WEBVTT 00:00.000 --> 00:03.298 (female announcer) This is a production of WKNO - Memphis. 00:03.298 --> 00:06.831 Production funding for "Behind the Headlines" is made possible 00:06.831 --> 00:12.831 in part by.. 00:15.931 --> 00:18.798 Senator Mark Norris on the upcoming legislative session 00:18.798 --> 00:20.998 tonight on "Behind the Headlines." 00:20.998 --> 00:37.264 [theme music] ♪♪♪ 00:37.264 --> 00:38.998 I'm Eric Barnes, publisher of The Memphis Daily News. 00:38.998 --> 00:39.998 Thanks for joining us. 00:39.998 --> 00:41.998 I am joined tonight by just one guest, 00:41.998 --> 00:44.198 Mark Norris, majority leader state senator. 00:44.198 --> 00:45.398 Thank you for coming back. 00:45.398 --> 00:46.398 Eric, it's great to be here. 00:46.398 --> 00:48.298 I think so. 00:48.298 --> 00:50.298 So we have the whole session, just the two of us. 00:50.298 --> 00:52.298 Talk about -- or the whole show. 00:52.298 --> 00:54.298 Talk about the upcoming session. 00:54.298 --> 00:55.298 Maybe look back at some things. 00:55.298 --> 00:57.298 But looking in to this upcoming session, 00:57.298 --> 00:59.298 you'll be majority leader again. 00:59.298 --> 01:01.964 There are super majorities of Republicans in the senate and 01:01.964 --> 01:04.364 the house, the governor's office. 01:04.364 --> 01:05.531 What are your priorities? 01:05.531 --> 01:08.064 What are the Republican priorities this coming session? 01:08.064 --> 01:09.731 Thank you. 01:09.731 --> 01:13.898 The main priority is to pass a balanced budget. 01:13.898 --> 01:17.131 So many of our viewers don't appreciate the fact that unlike 01:17.131 --> 01:21.464 Washington, state government balances our budget each year. 01:21.464 --> 01:26.398 And as majority leader, I carry the budget and intend to do so 01:26.398 --> 01:27.498 again as required. 01:27.498 --> 01:31.964 But it'll be a special challenge this year as we'll discuss 01:31.964 --> 01:35.431 revenues as budgeted are off. 01:35.431 --> 01:38.431 And some of our expenses and essential areas, 01:38.431 --> 01:40.664 education, healthcare are up. 01:40.664 --> 01:48.398 And so, there'll be less of the tax payers funds to put to good 01:48.398 --> 01:49.398 use. 01:49.398 --> 01:51.398 And we're gonna have to be very prudent about how we balance the 01:51.398 --> 01:52.398 budget. 01:52.398 --> 01:54.398 We're about a third of the way in to the fiscal year, 01:54.398 --> 01:55.398 the state's fiscal year. 01:55.398 --> 01:56.398 I think I read that. 01:56.398 --> 01:57.398 We're off. 01:57.398 --> 01:58.998 That was unexpected. 01:58.998 --> 02:00.998 People felt like the economy was picking up. 02:00.998 --> 02:03.398 And most of the state revenue comes from sales taxes, 02:03.398 --> 02:04.398 correct? 02:04.398 --> 02:06.398 I mean that's the vast majority. 02:06.398 --> 02:10.131 One of the unanticipated downturns was in the franchise 02:10.131 --> 02:11.464 and excise tax. 02:11.464 --> 02:14.964 And we are currently attributing that to the fact that a number 02:14.964 --> 02:19.064 of companies paid estimated taxes where they overpaid. 02:19.064 --> 02:21.064 And so there are rebates underway. 02:21.064 --> 02:24.998 And that probably has more to do with it than sales tax at this 02:24.998 --> 02:25.998 point. 02:25.998 --> 02:28.698 But expenses will be up in Heathcare. 02:28.698 --> 02:31.398 Our Tenn Care budget is growing. 02:31.398 --> 02:34.964 And we're gonna have to find ways to pay for that. 02:34.964 --> 02:36.264 The national argument aside. 02:36.264 --> 02:38.831 Yeah, I was gonna say that surprised me. 02:38.831 --> 02:41.031 And I follow this stuff fairly closely. 02:41.031 --> 02:43.531 But Tennessee has not agreed to do the Medicaid expansion that's 02:43.531 --> 02:44.764 a part of Obama Care. 02:44.764 --> 02:45.764 You've mentioned it. 02:45.764 --> 02:46.764 Let's kind of start there. 