Senator Mae Beavers

March 18, 2011

Capitol Hill Weekly

Legislation that I am sponsoring, Senate Bill 326, was approved this week in the Senate General Welfare Committee calling for Tennessee to join an interstate compact with the express purpose of returning the responsibility and authority for regulating health care to the states.  It essentially provides a permanent waiver to each member state to create whatever healthcare regulations the legislature deems best for the citizens of that state.

There are also plans to file the “Health Care Compact” in a number of state legislatures during their 2011 sessions.  The Health Care Compact provides a legal framework in which states can create their own healthcare systems. The structure protects Medicare and Medicaid funding by allowing member states to access federal tax revenues directly and without strings attached.

An interstate health care compact is a powerful vehicle for states to confront the federal health care law mandated by Washington directly.  The federal health care law is one of the biggest oversteps of federal authority in our nation’s history.  It forces states into a ‘one size fits all’ approach to public policy, and is in direct contradiction to state’s rights and the personal liberties guaranteed by our federal Constitution.

One size does not fit all.   States have different needs which are not recognized in the federal mandates passed by Congress last year.  The Health Care Compact does not mandate how each state will handle health care within their boundaries.  It leaves them to decide how to create a system that fits their needs, providing greater accountability and more flexibility in delivering citizens a more efficient and effective system.”

Budget — In other action this week, Governor Bill Haslam presented his State of the State / Budget Address to the General Assembly this week outlining his proposals to deal with the state’s current budget crunch, while working towards reforming education and making our economy stronger to welcome new jobs to Tennessee.  The $30.2 billion balanced budget is almost $2 billion less than the current 2010-11 budget of $32 billion.  I am very pleased that it contains no new taxes.  Instead, the budget plan maintains essential government services by focusing reductions in administrative areas to minimize any impact felt by Tennessee taxpayers.

The Governor said the budget calls for the state to spend less money but work harder to stretch public dollars, including making state government more “customer friendly” for Tennesseans.  At the same time, the Governor asked lawmakers to assist in transforming how government works to reflect current economic conditions.

“I want to emphasize that our current financial constraints are not a temporary condition,” said Governor Haslam.  “I think what we are seeing in government today really is the ‘new normal.’  Every government, ours included, will be forced to transform how it sets priorities and makes choices.”

Tennessee is in better economic condition than most states, many of whom are struggling to stay afloat amid huge budget deficits.  Over the last three years, Tennessee has reduced discretionary spending by 21 percent.

Some of the highlights of the 2011-12 budget include:

  • $300 million will be used for medical inflation for TennCare and CoverKids; to fund the Basic Education Program; for state health insurance premiums and for state employee pay raises of 1.6 percent.
  • There will be 1,180 fewer state positions – almost 90 percent of the reductions coming from eliminating unfilled positions and the projects tied to non-recurring state and federal stimulus funds.
  • Provides for an average departmental reduction throughout state government of 2.5 percent.
  • It restores $69.3 million to the Rainy Day Fund, the state’s savings account, increasing it to $283.6 million at June 30, 2011, and $326.6 million at June 30, 2012.  (Before the economic downturn, on June 20, 2008, the fund was at $750 million.)
  • The proposed budget is based on a realistically conservative 3.65 percent revenue growth at $473 million.

Governor Haslam asked the General Assembly to join him in reviewing the state’s boards and commissions to see whether 140 are necessary.  I am very pleased that he noted the progress of our Senate Government Operations Committee over the past 18 months in looking into the matter.  He also asked the General Assembly to examine how much state government authority through rules and regulations has been shifted to these agencies, a task which is much needed.

The budget proposal, also called the appropriations bill, now travels to the Finance Committees of both Houses for discussion there.  The budget will continue to be a top priority for the remainder of this legislative session.

DUI / Driver’s Licenses – Finally, the Senate Judiciary Committee which I chair has approved Senate Bill 343 which increases from three to five years, the minimum time period a driver’s license may be revoked for a third DUI offense. The legislation increases, from six to eight years, the minimum time period a driver license may be revoked for a fourth or subsequent offense.  Alcohol-related fatalities represent 31 percent of the state’s traffic fatalities.

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