►
Description
House Appropriations Subcommittee- February 14, 2022- House Hearing Room 1
A
C
Yeah,
it's
awesome,
I'd
like
to
call
the
finance
ways
and
means
appropriations
subcommittee
to
order
on
february
14th
valentine's
day
2022..
Madam
clerk,
we
please
call
the
roll.
C
Thank
you,
members.
Just
for
your
information.
Today's
discussion
is
going
to
be
on
sales
tax
reductions.
Many
of
us
have
the
opportunity
to
listen
to
funding
board
meetings
and
find
out
how
the
the
governor's
staff
f
a
revenue,
determine
what
we're
going
to
do.
As
far
as
taxation
is
concerned,
as
many
of
the
members
know,
the
amount
of
taxes
that
we're
collecting
is
it
an
all-time
high,
which
is
fantastic.
That
means
we're
doing
a
lot
of
things
right.
C
The
purpose
of
the
discussion
today
is
to
really
look
at
back
in
2002,
the
tennessee
general
assembly
was
under
some
constraints
as
it
relates
to
budgets.
We
increased
our
local
sales
or
our
state
sales
tax
from
six
percent
to
seven
percent.
Because
of
the
demand
that
we
needed
for
revenue
now,
that's
been
20
years
later.
The
idea
is,
if
we
look
back
as
to
what
the
future
may
hold.
C
I
know
we
have
issues
as
far
as
pressure
from
inflation,
the
cost
of
living
raises,
and
things
like
that
and
the
possibility
of
raising
interest
rates
in
the
summer,
and
so
I've
asked
the
department
of
revenue
and
fna
to
come
and
tell
us
a
little
bit
about
what
this
process
would
look
like.
This
is
very
awkward
for
them.
I
spoke
with
them
previously
everybody
likes
to
retain
revenue
whenever
you
can,
but
I
appreciate
them
being
here
today.
C
Gentlemen,
if
you
will
we're
going
to
go
out
of
session
and
if
you
will
come
have
with
me
today.
F
a
commissioner
butch
ely
revenue,
commissioner
david
giaragano.
C
If
you
will
please
introduce
yourselves,
the
members
will
know
that
the
white
paper
distributed
to
your
office
is
on
the
dashboard,
as
well
as
a
presentation
that
you're
seeing
before
us.
Gentlemen,
thank
you
for
coming
this
long
budget
full
of
monday
afternoon,
so
hey.
Thank
you.
F
Thank
you,
chairman
williams,
appreciate,
I
appreciate
you
having
us
today
and
members
of
the
committee.
Thank
you
always
a
pleasure
to
to
to
speak
before
you
as,
as
you
said,
commissioner
georgeno
is
here
and
is
more
more
expert
than
I
am
in
in
this
question,
but
I
wanted
to
at
least
settle
set
a
little
bit
of
the
table
in
some
of
the
discussions
that
we
had
in
in
the
funding
board.
As
you
mentioned
chairman,
and
so
I
would
say
that.
F
First,
first
and
comment
to
one
of
your
questions
about
holding
on
to
taxes
or
not
really
really.
Philosophically,
we
certainly
do
not
necessarily
feel
like
that's
what
we
we
should
do,
based
on
where
it's
taxpayers
money
and
and
we
need
to
utilize
those
dollars
as
efficiently
and
effectively
as
possible.
So
I
think
that
what
we
heard,
though,
during
the
funding
board
process
back
in
the
fall
every
you
know.
F
We
heard
from
every
from
from
the
economist
from
the
federal
reserve
from
your
physical
review
and
every
single
person
expressed
caution
as
being
our
watchword,
as
we
entered
into
this
23
budget
process.
F
Every
single
entity
that
that
testified
before
the
funding
board
indicated
that
they
felt
like
that.
Our
growth
would
be
down
or
less
in
in
growth
in
fiscal
year
23
than
it
was
this
current
year
in
22.,
and
so
so.
Certainly
as
we
entered
this
budget
process,
caution
was
has
been
and
was
a
watchword
as
we
as
we
approached
it.
F
F
That
a
reduction
at
this
time
is
something
that
that
I,
I
certainly
would
not
recommend
and
that,
as
we
looked
at
it
with
our
state
economist
that
we
felt
like
that
now
was
not
the
time
that
we
needed
a
year
kind
of
of
level
set
of
of
a
good,
stable
environment.
Where
we
all
knew
kind
of
where
we
stood
before
before
embarking
on
either
spending
too
much
of
the
recurring
dollars
that
that
we
have
this
year.
F
As
you
know,
the
budget
that
we've
got
before
you
holds
back
1.3
billion
dollars
of
recurring
funds,
so
that
so
those
funds
will
be
available
as
we
go
into
the
next
fiscal
year
cycle
in
24.
So
we're
not
even
spending
all
the
funding
that
could
be
available
this
year
in
fiscal
23,
and
I
certainly
similarly
don't
feel
like
that.
F
Cutting
that
revenue
stream
would
be
the
prudent
thing
to
do
in
in
a
year
of
uncertainty.
So
so
I
I
think
you
you
did
summarize
the
general
feeling
overall
chairman
and
with
that
I'll
I'll
turn
it
over
to
commissioner
jared
gaino
and
let
him
present
the
data
that
you
asked
for.
E
Thank
you,
mr
chairman,
members
of
the
committee,
really
appreciate
the
opportunity
to
be
here
again
for
the
record
david
gergano,
commissioner
of
revenue.
I'll
try
to
be,
you
know,
fairly
succinct.
