Monday, November 23, 2009

Bredesen's TN budget options are grim

Now the difficult decisions begin.
State officials have suggested releasing nonviolent felons and closing group homes for children. They've called for increases in tuition at state universities and caps on benefits within the state's medical insurance system.

But as Gov. Phil Bredesen and his advisers draw up their budget proposal for the fiscal year that starts July 1, 2010, it's uncertain how many of the dramatic measures described in hearings last week actually will be implemented.

"It's a difficult situation," he said. "I'm obviously going to try to mitigate the worst effects of this and move forward."

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State officials have said the government may need to trim as much as $1.5 billion from the $29 billion spending plan the state legislature passed in June. Since that budget was passed, tax receipts have continued to fall. Meanwhile, the federal stimulus program will run its course next year, after spending nearly $5 billion in the state.

Bredesen has been asked to cut as much as 9 percent from budgets. Most agencies presented their proposals last week at a series of budget hearings, including the following:

• Releasing as many as 4,000 nonviolent felons from Tennessee's prisons and local jails, which would save the Department of Correction about $53 million.

• Placing caps on TennCare coverage, such as limiting recipients to 15 lab tests and 15 outpatient procedures a year, to save about $380 million.

• Closing the Clover Bottom Development Center, cutting $36 million from the Division of Intellectual Disabilities Services budget.

• Downsizing youth development centers and closing several group homes, which would reduce the Department of Children's Services budget by $76 million.

• Increasing tuition at state universities by as much as 5 percent.

Ongoing process

Several more such proposals will be presented today at hearings on the budgets for six agencies, including the Tennessee Bureau of Investigation, the Department of Mental Health & Developmental Disabilities and the Department of Transportation.

Not all of the proposals will go into the budget that Bredesen plans to present to the legislature by Feb. 1.

Bredesen said his advisers will begin meeting immediately to start writing his administration's budget.

He declined to say which ideas he is likely to approve, but he also said that the cuts would be spread throughout the government.

"I've certainly heard things here that I thought were sensible to do, and others I said, 'I'm not going to do that. I'm going to find some way to avoid doing that,' " Bredesen said.

"You need to ask everybody to take a hit."

Material from The Associated Press was used in this report. Chas Sisk can be reached at 615-259-8283 or csisk@tennessean.com.



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