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TML 2010 Initiative Approved

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TML 2010 Initiative Approved 1-TENNESSEE TOWN & CITY/APRIL 26, 2010 www.TML1.org 6,250 subscribers www.TML1.org Volume 61, Number 7 April 26, 2010 TML 2010 Bredesen proposes new plan for initiative addressing $105 million budget gap BY CAROLE GRAVES we’ve all tried to Current Law approved TML Communications Director avoid,” the Admin- Single Article = $10,000 istration said in a re- Another one of TML’s 2010 leg- Faced with another month of leased statement. State tax 7% x $10,000 = $700 islative priorities has been approved underperforming revenues and a “However, given the Local tax 2.25 x $1,600 = $36 by the Tennessee General Assembly, budget gap of $105 million, Gov. severity of the addi- State single article 2.75% x $1,600 = $44 with others still pending. Phil Bredesen is proposing lifting tional cuts that SB 2933 by Sen. Jack Johnson the sales tax cap on big ticket items. would be needed to Total tax = $780 and HB 2842 by Rep. Charles The measure is estimated to raise an address this addi- Sargent prohibits the unauthorized additional $85 million in revenue. tional $105 million The entire $10,000 is subject to the 7 percent. shortfall, the deci- use of government logos and sym- Sen. Jackson Under current law, the first The first $1,600 of the price is subject to the bols. The legislation passed the Sen- $1,600 of the purchase price of any sion to protect the applicable local tax rate. The second $1,600 is ate unanimously in February. House single item is taxed 7 percent by the sales tax base is the subject to a state tax single article rate of 2.75 members approved it this month state and up to 2.75 percent by local best option.” percent. The remaining $6,800 is not subject (April 8) with 83 yes votes, 4 no governments. In July 2002, the Gen- Bredesen said to either the local tax rate or a state single votes, and 2 abstentions. eral Assembly enacted a tax package by lifting the sales article rate. When a local government logo that granted the state the authority to tax cap it would or symbol is reproduced in a publica- levy an additional 2.75 percent tax avoid a 5 percent Proposed Amendment tion, in a solicitation, in a display, or on a single article in excess of salary cut for all Single Article = $10,000 on a website without permission, it $1,600 and up to a maximum state state employees. may incorrectly imply official spon- cap of $3,200. Most state depart- State tax 7% x $10,000 = $700 sorship or endorsement by the local Under Bredesen’s new pro- ments have already Local tax 2.25 x $1,600 = $36 government. This legislation pro- posal, the state would remove the tax been required to cut State single article 2.75% x $8,400 =$231 hibits the unauthorized use of local cap and apply a 2.75 percent state tax 9 percent from their government logos and therefore, rate to the price above $1,600, ex- department budgets. Total tax = $967 provides protection against implica- cept for motor vehicles, boats and For 22 consecu- tions typically associated with an manufactured homes. Local govern- tive months, sales The entire $10,000 is subject to the 7%. The official sponsorship or endorsement. ments could only levy a local tax to tax collections have first $1,600 of the price is subject to the appli- The Tennessee Trade Mark Act the first $1,600 of the purchase come in less than Rep. Sargent cable local tax rate. The price above $1,600 of 2000 allows for the registration of price. what was projected. ($8,400) would be subject to a state tax single trademarks with the Secretary of words, brand names, etc. Once reg- “Adding revenue measures to Year-to-date collec- article rate of 2.75 percent. State and provides protection for of- istered, only the trademark’s owner address the budget is a step that See TAX on Page 5 ficially adopted logos, symbols, See LEGISLATION on Page 5 Proposed bill affects TML’s U.S. Senate, House poised to pass ability to appoint members mandatory collective bargaining bill to state regulatory boards BY NEIL BOMBERG George Miller (D-Calif.), the chair local elected officials, their employ- Nation Cities Weekly of the House Education and Labor ees, and the constituents they repre- BY DENISE PAIGE won the opportunity to make these Committee and one of the bill’s lead- sent. State, county and municipal TML Governments Relations nominations to ensure that the inter- The U.S. Senate and House ing advocates, said he expects the officials provide workers with ex- est of local governments is consid- have moved one step closer to pass- Public Safety Employer-Employee cellent salaries, benefits and work- Lawmakers, in an attempt to ered during the formation of policies ing a mandatory collective bargain- Cooperation Act of 2009 to pass ing conditions that are responsive to lessen the “special interest” influ- that directly affect