Comparisons

The Governor’s budget and the House Democrats’ budget includes a 40 cent/pack cigarette tax increase in addition to record new revenues. Therefore, they do have additional money for expenditures. The House Republicans’ budget is a “no tax” budget with no new taxes proposed. There is $1.5 billion in new available revenue for FY07-08 including $684 million recurring and $833 million in non-recurring. Also, the House Republican budget allows Tennessee to live within our means since it does not bust Copeland. Also, it does not provide funding for the pork projects. Also, the House Republican plan makes some cuts to the governor’s budget such as the $274,500 proposed new spending on Weight Watchers. Also, it has $60 million to push forward to next year as non-recurring funds for FY 08-09.

State Employee Pay Raises

State Employee Compression State Employee Classification Compensation Funds 401(K) Additional DAs and PDs Restore Highway Fund Sales Tax on Food

Additional Higher Education Capital Outlay Projects Tennessee Board of

Governor’s Plan

House Democrats

1% COLA pay raise, 2% bonus

3% COLA pay raises ($94 million/recurring above the governor’s plan)

House Republicans “No Tax” budget 1 % raise COLA pay raise, 4% bonus ($105 million nonrecurring above the governor’s plan, this gives state employees an extra $10.4 million over the House Democrats plan)

$26.8 million $10 million

Continue $40/month $40 to $50 a month existing match increase $13 million $32.8 million (nonrecurring) No reduction

$32.8 million (recurring) .5% reduction of grocery items ($40.7 million)

$7 million

$14 million non-

Continue $40/month existing match

$32.8 million (nonrecurring) 1 cent reduction of food sales tax (6 cents to 5 cents) ($81.5 million) $125.9 million (typo $125.9 million in their handout) $7 million

Regents TN Technology Centers equipment Community Enhancement Grants (“Pork” projects)

$0

recurring (in addition to the governor’s) $20 million nonrecurring, $100,000 per representative and $300,000 per senator $290 million above governor’s plan to fund BEP 2.0

Education k-12

$284.3 million in improvements (awaiting his budget amendment for BEP 2.0)

Agriculture Grants

Increase by $6 million

$21 million (for hay barns and wineries)

Rainy Day Fund

Increase by $36.6 million

Fast Track Spending

$2.2 million new recurring, $44.3 million new recurring

Increase by $216 million by June 30, 2008 (This must include putting overcollections for FY07-08 into the Rainy Day fund.) Increase by $10 million

$0

$330 million new dollars above last year for k-12 education, funds BEP 2.0 at 40% but has money available to fund it at 50% (if we exceed Copeland) Maintain current funding of $5 million Increase by $36.6 million

Reduces recurring by $10.9 million but adds $5 million in non-recurring