02:46.764 --> 02:47.864 What is your take on that? 02:47.864 --> 02:50.898 I mean should the state take that federal money and expand 02:50.898 --> 02:51.898 Medicare? 02:51.898 --> 02:54.164 Right now, it's quote free money the federal government is going 02:54.164 --> 02:56.198 to give to the various states who've opted in, 02:56.198 --> 02:58.231 which I think is about half the states, 02:58.231 --> 02:59.264 the full amount. 02:59.264 --> 03:00.264 It then.. 03:00.264 --> 03:02.264 There's a sliding scale that, what? 03:02.264 --> 03:04.264 -- over the next five, ten years it goes down to where the 03:04.264 --> 03:06.264 federal government's gonna fund maybe 90%. 03:06.264 --> 03:07.264 Right. 03:07.264 --> 03:09.264 Actually, a shorter fuse -- three years. 03:09.264 --> 03:10.264 Yeah, the answer is no. 03:10.264 --> 03:12.931 The state should not. 03:12.931 --> 03:16.031 And Governor Haslam just wrote a letter recently back saying you 03:16.031 --> 03:20.431 know, our conversations aren't going anywhere. 03:20.431 --> 03:24.864 And so it's sort of off the table for now. 03:24.864 --> 03:27.998 That can't be confused though with the fact that meanwhile, 03:27.998 --> 03:29.998 back at the ranch, we have Tenn Care. 03:29.998 --> 03:34.664 And we have Tennesseans who need to be attended to one way or 03:34.664 --> 03:35.664 another. 03:35.664 --> 03:38.298 So aside fom Obama Care and the affordable care act, 03:38.298 --> 03:41.398 we find that as a result of the implimentation of that, 03:41.398 --> 03:43.764 we now have what we thought would be about 470,00 03:43.764 --> 03:46.064 new enrollees -- those who are eligible but previosuly 03:46.064 --> 03:47.064 unenrolled. 03:47.064 --> 03:49.064 Then we thought it might be 50,000. 03:49.064 --> 03:51.064 As we speak here tonight, it's more like 52,000. 03:51.064 --> 03:52.198 And part of that's.. 03:52.198 --> 03:55.198 I know nationally, part of that's because people go in to 03:55.198 --> 03:57.198 the exchanges now that they're kind of, 03:57.198 --> 03:59.464 sort of working or at least working better. 03:59.464 --> 04:03.164 And they go through and they find out or they meet with a 04:03.164 --> 04:04.598 counselor or whatever they do. 04:04.598 --> 04:07.798 And they find out that they've been eligible for Medicaid for 04:07.798 --> 04:08.798 quite sometime. 04:08.798 --> 04:10.798 And I guess this is happening in Tennessee too even though the 04:10.798 --> 04:11.998 expansion wasn't put in place. 04:11.998 --> 04:12.998 Correct. 04:12.998 --> 04:16.564 And so everything about the dysfunction in DC aside, 04:16.564 --> 04:18.764 we have a situation we have to deal with. 04:18.764 --> 04:22.831 And so there are additional costs associated with that, 04:22.831 --> 04:24.831 several hundred million dollars. 04:24.831 --> 04:26.998 And when you couple that with -- oh, 04:26.998 --> 04:32.864 as we speak maybe $123 million less than a revenue budgeted, 04:32.864 --> 04:35.998 you knwo teh combiantion there is a pretty significant factor. 04:35.998 --> 04:37.998 We're just gonna have to deal with it. 04:37.998 --> 04:41.331 And again, I'm assuming you're here but you're colleagues.. 04:41.331 --> 04:44.398 No one's really gonna look at increased taxes I assume. 04:44.398 --> 04:48.898 This is just not a legislator that's going to do that. 04:48.898 --> 04:49.898 Oh, no. 04:49.898 --> 04:52.264 And it's not necessary that we do so. 04:52.264 --> 04:55.231 The governors asked all the departments to report what their 04:55.231 --> 05:00.664 projections would be with additional five percent in cuts. 05:00.664 --> 05:02.431 He's managed this very well. 05:02.431 --> 05:06.231 And we've had good, solid budgets since he took office in 05:06.231 --> 05:07.231 the last three years. 05:07.231 --> 05:10.464 On the positive side, we'll have some additional revenue starting 05:10.464 --> 05:13.664 in January from the Amazon settlement where they're going 05:13.664 --> 05:15.831 to begin paying sales taxes. 