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A manager for an automotive supplier says Tennessee is rapidly becoming a major hub for the industry. Brad Pepper of Topre America Corp. said that choosing the Nissan plant in Smyrna, Tenn., for a new company location was an obvious choice. The company, based in Tokyo, also has a production and sales subsidiary in Cullman, Ala., which is its first location in the U.S. The Tennessee facility represents a multimillion-dollar investment and the creation of 25 jobs. Gov. Bill Haslam said Tennessee hopes to become the No. 1 location in the Southeast for high quality jobs. http://www.tennessean.com/usatoday/article/38366703?odyssey=mod| newswell|text|News|p
first-term Republican governor said his proposed agenda could make huge strides in addressing many of the state's pressing concerns, including crime, education, job growth, taxes and other issues. http://www2.tricities.com/news/2012/jan/17/haslam-promotes-proposed-legislative-package-2012-ar-1617705/
Capitol Hill Conversation-The Governor Lays Out His Agenda (WPLN-Radio Nash)
Governor Haslams agenda for the 2012 session includes changes to the way the state hires workers and a cut in the grocery tax. http://wpln.org/?p=32848 AUDIO http://wpln.org/wp-content/2011/12/bf-spring-for-web.mp3 :
inheritance tax and the sales tax on groceries, changing civil service rules for state workers and changing teacher pay and average class size rules. "His proposals are so in line with goals of this Republican caucus, and frankly many Democrats," Harwell said in an interview last week. "I don't think it will delay us." The tax proposals in particular eased concerns among Republican lawmakers, who want to campaign on the issue during this summer's campaigns. http://www.tennessean.com/usatoday/article/38362077?odyssey=mod|newswell|text| News|s
Senate Committee Quickly Takes Up Bath Salt and Meth Bills (W PLN-Radio)
The Tennessee legislature hits the ground running today, the second week of its 2012 session. When the gavel bangs at noon, the Senate Judiciary Committee will take up two bills that address widespread drug abuse in the state so-called designer drugs, and methamphetamine. The full Senate gave the committee the green light last week to take up the bills, even though the deadline to set the agenda had already passed. Thats unusual this early in the session and is a marker of how important these two issues are. Designer drugs are often sold across the counter as bath salts or plant food. Manufacturers take an illegal drug, make chemical changes of as little as one molecule and create a substance that isnt illegal at least, not yet. One of the bills says that if a new chemical substance mimics a drug that is already illegal, then that new substance is also an illegal drug. Socalled bath salts have become a hot issue for local governments. Several cities have banned their sale, and in Rutherford County, police raids have targeted convenience stores that carry the phony bath salts. http://wpln.org/?p=32850
'Don't Say Gay' bill once again before lawmakers (Associated Press)
A measure that seeks to ban Tennessee public schools from teaching about gay issues is once again before lawmakers. The proposal, dubbed the "Don't Say Gay" bill, is sponsored by Republican Rep. Joey Hensley of Hohenwald and is scheduled to be heard Wednesday in the House Education Subcommittee. The companion bill passed the Senate last year. It limits all sexually related instruction to "natural human reproduction science" in kindergarten through eighth grade. Hensley said he plans to amend the House version to say the same, and believes it will pass. Opponents of the legislation fear it would prevent teachers and others from speaking out against the bullying of gay teens. http://www.tennessean.com/usatoday/article/38366661?odyssey=mod|newswell|text|News|s
mention Tipton County. Norris said it was a technical mistake akin to a typographical error but that he wanted to go through all the legislative motions again to ensure accuracy in the final product. Better safe than sorry, he said. Democrats complained that the complete redistricting maps were not made publicly available until the week before the session began and that their requests to delay a vote to more carefully study the proposals were rejected. http://www.tennessean.com/article/20120118/NEWS0201/301180104/TN-county-s-omission-may-meanredistricting-revote?odyssey=tab|topnews|text|News
http://www.memphisdailynews.com/news/2012/jan/18/commission-restarts-redistricting-talks/
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Memphis, Shelby County to get Depot sale proceeds soon (M. Business Journal)
