Just Some of the Facts
This Tennessean editorial notes some good news about the state's budget process, but alas the editorial is marred by the paper's continuing inability to really tell the whole truth regarding the state budget. The paper says that Bredesen "is considering opening budget meetings, where department heads map out their respective budget proposals," and rightly remakrs that "openness in the process would go a long way toward rebuilding trust."

Just remember: The Tennessean never found the previous governor's budget process to be untrustworthy - in fact, they swallowed the process and the lies hook, line and sinker for four years.

The editorial writers still can't tell the whole truth about the state budget. They write: "According to the governor, the state is looking at a $322 million shortfall, despite the record $933 million tax increase enacted last year. On top of that, the state shortfall for the next fiscal year could hit $500 million." Notice the subtle linkage between the shortfall and tax revenue. But the governor they praise for being trustworthy and competent recently said the cause of the shortfall this year is largely TennCare cost overruns, not a failure of the tax code to produce sufficient revenue. And, through December, the state is actually running a small surplus of revenue compared to the approved budgeted estimate.

The Tennessean, its longing for a state income tax unquenched and undimmed, wants readers to keep thinking the tax structure is to blame.

But this Memphis Commercial-Appeal editorial today is much more egregious. It just flat-out lies and blames the shortfall on the "failing tax structure."

Bredesen, has yet to find a magic wand he can wave over the budget problems created or exacerbated by the state's failing tax structure. ... The biggest tax increase in Tennessee history - a $933 million hike last year, primarily in the state sales tax - will not live up to expectations."

Lies piled on lies. The tax hike will bring in more than $1 billion in the next fiscal year, and even more as the economy inevitably improves. Combine that with Bredesen's willingness to make actual spending cuts now, and by the middle of his first term, Gov. Bredesen and the state of Tennessee will be enjoying a revenue surplus.