State Senator Mae Beavers (R-Mt. Juliet) stated today that she is pleased that the Governor had kept his commitment to restore all the state-shared taxes to local governments. The General Assembly passed a bill to make the restoration permanent.
We are very glad to see that all of the state-shared taxes taken to balance Governor Bredesen's budget in 2003 have now been fully restored,? stated Senator Beavers. The Governor made a commitment to us last year to restore half of those funds then and the other half this year. We are pleased that he has honored that commitment to us and to local governments.
Last year, members of the General Assembly were concerned that the state-shared taxes had not started to be returned in 2004 as many had expected. Public Chapter 503, Acts of 2005, restored half last year in the Fiscal Year 2005-2006 budget. That amount was projected then to be $20 million.
This year, the General Assembly passed Senate Bill 3970 to restore the other half of the state-shared taxes and to make the restoration permanent. Based on increased revenue projections, that figure is now budgeted at $24 million for Fiscal Year 2006-2007.
Senator Beavers represents Senate District 17 which includes Cannon, Clay, DeKalb, Macon, Smith, Trousdale, and Wilson counties, and part of Sumner County.