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Lundberg, Shipley defend opposition to state budget
Tennessee’s General Assembly “kicked the can down the road” (Tony Shipley) when it passed a 2010 budget last month that included only “token cuts” (Jon Lundberg), said the two upstate legislators who joined a small minority voting “no” on the measure. Shipley, a freshman Republican from Kingsport, and Lundberg, a Bristol Republican in his second term, joined just 10 other House members and one senator in opposition to the compromise budget that passed last month. Lundberg said that he doesn’t go to Nashville with the goal of doing things that will get him re-elected. “It’s to set good policy and make the decisions people need me to make, not based on being re-elected,” he said. “I stand very firmly behind the logic of this and I think most people would agree.” Compelling stories As Tennessee’s revenues, like those of most states, saw month after month of declines before and during the 2009 legislative session, state-funded agencies and interest groups prepared to defend their particular budget areas. “When people knew that we were going to cut the budget, all year long I had phone calls, I had letters, I had e-mails saying, ‘I know it’s a bad year, but here’s the reason we can’t afford to cut my program,’” Lundberg said. “The stories are indeed compelling, they are truthful. Not only do people believe in those programs but they accomplish important things.” Combined with the availability of federal stimulus money, those stories prevailed upon legislators, who passed a compromise budget totaling $29.6 billion (state dollars account for about $15 billion of that total, with federal money making up most of the rest). Technically, Lundberg said, legislators cut about 10 percent from those state appropriations. They managed to retain most programs at a level budget amount, though, by plugging stimulus dollars into the resulting holes. “I think that’s good PR, frankly, because technically we did cut state appropriations 10 percent, but if we had cut the pre-K program, you would have seen letters from parents saying we’re not taking care of children any more. “For politicians, this is what they like — the like consensus.” The vote gained the support of 80 percent of House Republicans and all but one Democrat, and was hailed as a humane act that staved off suffering for Tennessee’s vulnerable populations in a particularly vulnerable economy. But it also required dipping into the state’s reserves and funding some ongoing programs with federal stimulus money that will only last a year or two. Rose-colored glasses? Lundberg and Shipley said that when the state anticipates replacing the stimulus money with tax revenues, it is relying on optimistic projections for the speed and scope of any economic recovery. “When the federal stimulus dollars no longer exist, and the holes we have patched up now with the stimulus money are still there, we will have no choice but to make cuts, and potentially Draconian cuts in many ways,” Lundberg said. Shipley called the use of federal stimulus money to fund ongoing expenditures “magic money,” and said he favors cutting the state’s spending to a level in line with its income, which has dropped by 9.2 percent, or $955 million, over the past 11 months. “I didn’t come down here to cut deals on issues like fiscal responsibility and social responsibility,” Shipley said. “Those issues are black and white, and I think you’ve just got to balance your budget and be responsible.” Both men say they believe Tennessee’s economic development moves of late — many centered around “green” technology and the auto industry — bode well for the state’s long-term growth. They add, however, that these projects will take a number of years to ramp up. In the meantime, nearly $600 million in what Shipley called “magic money” will vanish from state coffers by 2011. “So we could run across it smoothly, but the pothole will be there in 2010, and it will be there until 2011 and until revenues go up and expenses come down,” Shipley said. He and Lundberg both point to the actions a typical family would take to adjust to, or prepare for, a decline in income. “Most people would say, I’m going to cut way back on everything, I’m not going to go out to eat, I’m going to make dramatic lifestyle changes,” Lundberg said. “We (the state) have decided, ‘That’s going to be bad in a year — but not now.’” The problem, Lundberg said, is that if some rather optimistic projections for economic recovery don’t materialize, the long-term pain will exceed that which a more conservative budgeting approach might have wrought. “A year from now, instead of taking a $5 million cut, they’re going to look at a $15 million cut. I think it would have been much easier to start laying that groundwork now, and not just with token cuts.” Shipley said while “all of us are trying” to make legislative decisions that promote economic growth, he foresees a protracted pullback in consumer spending — the key to revenues in sales tax-dependent Tennessee — as American families recover from the credit crisis and overspending. “Even if we see the rosy recovery that people are talking about we’re not going to see the kind of revenues they’re projecting, and when families are adjusting down you can’t allow government to adjust up — that’s just foolish.” Lundberg said he would have preferred a compromise that cut around half the revenue