THURSDAY, JULY 28, 2011 Craig Fitzhugh: Working people in Tennessee need tax relief (Commercial Appeal)

Our economy is still in recovery. Businesses are hurting, it's getting harder to send the kids off to college, and even buying groceries has become a struggle for many families. That's why I believe it's time for Tennessee state government to stand up and do something to help working people. For the past several months, the state of Tennessee has brought in more money in revenues -- both fees and sales and use taxes -- than was anticipated in the budget passed this year by the General Assembly. This is a result of the 4 percent rise in tax collections we saw for fiscal year 2011. And our sales tax collections continue to do extremely well; they have been rising for the past 15 months. This means the public has paid more in sales tax than we intended and we now have a growing surplus of over $80 million. Instead of finding a place to spend this surplus, I believe we need to use it to provide businesses and working families with some much-needed relief. http://www.commercialappeal.com/news/2011/jul/28/guest-column-working-people-in-tenn-need-tax/

Lowe Finney: Voter ID law needless ploy to disenfranchise voters (D. News Journal)
It is a little over a year until the 2012 elections, and you're eligible to vote for the first time. Maybe you've moved to another county, or maybe you haven't voted in a while and need to know your precinct. You call your local election office, where someone tells you that you will need a photo ID to vote. You learn that you'll need several pieces of documentation to prove your identity in order to receive the ID. If you live in any of the 54 counties yes, 54! where there is no drivers license center, you'll have to travel to a neighboring county to get the ID. Unfortunately, this will be the new norm. Since coming to the Senate in 2007, each year my fellow Democrats and I have opposed efforts to place barriers between voters and the polling booth. Earlier this year, the Republican majority passed a law requiring photo identification to vote, despite warnings that it would hurt thousands of voters and potentially cost the state millions in federal lawsuits. Now, news comes from Memphis that people are spending four hours waiting in the West Tennessee heat to get those IDs and many are turned away for not having enough documentation. There are problems all over the state, with wait times reportedly highest in the state's urban areas. http://www.dnj.com/article/20110728/OPINION02/107280302/Sen-Finney-Voter-ID-law-needless-ploydisenfranchise-voters

Haslam speaks at Jackson Rotary Club (Jackson Sun)

Health, education and a welcoming environment are all things needed for job growth in Tennessee, said Governor Bill Haslam during an appearance in Jackson W ednesday. The governor spoke about the importance of job growth and education reform at the weekly Jackson Rotary Club meeting Wednesday at the Jackson Country Club. He said the focus on job growth has moved to existing businesses in the state. "It's a lot easier to sell to an existing customer then a new one," he said. About 80 percent of job growth has come from existing businesses and start-ups, Haslam said. A small percentage has come from new companies moving into the state, but Haslam said they won't give up recruiting outside companies to Tennessee. "I love that so many companies have their division headquarters in Tennessee, but it's great when a business starts in Tennessee," Haslam said, using FedEx as an example. "A company that calls Tennessee home because it was started here is a loyal company." To continue job growth, the state needs to foster entrepreneurship, be responsive to the businesses in the state, have a stable infrastructure for businesses and promote healthy lifestyles to keep healthcare costs for employers and employees down, Haslam said. http://www.jacksonsun.com/article/20110728/NEWS01/107280310/Haslam-speaks-Jackson-Rotary-Club

Video: The A-List: Bill Haslam (W TCI-TV Chattanooga)

In the season finale of The A List, Alison visits Bill Haslam, Governor of Tennessee, at the Executive Residence in Nashville. He talks about the lessons he's learned in his journey from family businessman to state leader. http://wtcitv.org/video/the-a-list/bill-haslam

Grant links sidewalks, towns (Tennessean/W iersma)

Elevated walk would help kids walk to school A $69,000 grant to the city will bridge a gap to neighboring Thompsons Station for area schoolchildren. Gov. Bill Haslam is visiting City Hall at 2:15 p.m. today to award the Tennessee Department of Transportation Enhancement Grant. The money will be used to build an elevated walking path connecting the Tanyard Springs subdivision in Spring Hill to sidewalks already built in Thompsons Station through the Safe Routes to Schools grant program. The town, which was awarded the national grant in 2008, left the final piece of its project unfinished, allowing Spring Hill more connection options. Thompsons Stations portion of the sidewalk will end at the Advanced Auto property. The Spring Hill portion will be an elevated walking path across a stormwater detention basin that will tie into the existing sidewalks in Tanyard Springs, City Administrator Victor Lay said. http://www.tennessean.com/article/20110728/W ILLIAMSON12/307280007/Grant-links-sidewalks-towns

New teacher evaluations lauded (Tennessean/Bewley)

National group calls process one of best Tennessees new teacher evaluation system will give educators frequent feedback on their performance and will dismiss those whose failings cant be fixed with training, state Education Commissioner Kevin Huffman told House lawmakers Wednesday. The states approach also will promote the techniques of the best teachers, Huffman told members of the House education committee. He acknowledged the new method remains a work in progress. One of our great national failings in the discussion about teacher evaluation is that we consistently allow ourselves to be derailed through the unattainable concept of a perfect system, Huffman said. Kate Walsh, president of the National Council on Teacher Quality, hailed Tennessees system as one of the best in the country, noting that most states dont require annual evaluations of veteran teachers, and many grant tenure to teachers without considering their effectiveness. http://www.tennessean.com/article/20110728/NEWS04/307280053/New-teacher-evaluations-lauded? odyssey=mod|newswell|text|News|p

Inside Knox Countys New STEM High School (Metro Pulse)

