The Tennessee ConserVOLiance

As Stacey Campfield (R - TN 18) notes in his recent post, ‘Easy Money’, under the Bredesen administration, state expenditures in Tennessee have grown from $19 billion in 2002 to 2007’s $28 billion dollar budget buster!. That’s a 32% increase in just 6 years!

Given Phil Bredesen (D) has traveled the state raising fears of $500 million shortfalls, adjustments to which run as high as an additional $500 million, it might be prudent to look at some numbers, especially since folks like NIT’s Christian Grantham are suggesting an Income Tax yet again.

Tax increases are generally justified by citing corresponding necessary increases in expenses. What justification exists for Tennessee’s skyrocketing budget? I understand things cost more over time. But 32% more? Has the cost of living in Tennessee increased 32% in 6 years? The Social Security Administration allowed Cost of Living Allowance increases averaging just 3.6% annually since 2002. Applied to to Tennessee’s budget that would have produced growth from $19 billion to just $22,200,588,000 for the same 6 years. Since Tennessee successfully raised the $28 billion for 2007’s expenses, had it also adopted SSA’s standards, the state would have spent more each year and still had a $5.8 billion surplus last year.

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