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.