posted March 24, 2009
The Tennessee Republican Party has released the following statement regarding the budget proposals announced Monday night by Gov. Phil Bredesen:
"As the party that believes low taxes and less government spending is the best foundation for economic growth and expanded personal freedom, Tennessee Republicans are pleased that Gov. Bredesen has finally recognized that the rapid spending increases he has demanded since taking office six years ago are unsustainable without eventually requiring big tax increases on the people who pay the state's bills.
"When Phil Bredesen became governor in January 2003 he inherited a state budget of $20.7 billion. Five years later, Bredesen had ballooned the state budget to almost $30 billion, an increase of approximately 44 percent. During that same five years, per capita personal income in Tennessee rose just 21 percent, from $28,276 in 2003 to $34,330 in June 2008, according to the Bureau of Economic Analysis, U.S. Department of Commerce.
"In other words, Gov. Bredesen has expanded the state budget at twice the rate of growth of the incomes of the people who pay for it. It doesn't take an advanced math education to understand that state government can not endlessly increase spending faster than taxpayers' incomes are growing without eventually needing large tax increases or big budget cuts.
"Earlier this year, Gov. Bredesen bowed to that reality and announced he would be cutting spending, but his budget proposal defers the crucial decisions on spending priorities and cuts for another two years by relying on a one-time injection of money from Washington. That means the governor is proposing to continue paying for recurring services he has identified as worthy of cutting, by using a one-time windfall of federal money financed by Barack Obama and the Democrats' reckless fiscal policy of adding trillions of dollars to the national debt and the future tax burdens of all Americans
"At the same time, while Gov. Bredesen talks about the need to slim down state government to reflect current economic realities, he is proposing two tax increases – one which targets thousands of small family-owned businesses and the other which will increase healthcare insurance costs for countless Tennesseans – in order to avoid making spending cuts.
"In essence, Gov. Bredesen is telling the people of Tennessee that their state government is overweight and needs to go on a diet – but he's asking the legislature to stop at the Dairy Queen and buy it a supersized Blizzard and ignore the need to exercise.
"You don't reduce government overspending by giving it access to more tax dollars any more than you lose weight by eating more and put off going to the gym.
"At a time of consensus that overspending coupled with the economic downturn is no time to increase taxes, Bredesen's budget is seasoned with what we've come to expect from Big-Government Democrats in Washington and Nashville – more tax increases on hard-working people while running from the tough choices. Unfortunately, the taxpayers again are the Biggest Loser."
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