Knox Countys trying something new, in several respects, next month when it opens its new STEM high school, the Science, Technology, Engineering, and Math academy, as its knownthe only one of its kind in Tennessee. Enabled by a $3 million Race to the Top contribution from the state of Tennessee, as well as unusual assistance from the city, which for the most part has not been in the school business in several decades, the school will welcome its first students in just a couple of weeks. Its the first high school downtown in 60 years, located in the 1905 L&N train station at Henley and Summit Hill. Unused as a passenger station since 1968, but renovated for restaurants and other attractions during the 1982 Worlds Fair, the L&N, known for its stained-glass windows and Beaux-Arts brick and marble work, has been an appealing dilemma for years. Since the Fair its been used in bits and pieces as offices and studios and event space, but never to its full capacity. Restaurants have opened and closed in the space. A couple of years ago, the L&N seemed set to be the next main public library, a deal that ultimately fell through. Segregated from downtowns pedestrian boom by Henley Street, several lanes wide there, the L&N sometimes seemed destined to remain mainly an interesting artifact. http://www.metropulse.com/news/2011/jul/27/inside-knox-countys-new-stem-high-school/

Debt Ceiling Stalemate Casts Uncertainty Over States Credit Picture (TN Report)
Tennessee Gov. Bill Haslam is planning a September trip to meet with major credit rating agencies in New York. Hes thankful it isnt sooner. Im glad were not going now because it would be chaos, Haslam said Tuesday, referring to the congressional battle over the debt ceiling and the nations own credit rating. Well wait to see what happens there. But the states credit rating is certainly a big deal in the current economic climate, with Tennessee holding a AAA rating from two of the three major rating agencies and AA from the other. Moodys Investors Service recently announced that five states, including Tennessee, could see their own bond ratings decrease simply because of their dependence on federal funds. The ratings amount to a states credit score. The higher the rating, the lower the interest rates on borrowing. It will not be Haslams first rodeo on visiting rating agencies. 2

http://www.tnreport.com/2011/07/debt-ceiling-stalemate-casts-uncertainty-over-states-credit-picture/

PCMC Celebrates Community Health Week, Aug 7-13 (Buffalo River Review)
Governor Bill Haslams office has notified Perry County Medical Center (PCMC) about plans to proclaim August 7 13 as Community Health Center Week. The Governors proclamation will single out Perry County Medical Center for the years of service to an underserved community, by stating: I encourage all residents of Perry County to celebrate the importance of their health center by visiting Perry County Medical Center during this time; it is a great opportunity to meet your local providers, participate in health screenings and other events. In addition, I want to acknowledge the dedicated medical and support staff who provide much needed care and services to the citizens of Perry and the surrounding counties. The proclamation will also state: America's community health centers are at the core of our health care system and the nations safety net, providing comprehensive primary care to all people, regardless of ability to pay. http://www.buffaloriverreview.com/v2/content.aspx?module=ContentItem&ID=218605&MemberID=1257

TBI raids Millington city offices, serves warrants (Associated Press)

The Tennessee Bureau of Investigation and Shelby County District Attorney's office investigators raided city offices in Millington on Wednesday morning. District attorney spokesman Vince Higgins said the officers were serving warrants after an investigation into a complaint alleging official misconduct. Higgins said the complaint was made with the district attorney's office last December and centered on activities in Millington. He declined to elaborate on what type of alleged misconduct was involved or to say exactly who was being served with the warrants but said they were served at several locations in Shelby County. Various media outlets said a transmission shop and every city government building were raided. There were no immediate arrests. Millington Mayor Richard Hodges told The Commercial Appeal he thought the raids were deliberately timed "to try to break me down." His wife died Tuesday. Millington Public W orks Director Jack Huffman said investigators arrived at his department at 8:15 a.m. and "went through every piece of paper down there." http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37076027.story

Corruption Probe Surfaces in Millington (Memphis Daily News)

A criminal investigation into corruption within Millington city government that began late last year surfaced Wednesday, July 27, with searches of government offices in the town by Tennessee Bureau of Investigation agents and investigators with the Shelby County District Attorney Generals office. A written statement from the prosecutors office confirmed an ongoing criminal investigation. The investigation, which began in Dec. of 2010, is in response to complaints of official misconduct in Millington, Tn., the statement reads. Millington City Hall was among the places searched. Shelby County Sheriffs deputies were posted outside the Millington mayors office during the searches, which included taking boxes of records. The searches come the day after Rita Hodges, the wife of Millington Mayor Richard Hodges, was found dead at the couples home in Millington. Millington Police said her death appeared to be a suicide. The house was one of the locations TBI agents were spotted at Wednesday. http://www.memphisdailynews.com/news/2011/jul/28/corruption-probe-surfaces-in-millington/

Pick Tennessee Products celebrates 25th anniversary (Bristol Herald-Courier)

Pick Tennessee Products is celebrating its 25th anniversary promoting locally grown agricultural products across the state. Pick Tennessee Products began as a campaign inside grocery store to help identify locally grown produce but since its beginnings in 1986 its expanded to include farm direct foods and farmers markets. The program is celebrating its 25th anniversary with a statewide tour of farmers markets making a stop in Greeneville on Wednesday. Pick Tennessee Spokesperson, Tammy Algood, said farmers markets not only bolster local economies but provide a wide assortment of agricultural products including flowers, soaps and crafts. To learn more about Pick Tennessee Products visit http://picktnproducts.org/ http://www2.tricities.com/news/2011/jul/27/pick-tennessee-products-celebrates-25th-anniversar-ar-1201736/

Sentencing changes reduce crack cocaine jail terms (Tennessean/Haas)

Hundreds may be eligible under new sentencing policy Sixteen years ago, Errol Washington was sentenced to more than 20 years in prison on crack cocaine charges nearly double what it would have been if it were powder cocaine. But Washington, 43, may be among hundreds of Middle Tennessee offenders eligible for early release from federal prison after a significant change in federal sentencing policy. Earlier this month, the U.S. 3