I
have
about
seven
or
eight
slides,
I'm
gonna
kind
of
a
little
bit
of
the
big
picture,
a
little
bit
of
the
nuts
and
bolts
and
some
figures
that
the
committee
specifically
asked
for.
E
First
of
all,
as
commissioner
ely
zarya
alluded
to
this
is
a
it's
a
fairly
familiar
slide
that
many
have
seen
just
a
pie
chart
with
the
general
structure
of
our
state
tax
revenue
allocation
with,
I
think
of
it,
as
is
currently
the
sort
of
the
80
10
10
rule.
In
my
mind,
meaning
80
of
our
revenue
comes
from
sales,
tax
and
corporate
franchise
and
excise
tax,
with
10
being
road
funds,
and
then
a
remaining
sort
of
10
percent
other
and,
as
commissioner
ely
mentioned,
I
think
appropriately.
E
So
if
you
really
set
the
road
funds
aside
as
being
something
different,
then
that
sales
tax
percentage
really
is
is
seventy
percent
and
sales
and
f
and
e
combined
is
really
ninety
percent
of
of
the
funds
that
fund
general
state
operations-
and
you
know,
as
I've
said
many
times,
a
lot
of
states
have
at
least
three
major
sources
of
revenue.
We
really
have
two
which,
which
is
fine.
It
just
means
that
we
need
to
be
sort
of
cautious
with
the
long-term
stability
of
those
two
taxes
in
particular.
E
Sort
of
some
of
the
the
basic
structure
of
the
sales
tax,
as
you
know,
we
have
a
state
rate
of
seven
percent.
Generally,
that's
on
items
of
tangible
personal
property,
a
limited
number
of
services,
things
like
repair
of
tangible
personal
property,
amusements
telecommunications.
That
sort
of
thing
the
rate
on
food
and
food
ingredients
is
four
percent,
as,
as
you
know,
sometimes
there's
some.
E
E
There
are
some
specific
exclusions
being
alcoholic
beverages,
tobacco,
candy,
dietary
supplements
and
prepared
food
and
prepared
food
would
obviously
include
restaurant
food
and
that
sort
of
thing
there
is,
of
course,
all
that
is
the
state
rate.
There
is,
in
addition,
a
local
option
rate
that
varies
up
to
two
and
three
quarter
percent
department.
Revenue
collects
that
on
behalf
of
local
governments
and
distributes
that
back
to
them.
E
Continuous
sort
of
the
overview,
where
is
the?
Where
does
the
money
go,
and
the
seven
percent
state
tax
rate
sort
of
distributed?
As
you
see
in
the
slide
one
percent's
earmarked
to
the
general
fund,
that
was
from
the
2002
increase.
I
believe,
mr
chairman,
you
alluded
to
a
half.
Cent
is
exclusively
to
the
education
fund
and
the
remaining
five
and
a
half
percent
is
distributed
via
a
formula
in
the
statute.
E
Getting
to
some
of
the
recent
collections,
I
think
you
can
see
in
this
slide
the
sort
of
the
80
10
10
distribution.
Again.
E
What
I
would
really
sort
of,
I
think,
what's
what's
likely
on
many
people's
minds,
is
that
15
year-over-year
growth
in
sales
and
use
tax
when
you
compare
fy21
to
fy20,
that
number
certainly
does
stand
out.
Obviously,
if
you
look
at
the
column
to
the
far
right,
the
total
sort
of
point
contribution,
you
can
see
that
that
sales,
tax
growth
drove
the
14
overall
growth
for
that
year.
But
there
are
some
things
I
would.
E
I
would
really
point
out
and
urge
folks
to
to
take
note
of
with
respect
to
that
number.
E
I
can
identify
at
least
three
things
that
I
would
look
at
as
sort
of
one-time
events
that
are
helping
drive
that
number,
the
first
being
just
the
disruption
from
covid
when
we
look
at
a
year-over-year
growth
rate,
we're
obviously
comparing
fy21
to
fy20,
and
we
all
know
what
happened
in
you
know
march
april
may
of
fy
20.,
so
we're
really
comparing
21
to
an
it's
a
it's
an
artificially
inflated
growth
rate.
E
If
you
will,
because
it's
measured
against
that
disrupted
period
when
we
had
all
the
closure
and
all
the
lack
of
activity,
so
that's
a
significant
factor
that
really
doesn't
provide
an
accurate
sort
of
picture.
If
you
just
look
at
that
percentage,
growth
rate
number,
in
addition
to
that,
and
also
quite
significant,
is
the
new
marketplace
facilitator
law.
I
think
a
lot
of
people
are
familiar
with
it's
part
of
the
sort
of
the
end
result
of
the
the
wayfarer
decision
regarding
out-of-state
businesses.
E
Collecting
our
sales
tax
for
us
and
in
october
of
20,
is
when
the
marketplace
facilitator.
Part
of
that
went
into
effect.
So
in
fy21
we
really
had
three
full
quarters
in
which
these
marketplace
facilitators
were
collecting
tax
for
the
first
time
and
so
we're
comparing
those
very
substantial
collections
in
fy
21
to
fy20
when
that
did
not
exist
at
all.
So
that's
really
a
I
mean
they're
going
to
continue
to
collect,
but
that
growth
comparing
year
over
year
is
a
one-time
event
and
it's
a
very
significant
amount
of
money.
E
Third,
I
would
we
all
are
aware
of
the
inflation
and
we
did
some
looking
in
the
second.
During
the
second
half
of
fy21,
the
inflation
rate
was
86
percent
higher
than
the
same
period
in
fy
20..
It
actually
continued
to
go
on
up
from
there,
but
if
you
just
again,
comparing
21
to
20,
the
inflation
rate
was
significantly
higher
and
also
drove
that
number.
