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February 2004

UTCSTAFF@RAVEN.UTC.EDU

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Subject:
From:
"Dr. Joe Dumas" <[log in to unmask]>
Reply To:
Dr. Joe Dumas
Date:
Tue, 17 Feb 2004 11:56:57 -0500
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Shannon Marie Smith wrote:

> http://governing.com/gpp/2003/gp3tn.htm

You have got to be kidding.  State spending has more than *doubled* in
the last 10 years, the increases far exceeding the combined effects of
inflation and population growth, and it's the *revenue* system that is
broken?  Try looking at the spending side of the equation.

The fact is, no matter what the source of revenue (sales tax, income
tax, whatever) something has to be done about spending or Tennessee will
be perpetually broke and always robbing Peter to pay Paul.  Rumors to
the contrary, state revenues have grown significantly over the past
several years; unfortunately (and very unwisely), expenditures have
grown even faster.  And unfortunately for UTC, most of the increases in
overall spending have not been for higher education.

The main (not only, by any means, but the biggest) culprit is TennCare,
which now takes up approximately 30% (yes, you read that correctly) of
the total state budget (more than higher ed and K-12 combined).  If it
is not fixed and fixed permanently, there will never be any significant
new dollars for higher education regardless of the form of taxation
employed.

It will be very interesting to hear what Gov. Bredesen has to offer
tonight regarding this massive health program that continues to bankrupt
the state.  Will it be real reform involving significant reductions in
benefits and the number of enrollees (currently about 1/4 of the state
population!), or just cosmetic changes to placate the critics and
business as usual, with predictable results for other state functions
including higher education?

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