Sentencing Commission drastically reduced sentences for federal inmates convicted of crack cocaine charges. After years of sentencing disparities it took 100 times as much powder cocaine to receive similar penalties as for crack cocaine the commission is set to release some 12,000 inmates an average of three years earlier. Tennessee is estimated to have 360 offenders eligible for the sentence reduction, 41 of them in the Middle Tennessee District. Not all crack cocaine offenders will be eligible, particularly those deemed by the courts to have been involved in a violent crime. A convict must file a motion in court for a resentencing, which will be decided by a federal judge. U.S. Attorney Jerry Martin said his office still was analyzing potential Middle Tennessee cases and could not comment on the reductions. http://www.tennessean.com/article/20110728/NEWS03/307280065/Sentencing-changes-reduce-crack-cocainejail-terms?odyssey=tab|topnews|text|News

Tenn. high court making it easier to seek divorce (Associated Press)

The Tennessee Supreme Court is allowing certain court forms to be accepted in courts across the state in some divorce cases. The high court on W ednesday approved eight plain language forms that can be used in uncontested divorces without minor or dependent children. The forms may be used beginning Sept. 1. The high court said in a news release that the forms are part of ongoing efforts to improve access to justice. Chief Justice Cornelia A. Clark said the forms are not intended to replace the need for an attorney but provide a helpful resource for attorneys and for Tennesseans who choose to file for a divorce on their own. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37083187.story

For some in Tennessee, divorce just got easier (Commercial Appeal/Locker)

Starting Sept. 1, Tennesseans without minor children or pension plans will be able to file for divorce without lawyers, using "plain-language" forms approved Wednesday by the Tennessee Supreme Court provided they agree on the terms. The court adopted a new rule creating the forms for uncontested divorces and making them acceptable in courts across Tennessee effective Sept. 1. They're accompanied by easy-to-read instructions, including what will happen in court and what not to wear there. ("No shorts. No tank tops or low-cut tops. No crop tops that show your belly.") The rule and forms were recommended in January by the Access to Justice Commission, which the Supreme Court appointed to study how to improve access to justice, especially by people with lower incomes. The court received public comments on the issue, then agreed to enact the rule and forms. "The legal system should be accessible to all Tennesseans, regardless of income level," said Chief Justice Cornelia A. Clark of Franklin. "The forms are not intended to replace the need for an attorney but rather provide a helpful resource for attorneys and also for Tennesseans who choose to file for a divorce on their own because they can't afford to hire an attorney." http://www.commercialappeal.com/news/2011/jul/28/for-some-divorce-just-got-easier/

Lawmakers Begin Drawing New Lines on Political Map (WPLN-Radio Nashville)

Republican lawmakers are gathering in small rooms on Nashvilles Capitol Hill to work out maps for next years elections new districts for the state House, state Senate and for Congress. The state legislature has to re-draw the district lines every ten years, following the census, so the districts will be roughly equal the aim is one man, one vote. State Senator Bill Ketron, a Murfreesboro Republican, says the reapportionment mappers are putting rough drafts up on the wall. And theyll have a Plan A and a Plan B, and its kinda like going to the optometrist, and youre sitting there with those goggles on and theyll say, Does this look good? Or does this look better? And theyll flip it back and forth, and youre sitting there, looking, and going, What? Slow it down, you know. Districts have to be equal in population, plus or minus five percent. That size restriction could cost some rural incumbents their seats. Northwest Tennessee is losing population and is represented overwhelmingly by Republicans in the state House. To make those districts big enough, some of those Republicans will end up in the same district with other Republican incumbents, and have to run against each other. http://wpln.org/? p=29234

State starts education campaign regarding voter photo ID law (City Paper/Woods)
State officials say theyre starting a public education campaign about the new law requiring Tennessee voters to show photo identification. The photo ID law takes effect with elections in 2012, and Secretary of State Tre Hargett said Wednesday the campaign is aimed at avoiding confusion at the polls. The Republican-dominated legislature passed the law this year over the objections of Democrats, who contended it is intended to make it harder for their traditional constituencies to vote. Democrats said it will disenfranchising poor, elderly and minority voters who may not have photo IDs. But Republicans insisted the law is needed to combat voter fraud. I 4

believe this new requirement is a common sense step that will increase public confidence in our elections, Hargett said. Requiring photo IDs will decrease the chances that an eligible voter can be impersonated by someone else at the polls. Drivers licenses, U.S. passports, government employee identification cards and military ID cards are acceptable forms of photo ID under the law. http://nashvillecitypaper.com/content/city-news/state-starts-education-campaign-regarding-voter-photo-id-law

Legislator says nurses were wronged (Associated Press)

Licenses restored after suspensions were challenged A Republican state legislator who helped three nurse practitioners get their licenses back says he advocated for them because he felt their constitutional rights were violated. Rep. Tony Shipley of Kingsport is one of two lawmakers who have acknowledged using their legislative positions to some degree to force the Tennessee Board of Nursing to reconsider the suspensions of Bobby Reynolds II, David Stout Jr. and Tina Killebrew. The Tennessee Bureau of Investigation was probing fatal overdoses among patients of the now defunct Appalachian Medical Center, where the nurse practitioners once worked, when the TBI began looking into whether lawmakers improperly intervened with the state board. TBI spokeswoman Kristin Helm told the Kingsport Times-News by email that the agency is investigating the nurses cases in a separate probe and has turned the matter over to Washington County District Attorney General Tony Clark. When the board suspended the licenses, it found that the three nurse practitioners failed to properly order diagnostic tests for patients before prescribing painkillers, continued to prescribe pain medication to patients identified by law enforcement as illegally selling the drugs and prescribed controlled substances to each other, according to minutes of the meeting. Two patients died of drug overdoses, the TBI said. http://www.tennessean.com/article/20110728/NEWS0201/307280051/Legislator-says-nurses-were-wronged? odyssey=tab|topnews|text|News

