Tuesday August 16 News Summary

TUESDAY, AUGUST 16, 2011 Haslam Promises Openness On Amazon (TN Report)
Gov. Bill Haslam insisted Friday he has not changed his position on negotiations with Amazon.com on the collection of sales taxes and said whatever agreement might be struck with the retail giant the people of Tennessee would be informed about it. Meanwhile, former Commissioner of Revenue Charles Trost, on whose watch the original Amazon deal was made in Tennessee, declined to comment Friday on details of the state’s current arrangement with the company. Current commissioner Richard Roberts, whom Haslam said is leading the talks for his administration, declined to comment on any talks as well. Haslam says he wants Amazon to collect sales taxes on its transactions in Tennessee in the future, and his administration is involved in talks with Amazon on how to settle the issue of whether the company should have to collect the tax. http://www.tnreport.com/2011/08/haslam-promises-openness-on-amazon/

Haslam Not Ready to Endorse a GOP Candidate (W PLN-Radio Nashville)
Governor Bill Haslam says he’s nowhere close to endorsing a candidate for the Republican nomination in next year’s presidential race. Haslam says maybe half the candidates have reached out for his support, but he’s not about to choose one. In 2008 Haslam backed former Massachusetts Governor Mitt Romney, and members of Haslam’s family have already contributed to Romney’s campaign for the current race. But Haslam says he’ll take his time before he weighs in, and watch the field develop in places like this past weekend’s Iowa Straw Poll. HASLAM: “I’m not sure the straw vote is the final word on where Iowa goes or where the country goes…” REPORTER: “Are you going to back anyone in the…?” HASLAM: “Right now I don’t have any plans to – I could, down the road, but right now I’m not even anywhere close to doing that.” Officials close to Haslam including his economic development commissioner and a top advisor are backing two different candidates. http://wpln.org/?p=29599

Charter schools gaining ground in Tennessee (Tennessean/Hubbard)
The first effort to start a suburban Middle Tennessee charter school popped up this month in Rutherford County, where a state employee, a former science teacher and a minister want to launch a high school for atrisk students. Tennessee is home to 40 charter schools in Memphis, Nashville and Chattanooga. But a new state law that removed limits on the number of charter schools allowed statewide and on types of students they can serve is prompting interest from outside urban areas. Until this year, only students failing state exams, attending failing schools or living in low-income families could apply to charter schools, said Rich Haglund, the state’s director of charter schools. That made it tough to find enough students to qualify in the suburbs to make charter schools feasible. The new law gives preference to those students, but any can apply. http://www.tennessean.com/article/20110816/NEWS04/308150039/Charter-schools-gaining-groundTennessee?odyssey=mod|newswell|text|FRONTPAGE|s

SBA Offers Disaster Assistance to Residents Affected by Severe Storms (Biz Wire)
Residents and businesses affected by the severe storms, tornadoes and flooding that occurred on June 18 through 25, can apply for low-interest disaster loans from the U.S. Small Business Administration, SBA Administrator Karen G. Mills announced today. Mills made the loans available in response to a letter from Tennessee Gov. Bill Haslam on Aug. 4, requesting a disaster declaration by the SBA. The declaration covers Claiborne County and the neighboring counties of Campbell, Grainger, Hancock and Union in Tennessee; Bell and Whitley in Kentucky; and Lee County in Virginia. “The SBA is strongly committed to providing the people of Tennessee with the most effective and customer-focused response possible to assist homeowners, renters, and businesses of all sizes with federal disaster loans,” said Administrator Mills.

http://www.businesswire.com/news/home/20110815006612/en/SBA-Offers-Disaster-Assistance-TennesseeResidents-Affected

Newspaper reports Haslam loan reassignment (Associated Press)
A local newspaper is reporting Gov. Bill Haslam's stake in a $5.5 million loan guarantee was sold to a prominent Knoxville developer three days after it uncovered the original transaction. The Tennessean reports that Haslam personally guaranteed the loan to local developer Budd Cullom in 2009 while he was mayor of Knoxville. The arrangement was never plainly listed on Haslam's annual ethics disclosure forms and the governor said it was not required. When questioned about the arrangement in June, Haslam said he did nothing wrong and had tried to comply with the disclosure requirements. But records show three days after the story was published he reassigned the loan. Haslam spokesman Dave Smith said the governor could not comment on the loan transaction because his investments are managed by a blind trust. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37226339.story

TN finance chief: Keep $28M surplus as reserve (Associated Press/Schelzig)
Tennessee should hold a $28 million general fund surplus in reserve in case state tax collections drop, state Finance Commissioner Mark Emkes said Monday. Emkes is Gov. Bill Haslam's chief Cabinet officer and said in an interview with The Associated Press that showing such restraint could help bolster the state's case for keeping its high credit ratings. "Let's be prudent," Emkes said. "Just because we have a little extra change in our pocket, let's not go run out and spend it." The volatility of the national economy could seriously affect Tennessee revenues, Emkes said. "W e all know what's happened in the month of August with regard to the debt ceiling, the stock market and the uncertainty," he said. "I am very concerned about the sales tax revenue figures for August and the next couple of months based upon consumer confidence and the uncertainties that are out there." The wait-and-see approach isn't sitting well with everyone in the Legislature. Democratic House Minority Leader Craig Fitzhugh of Ripley said lawmakers have already agreed to replenish the state's cash reserves in this year's budget, and that other options like tax refunds should be examined. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37226573.story

Ed. Department looks to replace testing officials (Associated Press)
The Tennessee Department of Education is launching a nationwide search to replace two testing officials. Department spokeswoman Kelli Gauthier said Monday that the executive service appointments of Dan Long and Stan Curtis ended last week. She said an interim director has been appointed "to ensure the ongoing success of the department's work in data and assessments." Long headed the Assessment, Evaluation and Research Division, which administers the Tennessee Comprehensive Assessment Program, or TCAP, achievement tests, and Curtis served as assistant director. The departures come less than a month after the state asked the federal government for a waiver from the No Child Left Behind law, saying its revamped education standards should be appropriate for measuring schools. Recent results show only about half of Tennessee's schools have met the federal law's standards. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37228025.story

