“Tennessee Solution” a Viable Option?

Back in April, when Governor Haslam betrayed teachers and state employees and took their proposed pay increase out of his budget, a bipartisan group of legislators proposed what they then called the Tennessee Solution.

The plan had a price tag of $90 million and used reserve funds to pay out a one time bonus to teachers and state employees. The plan also called for a 1% raise to be provided only if state revenues exceeded budgeted targets.

By doing so, the plan put money in the pockets of teachers (essentially delivering a portion of Haslam’s promise) and also offered hope of more funds should the state find the money. Essentially, it said that if there is extra money, the first priority for those funds should be our teachers.

Ultimately, Haslam’s forces prevailed and that idea was rejected.

Now, there’s news that August revenues were far above projections. More than $30 million ahead, to be specific. The increase is due to the highest sales tax collections in more than two years. And, despite a negative growth number for non-corporate taxes, collections there were $6.1 million over budget.

If this type of revenue growth continues, delivering on the Tennessee Solution would be very doable. Except that the legislature decided against it at Haslam’s urging.

Yes, it’s still early in the revenue cycle, but making education a priority was the right thing to do in April and early revenue numbers show it fiscally feasible as well.

Next up, tomorrow’s Education Summit in Nashville. Where Haslam and friends should be talking about how best to use any unexpected revenue growth to invest in Tennessee’s public schools.

For more on Tennessee education politics and policy, follow @TNEdReport

Tennessee Solution?

In response to Governor Bill Haslam’s betrayal of his promise to improve teacher pay, a bipartisan group of lawmakers in the House is proposing a series of budget amendments they are calling the “Tennessee Solution.”

The plan costs $90 million and provides teachers and state employees a one-time bonus and adds a 1% raise to that bonus if state revenues reach certain targets.

Here are some details provided by the Tennessee Education Association:

Amendments to the governor’s budget plan will be presented this Thursday. The bipartisan plan includes a raise and bonus for teachers. Please contact your legislators immediately to show support for this plan.
The governor’s proposed changes to the budget – including the removal of his promised raise to teachers – passed both the House and Senate Finance committees yesterday. It is scheduled for floor votes this Thursday. Please contact your legislators immediately to ask for their support of the plan to reinstate the pay increase for teachers and state employees.

The bipartisan group of House legislators plan to propose two amendments they are calling the “Tennessee Solution.” The amendments include the following:

  • One percent raise for teachers and state employees, contingent upon revenue collection. A portion of the raise will be included in the current budget to be paid-out if and when revenue numbers reach the total required amount for the raise. 
  • One-time bonus for teachers and state employees, possibly for employees with three or more years of service

 

While it seems unlikely the raise portion of the plan will be met unless underlying revenue concerns are addressed, the plan does provide a one-time bonus that would, at least for this budget cycle, boost teacher and state employee pay.

A more ambitious plan would have addressed long-term revenue concerns and/or provided for cuts in other departments in order to fund investments in education.

As the plan details became available, the House broke into Caucus meetings with Republican leadership stressing that the conservative stance was to oppose the “Tennessee Solution” and support the betrayal of Tennessee’s teachers and state workers.

A vote on the proposed amendments is expected Thursday.

For more on Tennessee education politics and policy, follow @TNEdReport