05:15.831 --> 05:21.264 And we have a fairly robust employment situation since 05:21.264 --> 05:26.131 Governor Haslam took office in 2011. 05:26.131 --> 05:30.464 Somewhere in the neighborhood of 140,000 new private sector jobs. 05:30.464 --> 05:31.831 Those generate revenue. 05:31.831 --> 05:33.598 So we're gonna do fine. 05:33.598 --> 05:36.764 But we're not a wash in tax payer money. 05:36.764 --> 05:39.231 Talking about taxpayer money, talking about government 05:39.231 --> 05:40.231 spending. 05:40.231 --> 05:43.831 A little bit more of a local issues although there's a state 05:43.831 --> 05:45.264 angle which is pensions. 05:45.264 --> 05:48.098 Last spring, the state comptroller -- I've been 05:48.098 --> 05:49.498 corrected by many viewers. 05:49.498 --> 05:51.631 Controller even though it's spelled comptroller. 05:51.631 --> 05:55.498 The state comptroller wrote a letter to the city saying look, 05:55.498 --> 05:56.498 your pension.. 05:56.498 --> 05:58.498 Your accounts are out of balance. 05:58.498 --> 06:00.831 We're concerned and we're particularly concerned about 06:00.831 --> 06:03.564 this unfunded liability on the pension side. 06:03.564 --> 06:06.731 To some degree, I mean some people have said an emphasis no 06:06.731 --> 06:08.731 where near the shape that Detroit is. 06:08.731 --> 06:11.164 But at the end of the day, the state kind of back stops the 06:11.164 --> 06:13.164 municipalities, Memphis included. 06:13.164 --> 06:15.431 So I assume that was sort of the opening shot to say look, 06:15.431 --> 06:17.431 you guys have go to get things together. 06:17.431 --> 06:20.964 Just this week in the last week, Mayor Wharton has come forward 06:20.964 --> 06:23.798 with a plan to begin to fund that unfunded liability over a 06:23.798 --> 06:26.298 five year period starting at 20 million next year, 06:26.298 --> 06:29.198 at 40 million, getting up to a really big number -- $80 million 06:29.198 --> 06:30.198 with in the city bidget. 06:30.198 --> 06:31.198 It's a big number. 06:31.198 --> 06:32.198 It is. 06:32.198 --> 06:34.398 What are your thoughts on Wharton's plans and the state's 06:34.398 --> 06:37.164 involvement in the local pension issue. 06:37.164 --> 06:40.964 Last March as a member of the pensions and insurance committee 06:40.964 --> 06:44.564 that I serve on, I asked for the committee and the general 06:44.564 --> 06:48.731 assembly to take stock of where all local governments across the 06:48.731 --> 06:52.931 state may be -- Not just Memphis but other municipalities as 06:52.931 --> 06:53.931 well. 06:53.931 --> 06:56.731 The department of treasury, Treasurer David Lillard and his 06:56.731 --> 06:59.398 staff have worked on that ever since. 06:59.398 --> 07:02.031 So for many months looking at that. 07:02.031 --> 07:06.564 And we've met with Mayor Wharton to talk about the particular 07:06.564 --> 07:09.564 situation as it obtains to Memphis. 07:09.564 --> 07:14.598 And he's taking a giant leap forward in what he presents as 07:14.598 --> 07:16.464 we enter in to the new year. 07:16.464 --> 07:20.631 There will be legislation requiring maintenance of effort 07:20.631 --> 07:22.998 by municipalities and other local governments. 07:22.998 --> 07:25.864 I'll sponsor that legislation at the request of the treasurer. 07:25.864 --> 07:31.864 And what we need to do is instill discipline in all these 07:31.864 --> 07:32.864 local governments. 07:32.864 --> 07:36.064 It's not just about Memphis but Memphis being one of our big 07:36.064 --> 07:41.964 cities with a big problem has got to take some big steps. 07:41.964 --> 07:45.331 Part of this switch that has been pushed and that is the 07:45.331 --> 07:50.264 Wharton plan is to take the honor the obligation to retired 07:50.264 --> 07:52.498 and I guess vested employees. 07:52.498 --> 07:55.264 But for new employees in to the city government and newer 07:55.264 --> 07:57.798 employees -- people, I think it's less than ten years. 