TENNESSEE

www.tncounties.org A publication of the Tennessee County Services Association

November - December 2016

Vol. 39, No. 6

COUNTY NEWS Broadband Access Options Considered

Haslam Asks Mayors To Talk About Roads, Funding County mayors attending a recent 2017 Legislative Preview were greeted with a challenge from Goveror Haslam, who asked them to not “let us kick the can down the road” when it comes to addressing transportation and infrastructure funding issues during the first session of the 110th General Assembly. The governor’s remarks are the highlight of this issue’s Backpage Interview, which begins on Page 8. Above, Hardin County Mayor Kevin Davis, president of the Association of County Mayors, welcomes the governor for his address. Photos courtesy of State Photographic Services.

TACIR Focuses On Mental Health, Jail Reentry Ideas By JESSICA HIMES TCSA Assistant Director, Policy & Research In 2007, the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) issued a report entitled “Beyond Capacity: Issues and Challenges Facing County Jails.” This report examined the state of county jails across Tennessee and offered solutions on how to combat a number of issues such as of overcrowding, reimbursement for housing state inmates, healthcare and medication for inmates, and housing illegal aliens. The 2007 report outlined several recommen-

dations such as requiring the Tennessee Department of Correction (TDOC) to reimburse county jails for the daily cost of housing state prisoners who are awaiting probation revocation hearings, setting a flat reimbursement rate, simplifying the reporting process for local jails holding state inmates, and requiring the Department of TennCare, Department of Human Services, and Department of Mental Health to work more closely with jail administrators to provide certain needed services to inmates. In May 2016 members of the commission requested the research

staff revisit that 2007 report and update the status of jails in the state and how housing state prisoners in county jails affects county governments. TACIR staff reported that since the issuance of the 2007 report several developments and initiatives have changed functions within the Tennessee corrections system. For starters, Governor Haslam created a public safety subcabinet which developed a multi-year public safety plan for the state and he created a task force designed specifically to examine sentencing and recidivism. The task force published a report which recommended sentencing

reform, data collection, and alternatives for probation and parole violations while the public safety subcabinet released a comprehensive Public Safety Action Plan. In addition, the General Assembly passed the Tennessee Prescription Safety Act and Public Safety Act of 2016 and other legislative measures which are designed to hopefully curtail prescription drug abuse, methamphetamine production, and implement reform elements within the Public Safety Action Plan. At the December 2016 meeting of TACIR, several parties were brought together to testify on the

current state of jails in Tennessee. Representatives of TDOC testified in the current fiscal year the Department has allocated $173 million, roughly 18 percent of their entire budget, to reimburse local governments for state inmates housed at the local level. Those inmates who local governments receive reimbursement for are classified as either a locally sentenced offender or an inmate within the jail backup population. A locally sentenced offender is one who is a convicted felon but ordered by a judge to serve out their sentence in a county jail; these inSee Jails, Page 5

Counties Face A Barrage Of Wildfires, Severe Weather

The past several weeks have been busy ones for county and state officials as numerous emergency events occurred, stretching emergency management officials and responders as they faced wildfires and severe storm conditions. Pictured, clockwise from top left, vehicles travel through a storm-damaged area of McMinn County, where one person died after a tornado touched down there. Above, Sevier County Mayor Larry Waters talks with other county, state and federal officials during a visit from Governor Haslam and U.S. Senators Lamar Alexander and Bob Corker. Polk County Executive Hoyt Firestone, right, assesses tornado damage there with Governor Haslam. Photos courtesy of State Photographic Services.

The coordination amongst local emergency management offices, various state departments, fire departments, the military and many other agencies is being heralded as personnel work to rebuild in East Tennessee, where 18 people have died because of wildfires and severe storms during the past month. “We’ve seen the form of the Son of God all around us in this time,” said Sevier County Mayor Larry Waters, in reflecting on the efforts of emergency responders, volunteers at the shelters, in areas where donations are being taken, and in those donating goods and money for the recovery efforts there in the aftermath of devastating fires. Emergency personnel statewide have been kept busy, particularly in the Sevier County area where an estimated 18,000 acres have burned and 2,460 structures were destroyed, damaged or effected by the fire since late November. At least 2,100 homes and 60 businesses were destroyed. The total damage is estimated at more than $500 million, according to county officials assessing the recovery. “Twenty-four years ago I responded as a rookie Sevierville firefighter to what I could only imagine would be the biggest fire I would ever see,” said Kevin Lauer, now a fire consultant for The University of Tennessee County Techni-

cal Assistance Service (CTAS). “My mind could not imagine that I would one day have the responsibility of leading and coordinating the largest mutual aid deployment in the history of the Tennessee Fire Chiefs Association (TFCA) Mutual Aid Response team to that very same area.” Fire was originally reported in the Great Smoky Mountain National Park near Gatlinburg at the Chimney Tops 2, according to the Tennessee Emergency Management Agency, whose emergency operations center at its headquarters in Nashville was used to help coordinate much of the relief effort. The remoteness of the location and the steep terrain with vertical cliffs and narrow rocky ridges made access to the area difficult for firefighting efforts. On Monday, November 28, conditions got worse, fast. Supt. Clay Jordan of the Great Smoky Mountains National Park sited forecasts from earlier in the day that said the area around the Chimney Tops 2 fire might see wind gusts of up to 40 mph. Exceptional drought conditions and extreme winds in excess of 87 mph caused the wildfire to grow rapidly as embers are believed to have been carried miles away and created spot fires along the way. “We believe there was no way we could have controlled the fire prior to the wind event,” said Supt. Jordan

during a press conference on December 13. “The reality is that we believe that no number of firefighters or fire engines could have stopped the spread of this fire in such extreme wind conditions.” The Chimney Tops 2 fire has consumed some 17,140 acres, according to the park service, and another at Cobbly Nob caused by the spread of embers involved some 764 more. More than 14,000 residents were evacuated because of the fires as power lines and cell towers failed or were downed because of the blaze as it ripped through the area. At the peak of the blaze in the Gatlinburg area, more than 200 apparatus, several incident management team members, and over 800 personnel were deployed and serving the Sevier County communities, according to Lauer. “Our mutual aid system works and has been tested heavily the past several weeks,” Lauer said. He added that once the blaze began to abate, personnel switched to rescue and recovery mode. To date 14 people died in the Sevier County fires and another 160 treated for injuries. While those fires are not entirely contained inside the national park, Sevier County Mayor Larry Waters reported See Fires, Page 5

By JESSICA HIMES TCSA Assistant Director, Policy & Research At the June 2015 meeting of the Tennessee Advisory Commission on Intergovernmental Relations (TACIR), Chairman Mark Norris requested the commission study the current status of broadband deployment, availability and adoption in the state, assess where there are gaps in coverage, evaluate best practices in other states for encouraging deployment and adoption, and recommend ways that Tennessee could increase broadband availability and adoption in the future. Beginning with the October 2015 commission meeting, parties from all sides and backgrounds dealing with and impacted by broadband and internet service testified and offered information on the topic. The commission began with hearing from current broadband providers as well as representatives of consumers and the community including Hickman County Mayor Shaun Lawson, the Tennessee Highway Patrol, and Tennessee Farm Bureau. At the January 2016 meeting more technical aspects and current standings of coverage across the state were submitted for the Commissions review. The May meeting consisted of a panel discussion of federal, state, and local regulations of broadband deployment with August focusing mostly on the publication of the Tennessee Department of Economic & Community Development’s broadband adoption survey results and recommendations for how Tennessee could move forward with increasing deployment and coverage. This December a draft report containing elements and data from all previous presentations and testimonies was submitted to the Commission as well as several recommendations by TACIR for potential future legislative actions. The draft report and recommendations provided are not final until approved by an affirmative vote by the members of the commission. Dr. Matthew Owen, a senior research associate at TACIR overseeing the broadband report, presented the draft to commission members while answering questions regarding the report’s content and receiving input from members on other aspects to include in the final report. Dr. Owen’s draft report states there are several government and private initiatives to address both broadband access and adoption and emphasizes that “Tennessee should focus its efforts on supporting and coordinating these existing initiatives and on addressing any remaining coverage and adoption gaps”. TACIR presented data which states less than half of Tennesseans with access to broadband subscribe to the service perhaps because some residents do not see the value in what the service can offer, do not know how to use broadband, or because of the price of the service itself. Several draft recommendations for encouraging more Tennesseans to adopt broadband service by utilizing existing public and private resources within the state were offered to commission members at the December meeting. The first recommendation offered is increased funding to public libraries so they may improve access to digital literacy resources in communities throughout the state and expand hotspot lending programs offered to encourage more individuals to use broadband by increasing access to service citizens could not otherwise afford on their own. Also provided as a potential recommendation was encouraging the state Department of Education and Tennessee State Library and Archives to continue to work with schools and libraries to help them maximize the state’s use of federal E-Rate funding, a program which provides subsidized broadband service to schools and libraries, to help every school and library in the state have broadband quality internet service. In order to increase broadband availability in Tennessee, the TACIR staff provided several recommendations for the commission to review. First, Tennessee could use the broadband deployment fund, a fund which was created by statute but See Access, Page 4

SAVE THE DATE - COUNTY GOVERNMENT DAY - MARCH 13-14, 2017 - REGISTRATION OPENING SOON

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TENNESSEE COUNTY NEWS / www.tncounties.org

THE PRESIDENT’S REPORT

TENNESSEE

COUNTY NEWS Vol. 39, No. 6

November - December 2016

November - December 2016

Executive Director/Editor: David Connor Assistant Director, Policy & Research: Jessica Himes CTAS Communications Specialist: Brett Howell TCSA President: Dan Eldridge 1st Vice President: Dwight Van de Vate 2nd Vice President: Dwight Jones Tennessee County News (USPS 599-770) is published bi-monthly for $10 per year by the Tennessee County Services Association, 226 Capitol Boulevard, Suite 700, Nashville, TN 37219. Periodicals postage is paid at Nashville, TN. POSTMASTER: Send address changes to Tennessee County News, 226 Capitol Blvd., Suite 700, Nashville, TN 37219. Tennessee County News encourages the submittal of information and material for publication. TCSA does not assume responsibility for the loss of or damage to any material submitted. All unsolicited manuscripts, photographs and other material should be accompanied by a self-addressed, stamped envelope. Advertising rates and requirements are available upon request. www.tncounties.org