Two of state's top testing officials resign from Education Department (TN/Sisk)
Two of Tennessee’s top testing officials have resigned in a shakeup that follows the state’s decision to apply for a waiver from No Child Left Behind standards. Dan Long, director of the Tennessee Department of Education’s testing division, and Stan Curtis, the division’s assistant director, left the department late last week, education officials confirmed Monday. Zachary Rossley has been named interim director until permanent replacements are found. The move comes two weeks after Education Commissioner Kevin Huffman and Gov. Bill Haslam announced Tennessee would seek a waiver from the requirements of the federal No Child Left Behind law. Only about half the state’s schools cleared all of the bars set by No Child Left Behind last year. “W e are grateful for Dan and Stan’s service to the department and wish them the best of luck moving forward,” Huffman said in a statement. He declined to comment further on the decision. Long and Curtis held appointed positions in the Department of Education. Both were holdovers from the department under the leadership of Gov. Phil Bredesen and Commissioner Tim Webb. http://www.tennessean.com/article/20110816/NEWS0201/308150051/Two-state-s-top-testing-officials-resignfrom-Education-Department-?odyssey=mod|newswell|text|FRONTPAGE|s 2

UT Extension to cut 44 grant-funded jobs in Tenn. (Associated Press)
The University of Tennessee Extension says 44 grant-funded jobs providing nutrition education for Tennesseans using food stamps will be eliminated due to a $2.9 million cut to funding. The affected workers in the Tennessee Nutrition and Consumer Education Program were notified Monday that their positions would be eliminated on Sept. 30, the extension said in a news release. This the second round of jobs cuts this year at the extension service, which announced in January the loss of 60 positions due to state budget reductions. The extension gets funding from the U.S. Department of Agriculture for the nutrition education program through the Tennessee Department of Human Services. The program teaches families how to prepare healthy meals and use food stamps and other resources effectively. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37228771.story

UT Extension to cut 44 grant-funded jobs (Knoxville News-Sentinel/Boehnke)
University of Tennessee officials on Monday informed 44 employees running nutrition education programs across the state that their jobs would be eliminated on Sept. 30 because federal grant funding was cut. Another 12 vacant positions were also eliminated, bringing the total number of employee cuts this year in the University of Tennessee Extension to 116 positions after state budget cuts led to the elimination of 60 jobs in January. The Tennessee Nutrition and Consumer Education Program, a service for families who receive food stamps to teach them good eating habits, had its funding reduced from $3.9 million to $1 million. The cut was to federal funding that was distributed by the Tennessee Department of Human Services, which has been negotiating with UT over how much money it will get after the reductions. Administration found out about 10 days ago that its funding would be cut $2.9 million. The statewide program is now going from 98 agents and employees to 25. http://www.knoxnews.com/news/2011/aug/15/ut-extension-to-cut-44-grant-funded-jobs/

Clarksville intersection upgrades in works (Leaf Chronicle)
The Tennessee Department of Transportation has approved plans and funding for three of four requested intersection improvement projects in Clarksville, Street Department officials announced at a committee meeting Monday. Chris Cowan, a Street Department engineer, told the Streets and Transportation Committee that bids will go out on the projects at the end of the month. The intersections on tap for work are Madison Street and Highway 76, Madison Street and Richview Road and Highway 48/13 and Riverside Drive. The city also applied for work at Dunbar Cave Road and Wilma Rudolph Boulevard but needs to purchase additional right-of-way first, Cowan said. Work on the other intersections will likely begin next spring, Director David Shepard said. Monday's meeting was the first for the new Streets and Transportation Committee, which was two separate bodies for years until Mayor Kim McMillan announced last month she would combine them. http://www.theleafchronicle.com/article/20110816/NEWS01/108160317/Clarksville-intersection-upgradesworks

Court of Appeals sheds light on 'contract' definition (Nashville Post/Nannie)
When is a contract really a contract? Really. It depends, of course. In its July 13 session, Judge Andy D. Bennett, wrote the opinion for the Tennessee Court of Appeals that reversed a summary judgment decision rendered in Davidson County Chancery Court, thereby re-emphasizing the need for local companies to pay more attention to their business agreements, especially fee contracts that contain unclear and ambiguous language. At issue is a 2005 agreement between CheckVelocity, a locally based payment processing company, and New York-based and internationally known Weight Watchers Inc. The agreement governed the check collection services CheckVelocity provided Weight Watchers and the subsequent referral fees CheckVelocity paid BSG LLC, a financial services and business referral company that had introduced the pair. But just when BSG's contract ended became an issue that took the companies to court. http://nashvillepost.com/news/2011/8/15/court_of_appeals_sheds_light_on_contract_definition

Ruling limits Red Bank red-light cameras (Chattanooga Times Free-Press/Sher)
Tennessee Attorney General Bob Cooper says a new law restricting use of traffic-enforcement cameras appears at first blush to outlaw immediately the use of the devices to cite motorists failing to come to a 3

complete stop when turning right at red lights. The new law and Cooper's legal opinion already have shut down at least one Tennessee city's use of traffic cameras in combating abuse of right-on-red situations. "We want to do whatever the attorney general says -- whatever way was fine with us," said Red Bank City Manager Chris Dorsey, who had asked Rep. Richard Floyd, R-Chattanooga, to seek the legal opinion. Dorsey said Monday he plans to discuss the matter later today when the Red Bank City Commission meets. The city temporarily suspended issuing citations to drivers failing to stop on right turns at red lights beginning July 1 when the new law took effect. He said that was because of uncertainty about its impact. Red Bank's new budget already takes into account the resulting loss of revenue -- an estimated $185,000. That comes out to roughly half of what had originally been projected to be $375,000 in traffic camera revenues, Dorsey said. http://www.timesfreepress.com/news/2011/aug/16/b1-ruling-limits-red-bank-red-light-cameras/?local