Tracy favors 'Caylee's Law' bill in Tennessee (State Gazette)

State Sen. Jim Tracy said last week that he plans to follow legislation introduced by his colleague State Sen. Bill Ketron to adopt a so-called "Caylee's Law" in Tennessee. "I do feel like there needs to be tougher penalties for that situation, where someone doesn't turn in a disappearance on time," said Tracy. The high-profile trial of Casey Anthony for the death of her daughter Caylee has raised awareness of laws requiring that the disappearance of a missing person be reported promptly to the authorities. Casey Anthony was acquitted of involvement in Caylee's death but was found guilty of providing false information to a police officer, a misdemeanor. Florida, where the Anthony case took place, did not have any law governing reporting a missing child. Tennessee does have a law, but it carries no penalties. Ketron, who like Tracy is a Republican representing part of Rutherford County, and State Rep. Tony Shipley have introduced a bill that would make it a Class E felony for a parent, legal guardian or caretaker not to notify law enforcement within 24 hours of the disappearance of a child. The legislation will be considered next January when the legislature reconvenes. http://www.t-g.com/story/1747308.html

Green Party, Constitution Party sue over TN ballot access (Tennessean/Sisk)

New law doesn't address judge's concern of stringent rules, they say Two minor parties are suing again over access to election ballots, saying Republican and Democratic lawmakers have resisted changes despite a judges ruling that the states rules to get on the ballot were unconstitutional. The Green Party of Tennessee and the Constitution Party of Tennessee have filed a suit in federal court arguing that Tennessees election laws continue to present an insurmountable hurdle to third-party candidates who want to see their party affiliation on the ballot. The Libertarian Party of Tennessee is weighing whether to join in the lawsuit. The suit comes less than a year after a federal judge threw out Tennessees rules for appearing on the ballot, saying they violate Tennesseans First Amendment rights. Basically, they didnt address the ruling, said Martin Holsinger, cochairman of the Green Party. Its sort of like they slapped us in the face. http://www.tennessean.com/article/20110728/NEWS0201/307280046/Green-Party-Constitution-Party-sue-overTN-ballot-access?odyssey=tab|topnews|text|FRONTPAGE

State banking commissioner Sentinel/Humphrey)

travels

on

bankers'

money

(News-

State Financial Institutions Commissioner Greg Gonzales has made 14 out-of-state trips in the past 18 months, receiving about $14,000 in reimbursement for his travel expenses from a department budget financed by the businesses it regulates. The trips, Gonzales says, are for keeping open lines of communication with other state 5

banking regulators, federal officials and officials in the lending business. "The more dialogue we can have in the industry, the better, I think," he said in an interview. "Dialogue is just the key given the complexity of the regulatory environment and the way it is changing." The commissioner, who has held the same position under both former Democratic Gov. Phil Bredesen and current Republican Gov. Bill Haslam, also said that it is inappropriate to state as the News Sentinel did in a recent overview of gubernatorial cabinet travel that his trips are at taxpayer expense. The Department of Financial Institutions develops a budget that is subject to approval of the governor and the General Assembly, as with the rest of state government. http://www.knoxnews.com/news/2011/jul/27/state-banking-commissioner-travels-on-bankers/

Politicians catching up on late property taxes (Tennessean/Cass)

Several politicians who were late paying their property taxes this year have paid up since The Tennessean started raising questions about their delinquency, but three others still owe thousands. State Rep. Brenda Gilmore paid the $1,081.03 she and her husband owed on their Bordeaux house July 11, eight days after the newspaper published a front-page story showing she and six other elected officials and candidates had not paid on time. I kept my word. I told you I was going to pay it, Gilmore said Wednesday. There was never any intention not to pay it. Ive lived in my home for 35 years. I try to be a good citizen in this city and always pay my taxes. Gilmores daughter, Metro Councilwoman Erica Gilmore, is running for re-election on Aug. 4. Brenda Gilmore loaned Ericas campaign $1,272.21 almost $200 more than she owed in taxes between April 1 and June 30, when the councilwoman raised nearly $27,000 overall, her most recent campaign financial disclosure showed. Three of the officeholders and candidates state Sen. Thelma Harper, Davidson County Circuit Judge Carol Soloman and Metro Council District 17 candidate Jerry Graves paid their taxes the week The Tennessean asked about their tardiness. Graves, a former councilman, said he had paid the day before a reporter called. http://www.tennessean.com/article/20110728/NEWS0202/307280077/Politicians-catching-up-late-propertytaxes?odyssey=tab|topnews|text|FRONTPAGE

Memphis budget cuts cause library layoffs, changes in hours (C. Appeal/Boozer)
City of Memphis budget cuts will cause 43 part-time employees who work in Memphis Public Libraries to lose their jobs. The cuts also are forcing 14 of the libraries to reduce their hours of operation beginning Monday. The cuts are expected to save $595,000. George Little, the city's chief administrative officer, said the City Council's public services and neighborhoods committee selected these options to avoid closing any facilities permanently or dismissing full-time employees. All city divisions, except those that affect public safety, were required to reduce their budget requests. "In tough economic times, the City Council and mayor had to make some tough decisions," said Councilman Kemp Conrad. "I think it is important that we keep taxes down and still provide those services that will keep our community safe." The director of libraries, Keenon McCloy, said part-time employees funded by a grant or contract are not being let go. After the cuts, 22 part-time and 245 full-time employees will remain. The Benjamin L. Hooks Central Library will experience the bulk of layoffs with 24 of its part-time employees being dismissed. It will open an hour later and close an hour earlier Monday through Saturday. http://www.commercialappeal.com/news/2011/jul/27/memphis-budget-cuts-cause-library-layoffs-changes

