State Banking on Financial Literacy New Model Debt Policy Released; Deadline for Public Input Sept 15

State Banking on Financial Literacy New Model Debt Policy Released; Deadline for Public Input Sept 15

1-TENNESSEE TOWN & CITY/AUGUST 23, 2010 www.TML1.org 6,250 subscribers www.TML1.org Volume 61, Number 14 August 23, 2010 Haslam, McWherter to face off in November GOP candidate Knoxville Mayor Bill Haslam prevailed in a three-way Republican primary race for governor. He won with 47 percent of votes, followed by 3rd District U.S. Rep. Zach Wamp in second place with almost 30 percent and Lt. Governor Ron Ramsey in third with 22 percent. Save the Dates! Meanwhile, West Tennessee businessman Mike McWherter is uncontested on the Demo- TML Annual Conference cratic side. He was unopposed after four Democratic opponents withdrew from the race. The two candidates will square off in three June 12 - 14, 2011 gubernatorial debates planned for this fall with the first scheduled for Sept. 14 in Cookeville. Congress Murfreesboro Convention Center Several Congressional races were also hotly contested. In District 9, incumbent Steve Cohen easily won his democratic primary over New Model Debt Policy former Memphis Mayor Willie Herenton. Cohen received 79 percent of the vote over GOP candidate Knoxville Herenton’s 21 percent. Mayor Bill Haslam will released; deadline for GOP challengers battled it out in District 8, face Democratic nomi- with Stephen Fincher winning the primary with nee Mike McWherter in 48.5 percent over Ron Kirkland’s 24.4 percent the November general public input Sept 15 and George Flinn’s 24 percent. Fincher will election, to determine face state Sen. Roy Herron, the Democratic who will serve as the 49th State Comptroller Justin Wilson Tennessee governmental debt issu- nominee, in the general election for the chance Governor of Tennessee. has released a revised draft statement ers to consider while developing to fill the seat vacated by longtime U.S. Con- on debt management. their own policies. These principles gressman John Tanner, who chose not to run after serving 11 terms in the The comptroller first developed are understanding transactions, ex- U.S. House of Representatives. a Model Debt Policy last year and plaining to citizens what is being In District 6, state Sen. Diane Black won a tight three-way race for the asked for input from municipal gov- considered, avoiding conflicts of GOP nominee. She won with 30.5 percent of the votes over challengers ernments. interest, and disclosing costs and LouAnn Zelenik (30.2 percent) and state Sen. Jim Tracy (29.8 percent). On behalf of Tennessee's mu- risks. In District 5, David Hall won his GOP primary in a field of 11 to nicipalities, the Tennessee Munici- The revised draft also requires challenge incumbent Rep. Jim Cooper in the fall. pal League compiled the cities' com- each municipality to adopt a debt In District 3, Chattanooga lawyer Chuck Fleishmann won the GOP ments and submitted them to the management policy no later than primary over former GOP chairman Robin Smith with 29.7 percent to her Comptroller for consideration. Jan. 1, 2012. Moreover, each city’s 28.1 percent of the vote. The comptroller reviewed the policy would be required to contain Legislature comments and acknowledged that specific, mandated language relat- In the state legislative primaries, District 21 was the race to watch. local governments raised some le- ing to these four guiding principles. Incumbent state Sen. Douglas Henry faced Nashville lawyer Jeff Yarboro gitimate concerns that warranted a Comptroller Wilson is inviting for the democratic nominee. Henry narrowly won by 11 votes for a chance rewrite of the proposed Model written comments and suggestions to keep the senate seat he has held for 40 years. A possible recount is still In District 27, former senator Policy. for these draft documents by Sept. pending. Don McLeary won the GOP nomi- In his remarks accompanying 15. In District 17, Sen. Mae Beavers won the GOP primary over Rep. Susan nation to face democratic incumbent the release of the revised draft he After receiving input from gov- Lynn with 49 percent of the votes. Beavers will face Smith County farmer Sen. Lowe Finney. stated, “Each local government’s ernments and interested parties, George McDonald on the Democratic side, who won his primary with 42 In District 7, Rep. Stacey debt policy should address each of Comptroller Wilson will consider percent of the votes against challenger Sam Hatcher's 39 percent. See ELECTION on Page5 the four guiding principles. Beyond making recommendations to the that, it is not advisable or practical to State Funding Board regarding debt try to create a ‘one-size-fits-all’ debt management. The State Funding Mandatory collective bargaining failed management policy.” Board has authority to adopt a model “Cities and counties throughout debt policy for Tennessee govern- BY CAROLYN COLEMAN When the bill returned to the governments have developed proce- our state have different needs and mental debt issuers. Nations Cities Weekly Senate for consideration, the Senate dures