Memphis and Shelby County should soon be seeing the proceeds of the Memphis Depot Business Park sale from last year. The Memphis Depot Redevelopment Corp. will vote tomorrow to authorize sending $24.4 million from the sale to the city and county. The city and county will split the money evenly. The Memphis Depot Redevelopment Corp. is part of the city and countys Economic Development Growth Engine, an economic development entity which was formed last year. Mayfield Properties bought 265 acres and 4.2 million square feet of industrial space in Memphis Depot Business Park for $35.8 million on Aug. 5, 2011. Reid Dulberger, president of EDGE, was quick to give credit to Memphis Depot Redevelopment Corp. president Jim Covington and others. Its just a phenomenal success story, he said. These kinds of things are not easy. It was hard, but they made a huge success out of it. In addition to this payment to the city and county, which provided initial financing for the depots redevelopment, the sale puts the property back on the tax rolls. http://www.bizjournals.com/memphis/news/2012/01/17/memphis-shelby-county-to-get-depot.html
Nashville mayor's call for smaller budget cuts is relief to departments (TN/Cass)
Kicking off a budget process sure to be shadowed by the question of whether Mayor Karl Dean will seek a property tax increase, Deans finance chief asked city department heads Tuesday to plan for 2 percent cuts in the next fiscal year. Metro Finance Director Rich Riebeling also asked department leaders to evaluate all revenue options as they spend the next few weeks looking for ways to reduce spending slightly in the 2012-13 budget year, which starts July 1. The 2 percent target, largely greeted with relief by department heads, is smaller than the budget cuts Dean and Riebeling have asked them to prepare for over the previous four years. That period tracked with the toughest economic recession in recent memory and forced the city to reduce staffing levels, cut library hours and take other cost-saving steps. Riebeling said the goal of smaller cuts shouldnt be taken as a sign at this point that the administration expects to have unusual amounts of new revenue from a tax increase. Its a sign that weve done a lot (of cutting) over the past four years, he said in an interview. If we really started looking at a larger number, some departments were going to have to get into layoff issues. The 7
NATO, U.S. Not Eager to Intervene in Syria, Cooper Says (WPLN-Radio Nashville)
Nashville Congressman Jim Cooper says the U.S. and its European allies arent looking for a fight in Syria. Cooper sits on the House Armed Services Committee, and says despite the Syrian governments deadly crackdown on protesters, theres not much appetite to get involved. Cooper says its a mistake to compare the situation in Syria to that of Libya last year. In Libya, the U.S. and NATO provided air support and supplies to rebels that toppled long-standing strongman Muammar Gaddafi. Cooper says part of what drew Europe then is Libya is in its backyard, just across the Mediterranean. And he says Libyas vast oil production was a factor as well. Neither is the case with Syria, where the neighborhood is complicated. Syria is best known as a proxy for Iran, because really Iran is their only friend in the world and of course we have a very troubled relationship with 8
Iran right now. Many people would like to strike at Syria just to get at Iran, but its very close to the country of Israel. Israel is a very sensitive U.S. ally. Cooper also says U.S. forces are already overextended, and that Europe may be preoccupied as well, given the uncertain future of its shared currency. And, he says, Were not the worlds policemen. http://wpln.org/?p=32833
Highway safety program confuses, frustrates transport industry (M. Biz Journal)
While the federal governments newest safety guidelines are meant to be a system to make our nations highways safer, many in the transportation industry feel there are a lot of bugs to be worked out. Comprehensive Safety Analysis, also known as CSA, is a program the U.S. Department of Transportation s Federal Motor Carriers Safety Administration launched in December 2010. Lynn Parrish, vice president of safety and risk management with Inland Intermodal Logistics Services LLC, spoke to the Memphis W orld Trade Club today about some of the industrys issues with the relatively new program. Seizing on industry frustration with the program, Parrish joked that some people think CSA stands for Constant Speculation Abounds or Confusion Spreads Around. CSA was started to identify unsafe carriers and to improve safety on the nations highways. However, much of the data being used is drawn from the same databases, such as state accident reports and roadside inspections, which previous programs used. This may not be the complete overhaul that is being suggested, Parrish said. http://www.bizjournals.com/memphis/blog/memphis-in-motion/2012/01/highway-safety-program-confuses.html
As States Weigh Online Gambling, Profit May Be Small (New York Times)
