May
05
Posted on 05-05-2008 at 05:20am
Filed Under (Work & Money, Government & Politics) by Newscoma on 05-05-2008

In today’s Tennessean, Bredesen is talking about cutting the budget citing that personnel costs are the single largest expense in the budget.

But he looks at other cost-cutting measure as well while trying to maintain .

He says that education will not be impacted although it will be paid for by existing revenues.

• School funding: While Bredesen has pledged to cover the annual growth in the state’s school funding formula, he hasn’t said whether he will still dedicate an additional $87 million in cigarette tax money to schools.

The legislature last year approved a 42-cent tax hike on every pack of cigarettes mostly to boost funding for schools. But the tax money isn’t legally bound to education programs, so it might be one area where Bredesen could find extra dollars.

• Pre-kindergarten: Bredesen has acknowledged that it’s unlikely he will be able to add another $25 million to the pre-K program this year. Senate Republicans — who have been cool to the pre-K program to begin with — are unlikely to want to go along with even a slight increase.

• Higher education: The state is mandated to pay for K-12 education in Tennessee. Not so for higher education. Given that leeway, the state’s public colleges and universities are likely to have to make do without any increased funding — and could even face a reduction in state money.

There’s more here.

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Comments

Southern Beale on 5 May, 2008 at 7:19 am #

“Bredesen Says Tennessee Must Be Run Like A Business”

This is the most tired, overused phrase to catch favor with politicians and I hate it. Government should be run like *government* — of the people, by the people, for the people. Running government like a “business” has lead us to the problems we see in Washington right now.

You know, it’s not like businesses don’t lose money and corporate CEOs aren’t corrupt.


Newscoma on 5 May, 2008 at 7:22 am #

It seems to be his theme song these days, So. Beale.
I agree.


Glen on 5 May, 2008 at 7:58 am #

Politicians have always said this sort of thing, but the reality is that government can not be run like a business, because government and business are different. That’s why colleges offer MPA, in addition to MBAs. Business is driven by profit, whereas government is not. Therefore, business will always be run more efficiently, with less bureaucracy. The sad thing is that in government, money allocated often must be spent, sometimes wasted, in order to secure those funds and more for the next year.


Josie on 5 May, 2008 at 8:24 am #

Maybe if he wasn’t spending $19m on a underground bunker for his wife, we would be able to “find” the money.


Southern Beale on 5 May, 2008 at 9:51 am #

the reality is that government can not be run like a business, because government and business are different.

Dang, Glen, that’s twice in one week we’ve agreed. Someone check the horoscope!

Maybe if he wasn’t spending $19m on a underground bunker for his wife, we would be able to “find” the money.

But Josie, that’s a “business” decision! The bunker is for holding large events, so they don’t keep having to rent facilities downtown. The “run government like a business” people should love the bunker!


Jim Voorhies on 5 May, 2008 at 10:30 am #

Therefore, business will always be run more efficiently, with less bureaucracy. The sad thing is that in government, money allocated often must be spent, sometimes wasted, in order to secure those funds and more for the next year.

That could only be said by someone involved sith small business. Large corporations are as completely bureaucratic as the government and no more efficient - and perhaps even less so - than governments. The bureaucracy in the company where I work is as adept at spending everything in the budget so we get at least that much next fiscal year as government ever could be.

If anything, government is more efficient than big business. And, sad to say, less political. The big difference is that government really only deals with ta handful of parties at the very most, while big bueiness has thousands - one for each manager or senior manager.


Trent on 5 May, 2008 at 10:53 am #

If anything, government is more efficient than big business.

We’re going to have to agree to disagree on this one. A business can have boucou bureaucracy and parties-a-plenty — only if there are profits. No business can do that for too long with the bottom line being in the red. (Exhibits: too long to enumerate here, but Ernon, Aldelphia, WorldCom and Kodak are some examples.)

Government, however, can keep running programs, even if they’re complete failures, by simply funding those programs year after year. (Exhibits: too long to enumerate here, but Agriculture subsidies, No Child Left Behind and the War on Drugs are some examples.)