deficit, or $600 million, out of the FY 2010 budget. “It would cause some suffering, no question, but I think it would be far less suffering than we’re going to deal with a year from now. I hope I’m wrong and that a year from now, since we have this tax system based on sales, our jobless rate is cut in half and people are buying new cars and have huge amounts of disposable income. I just can’t wear those kind of glasses.” Repercussions? Lundberg clearly believes Tennessee’s citizens are going to face repercussions from the FY 2010 budget. Whether he suffers any for not “getting on board,” or whether budget supporters are held accountable if the state’s budget does meet an even greater crisis down the road, is anyone’s guess, he said. “It’s a non-story now, because nobody’s saying a year from now we’re going to make horrific changes,” Lundberg said. “Without a dramatic economic turnaround in the next 12 months, we’re going to have some substantial cuts to make. In an election year, not only legislative but gubernatorial, that’s going to be contentious and difficult.” For his part, Shipley said the entire five-part budget was irresponsible, from what he labeled a stealth tax increase in the form of a “technical corrections bill” to a decision to bond out a variety of projects “so that in addition to kicking the can down the road, we’ve included debt service.” Lundberg said Gov. Phil Bredesen gave him some hope early this year when he emerged as the only Democratic governor questioning the wisdom of using federal stimulus money to meet ongoing needs. “I’m surprised by some of the actions on the budget, because I think he is a very savvy business person,” Lundberg said. “I just don’t think this was a wise business move.” The governor didn’t see it that way, claiming in his March 23 budget address that he didn’t want to leave his successor “a budgetary cliff to fall off,” and wouldn’t with his proposed budget. An alternative with some deeper cuts was mooted in the Senate caucus, Lundberg said, but never made it out of the discussion phase. “It was clear that this budget was going to pass,” he said. “Our voices were muted by those who were championing the budget, and everyone behind them going, ‘It’s a great budget because it doesn’t cut me.’”
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Mr. Provost, did you even read what Jeff Adams said? I hope that was sarcasm on your part. It is ever-so-clear that he was criticizing the Republican party.
Jeff - Glad to see you're starting to come around and that you'll be voting the Republican ticket in 2010.
Again, I didn't single any of you out, you've merely made a name for yourselves critquing him in every single article. I was just merely wondering why you weren't on this one. Just that simple.
To Jerry from Nathan Vaughn's Web Boy "Remember that’s why you called me on one of your post". It seems that you are bored and have to single people out even when we haven’t said anything about Shipley or his right wing hardliner friends. I think the people of Tennessee should have a few years of republican rule just to give them a taste of what the nation went though for the last 8 years. It's the same narrow minded ideology that’s driving Shipley and his gang that laid waste to this country and it will do the same to the state of Tennessee and its people. Oh BTW I did capitalize my “I” this time.
I have a typo in my last post.... Should read "Just because you voted against the budget doesn't mean you voted for a ::shutdown::".
I ask you again to show me how I attacked anyone.
While I agree with your logic you reach the wrong conclusion with it due to your premises being false. The "compromise" came from the Democrats. By and large, the budget passed was the budget the governor sent to the assembly. I mean come on, the bills were carried in both chambers by Democrats! Senate Republicans forced a few cuts. Some were not happy with these "token cuts" and heavy reliance on "magic money", and I guess they chose to vote against it. Just because you voted against the budget doesn't mean you voted -for- the budget. They still had two weeks before the beginning of FY 09-10 before a shutdown would have been enacted, so it wasn't a do or die moment. That being said, had SR's forced the issue, democrats would have held their feet to the fire by forcing the shutdown. It would have been a very ugly political situation for both sides.
Have you taken a course in logic? You get on here on 7/19 at 1:09 pm and call me out by name and say "You guys not have anything negative to say about our elected officials using good business when deciding how our state should be run?" Well, since the article is about Shipley, and since Shipley took the different approach, I assume that you mean that Shipley used good business sense. Then, at 1:27 this morning you say "That's how I know it. I'm just thankful we had 12 people that had the balls to stand up and say "I'm astonished, honestly, that more of our elected officials didn't have the courage to stand up and fight for fiscal responsibility." But a paragraph above that, you say that the choice was compromise (which Shipley didn't take) and shutdown (which is the way Shipley's vote went). So basically you are saying that Shipley's vote was poor in that he voted for a shutdown....but in your initial vote you decided to attack a number (but by no means all) anti-Shipley people on this forum. It really doesn't compute there Jerry.