Rep. Haynes: (NS/Humphrey)

Those

offensive

Facebook

postings

were

NOT

mine

State Rep. Ryan Haynes' Facebook identify was stolen last week and the impostor posted fake statements using "a lot of colorful language" under the lawmaker's name for a while, the Knoxville Republican said Monday. Haynes said he had visited a library on W ednesday and logged into Facebook while there. He speculated that someone may have seen him type in a password and used it to take over his page on the social media network later. His listing of personal information was changed to say that he was homosexual and that he worked for the Hogwarts School of W itchcraft, a reference to the school attended by the fictional Harry Potter. His picture on the site was replaced by a photo of a panda. The impostor also sent messages that were offensive to many, the legislator said, and when the missive brought a response, replied in a flippant and derogatory manner. "I got about 150 phone calls in 30 minutes," he said. "People thought I was committing political suicide and wanted to know what was goinghttp://www.knoxnews.com/news/2011/aug/15/repon." haynes-those-offensive-facebook-postings-not/

Memphis City Council has full slate for meeting (Commercial Appeal/Maki)
The Memphis City Council is slated to tackle issues today including redevelopment of The Pyramid and when it is allowed to raise taxes. The 13-member council will also vote on the first of three readings of an ordinance that changes the city's pension and benefit system. During the Executive Session committee meeting, council members will be asked to vote on a Pyramid redevelopment proposal. Division of Housing and Community Development director Robert Lipscomb will ask the council to approve allowing the Center City Revenue Finance Corp. to float bonds to fund the project, which is scheduled to be repaid through increases in state sales tax revenue from new retail businesses in the Tourist Development Zone. The project includes the city purchasing Shelby County's share of the Memphis Cook Convention Center -- which would then be renovated, but not expanded -- for about $60million. The city also expects to purchase the old Lone Star Industries property, which features neon "Memphis" signs, for $12 million to $15 million. The project includes $19.5 million to retrofit the Pyramid and $5.5 million to stabilize the soil on the west side of the building closest to the Wolf River Harbor. http://www.commercialappeal.com/news/2011/aug/16/council-has-full-slate-for-meeting/

Memphis City Council Considers Pricey Portraits Again (WPTY-TV Memphis)
Would you spend $1,000 for a picture of yourself to hang on your wall? Well, if you're a Memphis taxpayer, that's what you're spending for a picture of someone you may not even know. Each of the 13 City Council members gets that much to spend on his or her official portrait. Perry Melloh said, "I couldn't imagine any portrait costing $1,000." Melloh runs 494 Studio in Memphis. Melloh says his average portrait runs $250, and that includes the frame. "For something that is going to be hanging in the city council chambers forever, no listen to me, that's a cheap price," Council Chairman Myron Lowery said. Tuesday, August 16, 2011, the Memphis City Council will consider a resolution that would limit portraits to full-time city council members. Councilman Bill Boyd sponsored the bill, saying he doesn't think someone who will be in office for just a few months should qualify for a portrait. Berlin Boyd was recently elected as interim council member for district seven, Barbara Swearengen W are's former seat. http://www.abc24.com/news/local/story/Memphis-City-Council-Considers-PriceyPortraits/74ey_llvMEuLxhztDJrKfA.cspx?rss=59

Redistricting panel wants to keep 21 commissioners (Daily News Journal)
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The Rutherford County Commission Redistricting Committee agreed in a 9-2 vote Monday to keep 21 commission districts, pending a legal opinion backing the decision. "I can tell you right off the bat we probably want to keep it at 21 districts," said Commissioner Steve Sandlin, who was voted chairman of the committee during the body's first meeting at the Rutherford County Courthouse. Committee members Allen McAdoo, who is also a county commissioner, and Jimmy Evans, who is a Republican member of the Rutherford County Election Commission, opposed making a decision about the size of the commission during the first meeting when a county attorney wasn't present. The size of the commission can range between nine and 25. "Let's set that number at the next meeting," McAdoo said, adding that committee members should do homework on the issue "before we make a decision." http://www.dnj.com/article/20110816/NEW S01/108160318/Redistricting-panel-wants-keep-21-commissioners? odyssey=tab|topnews|text|FRONTPAGE

Roe warns postal workers change is on the way (Times-News)
U.S. Rep. Phil Roe warned about 50 union letter carriers Monday night that change is coming in the U.S. Postal Service whether they like it or not. “Things are going to change because we don’t have enough money to pay the bills,” Roe, R-Tenn., told a National Association of Letter Carriers (NALC) group after eating dinner with them at the Renaissance Center. A draft document put together by USPS management says mail volume declined 20 percent, and the Postal Service lost more than $20 billion in the four-year period through the 2010 fiscal year. USPS is projecting another $9 billion loss this year. USPS management claims it is facing “the equivalent of Chapter 11 bankruptcy” and needs to reorganize . The Postal Service is urging Congress to allow five-day delivery and wants to eliminate 220,000 positions by 2015. Roe also said reorganizing solutions need to come from within USPS. He told the letter carriers that Kingsport-based Eastman Chemical Co., for instance, decided on a 5 percent pay cut for employees when times were lean. http://www.timesnews.net/article/9034825/roe-warns-postal-workers-change-is-on-the-way

Tea Party activists take aim at Black (Daily News Journal)
Local Tea Party members contend U.S. Rep. Diane Black, R-Gallatin, is not one of them after her vote to raise the debt ceiling and will stage a protest today at the congressman's Murfreesboro office. "Many people in the 6th District were counting on her to be a leader in this (debt issue), and they are very disappointed people," event organizer Micah Forrest said. Forrest and others will hold their rally starting at 4 p.m. by Black's office at 305 W. Main St. They're upset about the country's debt and worry it will double from the $14.3 trillion level it reached before the recent vote to raise the debt ceiling. "She represented herself as a Tea Party member," Forrest said. "She listed on her official website she was a member of the Tea Party Caucus. She represented to the public that she would be part of the solution to this debt that keeps growing. She also stated that she would stand up to the party leaders in her own party and not just be a rubber stamp to the GOP leadership." Local Tea Party activists will not be the only ones to have protested at Black's offices in Murfreesboro, Gallatin and Cookeville. The liberal MoveOn.org advocacy group has staged rallies asking that taxes be raised as part of debt-ceiling agreement, said Stephanie Genco, the press secretary for Black. http://www.dnj.com/article/20110816/NEW S01/108160311/Tea-Party-activists-take-aim-Black-?odyssey=tab| topnews|text|FRONTPAGE

