Lawmakers Decide How To Spend Extra Money

WKRN
May 14, 2007

Tuesday could be the most important deadline of the year at the Tennessee Capitol.

State lawmakers will know if their leadership reached an agreement on how to spend an unusual amount of extra tax money.

They could give some back to pay for schools, roads and state worker pay increases.

A lot of state lawmakers wonder why taxes should be raised on cigarettes when there's several hundred million more dollars than expected in other state tax revenue.

One group of nurses sees the cigarette tax as a health measure.

One said, “Whether it is a bargaining chip or not, anything we do to raise the cost of cigarettes means less of our children will die of emphysema or lung cancer.”

Lowering or keeping the 40 cent cigarette tax plan is just one part of the budget surplus negotiations that could be hammered out by 12 noon on Tuesday.

Lawmakers like Republican Senate Leader Mark Norris said other negotiating areas for the surplus money include lowering the sales tax on food, higher pay raises for state workers, more money for road building, and increasing the states rainy day fund.

Can lawmakers do all that with the money they have?

House Democratic leader Gary Odom isn't so sure.

He said, “Youcan’t do it all unless the 40 cents is there in my opinion.”

One thing most lawmakers and Governor Phil Bredesen agree on is the proposal that sends hundreds of millions of dollars to schools.

It’s aimed at districts with students who may be at risk of failing or dropping out, but it comes with new accountability measures.