Haslam offers goals for Tennessee in State of the State address

Speaking to a joint session of the General Assembly Monday night, Gov. Bill Haslam said he believes the current state of Tennessee is "great"—but there's still room for improvement. 

The governor spent his second State of the State address focusing on initiatives proposed in his new $31 billion budget package for the upcoming fiscal year. Haslam also returned to the theme of encouraging his fellow legislators to "believe in better" for Tennessee, in areas that included jobs, crime and education.

"I don't think any of us should be satisfied," Haslam said, beginning his speech. "So I stand here and ask you: Is the current state of our state good enough? I think the answer is no. I think we can believe in better."

Haslam's speech lasted roughly 40 minutes and covered dozens of topics. It began with the governor reflecting on accomplishments made during his first year in office. 

Citing newly built Amazon distribution centers—two of which are located in Hamilton and Bradley counties—the governor said his Jobs4TN plan was working and offered figures of more than 28,000 new jobs created and more than $4 billion in capital investment in 2011 as proof.

"We continue to focus on regionalism, existing businesses and key clusters, but make no mistake, that does not mean we're taking our foot off the gas in pursuing new business for Tennessee," he said. "I appreciate how well we've worked together on job creation."

There was no direct mention by Haslam of the more than 1,100 state jobs slated for elimination in his new budget proposal. Of those jobs, 617 are filled, and 549 are vacant, with around 170 of them stemming from the proposed closure of the Taft Youth Development Center in Pikeville.  

Haslam said he was seeking to "transform the way we do government" and emphasized his desire to recruit and retain a talented workforce. 

"With limited scale and federal dollars to work with, Tennesseans expect us to do more with less," he said. "To do that, we must be able to recruit, retain and reward the best and brightest employees, so we can give the type of service our citizens deserve."

The governor then suggested a 2.5 percent pay raise for state employees, complimented by a "true salary survey," which would compare state salaries to those in the private market as well as in federal and local government. The raise would account for more than $123 million of the proposed budget and would come on the heels of a 1.6 percent salary increase last year.

Education reform was also a key focus in the governor's speech, with Haslam saying he was "very confident" in Tennessee's chances to be granted a waiver of exemption from federal No Child Left Behind standards.

The governor also stressed his goals for growing the percentage of Tennesseans attaining college degrees and said that budgets for state higher education would be seeing increases in funding.

"For most of the past two decades, higher education has received less funding for their operating budget. That changes this year," he said. 

The governor went on to describe his proposals to lower taxes on groceries and increase the level for exemption on the estate tax from $1 million to $1.25 million. He also said his budget would add $50 million into the state's "rainy day fund" to offer critical services during difficult times.

Toward the end of his speech, Haslam emphasized the importance in reducing state trends in drug use and violent crime, citing less-than-complimentary statistics that place Tennessee at the top of national lists for categories such as domestic violence offenses. 

The governor pressed components of his new public safety plan, which would instate mandatory jail time for domestic violence offenders and increase sentences for repeat offenders, among other things.

"Keeping our citizens safe is a fundamental responsibility of state government, but public safety also plays a significant role in assuring that Tennessee continues to be an attractive place for businesses to locate and grow," he said. 

Although Republican leaders in both the state House and Senate offered satisfactory reviews of Haslam's address, members of the Tennessee Democratic Party issued a statement lamenting several components of the governor's plan for the state, particularly a lack of focus on jobs. 

"Haslam's jobs number doesn't account for job losses," the statement said. "Additionally, the jobs picture has nothing to do with Haslam's Jobs4TN plan, which is basically only a printed brochure at the moment … With all four key strategies having accomplished little to nothing in 2011, it's a major stretch to say this program had a meaningful impact on the 1.2 percent increase in employment in 2011."

Democrats also took issue with proposed changes to education reforms regarding teacher compensation and classroom size, calling them "a step backward." The raise in the level for estate tax exemption was also criticized.

"When it comes to tax relief, working families should be our top priority," the statement said. "The wealthy can wait. In times like these, multimillionaires should be giving to charity, not getting it from the government."