Medicaid Pays Less Than Medicare for Many Prescriptions, Report Finds (NYT)
Medicaid gets much deeper discounts on many prescription drugs than Medicare, in part because Medicaid discounts are set by law whereas Medicare prices are negotiated by private insurers and drug companies, federal investigators said Monday in a new report. The report, from the inspector general of the Department of Health and Human Services, could be used by lawmakers trying to cut drug prices as Congress looks for ways to rein in the cost of Medicare under the new deficit-reduction law. Under existing law, the Congressional Budget Office estimates that the cost of Medicare’s outpatient drug benefit will increase an average of nearly 10 percent a year, to $175 billion in 2021, from $68 billion this year. Medicaid and Medicare receive discounts in the form of rebates, which are paid by drug manufacturers when their products are dispensed to people enrolled in the programs. The inspector general, Daniel R. Levinson, found that rebates reduced spending on 100 widely used brand name drugs by 19 percent in Medicare and by 45 percent in Medicaid. After taking account of the rebates, Mr. Levinson said, Medicaid paid significantly less than Medicare for the same drugs. http://www.nytimes.com/2011/08/16/us/16drug.html?ref=todayspaper

States grow anxious about possible recession (Stateline)
The possibility of a double-dip recession is worrying state officials who thought they had put the worst 5

downturn since World War II behind them. State officials say the bleak economic news of the past few weeks has triggered new alarm just as jobs are slowly increasing and tax collections are improving. Some economists have said that last week’s stock market swings, reports of slow growth and the downgrading of U.S. debt by Standard & Poor’s could be early indicators of the first dual recession since the early 1980s. “I look at the gyrations in the stock market and wonder if it’s not a sign of an economy substantially out of balance,” says New Hampshire House Speaker William L. O’Brien, a Republican. Lawrence Yun, chief economist at the National Association of Realtors, told a meeting of the National Conference of State Legislatures last week that he has increased the probability of another recession from 10 percent three months ago to 30 percent today. A recent USA Today survey of 39 economists reached the same conclusion. A reason for the pessimistic forecast, Yun said, is “all the weapons to fight the economic downturn have already been used.” http://www.stateline.org/live/details/story?contentId=594199

TVA customers to pay less in September (Associated Press)
Tennessee Valley Authority residential customers will pay a lower fuel cost on September bills, with the decrease ranging from 50 cents to $1.50. The Knoxville-based utility said in a statement Monday that the lower monthly fuel cost is largely beause of reduced demand. TVA’s fuel cost raised average monthly bills in August for residential customers by up to $1, mainly because of higher expenses for coal and purchased power during June. The utility in July added up to $6 to bills in response to the severe weather in late April. TVA supplies power to about 9 million people in Tennessee, Kentucky, Alabama, Mississippi, Georgia, North Carolina and Virginia. http://www.tennessean.com/article/20110816/NEWS21/308160055/TVA-customers-pay-less-September? odyssey=tab|topnews|text|FRONTPAGE

TVA cuts fuel surcharge next month but plans rate hike in October (TFP/Flessner)
Chattanoogans who sweated paying their electricity bills through the summer heat wave will get a reprieve next month when TVA reverses three months of increases and cuts the fuel portion of its bills. But that rate relief could be short-lived. TVA directors are considering a rate increase that could boost electricity charges again in fiscal 2012. After losing money over the past year because of the costs of tornado damage and plant shutdowns, TVA's board is scheduled to vote Thursday on a new budget that could boost TVA rates again in October. "My power bills are way up from last year, but my income isn't," said Curtis Barnes, an East Chattanooga resident who paid his EPB bill on Monday. "I'm struggling like a big dog now and I sure can't afford to pay much more." EPB estimated the typical residential electricity user will save $1.14 on his or her September power bill due to a 1 percent cut in the utility's fuel cost adjustment announced Monday by TVA. http://www.timesfreepress.com/news/2011/aug/16/816-a1-tva-cuts-fuel-surcharge-next-month-but/?local

Building reactor at TVA Bellefonte plant on agenda (Associated Press)
The Tennessee Valley Authority has a message for opponents of its Bellefonte Nuclear Plant: No costumes. A month after zombie-costumed protesters paraded in Chattanooga to oppose TVA's plans to revive what they described as a "corpse of a power plant" in northeast Alabama, the nation's largest public utility has a new ban on costumes at its board meeting Thursday. A TVA spokesman said the no-costume rule is intended to avoid any "disruption" at the meeting in Knoxville. An opponent of TVA's plan to restart the nuclear plant construction that was stopped in the 1980s said she and others want to see the project at least delayed. Sandy Kurtz and other members of the Bellefonte Efficiency and Sustainability Team group say promoting conservation and renewable energy sources are better alternatives. http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=tennessean&sParam=37231249.story

NRC sets meeting on W atts Bar nuclear plant (Knoxville News-Sentinel)
The U.S. Nuclear Regulatory Commission will hold a public meeting at 1:30 p.m. Aug. 24, to discuss construction at the Watts Bar nuclear plant’s second unit. The meeting will be at the Magnuson Hotel, 1421 Murrays Chapel Road in Sweetwater, Tenn. TVA will make a presentation on construction schedules and NRC will discuss licensing activities, construction inspection and other issues. The plant is located near Spring City, Tenn., about 60 miles southwest of Knoxville. The NRC extended the construction permit for Watts Bar Unit 2 in 2008. TVA had suspended construction of the unit in 1985, but decided in August 2007 to complete the project. TVA recently announced its intention to complete construction in 2013. TVA has been operating Unit 1 at the site since 1996. http://www.knoxnews.com/news/2011/aug/15/nrc-sets-meeting-watts-bar-nuclear-plant/ 6