TVA To Expand Bull Run Coal Storage Operation By DEBORAH GRUBBS Program Director Association of Tennessee Valley Governments TVA announced Thursday, December 1st that it proposes to expand the coal ash storage capacity at its Bull Run Fossil Plant near Clinton, Tennessee. The Tennessee Valley Authority released a final Environmental Impact Statement in which it weighed options for dealing with coal combustion waste at the Bull Run plant. The federal utility looked at hauling the coal waste off site to a permitted landfill, building a new landfill on TVA property adjacent to the plant or taking no new action. Scott Brooks, TVA spokesman, said it was decided to build a landfill to expand the capacity for coal ash storage at the plant. “Part of the proposal would be to build a new dry storage landfill,” Brooks said. “The current storage will reach capacity within the next 10 years, so we need to start the process now to be ready.” TVA has committed to convert the handling and storage of coal ash and other byproducts of burning coal from a wet system to dry at all its fossil sites, including Bull Run. As part of that process, TVA evaluated numerous sites on TVA property around Bull Run for a new dry storage landfill. Brooks said TVA will need to identify a site on its property at the plant and go through a permitting process. There will be opportunities for the public to comment and have input during this, Brooks said. TVA also solicited public input as it was preparing the Environmental Impact Statement and those comments are included in the document. According to an executive summary in TVA’s environmental statement, the landfill option was chosen because the environmental impacts of building a new on-site landfill would be minor or temporary, and the location would avoid having to transport coal waste on public roads. This would avoid the air emissions, noise and safety risks involved in long-term hauling of coal ash by truck, according to TVA. TVA has coordinated with the Tennessee Department of Environmental Conservation and the Army Corps of Engineers on mitigation actions for areas that would be impacted by the project. TVA also said it will develop a dust control plan and implement a groundwater monitoring plan. Brooks noted that the proposed landfill project is separate from a coal ash impoundment closure project that TVA recently completed at Bull Run. Some environmental groups have raised objections to TVA storing coal ash on site at its fossil plants, due to the possibility of contaminants leaching into ground water. TVA plans to use a groundwater testing and monitoring program at all of its facilities to keep an eye on any potential contamination problem. After the 2008 Kingston Fossil Plant coal ash spill, TVA announced it would switch its coal ash handling methods from storing the ash in a slurry to dry storage. In 2014, TVA built a mechanical dewatering facility at Bull Run and had been handling and storing coal ash in dry form since. The Association of Tennessee Valley Governments (ATVG) has announced its 2017 meeting dates and locations. The ATVG 2017 schedule is as follows: • January 18 & 19, 2017 – Crown Plaza Hotel, Knoxville, TN ATVG will be touring Bull Run on Jan 19 at the winter meeting • April 19 & 20, 2017 – Kentucky Dam State Park, Gilbertsville, KY • July 19 & 20, 2017 – The Inn at Ole Miss, Oxford, Mississippi • October 17, 18 & 19, 2017 – Clarion Inn and Suites, Gatlinburg, TN

The Art Of Storytelling And Politics We are all storytellers, even if it is only in some small way. We share a quick note about a personal experience or something we have heard. Sometimes it’s just for a chuckle. Sometimes more, maybe in a classroom or church, or even a local civic club meeting, as we try to make or prove a point related to the discussion. It depends on the situation, but we are all built that way, whether we realize it or not. Admittedly, some of us are better at spinning the yarn than others of us. Regardless, it is a part of all of us to want to tell a great story. If you know anything about Washington County and the communities here, you know we are the home of a long-running storytelling celebration each year. The tales told here are examples of a lost art, of sorts. The ability, through an articulate sharing of oral tradition and lore - or just plain tall tales - to make people laugh or to make a simple point is a gift. It often makes me think about the role this lost art plays in my job every day. I dare say this could be said of yours as well. As elected and appointed county officials we are in positions where relaying information is often best told using a simple story or adage. I was reminded of this recently when Governor Haslam challenged county mayors from across the state to make sure they tell their own stories when they have a chance. The governor was speaking particularly about the issues of broadband access and the state’s transportation funding debate, but his advice spans a greater range of topics and issues. The governor that particular day heard the passionate tales of county mayors who are ready for the legislature to address infrastructure improvements. Then he asked for those impassioned pleas – the anecdotes shared - to find their way to the ears of state senators and representatives who will be debating the merits of new revenues for that cause. Smith County Mayor Michael Nesbitt, for instance, reminded the governor that his county commission was one of the first in the state to pass a resolution supporting transportation funding reform. He went on to say that the county needs about $2 million to help its

Legislators With Local Government Experience • Sen. Paul Bailey, former representative now in the Senate, a former White County commissioner; • Sen. Mae Beavers, a former Wilson County commissioner; • Sen. Janice Bowling, a former Tullahoma alderman from 1992-2004 and 2005-2008; • Rep. Harry Brooks, currently chair of the House Education Administration & Planning Committee, a former Knox County school board member from 1992-1996; • Rep. Kevin Brooks, a past Cleveland city planning commission member; • Rep. Dale Carr, an alderman for the City of Sevierville; • Rep. Mike Carter, a general sessions court judge in Hamilton County from 1997-2005; • Rep. Glen Casada, a former Williamson County commissioner from 1994-2001; • Rep. John Crawford is a Sullivan County commissioner. He was elected to replace former Rep. Jon Lundberg, who was successful in his election to the Tennessee Senate. • Rep. Jimmy Eldridge, a former Madison County commissioner; • Rep. JoAnne Favors, a former Hamilton County commissioner; • Rep. Brenda Gilmore, a former Metro Nashville-Davidson County councilmember; • Rep. Tilman Goins, a former Hamblen

Dan Eldridge TCSA President & Washington County Mayor

highway department take care of basic needs throughout the county. However, to raise that amount would require a 60-cent property tax increase. A property tax increase is not the fairest funding method for county road and bridge projects, Michael went on to say, adding “You as governor are talking about paving. We’re just talking about tar and chip, that’s all we want.” Without a statewide solution, Mayor Nesbitt said, his county is looking at letting its county roads go back to gravel. Wow. What a powerful story this is, regardless of how you feel about that particular topic. He made a point, one that left no room for mistake. Like the governor said in his response to our group of mayors in the room, those stories are what need to be told over and over again as we head into the new year. Those personal, anecdotal stories of the local impact of particular bills are what our legislators need to hear on a regular basis. As I said, that doesn’t stop at high profile issues. Our association directors say it is music to their ears when they hear senators and representatives say they have heard from a county official from back home and “this is what they have to say” about this particular bill. There is nothing like a personal touch between you and your legislators. As we head towards January 10, the day members of the 110th General Assembly assume their places on Capitol Hill, I would urge you to go ahead and have conversations with your senators and representatives, even if it is through the holidays. Reach out now,

County commissioner; • Rep. Marc Gravitt; a former East Ridge city councilman • Rep. Curtis Halford, a former Gibson County Commissioner • Sen. Thelma Harper, a former Metro Nashville-Davidson County councilmember; • Sen. Joey Hensley is a former Lewis County commissioner and school board member; • Rep. Gary Hicks is a former Hawkins County commissioner (2006-2015). He resigned from the commission after being appointed last session to fill the unexpired term of Rep. Mike Harrison. • Rep. Andy Holt, a former Weakley County commissioner; • Rep. Darren Jernigan, a Metro NashvilleDavidson County councilmember • Rep. Curtis Johnson, a former member of the Clarksville city council and mayor pro tem 1996-1997; • Rep. Sherry Jones, a former Metro Nashville-Davidson County councilmember member of the Metro Nashville planning commission, 1991-1994; • Rep. Kelly Keisling, former Pickett County executive from 1994-1998; • Sen. Bill Ketron, a former Rutherford County commissioner from 1990-98; • Rep. Mary Littleton, member of the Dickson County board of zoning & planning; • Rep. Ron Lollar, a former Shelby County school board member for three terms; • Rep. Gerald McCormick, a former Chatta-

talk with them and create that personal relationship. During the heat of a busy legislative session, we all need them to react to our telephone calls or personal visits, ask for our opinions, and be receptive to that story I’ve been talking about. With that said, I realize talking with a lawmaker might not be the most comfortable thing for many of us. And in many instances their time is quite limited to hear what we have to say. There’s a simple way to get help with that. If you have a story to tell, ask your county association to help you craft it so it will have the greatest impact. The words will still be your own. They can help you walk through your story and maximize the message so it has an immediate effect. While many members of our legislature did not change during the recent state elections, a few did. The staff at the Tennessee County Services Association maintains a list of legislators with local government experience each session and have found that the list gives us a great place to begin sharing those stores. The legislators are already aware of many of the issue facing us, so their ears should already be tuned into what we have to say. That should make our county story easier to tell. Many of those same stories are regularly told by these legislators who have personal insights into what we face on a daily basis in our respective counties. At the same time this list gives us a new set of marching orders, per say. Our stories will have to be honed as we approach other legislators without that experience. It will take many more of us to talk with them, often repeating the same message in our own special way, to get them to understand and support our perspective on an issue. We have our work cut out for us. As a way to highlight those legislators who have served local governments, elsewhere on this page is the list of senators and representatives who already understand a good story...the one we need to tell. Meanwhile, I want to wish you all the happiest of holidays. I look forward to the new year with you.

nooga/Hamilton County planning commission member; • Rep. Bo Mitchell, member of the Metro Nashville-Davidson County council since 2007; • Sen. Mark Norris, a former Shelby County commissioner from 1994-2000; • Senator Doug Overbey is a former Blount County Commissioner. • Rep. Bob Ramsey, a former Blount County Commissioner. He served as interim county executive on two occasions during his tenure. He also served on the regional planning commission and regional solid waste authority; • Rep. Bill Sanderson, member of the Kenton city zoning and appeals board; • Rep Charles Sargent, a former William County commissioner from 1990-1996, where he also served on the county planning commission from 1989-1997; • Rep. Johnny Shaw, a former Hardeman County commissioner and TCCA Legislative Committee member; • Rep. Mike Stewart, a former member of the Davidson County emergency communications district board; • Rep. Art Swann, a Blount County commissioner from 1978-1982; • Rep. Ryan Williams, a planning commission for the city of Cookeville; • Rep. Tim Wirgau, a former Henry County commissioner; • Sen. Ken Yager, former Roane County Executive

