
as a reduction in funding for the Retired Senior Volunteer Program and the Tax
Relief Program for Elderly and Disabled.



Funding Gap:

The total funding gap
for next year's budget is $945.2 million. This is the amount that must be cut
for a No New Taxes Budget to be enacted.
This year's shortfall, coupled with
previous shortfalls, is $477.4 million which must then be added to mandatory
improvement items.
The necessary budget reductions are needed to offset the
net available funds (-$477.4 million) which is negative due to the
state's recurring deficit, the FY2002 shortfall, and the negative net revenue
growth.
Mandatory improvement items are, in largest part: the Basic Education
Program, TennCare, Group Insurance, Children's Services and Statutory Salaries.

These improvements do not include: non-recurring grants such as fireman's
supplement pay, education grants, state parks; or salary increases for state
employees and teachers.
As these cuts are made, further expenses are incurred.
For example, to close a state park would cost unemployment for laid-off
employees, capital outlay to close the park and mothball it, etc.
When you
include capital maintenance (UT schools, State Board of Regents schools, radio
towers, etc.), the reduction of over-appropriation (abolishing current positions
and shifting load to existing positions), the cost incurred to close facilities
(terminal leave, unemployment benefits, continuing contract liabilities,
mothballing expenses), and the mandatory yearly allowance to the Rainy Day Fund,
the total funding gap is $945.2 million
Thus, the $945.2 million figure is the
bare minimum needed to create a balanced budget for the next fiscal year with no
new taxes and no improvements that are not mandated or court ordered.
This
amount must be removed from the current structure to create a no new tax budget.
As this removal occurs, however, other expenses must follow.


Framework for
creating a No New Taxes Budget:
This budget is not intended to be a "stop-gap"
budget--rather, a new paradigm for Tennessee government to live within its
existing means
It is expected that no new taxes will be enacted.
This is a
conservative process--virtually no reserves will be left as a cushion for
ensuing years.
The stated priorities are: basic education, health and safety
activities.

James O. "Jimmy" Naifeh
Speaker of the House
Tennessee General Assembly
19 Legislative Plaza
Nashville, TN 37243
(615) 741-3774

To the editor:

I would like to take a moment of your time and talk to you about reforming
the State of Tennessee's way of taxation.

First let me say I understand that no one wants to pay more taxes. I don't
want to pay more in taxes than is absolutely necessary. However, like you,
I recognize that providing an adequate level of state services requires we
all pay taxes.

We are a low tax state and, even after tax reform, will continue to be a low
tax state. The average Tennessean pays less in state and local taxes than
the citizens of any other state. Including the District of Columbia, we
rank 51st in the nation in per capita state taxation. While being ranked
last in taxation is a good thing, it does have consequences. If we insist
on being 51st in taxes, we will never rank much higher in areas that are
important to all of us, like providing quality educational programs for our
children and health care for our neediest citizens. I support increased tax
revenue because I do not want to be ranked 51st in these areas.

Our current consumption based tax system grows at a slower pace than the
cost of services being provided for two simple reasons. First, over the
last 20 years, we have dramatically shifted our purchasing away from the
purchase of goods which are taxable to the purchase of services which are
not taxed. Second, under federal law, most purchases made over the Internet
are not subject to state sales taxes - it is estimated that Internet sales
are costing us over $300 million annually in tax growth. So why not tax
services to fix our problem? The largest areas of services not taxed are
for health care and construction spending. Most people find taxing health
care services morally objectionable and taxing construction just adds to the
cost of housing, making it more difficult for people to buy a new home or
for a business to expand. Over time, the demand for services from state
government has grown due to both general population growth and unique
factors that grow faster than general population change, such as the growth
in people being sentenced to state prisons, increased numbers of students in
higher education institutions, and increased number of cases processed
through our court system. The result is that with the current tax system,
we can't keep up with current service demands, much less "grow" ourselves
into a higher ranking in spending on priorities such as education, health
care, and public safety. A change in the tax system is needed for these and
other reasons.

The current system is unfair--it asks lower income families to pay a higher
share of their income in state taxes because we tax consumption of basic
needs--like food, clothing, motor vehicle fuel and fees such as for driver's
licenses. Why do I say this is unfair? A family making $12,600 pays
approximately 12% of their income in state and local taxes while a family
making $159,000 pays approximately 4% of their income in state and local
taxes. What's fair about that?