for addressing the needs of different challenges relating to debt In addition to the draft debt rejected the House's amendment their employees, taxpayers and citi- management. Once the basics are management statement, Wilson re- Recent efforts to pass manda- largely because of the additional zens,” Hankins testified. “They have met, I believe it is best to create a leased a guide and checklist on best tory federal collective bargaining funding and returned its original done so with and without collective general framework for sound debt practices in debt management, legislation (H.R. 413/S.1611/S. version back to the House for con- bargaining, through laws that are management, but give governmental which includes examples from cur- 3194) failed. The “one-size-fits-all” sideration. The House eventually designed to provide their workers debt issuers the flexibility to adopt rent debt policies. To further assist bill would require that every state, passed the Senate version of the bill, with excellent working conditions, policies tailored to their specific debt issuers, the Comptroller also county, city and town collectively which the President signed into law competitive salaries, excellent needs. I want the comptroller’s of- released a list of recommended bargain with their police officers, on July 29, 2010. health and pension benefits, and a fice to serve as a clearinghouse for sources and resources. firefighters, emergency medical “NLC will continue to oppose working environment that is safe the sharing of ideas about what To view the documents pre- technicians and corrections officers, this legislation on behalf of cities and appropriate.’’ He added that this works and what doesn’t.” pared by the Comptroller’s office, regardless of state and local laws. and towns on the grounds that it bill would put the federal govern- Wilson says that the draft is go to: http://tn.gov/comptroller/lf/ NLC has opposed this legisla- interferes with state and local laws, ment in charge of what has been a based on four guiding principles for lfDebtManagement.htm tion since it was first introduced 15 violates principles of federalism, state and local function for no com- years ago. Last month, the House and may be unconstitutional,” said pelling reason. included the legislation in an NLC Executive Director Don Borut. Citing the Constitution, Su- State Fire Marshal’s office amendment to its version of the In a House subcommittee hear- preme Court decisions and existing supplemental appropriations bill ing earlier this year, North Carolina law, Hankins noted that this bill dis- establishing network of (H.R. 4899), which contained fund- League of Municipalities Executive regards and disrespects the demo- ing for the Iraq and Afghanistan Director Ellis Hankins testified on cratic decision making process em- wars. The amendment also con- behalf of NLC and urged the com- ployed by states and localities to building permit issue agents tained billions of dollars in domestic mittee not to fix what isn’t broken. decide how best to interact with their The Tennessee funding. “For centuries, states and local employees. Department of Com- merce and Insurance is currently accepting ap- State banking on financial literacy plications for building permit issue agents as BY VICTORIA SOUTH part of a new codes en- TML Communications Coordinator forcement program set to begin Oct. 1. Tennessee’s youth could be- Included in the come its most savy consumers un- Tennessee Clean En- der a financial literacy education ergy Future Act are program offering techniques on sav- provisions regarding ing money for college targeting el- adoption and enforce- ementary school students, parents ment of a residential building code no matter how extensive, is also not and teachers. Headed by the Tennes- to one- and two-family residences covered. see Financial Literacy Commission, across the state. Cities and counties that pres- under the state’s Department of The State Fire Marshal’s Office ently enforce a building code that is Treasury, the effort is part of a na- will issue residential building per- current within seven years (the 2003 tional campaign to promote finan- mits using a system similar to the or 2006 edition of the International cial literacy education. electrical inspection program that it Residential Code will qualify) can “There is a need in our state for presently operates. Owners and li- notify the State Fire Marshal’s Of- greater understanding of financial censed contractors will obtain a con- fice and continue local enforcement. concepts,” said Treasurer David struction permit from the local issu- Local codes may be more stringent Lillard Jr. “In addition to promoting Nationally, on average, high school seniors answered only 52.4 ing agents. Inspectors will then in- that the state adopted code. Cities college savings, I look forward to percent of questions about personal finance and economics correctly. spect residences during construction and counties may also choose to making other financial educational to ensure code compliance.

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