E
E
The
request
was
for
what
the
impact
would
be
in
fy19
2021
if
the
rates
had
been
lower,
so
the
the
the
quick
way
to
look
at
that
or
is
in
the
two
bullets
at
the
bottom,
a
one
percent
reduction
in
the
standard,
seven
percent
rate
during
fy21
would
have
been
a
1.5
billion
dollar
reduction
in
in
revenue
and
that's
about
8.5
of
the
entire
amount
that
department
revenue
collected.
E
E
E
And
finally,
mr
chairman,
this
is
a
map
of
the
state
and
local
tax
collections
per
capita
across
the
country,
and
you
can
see
that
tennessee
is
50th.
We
are
the
have
the
lowest
per
capita
state
and
local
collections
in
the
country,
and
I
think
something
that
was
interesting
to
me.
We
take
spend
a
little
time
looking
at
the
at
the
map,
the
next
lowest
state,
the
next
state,
with
the
with
the
next
lowest
state
local
collections
per
capita,
is
alabama.
E
When
you
start
looking
at
alabama
is
seven
percent
higher
than
tennessee
and
if
you
look
at
number
so
we're
50th,
alabama's
49th.
If
you
look
at
south
carolina,
which
is
48th,
their
per
capita
tax
is
13
higher
than
tennessee.
So
it's
not
just
that
we
are
the
lowest.
There
is
actually
a
gap,
and
if
you,
if
you
look
at
our
highest
bordering
state,
would
be
virginia
and
their
per
capita
state.
Local
tax
is
52
percent
higher
than
tennessee,
and
notably
that
only
puts
them
at
about
the
median
of
all
states.
E
So
I
think
some
interesting
detail
when
you
sort
of
study
that
map
a
little
bit-
and
you
know
in
addition
to
that.
We
know
that
from
a
long
history
that
state
revenue
growth,
our
based
on
our
structure,
revenue
growth
in
tennessee
does
not
keep
pace
with
the
growth
in
the
economy
over
time.
E
If
you
just
compare
today
to
the
mid
2000s
state
and
local
revenue
as
a
percentage
of
personal
income,
has
declined
by
more
than
17
and
that
it
will
continue
if
nothing,
even
if
nothing
changes
that
will
that
will
continue
to
decline
over
time.
So
I
think
the
takeaway
is
that
you
know
we,
as
commissioner
ely
alluded
to.
E
We
would
urge
caution
from
our
our
perspective,
as
as
the
as
the
revenue
collecting
agency,
we
would
urge
caution
about
reducing
our
largest
source
of
revenue
during,
what's
clearly
unusual
circumstance,
letting
that
letting
that
play
out
further
and
particularly
when
the
the
long-term
trend
is
downward,
even
without
any
change
in
the
rates.
C
You,
mr
gerard
gaino,
I
do
have
a
question.
Then
I've
got
some
other
people
with
questions.
Do
you
know,
of
course
I
don't
think
any
of
us.
Maybe
representative
miller,
was
here
in
2002.
I
don't
know
if
he
was
or
not,
but
the
the
based
upon
that
you're.
The
commissioner
either
he's
been
doing
a
fantastic
job
for
two
years
now.
I
guess
the
administration's
in
their
fourth
year
budgets.
I
guess
the
question
is:
has
there
been
any
discussion
over
since
2002
about?
Should
we
cut?
C
I
know
mr
thurman
is
here
as
well?
Do
you
do
you
remember
any
of
those
discussions?
Have
we
ever
considered
in
the
past
about
a
reduction
other
than
the
food
tax?
I
think
was
one
percent
from
five
to
four
in
2017.?
Is
that
that's?
How
do
those
discussions
take
place
from
your
side?
Yeah.
E
I
would
certainly
defer
to
mr
thurman
or
or
commissioner
e
lee,
or
you
know,
and
I
I
haven't-
I've
been
around
the
department
since
2002,
but
not
in
not
in
this
level
of
position.
E
You
know
in
my
in
my
experience,
the
discussion
generally
has
gravitated
toward
the
food
tax
and-
and
I
think
that's
objectively
demonstrated
in
the
fact
that
it
was
actually
it's
actually
been
reduced
in
2007,
12,
13
and
17
to
get
from
sort
of
the
six
percent.
If
you
as
you're,
alluding
to
in
2002
the
the
rate
was
increased
from
six
to
seven,
but
food
was
left
at
six
and
then
it's
been
decreased
four
other
times
to
get
to
the
current
four
percent
rate.
C
Thank
you,
chairman
zachary.
G
Thank
you,
mr
chairman,
good
afternoon,
commissioners
feel
like
we've
seen
you
guys.
G
Over
the
last
couple
of
weeks,
mine
is
more
just
a
a
philosophical
question,
so
tennessee
is
thriving
because
we
keep
taxes,
low,
keep
regulation
low.
We
keep
spending
under
control
ever
so
I'm
four
terms
in
and
we
every
year
I've
been
here,
we
have.
We
have
had
some
level
of
surplus
now,
obviously,
over
the
last
couple
of
years
it
has
grown
significantly,
but
we're
coming
out
of
a
worldwide
pandemic
that
basically
shut
the
economy
down.
Our
state
is
one
of
seven
states
that
grew
economically.
G
We
are
one
of
the
five
most
visited
states
during
a
pandemic,
only
non-beach
state,
if
you
look
at
tax
cuts,
coolidge
in
24,
jfk
and
64
reagan
and
even
trump
to
a
certain
extent,
every
time
we
cut
taxes,
it
leads
to
additional
economic
growth
because
it
leads
to
additional
spending.
