No WhiteWash!

There appears to be a little battle between the City of Kingsport, TN and Northeast State Community College.

Check out the link “College conflict: Potential Northeast State Johnson City campus distresses some Kingsport officials” from the Johnson City Press to get the City of Kingsport views on Northeast State Community College putting a satellite campus in Johnson City.  It sounds like to me that Mayor Phillips of Kingsport and his pal and fishing buddy, Keith Wilson, Publisher of the Kingsport Times-News are a little bit upset that the college would even consider going to Johnson City.

I guess Mayor Phillips feels frustrated that he is losing control since another pal and fishing buddy retired as President of Northeast State Community College.

My advice to Dr. Janice Gilliam, President of Northeast State Community College is that if she thinks this is the right direction for the college, then go for it.  Fight the influence of the “good old boys club” in Kingsport and the heavy-handed tactics that they will use to stop you.

It is interesting that the Kingsport Times-News published an article on this subject on January 9, 2011 at 12:00am. which gave a link to the Johnson City Press website.  But very shortly after publishing the article, it disappeared!  If one searches on “College conflict: Potential Northeast State Johnson City campus distresses some Kingsport officials”, the article can be found in the search, but you get Invalid article when you click on the link for the Kingsport Times-News.

Why did the Kingsport Times-News take the article down?  What did they want to keep quiet?

TriCites.com gives another view below without the input from Mayor Dennis Phillips and Keith Wilson.  Click on the link below for the entire article.

WASHINGTON COUNTY, TN — Northeast State Community College wants to open a campus in Johnson City and the Downtown Centre is among its options.

According to President Dr. Janice Gilliam, Northeast State does not have any more room for classrooms or parking at the school’s main campus in Blountville. Couple that with the fact that one-third of the college’s students come from Washington County, she says it only makes sense to open a campus there.

Read more via Northeast State to create Johnson City campus, Downtown Centre a possible site | TriCities.com.

Listed below are the November, 2010 Tennessee sales tax collections for the Metropolitan Statistical Area (MSA) listed below.

The laggard in monthly/yearly percent change sales tax collections is the Kingsport-Bristol MSA.

Chattanooga, Cleveland and Jackson are showing the greatest yearly percent increase and it appears that the involvement of the State of Tennessee to bring new industry to these areas are paying off.

Sales tax collections (thousand $) (Seasonally adjusted)

Source: Tennessee Advisory Commission on Intergovernmental Relations (TACIR)

via TaxingTennessee: Video: How to Fight Local Tax Hikes in Tennessee and WIN.

The 2010 Tennessee Pork Report is out.  Below are some examples of waste that is mentioned in the report.  Click on the link below to see the full report. 

Click here to see the media attention the report has received thus far.

State and local government officials in Tennessee should be scouring their budgets to slash spending in order to help restore some semblance of fiscal sanity. The Pork Report offers dozens of such examples, including:

• $15 million for an aquatics center in Kingsport;
• $3.95 million in excess fees collected by professional regulatory boards;
• $1.6 million washed away on the fairways of the 11 state-run golf courses in 2010;
• $1.5 million to help smokers kick the habit;
• $510,000 for dog parks in Knoxville and Knox County;
• $48,600 in incentives to bring film production to Tennessee; and
• $34,000 to advertise the U.S. Census in Clarksville.

KINGSPORT DROWNS ITSELF IN POOL DEBT (page 7)

In October 2009, the Kingsport City Council made a splash when it authorized $15 million for a new aquatics center. “Bathing suits have been getting moldy waiting on this thing to be built,” noted Alderman Valerie Joh in support of the project.  Kingsport residents should thank their grandkids when they bust out those moldy swimsuits and head to their new government-run swimming pool this summer, because the project was funded as part of a $41.1 million bond issuance by the city. This adds to the city’s enormous debt, which has doubled from $110 million to $218 million over the past five years. Whether they get to take a swim in the pool or not, this debt will undoubtedly be paid off by future generations of Kingsport residents.

Read the entire report at 2010 Tennessee Pork Report

NASHVILLE – Tennessee revenue collections continued to fall short of budgeted estimates in March. Finance and Administration Commissioner Dave Goetz reported today that overall March revenues were $776.5 million, which is $11.7 million less than the state budgeted.

“This marks the 22nd consecutive negative growth month for sales tax collections out of the last 27 months, starting with January 2008,” Goetz said.  “Sales tax collections seem to reflect a degree of renewed consumer confidence, but revenues continue to lag below projections. Until we see clear signs that the economy is recovering we will continue to make budget decisions based on what we’re experiencing in Tennessee.”