I support the flat tax reform plan because it creates a fairer tax system
and represents a long term solution to the state's funding needs. Now for
some facts about this plan. First, if you are married and make less than
$30,000...read no further because you will pay no income taxes under this
plan. For most Tennesseans, you would calculate the tax you pay as follows:


* Begin with your federal Adjusted Gross Income (AGI)- - - you will
find this number on line 33 of the 1040 form;
* From your AGI, subtract $15,000 for a single filer or $30,000 for
married filers. Also, subtract $1,500 for each of your dependants;
* Take the remaining amount and multiply by 4.5% (.045). This is the
amount you would pay in state income tax.

This income tax amount is deductible on your federal income tax return in
the same way that you currently deduct home mortgage interest and property
taxes. Now for some questions.

Will social security benefits be taxed? Social Security will only be taxed
for state purposes to the extent they are taxed for federal purposes. What
does this mean? First, if your only income is from Social Security, then
you will owe no state income tax. If you have income in addition to social
security, the federal rule of thumb is that if one half of your social
security plus all your other income exceeds a threshold of $32,000 for an
couple or $25,000 for an individual, the amounts in excess of the threshold
amount is included in you taxable income. Otherwise, it is exempt. The
long and short - if you have to include social security benefits for federal
tax purposes, then they will be taxable to the same degree by the state. If
you filed a federal 1040 form this year, you would have included any taxable
social security benefits on line 20b. But remember, you still get to
subtract the state personal exemption ($15,000 for singles, $30,000 for
married) from your AGI.

Will capital gains be taxed? Under this plan, one half of long term capital
gains will be taxed by Tennessee. To estimate the taxable portion of
capital gains, take your net long term capital gains from line 13 of your
federal 1040 form and multiply by 50% (0.5). The other half is not included
in your AGI for Tennessee purposes. Whatever portion is included in AGI is
taxed at 4.5%, again, after deducting the personal exemption. For most
people, their largest capital gain comes from selling their home. Under
federal rules that Tennessee will follow, a capital gain on the sale of a
home is generally not taxable unless it exceeds $500,000 for a married
couple or $250,000 for a single person. Remember, the capital gain is not
the selling price of your home - it's the difference in price between what
you sell it for and the price you paid when you purchased it.

Does everyone pay taxes under the Flat Tax Reform Plan? Yes. The plan does
remove the state and local sales tax on grocery food, on clothing with a
value of less than $500 and non-prescription drugs. This provides some
degree of tax relief to low and middle income families as well as our
elderly population who live on a fixed income. However, everyone will
continue to pay sales tax on all other purchases, gas taxes and fees for
state services such as drivers licenses.

With this reform in place, Tennessee will also be able to capture the taxes
it currently loses from people who work in Tennessee but live out of state.
Those who do not live here but work here would now begin paying income taxes
to Tennessee. They would then take a credit against their "home" state
income tax equal to the amount of Tennessee income tax they paid. In the
end, they don't pay more in total, it's just that Tennessee now gets a share
of what they currently pay to their home state. For instance, professional
athletes and entertainers would have to pay to play or perform here just as
they do in almost every other state. We estimate that Tennessee lost out on
around $120 million in revenue from people who work here but pay no taxes
here. Tennessee citizens who work out of state already pay income taxes in
the state of employment. In their case, they would take a credit against
their Tennessee income tax for the amount of income tax paid in the state of
employment. Since the income tax in every state surrounding Tennessee is
higher than what's being proposed here, no Tennessean working in another
state should see an increase in their total taxes.

During this legislative session, it has become apparent that a majority of
legislators now recognize that Tennessee faces a significant financial
problem. To have a balanced budget next year, we either must find a way to
raise revenue or we must reduce the current budget by $950 million. I don't
want to cut $950 million from the existing spending given the severe
consequences it will have on every citizen in this state. I don't think
most people who have studied this want that either. The question then is,
How are we going to raise this money? We can either reform the system by
choosing fairness, deductibility and long-term stability or we can
perpetuate the current unfair and inadequate system and continue to have a
similar problem in the years ahead.

I'm for fixing the problem.

Sincerely,

Jimmy Naifeh
Speaker of the House

.

BudgeNEWS ALERT FROM STATE HOUSE FINANCE JUNE 17,t

COMMITTEE HEARINGS...JUNE 17, 2002,
3:33 PM CENTRAL TIME, ON THE CLOSING PLAN FOR FY 2002.

