Tonight, in my role as Governor, I recommended a responsible balanced budget to the General Assembly that will allow the State of Tennessee to cope with revenue shortfalls without raising taxes. It is the right approach to help us get through the wartime economy. And it is consistent with the way families across Tennessee are balancing their own budgets during these challenging times.

Now, I need YOUR support as we work to pass this budget and better manage state government. As a citizen, there are a number of things that YOU can do:

1.Write an opinion column or letter to the editor in your local newspaper supporting our plan to bring state government's expenses in line with the reality of sluggish revenues.

2.Call in to talk-radio programs to let listeners know our budget reduces the size of government while still investing in key priorities such as public education and homeland security.

3.Email, write or call your state legislators and local officials to inform them that you fully support our efforts to make budget reductions in a fair and evenhanded manner.

4. Talk to your family, friends and neighbors--Democrats and Republicans--and tell them we are working hard to better manage state government.

Most important, realize that you are on the front lines of public opinion. Pleased be armed with the facts so that you can clarify any misinformation you might hear about our budget. Below are a few talking points and numbers that might help. You can view my entire speech to the General Assembly, and other information about our budget, by visiting my official web site at www.state.tn.us/governor.

Thank you for your continued support as we work together to make this great state even better.

Sincerely,
 
Phil Bredesen
Governor of Tennessee

Bredesen's 2003-04 Budget

"The Facts"

Total Budget: $21.46 billion, including $9.79 billion in state appropriations, $8.24 billion in federal funds and $3.43 billion in revenues from tuition, fees and other sources.

Spending: Total state appropriations will decline for just the third time in 30 years. It happened previously in the 1983-84 fiscal year, and again in 1992-93.

Key Reductions: $355 million, including across-the-board cuts to state agencies and departments, highway funds and shared taxes with local governments.

Essential Improvements: $629 million, including additional funds for K-12 education, homeland security, correction and TennCare.

Bredesen's 2003-04 Budget "The Message" Common-Sense Approach. Every day, working families across this state manage to keep household expenses in line with their household income. There's no reason the State of Tennessee can't do the same. In the past, part of state government's problem was that it simply didn't operate that way. Governor Bredesen's budget changes all of that. His premise is simple: Take a conservative look at how much tax revenue we expect to collect, and then plan to spend that much and no more. This is the first balanced budget submitted in four years that does not rely on new taxes.

Truth In Budgeting. Governor Bredesen's proposal adopts a conservative style of budgeting. Changes include: Relying on revenue projections at the mid-range of economic-forecasting models rather than overly optimistic assumptions. Carefully accounting for key recurring expenses such as annual increases in the cost of providing health benefits to state employees. Eliminating the practice of permanently "overlapping" positions÷accounting for multiple employees under a single position.

Fair and Evenhanded. Governor Bredesen's budget ensures that no single group or entity is asked to shoulder a disproportionate share of cuts. As part of that guiding principle, he is asking for 9% across-the-board reductions in a range of areas including state agencies and departments, the state highway fund and revenues the state shares with local governments.

Cutting shared revenues with local governments will result in a minimal impact on most cities and counties relative to their general fund budgets. Statewide, reductions in state-shared revenues total $60.7 million spread out among hundreds of cities and counties. By comparison, reductions in state departments total more than $207 million. The Governor is asking everyone to do their part in the wartime economy.

Smart Reductions. Governor Bredesen's budget focuses on making cuts in a responsible manner that will not undermine vital services, such as public education and homeland security, or result in shutdowns of government operations, such as state parks. In fact, it calls for a number of improvements including:

1. Fully funding Tennessee's Basic Education Program.

2. Improving salaries for more than 17,000 teachers in 75 school districts.

3. Investing more than $8 million in new homeland security and safety initiatives.