Tennessee Had Big Surplus Last Year, Too
Gov. Phil Bredesen has revealed that Tennessee ended the last fiscal year with a $150 million surplus. Bredesen says more than $90 million of the surplus was due to a one-time gift from the federal government approved earlier this year to help financially strapped states., but about $59 million of the surplus was the result of spending restraint and higher-than-expected tax revenues. Amazing - because for four years before Bredesen took office, we Tennessee taxpayers were told that the state faced endless shortfalls if we didn't accept an income tax. We Tennessee taxpayers were told that the legislature simly could not cut spending enough to balance the budget. Yet here we are, no income tax, and the budget is balanced and the state - having ended last fiscal year with a sizeable surplus, is already rolling up another surplus this year.

UPDATE 11/18: The Tuesday Tennessean says the actual surplus from last year is $156 million, with $96 million being that one-time federal gift and $60 million being the result of less spending and higher-than-expected tax revenue. The paper also notes that, three months into this fiscal year, Tennessee has a $27 million surplus of revenue. The story also reports on the ongoing budget hearings in which Gov. Bredesen is seeking additional spending reductions.