07:57.798 --> 08:00.798 They move to more of what the private sector has moved toward 08:00.798 --> 08:03.098 which is a 401k where it's a defined contribution. 08:03.098 --> 08:06.098 The city is going to put in X-hundred or thousand dollars a 08:06.098 --> 08:09.131 year, what ever it is, and it's gonna fluctutate with the market 08:09.131 --> 08:12.664 and that's what's gonna be there at the end of the day versus the 08:12.664 --> 08:15.198 defined benefit where there's a guarantee of what they're gonna 08:15.198 --> 08:16.198 get. 08:16.198 --> 08:17.198 That's right. 08:17.198 --> 08:18.198 You like that idea? 08:18.198 --> 08:19.198 It's the only thing to do. 08:19.198 --> 08:21.198 That's the direction you have to move. 08:21.198 --> 08:23.198 The question is how far you go and how fast. 08:23.198 --> 08:27.731 The state of Tennessee reformed it's pension plan in 2013. 08:27.731 --> 08:29.731 We've already taken those steps. 08:29.731 --> 08:30.898 It's a hybrid. 08:30.898 --> 08:34.064 It's a combination between defined benefit and defined 08:34.064 --> 08:35.064 contribution. 08:35.064 --> 08:37.598 And that's for, in terms of state workers, 08:37.598 --> 08:41.931 that's for highway patrol and people out you see working on 08:41.931 --> 08:44.698 the highways, so on and so forth. 08:44.698 --> 08:45.898 Legislators and others. 08:45.898 --> 08:46.898 Okay. 08:46.898 --> 08:47.898 Right. 08:47.898 --> 08:48.898 And what was the reaction? 08:48.898 --> 08:51.731 Stoic but resolved that it needed to be done. 08:51.731 --> 08:53.798 And you didn't hear a great cry about it. 08:53.798 --> 08:55.798 There was a lot of effort that went in to it in terms of 08:55.798 --> 08:59.331 planning and working with different constituant groups. 08:59.331 --> 09:01.598 Some in the private sector here locally think that all 09:01.598 --> 09:02.698 government should go further. 09:02.698 --> 09:04.631 No hybrid plan about it. 09:04.631 --> 09:07.164 Just go all the way to defined contribution. 09:07.164 --> 09:09.231 Including those retired employees and the vested 09:09.231 --> 09:11.264 employees and so on. 09:11.264 --> 09:14.431 And for a variety of reasons, that's probably not practical. 09:14.431 --> 09:20.164 But we think and the treasury department thinks that moving in 09:20.164 --> 09:24.431 that direction if not going all the way is sufficient to right 09:24.431 --> 09:25.431 the ship of state. 09:25.431 --> 09:26.431 And we'll see. 09:26.431 --> 09:27.431 Yeah. 09:27.431 --> 09:29.598 And for those who are concerned about the state, 09:29.598 --> 09:31.598 you know there's always this tension between the state 09:31.598 --> 09:34.364 involvement and local issues, federal involvement in state 09:34.364 --> 09:35.364 issues. 09:35.364 --> 09:37.531 You all don't like to be mandated by the federal 09:37.531 --> 09:39.831 government to do X, Y and Z when you don't have the funding for 09:39.831 --> 09:40.831 it or don't have the control. 09:40.831 --> 09:44.564 Are you comfortable that the state's involvement is 09:44.564 --> 09:45.564 appropriate. 09:45.564 --> 09:47.964 Yes and just as I was in the education space. 09:47.964 --> 09:50.831 At the end of the day, it's the state's responsibility. 09:50.831 --> 09:53.764 You can talk about local funding all you want. 09:53.764 --> 09:56.931 But to the extent that most of the funding comes through the 09:56.931 --> 10:01.131 state and from the taxpayers and citizens of the state, 10:01.131 --> 10:03.264 it's ultimately our responsibility. 10:03.264 --> 10:06.398 It's our duty to do it working with local governments. 10:06.398 --> 10:10.398 But we need to make sure that the requisite degree of 10:10.398 --> 10:14.698 discipline is at work and that the local governments are 10:14.698 --> 10:17.264 salting away for that retirement day, 10:17.264 --> 10:18.264 the funds that are needed. 