The House Finance, Ways
and Means Committee convened this afternoon to discuss ways to close this year's
budget in balance. The projected deficit for this fiscal year--ending June
30--is $475 million.

Finance Commissioner Warren Neel and Comptroller John
Morgan described the reserves that can be used to generate the $475 million.
They presented the reserves in two rounds, the first round would be reserves to
be zeroed out and the second round would be reserves used pro rata.

First Round
Use of Statutory Reserves (zero out balance):
Criminal Injuries & Drunk Drivers
Compensation Fund;
THDA Assets Fund;
Highway Fund;
Temporary Assistance -
Families First;
Local Parks Acquisition Fund;
State Lands Acquisition
Fund;
Agricultural Resources Conservation Fund;
Safety - Driver Education;
and,
Wetlands Acquisition Fund.

Second Round Use of Statutory Reserves (pro
rata use):
Rainy Day Fund (use 70%);
Parole & Probation - Supervision
Fees;
Health - Alcohol & Drug Addiction;
Judicial Information System;
Safety -
Titling & Registration;
TRA - Public Utilities;
TACIR;
Safe Schools
Program;
Special Schools;
Emergency Communications Fund;
Fraud & Economic Crimes
Fund;
TBI - Background Checks;
F&A - Electronic Fingerprinting;
Health -
Traumatic Brain Injury;
TRA - Telecomm Device Distribution Program;
TBI -
Expungement Fees;
Safety - Motorcycle Safety;
Education - Driver
Education;
Correction - Sex Offender Treatment Program;
State Lands Compensation
Fund;
Correction - Work Release Supervision Fees;
Human Services - Industries
for the Blind;
Wetlands Compensation Fund;
F&A - Domestic Violence Community
Education; and,
Secretary of State - Voting Machine Loan Fund.

House Finance
will reconvene tomorrow afternoon at 1:30 PM to review an updated No New Taxes

NEWS ALERT FROM STATE HOUSE FINANCE COMMITTEE HEARINGS...JUNE 14, 2002, 1:45
PM CENTRAL TIME...THE FOLLOWING ARE HIGHLIGHTS FROM THE ONGOING STATE HOUSE
FINANCE COMMITTEE HEARINGS ON THE "No New Taxes Budget" CURRENTLY BEING
DEBATED:

House Budget Hearings continued this morning with the Department of
Environment and Conservation, the Department of Transportation, TWRA, and
TACIR.

Deputy Commissioner Rick Sinclair presented cuts to the Department of
Environment and Conservation:
* Elimination of Local Park Acquisition Fund;
* Elimination of State Land Acquisition Fund;
* Closing of all state parks;
* Reduction of Administration, Historical Commission, State Parks,
State Parks Maintenance, Maintenance of Historic Sites, West Tennessee River
Basin Authority, Air Pollution Control, Radiological Health, Community
Assistance, Water Pollution Control, Solid Waste Management, Water Supply
and Groundwater Protection;
* Reduction of Archaeology, Geology and Natural Heritage; and
* Total reduction of 1,956 employees.

Commissioner Bruce Saltsman presented cuts to the Department of
Transportation:
* Elimination of State-Aide/Bridge Grant;
* Elimination of Local Interstate Connectors funds;
* Reduction of State Industrial Access Fund;
* Reduction of Mass Transit projects;
* Reduction of State Highway Construction;
* Reduction of TDOT Headquarters;
* Reduction of Bureau of Administration;
* Reduction of Bureau of Engineering;
* Reduction of Field Engineering;
* Reduction of Equipment Purchases and Operations;
* Reduction of Planning and Research; and,
* Total elimination of 311 positions.

Director Gary Myers presented cuts to the Tennessee Wildlife Resource
Administration:
* Elimination of funding for the Wetlands Acquisition Fund.

Director Harry Green of the Tennessee Advisory Commission on
Intergovernmental Relations (TACIR) presented the effects on eliminating
State-Shared Taxes:
* 185 municipalities would need to double their current property tax
rate (at a minimum) to maintain current level of spending;
* 36 counties would need to increase their property tax rate by over
50%;
* 16 counties would need to increase their rate by over 75 percent;
* 6 counties would need to more than double their current rate.

The House Finance Committee will reconvene on Monday at 1:30 PM to discuss
how to close the current Fiscal Year in balance.