It
increases
revenue
because
we're
cutting
taxes,
we're
putting
more
money
back
in
the
economy
of
our
state,
empowering
our
citizens
to
invest
and
take
steps
with
their
own
capital.
G
G
I
went
back
preparing
for
this.
I
went
back
and
listened
to
some
audio
from
milton
freeman.
I
listened.
I
actually
went
back
and
looked
at
a
book
that
calvin
coolidge
wrote
about
his
times
for
cutting
tax
cuts
and
whether
it
was
in
24
or
82
or
under
president
trump.
The
conversation
was
from
the
economist:
well
now's,
not
a
good
time
to
cut
spending.
Now
I
mean
now's,
not
a
good
time
to
cut
taxes
because
of
the
uns,
the
uncertainty
or
whatever
may
be
pending.
G
G
So
when
does
it
reach
a
point
where
we
say
you
know?
What
now
is
the
time
now
is
the
time
general
assembly.
Let's
take
some
steps
to
put
those
resources
back
in
the
pockets
of
the
people
of
our
state
and
charts.
All
these
things
are
predictors
I
can
understand-
and
these
are
done
by
people
much
smarter
than
me,
but
when
do
we
take
the
step
of
now
is
the
time
to
infuse
people's
money
back
into
their
pockets
for
additional
investment
and
growth,
especially
coming
up
to
a
time
of
economic
uncertainty.
F
Thank
you
for
that
question,
or
maybe
not,
but
I
think
that
it.
F
You
raise
a
good
question
then,
and
I
certainly
I'll
I'll
I'll-
take
a
shot
at
the
kind
of
the
philosophical
part
and
and
commissioner
can
chime
in
as
we
as
we
get
into
this
discussion.
But
I
would
say
that
certainly
you,
you
won't
find
any
administration
that
is
even
that
is
ever
more.
F
You
know
more
aware
of
the
impact
of
governmental
spending
and
impact
of
of
taxes
on
business
in
in
small
businesses,
particularly
that
as
as
this
administration,
and
so
certainly,
we
believe
in
in
making
sure
that
every
dollar
that
this
this
state
gets
is
spent
wisely
and
that
we
have
as
small
a
government
as
necessary
or
as
possible
to
be
able
to
to
serve
our
people
this
state.
F
So
so
so,
having
said
that,
my
answer
would
be
that
when,
when
we
have
an
environment
is
that
is
more
more
stable
and
predictable,
I
mean
predict
with
predictability:
comes
that
stability.
F
That
allows
us
to
be
able
to
know
with
more
certainty
what
our,
what
our
levels
of
revenue
are
going
to
be
in
coming
years
to
be
able
to
do
the
things
that
that
that
this,
you
know
that
this
body
has
has
has
voted
on
in
past
with
the
services
that
that
you
provide
this
state
every
you
know
every
year,
if
you
think
about
this
budget
that
that
we
proposed
this
year
between,
there
is
no
new
debt.
F
We
are
paying
off
debt
actually
that
we
we
had
authorized
previously.
We
are
investing
in
reducing
our
pension
liabilities
so
that
in
the
out
years,
we're
able
to
be
able
to
make
sure
that
those
are
paid
down
more
quickly,
and
so
we've
got
11
of
this
budget
this
year.
That
is
devoted
to
those
kinds
of
things
that
that
are
in
many
ways,
things
that
that
certainly
are
going
to
be
reducing
taxpayer
increases
or
taxpayer
spending
taxpayer.
F
Increases
in
years
to
come,
and
so
so
being
able
to
to
pay
down
those
kinds
of
liabilities
and
those
kind
of
things
now
with
those
funds,
I
think,
is
a
tremendous
hedge
on
increasing
of
any
taxes
in
in
the
future,
and
it
allows
us
to
be
able
to
do
the
things
that
that
we
need
to
do
when
I,
when
I
think
about
this
year's
this
year's
budget,
we're
we
we
we
have,
after
after
the
spending
that
is
being
proposed
over
on
the
non-recurring
side,
approximately
2.3
billion
dollars
and,
as
you
have
seen,
proposed
a
billion
of
that
going
to
new
education
spending
so
another
so
another
a
little
over
a
billion
dollars
in
proposed
spending
in
this
current
budget.
F
With
that,
you've
seen
a
lot
of
things
in
this
budget
that
we've
not
been
able
to
do
that.
I
think
most
would
agree
that
are
needed
in
a.
F
Troopers
that
that
this
budget
does
we've
got
about
45
new
tbi
employees
is
put
to
this,
both
in
new
tbi
agents
as
as
well
as
also
lab
scientists
and
technicians,
the
tis
increased
from
three
years
to
four
years.
F
I
I
don't
want
to
have
to
bore
you
going
through
all
of
those
all
of
those
things,
but
most
of
those
are
things
that
we've
been
trying
to
get
to
for
the
for
the
last
number
of
years
that
we
feel
comfortable
this
year,
that
we've
got
the
cushion
or
the
comfort
to
be
able
to
to
do
those
services
for
for
the
people
of
tennessee,
without
increasing
any
taxes
and
without
putting
ourselves
in
a
situation
where
we
would
have
to
increase
one
year
and
then
take
it
back
to
next
year,
and
so
we've
got
those
those
things
this
year.
F
If
you
look
at
kind
of
the
I'll
call
it
the
worst-case
scenario,
but
the
scenario
that
we
that
commissioner
outlined,
if
we
took
a
billion
five
out
of
out
of
what
we're
spending
for
next
year,
then
we
wouldn't
be
doing
any
of
those
things.
And
so
I
would
I
I
would
ask
us
what
what
is
what
of
those
enhancements?