10:18.264 --> 10:20.698 It's, you know, whatever metaphor you want to use. 10:20.698 --> 10:23.631 Robbing Peter to pay Paul and that sort of thing just isn't 10:23.631 --> 10:24.631 gonna cut it. 10:24.631 --> 10:26.631 It's an interesting thing nationally, 10:26.631 --> 10:28.631 too, because you know we're very focused here in Memphis. 10:28.631 --> 10:30.631 You know there are the people you get, 10:30.631 --> 10:32.631 you know, Memphis is the next detroit or get down on Memphis. 10:32.631 --> 10:35.764 The fact is we're so far away form a Detroit situation. 10:35.764 --> 10:37.764 Wall Street Journal -- I don't know if you've.. 10:37.764 --> 10:39.764 We haven't talked about this but they've done a really great 10:39.764 --> 10:42.398 series on states and localities in trouble. 10:42.398 --> 10:45.764 I mean Memphis isn't even close to the trouble that some of 10:45.764 --> 10:48.931 these places in California and Illinois and so on. 10:48.931 --> 10:51.798 I guess part of that for you is that's all well and good but we 10:51.798 --> 10:52.798 want to stay there. 10:52.798 --> 10:54.798 We want to stay away from the bottom. 10:54.798 --> 10:57.164 Keep them away from that, absolutely. 10:57.164 --> 10:59.398 So it's sometimes a sort of tough love. 10:59.398 --> 11:02.231 But we've met here locally, for example, 11:02.231 --> 11:04.431 with Mayor Wharton and Brian Collins. 11:04.431 --> 11:05.898 It's nothing personal. 11:05.898 --> 11:08.464 You know it's just business. 11:08.464 --> 11:11.664 And you know when Wharton was on the show earlier this year right 11:11.664 --> 11:14.164 when they letter came from the comptroller and so on. 11:14.164 --> 11:17.098 And I asked him, you know, are you glad the state stepped in? 11:17.098 --> 11:20.598 And he said yeah because we needed that kick I think. 11:20.598 --> 11:23.498 And other city council members either on the record or off the 11:23.498 --> 11:25.864 record have said on the show and said elsewhere -- yeah, 11:25.864 --> 11:26.864 we needed this. 11:26.864 --> 11:28.964 Because it was just going to be too hard for us to do it alone. 11:28.964 --> 11:30.631 This was the first warning. 11:30.631 --> 11:33.831 And then like you're saying, some legislation and the kind of 11:33.831 --> 11:37.098 this is inevitable that this is going to have to happen. 11:37.098 --> 11:38.098 When you look at.. 11:38.098 --> 11:40.331 We're talking about cities and finances. 11:40.331 --> 11:42.564 And you mentioned the schools and we'll come to that a little 11:42.564 --> 11:43.564 bit later. 11:43.564 --> 11:46.664 But your take on some of the projects and some of the 11:46.664 --> 11:50.398 spending at the local level right now -- county, 11:50.398 --> 11:51.398 city-wise. 11:51.398 --> 11:53.398 The one that's most immediate is Autozone. 11:53.398 --> 11:55.398 And I know that's not really a state issue but you're, 11:55.398 --> 11:56.398 you know. 11:56.398 --> 11:57.398 You live in the community. 11:57.398 --> 11:58.398 You're politically connected. 11:58.398 --> 12:02.064 The baseball park -- what's your take on that deal? 12:02.064 --> 12:05.331 And is it a deal that should be done by the city? 12:05.331 --> 12:07.331 It's sort of to your earlier point. 12:07.331 --> 12:09.398 I mean there are places for the state to assert the state's 12:09.398 --> 12:12.698 position and places for the state to stay out of it. 12:12.698 --> 12:15.231 This is one where the city council, 12:15.231 --> 12:20.898 city of Memphis have to decide what they can afford. 12:20.898 --> 12:25.698 With the requirements of the pension reality and other post 12:25.698 --> 12:30.431 employment benefits, with what Mayor Wharton is saying, 12:30.431 --> 12:35.231 he realizes he needs to put away to get up to that actuarily 12:35.231 --> 12:36.764 required amount. 12:36.764 --> 12:40.931 You know it's going to be for them to decide how the debt 12:40.931 --> 12:41.964 service works. 