NEWS ALERT FROM STATE HOUSE FINANCE COMMITTEE HEARINGS...JUNE 12, 2002, 1:39
PM CENTRAL TIME...THE FOLLOWING ARE HIGHLIGHTS FROM THE ONGOING STATE HOUSE
FINANCE COMMITTEE HEARINGS ON THE "No New Taxes Budget" CURRENTLY BEING
DEBATED:

House Budget Hearings continued this morning with TennCare, the Department
of Mental Health and the Department of Health.

Deputy Governor John Tighe presented the impact if TennCare reverted to
Medicaid:
* Over 300,000 individuals will lose their health insurance;
* Tennessee would lose federal participation in IMD funding and
premium match;
* County owned hospitals would experience a large increase in their
charity care and would look to local governments for financial assistance;
* Most hospitals would see an increase in unreimbursed charity and
indigent care;
* Any implementation of a Disproportionate Share payments would
require federal approval and an appropriation from the General Assembly;
* Health Care providers across the state would see an increase in
their charity care costs;
* Due to the requirement that enrollees be provided adequate notice
and due process rights, Tighe estimates that it will take 6-8 months to
screen all waiver enrollees for Medicaid and disenroll those that don't
qualify.
In addition to reverting to Medicaid, the following cuts would also have to
be made:
* Reduction of the PACE (Program for the All-inclusive Care of the
Elderly) waiver;
* Reduction of the statewide long-term care waiver;
* Reduction of the Senior/ADAPT waiver;
* Reduction of the general and skilled nursing facilities.
Tighe: "To say that this would be devastating to the state would be an
understatement."

Tighe also noted that it will cost the state $370 million of federal
matching funds should they implement this plan that causes 300,000 people to
lose health insurance.

Commissioner Elisabeth Rukeyser presented the impact on Mental Health should
the state revert to Medicaid:
* At least 20,000 Tennesseans with serious mental illness who are
currently in active treatment will lose mental health coverage;
* 301,200 additional Tennesseans lose mental health benefits;
* $165 million of federal revenue lost annually;
* Collapse of overall public and private mental health services
system;
* Increase of persons with serious mental illness in the jails and on
the streets.

Health Commissioner Fredia Wadley presented cuts to the Health Department:
* Increase of all health facilities fees;
* Reduction of Health Programs (Strike Out Stroke Project, Chronic
Renal Disease, Hemophilia Program, Epilepsy, Genetics, Residential Homes for
the Aged Reimbursement Program, Osteoporosis, Sickle Cell Program, Meharry
Graduate Dental Contract, Alcohol and Drug Program, Preventive Block Grand,
Breast and Cervical Cancer Detection, Family Planning, Traumatic Brain
Injury Program, Diabetes, Cancer Registry, Primary Care/Manpower Placement,
Tobacco Control, Laboratory Services, Tuberculosis, Dental, Local Health
Departments, Employee Health Clinic, Minority Health Grants and Minority
Applicant Pool System);
* Elimination of 153 positions, many of which are local.


Budget Hearings continue this afternoon with Mental Retardation, Human
Services and Children's Services.

NEWS ALERT FROM STATE HOUSE FINANCE COMMITTEE HEARINGS...JUNE 12

2002, 3:34
PM CENTRAL TIME...THE FOLLOWING ARE HIGHLIGHTS FROM THE ONGOING STATE HOUSE
FINANCE COMMITTEE HEARINGS ON THE "No New Taxes Budget" CURRENTLY BEING
DEBATED:

House Budget Hearings continued this afternoon with Mental Retardation,
Children's Services, Human Services and the Tennessee Commission on Children
and Youth.

Deputy Commissioner Richard Kellogg presented cuts to the Department of
Mental Retardation:
* Elimination of 3 investigator positions for non-class member
investigations unit;
* Reduction of equipment costs (vehicles for investigations);
* Elimination of Quality Assurance consulting contract; and,
* Elimination of "Home of Your Own" Project grant.

Commissioner Page Walley presented cuts for the Department of Children's
Service:
* Elimination of Tennessee Preparatory School (TPS);
* Elimination of 232 positions from the TPS; and,
* Elimination of 18 other positions within the Department.

Commissioner Natasha Metcalf presented cuts for the Department of Human
Services:
* Reduction of travel expenses.
Commissioner Metcalf noted that most of DHS programs are federally funded.
For that reason, the $93,000 that must be cut from her department have to
come from the discretionary part of her budget, travel expenses.