On an accrual basis, March is the eighth month in the 2009-2010 fiscal year.  The general fund was under collected by $8.7 million and the four other funds were under collected by $3.0 million.

Sales tax collections were $14.0 million less than the estimate for March.  The March growth rate was negative 0.87%. For eight months revenues are under collected by $211.4 million. The year-to-date growth rate for eight months was negative 5.29%.

Franchise and excise taxes combined were $8.4 million above the budgeted estimate of $122.6 million. For eight months revenues are over collected by $15.7 million. The year-to-date growth rate for eight months was 6.64%.

Gasoline and motor fuel collections for March decreased by 1.70%.  For eight months revenues are under collected by $16.9 million.

Tobacco taxes collections were $1.3 million over the budgeted estimate of $24.4 million. For eight months revenues are over collected in the amount of $1.6 million.

Year-to-date collections for eight months were $244.1 million less than the budgeted estimate. The general fund was under collected by $205.0 million and the four other funds were under collected by $39.1 million.

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.

The State Funding Board met on December 18, 2009 and adopted mid-year revised revenue ranges for 2009-2010. The revised ranges reflect growth rates ranging from negative 1.50% to negative 0.25% in total taxes, and negative 2.35% to negative 0.85% in general fund taxes.  Based on the consensus recommendation, the official budgeted estimates for 2009-2010 were revised in late December.

The revised estimates are reflected on pages A-70 and A-72 in the 2010-2011 Budget Document, and assumed an under collection in total taxes in the amount of $161.3 million, and an under collection of $153.2 million in the general fund.

The funding board met again in March of this year and adopted final revenue ranges for 2009-2010. The board’s consensus recommendation was to recognize lower growth rates than those adopted on December 18, 2009. The revised ranges reflect growth rates ranging from negative 1.77% to negative 1.29% for total taxes, and negative 2.31% to negative 1.78% in general fund taxes.

Based upon the funding board’s March recommendation the revised estimates for 2009-2010 now assume an under collection in total taxes in the amount of $258.9 million, and an under collection of $231.0 in general fund taxes.

Booklet Designed to Give Taxpayers, Lawmakers Simple Guide on Their States’ Rankings on 31 Different Tax and Fiscal Measures

The Tax Foundation has released its 2010 version of Facts and Figures, a pocket- and purse-sized booklet comparing the 50 states on 31 different measures of taxing and spending, including individual and corporate income tax rates, business tax climates, excise taxes, tax burdens and state spending. The booklet is edited by Tax Foundation Analyst Justin Higginbottom.

Facts & Figures: How Does Your State Compare? can be found online at http://www.taxfoundation.org/publications/show/2181.html. For a free copy of the booklet call (202) 464-6200 or email [email protected]

“As states recover from the recession and legislators attempt to balance budgets and stabilize revenue, it’s important to keep in mind that tax changes affect states’ competitiveness regionally and nationally,” said Tax Foundation President Scott Hodge. “Having accurate and timely information is vital to this discussion, and our annual Facts & Figures handbook provides an indispensable metric.”

States made many significant tax changes in 2009 – enough that the Tax Foundation last summer issued its first-ever mid-year update of Facts & Figures in the annual publication’s history.

California, Connecticut, Delaware, Hawaii, New Jersey, New York, North Carolina, Oregon and Wisconsin increased individual income tax rates, while Louisiana, Maine, North Dakota, Ohio and Vermont reduced them. States that increased sales taxes in 2009 include California, Massachusetts, Minnesota, Nevada and North Carolina, as well as the District of Columbia.

Fourteen states, the District of Columbia and Puerto Rico increased cigarette excise tax rates in 2009, and a number of states increased excise taxes on alcohol.

via The Tax Foundation – How Does Your State Compare? Tax Foundation Releases 2010 Facts & Figures Handbook.

NASHVILLE – The state’s fiscal year continues its trend of negative tax revenue growth, with tax collections falling below budgeted estimates again in December. Finance and Administration Commissioner Dave Goetz today announced that state revenue collections for December – reflecting November retail sales activity – were $766.7 million, which is $54.2 million less than the state budgeted.

“December tax collections represent the 19th consecutive month of negative sales tax growth,” Goetz said. “At the end of the fiscal year, on June 30, we’ll have to adjust for any under collection in the current fiscal year, and make sure our budget for fiscal year 2010-2011 reflects the revenue base available moving forward.”

On an accrual basis, December is the fifth month in the 2009-2010 fiscal year.

The general fund was under collected by $50.8 million and the four other funds were under collected by $3.4 million.