FROM THE EXECUTIVE DIRECTOR

Jails: A Forgotten Dumping Ground By law, Tennessee’s counties are required to provide jails. And those jails are required to take everyone brought to their door, regardless of whether they are overcrowded, understaffed or if they are the best place for the individual. Jails are, by far, the greatest source of liability in a county and for most counties, the biggest expense in the general fund. Unlike a new high school, the public doesn’t show support for a new jail. It’s unpopular to vote for a funding increase to build or expand a jail. It’s spending taxpayer money on a facility that everyone hopes they never have a reason to visit. But whether or not they want to, a significant percentage of our population does pass through the doors of the county jail. It is a population that is becoming increasingly difficult to manage. According to Tennessee Department of Correction jail summary reports, the average total population in Tennessee jails for 2016 was 28,797. This is up from an average in 1997 of 16,774. That is more than a 70 percent increase in jail populations over two decades. Nearly half of county jails are over 100 percent of capacity, with some smaller jails over 250 percent. Many counties have opened a new facility or completed an expansion to an existing jail only to find they are overcrowded again within months. Jails are also struggling with changing demographics and find themselves having to manage a population with a larger percentage of female inmates than the facility was designed to house. Jailers also may be having to segregate and manage the population because of religious or gang affiliations, ethnicity, sexual orientation or other characteristics that could compromise the safety of inmates and staff. In addition to the increased volume of inmates, the population is arriving with more problems. County Executive Jeff Huffman recently put it to me this way: “These people showing up at our jails are in much worse shape than they used to be.” He was talking about both their physical and psychological condition. They arrive with serious injuries or physical problems that require medical attention at the county’s expense. They arrive with addictions and substance abuse problems that create challenges for correctional staff and could trigger a need for expensive medication. And there is a growing problem of individuals arriving at the jail with significant mental health issues. A recent Department of Correction report identified 28 percent of the inmate population in Tennessee prisons as having a diagnosis

David Connor TCSA Executive Director

of a major mental health disorder, including schizophrenia, PTSD, and bipolar disorders. That percentage represents more than 6,000 inmates in TDOC custody. If a comparable population in our county jails have the same problems, that is an additional 8,000 individuals. Keep in mind that the total number of beds in state psychiatric facilities is only 562. Jails and prisons nationally are becoming the largest mental health facilities in our country and that is not their design or function. Some of the inmates in custody are people who have committed crimes who also happen to have a mental health issue that may have no relation to their criminal behavior. But there are others who are suffering a mental or emotional breakdown who end up in our jails because there is nowhere else to take them. Friends, family members or employers may call the police because they can’t handle a mentally ill person having a significant episode. Sometimes, they are brought to the sheriff for transport to a medical facility for commitment. In other cases, law enforcement may encounter an individual in crisis and, because the nearest mental health facility is hours away, choose to charge them with a minor nuisance offense so that they can be left at the jail which is a 15 minute drive. By triggering the criminal justice system in these cases, the individual’s circumstances become more complicated and the inmate becomes the county jail’s responsibility to keep safe from themselves and from others. This is all happening in a facility that is designed and operated in a manner that is intended to be the opposite of a therapeutic environment. The stress of the jail environment may cause them to deteriorate further. In the most tragic of cases, this results in a loss of life. Jail suicides are unfortunately becoming a regular occurrence in our state. Even in the best of cases where a positive outcome is eventually reached, the jail is trying to manage mentally

ill individuals and ensure they get appropriate services at a tremendous cost to the taxpayer. The problem is starting to get attention on a state and national level from a broad spectrum of organizations and across party lines. I testified this month at a hearing of TACIR looking at local jail issues (see Jails article Page 1). Washington is looking at these issues as well. The recently passed 21st Century Cures Act, which you may have seen described in the news as a reform of the FDA, also includes provisions to reauthorize the Mentally Ill Offender Treatment and Crime Reduction Act and to reauthorize block grants to support community based behavioral health services. It also authorizes $1 billion over two years for state grants to battle the opioid epidemic. If these programs are fully funded, they could assist efforts underway in Tennessee and other states to reverse troubling trends. Local mental health advocates and organizations as diverse as the ACLU and the Beacon Center are focusing attention on this issue. I am reaching out to these various groups to try and ensure county government is a part of these conversations about what is going on in our jails. There are states and communities across our country from as diverse places as Bexar County, Texas, and Seattle, Washington, that are finding successful approaches to reduce the cost of local jails, improve public safety, reduce recidivism and find more humane models for providing services to the mentally ill. It is my hope that we can raise awareness of these problems in Tennessee and start to see changes. At $37 per day – which is the reimbursement cap in almost every county, the state pays about $13,500 per year to house a felon in the local jail. That’s a good deal for the state, much cheaper than they pay private prison contractors. Because of that artificially capped price, the state does not have a strong incentive to manage the local jail population. But to the local taxpayer, both the state’s expense and the additional cost to the county general fund are coming out of their pocket. We need a comprehensive look at our local correctional system and how it plays a role as the gateway to the state’s prison system. We need improved communication and sharing of information between state and local agencies and all the diverse players that impact the local jail. And we need investment in a better mental health and substance abuse safety net so that our most troubled citizens are getting help and not just taking up space in the county jail.

November - December 2016

TENNESSEE COUNTY NEWS / www.tncounties.org

Gerregano Named New Revenue Commissioner

TCSA

OFFICERS President Dan Eldridge Washington County Mayor First Vice President Dwight Van de Vate Knox County Public Works Second Vice President Dwight Jones Williamson County Commissioner DIRECTORS ACM President Kevin Davis Hardin County Mayor John Gentry McMinn County Mayor Dale Reagan Clay County Mayor Jake Bynum Weakley County Mayor TCHOA President Ronald Coats Hickman County Highway Supt. Milton Legions Crockett County Highway Supt. Sandra Knight Bradley County Highway Supt. Joyce Holt Lewis County Highway Supt. TCCA President Landis Turner Lewis County Commissioner Danny Jowers Obion County Commissioner Ben Rodgers Putnam County Commissioner Stacy Vaughan Hawkins County Commissioner Tim Burchett Knox County Mayor Jim Coppinger Hamilton County Mayor Megan Barry Metro Nashville-Davidson Mayor Mark Luttrell Shelby County Mayor

ACM

President Kevin Davis, Hardin County First Vice President Dan Eldridge, Washington County Second Vice President Gary Reasons, Crockett County Secretary Rogers Anderson, WIlliamson County Regional Vice Presidents Melville Bailey, Hawkins County Bill Brittain, Hamblen County Gary Davis, Bradley County Michael Nesbitt, Smith County Bill Newman, Lincoln County Bob Rial, Dickson County Brent Greer, Henry County Skip Taylor, Fayette County Dwain Seaton, Chester County Past Presidents David McCullough, Cheatham County Howard Bradley, Robertson County Jimmy Harris, Madison County Greg Lynch, Unicoi County Benny McGuire, Obion County Kenny McBride, Carroll County Franklin Smith, Haywood County Larry Waters, Sevier County Jeff Huffman, Tipton County

TCHOA

President Ronald Coates, Hickman County First Vice President Eddie Simpson, Loudon County Second Vice President Gary “Jip” Lofton, Obion County Third Vice President Sandra Knight, Bradley County Secretary Joyce Holt, Lewis County Region I President Terry Haynes, Unicoi County Region II President Randy Jones, Putnam County Region III President Milton Ferrell, Moore County Region IV President Shannon Reed, Tipton County Past President Carl Stoppenhagen, Gibson County TCSA 2nd Vice President Dwight Van de Vate, Knox County TCHOA Officials on TCSA Board Milton Legions, Crockett County Sandra Knight, Bradley County Joyce, Lewis County

TCCA

President Landis Turner, Lewis County President-Elect Bill Kilgore, Sullivan County Secretary Paul Webb, Williamson County Treasurer Rusty Orick, Campbell County East Tennessee Directors Lee Chase, Washington County (2017) Stacy Vaughn, Hawkins County (2018) Evelyn Gill, Knox County (2019) Middle Tennessee Directors Roger Reedy, Giles County (2017) Dwight Jones, Williamson County (2017) Mark Beeler, Trousdale County (2018) John Gannon, Montgomery County (2019) West Tennessee Directors Emery White, Hardin County (2017) Benny Spain, Dyer County (2017) Richard Arnold, Obion County (2018) Roger Donaldson, Weakley County (2019) Directors David Briley, Davidson County Warren Mackey, Hamilton County Brad Anders, Knox County Justin Ford, Shelby County Past Presidents Ralph Puckett, Obion County James H. Westbrook, Weakley County Danny Jowers, Obion County Tommy Vallejos, Montgomery County Warren Mackey, Hamilton County Paul Mathenia, Henry County TCSA Directors Dwight Jones, Williamson County Danny Jowers, Obion County Ben Rodgers, Putnam County Stacy Vaughan, Hawkins County

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Family members pause for a photo during the naming ceremony. From left are Chelsea Seivers, grandaugther; Bones and Bettye Seivers; Vanessa Seivers, daughter-in-law; Evan Seivers, grandson; David Seivers, son; and Evan’s wife, Emily. Photo courtesy of the Tennessee Municipal League.

Nashville Building Named For Longtime Bond Fund Leader Charles ‘Bones’ Seivers Friends, family, colleagues and officials from across the state turned out to celebrate the naming of the Charles G. “Bones” Seivers Capitol Boulevard Building. The Tennessee Municipal League purchased the building in 1992. At the time, the building was owned by the Boston Five Cents Savings Bank (FSB) and TML was one of many agencies who were building tenants. FSB was interested in selling the building. With the assistance of the TML Risk Management Pool, Seivers negotiated the price and purchase of the building. His quick response in purchasing the building, his keen financial know-how, and his artful negotiating skills have resulted in not only a sound investment for the League, but also helped stabilize and secure the League’s future. For some 54 years, Seivers has tirelessly worked for municipal governments – first as an alderman on the city of Clinton’s Board of Mayor and Aldermen, later elected as mayor of Clinton, and then appointed as the city’s first administrator and city manager – a role he served in for 20 years. Throughout his tenure with the city of Clinton, he was always an active supporter and participant in the

Tennessee Municipal League and worked tirelessly as an advocate for both large and small municipalities. In 1979, TML made history when it founded America’s first statewide municipal liability pool. Seivers served as one of the founding members on the TML Insurance Pool Board of Trustees, now known as the TML Risk Management Pool. In 1985, he recognized the need for municipalities to obtain low-cost financing for capital improvement needs. He worked to bring municipalities and the state together and helped create the Tennessee Municipal Bond Fund. Bones served as chairman of the board for the first eight years of its existence. Upon his retirement from the town of Clinton in 1993, he continued to serve municipalities as President and CEO of Tennessee Municipal Bond Fund. In 1995, the Bond Fund was asked by the Tennessee County Services Association to structure a similar program for counties, resulting in the formation of the Tennessee County Services Loan Program. Now, after more than 25 years, the Municipal Bond Fund and the County Loan Program have made more than 1,000 loans totaling $3.4 billion – and having saved cities and counties $400 million in interest costs alone.