CBL vice president challenges Amazon.com deal (Times Free-Press/Sher)
Owners of Chattanooga's biggest mall say it is unfair for Internet retailing giant Amazon.com to continue enjoying a competitive edge over traditional brick-and-mortar retailers. Michael Lebovitz, CBL and Associates' executive vice president of development and administration, said Monday that Amazon, which is building two distribution centers in Southeast Tennessee, competes on an "uneven playing field" since the company is not required to collect state and local sales taxes. That amounts to a 9.25 percent leg up over retailers that lease CBL-owned space at Hamilton Place and other shopping centers in Hamilton County, Lebovitz argued. The advantage includes not collecting the 7 percent state sales tax and another 2.25 percent in local option taxes. "We think Amazon is great for Chattanooga, first and foremost," Lebovitz said. "At the same time, we think that if you can buy a shirt at Hamilton Place and pay $100 for that shirt, you shouldn't be able to buy the same shirt for $90 or $92, whatever the exact number is, from Amazon. http://www.timesfreepress.com/news/2011/aug/16/816-a1-cbl-vice-president-challenges-amazon-deal/?local

Taxing questions; should Amazon jobs deal be a 'do-over'? (WRCB-TV Chatt.)
In a matter of weeks, Amazon.com will open two 'fulfillment' centers in Hamilton and Bradley Counties adding hundreds of jobs. It's renewing the fight over the T-words: Tennessee sales taxes. Why Amazon doesn't have to collect them, why competitors claim it's not fair, and the push by some lawmakers to change that. Governor Bill Haslam says he wants a deal but doesn't want to back out of the deal already cut either. Brenda Howell concedes that some folks come into Lee's Used Books & Media just for the mascot, Leo the Parrot. But his isn't the only bird's eye view of what's available. "I do sell on Amazon and I do very well by it," Howell says. "I don't know how we would have fared the past year without that business." But Amazon.com is her competitor too. "If they can get the same thing for the same price there and not have to pay sales taxes, it's really gonna hurt," Howell says. That's why she's straddling the fence, over calls from some Tennessee lawmakers, to 'do over' the deal that prompted Amazon to build two giant 'fulfillment centers' or distribution hubs in Hamilton and Bradley counties. http://www.wrcbtv.com/story/15271712/taxing-questions-should-amazon-jobs-deal-be-a-do-over

Tax incentives Sentinel/Willett)

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to

Loudon

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(Knox.

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Kimberly-Clark, one of the two large Loudon County companies contesting their property tax assessments, has been the beneficiary of tax breaks in the past. The county has a history of offering tax breaks to recruit and retain employers, according to Pat Phillips, president of the Loudon County Economic Development Agency. "Retaining existing jobs is as important as creating new jobs," Phillips said. In 2008, Kimberly-Clark made a deal with Loudon County for a $422,234 tax break for five years. The incentive was needed to help fund an expansion at the plant that would keep jobs in the county. The company was the beneficiary of a similar tax break in 2000. Kimberly-Clark believes in paying its fair share, according to Bob Brand, a spokesman for the company. The current appeal is a result of a companywide effort to reduce costs, he said. In 2010, DuPont Tate & Lyle, a joint venture between DuPont and Tate & Lyle to produce glycol products from corn, requested a 50 percent tax break over five years. http://www.knoxnews.com/news/2011/aug/15/tax-incentives-a-mixed-blessing-to-loudon-county/

Largest Loudon taxpayers contesting property assessments (N-S/Willett)
Kimberly Clark and DuPont Tate & Lyle, two of the biggest corporate taxpayers in Loudon County, are contesting their property tax assessments with the State Equalization Board. The move means that municipalities, including Loudon County and the city of Loudon, could face a big hit in revenue if the board sides with the two companies, which are asking to have the appraised value of their property cut by more than half. DuPont Tate & Lyle is seeking a reduction from about $72 million of appraised value to about $30 million. Kimberly-Clark is seeking a reduction from about $50 million to about $20 million. According to Jane Smith, Loudon County's deputy property assessor, the county won't know how much it stands to lose until the board of equalization makes its decision on the appeal. Some estimates provided at county commission budget meetings indicate the county could lose as much as $800,000 in annual tax revenue. http://www.knoxnews.com/news/2011/aug/15/largest-loudon-taxpayers-contesting-property/

ACI Glass closing, adding to layoffs announced by Memphis City Schools (MBJ)
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Job cuts at Memphis City Schools and Vitro America LLC division ACI Glass Products LLC will shrink the workforce in Shelby County by 354 jobs, according to separate state notices. ACI Glass plans to eliminate 46 jobs through the closure of its Memphis office at 965 Ridge Lake Blvd., Suite 300. The jobs will be phased out between Sept. 19 and Oct. 1, ACI informed the Tennessee Department of Labor and Workforce Development. Earlier this year, the U.S. subsidiary of Mexico-based Vitro SAB filed for bankruptcy and the subsidiary’s purchase by a private equity firm was approved by a bankruptcy judge June 17. The parent company has had its own financial hurdles and in April filed the Mexican equivalent of a Chapter 11 reorganization which was approved. Memphis City Schools has been going through a very pubic financial struggle itself that has resulted in the school district announcing layoffs. The latest included 65 employees who were laid off between May 24 and July 29. http://www.bizjournals.com/memphis/news/2011/08/15/aci-glass-closing-adding-to-layoffs.html

