sign in sign up
<<
Home , Andy Holt (politician), Antonio Parkinson, Beth Harwell, Bill Haslam, Dolores Gresham, Glen Casada

TennesseeThe Journal The weekly insiders newsletter on government, politics, and business Vol. 45, No. 5 February 1, 2019 High-growth counties struggle to find school funding sources Finding money to build more schools in counties ignation would require two-thirds approval by the experiencing rapid population growth has been an issue commission or city council. that has vexed Tennessee officials at the state and local It’s unclear how much appetite lawmakers from levels for decades. other areas of the state would have for creating a special Voters in usually tax-averse Williamson County last funding mechanism for just a handful of Middle Ten- year overwhelmingly approved hiking the local option nessee counties, so supporters may tweak the qualifica- sales tax by half a percentage point to raise about $60 tion threshold to let the bill apply to more districts. million over the next three years to pay for school con- The state’s largest districts in Nashville and Shelby struction. But in Wilson County, a similar effort was County, which are currently suing the state over what rejected by 52% of the voters, leaving officials scratching they call inadequate funding, would not be covered in their heads about how to meet demand for classrooms. the legislation as introduced, though that could change Some counties like Rutherford and Williamson have as well. The advantage of the sales tax approach is that turned to fees imposed on new home construction to the money wouldn’t have to be funneled through the help cover the increased education costs associated with state’s complex Basic Education Program formula, more people moving to those areas, but those are fought which tends to favor smaller school districts. bitterly by home builders and Realtors, who argue the Prickly politics. Municipal and county govern- extra fees unfairly inflate prices. ments trying to cope with growing education costs have Developers in Williamson County want a judge to limited options when it comes to generating new reve- throw out a $2-per-square-foot educational impact fee nue. Tax bills requested by local officials were once con- in a case that had been headed for a summary judgment sidered routine in the General Assembly, and legislators hearing last month. But Circuit Judge James Martin from outside the affected city or county almost always rescheduled those arguments until Feb. 25. Meanwhile, approved what colleagues proposed on behalf of com- nearly $10 million collected under the scheme has been munities in their districts. held in escrow until the case is decided. But that started to change in the mid-1990s, when Legislative fixes. A bill last year seeking to redirect ads began to be run against sitting lawmakers claiming up to $7 million in locally collected state sales taxes to they had voted hundreds of times to raise taxes. That school districts posting growth of at least 250 students count would invariably include the numerous routine annually since 2014 (that would be Montgomery, Ruth- votes authorizing city councils and county commissions erford, Williamson, and Wilson counties) failed to gain to enact hikes. As such, lawmakers from one end of the traction. A $30 million fiscal note didn’t help. state could find themselves under attack for voting to A new version introduced this year might not ordi- allow another town hundreds of miles away to decide narily merit a second look, but this time its Republican whether to impose a hotel-motel or wheel tax. sponsors — Sen. Jack Johnson of Franklin and Rep. Nervous incumbents began abstaining — or even vot- of Cottontown — have some addi- ing against — local tax bills. And then newly-elected tional clout: Both were elected majority leaders of their Republican Gov. made it his policy to let respective chambers before the start of the session. local tax bills become law only without his signature Under the new proposal, a designated “rapid growth (causing then-House Speaker and other school district” would receive up to 2% state sales taxes. Democratic leaders to go through the roof). collected in the county. The annual amount would be Sundquist uttered one of the most memorable lines capped at $7 million and earmarked for school-related of his eight-year tenure amid that dispute when he debt service or capital improvements. Seeking that des- defended his hands-off approach by telling reporters he

THE TENNESSEE JOURNAL (ISSN 0194-1240) is published weekly except for one week in June, one in September, and Christmas week by M. Lee Smith Publishers®, a divi- sion of BLR®,100 Winners Circle, Suite 300, Brentwood TN 37027, 615/373-7517 or 1-877-826-5297. Periodicals postage paid at Franklin TN and at additional mailing offices. POSTMASTER: Send address changes to THE TENNESSEE JOURNAL, P.O. Box 5094, Brentwood TN 37024-5094. Copyright 2019 M. Lee Smith Publishers, a division of BLR. Photocopying or reproducing in any form in whole or in part is a violation of federal copyright law and is strictly prohibited without the publisher’s consent. Editor: Erik Schelzig ([email protected]) • Vice President/Legal: Brad Forrister • Editorial Coordinator: Savannah Gilman was “irrelevant to the process” (a phrase that is now Casada’s office clarified that the rules apply only to widely misremembered as describing his pariah status legislators serving on the committees in question and among fellow Republicans after he proposed the intro- that audiences (and the media) were not covered by the duction of a state income tax in his second term). ban unless they are “disrupting the legislative process.” The local tax issue has only become more prickly as The issue was further muddied when word came Republicans began their march from being the bomb- down that livestreaming could be banned from the throwing minority to the governing supermajority in pubic galleries in the House chamber. But when Rep. both chambers of the General Assembly. (R-Lancaster) used the opportunity Handing it off to locals. Lawmakers in 2006 of leading the chamber in prayer on Thursday morning passed a bill enabling governing bodies in