The Secret Surplus
State Sen. Curtis Person, a Memphis Republican representing the 1st District, has issued the following letter detailing his growing suspicion that, far from being broke, the state in fact is secreting large surpluses and unspent funds by moving them into asset accounts that can't be touched, and how Sundquist administration officials aren't willing to be very forthcoming about it.

Sen. Person writes:

Dear Friends:

Recently, I began searching for answers to accounting practices that affect the use of surplus funds. Apparently, many state departments and agencies are taking surpluses at the end of a budget cycle and transferring them on paper into asset accounts. This appears to be a standard practice and once the funds are placed in asset accounts they become investments and do not appear as taxpayer dollars in the budget for the next fiscal year. This is a legal accounting practice; however, I believe any and all surplus funds belong to you, the taxpayers of Tennessee. Surpluses should be returned to the General Fund so they can be used as revenue or rebated to you. They should, at the very least, be applied to budget shortfalls before we ask the citizens of Tennessee to pay more taxes to fund state government.

I have written two letters to our Finance Commissioner, Warren Neel, asking for specific information regarding surplus funds in accounts labeled "Designated Reserves" and "Undesignated Reserves." To date, I have not received satisfactory answers from him. I addressed this matter in a caucus meeting and twice on the floor of the Senate. Each time I asked the members to research the use of these funds. So far, my colleagues have not responded.

I inquired and received a response from John Morgan, our State Comptroller. However, it is vague and claims it will take additional time for his staff to provide answers to my inquiry.

If there is truth to the information I have received regarding the departments and agencies hoarding taxpayer funds to cushion their own excessive spending, I want a thorough, independent audit of our accounting practices with the complete report published for every citizen to read. The lack of responses and specific answers regarding reserve funds causes me a great deal of concern and emphasizes the immediate need to question accounting practices being used by the State of Tennessee.

Now, I am asking you for your help in this matter. Please contact your Senators and State Representatives and ask them to demand answers to the use of surplus and reserve funds that are in reality your money!

I have no idea how much money should be available from these account overages to apply toward funding our State. However, I do know that this money belongs to the taxpayers of Tennessee. If there is any amount at all in any reserve funds anywhere, the right thing to do is to use it wisely as you have entrusted us to do.

Sincerely,
Curtis Person, Jr.
State Senator

My Comments: First, thanks to Gail Keasling for forwarding Sen. Person's letter to me. Second: This letter needs to be spread across Tennessee, via email, fax and this web site. If you would like a copy of the letter in a Word file on Person's legislative letterhead, email me and I'll forward it to you. My email address is in the 'about this site' box in the right side column. Third: if Sen. Person is really expecting honesty and transparency from the Sundquist administration, he's likely to wait a long time.