Director Linda O'Neal presented cuts to the Tennessee Commission on Children
and Youth:
* Reduction of 12 staff positions;
* Elimination of state funds from the Reimbursement Account;
* Reduction of Regional Councils on Children and Youth; and
* Reduction of Kids Count and Information Dissemination.

Budget Hearings continue tomorrow. On the agenda are: Courts, Attorney
General, District Attorneys, Public Defenders, Post Conviction Defenders,
TBI, Safety, Correction, Paroles and Military.

NEWS ALERT FROM TENNESSEE GENERAL ASSEMBLY
Date: Wed, 5 Jun 2002 10:44:55 -0500

NEWS ALERT FROM STATE HOUSE FINANCE COMMITTEE HEARINGS...JUNE 5, 2002, 10:44
AM CENTRAL TIME...THE FOLLOWING ARE HIGHLIGHTS FROM THE ONGOING STATE HOUSE
FINANCE COMMITTEE HEARINGS ON THE "No New Taxes Budget" CURRENTLY BEING
DEBATED:

State Education Commissioner Faye Taylor began by giving an overview of the
Department of Education appropriation budget:
* 93% - Basic Education Program
* 4% - Mandated Programs
* 2% - Discretionary
* 1% - Safe Schools

NOTE: $15 million was cut in August from the Discretionary Fund. Cuts in a
No New Taxes Budget would be in addition to this.

Programs to be eliminated:
* Holocaust Comission
* Extended contracts for teachers
* Driver Education Programs

Across-the-Board Reductions:
* Music Curriculum
* Drop-out Prevention Grants
* Touching the Lives of Children Grant
* York Institute
* Deaf and Blind Schools
* Vacant Departmental Positions
* High School Tests
* Assistance provided to low-performing schools

Remaining Cuts (approx. $373 million) must come out of BEP

Reductions to Local Schools:
* Basic Education Program - $373,160,000
* Extended Contracts - $25,400,000
* Driver Education - $1,700,000
* TOTAL - $400,260,000

Statewide Impact of BEP reductions:
Total $373,200,000

Property Tax
Average 2001 Tax Rate
$2.37
Weighted Tax Rate Increase to offset Education cuts
$0.42
Average Tax Rate Increase to offset Education cuts
$0.64
Average Percent Increase in Rate to offset Education cuts 27%

(low - $.08 in Carroll County; high - $1.96 in Richard City SSD in Marion
County)


Personnel Reductions
Total State and Locally Funded Positions 63,266
Total State and Locally Funded Lost 8,352
Percent State and Locally Funded Lost 13%

(low - 4 in Richard City SSD in Marion; high - 428 in Davidson County)



Commissioner Faye Taylor -
"There are no good choices and these are not projections. These are actual
numbers."

"We are going to have to go back to the way we did things 20 years ago."

NEWS ALERT FROM STATE HOUSE FINANCE COMMITTEE HEARINGS...JUNE 4, 2002, 4:10

NEWS ALERT FROM STATE HOUSE FINANCE COMMITTEE HEARINGS...JUNE 4, 2002, 4:10
PM CENTRAL TIME...THE FOLLOWING ARE HIGHLIGHTS FROM THE ONGOING STATE HOUSE
FINANCE COMMITTEE HEARINGS ON THE "No New Taxes Budget" CURRENTLY BEING
DEBATED:

Opening Remarks from House Finance Chairman Matt Kisber:

"This morning we will begin a process of working to come up with a budget
with no new taxes. Based on a sense that we are no closer to a revenue
solution than the last three years, we must now focus on our legal
requirement of having a balanced budget in place for the next fiscal year by
June 30. What we seek to do is to understand what program reductions,
program eliminations and across-the-board cuts will mean. It is my hope and
expectation that committee members will focus on discussion of these cuts."

After testimony from the Constitutional Officers, state Finance and
Administration Commissioner Warren Neel discussed the effects of the cuts
will have on the AmeriCorps program. Members of the committee requested
Commissioner Neel prepare a more detailed examination and present it to them
before the hearings are concluded.

The Department of Personnel then presented their list of cuts which include:
abolishing positions, discontinuing blood drive, reducing support staff,
reducing fee-revenue from training courses, and reduce program support for
Human Resource Management.