It has been more than four decades since states began putting numbers runners out of business by starting their own legal lotteries, which now yield them close to $18 billion a year. Now several states are thinking about trying to plug budget gaps by profiting again from their residents optimism by legalizing, licensing and taxing Internet gambling. Nevada and the District of Columbia have already taken steps to authorize online poker, and state officials in Iowa have been studying the issue closely. Lawmakers in New Jersey and California are redoubling their efforts to legalize it, bolstered by a recent Department of Justice decision that reversed the federal governments long-held opposition to many forms of Internet gambling. Gov. Chris Christie of New Jersey spoke this month of making his state an epicenter of the online gambling industry. But as desperate as states are for new revenue, after four years of often painful austerity, there are questions about just how much income they can expect to receive from online gambling. The state of Iowa released a study last month that found that legalizing online poker might net it $3 million to $13 million a year, far less than private companies had estimated. http://www.nytimes.com/2012/01/18/us/more-states-look-to-legalize-online-gambling.html?_r=1&ref=todayspaper
assume ownership after 30 years. Financing for the lease purchase consists of a $100 million equity investment and a $900 million bond issue, both secured by TVA's rental payments. TVA said it has used leasing to fund capital investment projects in the past, along with traditional power bonds, and other third-party financing arrangements such as power prepayments. Leasing is common in the utility industry, TVA officials said. "TVA's ability to effectively use such financing reflects investor confidence in TVA, our strategy and the projects that are needed to realize our vision," said Chief Financial Officer John Thomas. He also said lease financing can help hold down costs and rates for TVA customers. http://www.tennessean.com/usatoday/article/38364363?odyssey=mod|newswell|text|News|s
announced Tuesday by Greater Memphis Chamber president and CEO John Moore, Memphis Mayor A C Wharton Jr. and Shelby County Mayor Mark Luttrell. The morning announcement came shortly after Wharton and Luttrell unveiled the results of their talks with Electrolux North America executives to bolster the companys use of locally owned and locally owned minority businesses in the construction of Electroluxs new Memphis plant. It feels good to be successful, and it feels good to win, Moore said at the chambers announcement, referencing the Electrolux talks. But we expect (all companies) to meet their written and verbal commitments. The nearly $1.2 billion in capital investment for the area reflects 28 economic development projects landed in 2011, in addition to consultations with 83 minority enterprises. Those projects are expected to generate 3,709 new jobs and maintain 44,075 jobs already here that are part of existing businesses, according to the chamber. http://www.memphisdailynews.com/news/2012/jan/18/billion-dollar-investment/
Electrolux says it will spend project money with minority firms (CA/Connolly)
One of the companies benefiting from the Electrolux project is CDA Inc., an African-American-owned security guard company in Memphis. "For us, it's definitely a much-needed opportunity that would create jobs, of course, on our end," said vice president Darryl Dates. He said CDA received notification that it won a contract, but that details aren't final, including the contract amount. CDA was one of the minority and women-owned companies listed as recipients of contracts Tuesday, when the two local mayors joined with an Electrolux official at City Hall to highlight the company's commitment to working with these businesses. But the speakers said Electrolux still hasn't agreed in writing to give a specific amount of money to these companies. "I think what we need to do now is forget about (contract) language and look at performance," Memphis Mayor A C Wharton said. "And that's where we are now." In an interview, Electrolux project director Jacob Burroughs acknowledged that the company doesn't have a specific goal for minority participation, but said the company seeks to engage the community. "This is our home," he said. "We're here, we're going to be here for many, many years to come, and we want to participate in the community." http://www.commercialappeal.com/news/2012/jan/17/electrolux-identifies-subcontractors-reiterates-co/ (SUB)
Suburban Schools Reports Conclude No Cost To Get Buildings (M. Daily News)
The local discussion about changes to Shelby Countys two public schools systems has shifted this week to efforts by leaders of the countys six suburban towns and cities to form their own school system or systems. And the first public review of the reports Tuesday, Jan. 17, by the Germantown Mayor and Board of Aldermen indicated the leaders were encouraged by a report that concludes a suburban school district would not have to pay the countywide school system to get buildings within the boundaries of a separate school district they might form. The reports by Southern Educational Strategies LLC of Memphis do not recommend a course of action. Germantown Mayor Sharon Goldsworthy said the citys next step is a Feb. 1 townhall meeting to gauge public reaction and political will to move to a May referendum on forming such a school system. The city leaders will 12
then talk about what theyve heard at a regularly scheduled Feb. 2 and Feb. 3 retreat. A good part of the retreat would be spent toward the question of where do we go from here, Goldsworthy said. Were going to be very busy, very fast if we are going for a May referendum, she added citing a goal of opening schools in the new district in August 2013. http://www.memphisdailynews.com/news/2012/jan/18/suburban-schools-reports-conclude-no-cost-to-getbuildings/
