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Haslam Adds Spending to Budget Plan, Cuts Deal with TSEA

Gov. Bill Haslam announced Monday a compromise with the Tennessee State Employees Association on civil service reform legislation and plans to add about $28 million in spending to his proposed state budget for the coming year.
The governor’s proposed amendment to the state budget calls for increasing fees paid to local governments for housing prisoners in county jails, in part to reduce complaints about an administration bill to imposing longer sentences for repeat domestic violence offenders. Some local governments had protested what the called an “unfunded mandate” from the state, since they will have to cover the costs of keeping jailed offenders longer.
The increase in prisoner payments by $2 per day will cost the state an estimated $4 million per year. The increase in domestic violence sentences is projected to cost local governments collectively about $8 million per year.
Other changes in the$30.2 billion budget plan from the original version submitted in February include:
-The governor’s proposal to reduce the state sales tax on groceries from 5.5 percent to 5.3 percent is revised to set the new rate at 5.25 percent next year. Under the Haslam plan, the rate would then fall to 5 percent in the following year. The change from 5.3 to 5.25 percent costs the state an estimated $3.3 million in lost revenue while saving consumer another nickel on a $100 grocery bill, or a total of 25 cents.

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