"Today we saw the effects of such drastic cuts on some of the internal
departments of this state," Chairman Kisber said. "Reducing a total budget
by 12.5% is not an easy task. People will lose their jobs and programs will
be cut. We have come to this point through a stream of unimaginable
circumstances, and we are now forced to look not at the cuts that ought to
be made but the cuts that have to be made."

Budget Hearings will continue tomorrow at 9am to discuss the development of
a No New Taxes Budget for K-12 Education.

Matt Kroplin
Democratic Caucus Press Secretary
www.tnhousedems.com
matt.kroplin@legislature.state.tn.us

State Funding Woes To Eliminate Award-Winning Educational Program

KNOXVILLE, TN (May 3, 2002) - State funding for the University of
Tennessee's award-winning educational program for parenting and consumer
education (PACE) is expected to be discontinued as of July 1.

Operated by the UT Agricultural Extension Service, with grant funds through
the Tennessee Department of Human Services, the PACE program employs 13
individuals at several locations across the state. Affected employees have
been informed that their jobs are being eliminated.

PACE program objectives included training government facilitators in
parenting and consumer education skills to help them move Families First
participants toward continual employment. Families First is Tennessee's
welfare reform plan that emphasizes work, training, and personal
responsibility.

Five of the 13 PACE employees will lose their positions, while seven will
be reassigned to other full-time positions within Extension's Department of
Family and Consumer Sciences. The remaining employee will be offered
part-time employment in another departmental assignment.

"All displaced employees will be informed of their opportunities to compete
for vacant positions within the University for which they are qualified,"
said Dr. Charles Norman, UT Dean of Extension.

PACE received the national Extension 2000 Award from the American
Association of Family and Consumer Sciences. The award recognizes
outstanding Extension programming.



Contact: Patricia Clark McDaniels, 865-974-7141
Dean Charles Norman, 865-974-7114

Sen. Kurita's online disclosure bill
passes Senate

March 20, 2002



Senator Rosalind Kurita's legislation to give the public Internet access to
campaign finance information was approved by the State Senate this week with
a 27-5 vote. Under the legislation, a state agency will be required to post
financial disclosures on a state web site.
Current law allows public inspection of campaign finance information at a
state office building in Nashville. However, interested citizens must show
a drivers license and complete an inspection request form which is later
forwarded to the candidate. Sen. Kurita said citizens have to "jump through
too many hoops" to get access to the public records.
"The public is best served by complete and open disclosure of all campaign
contributions to candidates and political organizations," Sen. Kurita said.
"Passage of campaign disclosure laws over the past several years was a good
first step. But, the current practice of locking those disclosure forms in
a poorly accessible state office building in Nashville has done little to
build public confidence in our electoral process. Posting campaign
contribution disclosures on the world-wide web truly gives citizens the
opportunity to inspect campaign finances."
Under the legislation, the state's Registry of Election Finance would
maintain the web site. The cost to the state is estimated to be minimal.
The bill is awaiting action by the House.

."

SENATE FINANCE COMMITTEE TO REVIEW CIGARETTE TAX BILL
February 26, 2002

NASHVILLE, Tenn. - Legislation sponsored by Senator Rosalind Kurita
(D-Clarksville), that would increase Tennessee's excise tax on cigarettes by
30 cents, today passed out of the Senate tax subcommittee to the full Senate
Finance, Ways & Means Committee.
"We are one step closer to helping Tennessee's children," said Sen. Kurita.
"We have an opportunity to truly change our kids' health for the better with
passage of this bill. Countless studies have shown that increasing the cost
of cigarettes deters children from smoking, and as a nurse I am all too
familiar with the harmful effects of cigarettes on Tennessee's citizens. I
know my colleagues feel the same way about the health of our children, and I
am hopeful that we can pass this meaningful legislation together."

At 13 cents, Tennessee currently has the seventh lowest cigarette tax in the
country. The bill would increase Tennessee's cigarette tax to 43 cents, the
national average. States that have increased tobacco taxes have all seen
teen smoking rates decline.
"To see the movement and community support we are getting on this bill is
very encouraging," said Sen. Kurita. "I am also pleased that 30 state
legislators have signed on as co-sponsors to the bill calling for a 30-cent
cigarette tax increase. This is a difficult battle that is a long way from
over, but it is a battle that we must win for Tennesseans".