They hope to prevent Tennessee from passing immigration laws like the one in Alabama, which they say is too harsh. But supporters of the Alabama measure say the Bible teaches that the governments job is to enforce the law, and those who break it should be punished. The American Center for Law and Justice, a Christian legal group with local attorneys, filed a brief in federal court supporting the Alabama law. That measure, being challenged by the Obama administration, prohibits undocumented immigrants from entering into business transactions with the state, requires police to check immigration status during traffic stops and makes it a crime for U.S. citizens to knowingly assist undocumented immigrants. This legislative session, Tennessee lawmakers could take up a bill that would require state officials to check citizenship before granting services such as disaster relief and immunization and a bill that would require drivers license exams be administered only in English. http://www.tennessean.com/article/20120118/NEWS06/301180079/Bible-used-fight-defend-Alabamaimmigration-law?odyssey=tab|topnews|text|News
Florida: Water rights shift in Florida could foreshadow debates to come (Stateline)
Is reclaimed water a basic public resource or a privately manufactured product? Thats the question before the Florida legislature this session, as it decides how to classify the states large supply of wastewater thats treated and used again, often for lawn irrigation or recharging aquifers. Environmentalists are nervous as lawmakers prepare to enact the largest overhaul to state water law in 40 years, changing the states very definition of water. Current Florida law subjects all state waters to permitting based upon beneficial use in the public interest. But the bill up for debate would exclude reclaimed water from waters of the state, granting sole ownership of the resources to the utilities that produce it. Many of these utilities are public entities, but some are privately owned. Under the bill, state water management districts could not dictate how reclaimed water is used, even during an emergency shortage. Backed by several powerful interest groups, the bill appears destined to become law. Supporters say the overhaul would protect Floridas dwindling water supply by incentivizing production and use of reclaimed water through eased restrictions.Local governments need the certainty, says state Representative Dana Young, a Tampa Republican who teamed up with city representatives to write the bill. http://www.stateline.org/live/details/story?contentId=625393
Michigan: Humbled Flint Forced to Take State's Orders (W all Street Journal)
The state's enhanced power to take over financially troubled cities has drawn the ire of Democrats and labor unions in Michigan, and such interventions have sparked fights across the U.S. in places like Harrisburg, Pa. But here in Flintonce an icon for industrial might and organized laboremergency manager Michael Brown has received a warmer-than-expected reception even as he took early steps such as stopping the pay of the mayor and city council and shutting several city departments. Mr. Brown released his first financial plan for the city Tuesday, but major hurdles remain. Troubled by a decades-long decline in the tax base, population loss and expensive contracts for municipal workers, Flint's finances grew especially dire last year. Its deficit swelled to as much as $14.6 million and revenue continued to fall. Modest financial gains made when the state intervened in 2002despite protests by the cityhad been lost under new union contracts and a return to unsustainable spending. The state moved in again last year under a new, more powerful emergency-manager law after Flint's deficit ballooned and city leaders failed to make promised layoffs. Republican Gov. Rick Snyder appointed Mr. Brown to take over Dec. 1, giving him control over every aspect of the city's budget and operations, as well as the ability to unilaterally impose new labor contracts. This time, city officials didn't resist. http://online.wsj.com/article/SB10001424052970203735304577163752725118984.html?mod=ITP_pageone_1 (SUBSCRIPTION)
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Editorial: Tax cut proposals lack boldness but merit passage (News-Sentinel)
Gov. Bill Haslam is proposing Tennessee take some baby steps toward tax reform this year by beginning to lower the sales tax on groceries and raise the amount exempt from the state inheritance tax. Haslam announced both measures last week when he unveiled his agenda for this year's legislative session. The package is designed to appeal to legislators of both parties. House Speaker Beth Harwell, a fellow Republican, has called 15
