DEMOCRATS CALL FOR TUITION FREEZE, FOOD TAX CUT WITH EXCESS REVENUES
NASHVILLE – Senate and House Democrats called on Governor Bill Haslam Wednesday to convene a special legislative session to freeze tuition rates and cut the food tax, using part of the $225 million in excess revenues the state has collected.
“Now is the time to provide tax relief for all Tennesseans, especially those who are training for new jobs that require a college degree,” said Senate Democratic Caucus Chairman Lowe Finney. “If we’re serious about growing jobs and putting people back to work, then we shouldn’t be raising fees on people who want to work.”
Caucus leaders calculated that, based on numbers provided by the Tennessee Board of Regents and the University of Tennessee, $78 million of the excess revenues would cover all proposed tuition increases at state colleges and universities. Democrats made the announcement as UT trustees met to discuss an average 6 percent tuition increase.
The Board of Regents, which oversees six state universities as well as community colleges and technology centers, proposed similar tuition increases last week.
“It is wrong to tax people who are going into debt to improve their lives,” said Senate Democratic Leader Jim Kyle. “A tuition increase is simply a tax on students. The money is there. The question is whether the political courage on the other side is also there.”
Democrats also pushed for an additional 1 percent decrease to the sales tax on groceries, which would provide $85 million in tax relief for all Tennesseans. Lawmakers reduced the sales tax by .25 percent during the regular session, meaning Tennesseans would save only 25 cents per $100 of groceries.
“We can provide Tennesseans four times the amount of tax relief in a matter of days,” said Senator Tim Barnes of Clarksville. “It would mean a lot to people in my district who are barely making ends meet as it is.”
The remaining $62 million in excess revenues would go into state reserves.
“This is about providing real results to every Tennessean and telling college students of all ages that we support them,” Finney said. “That’s the message that should be coming from every lawmaker’s office, regardless of political party.”