Entering the second year of a second four-year term, Gov. Bill Lee is singing the same chorus he did when he started five years ago: A heavy dose of private-school vouchers is the solution for Tennessee.
In the annual State of the State speech, Lee presented a $52.6 billion spending plan the day after he committed to send Tennessee National Guardsmen to Texas to provide backup to federal personnel on patrol there.
Lee entered office in January 2019 with a plan to offer students public money to attend private schools, as well as to bolster charter schools, which are privately held but officially considered part of public school systems. The state also has boosted K-12 spending by about $3 billion in five years, $1.8 billion from the state level.
After a contentious vote that led to an FBI investigation, in addition to a protracted lawsuit, his education savings account plan took effect two years ago.
As he starts his sixth year in office amid flattening state revenue and a looming business tax break caused by “significant legal risk,” Lee is pushing a $141 million voucher plan for up to 20,000 students to go to private schools, this time without as many requirements to qualify financially. The details for his bill haven’t quite tumbled out completely, but he continued the sales pitch Monday night in the State of the State address.
Less than half of the crowd stood and cheered as Lee introduced his proposal, and people jeered from the balconies, even as the governor said he wants to avoid the “status quo.”
“There are thousands of parents in this state who know their student would thrive in a different setting, but the financial barrier is simply too high,” Lee said during his annual address Monday. “It’s time that we change that. It’s time that parents get to decide — and not the government — where their child goes to school and what they learn … 2024 is the year to make school choice a reality for every Tennessee family.”
In his pitch, the governor also maintains the argument that the state has put an “unprecedented focus” on public schools and he noted Monday the two ideas “are not in conflict.”
The state’s revenues are 46 percent higher than they were four years ago, increasing to $19 billion from about $11 billion. The state is weaning itself off the flow of federal funding that came down during the COVID-19 pandemic.
Yet Lee is pushing for a franchise tax rebate of $1.2 billion and $400 million reductions for the next few years after 80 companies balked at paying the property portion of the state’s franchise tax.
Even though some financial experts have said the state could fight big business efforts to reduce the tax, the Lee Administration and Attorney General Jonathan Skrmetti’s office recommended the refunds and reduction because of “significant legal risk.” Officials say no lawsuit is pending.
Democrats criticized the governor’s proposals, saying Tennesseans are being told they should support a “scam” to defund public schools and give large corporations another tax break. No sales tax holiday is scheduled for the coming fiscal year that starts July 1 after the state gave a three-month break from the grocery sales tax last fall.
They point out Lee contends Tennessee is among the nation’s leaders in low taxes and several other financial categories, yet the state is seeing rural hospitals close and money diverted that could go to public schools.
“We ain’t leading nothing when we’re leaving so many people behind.”
Sen. London Lamar (D-Memphis)
“We ain’t leading nothing when we’re leaving so many people behind,” said Senate Minority Caucus Chairman London Lamar of Memphis.
Lamar said the franchise tax break will cost the state $8.3 billion over a decade while the private-school voucher plan will take $800 million in its second year when it could become available to every student. She noted companies will be getting a “fat check” while hourly workers will receive no tax breaks.
Democrats point toward increases in gun violence amid softer gun laws and personal bankruptcies that forced working families to struggle while wealthy business owners receive treatment with kid gloves.
Besides his private-school voucher move, Gov. Lee is proposing legislation to stop the theft of musicians’ voices through AI, calling it the Elvis Act.
He also plans to introduce legislation dealing with the protection of young people from social media. The measure would enable parents to oversee their children’s use of the Internet by requiring new social media accounts.
In addition, Lee said he plans to make hundreds of rule changes and cut permitting regulations to streamline government but gave no details.
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