Healthcare, Engineering, IT, Production Top Annual Study Of Job Demands There is a high demand for workers in engineering, health care, IT and production jobs throughout Tennessee, according to a report released by the Tennessee Department of Economic & Community Development (TNECD). The department’s annual Labor and Education Alignment Program (LEAP) report is a regional study of occupations in high demand among employers throughout Tennessee. The evaluation identifies occupations with high employer demand by focusing on key metrics such as median wage, online job postings, hires, and job openings. The report also highlights a few key education programs offered in the state that prepare students and job seekers for in-demand occupations in these fields. TNECD’s Center for Economic Research in Tennessee (CERT) created the report along with the TNECD’s Director of Workforce Development. “Tennessee is poised to continue to experience significant job growth for the foreseeable future,” TNECD Commissioner Randy Boyd said. “How successful our

state is in the coming years, however, depends on the readiness of our workforce and aligning our statewide education offerings with the job needs of Tennessee industries. Programs such as the Tennessee Promise and Tennessee Reconnect are ensuring all Tennesseans have access to higher education. With the LEAP report, stakeholders across the state can better align education and industry to make sure our future workforce is getting the training and education for the jobs our businesses are looking to fill.” The LEAP report identified more than 250 occupations with high employer demand across the state. While nearly every industry group has jobs in high demand, the report focused on job openings in engineering, IT, health care and production occupations. The LEAP reports also outlines educational tracks and the types of postsecondary programs available throughout Tennessee that can prepare students for jobs in these four in-demand occupation groups. The LEAP report is meant to aid local, regional and state policy decision-making by outlining oc-

cupations in high demand and highlighting opportunities to reduce gaps between education and the workforce needs of employers. The report can be used for career exploration and planning by educators, career advisers, parents, students, local chamber of commerce and others. Additionally, the LEAP report highlights the opportunities for increased education and industry alignment in terms of workforce development strategies such as work-based learning, internships, co-ops and apprenticeships. LEAP is a statewide program designed to help post-secondary institutions provide students with the skills and credentials employers need through aligning education and industry. LEAP is the result of legislation introduced by Tennessee Senate Majority Leader Mark Norris. Twelve LEAP collaborations have been awarded grants in 2016 to assist with programs in advanced manufacturing, mechatronics, health care and other workforce development initiatives throughout Tennessee.

Latest State Figures Show Continued Revenue Growth In Currect Fiscal Year Tennessee revenues for November slightly exceeded revenues for the same month last year, according to state Finance & Administration Commissioner Larry Martin, who added that year-to-date revenues are $205.4 million more than originally projected. Martin reported that revenues for November were $907.0 million, which is 0.48 percent more than November 2015, and $6.8 million in excess of the budgeted estimate. November revenues represent consumer spending which occurred in October. “Our sales tax revenues recorded relatively moderate growth for November, ” Martin said. “Franchise and excise taxes recorded negative growth for the month which is not alarming since November is a very small collection month for corporate revenues.” On an accrual basis, November is the fourth month in the 20162017 fiscal year. General fund revenues for November were $7.7 million less than the budgeted estimate, and the four other funds that share in state tax revenues were $14.5

more than the budgeted estimate. Sales tax revenues were $27.8 million more than the estimate for November. The November growth rate was 3.53 percent. The year-to-date growth rate was 3.67 percent. Franchise and excise combined revenues for November were $10.7 million, which is $40.6 million less than the budgeted estimate of $51.3 million. The growth rate for November was negative 73.95 percent. The year-to-date growth rate was 6.67 percent. Gasoline and motor fuel revenues increased by 9.46 percent and they were $10.5 million more than the budgeted estimate of $73.0 million. Motor Vehicle Registration revenues increased by 4.43 percent and they were $2.5 million more than the November estimate. Tobacco tax revenues for the month were $1.5 million more than the budgeted estimate. Privilege tax revenues were $1.2 million more than the budgeted estimate of $23.8 million. Inheritance and Estate taxes were $0.6 million more than the November estimate. Business tax

revenues were $0.8 million more than the November estimate. Hall income taxes were $1.9 million more than the November estimate. All other tax revenues exceeded estimates by a net of $0.6 million. Year-to-date revenues for four months were $205.4 million more than the budgeted estimate. The general fund was over estimates by $176.2 million and the four other funds that share in state tax revenues exceeded estimates by $29.2 million. The budgeted revenue estimates for 2016-2017 are based on the State Funding Board’s consensus recommendation of November 23, 2015 and adopted by the second session of the 109th General Assembly in April 2016. Also incorporated in the estimates are any changes in revenue enacted during the 2016 session of the General Assembly. These estimates are available on the state’s website at http://www. tn.gov/finance/article/fa-budgetrev.

David Gerregano has been named by Gov. Bill Haslam as commissioner of the Department of Revenue. A 19-year veteran of the department, Gerregano, 46, is currently deputy commissioner, and he will replace Commissioner Richard Roberts, whose departure was announced earlier this month. The appointment was effective December 3. As deputy commissioner since 2011, Gerregano has helped oversee various departmental functions, including the audit division, enforcement and taxpayer services. Since starting with the department in 1997 as tax counsel, he has held multiple legal and legislative positions such as administrative hearing officer, general counsel and assistant commissioner. “David is a true public servant that has spent nearly two decades with the state and knows the Department of Revenue inside and out,” Haslam said. “He has been a part of major departmental initiatives since the start of this administration that have improved services and benefitted Tennessee taxpayers, and he will help continue the good work being done at the department.” Gerregano received his J.D. from Vanderbilt University School of Law in 1995 and clerked for the Chancery Court of Rutherford County until 1997 before joining the Department of Revenue as tax counsel. He ultimately became assistant commissioner in 2010 and then deputy commissioner in 2011. Since becoming deputy commissioner, Gerregano has been a leader in developing tax policy and making tax guidance readily available to the public through the publication of revenue rulings and other online resources. Gerregano has also been instrumental in updating the department’s systems in order to improve services to Tennesseans. “Each day I have the privilege of working with the dedicated professionals in the Department of Revenue,” Gerregano said. “I am incredibly honored that Governor Haslam has given me the opportunity to serve in this new role at the department.”

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TENNESSEE COUNTY NEWS / www.tncounties.org

November - December 2016

RECENT COURT CASES OF INTEREST Compiled By KRISTY BROWN CTAS Legal Consultant Governmental Tort Liability Act Nickels v. Metropolitan Government of Nashville, No. M201501983-COA-R3-CV (Tenn. Ct. App. September 28, 2016) -- Dentists sued Metro alleging Metro failed to remedy a dangerous condition created by faulty stormwater infrastructure near the dentists’ office. The plaintiffs alleged the faulty stormwater system was responsible for numerous floods in the dental office and adjacent parking lot. The trial court granted Metro’s motion to dismiss, finding

that Metro did not have a duty to improve its stormwater system. The Court of Appeals found that the evidence preponderated against many of the trial court’s findings of fact. The Court of Appeals also found that Metro had notice of a dangerous condition and breached its duty of care by failing to correct the problem with the stormwater system. The Court of Appeals remanded the case to the trial court and instructed the trial court to determine the percentage of fault between the parties. Planning and Zoning Save Rural Franklin v. Williamson County Government, No.

M2014-02568-COA-R3-CV (Tenn. Ct. App. August 26, 2016)--Two associations, Save Rural Franklin and Save Old Hillsboro Road, filed a petition for a writ of certiorari seeking judicial review of a subdivision approval issued by the Williamson County Regional Planning Commission. The associations alleged that the planning commission’s approval was arbitrary, capricious and illegal because it was in violation of the county’s comprehensive land use plan. The planning commission filed a motion to dismiss on the grounds that the plaintiff’s petition was filed beyond the statutory 60-day time period set forth in T.C.A. § 27-9-102.

Under that statute, petitions for writ of certiorari must be filed within 60 days of the entry of judgment. In this case, the preliminary plat was approved 9/12/13 and the final plat was approved 4/10/14. Plaintiffs filed their petition 6/6/14. The trial court found that the clock began to run upon approval of preliminary plat. According to the court, the approval process really happens at the preliminary plat level and that approval of the final plat is only ministerial. The trial court also found that the associations lacked standing as they failed to show they had a special interest in the decisions of the planning commission. Based on

this, the trial court granted the county’s motion to dismiss. The Court of Appeals affirmed, also finding that the 60 days begins to run once the preliminary plat is approved. Property Branham v. Metropolitan Government of Nashville, No. M201500455-COA-R3-CV (Tenn. Ct. App. August 30, 2016)—Homeowner sued Metro claiming that right-ofway work resulted in damage to homeowner’s property. Homeowner alleged he notified Metro of issues within the right-of-way and was assured it would be taken care of. Metro later removed soil, debris and

