Lt. Governor Ron Ramsey
“I’m proud of Tennessee and the direction we’re headed,” Lt. Governor Ron Ramsey told the Hamilton County Pachyderm Club Monday. He said he is proud too that the state is getting things done efficiently and that other people look to Tennessee as a model. The reason, he said, is because the state has good, conservative Republican leadership.
He gave a “state of the state” update to the Pachyderm Club to let club members know where Tennessee stands on issues and how it got there. When he was elected in 2002 there was a Democratic majority of 18 to 15 in the Senate. The numbers have now shifted to a Republican majority of 28 to five, the second most Republican state behind Wyoming. He said with that comes responsibility - “you’re elected to make a difference.”
When the state finds itself short of money, he said, the first thought is not to increase taxes, but instead to cut costs, which has been done over the last five years led by Governor Bill Haslam.
Running the government this way has good results, said the Lt. Governor. Tennessee has a fully funded pension system. There is $40 billion available to make sure that state employees get paid, he said, adding that the state does not borrow much money and if it does, it is paid back. He is most proud that the citizens of Tennessee owe less money per capita than any other state in the U.S.
Tennessee is also known as being the most pro-business state in the nation, he said, because of court reforms that have been passed. Worker’s compensation reform and unemployment compensation reform are two he cited, saying that unemployment benefits used to be a way of life for many people when it was used as more than just a bridge between jobs as it was intended.
Mr. Ramsey said he is most proud of advances that have been made in education. Collective bargaining with unions has been removed and tenure reform has been achieved, with teachers having to earn tenure though an evaluation rating process. Higher education has been addressed by Tennessee Promise, which will allow graduates from high school to attend a two year school for free. This will also help the state by ensuring that there is a trained work force in the future.
Road issues still need to be dealt with, he said, to solve a problem that is approaching with infrastructure. There is no need to raise the sales tax rate, he said, because the increase in sales will bring in additional tax money. The same is true with property taxes because the value of property continues to rise, which will create more revenue from property taxes. The gas tax is different. It is paid per gallon sold, and with more fuel-efficient vehicles, he said fewer gallons are being sold. At the same time, the cost of materials used in road building and maintenance has continued to increase.
Another change needed is that every vehicle owner should pay their fair share for road work. As of now, vehicles used by Fed-Ex and UPS are exempt from paying a tax on gas they use. And, he noted that electric cars do not contribute. He said that he does not want to wait until the roads fall apart before doing something.
Tennessee, just two years ago, was the second most highly rated state for road conditions, only behind Texas. Texas owes $20 billion for roads they built years ago, he said, and Tennessee owes nothing, but is now in the “maintenance mode.” An increase in the state gasoline tax is needed, he said, emphasizing that the increase should come from the state level and not the federal government in order to avoid bureaucracy. He said that the state would spend the money better and he wanted it to stay in Tennessee.
Other positives he sees for the way Tennessee is managed is that taxes are already low. Some have been eliminated altogether such as the death tax and gift tax. He said his goal is to also eliminate the Hall State income tax for those over age 65, but if that $200 million goes away, it will have to be replaced.
There is no need to have any concerns about where the state will be in five years, said Mr. Ramsey. His message was to “let us take care of ourselves in Tennessee.”
Elected officials at the Hamilton County Pachyderm Club on Monday