ACI Glass to cut 46 employees (Commercial Appeal)
ACI Glass Products will lay off 46 employees in Shelby County beginning in September, according to a state notice. A report released Monday by the Tennessee Department of Labor and W orkforce Development's Dislocated W orker Unit said layoffs will begin in mid-September and end on Oct. 1. ACI Glass Products is part of Vitro America, which has its headquarters in Memphis, where it employs about 80 people in the Ridgeway Business Center at Poplar and Interstate 240. Vitro also has a manufacturing facility in Grenada, Miss., where it employs 129. It serves more than 40,000 customers from more than 100 locations in the U.S. Vitro was recently sold to American Glass Enterprises for about $63 million. Vitro filed for bankruptcy in early April and at the time an official hoped the action would have "no negative, major impact" on local operations. The company was a subsidiary of Mexico-based Vitro SAB, which defaulted on $1.2 billion in bonds in 2009 after the sagging economy deflated the construction and auto industries, its bread and butter. http://www.commercialappeal.com/news/2011/aug/16/coffee-break-aci-glass-to-cut-46-employees/

Shortage of accountants challenges Middle TN (Tennessean/Gonzalez)
Colleges, high schools try to meet demand as HQs flock to area Demand for accountants is growing faster than supply in the 10-county Nashville area, and a shortage of accounting professors across the nation makes meeting future needs difficult, say local educators and workforce experts. Fueled by the concentration of corporate headquarters, the region will need almost 4,900 more accountants in a decade, a 33 percent increase, according to reports by the Nashville Area Chamber of Commerce and the U.S. Bureau of Labor Statistics. The profession is one of the fastest-growing in the area, and the growth rate for Nashville-area accountants is well ahead of the projected national increase of 22 percent. The reports point to bright job prospects for certified accountants but expose a local workforce mismatch that has spurred high schools to expand finance-focused programs and prompted universities to develop accelerated master’s degree offerings. http://www.tennessean.com/article/20110816/NEWS01/308160028/Shortage-accountants-challenges-MiddleTN?odyssey=mod|newswell|text|FRONTPAGE|p

Hamilton County explores pursuing STEM grant (Times Free-Press/Hardy)
The Hamilton County Department of Education will explore grant funding for a Science, Technology, Engineering and Math school -- better known as a STEM school -- but officials must act fast if they want to compete in the state's next round of funding. The Tennessee STEM Innovation Network met with local school and business leaders Monday at the Chattanooga-Hamilton County Business Development Center to discuss its upcoming round of grant funding, which would provide nearly $2 million in funding for selected schools. The network, a partnership of the Tennessee Department of Education and the Batelle Memorial Institute, the world's largest independent research and development organization, is modeled after a similar program in Ohio and funded by Tennessee's federal Race to the Top grant. The network will consider funding one school and an affiliated "hub" to house all partnering organizations in both middle and east Tennessee -- Nashville and Knoxville each already operate network STEM schools. http://www.timesfreepress.com/news/2011/aug/16/b3-county-explores-pursuing-stem-grant/?local

New-teacher hires stir debate at Memphis City Schools (C. Appeal/Roberts)
When Memphis City Schools accepted millions of dollars from The Bill & Melinda Gates Foundation to improve teacher effectiveness, it agreed to tap new pipelines for attracting teachers. But after at least 190 teachers with no experience were hired over 100 teachers with lots of it, school board members wanted to know Monday if jobs were earmarked for some of the new teachers -- and what they are supposed to tell angry constituents. 8

"Out of North Memphis, I'm getting this phone call: 'How can you let the teacher of the year last year go when you're hiring people who don't have experience?'" board member Sara Lewis said after the meeting. "That needs to be explained to people. People don't understand. Our issues are (getting) accurate and adequate information." While Supt. Kriner Cash did not say whether some positions were intentionally left open for Teach for America and other talent partners, he said the process for filling positions was "open and transparent," and he reminded board members that he has said if any highly qualified teacher is not permanently placed, he will see to it himself that he or she will be. http://www.commercialappeal.com/news/2011/aug/16/new-teacherhires-stir-debate-at-mcs/

MCS approves Race to the Top Contract with MTR (WMC-TV Memphis)
While 100 Memphis City School teachers are still waiting for jobs, Monday night the school board approved a plan that will increase the district's teacher applicant pool. Memphis City Schools started the year with 540 surplus teachers. The number is now down to 100. But there are reports that some teachers are working as hall monitors and doing janitorial work. "I have some horror stories from teachers this week, they have come in tears, they have been reduced to all kinds of things," Keith Williams, President of the Memphis Education Association said. Williams warned against entering a contract with Memphis Teacher Residency, when the district already has displaced teachers. "W hy would Memphis City Schools pay Teach for America $4,000 and MTR $1.4 million to staff schools in this district that we are able to do ourselves," Williams said. MTR is a teacher certification program for candidates who commit to complete one-year master's degrees and then teach three years in Memphis City Schools. http://www.wmctv.com/story/15272706/m

School Board Agrees to MTR Contract (W HBQ-TV Memphis)
Memphis City School’s Board of Commissioners voted "yes" to a $1.4 million contract with the Memphis Teacher Residency program on Monday. That was after 40 minutes of heated discussion over surplus teachers already in the system. Commissioners approved the contract citing the mutual relationship with the program, but not without raising questions first. Some said they're concerned about teachers losing out to potential positions due to the agreement with the Memphis Teacher Residency Program, also known as MTR. But, MTR says MCS is not required to hire their teachers. MCS helped them apply for the grant money and is simply passing them the designated dollars. MCS Superintendent Kriner Cash says MTR helps recruit top caliber teachers at no cost to the school system. But, some commissioners say they've been overwhelmed with questions by the public and want more answers on how this impacts MCS teachers in the future. http://www.myfoxmemphis.com/dpp/news/local/school-board-agrees-to-mtr-contract-rpt-20110815

Germantown May Hire Schools Consultant (Memphis Daily News)
Germantown Mayor Sharon Goldsworthy is recommending the city hire a consulting firm to research the creation of a municipal school district. But in a written statement that is her first response to last week’s ruling in the federal court schools consolidation lawsuit, Goldsworthy said the exploration of a Germantown school district is one of several options the suburban city is weighing, including being part of a consolidated Shelby County school system. “We want to understand every dimension of establishing our own school system, from process to structure to facilities to curriculum and more,” Goldsworthy said. “At the same time as experts provide us due diligence on a municipal district, we will also be tracking closely with the development of the consolidated system. … Unless and until any municipal districts are formed, it is imperative that the perspectives and needs of our student constituencies and taxpayers be an integral part of the system’s design.” http://www.memphisdailynews.com/news/2011/aug/16/germantown-may-hire-schools-consultant/