Where did I say the shutdown was an effective solution? I didn't. I said those were the two choices Senate Republicans faced. SR's knew a shutdown would be disastrous for Republicans in 2010. The media would have been all over them for forcing a shutdown the very first time they control the assembly since the mid-1800's. Obstructionists, loonatics, etc. Sure, the choices were shutdown or compromise, but in reality the only real choice was compromise.
Jerry, you actually think that forcing a government shutdown is an effective solution??? Honestly? Look at how well that worked for Newt and the GOP in 1996 and for the California Republicans this year. If you think a shut down is a viable option, you are in need of sympathetic consideration.
Come on folks, I was just having a little good natured fun with you. I don't really see a personal attack in my comments, just mentioning those who I frequently see commenting with the opposing viewpoint, just as you do about me. I'm sorry if I hit a sore spot with you guys simply by asking where you were, but honestly don't see how I could have. Perhaps you should follow your own advice, Mamma Mia, and "move on" (say, didn't your party bsetup a website to that tune back in the 90's?). No need to be so sensitive! I never claimed to know you, pass judgment on you, or anything of the like. In turn, you don't know me either, so saying I'm "by far one [sic]the most hateful individuals I have ever met" is quite the baseless statement. Perhaps you meant "Your opposing viewpoints really grind my gears, but I have no idea what kind of person you actually are". I, in turn, am quite thankful that all of you are so passionate about your viewpoints. I enjoy the discussion! Our right to disagreement and calm, civil, informed and respectful discussion of issues is one of the key principles that makes our country so great and our government so functional.
Jeff (and Mamma Mia) - If you could point out to us where I called you and your friends names have or been hateful in any way, I will summarily apologize. Instead, however, with you being the former representative's right-hand man, I think the victim tone in your comment gives us all a clue as to where the "play the victim" mentallity came from in the (losing) campaign plan you had for the former representative. Again, no name calling or personal attacks here (and there never have been from this humble commenter), just calling balls and strikes.
Should any of you wish to say that at some point I have called you names or attacked you personally, I challenge you to provide specific examples. Put up or shut up.
Richard - Glad to see your fiscal conservatism coming out. Allow me to help fill in the missing information that's causing you to draw the wrong conclusion as to how all of this went down.
The "compromise" came after Kent Williams caved to the pressure from Democrats and the governor to support their version of the budget. Senate Republicans, who I am sure Shipley, Lundberg and the House Republican Leadership worked closely with to help formulate their plan as I'm sure it was to be the overall Republican platform before Williams caved, had a fiscally responsbile plan passed that drastically cut spending and matched expenses with revenue and sent to the House. Unfortunately, it was summarily trashed as Williams made it clear he would not support such a measure. It was at this very moment that the House Republican leaders' hands were undoubtedly tied. The Dems had 49+Kent = 50 = majority. Republicans were powerless to stop it in that chamber. Just as you said in your comment, "The Democrats had the numbers, so those went nowhere."
This is where the compromise came in. Senate Republicans (and House Republicans using their leverage their colleagues in the other chamber had) could have brought the state government to a shutdown by refusing to pass such a fiscally disastrous budget, but instead tried their best to work with the Democrats that still control the House to reign in the budget - and did to a limited degree. What all went on in those discussions is and will be a mystery to us lowly outsiders.
All of this was reported in great detail in the mass media as the legislature finished its work a month ago or so. That's how I know it. I'm just thankful we had 12 people that had the balls to stand up and say "Hey, this is a terrible idea, and I'm not just going to go along with it." I'm astonished, honestly, that more of our elected officials didn't have the courage to stand up and fight for fiscal responsibility.
I sure hope you enjoyed your wontons. Ming Garden is indeed a Kingsport treasure.
Mr. Brown, you should advertise your SHAME meetings. Republicans and Democrats alike would love to join, I'm sure.