Jim Cooper Braces for Gerrymandering (Metro Pulse)

Congressman Jim Cooper was one of only five House Democrats to vote for the Republican Cut, Cap and Balance budget amendment last week, and he has a bill to try to keep himself from being gerrymandered out of office. Cooper is a veteran of Tennessee politics, one of the last influential elected Democrats in the state after a round of retirements last election. He is also the last Blue Dog. Cooper once represented the 4th District and now represents the 5th District, in Nashville. He is feeling the heat as the Tennessee U.S. House delegation shifted from 5-4 Democrat to 7-2 Republican in the last election. But more worrying for him is total Republican control of the state Legislature. A committee of Republicans is currently redrawing congressional districts and it is no secret that the committee is looking for extra Republicans to put into Coopers district. Cooper says he has a bill to inject transparency into the redistricting effort so that voters will know in advance what changes have been made before it is made final. (Translation: Put some light on the process and maybe I can prevent them screwing me so badly.) Given Republican control at the state capitol and the U.S. House, Coopers bill isnt likely to get much traction. http://www.metropulse.com/news/2011/jul/27/jim-cooper-braces-gerrymandering/

Mid-South congressmen seek delay of EPA oil spill regulation (C. Appeal/Sullivan)
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U.S. Reps. Stephen Fincher, R-Tenn., and Rick Crawford, R-Ark., have written to EPA administrator Lisa Jackson asking her to delay implementation of a regulation to prevent oil spills by focusing on its effect on farmers. The regulation, currently in the public comment period, would require containment structures around above-ground oil storage of 1,320 gallons or more. It relates to all such storage, including oil at commercial trucking facilities and utility companies. "In order to comply with these guidelines, many farmers and ranchers will need to undertake expensive improvements in infrastructure and must hire engineers to meet specific criteria," their letter says. It asks Jackson to reconsider the Environmental Protection Agency's November implementation of the regulations while talks with agricultural interests continue. It was also signed by U.S. Reps. Marsha Blackburn, R-Tenn., Alan Nunnelee, R-Miss., and Bennie G. Thompson, D-Miss., among others. http://www.commercialappeal.com/news/2011/jul/27/mid-south-congressmen-seeks-delay-epa-oil-spill-re/

Dems: Fincher slow with FEC report (Jackson Sun)

Could have named source of campaign loan sooner Rep. Stephen Fincher and federal election officials agree on this much: The Tennessee Republican violated campaign finance laws last year by inadvertently misreporting the source of a $250,000 bank loan to his campaign. But they disagree on a central question in the now-closed case: Could he have corrected the error more quickly? Elliot Berke, Fincher's campaign lawyer, says no. Democratic members of the Federal Election Commission disagree. In June, they voted to fine Fincher, R-Frog Jump, saying his campaign committee had "failed to take prompt corrective action," according to a statement they released last week. That statement was among documents released after the FEC's six commissioners three Democrats and three Republicans deadlocked June 14 on whether to fine Fincher up to $7,500. In one vote, the three Democrats voted for a fine. In another, the three Republicans voted for a warning letter instead of a fine. Four votes are needed to impose a penalty. Ultimately, the commission voted 5-1 to dismiss the case. In FEC campaign finance reports filed in July last year, Fincher said the loan came from personal funds. In fact, it came from Gates Banking and Trust Co., according to a legal analysis written by FEC lawyers and released last week. http://www.jacksonsun.com/article/20110728/NEWS01/107280313/Dems-Fincher-slow-FEC-report

Federal agency sends Hamilton County less money (Times Free-Press)

Hamilton County will receive less funding from the Federal Emergency Management Agency this year than in the past to help with food and shelter. The Emergency Food and Shelter Programs funding, based on employment and poverty level, has dropped 34 percent from about $200,000 to $132,624, according to Hamilton County board Chairwoman Eileen Rehberg. Across the nation, FEMA funding has dropped by 0.2 percent, which would indicate that Hamilton Countys needs this year are proportionally less than last year. The funding will be distributed to local agencies providing meals, shelter or housing assistance. Last year, of the 15 agencies that applied for funding, 13 received assistance. Agencies can receive an application by contacting Rehberg at eileenrehberg@uwchatt.org. The deadline for applications is Aug. 3. http://www.timesfreepress.com/news/2011/jul/28/federal-agency-sends-hamilton-county-less-money/?local

Federal cuts imperil Tennessee health care (Chattanooga Times Free-Press/Sher)

Tennessee hospitals, other health care providers and advocacy groups are making a statewide push to educate and warn the public and elected officials on the dangers of proposed federal budget cuts to health care. The Coalition to Control Spending with Care begins today with a newspaper advertising campaign in five major cities, including Chattanooga. The ad features a baby sitting in soapy water. Everyone agrees we must rein in federal spending, the ad says. However, simply cutting without considering the consequences is a bit like throwing the proverbial baby out with the bath water. In our urgency, we have to consider the human cost to our most vulnerable citizens and those who care for them. Otherwise, the ad says, the cuts will be devastating. The coalition warns that some legislation being advanced in Washington, D.C., could cut anywhere from $100 billion to $300 billion from Medicare alone over the next decade. That could have a $2.8 billion to $4 billion impact in Tennessee, which the group calls a very tough pill to swallow. Tony Garr, policy director of the Tennessee Health Care Campaign, an advocacy group participating in the coalition, said no one is offering anything by way of helping control costs on health care. Theres nothing about the underlying issues of why we spend so much on our health care in this country compared to other developed countries. http://www.timesfreepress.com/news/2011/jul/28/federal-cuts-imperil-tennessee-health-care/?local

States nervously watch debt-ceiling impasse (USA Today)