State's 2007 error, Paper/Garrison)

since

fixed,

altered

Metro

schools'

standing

(City

Metro school officials say the Tennessee Department of Education’s misinterpretation of No Child Left Behind guidelines in 2007 meant MNPS for the past four years had wrongly been operating under a more severe classification of the federal law than it should have. State administrators have corrected the error. Still — in retrospect — consequences could have been severe, with a potential state or mayoral takeover of Metro schools riding on the line. “The district’s status for Metropolitan Nashville was incorrectly determined based on the accountability workbook for 2007,” Director of Schools Jesse Register told The City Paper in an interview at his office Monday. “The way our district’s status was determined in 2007 was a mistake,” Register said. “That’s just the bottom line. The accountability workbook was not followed correctly” The accountability 9

workbook refers to a lengthy, state-drafted document — approved by the federal government — that sets how student test scores are interpreted under the No Child Left Behind law. The book determines what constitutes proficiency or failing when comparing one school year to the next. http://nashvillecitypaper.com/content/city-news/states-2007-error-fixed-altered-metro-schools-standing

Meth-making components found in outbuilding (Knoxville News-Sentinel/Fowler)
When he opened the outbuilding's door, "the chemical odor was so bad you could not breathe safely," Anderson County Deputy W ally Braden stated in his report about a meth lab bust. Those four gallons of muriatic acid, the Coleman fuel, a respirator and several other items belonged to an unnamed friend who had been living there until he discovered the meth lab, resident David Eric Cagle told the deputy. Cagle said he was removing the lab components when officers arrived. Cagle, 38, of Lakeview Ferry Lane, was charged with initiating meth making and possession of drug paraphernalia. Arrested Friday, he remains in the Anderson County Jail today. Braden said he first encountered a strong chemical smell while walking around the locked outbuilding, and he found other items typically linked to meth making outside. A surveillance camera was positioned about 30 feet away, the deputy reported. Braden said he went to Cagle's residence in search of another man wanted for marijuana possession. http://www.knoxnews.com/news/2011/aug/15/meth-making-components-found-in-outbuilding/

Alabama: Retrial Set in Corruption Case (Associated Press)
A federal judge plans to retry parts of a gambling corruption case starting Oct. 3. A jury returned not guilty verdicts on 91 charges last week and could not reach a unanimous decision on 33 others. The seven remaining defendants — four current or former lawmakers, two high-profile lobbyists and one of the most powerful businessmen in the state — faced charges involving buying and selling votes on legislation that would legalize electronic bingo games in the state. Two other defendants were acquitted of all charges. Judge Myron Thompson of Federal District Court scheduled the retrial date on Monday after talking with federal prosecutors and defense lawyers. The Justice Department asked the judge to split the seven remaining defendants into three groups for retrial, while some defense lawyers want one combined trial. Judge Thompson has not decided that issue. http://www.nytimes.com/2011/08/16/us/16brfs-RETRIALSETIN_BRF.html?ref=todayspaper (SUBSCRIPTION)

Texas: Miles and Miles of Drought (New York Times)
This year, Texas has received less than half its normal rainfall: 6.53 inches instead of 16.03. Climatologists say this dry spell is the worst one-year drought since Texas began keeping rainfall records in 1895, and they predict that the cause of the drought — the weather created by the Pacific current called La Niña — may well extend into next year. For farmers and ranchers, this is a disaster. Agricultural losses have already surpassed the record — $4.1 billion in 2006 — and could double. There are no economic numbers for the wider ecological impact of this drought. Half the streams and rivers in the state are running well below ordinary flow, and lakes and reservoirs are faring no better. Wildlife of every kind is suffering as badly as livestock. Even if rainfall returns to normal, the next few years are likely to see serious reproduction declines in many species, especially those that depend on grasslands. Insect-eaters — bats and many birds — may not reproduce at all. Species that migrate to Texas in winter will find a desolate landscape awaiting them. http://www.nytimes.com/2011/08/16/opinion/miles-and-miles-of-drought-in-texas.html?ref=todayspaper (SUB)

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OPINION Editorial: A new deal for Amazon (Commercial Appeal)
The state is not in a position to force the issue, but a permanent tax break would not be sustainable. Tennessee Gov. Bill Haslam has a narrow path to tread between promises made by the previous administration to Amazon and the justified complaints of the online retailer's competitors. There is not a strong argument for the sales tax exemption granted by then-Gov. Phil Bredesen while Tennessee was encouraging Amazon to build distribution centers in East Tennessee. Buying a best-selling book, some patio furniture or a new radio online is, at its heart, no different than buying goods in a bricks-and-mortar store. Not requiring Amazon or any other retailer to collect sales taxes at the point of sale gives the online store a tremendous advantage over its competition, and it diminishes the state's ability to raise necessary revenue to provide basic services. As an encouragement to companies that plan to create new jobs for Tennesseans, a temporary sales tax exemption would be useful. Amazon's distribution centers planned for Lebanon, Chattanooga and Cleveland are expected to employ up to 1,500 people. http://www.commercialappeal.com/news/2011/aug/16/editorial-a-new-deal-for-amazon/