12:41.964 --> 12:44.698 I don't know enough about the particular stadium deal to say. 12:44.698 --> 12:47.964 I understand that they're saying that it basically pays for 12:47.964 --> 12:52.064 itself when you account for the rental that's paid and so forth. 12:52.064 --> 12:54.064 There's no question on the positive side of the ledger. 12:54.064 --> 12:57.064 You need things to generate revenue, too. 12:57.064 --> 12:58.064 I mean you can only cut so far. 12:58.064 --> 13:01.298 So just as we have been working on work force development 13:01.298 --> 13:04.598 issues, bringing in more jobs and maybe new employers are 13:04.598 --> 13:08.131 growing, existing employers -- that's all designed to bring 13:08.131 --> 13:10.464 cash in on the positive side of the ledger. 13:10.464 --> 13:12.431 So there's a lot in the mix. 13:12.431 --> 13:16.964 And where they separate these projects out, 13:16.964 --> 13:17.964 I don't know. 13:17.964 --> 13:19.964 But I know we're gonna learn a lot more about it between now 13:19.964 --> 13:20.964 and January. 13:20.964 --> 13:22.964 You don't want to say it if you want the deal -- yes or no. 13:22.964 --> 13:25.198 No. [laughter] 13:25.198 --> 13:26.231 Sorry! 13:26.231 --> 13:27.598 That's fine. 13:27.598 --> 13:29.431 So we talk about incentives. 13:29.431 --> 13:31.231 Pilots, a thing we talk about on the show sometimes. 13:31.231 --> 13:34.431 Economic development generally and the various local 13:34.431 --> 13:36.498 incentives, state incentives. 13:36.498 --> 13:39.498 When Haslam came in, he got away from some of the programs that 13:39.498 --> 13:43.031 had existed more to these sort of cash incentives. 13:43.031 --> 13:46.831 Shelby County and Memphis still do a lot of payment in leiu of 13:46.831 --> 13:48.831 taxes, which can be very controversial. 13:48.831 --> 13:51.298 What is your take on that, the best approach? 13:51.298 --> 13:52.831 Because I think you've said. 13:52.831 --> 13:55.498 I know others state folks have said that economic development 13:55.498 --> 13:58.564 on the big scale of recruitment is a state local partnership. 13:58.564 --> 13:59.564 It has to be. 13:59.564 --> 14:01.798 Those incentives and the contacts and so on. 14:01.798 --> 14:05.531 Do you feel like the use of pilots in the Memphis - Shelby 14:05.531 --> 14:08.764 County area has been appropriate and is going in the right 14:08.764 --> 14:09.764 direction? 14:09.764 --> 14:11.764 I think it's going in the right direction. 14:11.764 --> 14:14.331 It has not always been appropriate back to the time 14:14.331 --> 14:16.398 when I served on the county commission. 14:16.398 --> 14:17.998 We had some heartburn over. 14:17.998 --> 14:22.131 For example, the degree to which funding that otherwise would 14:22.131 --> 14:24.764 have gone to education was being diverted. 14:24.764 --> 14:27.298 We took some measure to address that at the time. 14:27.298 --> 14:31.798 I think with EDGE, the new economic development growth 14:31.798 --> 14:34.398 engine, and other programs, they're moving in the right 14:34.398 --> 14:35.398 direction. 14:35.398 --> 14:38.298 But I think you always have to be sensitive to how much should 14:38.298 --> 14:40.598 government be involved in private enterprise. 14:40.598 --> 14:42.764 You're in competition with other states. 14:42.764 --> 14:45.164 And I know this as chairman of the council of state 14:45.164 --> 14:47.198 governments, now the national organization. 14:47.198 --> 14:49.031 There's a balance to be struck. 14:49.031 --> 14:51.831 But what we're trying to do in this administration is to get 14:51.831 --> 14:54.598 away from tax credits and that sort of thing. 14:54.598 --> 14:55.998 They get lost in the shuffle. 14:55.998 --> 14:57.464 They're hard to keep up with. 14:57.464 --> 15:00.464 You're waiving taxes when other people have to pay for them and 15:00.464 --> 15:05.631 deal more with a ready workforce and other incentives that are 15:05.631 --> 15:10.298 concrete and sort of organic to the area to attract. 