ATTORNEY GENERAL OPINIONS Compiled By LIBBY McCROSKEY

CTAS Legal Consultant Note: The full text of all opinions summarized here are available on the website of the Tennessee Attorney General (www.tn.gov/attorneygeneral/op/opinions.html). CLERKS OF COURT Upon entry of an order granting a petition for partial expunction, criminal court clerks must destroy public records that relate solely to offenses for which a petitioner was not convicted. When records relate to several charges, some resulting in convictions and others resulting in dismissals or acquittals, the records must be redacted. A criminal court may find that redaction is not feasible due to the intertwined nature of the charges, but the record must contain sufficient evidence to justify the finding. The type of records that

should be expunged is not limited by T.C.A. § 40-32-101(j) such that only public records in the relevant databases are expunged. Op. Tenn. Att’y Gen. 16-36 (8/31/16). COUNTY GOVERNMENT Public Chapter 749 amended T.C.A. § 8-19-101 to authorize counties to obtain a policy of insurance in lieu of statutory bonds for county officials, with policy limits of not less than $400,000 per occurrence. Such a policy may substitute for individual official bonds for any officials who have specific statutes requiring a bond to be posted. The $400,000 minimum policy limits apply to all officials, including the county trustee. Op. Tenn. Att’y Gen. 16-31 (8/22/16). Municipalities and metropolitan governments, through their exercise

of police powers, are not authorized to enact and enforce an ordinance that allows a police officer to issue a municipal citation that carries a civil penalty of fifty dollars or community service for the offense of possession of one-half ounce or less of marijuana. Such an ordinance conflicts with the provisions of the Drug Control Act and with the prosecutorial discretion and responsibilities of the district attorneys general in enforcing that act. Op. Tenn. Att’y Gen. 16-40 (11/16/16). EDUCATION Every LEA in which a charter school operates is required to catalog all under-utilized and vacant properties owned or operated by the LEA each year and submit the listing of such properties to the state department of education and to the comptroller under T.C.A. § 49-13-136(c) (1). Based on the plain language of

the statute, vacant and under-utilized properties must be made “available” to charter schools, but the statute does not require the LEA enter into a binding contract with a charter school for the use of available property in every instance. Op. Tenn. Att’y Gen. 16-37 (9/16/16). EMERGENCY SERVICES The automatic removal provisions of T.C.A. § 7-86-314(a) provide that a member of the board of directors of an emergency communications district (ECD) is automatically removed from the board for missing a specified number of board meetings. These provisions apply, by their plain language, to ex officio ECD board members as well as regular members. Op. Tenn. Att’y Gen. 16-39 (10/11/16). LAW ENFORCEMENT While only POST-certified or

state-commissioned law enforcement officers are authorized to review video evidence from an unmanned traffic camera and make a determination that a violation has occurred, the statute does not prohibit review of the video images from the camera by other persons for other purposes, such as quality assurance or sorting or pre-screening information that cannot result in the issuance of a citation. Op. Tenn. Att’y Gen. 16-30 (8/22/16). Depending on the particular facts in a given case, the “any other legitimate reason” exception in T.C.A. § 40-39-211(d)(1)(B) may apply to allow a sex offender to visit a government office to seek or receive services from that office, even if the office is located within 1,000 feet of a prohibited location. Op. Tenn. Att’y Gen. 16-35 (8/30/16).

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vegetation from the right-of-way, which, according to the homeowner, resulted in further damage to his property. At trial, Metro’s expert testified that the damage was caused by the rainfall in 2010 rather than any action or inaction on Metro’s part. The trial court found for Metro on this issue and the Court of Appeals affirmed. The Court of Appeals also upheld the trial court’s finding that the evidence did not support a claim for inverse condemnation. The Court of Appeals did, however, reverse the trial court’s finding that Metro owned the property in question. According to the Court, having a right-of-way interest in property is not the same as having an ownership interest in the property. Rather, it is “a right an owner has to some lawful use of the real property of another.” The Court also reversed the trial court’s finding that Metro’s actions in performing the right-of-way work was not intentional as required in an inverse condemnation claim. According to the Court, the trial court was incorrect in ruling that the actions had to be performed with the intent to take the property. Instead, the actions must only be purposeful or intentional actions that result in property damage. Taxation Caney Fork Electric Cooperative, Inc. v. State Board of Equalization, No. M2016-00316-COAR12-CV (Tenn. Ct. App. September 23, 2016)--Five rural electric cooperatives disputed the State Board of Equalization’s recalculation of their 2015 ad valorem taxes. The recalculation was in response to an Attorney General’s opinion issued in 2015 which stated that a tax exemption for newly-constructed plants and facilities was unconstitutional. The tax exemption was subsequently removed from the law in 2016. The Court held that the tax exemption found in T.C.A. § 65-25-122(a) was unconstitutional. According to the Court, in order for the tax exemption to be valid under the constitution, the organization being exempt must be a charitable organization and must use the property exclusively for charitable purposes. The Court found that rural electric cooperatives are not charitable organizations and thus, the exemption is unconstitutional.

Access Continued from Page 1 has never received state appropriated funding, to provide competitive grants to unserved or underserved areas not already being targeted by Connect American Fund grants, a federal grant program offered to providers to encourage the expansion of broadband coverage. Similar programs have been adopted in Maine and Minnesota. The state could also consider assisting communities that want to streamline local regulations. It is thought that by adopting permitting and zoning procedures that remove certain regulatory burdens which control access to rights of way or regulating land use, providers will invest in broadband infrastructure within these communities because it will be less burdensome. Another potential avenue the state could take would be authorizing the state’s electric cooperatives to partner with existing providers, including municipal providers, to provide broadband service in the cooperatives’ electric service areas. Electric cooperatives would build and maintain the network infrastructure inside their electric service areas and function as retail internet service providers under the model described in the report. For planning and coordination of how future plans and investments should be made, the report provided the idea of creating of a working group made up of state and local officials, representatives of broadband providers, and representatives of many nonprofit organizations working to increase internet connectivity. The addition of broadband projects within the annual infrastructure needs survey, a survey conducted by the nine development districts on behalf TACIR and reported back to state officials, was also suggested. Senators Norris and Yarbro requested TACIR to breakdown what some recommendations would cost the state, if possible, when the final report is submitted to the commission. Such a breakdown would assist the legislature and Administration in determining what certain levels of investment in different areas would mean in broadband deployment, infrastructure, and usage so that they can make smart decisions moving forward. Dr. Owen responded TACIR would try their best to include relevant figures to reference from similar programs which have been implemented throughout the state and nation. The final draft of the report is to be offered for approval at the next commission meeting on January 26-27, 2017. You can find the draft report and all data submitted by TACIR by visiting www.tn.gov/ tacir/article/tacir-2016-decemberdocket-book.

November - December 2016

TENNESSEE COUNTY NEWS / www.tncounties.org

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Congress Passes Behavioral Health, Justice-Related Legislative Package Congress has approved the “21st Century Cures Act,” a massive piece of legislation that among other things supports county efforts to decrease mental illness in jails, and sent it to the president for his signature. The overwhelming support of both the Senate and House comes as time runs out for the current “lame duck” session of Congress. While it is a win for county governments across the country, the $6.3 billion price tag to implement raises some concerns. More than half ($3.5 billion) would be offset by future cuts to the U.S. Department of Health & Human Services Prevention and Public Health Fund (PPHF), which helps more than 1,900 county public health departments protect residents’ health and safety and prevent the leading causes of death in our communities. Federal investments like the PPHF are responsible for approximately one-fourth of local health departments’ revenue, and since 2008, budget cuts have led to the loss of over 50,000 jobs at local health departments. Specific provisions that will

Jails Continued from Page 1 -mates typically serve one to three year terms with the exception of Davidson and Shelby counties where they can serve one to six year terms. Inmates within the jail backup population are convicted felons who are sentenced to be held in TDOC custody but are being housed in a local facility while awaiting a bed at a TDOC facility. TDOC testified that the inmates who are excluded from eligibility for reimbursement are those who are pretrial detainees, inmates held for federal or city ordinance, and convicted misdemeanants. Those inmates, according to TDOC, make up roughly 2/3 of county jail populations, of which approximately 50 percent are pretrial detainees. Tipton County Mayor Jeff Huffman discussed the issue of probation offenders being housed in county jails without local governments being reimbursed until after the inmate’s probation was revoked. Mayor Huffman stated he read the average length of stay for a probation offender in a local jail prior to revocation was 75 days. TDOC testified that while local governments were not reimbursed for probation violators until they were revoked, in instances of parole violators, the local government is reimbursed from that time of arrest instead of having to wait for sentencing. City of Louisville Mayor Tom Bickers asked how TDOC determined which inmates waiting for beds in prisons are taken first. TDOC responded that those cases are determined by the local jail administrators; however, because of a previous court ruling, four counties, Davidson, Hamilton, Knox, and Madison, are given priority when beds come available in TDOC facilities. Blount County had an issue earlier this year when a request to remove some of the state felon population to reduce overcrowding resulted in many prisoners being removed who were working as trustees in the jail. Their removal created a hardship as the jail had to find workers to fill these duties. Rep. Mike Carter brought forth the issue of mental health in local jail systems. He testified that many local jails, citing Bradley County in particular, have become a housing facility for inmates with mental health issues due to the large reduction in available beds in state mental health facilities. In response to Representative Carter’s comments, the Department of Mental Health provided information regarding their Criminal Justice Liaison (CJL) program. The CJLs work within local jails and court systems to facilitate diversion for people who are eligible as well as provide early identification, release plans into needed services, screening and assessments on individuals, and work with jails to provide training and collect data. There are nine agencies across the state which have these programs with 18 CJLs and 12 case managers covering 32 counties to date. The

help counties include: • Reducing the number of people with mental illness in jails: By reauthorizing the Mentally Ill Offender Treatment and Crime Reduction Act (MIOTCRA), the bill will support local efforts to decrease mental illness in jails through a broad range of activities, including jail diversion programs, mental health courts, in-jail treatments and transitional services and crisis intervention training. Through the Stepping Up Initiative, counties are already working to reduce the estimated 2 million individuals with serious mental illnesses who are admitted to 3,100 local jails each year. This has been a long-standing legislative priority of the National Association of Counties (NACo), a national partner of the Tennessee County Services Association. • Providing community-based behavioral health services: By reauthorizing the Community Mental Health Services (CMHS) and Substance Abuse Prevention and Treatment (SAPT) block grants, the bill will continue to allow counties, through 750 behavioral health au-

thorities and community providers, to deliver direct behavioral health services to those with mental health conditions and substance abuse disorders. While provisions to reform the mental health system are weaker than in previous stand-alone bills, the legislation still contains some county priorities for behavioral health reform, including strengthening the behavioral health workforce and enhancing the implementation of mental health parity. • Combating the opioid epidemic: By authorizing $1 billion over two years for state grants to supplement opioid abuse prevention and treatment activities, lawmakers have taken a significant step in efforts to end the opioid epidemic. While this is a positive first step, until Congress appropriates funds for these bills, local opioid programs will not receive additional federal support. The appropriation of significant funding for local opioid programs was one of the recommendations made to federal leaders in a report recently released by NACo’s Task Force on the Opioid Epidemic, jointly launched this year with the National League of Cities.