F
Would
we
not
want
to
do?
Certainly
with
the
the
one-time
spending
that
we
are
doing?
F
We've
got
several
billion
dollars
of
deferred
maintenance
of
things
that
we
have
not
done
over
the
years
and
that's
not
saving
us
money
being
able
to
use
those
dollars
now
to
invest
in
our
infrastructure
to
invest
in
our
current
assets
is
actually
saving
us
money
in
the
out
years,
and
so
I
think,
where
we
are
now
is
being
able
to
to
spend
those
dollars
that
we
have
over
and
above
our
current
spending
is,
is
wise
and
prudent,
and
if,
if
it
continues
at
the
rate
we're
going,
then
I
certainly
do
think
at
some
point
in
the
not
that
distant
future.
E
I
would
just
say
you
know
from
a
structural
standpoint,
we
have
had
sort
of
an
unprecedented
long
period
of
of
good
collections,
but
that
will
not
last
you
know
forever,
and
the
sales
tax,
and
particularly
the
sales
tax
on
food
lens
stability.
E
G
G
My
only
comment
to
you
related
to
stability
is
based
on
the
dysfunction
and
inability
of
congress
to
accomplish
anything
on
both
sides
of
the
aisle
and
how
congress
again
on
both
sides
of
the
aisle
has
failed.
The
american
people
putting
our
country
in
an
uns
somewhat
unsustainable,
in
an
unsustainable
position
in
terms
of
their
unwillingness
to
cut
spending.
I
believe
I'd
have
to
go
back
and
look.
I
think
it
was
october.
November
of
last
year
we
had
record
revenue
coming
to
the
treasury.
G
We
have
a
spending
problem,
we
do
not
have
a
revenue
problem,
and
so
I
would
say
in
terms
of
our
assessing
any
level
of
stability.
If
we
continue
down
the
road
we
have
interest
rates
raised,
increase
in
march
or
a
couple
more
times
this
year
with
what
congress
is
doing,
there
will
never
be
a
an
environment
from
california
to
the
east
coast
that
will
provide
a
level
of
stability
that
will
provide
provide
us
with
a
comfort
to
move
forward
to
the
tax
cut.
G
But
then
I
would
also
say
too,
if
the
people
that
I
that
I
represent
choose
to
send
me
back
if
the
speaker
sees
fit
to
put
me
on
this
committee
next
year
and
we
come
back
next
year
and
we
still
continue
to
see
revenue
producing
at
the
level
we
are
now.
I
think
that
would
be
the
time
to
warrant
serious
conversations
about
what
some
sort
of
tax
cut
and
and
putting
those
dollars
back
in
the
hands
of
tennesseans
looks
like,
and
I
and
I
want
to
say
I
do
want
to
say
just
quickly.
G
Mr
chairman,
I
mean
you
guys
do
a
phenomenal
job.
I
mean
tennessee
is
one
of
the
best
run
states
in
the
nation,
so
I
do
not
want
to
hear
anybody.
Anybody
think
from
my
comments
means
this
is
a
criticism
by
far
no
far
from
it.
You,
your
predecessors,
before
you
have
put
us
in
this
position
that
tennesseans
are
thriving.
G
Tennesseans
are
winning
it's
because
of
leadership
like
you,
two
gentlemen,
and
so
thank
you
for
what
you
do,
and
I
don't
know
if
I'm
supposed
to
call
you
deputy
governor
or
commissioner,
whatever
title
you
prefer,
but
with
all
sincerity.
Thank
you
for
what
you
do
and
appreciate
how
you
steward
our
state's
resources.
C
Thank
you,
chairman
zachary
representative
campbell.
H
Thank
you,
mr
chairman.
My
question
focuses
primarily
on
inflation
and
with
the
inflation
today,
some
call
it
a
crisis.
How
does
that
affect
the
potential
reduction
in
sales
tax?
Thank
you.
E
Thank
you,
representative
campbell
for
the
question
I
mean.
I
think
I
think
in
terms
of
your
question.
How
is
it
affected?
I
mean
I
think
it's
a
starting
point.
Obviously,
sales
tax
is
based
on
the
purchase
on
the
price
of
the
item
and
that's
why
I
referenced
inflation
as
part
of
what's
driving
that
that
fy21
growth
number,
because
as
prices
go
up,
then
then
collections
do
go
up.
The
flip
side
can
be
over
time.
You
know,
consumption
can
can
go
down,
so
it's
sort
of
a
net.
E
You
know
how
much
does
the
price
and
the
consumption
level
balance
out.
You
know,
and
and
so
we've
we've
seen
some
inflation,
I'm
not
an
economist,
don't
claim
to
be
an
economist,
don't
know
how
long
that
will
that
will
last,
but
you
know,
hopefully
it
will.
E
It
will
level
out,
and
but
you
sort
of
from
a
from
a
collector's
point
of
view,
it's
sort
of
it's
sort
of
how
does
it
impact
overall
gross
sales
of
a
company,
and
so
the
price
is
going
to
be
an
upward
pressure
on
gross
proceeds
that
are
taxable
but
consumption
can
be
a
downward
pressure
and
it
sort
of
depends
on
where,
where
the
balance
lands.
D
Garrett,
thank
you,
mr
chairman
deputy
governor
commissioner.
I'll
just
call
you
all
of
them.
How
about
will
that
work?
We
have,
as
you
know,
and
probably
can
tell
we've
got
a
large
amount
of
population
growth
here
in
steps
in
the
city
course.
Sales
tax
is
driven
by
people
either
living
here
coming
here,
traveling
through
here.
