Lawmakers push ahead on budget despite four arrests
NASHVILLE — Lawmakers pushed ahead with the state budget Thursday even though four of their colleagues were arrested in a morning sting operation by federal and state authorities.
Gov. Phil Bredesen and legislative leaders decided it was important for state government to march along despite revelations of an ongoing federal bribery and extortion investigation involving the legislature.
“We will not let today’s events disrupt the vital work still before us,” Bredesen said.
Much of the budget work was finished as lawmakers eyed adjournment Friday, but some issues remained.
In an odd development Thursday, Republicans made a move to save TennCare from the governor’s proposed cuts — and Democrats argued the expanded Medicaid program should be slashed.
The argument reversed long-standing roles, and set up a showdown Friday morning when the full Senate debates the state budget.
Republican Sens. Jim Bryson of Franklin and Diane Black of Gallatin said they might have enough support to divert about $100 million more to TennCare, sparing an additional 67,000 people from the planned cuts.
The money would keep the “uninsurable” population on TennCare, often people who are very sick and can’t find health insurance in the private sector. The Republican plan would go into place only if the state wins ongoing court cases before Aug. 1, the senators said.
Democratic Senate Leader Jim Kyle of Memphis said the Republicans were trying to “put more money into a health care system that has failed us.”
Bryson, the Republican, said he wants to “spare the very sickest in our state.”
Gov. Phil Bredesen’s administration is opposing the effort, which takes money the governor wants to use on the safety net to cope with the fallout of TennCare cuts and bolsters county health centers.
State Finance Commissioner Dave Goetz said Bredesen wants to go with the original plan of cutting 226,000 people if they win the ongoing court cases. If they lose the court cases, the administration plans to cut about 323,000 people from the rolls.
The Republican plan would reduce the cuts to roughly 150,000.
“We are trying to make sure we take care of the very sickest,” Bryson said. “Our plan is to bring the sickest people back on TennCare (until it can be reformed).”
Republicans have been frustrated with Bredesen in recent days, saying he hasn’t implemented any meaningful TennCare cost-saving reforms more than two years into his tenure.
Bryson said their plan would give the governor one more year to put those reforms into place while keeping most of TennCare intact. If the governor can implement benefit limits and other cost-saving methods in that year, then the state could afford keeping most people on Tenncare, he said.
Kyle said he hopes Bryson and Black change their minds about their idea. He said they should let the governor march ahead with his master plan to reduce the share of the state budget spent on TennCare.
“I think our plan achieves more important goals,” Goetz said.
A plan to give state employees a bigger pay raise than 3 percent was also cast aside Thursday in favor of a study on the issue.
On Friday, House members are also scheduled to take up the state budget. Before adjourning Thursday night, they passed two tax revenue bills sponsored by House Majority Leader Kim McMillan, D-Clarksville.
One would change the percentage of local share from certain taxes that are paid into the state’s general fund, including taxes on alcoholic beverages. The other bill would require a tobacco manufacturer that is not participating in the master tobacco settlement agreement to pay the state Department of Revenue an equity assessment of 50 cents on each package of cigarettes the manufacturer produces.