Department testified they have facilitated 1,200 long term release plans and since 2014 diverted 8,779 individuals from the local jail population for at least six months or more. The CJLs also work directly with individuals to help keep them out of jail once they are released by helping them get to appointments or reconnect with family. CJLs conduct screenings on individual inmates to determine what type of needs, substance abuse counseling, or mental health assistance is needed and then facilitate clinical assessments if needed on those individuals. The Department of Mental Health also testified that they are involved in some small reentry programs. Specifically mentioned were programs in Dyer and Hardin County. Following testimony by TDOC and the Department of Mental Health, local government representatives testified before the Commission. These representatives included Terry Ashe, director of the Sheriff’s Association; Jeff Box, Dyer County sheriff; David Connor, executive director of the Tennessee County Services Association (TCSA); and Jim Hart, jail management consultant with The University of Tennessee County Technical Assistance Service (CTAS). Director Ashe testified the female inmate population is rapidly rising and creating issues for both TDOC and local jails facilities. Director Connor and Hart expanded on that issue by testifying it was not only the growing female inmate population, it was the growing mental health population as well. Ten years ago, the rapid increase in female inmates and inmates with mental health issues were unforeseen and as a result jails were not designed to accommodate and provide adequate space for offenders who have special needs. Those inmates who are violent have to be segregated from the main population, as do the female inmates, and inmates dealing with a mental health crisis. The different needs of those groups coupled with the growing jail populations creates a continuous strain on county jails. According to the Jail Summary Report, a monthly report issued by TDOC, 43 local jails are at or above 100 percent capacity. Connor also stated that jail populations continue to rise and have risen steadily for years with the only temporary dips in population coming when a new state facility is built. Emphasizing the point, Connor stated, “I don’t think this is a problem we can build our way out of.” He spoke about the challenges for county officials to manage their jail populations when so many entities are involved in determining who ends up in a local jail. “Sheriffs have to take anyone delivered to their jail. They can’t say ‘there’s no room at the inn.’” Connor pointed out that the general sessions judge, circuit court judge, district attorney, public defender, the DOC, private probation services, bail bondsmen and the Board of Probation & Paroles all play a role in determining the local jail population. According to Connor, none of different entities is accountable for the bottom line cost of running the jail and that creates a disconnect. Sheriff Box highlighted the

reentry program Dyer County has established as well as praised reentry programs in Shelby, Rutherford, and Franklin Counties. He stated, “We’ve got to have alternative solutions to address different needs. I do believe reentry programs have the greatest chance of reducing recidivism in inmates.” Dyer County spends approximately $49 per inmate per day for housing and program costs. Sheriff Box believes the state could create a program per diem rate, with strict guidelines on those programs counties could provide to receive those specific per diem rates. Both Hart and Director Connor stressed the need for programs to bring down recidivism rates, but also a need for communication and coordination between many levels of government to facilitate a change in the overall correctional system. Sheriffs, mayors, judges, commissioners, attorneys, and communities need to work together to change the system and help integrate offenders back into society and help keep them productive members of that community. All representatives of local government testifying stressed that most counties do not have the resources to create a drug abuse program, a veterans’ program, mental health program, and reentry program. Connor suggested that the state and local governments partner and perhaps receive federal funding to move forward with regional programs, while Hart suggested the possibility of regional workhouses. All local government representatives on the panel agreed that counties need additional funding to help tackle the growing problems they are facing, but there are still several different ideas as to how that money should be allocated or used. TACIR is schedule to meet again at the end of January with a draft report potentially being presented at the Spring 2017 meeting. To watch the archived video of the meeting visit http://www.tn.gov/tacir/article/ tacir-2016-december-docket-book.

Register now for the Legislative Conference, held annually by the National Association of Counties in Washington, D.C. The conference brings together over 2,000 county officials to focus on federal policy issues that impact counties and our residents. The Conference is a can’tmiss opportunity to elevate the county voice at the national level. Attendees will participate in second-to-none educational sessions, interact with federal officials and also descend on Capitol Hill, delivering the message that federal policies matter to counties and counties matter to America! NEW ADMINISTRATION + NEW CONGRESS = NEW OPPORTUNITIES

Haslam Continued from Page 8 about electric cars. They’re driving on our roads for free. And they are and we will. But it’s the exact same thing. Technology has allowed some people to use something for free that other people are paying for. As we adjust to the new world we’ve got to make it fair. One area that needs to be addressed is the sales tax. We can’t change it. Congress has to pass it. But if you’re in Congress you have no interest in passing this, right? Ultimately, the Supreme Court is going to have to decide this. One of their justices, Justice (Anthony) Kennedy, has said they need to take this back up. They are basically asking for a case. They need a state like us, which is heavily dependent upon sales tax, to get a case to them. The country needs to decide one way or another. Our problem right now is that you owe that sales tax. You go online and buy something. If it’s a retailer that has a presence in state, we’re collecting that. But if they have no connection to Tennessee, you owe a sales tax that you’re not paying. We’ve created a situation where people owe a tax that is really hard to pay. That’s not fair or right. It’s just not so simple. In everything there are winners and losers. What we have to figure out is the way to make that fair. We have to find a way that your local hardware store is not having to compete with someone who has a 9 percent advantage over them. I can compete pretty well all day if you give me a 9 percent advantage. An Eye on Education There are going to be a lot of other things we are going to be talking about as well. You’re going

Number Of Uninsured In Tennessee Declines For Third Year: UT Study For the third year in a row, the estimated number of uninsured people in Tennessee dropped, according to a report released today by the University of Tennessee, Knoxville, Boyd Center for Business and Economic Research, which is housed in the Haslam College of Business. The percentage of uninsured people in Tennessee—5.5 percent—is the lowest in the past 20 years. This year’s survey shows that the uninsured rate for adults decreased from 8.2 percent in 2015 to 6.6 percent in 2016. This percentage change represents approximately 67,000 fewer uninsured adults over the year and approximately 218,500 fewer uninsured adults since 2013. The uninsured rate for children is 1.8 percent. The numbers are part of the “The Impact of TennCare: A Survey of Recipients, 2016,” a report authored by LeAnn Luna, a Boyd Center and accounting professor, and Angela Thacker, a Boyd Center research associate. The annual report looks at the health insurance status of Tennessee residents, and collects information about recipients’ use of medical facilities and gauges the extent of their satisfaction with services received. This year’s survey indicates that 92 percent of respondents reported satisfaction with the TennCare program. This marks the eighth year in a row that satisfaction levels have exceeded 90 percent.

Fires Continued from Page 1 on Dec. 12 that there were no ongoing active wildfires within Sevier County and its communities. Meanwhile, officials have declared Gatlinburg and the national park reopened. Residents were allowed to return to the area to begin the cleanup, likely to be years in the making, according to some. Major routes into the area are expected to be open, while some auxiliary roads will see some closures for utility repairs. While media attention focused on national park fires, the state was hit by a round of strong storms and tornadoes in East Tennessee as well, causing what Lauer and others call an “incident within an incident.” The result was to actually divert some emergency responders away from their work in Sevier County and send them back home to handle emergencies of their own. “The resources in Sevier County are the same ones available to West Tennessee for an earthquake to see a continued focus on k-12 and on higher education. It is critical that we keep the movement toward higher ed. I really want to thank all of you who have helped with Tennessee Promise. Last year we led the country in the number of high school students who applied for financial aid to go to college by filling out the FASFA. That’s huge leadership from you and the people in your school systems and others who have made that happen. I just met with a company that is considering Tennessee, and they said we are totally doing that because you are providing a lot more opportunities for people to go to school postsecondary. We’re giving people more opportunities than they’ve had before. We’ve got a lot more faith in your employee pipeline than we did before because of that. I think you’ll see more of the same. I think we are going to continue to invest in K-12 education, to continue to invest in higher education. I just firmly believe the best thing we can do as Tennesseans is to provide an outstanding education. For more Tennesseans that’s going to mean post-secondary opportunities. That’s why, whether it be our technical schools, community colleges or our four-year schools, we want to make them more accessible and more affordable. TennCare, Medicaid & the National Health Care Debate (The governor was asked about possible changes in health care at the federal and state levels.) I think you’ll see more changes in the health care area than maybe anywhere else (under the new Trump administration). What that will look like, I don’t know. I just saw that Paul Ryan just came out and said that changes to the Affordable Care Act will happen on a gradual basis. On some of the things like how Medicaid works, I think they will start giving a

“We are pleased to learn that the satisfaction rate continues to reflect the mission of our organization which is to improve lives through high-quality cost-effective care,” said Dr. Wendy Long, deputy commissioner of Health Care Finance and Administration and director of the Bureau of TennCare. “The results of this annual study show a general improvement in access to health care across the state but we know that more work can be done.” Other highlights from this year’s survey include: • A 5 percent decrease in the percentage of people who cited affordability as a reason for not obtaining health insurance–from 90 percent in 2015 to 85 percent in 2016. • A notable increase in uninsured respondents reporting that they do not need health insurance – from 19 percent in 2015 to 30 percent in 2016. • A decrease from 6 percent to 3 percent among TennCare heads of households who first sought treatment at a hospital rather than a doctor’s office or a clinic. The survey, which interviewed approximately 5,000 heads of households by telephone between May and July 2016, is a regular follow-up to previous surveys conducted since 1993. The Boyd Center conducted the survey under contract with the Tennessee Department of Finance & Administration.

or Chattanooga for wildfires or East Tennessee and tornadoes,” said Lauer. “It’s about coordinating the pieces and parts we have available and putting them everywhere that need to be.” Firefighters from Hardin County, for instance, were in Hamilton County with their equipment to assist for three days with wildfires there. Sometimes heavy, smoke lingered across much of the Chattanooga area and its downtown for several weeks as firefighters and U.S. Forestry fought blazes on Signal Mountain and on Lookout Mountain in Georgia. Mowbray Mountain has also experienced wildfires. Meanwhile, another four people were killed and 12 injured when five tornadoes impacted Tennessee November 29, two in Coffee and one each in Marion, McMinn and Polk counties. Also impacted were Bradley, Hamilton and Meigs counties, according to TEMA. Damage caused by the storms ranged from multiple homes destroyed to the destruction of a U.S. Post Office in the Ocoee community. Assessing the damage continues and Governor Haslam is seeking a federal disaster declaration for five

counties to assure Tennessee counties and communities have every possible resource at their disposal. The counties included in Haslam’s declaration request are Coffee, McMinn, Polk, Sequatchie and Sevier. “My goal is to help ensure these counties have what they need to rebuild and recover from these heartbreaking disasters,” said Governor Haslam. “The state and our local partners continue to work through the damage assessments, provide necessary services to help those in need, and get our neighbors and friends back on their feet,” he added. A presidential disaster declaration could help the five counties with costs for debris removal, emergency protective measures, and rebuilding and repairing roads, bridges, water control facilities, buildings, utilities and recreational facilities. A federal disaster declaration, if awarded, may also help qualifying individuals with direct assistance.

lot more power to states.

to say the fact that we have a general fund surplus means we don’t need to talk about a transportation plan.

