Monday, January 23, 2012

Next TCCA Board Meeting - February 2

President Ronnie Raper of Rhea County has called for the next meeting of the board of the Tennessee County Commissioners Association from 10:00 a.m. to 2 p.m. central time on Thursday, February 2nd in Nashville in the ground floor conference room of our office building at 226 Capitol Boulevard. Much of this meeting will focus on specific legislation and consideration of policy positions for the upcoming legislative session. New bills are being filed on a daily basis with bill filing deadlines of February 1 for the House and January 26 for the Senate. To date, approximately 600-700 new bills have been filed in each chamber. It's expected that number with grow to around 2000 total new bills by the end of the month.

State Revenue Collections

Higher than expected business tax collections in December pushed Tennessee revenues past budgeted projections. Finance and Administration commissioner Mark Emkes reported that state revenue collections for December were $965.7 million, or 16.54% above December 2010. December collections posted the eighth consecutive month in which the growth rate has been 5.0% or higher.

“While it's encouraging to see an improvement in business profits, the unexpected overcollection in December could be a timing issue, and as a result future months could be negatively impacted," Emkes said. "Typically, about one-fourth of all franchise and excise tax collections are realized in the month of April, so we’ll continue to closely monitor our spending for the balance of this year.

“We’re very pleased with December sales tax collections, which reflect renewed consumer confidence in our economy. It's important to remember, though, that we’re still not back to pre-2008 collection levels on sales taxes.”

December collections were $123.2 million more than the budgeted estimate. The general fund was over collected by $118.9 million and the four other funds were over collected by $4.3 million.
Sales tax collections were $12.9 million more than the estimate for December. The December growth rate was 6.78%. For five months revenues are over collected by $56.3 million, and the year-to-date growth rate is 6.29%.

Gasoline and motor fuel collections for December increased by 7.65%, and they were $3.2 million above the budgeted estimate of $64.6 million. For five months revenues are under collected by $3.0 million.

Year-to-date collections for five months were $194.2 million more than the budgeted estimate. The general fund was over collected by $188.4 million and the four other funds were over collected by $5.8 million.

The State Funding Board met on December 9th and 14th to hear updated revenue projections from the state’s various economists. The board met again on December 19th and adopted revised revenue ranges for 2011-2012. The revised ranges assume an over collection from the July 2011 budgeted estimate in the amount of $187.8 million to $220.5 million in total taxes and in the amount of $177.0 million to $209.6 million in general fund taxes for the current fiscal year.

Treasurer Lillard Proposes New Pension Options for Local Governments

To give local governments more choices for their employees’ retirement plans, Tennessee State Treasurer David H. Lillard Jr. today proposed several new options to state legislators for their consideration.

Lillard stressed that none of the suggested changes would affect K-12 teachers, state employees or higher education employees who are covered under the Tennessee Consolidated Retirement System (TCRS). The changes, which would require approval by the General Assembly, are optional for local governments and would only affect new hires. The proposed options do not affect any current retirees of TCRS.

“Our city and county governments across Tennessee have to balance the need to be good stewards of taxpayer money with the need to offer fair retirement benefits to their employees,” Treasurer Lillard said. “The goal is to make sure pension benefits are affordable, sustainable and sufficient. That’s why I am recommending some choices that would give local governments greater flexibility to meet their specific needs.”

The options presented today were:

· local governments may take no action and remain in the current TCRS defined benefit pension plan with retirement generally at 30 years of service or age 60; or
· local governments may adopt a TCRS defined benefit pension plan with an annual service accrual rate of 1.4%, with an increase in retirement age, limits on cost of living adjustments, a cap on maximum allowed benefits and a revised employee contribution structure; or
· local governments may adopt a TCRS defined benefit pension plan with an annual service accrual rate of 1% to offer reduced pension benefits, but with a supplemental deferred compensation program; or
· local governments may decide to offer only a deferred compensation program as a stand-alone option.

The proposals were developed following open meetings held throughout Tennessee with more than 200 local government representatives last fall.

“Over the last couple of years, we have had several local governments either withdraw or give notice that they planned to withdraw from TCRS due to changes in market conditions,” Treasurer Lillard said. “We are offering these options because we want local governments to remain part of TCRS, which is in the best interests of local governments, their employees and the citizens they serve. We believe local governments will be more inclined to do that if we’re offering more choices.”

Treasurer Lillard presented his ideas during a meeting of the General Assembly’s Council on Pensions and Insurance. For a copy of the local government pension option proposals and other documents, go to http://treasury.tn.gov/tcrs and look at the tab titled “Proposed Plans for Local Gov’t.”

Monday, January 9, 2012

Governor Haslam, Commissioner Hagerty Release Regulatory Reform Report

Federal and State Regulations Reviewed for Potential Negative Impact on Businesses

Tennessee Gov. Bill Haslam and Economic and Community Development Commissioner Bill Hagerty last Friday released the Regulatory Reform Report, an ECD-led review of federal and state rules and regulations impacting businesses. One of the key strategies of the governor’s Jobs4TN economic development plan was to conduct this review with the goal of identifying obstacles to investment.