15:10.298 --> 15:13.398 We've got a lot of natural resources here and amenities 15:13.398 --> 15:17.031 that make Tennessee the place to be in so many ways without 15:17.031 --> 15:18.031 giving away the store. 15:18.031 --> 15:19.398 So you have to be prudent. 15:19.398 --> 15:22.064 The department of economic and community development has their 15:22.064 --> 15:24.731 own metrics and their own matrix and everything to make sure that 15:24.731 --> 15:27.331 we get the appropriate return on the taxpayers investment. 15:27.331 --> 15:29.931 But you can't give away the store. 15:29.931 --> 15:33.964 Yeah, isn't there also the reality that, 15:33.964 --> 15:35.964 you know, people will compare Memphis and Nashville. 15:35.964 --> 15:37.964 Nashville doesn't rely on pilots as much. 15:37.964 --> 15:39.964 And we've had people on the show. 15:39.964 --> 15:41.964 I've talked to people with the paper who say -- Well it's all 15:41.964 --> 15:43.964 well and good to compare Memphis and Nashville. 15:43.964 --> 15:45.964 But Memphis is right up against Mississippi. 15:45.964 --> 15:47.964 And Mississippi is open for business. 15:47.964 --> 15:51.698 And they will give you a credit, cash and flowers to get your 15:51.698 --> 15:53.698 business to come across the border. 15:53.698 --> 15:55.931 And that unique situation where you can.. 15:55.931 --> 15:58.864 if you're gonna locate a business in Olive Branch, 15:58.864 --> 16:01.998 you can still tkae advantage of the Memphis airport, 16:01.998 --> 16:05.498 the Memphis Grizzlies, the amenties of a big city while not 16:05.498 --> 16:07.198 having to be in Tennessee. 16:07.198 --> 16:09.198 Nashville doesn't really face that so much. 16:09.198 --> 16:11.198 Other cities don't necessarily face. 16:11.198 --> 16:12.198 And there are cities that do. 16:12.198 --> 16:14.898 But that's where I think people sort of say the 16:14.898 --> 16:17.698 Memphis-Nashville comparison on these pilots breaks down. 16:17.698 --> 16:19.098 There's some unique issues. 16:19.098 --> 16:21.098 Arkansas is right across the river -- same thing. 16:21.098 --> 16:24.164 You can base something in Marion and take advantage of, 16:24.164 --> 16:27.364 without paying any taxes, the Memphis big city. 16:27.364 --> 16:29.364 Yeah and that's just a challenge. 16:29.364 --> 16:30.364 It's a daily challenge. 16:30.364 --> 16:33.531 There's a great team at work now. 16:33.531 --> 16:35.931 You know a lot of people have to understand why the Haslam 16:35.931 --> 16:39.031 administration sort of reconfigured the way teh 16:39.031 --> 16:41.298 department of economic and community development was set 16:41.298 --> 16:42.298 up. 16:42.298 --> 16:43.298 They went to these base camps. 16:43.298 --> 16:45.298 People might not even remember it. 16:45.298 --> 16:47.298 But nine camps across the state. 16:47.298 --> 16:48.298 That's one of the reasons. 16:48.298 --> 16:50.298 Because the folks who are here, get it. 16:50.298 --> 16:51.298 They know. 16:51.298 --> 16:53.298 They know what we're dealing with here which maybe different 16:53.298 --> 16:55.298 from what they deal with in Nashville or Johnson City or 16:55.298 --> 16:56.298 some other place. 16:56.298 --> 16:59.964 So it's more customized to the realities we have here. 16:59.964 --> 17:01.364 And it's working. 17:01.364 --> 17:03.464 I mean we've had some great developments. 17:03.464 --> 17:06.764 Like I said, about 140,000 new private sector jobs. 17:06.764 --> 17:09.264 The expansion we're gonna have. 17:09.264 --> 17:11.464 And of course that's in Covington and Tipton County. 17:11.464 --> 17:14.798 But regionally speaking, it'll be the largest ice cream 17:14.798 --> 17:17.564 manufacturing facility in the world. 