D
What
not
so,
obviously
our
population
is
going
to
affect
our
sales
tax,
and
so
my
question
is
kind
of
centers
around
that
with
a
projected
200
000
people
moving
to
the
middle
tennessee
area,
will
this
extra
revenue
create
an
avenue
in
which,
as
we
a
lot
of
discussed
here,
it
could
be
possible
to
reduce
the
sales
tax
burden
on
our
population.
F
I
don't
want
to
talk
like
an
economist,
because
I'm
not
one
either,
as
as
commissioner
pointed
out,
but
I
I
think
that
I
think
that
it's
incumbent
upon
us
to
to
be
able
to
have
the
tax
taxes
available
to
provide
the
services
that
that
that
this
body
and
the
governor
has
recommended
to
be
able
to
provide
for
the
citizens
of
our
state
and
really
not
more
than
that.
F
I
mean
there's,
there's
no,
there's
no
need
once
we
have
the
rainy
day
funds
and
the
ability
to
to
fund
the
services
that
that
this
legislature
has
passed,
then
we
shouldn't
continue
to
tax
beyond
that,
and
so
certainly
at
that
at
that
point
then,
then
we
should
consider
continuing
to
look
at
at
not
continuing
to
have
taxes
beyond
what
is
needed.
So
I
wouldn't.
I
would
not
disagree
with
that.
F
I
think
that
what
we've
tried
to
do
with
this
budget
that
is
before
you
is,
is
to
guard
against
the
instabilities
that
we
are
seeing
now
with
inflation,
because
that
inflation
could
have
the
impact
of
of
people
certainly
not
purchasing
the
way
that
they
had
been
purchasing
that
we've
seen
in
the
last
two
years.
F
We
also
know
from
from
from
real
data
that
are
collected
from
from
the
department
of
revenue
that
many
of
those
expenditures
have
been
for
durable
goods,
one-time
purchases
like
automobiles
and
boats
and
cars
that
aren't
going
to
continue
on
on
a
day-to-day
basis,
and
so
we
have.
We
have
restrained
this
budget
to
where
we're
only
spending
62
of
the
recurring
funds
that
are
available
in
ensuring
that
we
have
that
stability
going
forward
into
next
year.
F
In
case
of
a
downturn-
and
it's
been
pointed
out
by
commissioner-
it
hadn't
happened
since
I've
been
here,
but
we
have
seen
years
where
our
our
revenue
estimates
have
been
drastically
below
what
what
ended
up
being
the
actuals
for
that
year
and
in
those
years
and
many
some
of
you
have
have
seen
that,
where
pretty
severe
reductions
had
to
be
made
in
in
a
year
or
two
years
time
frame,
and
it
took
several
years
to
kind
of
dig
out
of
that
and
that's
what
that's
what
I'm
trying
to
avoid
with
this
is
to
look
at
it
in
a
multi-year
basis,
not
not
just
one
year
to
say:
oh
we've
got
more
money,
let's
either
spend
it
all
or
let's,
let's
reduce
it
or
give
it
back.
F
Let's,
let's
have
a
couple
of
years
of
stability
before
we
look
at
those
options.
Thank
you,
sir.
Thank
you.
Thank
you,
leader,.
C
Yeah,
I
think
some
of
us
were
here.
I
think
it
was
13.
Maybe
it
was
13
where
we
were.
I
remember
a
231
million
dollar
number
short.
It
was
not
a
fun
time.
C
D
The
question
I
had
actually
chairman
has
pretty
much
been
been
asked,
so
I
won't
belabor
the
point.
It's
good
to
see
you
all
here
and
I
guess
the
only
thing
that
I
would
say
and
and
then
I'll
be
quiet
is
the
fact
that,
with
all
the
federal
money
it's
it's,
it's
just
really
made
a
interesting
situation.
Much
more
interesting,
because
eventually
the
federal
money
is
going
to
go
away
from
not
only
individual
purses,
but
it's
also
going
to
go
away
from
them
directly
to
to
government.
D
So
that's
going
to
be
an
interesting,
probably
three
year
four
year
phase
out,
especially
with
education,
they
can
spend
theirs
up.
2024
I
saw
another
number
2026
for
the
federal
monies
will
be
completely
out,
so
you
know
I
saw
my
predecessor
that
was
the
chairman
of
budget
sub
walk
out
a
few
minutes
ago
and
if
you'd
have
asked
kim
10
years
ago,
if
you
know
would
he
ever
see
this
happen?
I
think
he'd
tell
you
real,
quick,
there's
no
way
and
of
course,
you've
kind
of
already
alluded
to
that
as
well.
D
C
B
Thank
you,
mr
chairman,
and
I'll
just
call
you
the
man
for
all
seasons
or
the
renaissance,
man
or
whatever,
since
you
have
all
those
those
titles
not
to
rain,
on
anybody's
parade,
but
to
second,
my
colleague
here
to
my
right.
I
think
caution
is
the
word
for
the
day
and
I
appreciate
the
cautionary
approach
that
you
and
the
administration
have
taken
because
of
all
the
factors
just
mentioned,
and
in
that
regard,
commissioner,
we
had
a
conversation.
B
F
Yeah,
thank
you,
chair
elizawood,
so
we
have
seen
really
unprecedented
growth,
as
is
already
been
stated
here
when
we
came
to
a
funding
board
meeting
in
november.