The U.S. government's stalemate over raising the debt limit is taking a growing toll on states as Tuesday's deadline draws near, with some canceling bond sales and identifying roadwork and other expenditures that could 7

be delayed. "As the deadline to Aug. 2 comes closer, people are really, really worried," says Scott Pattison, executive director of the National Association of State Budget Officers. A failure by Congress to raise the $14.3 trillion federal debt limit would lower the nation's credit rating and raise borrowing costs for states as well as 7,000 cities, counties, universities and non-profits. That's partly because many interest rates for everything from municipal bonds to mortgages are benchmarked to U.S. Treasuries. Even more worrisome is that states receive about 35% of their revenue from the federal government, including funds to build roads and schools and to help pay Medicaid and unemployment insurance, according to NASBO. To avoid defaulting on its debt and further harming its credit rating, the U.S. government likely would pay its bondholders but curtail other expenditures, such as disbursements to states, Standard & Poor's says. Even if the White House and Congress reach a deal, states could be hurt, because an agreement likely would feature deficit-reduction steps such as cuts in payments to states, says Anthony Valeri, LPL Financial fixed-income strategist. http://www.usatoday.com/money/economy/2011-07-27-debt-ceiling-states_n.htm

Uncle Sam to Pay More of the Tab For Health (Wall Street Journal)
Almost half the nation's health-care spending will come from government coffers by 2020, up four percentage points from 2010, according to new federal spending figures to be released Thursday. The data, published by the trade journal Health Affairs, shows how President Barack Obama's 2010 health-overhaul law will reshape who foots the bill for the nation's medical expenses by the end of the decade. Private employers will pay for a slightly smaller portion of the nation's health care because some large employers with low-wage workers are expected to stop offering health insurance, the report found. Federal and state governments will take on a greater portion because the health overhaul will greatly expand the number of Americans on the Medicaid insurance program for the poor, and the federal government will subsidize insurance plans for millions of lower earners through new insurance exchanges. In addition, the growth of Medicare enrollment from an aging population will push up federal health-care spending. Spending by federal, state and local governments is expected to account for 49% of all health spending, or $2.28 trillion, in 2020, up from 45% in 2010. http://online.wsj.com/article/SB10001424053111903635604576472411389580364.html?mod=ITP_pageone_1 (SUBSCRIPTION)

TVA hears questions about sand baskets at 4 dams (Associated Press/Poovey)

Sand baskets installed at four Tennessee Valley Authority dams to protect against the unlikely chance of flooding at its nuclear plants downstream are unnecessary and unsightly, a waterfront community group and others told TVA representatives. State Rep. Jimmy Matlock of Lenoir City said Wednesday he planned to contact other lawmakers who also have constituents affected by TVA's decision in 2009 to install the sand baskets some of them 7 feet tall at the Fort Loudon, Tellico, Cherokee and Watts Bar dams. He said the sand baskets installed at a cost of $4 million to $6 million are the product of some misguided agency decision. "We think it is a reaction to data that was provided somewhere out of some agency, probably in D.C., somebody sitting in a cubicle looking up the what ifs," said Matlock, who met with TVA representatives Tuesday night along with members of the Tellico Village Homeowners Association. "We just believe they have taken an extreme look at a possibility and then reacted." A Nuclear Regulatory Commission spokesman said Wednesday that with renewed attention to protecting reactors from flooding, TVA "may be able to do something different" than using the sand baskets, but also may not. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37076735.story

TVA says applying lessons from Fukushima (Knoxville News-Sentinel/Marcum)

TVA already complies with much of what is called for in a Nuclear Regulatory Commission report on lessons learned from the Fukushima nuclear crisis in Japan, but it is taking steps to implement the report's other recommendations, TVA said Tuesday. "We've already begun taking action to add additional communications equipment, extra diesel water pumps and electric generators at the plants," TVA Chief Operating Officer Bill McCollum said in a telephone news conference. Extra piping will also be added to improve the cooling systems, he said. On July 12, the NRC released its Near-Term Task Force Review of Insights from the Fukushima Dai-ichi Accident, which looked at whether changes were needed to NRC policies and regulations in light of the Japanese accident, which involved reactor core damage and release of radioactive material. The report concludes that US nuclear plants are operating safely but it calls for streamlining NRC's regulatory approach, which it described as a patchwork of requirements and safety initiatives. Other recommendations were aimed at nuclear plants themselves, such as making sure plants can operate for up to eight hours on backup power during a power outage, and upgrading earthquake and flood protection measures and improving systems for cooling 8

spent fuel. http://www.knoxnews.com/news/2011/jul/27/tva-says-applying-lessons-from-fukushima/

All Tennessee BlueCross stored data now secure (Associated Press)

BlueCross BlueShield of Tennessee says it has secured all its stored electronic records and there is no indication any customer information on computer hard drives stolen in October 2009 has been misused. A statement Thursday said the state's largest health insurer has completed a $6 million project that spokeswoman Mary Danielson said makes it possibly the first large company and first health insurer to encrypt all stored data. The insurer's vice president of technology, Michael Lawley, said Chattanooga-based Blue Cross Blue Shield has also adopted stricter security policies that should make customers rest easier about their privacy being protected. Fifty-seven hard drives containing information on about 1 million customers were stolen in Chattanooga, and BlueCross BlueShield provided free credit monitoring to members who were identified at risk of identity theft. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37083143.story

Hutcheson ready to borrow from Erlanger (Chattanooga Times Free-Press)