high-growth to break into song, several members lifted their phones counties to impose an “adequate facilities tax,” which to capture the moment. So apparently the recording ban can only be used to pay for school construction, includ- doesn’t apply to the House floor. Stay tuned? ing debt. Previously, those taxes could be enacted only Know when to furl ’em. Gov. Bill Lee’s adminis- through private acts passed by the General Assembly. tration will no longer issue “flag letters” to raise objec- That power was shifted to local governments under tions about legislative proposals pending before the the new law, and restrictions on increases — no more General Assembly. The letters have long chafed law- than 10% every four years — were imposed on all ade- makers, who found them heavy-handed. Sometimes quate facilities taxes. The law was limited to counties they were also duplicative, as often more than one state that met population growth thresholds, and initial taxes agency would register concerns in separate letters, mak- were capped at $1 per square foot of residential space. ing sponsors feel like the executive branch was piling on. Too much, too soon. The Bedford County Com- Under the new policy, Lee administration liaisons mission took a preliminary vote last month to increase plan to meet personally with sponsors to discuss con- its adequate facilities tax from the $1 adopted when the cerns. Weekly lists of flagged bills will also be produced new state law was enacted in 2006 to $1.33 going for- for legislative leadership in the interest of transparency. ward, the Times-Gazette of Shelbyville reported. But the Heartbeat bill. Lee campaigned for governor on a county’s financial management committee last week staunch pro-life platform, so it comes as little surprise voted to call for that step to be rescinded after the Mid- that he agrees with the concept of a bill introduced by dle Tennessee Association of Realtors raised strong Rep. Micah Van Huss (R-Jonesborough) seeking to objections to the hike. make it a crime to perform or obtain an abortion after a The group argued the county fell just short of popula- fetal heartbeat is detected. tion growth rates required to qualify for the increase and The speakers of the House and Senate declared their that state law allows for up to a 10% hike every four support for the measure despite concerns about its con- years — not the 33% increase the commission had envi- stitutionality raised over previous versions of the bill by sioned implementing in one fell swoop. the attorney general’s office and similar state laws run- Now what? While Lamberth and Johnson will ning into legal trouble elsewhere around the country. carry Gov. Bill Lee’s legislative agenda in their roles as Lee appeared undaunted by any legal challenges, tell- majority leaders, they are quick to stress their school ing reporters he will “support any bill that reduces the funding proposal is not among the new governor’s ini- number of abortions in the state” and he will leave it to tiatives. Though they hope to gain a sympathetic ear the courts to decide “whether it’s constitutional or not.” given Lee’s roots in Williamson County. Attorney general. Proposals to amend the Ten- Legislative roundup nessee Constitution to change the way the attorney gen- eral is selected are back after failing last year. Senate A failure to communicate over live- Republican Caucus Chairman (R-Kingston) streaming committee meetings and Rep. (R-Chattanooga) want to give the During legislative debates last year about efforts to General Assembly the power to reject the person the legalize medical marijuana and reform criminal justice state Supreme Court nominates for the position. laws, Rep. (D-Memphis) kept his Currently, the members of the state’s highest court constituents informed by livestreaming committee (who are appointed by the governor) select whoever meetings via his smartphone. Some Republican mem- they want to serve as attorney general, a unique system bers didn’t like it, so this year House Speaker Glen nationally. The earliest a proposed constitutional Casada (R-Franklin) has given committee chairs the amendment could make it on the ballot would be in power to ban members from broadcasting meetings via 2022, the same year current state Attorney General apps like Facebook Live. ’s eight-year term comes to an end. Several chairmen, many of them new to their posi- Meanwhile, a bill filed by Rep. Bill Dunn (R-Knox- tions of power, took the speaker up on his offer. But the ville) would give the speakers of the House and Senate rollout was mangled by a general lack of tech savviness — or a majority of the members of both chambers — the that left many observers with the mistaken impression power to intervene in any legal proceeding defending that all third-party recordings would be prohibited the constitutionality of statutes challenged in court. The during committee hearings. speakers would be considered to be acting as “an agent Tennessee News Digest ● Electrolux plans to shutter its Mem- State’s operations in Athens, along with being made with the help of $1 million in phis plant, which employs 530 people, in UT Extension services. The site is located incentives from the state of Tennessee. 2020 and combine all U.S. production at across the street from the Denso auto The series will include footage from Bris- its Springfield facility in Robertson parts plant in the city. tol, Knoxville, Memphis, and Nashville. County. The appliance maker received an ● Nashville’s new Major League Soccer ● Gov. Bill Lee issued an executive estimated $188 million in incentives to team will join the league in 2020 and order Friday to halt all new regulations build the Memphis plant in 2011. play at , the home of the across state agencies for 90 days to ● Gov. Bill Lee is weighing a proposal to NFL’s , until its 30,500- assess their costs. The moratorium is build an $18 million facility in McMinn seat stadium is completed in 2021. twice the length of a similar freeze County to house the Tennessee College ● Filmmaker Ken Burns’ upcoming doc- imposed by his predecessor, , of Applied Technology and Cleveland umentary series about country music is when he first took office in 2011.