F
Really,
as
I
mentioned,
all
the
economists
said
that
they
felt
like
22
would
be
the
year
that
we
would
start
seeing
less
of
that
growth
than
we
had
been
seeing,
in
fact,
our
revenue
numbers
and
you
you
can
speak
to
this
also,
commissioner,
but
this
this
past
week
we
announced
those
numbers,
and
it
was
a
about
8.9-
is
that
right
right,
a
little
over
eight
percent,
not
quite
nine
percent
year
over
year,
and
we
had
had
you
know
we
had
been
running
around
20
for
the
months
prior
up
to-
and
this
is
this-
this
is
collections
from
last
month
in
january,
which
means
that
was
december
activity,
and
so
so
we
had
a.
F
We
had
a
bigger
growth
month
in
november
than
we
did
in
december
and,
as
you
recall,
there
was
a
lot
of
publicity
around
the
holidays,
about
going
ahead
and
making
purchases
and
things
ahead
of
time
and
so
october
and
november
were
very
strong
and
it
ended
up
being
more
so
than
in
december,
even
though
december's
traditional
month
with
christmas
purchases.
F
So
I
I
just
see
that
as
the
first
month
that
we
have
seen
that
downtick,
it
is
the
exact
thing
that
the
economists,
when
we
came
before
them
or
they
came
before
us
in
november,
the
funding
board
told
us
would
be
happening,
and
so
so
I
think
it.
F
B
I
think
that
underscores
the
need
for
the
cautionary
approach
that's
being
taken,
and
you
know
we
are
a
sales
tax
dependent
state.
These
charts
show
that
and
a
lot
of
factors
drive
that
when
you
were
just
commissioner
last
year's
budget.
I
remember
part
of
the
presentation
talking
about
and
I
believe
it's
in
this
year's
budget
presentation
as
well,
but
the
makeup
of
the
sales
tax
based
on
you
know
normally
it's
service
and
how
those
things
have
changed
and
durable
goods
is
a
huge
number
and
there
comes
a
point
that
people
can.
B
They
have
all
the
durable
goods
that
they
need.
Those
are
not
things
that
you
replace
on
an
annual
basis,
so
I
think
they're
just
a
lot
of
things
when
you
really
dig
down
into
the
numbers
that
say
whoa
and
we're
trying
to
give
back
to
tennesseans
and
in
ways
that
make
sense
by
doing
a
lot
of
prevention,
things
that
will
cost
future
taxpayers
less.
B
C
Thank
you,
caution
is
the
the
word.
I
think
everyone
understands
that
I
think
just
as
a
clarification,
though,
no
federal
dollars
are
recognized
in
this
budget.
It's
just
the
growth
federal
dollars
are
handled
through
the
ucg.
Is
that
correct
statement,
or
not?
No,
I
mean
there's
capital
projects
that
we've
transferred
in
to
be
spent,
but
operationally
there's
no
federal
dollars
there
correct.
F
There
there
are
dollars
in
the
50
52
million
dollar
budget
that
are,
that
does
include
the
federal
dollars
that
we
know
are
coming
into
this
budget.
But
when
we,
when
we
talk
about
when
we
talk
about
the
general
fund
dollars
that
are
state
dollars,
then
that's
separate
from
the
you
know.
That's
separate
from
the
dollars
coming
in
from
the
feds.
C
C
Yes,
thank
you,
deputy
governor
representative,
shaw,
you're
on
the
list.
A
A
We
all
love
that
that's
just
something
we
love,
but
I've
seen
us
do
things
where
we
could
give
a
lot
of
relief
to
our
citizens
more
than
just
in
tax
cuts,
because,
as
you
know-
and
everybody
know
right
now,
we're
giving
sales
tax
holidays
things
that
we
used
not
to,
and
I
guess
we
could
probably
give
more
of
those
if
necessary,
but
I
would
also
say
for
us:
when
has
it
been
when
we
could
say
a
year
out?
We
know
that
our
budget
is
going
to
be
balanced.
A
A
But
I
could
also
say
that
not
many
people
can
say
anymore.
I
can't
find
a
job
jobs
available,
we're
providing
so
much
for
our
citizens,
our
constituents
and
now
that
I
don't
know
if
they
can
complain
about
anything,
because
this
state
is
one
of
the
better
states
that
anybody
could
live
in
and
to
serve
in.
A
A
I
just
want
to
make
that
comment
to
say
that
I
think
we've
always
had
and
we
have
good
management
in
the
state
of
tennessee
and
having
said
that,
I'm
not
against
the
tax
cut.
I'd
love
to
have
one
too,
but
I
think
we
ought
to
look
at
other
ways.
We
could
give
perks
and
stay
standard
if
that's
makes
good
sense.
Thank
you.
F
Hey,
thank
you.
Thank
you,
representative
sean.
Let
me
let
me
take
this
opportunity
to
just
to
say
to
this
body
that
it
this
is
being
in
the
situation
that
we're
in
where
we
are,
as
as
mr
gerrardo
has
pointed
out
and
shown
this
map
up
here
is,
is,
is
pretty
telling
being
the
lowest
tax
state
in
the
country
at
a
time
when
many
are
having
to
go
into
debt,
many
states
in
in
order
just
to
make
ends
meet,
and
that
is
something
that
that
that
certainly
I
didn't
do
overnight
it
is.
F
It
is
a
culmination
of
the
of
of
the
very
strong
physical
foundation
that
this
body
and
in
our
legislature
and
our
governors
in
the
past
have
provided
for
this
date
to
put
us
in
the
condition
that
we're
in
and
so
so
kudos
to
to
you
and
this
body
too,
for
the
for
for
the
leadership
that
they've
taken
over
the
years
to
put
us
in
the
position
that
we're
in
today.
C
Thank
you
finally,
representative
miller,
you're
on
my
list.
H
Thank
you,
mr
chairman,
commissioner,
thank
you
all.