Jerry, Thanks for the invite, please review my comment history,I have made exactly 21(now 22) comments online since March, some of which had NOTHING to do with this group or subject, and have passed on MANY articles referencing one particular person, so I am sorry but I don't believe I am the blow hard grand-standing for party not principal. Compare my remarks to your more than double-in the same time frame, all of which spew your hate. Please do not reference me in the future. You do not know me and if I choose to comment on this or any other subject...THAT IS MY RIGHT! and I refuse to lay down and succomb to the one-sided, mobster attitude that you and your cronies promote. I have said it before and I'll say it again, you are by far one the most hateful individuals I have ever met, there is not question as to why you are such a strong supporter of this man you bow down to, you are two peas in a pod. It's not about truth, it's not about what's right and it has show that values have no relation to either of you, it's about mobster power, greed and control, nothing more, nothing less, I am sorry to say, but people like you scare the hell out of me and the "values" I am expected to raise my child with. If these "values" are what is expected of me, then you can have them because I for one sure don't need them. With friends & representatives like you & your friend, who needs enemies. Now have a nice night and please move on, enough grand-standing.
Sorry Jerry. We had a SHAME (Shipley Haters Against More Extremism) meeting over at Ming Garden and it went a little long. Man, those crab wontons are outstanding! Anyway, while I am kind of glad that Shipley voted against this, I note that this was a compromise bill. This means that both parties worked together to pass a budget. In all honesty, while I love fiscal conservatism and take a back seat to no man in my hatred of the stimulus package, doesn't it make more sense to be a part of the budget negotiations to advocate for a conservative position? I mean, we all know that Eric Cantor and the Republicans in the House tried to put alternative measures through that would have actually created jobs and cut taxes. The Democrats had the numbers, so those went nowhere. In the state House, it is a 49-49-1 split. Why didn't Shipley start negotiating for his brand of fiscal conservatism and try to get the caucus to go along with him? I imagine it is because no one will listen to him and they only use him whenever they want to put up a bill to appeal to the social conservative base.
The real question is where were the other Republicans on spending money that we don't have? If they run their personal finances the way the state and federal government run theirs, they don't deserve one shed of public trust. If they are personally responsible with money, then why not apply the same standard in Nashville?
"The use of stimulus money to patch holes in Tennessee's budget has given the State some wiggle room to hopefully fix some of it's revenue problems."
We have an economy that has come the closest to depression in many years, and the TN state legislature is worried about guns in bars and all that nonsense. These morons should be prohibited from using stimulus money to fill their funding potholes, largely because they sat on their asses and addressed nothing about the state's economy.
Personally, I think its a ploy. They are legislatively screwing around while Bredesen is in office, and they will get to start working on the economy "for the citizens of Tennessee" just in time to help the republicans running for the governor's chair.
"I for one am surprised we don't have Mamma Mia, Jeff Adams, Richard Brown, and the rest of the gang in here bashing Shipley and Lundberg for standing up for fiscal conservatism and commonsense governance."
They don't have to rush onto here with their comments, because the Shipley diaper changers like Jerry beat them to the keyboard every time.
I know you are feeling VERY lonely when we are not around, but it's ok we know there's not alot of Shipley supporters to keep you company. Anytime you may needs us Jerry feel free to call us names and twist anything that will keep ypu happy till we return.
I for one am surprised we don't have Mamma Mia, Jeff Adams, Richard Brown, and the rest of the gang in here bashing Shipley and Lundberg for standing up for fiscal conservatism and commonsense governance. You guys not have anything negative to say about our elected officials using good business when deciding how our state should be run? Your silence on this issue is deafening.
I for one, like Mr. Haynes, am thankful to have a representative that understands the consequences this kind of budgeting has on our state's longterm interests and is willing to stand up and fight the good fight.
The use of stimulus money to patch holes in Tennessee's budget has given the State some wiggle room to hopefully fix some of it's revenue problems. However 2011 is closer than you think and I don't for a minute count on rosey predictions of an improving economy miraculously bringing in more tax money. I pray the legislature has the wisdom and courage to do what is necessary to clean us this mess. If they can't just watch the disaster happening in California's State government because it's all going to play out the same way here in Tennessee.
Let me be the first to say thank you to the both of you. Paying debt money with debt money makes no sense.