No WhiteWash!

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 publications@taxfoundation.org.

“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

State tax collections again fell below budgeted estimates in August, with sales tax collections recording negative growth for 18 of the last 20 months. Finance and Administration Commissioner Dave Goetz reported today that overall August revenues were $726.9 million, which is 5.74% below collections for August 2008. 

"The continued negative trend in tax collections requires us to continue to closely monitor revenues and adjust expenditures accordingly,” Goetz said.  “August sales tax figures reflect July consumer spending, and represent the first month of collections for the new fiscal year.

"We need to make sure we make adjustments to accommodate for the next several months so we keep the state’s budget in a balanced posture.”

On an accrual basis, August is the first month in the 2009-2010 fiscal year.

August collections were $28.2 million less than the budgeted estimate. The general fund was under collected by $30.5 million and the four other funds were over collected by $2.3 million.

Sales tax collections were $24.6 million less than the estimate for August.  The August growth rate was negative 8.21%.

Franchise and excise taxes combined were $279,000 above the budgeted estimate of $20.6 million.

Gasoline and motor fuel collections increased by 9.13% and were $5.2 million above the budgeted estimate of $68.2 million.

Tobacco tax collections for the month were under collected by $289,000.

Privilege tax collections were $1.4 million less than the budgeted estimate of $17.6 million.

Inheritance tax collections were $3.0 million below the budgeted estimate.

All other taxes were under collected by a net of $4.4 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.

via August Revenues | TN.gov Newsroom.

Sometimes elected officials get too big for their britches and need to brought back to reality. Below is information on a petition to have the citizens vote to repeal the sales tax hike in Hardin County, TN.

Kingsport, TN has a similar situation with the 1/4 cents regional sales tax that was voted on by the citizens to build the MeadowView Convention Center. The current convention center was paid off in 2007 and part of the regional sales tax money goes into the general fund to spend as they see fit. MeadowView Convention Center operates each year at a loss and about $1.3 million is used from regional sales tax fund to keep it operational. The Kingsport Board of Mayor and Alderman have voted against giving the regional sale tax back to the citizens.

In an effort that could yank the funding from a school construction and consolidation project, Concerned Citizens for Community Schools is filing a petition today with the Hardin County Election Commission for a referendum to repeal a 1997 sales tax increase.

Voters overwhelmingly approved the one cent hike after the Hardin County Board of Education published paid advertisements in The Courier touting it as the solution to the county’s long-term school building needs. The 1997 ads indicated the revenue would be used to renovate and expand the high school, and gradually address building problems at all the schools.

Instead, school and county officials broke ground last week for a program that shutters five schools and funnels their students into two new 550-student elementary schools in or near Savannah.

“The county said if you give us this money, we’ll spend it this way. Ten years later they forgot the promise they made and now they want to spend our money in ways we do not support or agree with,” said Selmer attorney Christopher Donovan, representing Concerned Citizens.

According to the Hardin County Election Commission, about 1,600 signatures of registered Hardin County voters are needed to get the measure on the ballot.

Concerned Citizens says the petition contains the names of 3,000 residents from all parts of the county.

via courier anywhere.com.

See also the following links:

• Hardin County Citizens Petition to lower sales tax
• Petitions
• Cattails in Kingsport not going as planned

Update:  Hawkins County commissioners met Monday night to try to finalize next year’s budget, which included a substantial property tax hike.  The Commission voted 16-4, with one abstaining, against the budget.

The Budget Committee will meet Tuesday morning to try to iron out a compromise.  The budget must be finalized and approved by October 1, and commissioners say a property tax hike is still on the table.

via Hawkins County Property Tax Hike Remains Up In The Air | TriCities.

Hawkins County is considering a 22 cent property tax increase which will put a wrinkle into the City of Kingsport plans for funding the King Medical School.  Kingsport has suggested that it would take about a 20 cent tax increase to fund its portion of the medical school.  The problem for Kingsport is that its city limits extend into Hawkins County and Kingsport has a tax rate for its part of Hawkins County. A Hawkins County rate increase of 22 cents and if Kingsport raises its rate 20 cents for the medical school would make the area unattractive for future development and a hardship on Hawkins County citizens.

The Kingsport portion of Hawkins County would have a rank as the 10th most expensive tax rate in Tennessee if the rate is increased 22 cents and Kingsport did not raise the rate.

I am against tax-payer funding of the King College Medical School.  See previous posts

Table 1. below shows the current tax rates for the county and the cities within the county.

Table 2. shows the proposed tax increase for the county (highlighted in yellow) and the 20 cent increase for the part of Hawkins County that is in the City of Kingsport.

If you need help on how to figure your property tax bill go the the following link.  How to Figure Your Property Tax Bill

ROGERSVILLE – Hawkins County commissioners will be considering a $91 million budget and 22-cent property tax hike when they meet Monday.

The property tax increase is estimated to generate slightly more than $1.6 million in additional revenue, with $880,000 of the new money earmarked for the sheriff’s office and jail budgets.

Under the spending plan, the sheriff’s office would add four new deputies and a secretary, with a jail administrative position and 19 additional guards hired to staff the new jail facility.

The commission meets at 7 p.m. in the main courtroom of the Hawkins County Courthouse.

Information about the meeting will be posted Monday night.

via The Rogersville Review – News Story – Budget, tax hike on Hawkins Commission agenda.

Table 1.

Table 2.