I
think
I'm
the
only
somebody
in
this
committee
right
now
that
looking
at
the
two
questions
or
the
number
of
questions,
but
one
is
the
one
predict
one
percent
reduction
to
standard,
seven
percent
would
be
1.5
billion
and
I
get
must
be
very
cautious.
H
When
you
talk
about
the
number
of
dollars,
the
surpluses
that
we
have
unprecedented
growth
rate
and
and
we
talk
about
the
number
of
dollars
in
our
budget,
52
billion-
explain
to
me
the
number
of
billions
that
have
come
through
the
cares
act
and
if
any
of
those
dollars
are
being
invested
and
used
creatively
to
cushion
us
for
exactly
what
we're
talking
about
now.
F
Thank
you,
representative
miller.
I
I
would
respond
that
that
they
are
definitely
being
used
to
do
exactly
what
you're
what
you're
stating.
I
think
that,
if
you
think
about
our
our
typical
federal
funding
that
has
has
come
into
the
state,
the
last
few
years
has
been
around
14
billion.
A
year
last
year
was
22
billion
in
in
2022
this
year,
we're
estimating
now
at
at
19,
almost
20
billion,
so
it's
settling
right
there
in
that
20
billion
range.
F
So
those
those
funds
have
no
doubt,
as
chairman
hicks
pointed
out,
we've
had
over
six
billion
dollars
coming
into
the
state
in
the
last
year,
or
so
that
have
gone
to
many
to
individually
to
many
tennesseans
they've
gone
to
many
businesses
through
the
through
the
the
different
programs
that
were
part
of
the
federal
stimulus
stimulus
spending.
F
What
what
that
has
allowed
us
to
do
as
a
state
is,
do
do
some
of
the
things
that
that
this
budget
does,
and
that
is
to
invest
in
our
assets
in
tennessee.
So
when
you
look
at,
I
mentioned
deferred
maintenance,
many
of
our
buildings
in
in
our
state
parks
our
corrections
other
buildings
that
each
of
you
know
from
your
travels
in
your
districts
and
around
the
state.
F
If
we
kept
deferring
maintenance
on
those
projects-
and
so
that's
that
has
certainly
helped
us
tremendously
in
being
able
to
keep
from
spending
more
dollars
in
those
out
years
to
to
renovate
or
to
build
a
new
building
at
that
time
and
I'll
also
say
that
we're
investing,
I
believe,
in
a
number
of
other
other
programs
and
and
things
through
this
budget
that
will
help
us
prepare
for
the
future.
F
F
Those
are
things
that
we
believe
will
actually
be
able
to
save
some
dollars
in
the
out
years
of
being
able
to
get
better
jobs
and
prepare
people
to
better
better
live
their
lives
in
tennessee.
H
H
Mr
chairman,
this
question
is
actually
to
you.
If
a
member
of
this
committee
wanted
to
make
a
motion
to
forego
the
one
percent
reduction
being
cautious
on
a
1.5
billion
dollar
question
of
consideration
and
put
a
motion
to
support
a
one
percent
reduction
of
the
four
percent
on
food.
Could
we
do
that?
Could
members
put
a
motion
on
the
table
for
that.
C
That
is
a
that's
a
great
question.
I
am
not
the
clerk,
but
I
will
tell
you
based
upon
what
I'm
we're
currently
out
of
session,
so
you
can't
do
that
when
we're
in
out
of
session
today
we're
not
transacting
business
here,
because
we
don't
have
a
bill
before
us.
C
So
if
there
was
a
bill
before
us,
you
could
make
a
you
could
make
a
amendment,
so
you
couldn't
even
do
a
verbal
amendment
on
a
on
a
bill
if
we
had
a
bill
before
so
in
three
three
different
fashion,
you
would
be
out
of
order
in
order
to
do
so,
but
it
doesn't
mean
I
I
don't
like
your
passion
for
the
subject
matter
at
hand,
but
no
you
would
be
out
of
order,
sir.
C
Thank
you.
Thank
you,
commissioners,
deputy
governor
and
your
staff
for
being
here
today.
We
don't
have
any
further
questions,
but
we
really
appreciate
it.
Part
of
the,
as
we
talked
before
part
of
the
reason
for
this
committee
really
is
to
have
a
discussion
about
what
it
would
look
like
what
it
would
cost
the
state
as
it
relates
to
revenue
and
how
that
how
that
could
not
just
impact
the
rate
payers,
but
also
what
the
impact
could
be
to
citizens
if
we
did
cut
taxes.
C
The
last
time
we
cut
taxes
was
an
f
e
tax,
which
most
citizens
of
the
state
didn't
receive
a
benefit
from,
and
yet,
even
though
we
cut
those
taxes,
we
still
probably
remained
50th
in
the
state.
The
other
two,
as
you
mentioned,
are
closest
to
us.
Both
have
income
tax
in
their
state
so
and-
and
we
do
not,
but
as
rev
as
population
continues
to
to
grow
and
people
start
moving
to
rogersville
and
signal
mountain,
then
we'll
have
all
kinds
of
rate
payers
here,
but
we
really
appreciate
your
discussion
today.
C
I
know
that
in
the
past
we
have
done
temporary
tax
cuts
using
sales
tax
holidays.
It
was
a
recognition
that
we
were
over
collecting
enough
to
where
we
could
provide
some
revenue
or
sales
tax
relief
to
citizens,
and
so
I
think,
there's
many
different
ways,
whereas
you
and
we
together
can
find
ways
to
return
some
monies
in
a
short
term
fashion
rather
than
permanent
fixes,
but
appreciate
you
guys
coming
today
and
if
there's
no
other
questions
we're
going
to
go
back
into
session.