Knoxville Paper Gets Tennessee Revenue Story Wrong

HobbsOnline (a blog) ^ | July 15, 2004 | Bill Hobbs

[Bill Hobbs]

Today's Knoxville News Sentinel has an editorial about Tennessee's state budget and surging sales tax revenue which makes two errors. First, it implies that one big reason for the surge in revenue is the sales tax rate increase passed two years ago. Second, the KNS asserts that tax revenues this fiscal year "are expected to be about $225 million over the budget estimated for the fiscal year just ended."

Earth to the KNS editorial board: With 11 months of revenue already collected, the state's total tax revenue collections are already $380.9 million over the budgeted estimate for the 2003-04 fiscal year, with July's revenue likely to add to the surplus.

In fact, according to the Department of Revenue's data spreadsheet distributed by F&A along with the press release, not only is revenue running $380.9 million ahead of the amount estimated in the current fiscal year's budget, it is a whopping $603.5 million, or 7.73 percent, ahead of last year's revenue.

And it isn't because of the sales tax increase passed in 2002.

[Bill Hobbs]

I've got more details, with links to supporting articles and official documents, on my blog. The big question, especially for Tennesseans living in the Knoxville area, is why can't or why won't the Knoxville News Sentinel report accurately on this issue? Are they still pushing the pro-state income tax agenda?

[GailA]

What else is new? All the TN papers are pro-income tax.

[GailA]

A note of interest, Shelby Co Commissioners voted DOWN a property tax hike for 'the children' schools this week.