of the people,” and the state would cover any legal costs Judicial redistricting. Lundberg is also taking they incur in the process. another run at judicial redistricting, an effort the House Lawmakers hired outside council for a lawsuit seek- killed in 2013 despite — or perhaps because of — the ing to block the federal refugee resettlement program. support of then-Senate Speaker . The legal They lost the case last year and are now appealing. establishment was wary about the earlier bid to over- haul judicial districts for the first time since 1984. Proton therapy. Former Gov. Bill Haslam last year vetoed legislation seeking to require the state But after various concessions, Lundberg (then a employee health insurance program to cover hypofrac- member of the House) and Ramsey were able to secure tionated proton therapy, an alternative cancer treat- endorsements from the Tennessee Judicial Council, ment. The bill had passed 82-13 in the House and 29-1 Trial Judges Association, and Bar Association, though in the Senate, but Haslam said in his veto message that elected prosecutors and public defenders were opposed. the bill circumvented the state’s established process for The plan would have combined two districts in deciding insurance coverage for state workers. northwestern Tennessee and added Cannon, Warren, There’s a new version of the bill on tap this year, and Van Buren counties to the tiny standalone district sponsored by Sen. (R-Knoxville) currently made up of just Coffee County. Fast-growing and freshman Rep. (R-Hixson). The legis- Rutherford and Williamson would have become their lation would cover the therapy for state workers at no own single-county districts under that plan. Ramsey more than the cost of traditional radiation. Lee told and Lundberg had originally hoped to give all 12 coun- reporters he’s aware of the new effort and said he’s ties with populations of more than 100,000 their own working on learning “everything there is to know” about judicial districts, but eventually backed off over con- the issue before taking a position. cerns about the ripple effect of wholesale changes. Prisoner deaths. Sen. (R-Spring- The House ultimately voted 66-28 against the 2013 field) filed legislation to require the state Department of judicial redistricting plan in a heated floor session. Correction to report the death of any inmate to their Those opposing the plan included 39 Republicans, all state representative and senator within five days, down 26 Democrats, and one independent. from the current 10-day limit. The Advisory Task Force on Composition of Judicial Scooter mania. Dockless electric scooters have Districts was created last year, and Senate Speaker taken some areas of the state by storm. That doesn’t Randy McNally (R-Oak Ridge) and then-House Speaker mean everyone is happy about them being ridden and (R-Nashville) appointed its 11 members. parked on city sidewalks. Senate Education Chair- The panel is chaired by Chancellor Telford E. Forgety of woman (R-Somerville) has filed a bill Dandridge, and its members include District Attorney to require school boards to provide instruction about General Russell Johnson of Loudon, a former Republi- scooter safety if they are used nearby. can lawmaker; Shelby County Chancellor Jim Kyle, a Small beer. Brewers making less than 50,000 gal- former Democratic state senator; and fellow Memphian lons (or about 1,600 barrels) of beer per year could dis- John Ryder, a prominent Republican lawyer. tribute their own products within a 100-mile radius Lundberg’s legislation would require the judiciary under legislation introduced by Sen. (R- committees of the House and Senate to hold at least one Bristol), who says the bill is aimed at bringing craft joint public hearing about proposed changes, and for brewers into parity with state wineries. the legislature to adopt or reject the plan before the end Craft brewers are already allowed to distribute up to of the two-year session in 2020. 25,000 barrels of their products through their on-site But even if lawmakers pass the bill, don’t expect any taprooms and to retailers within their home counties. action soon. The task force has four public meetings When they sell their products at the brewery, they avoid scheduled across the state starting in March and run- having to pay the $35.60-per-barrel wholesale tax (the ning through mid-June, meaning any recommenda- equivalent of $2.58 per case) that is otherwise directed tions won’t likely be ready until the second session of the back to the city or county where the beer is sold. 111th General Assembly. Tennessee Notes & Quotes ■ Former Gov. Bill Haslam was spotted in the U.S. Frank Niceley (R-Strawberry Plains) during a Sen- Senate for meetings on Thursday. The Republican is in ate Transportation Committee hearing. Washington as part of his fellowship at the Sine Insti- ■ “Well, did you get your shoes wet walking out of the tute of Policy & Politics at American University. Haslam river?” — TDOT Assistant Commissioner Paul Deggs has said he will make up his mind about a bid to succeed in response to