Tennessee government in partial shutdown

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Posted 12:16PM on Monday, July 1, 2002

NASHVILLE, Tennessee - Tennesseans awoke Monday to find their government in a partial shutdown. Lawmakers failed to meet the requirement of the state constitution to pass a balanced budget by the start of the new fiscal year, which begins Monday. During rare weekend sessions, the House and Senate approved a bill that gave Gov. Don Sundquist power to keep essential services funded through Friday while they continued to try and break their stalemate over the best way to resolve an $800 million deficit in next year's budget. Sundquist held out to the last minute, and then signed the bill into law by midnight Sunday. "We've been at this four years. Every day we put it off we do a little more damage to Tennessee families," Sundquist said. "We'll do everything we can to provide basic services for the health, security and welfare for the citizens of Tennessee" during this time. Sundquist said he was discouraged that the Legislature had not made a decision on an income tax as a way to resolve the state's financial troubles, despite four regular and two special sessions. Tennessee is one of nine states without a broad-based personal income tax. The shutdown did not begin at midnight, according to the Senate, which turned back the clock to 11:45 p.m while it debated its next step. Eventually, members conceded the shutdown. Outside the Capitol, car horns blared and people shouted on bullhorns as more than 100 demonstrators for and against an income tax rallied and a knot of state troopers stood guard. A group of about 50 Tennessee State University students joined income tax proponents and were met with shouts of "go get a job" by the tax opponents. "I came out to support our school," said Melissa Hardimon, a student from Peoria, Illinois. "I wanted to make sure we still have a school to go to." As part of the shutdown, Tennessee State and other public universities and colleges will cancel or postpone summer classes until the state's finances are resolved. The Sundquist administration began calling state employees Sunday to tell them not to show up for work this week if lawmakers failed to pass a budget by midnight. Some 22,000 workers were expected to be told to stay home. State parks will remain open during the busy July 4 week -- though no new reservations will be taken -- and college systems will use existing funds to allow minimum operations. Sundquist has the power to order expenditure of funds for things not in the bill as long as it is to protect public safety and welfare. During the shutdown, state government will be limited to such services as highway patrol, prisons, mental health, child support and TennCare, the state's health care program for the poor and uninsured. State government will continue to pay retirement benefits, employee health insurance and lawful claims against the state, such as workers compensation cases. The Highway Department will stop road construction, and the Department of Public Safety will stop issuing drivers licenses. The Department of Tourist Development will close for the week, while the Department of Mental Health and Developmental Disabilities will maintain a full medical staff at its institutions but reduce administrative staff. Tony England, a supervisor with the Department of Human Services, said two or three of the eight people he supervises -- all new hires -- will be on furlough this week. "I hate it that our recent hires won't be able to come in," he said. "This is not a good way to get them started."