“To reach our goal of becoming the No. 1 state in the Southeast for high quality jobs, we must always be focused on strengthening our attractive business climate to attract and grow Tennessee jobs,” Haslam said. “This regulatory review process was important to identify areas for improvement both through internal and external evaluations.”

In conducting the review, ECD surveyed Tennessee business leaders, advocacy groups and state departments to identify federal and state laws, regulations and processes that could have a negative impact on economic development and job creation in the state.

“I want to thank those who gave of their time and participated in the regulatory review process, including Tennessee businesses, local stakeholders and our fellow state government departments. Their cooperation and feedback were essential to producing the Regulatory Reform Report,” Hagerty said. “Identifying areas where there are opportunities for improvement is the first step in streamlining and modernizing our regulatory environment and better serving the people and businesses of our state.”

The report suggests a number of recommendations, which include:

- Implementation of an assessment process for all regulations prior to being finalized.
- Improved customer service by regulatory enforcement entities in working with constituents on regulatory compliance and clearly communicating inspector expectations.
- Strengthening the culture of customer service throughout state government by employee training and accountability measures.
- Working with each state department to eliminate or modify redundant or cumbersome regulations identified through the review process.
- Conducting an annual survey of businesses to track problematic federal regulations.
- Reviewing procedures and processes performed by multiple departments to assess opportunities for streamlining them.
- Continuing ongoing dialogue with businesses about issues of concern such as workers’ compensation and unemployment laws.
- Requiring every department that enforces regulations to create uniform regulatory guidance, where applicable, in order to promote certainty, consistency and oversight within the process.
- Developing an interactive, “one stop” website that allows constituents to easily find regulatory information with appropriate departments, boards or commissions posting relevant notices and information on the site.
- Assessment of the necessity and function of state boards and commissions.

The regulatory review process involved three steps: a broad survey of businesses, a series of statewide roundtable discussions and regulatory self-evaluations by each department of state government.

More than 150 surveys were completed and compiled, and then used as a framework for a series of roundtables involving nearly 200 businesses statewide. Details on survey findings and notes from the roundtables are found in the report.

Each department within state government was also asked to evaluate regulations within their jurisdiction that could be streamlined, eliminated or deemed burdensome to business. Many departments are already going through this process as part of their top-to-bottom reviews.

The complete Regulatory Review Report can be found at: tn.gov/ecd/pdf/Regulatory_Reform_Report.pdf.

Thursday, January 5, 2012

Governor Unveils Public Safety Strategy

Tennessee Gov. Bill Haslam today announced a comprehensive, multi-year action plan designed to improve public safety statewide.

The Governor’s Public Safety Subcabinet Working Group, which includes commissioners and representatives from 11 state agencies, submitted the plan after months of meetings with more than 300 public safety professionals and stakeholders across the state.

The three goals of the public safety action plan are to significantly reduce drug abuse and drug trafficking; curb violent crime; and lower the rate of repeat offenders. There are 11 objectives and 40 action steps outlined in the plan, all specifically linked to those goals.

“Keeping our citizens safe is one of state government’s primary responsibilities,” Haslam said. “This action plan is a detailed road map that addresses some of our toughest safety challenges head on. I am proud of this group – whose members bring a number of different perspectives to the table – for working together to recommend meaningful solutions. They are coordinating their efforts and moving in the same direction to implement this plan.”

While it is a multi-year strategy, the subcabinet working group expects to launch approximately 20 of the steps in 2012. Several of these steps include:

Making improvements to the current prescription drug data base to make it easier to identify abusers;

Developing regional alliances with other states to tackle prescription drug abuse;

Placing non-violent drug addicts into drug court treatment programs;

Imposing tougher sentences for certain types of gang-related crimes;

Enacting tougher sentences for gun possession by those with prior violent felony convictions;

Realigning under the Department of Correction the supervision of adult felony offenders to include probation, parole and community corrections; and

Mandating incarceration time for repeat domestic violence offenders.

Eight of the identified action steps are already underway. Some of those steps include:

Development of a real-time database to track the purchases of pseudoephedrine products (commonly used to make meth);

A statewide meth lab clean-up system;

Development of a new anti-meth communications campaign;

In-depth training of all state road troopers on drug interdiction; and

A pilot effort in Shelby County to create a one-stop shop for assistance and services to inmates returning to the community.

“While we have seen an improvement, Tennessee continues to have a violent crime rate far above the national average and the highest among southeastern states,” Safety and Homeland Security Commissioner Bill Gibbons, who chairs the working group, said. “This plan addresses many of the underlying factors that lead to crime in our state and takes a comprehensive approach to addressing the problem.”

The Public Safety Subcabinet Working Group includes commissioners of the departments of Safety and Homeland Security, Mental Health, Children’s Services, Correction, Health and Military along with the chairman of the Board of Probation and Parole, the directors of the Governor’s Highway Safety Office (Department of Transportation), Office of Criminal Justice Programs (Department of Finance and Administration), Law Enforcement Training Academy (Department of Commerce and Insurance) and the Tennessee Bureau of Investigation.

The subcabinet working group has received additional support from the Tennessee Criminal Justice Coordinating Council, the National Governors Association Center for Best Practices, and the Center for Non-Profit Management.