Niceley’s GPS misadventure. U.S. Sen. (R-Maryville) this spring. ■ Shelby County Republican Party Chairman Lee ■ “Memphis is to Nashville as Vietnam is to China.” — Mills will not seek another term. The party suffered big FedEx Logistics CEO Richard W. Smith at a recep- losses in local elections in the state’s largest county last tion hosted by the Shelby County legislative delegation year amid a blue wave, which failed to materialize in following Bill Lee’s inauguration as governor. other parts of the state. In one primary election curios- ■ The Memphis Flyer’s Jackson Baker, who was on ity, Shelby was one of just four counties carried by for- hand for the event, noted it was a bit of an awkward mer U.S. Rep. Diane Black in her bid for the analogy given that Smith’s father, FedEx founder Republican gubernatorial nomination (albeit by just 55 Fred Smith, served in Vietnam as a Marine Corps offi- votes over Bill Lee). cer. Presumably the younger Smith was referring to the ■ Abbi Sigler, communications director for Republi- more recent history of Vietnam’s rapid economic devel- can ’s successful U.S. Senate cam- opment in the shadow of its much larger neighbor (and paign against Democrat last year, has certainly not to the longstanding suspicion and enmity joined the Baker Group, the political and corporate con- between the two countries that endures to this day). sulting firm founded by Ward Baker. ■ The FedEx board voted this week to change its retire- ■ Annette McDermott, a former Bredesen cam- ment policy so Fred Smith can remain the company’s paign staffer, has been named director of communica- chairman and CEO beyond his 75th birthday this year. tions at Cooley Public Strategies, the pubic relations ■ “Supreme Court Rule 46 requires Century font, 14 firm founded by Dave Cooley. point — applies to e-filed briefs, including footnotes. It’s ■ The Nashville Metro Council is scheduled to vote cutting edge! Century 14 pt = Happy Judge.” — State next week on whether to censure former Mayor Megan Supreme Court Justice Sharon Lee issuing a Barry more than a year after she stepped down in the reminder on Twitter about formatting rules adopted wake of revelations she had an affair with her police by the state’s highest court last summer. bodyguard. A censure would be a largely symbolic ges- ■ This 10.3-pt text is printed in Georgia typeface. Hope ture and carry no legal ramifications for Barry, whose we’re not making too many judges squint in anger. political future remains a subject of great speculation. ■ Gov. Bill Lee has been invited by U.S. Rep. Chuck ■ “There’s absolutely no support for recreational use Fleischmann (R-Chattanooga) to be his guest at Pres- [of marijuana] in my district, which is a very rural East ident ’s State of the Union address. Tennessee and Upper Cumberland district, mind you.” The speech scheduled for Wednesday had been put off — State Sen. Ken Yager (R-Kingston). because of the federal government shutdown. ■ “I don’t know any pot smokers in Kingston.” — ■ “We’re going to run this like a benevolent dictator- Yager, when pressed whether opponents to legaliza- ship.” — Chairman (R-Collierville) tion include current weed-consuming constituents. at the first meeting of the new state House Facilities, ■ Reporter Joey Garrison, who has covered politics Licensure & Regulations Subcommittee. and government for the The Tennessean for six years ■ House Speaker (R-Franklin) has (and for the defunct City Paper before that), has been named Cade Cothren as his chief of staff. Scott hired as USA Today’s Boston correspondent. Gilmer, who held that position for former Speaker ■ “The trains have to run on time, as many subcommit- Beth Harwell (R-Nashville), will serve as director of tees and full committees as we have right now in the operations. Holt Whitt is the director of legislation, House. I’m not the engineer of this train. That would be and Caroline Bonner will be his deputy. Speaker Casada. And I’m also not the conductor.” — ■ The release announcing the staff changes touts State Rep. (R-Dresden), the new chairman Cothren, 31, as being the “youngest person to serve in of the House Finance Subcommittee. this role in modern history.” That may be true in the ■ Holt said he sees his role as a combination of brake- House, but those with longer memories will recall Sen- man and fireman (“the person on the train that supplies ate Clerk Russell Humphrey was named chief of staff the fuel”), in which he can adjust the speed of committee of the upper chamber by then-Speaker John Wilder proceedings as required. Regardless of the best analogy (D-Mason) in 2002 — when Humphrey was 30. for his current role, at least Holt now sees himself as ■ “One time the GPS told me … to go right down across being on board the train. the hay field and cross the river — where there’s no ■ In his previous incarnation as all-around provocateur bridge — into Grainger County and get on Howell Road. and naysayer, Holt was more akin to cartoon villain So I’ve lost a lot of confidence in this stuff.” — State Sen. Dick Dastardly — mostly getting run over by the train.