Guest columnist: Negotiate for future fair tax collections (Leaf Chronicle)
Collecting Tennessee sales tax from online retail giant Amazon is a dicey issue. Gov. Bill Haslam appears headed in the right direction. On Friday, he advised lawmakers that changes to Amazon's deal with the state should be arrived at through negotiations, not by reneging on the deal made by Haslam's predecessor, Gov. Phil Bredesen. Online buying is a phenomenon not anticipated when Tennessee's sales tax laws were put into place many years ago. But it is here to stay, and increasingly it is consumers' preferred way of buying many items. The problem is that there is no uniform method of collecting sales tax from online retailers. Tennessee consumers are obligated to pay the tax by filing the appropriate form with the state and sending in the money. It is a system generally ignored and essentially unenforceable on any large scale. The Amazon problem took 11

center stage when the company made a deal with Bredesen to build several distribution centers in Tennessee and bring much-needed jobs to the state. Bredesen told Amazon it would not have to collect Tennessee sales tax on shipments to Tennessee residents. Amazon has a history of pulling its operations out of states that demand it collect sales tax. http://www.theleafchronicle.com/article/20110816/OPINION01/108160305/GUEST-EDITORIAL-Negotiatefuture-fair-tax-collections

Editorial: Testing, within reason (Commercial Appeal)
Infusing the No Child Left Behind Act with a degree of rationality, U.S. Education Secretary Arne Duncan said last week that states will get an opportunity to apply for waivers from its unreasonable demands. There is a catch, of course, as there should be. Although the test scores that define proficiency have been raised in Tennessee and elsewhere, school districts must continue to show improvement in order to escape the penalties imposed by NCLB. But it was obvious that actually meeting the primary mandate of the Bush-era education reform law -- every student proficient in math and reading and a 90 percent graduation rate by 2014 -- was not a reasonable demand. Waivers will take school districts further along the road to accountability than impossible goals. Tennessee and every other state that is serious about raising academic achievement will take advantage of this opportunity. Half of Tennessee's schools are failing under the federal testing standards -- partly the result of raising proficiency levels on a par with the levels set out in the National Assessment of Educational Progress, the testing system that produces a universally accepted school report card. http://www.commercialappeal.com/news/2011/aug/16/editorial-testing-within-reason/

Editorial: TN must stay on track with driver service center fixes (DNJ)
We couldn't be happier with the announcement that, beginning this week, all driver service centers in Tennessee will be open extended hours. Each center, including the one on Samsonite Boulevard in Murfreesboro, will now operate during the hours of 8:30 a.m. to 5 p.m. Monday through Friday. Prior to this week's change, the average transaction at a driver service center took just over 51 minutes, according to the Department of Safety. And that estimate doesn't even take into account all the time spent waiting. The department does not start counting wait-time minutes until customers have stood in line to visit a center's front counter to be issued a number for service. The wait times can actually stretch into hours. And that certainly doesn't count the drive for many, as driver service centers are located in just 65 of Tennessee's 95 counties. The extended hours are especially crucial now that Gov. Bill Haslam has signed a voter ID law that will go into effect in January. http://www.dnj.com/article/20110816/OPINION02/108160304/Editorial-TN-must-stay-track-driver-servicecenter-fixes

Editorial: Emkes right to advise Tennessee to hang on to every dollar it has (J. Sun)
The state of Tennessee isn't exactly flush with money, but it has seen several months of tax revenue that exceeded projections. That helped create a $28 billion general fund surplus. State Finance Commissioner Mark Emkes wants to hang on to the extra funds as a hedge against a sluggish economy, volatile swings in the stock market and uncertainty on the jobs front. We think that's good advice. Emkes met with bond ratings organizations Moody's and Fitch in New York last week. His goal was to lay the groundwork for a formal meeting with the agencies in September that will be led by Gov. Bill Haslam. The goal is to reassure the ratings agencies and to maintain the state's excellent credit rating. Emkes is right to be concerned given the recent downgrade in the nation's credit rating by Standard & Poor's. Fortunately, Tennessee is in better financial shape than the federal government because it must pass and live by a balanced budget every year. But that doesn't mean there aren't major concerns about the state's financial condition. http://www.jacksonsun.com/article/20110816/OPINION01/108160302/Emkes-right-advise-Tennessee-hangevery-dollar-has

Guest columnist: Tennessee roads, bridges in a financial hole (Tennessean)
Congress should invest in needed repairs to fuel jobsIn the backdrop to the recent political fireworks on the federal debt limit is a sobering reality: America is in the midst of a national jobs emergency. Tennessee, struggling with 9.8 percent unemployment, is a perfect example of what’s happening nationally. The August U.S. Labor Department employment report showed anemic job growth. In July, the U.S. Chamber of Commerce released what it called the “brutal findings” in its “Small Business Outlook Survey” of more than 12

1,400 small-business owners. Nearly 65 percent said they have no plans to hire in the next year. “Economic uncertainty” was the primary obstacle cited. Hard-times stories reverberate throughout the U.S. construction industry, currently reeling with a 15.6 percent unemployment rate, 6.4 points higher than the national average. A July national survey of transportation contractors by the American Road & Transportation Builders Association found more than half of the respondents operating below 75 percent capacity. Some reported the highway and bridge construction market is the worst they’ve experienced in their lifetimes. http://www.tennessean.com/article/20110816/OPINION03/308160005/Tennessee-roads-bridges-financialhole?odyssey=mod|newswell|text|News|p

Free-Press Editorial: Appeals court deals serious blow to ObamaCare (TFP)
In a strong rebuke to the Obama-Care socialized medicine law enacted by Democrats in Congress last year, a federal appeals court has rightly struck down the most alarming provision of the law. A panel of the 11th U.S. Circuit Court of Appeals in Atlanta declared in a 2-1 ruling that Congress has no constitutional authority to force virtually all Americans to purchase government-approved medical insurance or be penalized. The appeals court majority seemed almost stunned that lawmakers and President Barack Obama would have believed they had the power to impose such a requirement. The court hearkened back to the painful days of the Great Depression and W orld War II, when, the judges noted, "Congress never sought to require the purchase of wheat or war bonds, force a higher savings rate or greater consumption of American goods." The judges said that regulation of those who choose to purchase insurance may be permitted, but that Congress has no authority to regulate people who "have not entered the insurance market and have no intention of doing so." http://www.timesfreepress.com/news/2011/aug/16/fp1-serious-blow-to-obamacare/?opinionfreepress

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