Changes in the Legislature It will be a new day in the legislature, obviously. You’ve had Lt. Gov. Ramsey in place for a long time. I think the new Lt. Gov. McNally will continue most of his policies. But it obviously will be a new day. You’ll just have a new leader. No matter who you change, things will be different. With new leadership in having Glen Casada as majority leader and Ryan Williams becoming caucus chair in the House, that will be a different set of leaders. I think the biggest thing for us will be that we have the blessing and the challenge of having a surplus. The blessing is I’d way rather have a surplus than have a shortfall. The challenge will be that everybody will come to the table with a lot of different ideas for what to do with that. So, that’s the first challenge. The second as it relates to having to have a discussion about a transportation plan. I’m afraid a lot of people want

Susan Robertson, communications specialist for The University of Tennessee Institute for Public Service, contributed to this report.

A National Infrastructure Focus (Haslam was asked about P r e s i d e n t - E l e c t T r u m p ’s infrastructure proposal.) We’ll have to see what they propose. There’s been a lot of talk about infrastructure. What we haven’t heard is anybody talking about putting together a long-term, sustainable plan for how we fund infrastructure. If it’s something where we’re going to form public-private partnerships and let states put in toll roads or toll bridges, or we’ll make part of the investment and states can borrow to do the other –that’s just not how we do things in Tennessee. We’re on a pay-as-you-go basis, and I think that’s a good thing. So, while I’m hopeful that there will be some help from the federal government around infrastructure, I haven’t heard anything yet that sounded like a long-term, sustainable way to fund our roads.

Mark Your Calendars National Association of Counties Legislative Conference Feb. 25-March 1, 2017 Washington, D.C. TCSA - COAT County Government Day March 13-14, 2017 Downtown DoubleTree Hotel Metro Nashville Davidson County TCSA Legislative Conference May 23-25, 2017

Sevier County (Gatlinburg)

National Association of Counties Annual Conference July 21-24, 2017 Franklin County (Columbus), Ohio TCSA’s 64th Annual Fall Conference & Trade Show November 1-3, 2017 Shelby County (Memphis)

6

TENNESSEE COUNTY NEWS / www.tncounties.org

November - December 2016

Training Calendar County FInancial Issues This course will review information about various financial concerns for county officials. Topics to be covered include audits, debt management, budgeting, capital improvement plans, and education. January 17: Cleveland State Community College 3535 Adkisson Drive, Cleveland, TN January 18: Carnegie Hotel 1216 W. State of Franklin Road, Johnson City, TN January 19: UT Conference Center 600 Henley Street, 4th Floor, Knoxville, TN January 20: E-911 Building 700 County Services Drive, Cookeville, TN January 25: Shelby County Sheriff’s Training Bldg. 993 Dovercrest, Memphis, TN January 26: Jackson Energy Authority 320 Hwy. 45 Bypass, Jackson, TN January 27: DoubleTree Hotel 1850 Old Fort Parkway, Murfreesboro, TN

Negotiation Skills People often see negotiation as a matter of sticking to your ‘position’ while playing tug-o-war. But taking ‘positions’ involves an emotional/ego component inevitably leading to a dead end in negotiation. Instead, focus on the issue at hand, and learn strategies to communicate effectively and avoid falling into ‘positions.’ It takes the right mindset, essential communication skills and a toolbox of strategies to deftly handle any tricks the other party tries to use on you. This course will teach you how to stop playing...and stop being played. Instructor:

Dr. Rubin Cockrell February 10: Nashville Airport Hotel 220 Elm Hill Pike, Nashville, TN February 17: Jackson Energy Authority 320 Hwy. 45 Bypass, Jackson, TN

February 21: Carnegie Hotel 1216 W. State of Franklin Road, Johnson City, TN February 22: UT Conference Center 600 Henley Street, 4th Floor, Knoxville, TN

For additional information, contact The University of Tennessee County Technical Assistance Service (CTAS) by calling (615) 532-3555 or through the CTAS website at www.ctas.tennessee.edu/public/web/ctas.nsf/ Training?readform. (DATES & LOCATIONS SUBJECT TO CHANGE)

Need money for local projects?

From left are Stewart County Clerk Jimmy Fitzhugh, County Mayor Rick Joiner, Finance Director Heather Morgan and County Trustee Laura Crain.

Using the TCS Loan Program for its recent capital outlay notes and refunding bond issues totaling $13,380,000 to date...Just one way Stewart County is managing its growth.

November - December 2016

TENNESSEE COUNTY NEWS / www.tncounties.org

7

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LGIP places significant emphasis on safety and provides the tools needed to prevent or reduce claims. Our professional Loss Control representatives tailor comprehensive risk management programs to the needs of each member. • We understand county government insurance needs • We develop solutions for county governments with the best markets, price and terms • We deliver quality client service in a timely manner • We get claims paid quickly And we do it with INTEGRITY For more information cotact us. Toll free: 866/651-4124 Direct: 615/872-3554 www.lgip.us

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8

TENNESSEE COUNTY NEWS / www.tncounties.org

November - December 2016

BILL HASLAM

Governor Shares Legislative Insights With County Mayors

Gov. Bill Haslam, far right, speaks to a room of county mayors and officials. Images courtesy of State Photographic Services.

As the state reels from a number of major emergency incidents across the state, from wildfires and storms that have left nearly 20 dead to a school bus accident that claimed the lives of six children, Tennessee is also heading into a new calendar year and a legislative session. It all is weighing heavily on Gov. Bill Haslam’s mind these days and he recently had the opportunity to talk with a statewide gathering of county mayors about many of those issues. H i s plans include transportation funding reform and broadband access, two topics he says must receive “robust Haslam debate” before members of the 110th General Assembly adjourn, likely sometime in late April or early May. He repeated his key take-away a number of times for those attending the Legislative Preview hosted on December 6 by the Association of County Mayors, stressing repeatedly the need for county officials to be engaged as transportation funding reform takes center stage. “We need to have a robust discussion on this,” the governor said. “Encourage that open debate. Talk about why I-69 matters. Talk about why the 40 percent [of transportation funding that goes to counties] that will come to Smith County really matters. Just don’t let us kick this can down the road.” Traditionally, this Backpage Interview is just that…a piece that offers the interviewee an opportunity to respond to questions our staff generates. However, because of the timeliness of Governor Haslam’s address to county mayors, this article is based on that presentation and the questions those county mayors in the room had for him. His comments from that visit are included below. An Emergency State This has been a really tough two weeks in Tennessee. A few weeks ago we had the school bus wreck in Hamilton County. You go to an elementary school where there are six kids who had desks that are not coming back to school the next day. It’s a tough deal. In the middle of that we had 140 different fires going on in the state in the last four weeks. A lot of you have been impacted by that. Then we add to that the bad forest fire in Gatlinburg that claimed 14 lives, damaged or destroyed an estimated 2,460 structures. And then, on top of that, tornado damage in Coffee, McMinn, Polk, Sequatchie, Bradley and Meigs counties, killing two in Polk. They’ve obviously had a devastating impact. We’ve got people of all different political persuasions here. I happen to be a conservative Republican who believes in small government. But having said that, you can’t go through all the things that we’ve been through and be a government hater. You see what happens in times like this and what a difference leadership makes. I was there in Sevier County for two days and you all can imagine how hard and difficult the job is. You have needs coming in everywhere, people offering to help. It’s a chaotic scene. It helped that you had someone like Larry Waters, who’s been county mayor for 38 years. He’s the longest serving county mayor. It helped to have somebody there who has been county mayor for that long. He knew who to call and what to do. As you can imagine, we’ve had something like that and now we’re at the point of having people saying “what happened, why didn’t this happen?” To me, quite frankly, it’s amazing all the things that did happen. The people that came together, from first responders to a lot of you all who responded with equipment and personnel. It is just flat out phenomenal. I was there the second time with Speaker of the House Beth Harwell, and she saw all the state employees there, from forestry people fighting fires, to National Guard, to TDOT, insurance people who were taking insurance claims, unemployment folks. I can keep going on and on. She asked how I made all this happen. The answer is…I didn’t do a thing. That night people did their jobs. They saw the issue, they heard the call from whomever their brother or sister agency was saying that needed help, and they showed up. Thank you to all of you who responded there and everywhere else. To me it’s just flat out amazing how

people did respond and the impact of that. These are tough times. Really tough, in all of these events. I couldn’t be more proud of how the state and communities responded. The State’s Budget Turning to the state budget, we have the blessing of being in a good position. It’s well known right now we have a surplus. A lot of people have an opinion about how we ought to spend that. I’m sure you do too. The surplus didn’t just happen by accident. It happened by making conservative fiscal projections. A lot of states get in trouble by saying they’re going to grow their revenue more than they’ve ever done before and then they don’t. They get into some trouble. We haven’t done that. Last year Tennessee’s GDP was twice the national average. A lot of you have a part in that. You have pushed hard to grow the economy. So, we projected conservatively. We outgrew that. We cut $500 million in ongoing expenses out of the state’s budget. That’s easier said than done, as you all know. That’s helped create this surplus. And, finally, we’ve underspent the budget. Since we’ve been in office we’ve turned over $1 billion back in to be re-budgeted. That was money budgeted but not spent by our departments, which has really helped. That’s left us in a really good position. We’re trying to invest thoughtfully to take on the big needs of the state. We’re in the middle of that process right now with the budget. Budget Investments We have invested heavily in things that matter to you all like our institutions of higher education, whether it is a TCAT or a community college in your county. We’ve made the largest investment in the state’s history without a tax increase for public K-12 education, which obviously affects your budgets substantially. We hope to do something similar again this year because we just fervently believe in this idea that everybody should have that opportunity that comes with a great public education. We’re going to continue to do that. The reality is that most of our money will go to adjustments to the BEP formula, which will mean more money out there for counties. More money toward TennCare as we continue to face increased medical costs. For states, just like everybody else, when health care costs go up it impacts us as well. Then there are several other areas that I think need some more attention. The opioid addiction area that we’ve talked about that affects so many people in the health and substance abuse area. The amount that we pay people who are our providers who are taking care of people with intellectual disabilities. There are a lot of long-term needs the state has that we haven’t addressed since back when budgets were a little tighter. Then, we’re going to continue to invest in our own employees, making certain that the people who serve citizens are adequately compensated. Tennessee, for only the second time ever, has a triple, triple-A bond rating from all three credit rating agencies, which is a big deal in turns of where we are as a state. For the first time in the history of the state, last year we didn’t take on any new debt. And we continue to have the lowest tax rate as a percentage of personal income. Actually, this is true if you combine local governments and state governments and measure the percentage of our citizens’ incomes that we ask of them to run state and local governments. We’re the second lowest in the country. That’s not bad. That’s taking your tax rates and our tax rates together, we’re the second lowest in the country. The only state lower than us is South Dakota and they have a little more energy resources than we have. A Commitment to Education We’re continuing to make good headway on the education front. That’s truly an area where we’re partners with you all. In terms of what counties do and what states do, we made the biggest investment in the state’s history without a tax increase. We continue to see progress. We are still the fastest improving state in terms of education results. Notably, when the science results came out from the National Assessment of Educational Progress (NAEP) a month ago, Tennessee was tied