Jim Voorhies on 5 May, 2008 at 11:02 am #

GM, Ford, Chrysler?


Jim Voorhies on 5 May, 2008 at 11:05 am #

The real trick with businesses is profitability, but there is a huge amount of room to suport inefficiency and still leave 5% or more profit.


Glen on 5 May, 2008 at 11:07 am #

“Large corporations are as completely bureaucratic as the government and no more efficient - and perhaps even less so - than governments.”

I have always believed that really big corporations are nothing more than welfare states. George Will wrote a column a while back where he stated that General Motors was the first welfare state to fall.


Trent on 5 May, 2008 at 11:24 am #

“The real trick with businesses is profitability, but there is a huge amount of room to suport inefficiency and still leave 5% or more profit.”

I think we’re agreeing here. Sure, there is lots of waste in business (private jets, 4-star hotels, executive golden parachutes). But the business must ultimately be successful and make a profit. Lots of those perks (read waste) go away when the profit margin gets slimmer and slimmer. (Gannett is a good example of that right now. Publishers in the at company used to get their own cars. That perk has ended.)

The logical conclusion of no more profit means no more business. (And therefore no more waste.)

In the public sector though, just because a program/department/agency is not successful does not necessarily mean it will go out of business… it will continue and continue and continue.


Jeffraham Prestonian on 5 May, 2008 at 11:31 am #

In the public sector though, just because a program/department/agency is not successful does not necessarily mean it will go out of business… it will continue and continue and continue.

It may, or may not. Thing is, no reform of any dysfunctional program can occur when those in charge believe firmly that government is always the problem, and never a solution.
.


Glen on 5 May, 2008 at 11:43 am #

“…government is always the problem, and never a solution.”

I think I may have said that a time or two.


Trent on 5 May, 2008 at 11:45 am #

“It may, or may not.”

I think we can agree, though, that the “may continues” outweigh the “may not continues.” Sure, the Freedman’s Bureau isn’t around anymore, and neither is the Civilian Conservation Corps. But mostly, government programs live on, even ones that aren’t useful or useful anymore, even ones that aren’t successful or successful anymore.

“…those in charge believe firmly that government is always the problem, and never a solution.”

We’ve haven’t had people in charge who believe that in decades — if we ever did.


Southern Beale on 5 May, 2008 at 11:57 am #

If anything, government is more efficient than big business.

Halliburton and KBR have sucked off the government teet while completely failing to provide the services they were contracted to do. Just Sunday I read about U.S. soldiers being electrocuted because of faulty wiring thanks to KBR — some were killed while taking showers! Meanwhile, they’ve avoided paying $500 million in taxes with offshore tax shelters.

I guess this is “government being run by a business”–Enron and WorldComm come to mind.

Government can’t be run by a business because it’s NOT a business nor should it BE a business.


Number9 on 5 May, 2008 at 2:01 pm #

Government and business are as alike as horseshoes and hand grenades.


democommie on 5 May, 2008 at 2:33 pm #

And our current pretendsident is as adept at running either of them–into the ground.


bridgett on 5 May, 2008 at 2:50 pm #

Excellent observation about big corporations being very much like welfare states — there’s some really interesting work being done on early welfare capitalism. The idea was that by providing the things that workers and lower-management wanted and creating a work culture where workers looked to the business as a cradle-to-grave concern, workers would work harder, skilled workers and scientists wouldn’t jump between employers in competitive industries, managers would have greater job security and the leisure that fuels innovation, profits would soar, the feds wouldn’t have to step in and regulate, and nobody would feel the need to unionize. For a while there, the most profitable corps in the US followed this model. Economic downturns (most notably in the 1970s, as the Cold War economic boom was running down) made this sort of corp model increasingly uncompetitive.

Honestly, though, I know a bunch of workers around Cleveland that miss the days of the GM company picnic and the school-groups touring Daddy and Mommy’s factory.


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