for lowering the inheritance tax, while Democrats have long sought further reductions in the sales tax on food. Harwell and House Democratic Leader Craig Fitzhugh endorsed the governor's approach. As is often the case with proposals aimed to garner bipartisan support, neither of Haslam's is particularly bold. They do, however, signal a willingness to at least begin addressing Tennessee's antiquated tax system and merit passage. Tennessee's inheritance tax applies to estates of $1 million or more. Haslam wants to increase the exemption to $5 million which is the same as the federal inheritance tax exemption over the next five years. This year's proposal would raise the exemption to $1.25 million. http://www.knoxnews.com/news/2012/jan/18/editorial-taxcut-proposals-lack-boldness-but/
Gail Kerr: Speaker Beth Harwell says sunshine law is safe (Tennessean)
The attack on Tennessees open meetings law is over for now, thanks to three key Republicans who quickly squashed this effort like a pesky bug. Tennessee House Speaker Beth Harwell joined Gov. Bill Haslam and state Sen. Ken Yager to stand behind a law that for nearly 38 years has assured taxpayers that their business would be done in public, not in secret. The change would have allowed elected bodies to meet behind closed doors and without any notification of the public so long as they were just short of a quorum. It was widely opposed by the Tennessee Press Association and the Tennessee Coalition for Open Government. The bill would have allowed as many as 26 of the 40 Metro Council members to meet in secret. It was a dangerous proposal, put forth with no logical argument. Speaker Harwell is supportive of our current open meetings laws, Kara Owen, deputy chief of staff for communications and policy for the speaker, said in an email. The Speaker does not support this legislation. She has spoken to Chairman Casada and he will not be moving the bill this session. Rep. Glen Casada, R-Franklin, agreed to sponsor the legislation at the request of Williamson County Commissioner Bob Barnwell, who launched the effort to water down the states Sunshine Law when he was president of the county commissioners association. http://www.tennessean.com/article/20120118/COLUMNIST0101/301180093/Gail-Kerr-Speaker-Beth-Harwellsays-sunshine-law-safe?odyssey=mod|newswell|text|News|p
Free-Press Editorial: Funding for health program should be based on results (TFP)
Even in the best economic times, when businesses are hiring workers and government revenue is growing from an expanded tax base, there still will never be enough tax dollars to fund every good idea. That is doubly true in a difficult economic period, such as the one that Tennessee and most of the rest of the nation are enduring. So lawmakers should be careful to spend money only on programs that yield clear benefits in an efficient manner. Tennessee lawmakers are eyeing, for example, a program called Coordinated School Health. It was in all Tennessee school districts by 2007, and it aims "to improve student health outcomes as well as support the connection between good health practices, academic achievement and lifetime wellness." The program focuses on issues such as childhood obesity. Among its other activities, it promotes not only team sports but lifetime exercise options such as jogging. It has also paid for workout equipment for teachers at some schools. In Hamilton County, Coordinated School Health has one full-time and two part-time employees, and it contracts with a dietitian. But with revenue limited, it is not certain that the program will be funded in the budget for the coming year. Certainly no one would say we shouldn't want students to be healthy, nor that their health has no effect on their academic performance. http://www.timesfreepress.com/news/2012/jan/18/program-needs-toshow-benefits/?opinionfreepress
Frank Munger: Pay freeze doesn't halt raises at Y-12 (Knoxville News-Sentinel)
Based on comments I've received, some employees at the Y-12 nuclear weapons plant clearly felt like they'd been victimized by the pay freeze at U.S. Department of Energy plants. Those feelings seemed to grow and amplify after it was reported that B&W Y-12 received an award fee of about $56 million for its management of Y12 in fiscal year 2011. Some salaried employees said top executives were getting theirs and the union folks were getting theirs, and it was the folks in the middle who weren't getting anything. B&W spokesman David Keim said Y-12 is still operating under a two-year pay freeze that was instituted by DOE in response to "budget deficits and national economic conditions." However, that doesn't mean there haven't been any pay raises, he said. "While no merit increase funds are available during this time, contractors are allowed to spend up to 2 percent of base payroll annually for salaried employees for promotions and adjustments based on market factors and individual performance," Keim said by email. He added: "Our goal is to use limited taxpayer resources wisely, doing what we can to sustain competitive wages, retain critical skilled employees and execute essential missions within the current, necessary budget constraints." As part of the pay freeze guidance, no pay adjustments were allowed for senior executives at Y-12 during FY 2011, Keim said. http://www.knoxnews.com/news/2012/jan/18/frank-munger-pay-freeze-doesnt-halt-raises-at-y/ 16
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