for second in fourth graders and tied for first in eighth graders in improvement. There is huge progress being made in the districts. Notably, for the first time ever, our girls scored the same or actually a little bit better than our boys in science tests. That’s really great for us. When we go out and recruit we want to show people that we’re training a lot of people to take your workforce forward. We’re also shrinking the gap between minority students and white students in performance, which is a really big deal. So many of you have been partners in major initiatives. Today, more Tennesseans have a job than have ever had a job in the history of the state. Our unemployment rates continue to be below the national average. In terms of new job growth, we’ve had outstanding outcomes. I think the pipeline is looking good for the future. Thank you all for your partnerships on those. Time is of the Essence I have an expire-by date on my job. You know, your milk is good until this date. Mine is good until January 2019. Two more years. There are a couple of ways to approach that. One, ‘we’re in pretty good shape here, in a really good position, jobs look good... I think I’ll just skip on out the door in two years and not take on anything real hard. We’ll go out shaking hands and giving high fives.’ I actually look at it really differently. I think these are incredible opportunities that we’ve been given. Part of being human, you want to make a difference. We happen to have jobs where we have a chance to make a huge difference. To say that ‘I’m at the end of my term, so we’re just going to coast out’ is just wrong. The last thing we intend to do is coast out the door. What we do intend to do is say “what are the big issues facing us that we can do something about?” We intend to take those on. Foremost among those is the transportation issue in Tennessee. It is a big one no matter where you live. Nashville is a city that’s on the rise like no other city in the country. But they’ve got to solve, you’ve got to solve, the transportation issue. That’s an issue for everybody. The tax revenue that’s generated here, nobody wants to see slow down. Some of you who live in more rural communities have a very different challenge. You’re saying, “how do we get people’s products to market?” Whether it be a manufacturer or farmer, we have to do that. We’ve been blessed in Tennessee. I’d love to tell you a lot of the job growth historically or in the last six years has been because we have this brilliant governor whose made all these great calls and I’ve talked everybody into coming. The truth is that one of our most desirable attributes as a state, when it comes to recruiting jobs, is that we got put in a really good place on the map. If you want to distribute stuff around the country, God put us in good place to do that from just in terms of reach to customers. But it’s hard to sell that if we can’t go sell that we have the roads and bridges to get your product where it needs to go. For too long we’ve coasted on that. We’re the beneficiaries of some folks who made some hard calls 30 years ago in terms of a new road plan for our state. If some people hadn’t stuck out their necks 30 years ago, we wouldn’t have seen the growth we have seen. When it comes to transportation I would love to just leave and say “let somebody else figure that out at some point in time.” But that’s just not how I think leadership works. We think we need to address it. The last time fuel tax was raised it moved to 21.4 cents. In bang for the buck equivalent today, that’s about 10 cents per gallon. We’re basically asking TDOT to provide us with the same quality roads, which are rated right now as third best in the country, for half as much money as they did when this was passed. Well, that doesn’t work. It doesn’t work for counties, and it doesn’t work for us. You, I know, have been put behind the eight ball as well. Of the money we bring in, 40 percent of that comes to you. Our value being cut in half means the same thing to you. You still have to pave those roads. You’ve still got to maintain the same

infrastructure you did before. You just have half of the value to do it with than you did before. I don’t know about you all, but I’m pretty confident that we can’t keep doing that. I bet some of you are taking money out of the county general fund to apply to transportation needs that didn’t do that before. That doesn’t work. You are taking from taxpayers from one hand and using it to help out on another. In Tennessee it particularly doesn’t make sense. Think about who pays our road tax. You really have three buckets. You’ve got folks like you and me who live in Tennessee and drive our roads. You’ve got folks from out of state who drive on our roads in their cars. And then you’ve got truck drivers. A lot of the fuel tax money comes from people that don’t live here. That’s not such a bad thing. Here’s our big challenge. You’ve been around politics, some of you a lot longer than I have. A big challenge is what I referred to earlier. We have a surplus. People are saying “hey, every morning when I go into Hardee’s they’re saying we have this big surplus, so why are you talking about a tax on me?” It’s really simple. These are two very different things. A Surplus in the General Fund We temporarily have a surplus in our (state) general fund. The economy has grown at twice the national average. We ’ r e n o t going to continue to do that. We’ve been able to cut $500 million in operating expenses. We can still keep cutting but the next $100 million is a lot harder than the last $100 million. You all have been there. A lot of the things we’ve relied on for strong growth in Tennessee – the automobile business where we’ve sold more than 17 million cars in the U.S. – I don’t think we’re going to keep up that same pace. We have ongoing pension liabilities, like many of you do, that have to be addressed. We have a pension plan that assumes a 7 percent return; it’s been getting a 1- or 2-percent return because of the low interest rates. None of this is new to you because it’s the same issue you face. All that means is that we have a surplus now. We’re going to use that in a smart way. But to assume that surplus will be there going forward in the same amounts is just not right. Last year we took $140 million out of our general fund and used it for transportation. We gave $40 million of that to you to use in your counties and kept $100 million for ourselves. That $100 million covered seven projects. That’s all it covered. I have some that are a lot more expensive than that. I’ve got one project in Shelby County that’s $300 million and one in Knox County that’s about $250 million. I understand the political situation. People say “how are you going to do this when you have a surplus?” Our jobs as leaders is

to explain that those are two very different things. One is a user fee for roads. That’s how we’ve always paid for roads. And one is a short-term general fund surplus. I need you to help me tell that story. You are the ones who feel the pain like we do. You’re getting half of the bang for the buck than you did 20 years ago. You all are the ones who will get 40 percent of the revenue that will do things that will help farmers get their product to market and help us continue to sell Tennessee. When we go out and recruit companies one of the angles we use is that we will help improve the infrastructure around your location. But those funds are dwindling in terms of the flexibility to do that.

way better than we do. You know that road or that bridge. Some people think this is all about getting a new road or bridge. Sometimes it’s just about getting a road they can drive on. We spend a lot of money in this state on fixing vehicles because our roads aren’t right. And we spend a lot of money sitting in traffic because we don’t have an alternative. It depends on where you are on which one of those you feel but it’s still costing us real money. If you hear nothing else of what I’ve said, please hear this. I want us to have a wide-ranging political discussion but this is way too important just to kick down the road. It impacts you all as much as it impacts us.

Local Transportation Projects (At this time a number of county mayors asked about local projects in their communities.) If we don’t do something different with a road plan, I-69 is a long way away. If we do, I can put a timetable on it for you. It’s just that simple. We’re not magicians. We have the third best roads in the country but pay the third least per mile. We can get a little more efficient with our dollars, but not a lot more. Nobody wants to make these hard calls but we’re not going to grow Northwest Tennessee without I-69, and we’re not going to get I-69 without a different road plan. It is that simple.

Accessing the Internet We h a v e a b o u t 8 3 0 , 0 0 0 Tennesseans who don’t have access to broadband. When people talk about choice for where to locate businesses, about 66 percent say access to broadband is critical. We might say most people have it, so why is it a big deal? Our challenge in economic development is in rural areas. A lot of you represent those counties. The places where our economic development challenges are the greatest is where we don’t have broadband, which more and more businesses are saying is critical. The issue is obviously whether this is one of those things where government should come in and subsidize or not. A lot of people, and I am one, say we ought to let businesses do that. Our problem is that it doesn’t make economic sense for businesses to expand into some of these areas. Are we going to say someday it will when the economy changes or are we going to address that? That’s a discussion I think we should have. We have to give people in our rural areas a chance to compete. We think we can come up with a way that does that where people aren’t just competing with government to provide that resource. That’s a discussion we intend to have. Is that another issue that would be nice to put off? Yes, but it’s a discussion we need to have.

A Transportation System in the Works We have a legislature that wants to be a part of this. We’re in the middle of those discussions about that. You all are like me, when you have county commissioners who want to dive into the issues of the budget, that’s good. We want them to be a part of that process. To get this done it’s going to take both branches of government. It’s hard. I would much rather skip out the door. It’s just not the right thing to do. The political reality is you have a governor willing to take this on. I’ve got two more years. Next year we’re back to an election year. Nobody wants to do anything in an election year. The next year you’ve got a brand new governor. He or she is not going to want to do that the first year. Then you’re back to an election year. So, if we don’t do it this year then we are four or five years away. I need all of you to tell your local story. What we need is to hear the “rubber meets the road” reality of where you are. The benefits to you all…not only do you get the projects that we need – I-69 or one of the state routes – but you now have money that you’re not going to have to put on the property tax. My approach to this is that I’m willing to talk about what the plan looks like. I know the dollar amount we need to make it work for the state, where I can tell people your project is going to happen in this time frame. How we get there and what that looks like, I’m really open to how the discussion looks. I really believe in the current 60-40 distribution formula. I’m not just saying that to help you sell it. You have needs that you know about,

Internet Sales Tax As you all know, more and more business is now being done not in your local store but on the internet. On this past Black Friday, the Friday after Thanksgiving, more sales happened online than happened in a store. The world has changed. Unfortunately, due to a Supreme Court decision 30 years ago, before the internet, if a retailer happens to be from out of state we can’t make them pay sales tax like we do your local hardware store. Your local hardware store, by the way, is not just collecting sales tax. They are also paying you property tax. They are also supporting your Little League baseball team and putting out food for the PTA and everything else. It’s crazy to me that we put them at a disadvantage to somebody from out of state. Some people say that’s a new tax and I don’t want to pay a new tax. Here’s what I’d compare it to. In our transportation plan everybody’s saying you need to do something Please See Backpage, Page 5

Bledsoe County Mayor Gregg Ridley, left, talks with Governor Haslam during a recent meeting.