Hutcheson Medical Center will make its first six-figure dip into Tennessee taxpayer money, borrowing $700,000 from Erlanger Health System to meet payroll costs for July. Funded by Catoosa, Dade and Walker counties, Hutcheson entered a last-ditch management agreement with Erlanger, which offered up to $20 million in credit as part of the April deal. Hutcheson must pay back all loans from Erlanger, a process that could take years. Since Erlanger stepped in and for many months before that Hutchesons financial team has reported nothing but cataclysmic losses. In case Hutcheson fails, Catoosa and Walker have pledged $10 million each to pay back the lifeline, but only as a stopgap because the value of Hutchesons property, buildings and equipment likely will exceed $20 million in collateral, officials have said. Erlanger historically receives $3 million from Chattanooga and Hamilton County coffers, records show. Various Hutcheson boards gathered for a regular monthly meeting Wednesday night, and several trustees commended hospital management for keeping the money in the bank this long, as Hutcheson Medical Center Inc. board Chairman Corky Jewell put it. http://www.timesfreepress.com/news/2011/jul/28/hutcheson-ready-borrow-erlanger/?local

School board approves contract for charter school in Bartlett (CA/Garlington)

Before the Shelby County school board approved its first contract with a charter school, board members peppered an official for an hour Wednesday with nonstop questions about his operations. The board voted 5-0, with member Diane George abstaining. The vote allows Smart Schools to operate a new charter school in Bartlett. The decision means the county will now have 52 schools under its umbrella, but with limited authority over the charter school. The New Consortium of Law and Business school opens Aug. 20 with up to 35 seventhgraders in a former FedEx Kinko's building on Stage Road near Elmore Park Road. It plans to add sixth and eighth grades next year. "Our school has no intention nor desire for an acrimonious relationship with the district," Smart Schools executive director Tommie Henderson said. Technically, the school board had no choice but to approve the contract. After the board rejected the application for Smart Schools twice, the charter school appealed the decision to the state Board of Education; the state board ordered the district to approve the charter school's application. http://www.commercialappeal.com/news/2011/jul/27/shelby-county-school-board-approves-contract-chart/

Pathways to Crisis (Memphis Flyer)

Numerous twists and turns have led to the current city of Memphis-MCS showdown. It was about money then, and its about money now. One of the subtexts of the 2008 decision by the Memphis City Council to cut back on its annual financial commitment to Memphis City Schools was what was generally perceived as a perceived lack of accountability in MCS' expenditures. That was spoken to by several council members in the debate over whether or not to fund the schools. Another subtext of that decision was the simple desire to get the city and its taxpayers out from under the burden of dual taxation. Talks between representatives of city and county government and the two school systems toward the goal of what was hopefully called "single-source funding" had been ongoing for some time and would continue, finally breaking down for good in 2009 when Shelby County Schools board chairman David Pickler said a final nix to a variety of plans then being proposed by a 9

special task force on single-source funding. At the time, Pickler averred frankly on behalf of SCS: "Our numberone goal for 10 years has been special districts. We know it is a legislative long shot at best, perhaps." http://www.memphisflyer.com/memphis/pathways-to-crisis/Content?oid=3029127

MCS Payment Plan Gets School on Track (Memphis Daily News)

Memphis City Council members will probably cut the citys funding of the Memphis City Schools system for the current fiscal year to reflect a drop in student enrollment as noted by state education officials. All but about $1 million of $9.9 million cut in the $78 million sought by MCS leaders would be made up in the payment plan approved by the city schools board this week. The July 26 vote means the first day of classes will start as planned on Aug. 8 provided the council approves the school systems budget at the Tuesday, Aug. 2, council meeting. Approval of the budget would also be approval of a monthly payment plan that is the heart of the compromise between the city and MCS. The board voted earlier this month to delay the start of the school year if it didnt get varying amounts of funding ranging from a total of more than $100 million owed over several fiscal years to $9 million left from the fiscal year that ended June 30. The amount changed again when Memphis Mayor A C Wharton Jr. proposed making it the $78 million to be paid by the city for the current fiscal year that began July 1. As that was happening, the states report on attendance arrived counting a drop of 2,500 students on the rolls for MCS. That allows the city of Memphis to cut its share of funding and still meet state maintenance of effort requirements. That is the $9.9 million funding difference. http://www.memphisdailynews.com/news/2011/jul/28/mcs-payment-plan-gets-school-on-track/

MORE

OPINION Editorial: U.S. default threatens state (Commercial Appeal)

Citizens have sufficient reason to let Congress know they're tired of waiting for a settlement. As if news about the economy weren't bad enough for Tennesseans, it got worse this week when the state was listed among five whose credit ratings will probably drop if the federal government's rating slips. Gov. Bill Haslam commendably 10

called on Congress to reach an agreement that would prevent a credit rating downgrade. High ranking officials in his administration are appealing the decision by Moody's Investors Service to put Tennessee on its list of states that will likely lose their triple-A status. Tennesseans have sufficient reason to call on their congressional delegation to set aside what Haslam has called "an incredibly serious game of chicken" and support a compromise. A lower credit rating would translate into higher interest rates taxpayers must pay to borrow money for investments in the infrastructure needed to attract new industry and jobs. "We have a country that's literally waiting to see what will happen," Haslam said. "Until W ashington shows that we can live within our means and come to a political agreement about how to solve that, you're not going to see banks willing to loan money, you're not going to see people willing to invest their own capital, and so we won't have any job growth until that happens." http://www.commercialappeal.com/news/2011/jul/28/editorials-us-default-threatens-state/

Frank Cagle: Amazons Greed Knows No Borders (Metro Pulse)

Say goodbye to 800 state jobs, for now For those of you who think state employees are slackers, you should know that last Christmas Eve someone in Gov. Phil Bredesens Department of Revenue generated a document to ask the Secretary of States office to call for a rule making hearing in February to change the definition of a distribution center. This would seem to indicate that the Bredesen administration thought the regulations needed to be changed in order for Amazon to operate distribution centers in Tennessee without collecting sales tax on the purchases. The distribution centers would become fulfillment centers. Cute, huh? The rule-making hearing to change the regulation was scheduled for Feb. 25. So we had the inauguration and the Haslam administration was installed and the new Department of Revenue team canceled the rule-making hearing. The hearing was never rescheduled. So how then is it possible for Amazon to operate without collecting sales taxes if no rulemaking public hearing was ever held and the rules were not changed?. http://www.metropulse.com/news/2011/jul/27/amazons-greed-knows-no-borders/