municipalities ing bill. Senate Majority Leader Congress this month. the fiscal needs and limitations of ence on the state’s boards and com- and their residents. Harry Reid (D-Nev.) re-introduced Once both chambers have state, county and city governments, missions, have proposed to elimi- Local governments are not spe- the Public Safety Employer-Em- adopted the same version of bill it and reflect the priorities of the com- nate the nominating authority of cial interest groups. Municipalities ployee Cooperation Act of 2009 will be sent to the President for his munities that elected officials repre- stakeholders, including the Tennes- are political subdivisions of the (S.3194) under a Senate rule that signature. sent.” see Municipal League, making these state, governed by leaders who are would allow S.3194 to come to the NLC and its national partners These bills would, without con- board positions political appoint- elected and accountable to the citi- floor in as little as 48 hours after have and will continue to urge Con- sideration for state and local laws, ments solely determined by the gov- zens and taxpayers in their respec- introduction and without commit- gress to reject this legislation be- grant every police officer, ernor. tive communities, and not to share- tee review. cause it would grant the federal gov- firefighter and emergency medical TML opposes SB 2949 by Sen. holders, stockholders, or boards of S.3194 is identical to a manda- ernment authority over some of the technician at the state or local level Bo Watson and HB2862 by Rep. directors. Further, the relationship tory collective bargaining bill that fundamental employment decisions the right to form and join a labor Susan Lynn, particularly as it per- between state and local govern- Sen. Judd Gregg (R-N.H.) intro- historically reserved to states and union. These bills would direct local tains to the five state environmental ments has always been a valuable duced last year (S.1611), and is local governments. governments to recognize the em- regulatory boards: the Solid Waste partnership, which has included be- nearly identical to H.R. 413, the In a letter to the Senate, NLC ployees' labor union and require cit- Disposal Control Board; the Water ing able to identify qualified candi- House version of the bill, which and other organizations wrote: “The ies and towns to collectively bargain Quality Control Board; the Petro- dates with the technical knowledge North Carolina League of Munici- Public Safety Employer-Employee over hours, wages and the terms and leum Underground Storage Tank to serve on the state’s environmental palities Executive Director Ellis Cooperation Act of 2009 would se- conditions of employment other Board, and the Municipal Solid regulatory boards. Hankins testified against last verely damage the historic relation- than pensions. Waste Advisory Committee; and the TML is not alone in its fight month. On the House side, Rep. ships that exist between state and See UNIONS on Page 5 Air Pollution Control Board. against this harmful legislation. Currently, state law stipulates Several organizations and entities that at least one seat on the environ- have joined together to express their “Operation Information Exchange” mental regulatory board positions total opposition to legislative efforts “shall” be chosen by the governor that, if enacted, will result in funda- from a list of names submitted by mental and unacceptable changes to teams Clarksville and Fort Campbell TML, ensuring that the representa- Tennessee’s environmental regula- tive on these boards is a qualified tory boards and their impact on the person with the technical expertise state of Tennessee. BY VICTORIA SOUTH to provide the local government in- SB 2949 was heard in the Senate TML Communications Coordinator put on issues that affect the regu- Government Operations Committee Members of Fort Campbell’s lated community. The proposal Tuesday, April 20th, and was 1st Brigade Combat Team charged states that the governor simply amended to change the current with building new municipal gov- “may” choose the local government nomination process. The bill passed ernments in Afghanistan, deployed representative from a list of names in the committee and has not been to the country recently with some submitted, provided that the person scheduled for the Senate floor to added security, the guaranteed sup- is engaged in municipal govern- date. TML continues to oppose this port and mentorship of the city of ment. legislation and will work to keep the Clarksville. Municipalities fought for and current nomination process in place. Nothing was ‘top secret’ March 17 when Mayor Johnny Piper and his staff hosted an infor- Navigating the Fiscal Crisis mative interactive seminar dubbed “Operation Information Ex- Workshops offered at TML Conference change,” with around 50 Fort Campbell soldiers.
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