February 6, 2002

Sen. Kurita: 'New health warnings for tanning bed use'


New regulations aimed at protecting consumers -- especially young consumers
-- from the dangers of tanning beds unanimously passed a key Senate
committee today. Sponsored by Senator Rosalind Kurita, the legislation
coincides with a study appearing today in the Journal of the National Cancer
Institute that confirms the link between tanning bed use and skin cancer.
"Research shows that tanning bed use doubles the risk of skin cancer,
especially among children and teens," said Sen. Kurita, a registered nurse.
"This legislation will establish new regulations requiring the posting of
warning signs, strict parental approval rules for minors and new record
keeping provisions."
Sen. Kurita said current regulations are inadequate considering the evidence
of increased risks for skin cancer. "It is extremely important that tanning
bed users, and parents of young tanning bed users, understand the
scientifically confirmed dangers associated with exposure to ultraviolet
radiation. Tanning bed operators will have new responsibilities for
protecting consumers under this legislation."
Key provisions of the legislation include:
* Requiring tanning bed operators to provide protective eyewear;
* Posting of warning signs outlining health dangers of tanning bed
use;
* Requiring parents or guardians to accompany children under age 14
and sign a written statement detailing the particular dangers of tanning bed
use by minors;
* Requiring teens between the ages of 14-18 to be accompanied by a
parent or provide a notarized permission statement.
* Requiring tanning bed operators to maintain records of signed
statement for at least two years.
* Failure of tanning bed operators to comply can result in misdemeanor
charges and civil penalties.
The bill moves to the full Senate for consideration.

PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Senator Rosalind Kurita
Pamela George
Office: (615) 741-2374*Home: (931) 358-2005

January 29, 2002

Senator Kurita's campaign disclosure bill
passes hurdle

Senator Rosalind Kurita's legislation to give the public easy access to
campaign finance information was approved by a key Senate committee. The
legislation requiring a state agency to post financial campaign disclosures
to a state web site passed the Senate State and Local Government Committee
today.
"The public is best served by complete and open disclosure of all campaign
contributions to candidates and political organizations," Senator Kurita
said. "Passage of campaign disclosure laws over the past several years was
a good first step. But, the current practice of locking those disclosure
forms in a poorly accessible state office building in Nashville has done
little to build public confidence in our electoral process."
Under the legislation, the state's Registry of Election Finance would
maintain the web site and the cost to the state is estimated to be minimal.
"Posting campaign contribution disclosures on the internet truly gives
citizens the opportunity to inspect campaign finances," added Senator
Kurita.

Tennessee politicians and media outlets negotiated an agreement that lets two
pool reporters cover state fiscal crisis meetings, but prohibits the
journalists from attributing quotes and proposals to specific legislators. The
Associated Press, Memphis Commercial Appeal and Nashville City Paper rejected Full Story AtGoMemphis: Local

PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Senator Rosalind Kurita
Pamela George
Office: (615) 741-2374*Home: (931) 358-2005


January 14, 2002

Sen. Kurita: 'Raising cigarette taxes will reduce teen smoking'


Senator Rosalind Kurita is filing legislation today aimed at reducing teen
smoking by raising the state's tax on cigarettes up to the national average
of 43 cents per pack. Currently Tennessee's cigarette tax is one of the
lowest in the nation at 13 cents.
"Research shows us that bringing Tennessee's cigarette tax up to the
national average would decrease the number of teenagers who begin to smoke,"
Sen. Kurita said. "We need to focus on protecting our children, not the
profits of tobacco conglomerates."
Sen. Kurita charged tobacco companies with manipulating citizens into
believing that low cigarette taxes protect Tennessee tobacco farmers. "The
facts are very different," Sen. Kurita said. "Even though tobacco companies
are selling more cigarettes than ever before, they are buying less and less
from American farmers as they opt to buy foreign-grown tobacco."
Sen. Kurita said the teen smoking problem in Tennessee needs to be
addressed. "Tennessee has the highest percentage of cigarette smokers among
public high school students in the United States. A recent U.S. Surgeon
General's Report, as well as numerous other scientific publications found
that increasing the price of cigarettes would decrease the prevalence of
cigarette use, particularly among kids and young adults."
As an additional benefit, Senator Kurita said the cigarette tax proposal
will generate more than $162 million of new revenue from cigarette sales in
Tennessee, according to estimates from the General Assembly's fiscal review
department. "According to Tennessee law, this money would go to public
education, grades K-12," Sen. Kurita said.