Bresdesen Remarks on End of the Legislative Session

NASHVILLE - Governor Phil Bredesen today commended members of the 106^th Tennessee General Assembly as they concluded their business following approval of Bredesen’s revised Fiscal Year 2009-2010 budget. The $29.4 billion state budget, of which $12.1 billion is state dollars, represents an overall decrease of 1.3 percent from FY 2008-2009 and a 10.1 percent reduction in state appropriations from revenues and reserves.

 

“This was a difficult budget to craft and navigate through, but I am pleased the General Assembly ultimately passed a budget that largely reflects the plan I outlined in March,” Bredesen said. “Just like families across the state, government has to make difficult decisions and sacrifices during these times. This budget gives us the tools we need to continue managing through this economic downturn, and I appreciate the efforts of the members of the General Assembly and its leaders in getting this budget passed.”

 

In March, Bredesen outlined a multi-year budget proposal for utilization of one-time federal funds provided by the American Recovery and Reinvestment Act within the framework of an unprecedented downturn in state revenues. In late May, as revenues continued to deteriorate, Bredesen recommended additional savings with a plan that also forestalled some of the most painful reductions in state services and delayed the implementation of staff reductions.

 

Highlights of the 2009-2010 budget include these administration priorities:

·         Protect education by fully funding the Basic Education Program, the state’s funding formula for K-12 education;

·         Maintain Bredesen’s commitment to funding voluntary Pre-K with recurring dollars;

·         Preserve $157 million in essential capital outlay projects for higher education by utilizing bonds as their funding source to preserve cash;

·         Provide an additional $11.6 million for new capital maintenance projects on higher ed campuses;

·         Fully fund economic development projects currently underway, including Wacker Chemie AG in Bradley County, Hemlock Semiconductor in Montgomery County, and Volkswagen Group of America in Hamilton County;

·         Provide for development of the Haywood County megasite in West Tennessee, including a five-megawatt 20-acre solar farm to serve as a demonstration tool as part of Bredesen’s Volunteer State Solar Initiative to advance job creation, education, research and renewable-energy production in Tennessee;

·         Ramp down spending in the discretionary and non-BEP areas of the budget to achieve a reduction of approximately 12 percent on average at the end of the four-year period; and

·         Utilize bonds under a four-year plan to fund bridge replacement and repair. 

 

“This budget keeps us on a multi-year path to preserve budget stability, maintaining healthy cash reserves while ramping down state spending to achieve continued balanced budgets that match recurring revenues to recurring expenses,” said Bredesen. “It also reflects the commitment to stewardship that is so personally important to me and that I believe Tennesseans deserve from their elected leaders.”

 

Stewardship was the theme of Bredesen’s March budget address to lawmakers, in which he stressed the importance to him of ensuring the state is left in good shape – financial and otherwise – for his successor and the next General Assembly despite current economic challenges.

 

Other accomplishments of the legislative session include adoption of the Tennessee Clean Energy Future Act of 2009. Bredesen worked with a bipartisan group of legislators to design sweeping legislation designed to make the Volunteer State a national leader in energy efficiency and clean energy technology.

 

The Clean Energy Future Act requires state government to lead by example with improved energy management of its buildings and passenger motor vehicle fleet; Encourages job creation in the clean energy technology sector by making qualified businesses eligible for Tennessee’s existing emerging industry tax credit; and promotes energy efficiency in newly constructed homes with a limited statewide residential building code and expanding eligibility for federal funds used to weatherize existing homes in low-income areas.