Sales tax collections were $16.6 million less than the estimate for December.  The December growth rate was negative 2.88%. For five months revenues are under collected by $138.6 million, and the growth rate is negative 6.65%.

Franchise and excise taxes combined were $29.5 million below the budgeted estimate of $143.8 million. For five months revenues are under collected by $5.4 million.

Gasoline and motor fuel collections for December decreased by 2.70% and they were $4.3 million below the budgeted estimate of $66.7 million.  For five months revenues are under collected by $9.9 million.

Tobacco tax collections were $5.6 million below the budgeted estimate of $25.7 million, and for five months they are $3.8 million above the budgeted estimate.

Inheritance and estate taxes were over collected by $2.6 million for the month.

All other taxes were under collected by a net of $800,000.

Year-to-date collections for five months were $169 million less than the budgeted estimate. The general fund was under collected by $147.1 million and the four other funds were under collected by $21.9 million.

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the second session of the 106th General Assembly in May of 2009. and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.

NASHVILLE – For the third consecutive month in the fiscal year that began July 1, state tax collections fell below budgeted estimates.  Finance & Administration Commissioner Dave Goetz today announced that state revenue collections for October were $698.2 million, which is 1.53% below October 2008 collections.  October collections reflect consumer spending in September.

“October is the 17th consecutive month in which sales tax collections have experienced negative growth,” Goetz said. “We are extremely concerned with the year-to-date negative growth in our tax collections, but we are committed to keeping the state’s budget in balance in a responsible manner during this extraordinary national economic downturn.”

“When the nation’s economy shows a strong improvement, Tennessee will likely follow, but there’s usually a good distance of time between national and state economic trends.”

On an accrual basis, October is the third month in the 2009-2010 fiscal year.

October collections were $31.7 million less than the budgeted estimate.  The general fund was under collected by $24.2 million and the four other funds were under collected by $7.5 million.

Sales tax collections were $38.6 million less than the estimate for October.  The October growth rate was negative 7.80 %. Year-to-date the growth rate is negative 8.47%.

Franchise and excise combined collections for October were $11.9 million, and they were $9.6 million above the budgeted estimate of $2.3 million.

Gasoline and motor fuel collections were $2.1 million more than the budgeted estimate of $71.8 million.  However, the sales tax allocation to the Transportation Equity Fund was a negative $7.8 million.  The net result was a shortfall in the highway fund estimate.

Tobacco tax collections for the month were over collected by $600,000, and October collections were $25.1 million.

Inheritance and Estate taxes were under collected by $4.6 million for the month.

All other taxes were under collected by a net of $800,000.

Year-to date collections for three months were $101.3 million less than the budgeted estimate. The general fund was under collected by $88.2 million and the four other funds were under collected by $13.1 million.

The budgeted revenue estimates for 2009-2010 are based on the State Funding Board’s consensus recommendation adopted by the first session of the 106th General Assembly in May of 2009, and are available on the state’s Web site at http//www.tn.gov/finance/bud/budget.html.

View Revenue Collections

Last night the Kingsport, Tennessee Board of Mayor and Alderman voted to borrow $41.1 million for various projects.  According to the Kingsport Times-News quote below, the total debt has doubled in the last five years.  I might add that this has occurred during Mayor Dennis Phillips terms as mayor and John Campbell as city manager.

With this bond issuance, Kingsport’s total debt has doubled in the past five years, from $110 million in fiscal year 2006 to $218 million in fiscal year 2010, according to city records. Kingsport’s general fund debt will increase from the current amount of $92.6 million to $103.4 million for fiscal year 2010, while total city debt will go from $173.5 million to slightly more than $218 million.

Read more via Kingsport BMA approves $41.1 M in bonds – Kingsport Times-News Online.

Things must really be in bad shape for the city because they are borrowing $200k to replace a roof on the Renaissance Center and financing it for 20 years.  Borrowing money to replace a roof should be a maintenance item that is planned for and funded from within a yearly budget.

It would not surprise me that Kingsport will be the subject of many discussions by other cities on Kingsport’s management practices or lack thereof. 

Mayor Phillips, when can we expect the property tax increase?

Below is the spending that was approved

Tennessee, California Have Highest Combined State, Average Local Sales Tax Rates

Tennessee, California, Washington state, Oklahoma and Louisiana have the highest combined state and average local sales tax rates, according to updated information released by the nonpartisan Tax Foundation today. On the other end of the scale, Delaware, Montana, New Hampshire and Oregon all have the lowest combined rates of 0 percent.

Click here for more information on sales taxes from the Tax Foundation