Editorial: Black right to push bill on Medicaid loophole (Daily News Journal)
Kudos to Congressman Diane Black, R-Gallatin, for her efforts to close an apparent loophole in the health-care reform law that could potentially save taxpayers billions of dollars. Black recently began pushing legislation that will fix a $13 billion provision of the 2009 health-care reform law that is increasingly raising eyebrows. As it stands, the provision would allow several million middle-class Americans to receive Medicaid, which is the government-sponsored health insurance program intended for the nation's poorest citizens. According to a recent Gannett Washington Bureau report, when the law takes effect in 2014, roughly 3 million more people could be eligible for Medicaid and for health insurance exchange subsidies, because the law disregards Social Security income when determining who qualifies for the programs. That means a married couple retiring at 62 could still qualify for Medicaid with an annual combined income of $64,000 roughly four times the federal poverty level, according to Health and Human Services department estimates reported by the Associated Press. That's obviously not who or what Medicaid was intended for, and such a loophole should be closed as quickly as possible. Thankfully, there appears to be plenty of time to properly research this issue before the law takes effect in three years so that unintended consequences can be addressed. http://www.dnj.com/article/20110728/OPINION01/107280327/Editorial-Black-right-push-bill-Medicaid-loophole

Guest columnist: TVA's action plan is designed to strengthen nuclear facilities (TN)
Safety of region's people is priority Tennessee Valley Authority, one of the nation's nuclear power leaders, takes the responsibility of protecting the health and safety of the public very seriously. It is a trust with the people of the Tennessee Valley that makes the safe operation of our nuclear power plants our top priority. In the aftermath of the events at the Fukushima Daiichi nuclear plant in Japan, we want the public to know what TVA is doing to make our reactors even safer than they were before. Two weeks ago, a special Fukushima task force formed by the Nuclear Regulatory Commission issued a series of recommendations, the first step in a long regulatory process. TVA is not waiting for this process to run its course before acting. We developed an action plan designed to strengthen our nuclear facilities to withstand combinations of large-scale disasters, both man-made and natural. We believe this plan tracks closely with the NRC task force proposals. The TVA plan stands on a strong foundation of safety. Our six nuclear reactors have robust designs that feature multiple safety and backup systems to keep fuel in the reactors and used fuel pools supplied with cooling water, even in the event of an 11

accident. They are designed to withstand earthquakes and floods stronger than those ever recorded in the Tennessee Valley. They're built to survive tornadoes even stronger than those that struck the region on April 27. http://www.tennessean.com/article/20110728/OPINION03/307280069/TVA-s-action-plan-designed-strengthennuclear-facilities?odyssey=mod|newswell|text|News|p

Guest columnist: Recent decisions indicate TVA on wrong track (Tennessean)

Fukushima was the fourth major nuclear accident in world history. It marks the continual failure of the most advanced technological societies on the planet to safely harness nuclear power. For Tennesseans, the question is rightly: Can TVA keep the lights on without precipitating a similar disaster? Decisions made by the company during the last few years in pursuit of the nuclear option indicate it is on the wrong track. TVAs proposed Bellefonte plant in Hollywood, Ala., provides an example. First, TVAs plan for Bellefonte units 1 and 2 begun in 1974, halted in 1988 and reinstated in 2009 is marred by irreparable lapses in judgment and mechanical failures that appear to put safety last. Years of neglect, the discovery of structural problems and the dismantling of steam generators and the reactor coolant system have converted this obsolete reactor from a power plant to a power point of what to avoid. An ominous sign: In 2009, a reactor containment tendon snapped; the reason for this major structural component failure is so far unknown. Bellefonte 1, if completed, would be 80 or 90 years old at the end of its operating license. Neither TVA nor the Nuclear Regulatory Commission has data on components older than 60 years. We lack critical information about the impact of aging on equipment reliability and safety. http://www.tennessean.com/article/20110728/OPINION03/307280064/Recent-decisions-indicate-TVA-wrongtrack?odyssey=mod|newswell|text|News|s

Editorial: Americas Credibility Is at Risk (New York Times)

Until this week, Wall Street has shrugged off each new low in the debt-limit debate, confident in a whistlingpast-the-graveyard kind of way that Washington would raise the debt limit on time. Many Republican politicians have insisted that the economy and the country could shrug off a default. Up to Wednesday, the most conservative members of the House seemed to be welcoming a default. They refused to support a plan to raise the limit and impose overly harsh spending cuts put forward by Speaker John Boehner. The cost of this fecklessness should now be clear to everyone. The Dow Jones industrial average dropped nearly 200 points on Wednesday and is down 421 points since Friday when Mr. Boehner left President Obama waiting for a phone call that never came about a deal that never closed. W ith bond-rating agencies issuing dire warnings, investors have begun to demand higher rates on Treasury bills that come due in August. Prices have surged on credit default swaps, which are used by investors to protect against default and by speculators to bet on the likelihood of default. On Wednesday, with Mr. Boehner warning his troops to get your ass in line to keep things from getting worse, several hard-line members began switching their votes and chances increased that his plan would pass the House. Whether that gets Washington any closer to a tolerable deal isnt clear. http://www.nytimes.com/2011/07/28/opinion/28thu1.html?_r=1&ref=todayspaper Note: The News Clips will be distributed later than usual Friday, July 29 though Sunday, July 31. ###

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