17:17.564 --> 17:20.564 They're consolidating all their North American, yeah. 17:20.564 --> 17:22.564 And so there are a lot of good things. 17:22.564 --> 17:24.564 Did you work that in to the deal? 17:24.564 --> 17:25.564 Later off line. 17:25.564 --> 17:28.031 We talk about work force though. 17:28.031 --> 17:31.064 You know, two big projects -- Electrolux and Mitsubishi 17:31.064 --> 17:32.064 They're ramping up. 17:32.064 --> 17:35.131 But you know already, I think the director of HR from, 17:35.131 --> 17:37.498 I believe it was Electrolux and it might have been Mitsubishi 17:37.498 --> 17:39.898 recently said they're having trouble hiring because these are 17:39.898 --> 17:42.098 not factory jobs in the old sense of, 17:42.098 --> 17:44.098 you know, picking up a widget and dropping a widget. 17:44.098 --> 17:45.998 I mean they're pretty high tech jobs, actually. 17:45.998 --> 17:47.631 And pretty well paid jobs in terms of.. 17:47.631 --> 17:49.731 Does that concern you? 17:49.731 --> 17:51.498 And is that something where the state through community 17:51.498 --> 17:55.598 colleges, through whatever, can work more closely to get skilled 17:55.598 --> 17:57.298 workers in to these new facilities. 17:57.298 --> 17:58.131 And we are. 17:58.131 --> 18:02.164 If your viewers haven't heard about Drive to 55 and LEAP, 18:02.164 --> 18:08.298 the Labor and Education Allignment Program that I 18:08.298 --> 18:10.298 authored and passed this year or in 2013. 18:10.298 --> 18:13.498 Both of those are designed to help Tennesseans simultaneously 18:13.498 --> 18:17.264 work, earn and learn so that they get a certificate or degree 18:17.264 --> 18:20.664 while actually engaged and on the job trainined whether it's 18:20.664 --> 18:24.598 an apprenticeship on the job they already have alligning the 18:24.598 --> 18:27.931 education sector to work with local employers and say -- Well 18:27.931 --> 18:29.931 if your employees are doing this, 18:29.931 --> 18:32.198 this and this on the job, did you know that that would qualify 18:32.198 --> 18:35.498 them for a certificate in advanced manufacturing or this 18:35.498 --> 18:36.498 or that. 18:36.498 --> 18:38.498 We're working closely with Unilever, 18:38.498 --> 18:41.631 with Electrolux, with the Bodine plant in Jackson. 18:41.631 --> 18:45.064 I don't think a lot of folks realize that next year, 18:45.064 --> 18:48.198 all engine blocks made for Toyota motor vehicles in North 18:48.198 --> 18:50.198 America will be made in Jackson, Tennessee. 18:50.198 --> 18:52.198 Yeah, I haven't seen any of that. 18:52.198 --> 18:54.198 And I follow stuff pretty quickly. 18:54.198 --> 18:56.198 And we're still three years running. 18:56.198 --> 18:57.198 Yeah. 18:57.198 --> 18:59.198 Number one in automotive manufacturing in the nation 18:59.198 --> 19:00.198 right here in Tennessee. 19:00.198 --> 19:01.198 You talk about programs. 19:01.198 --> 19:03.198 You talk about, you know, the state working and the schools 19:03.198 --> 19:04.198 working. 19:04.198 --> 19:07.064 You must have some Republican revenue in the house. 19:07.064 --> 19:09.931 There's some people very conservative who really 19:09.931 --> 19:13.598 basically view any government program as bad. 19:13.598 --> 19:16.031 So you're speaking here as majority leader and saying this 19:16.031 --> 19:17.031 is a good program. 19:17.031 --> 19:19.031 This is where the state should be involved. 19:19.031 --> 19:21.031 This is where we're working with business. 19:21.031 --> 19:22.031 But you must have some folks. 19:22.031 --> 19:24.031 I mean all Republicans are not the same. 19:24.031 --> 19:26.031 All Conservatives are not the same. 19:26.031 --> 19:28.031 There are different interpretations. 19:28.031 --> 19:29.031 And when you've got.. 19:29.031 --> 19:31.031 You know I've met them up there. 19:31.031 --> 19:33.031 People who just think everything government does is bad. 19:33.031 --> 19:34.031 Except their job. [laughter] 19:34.031 --> 19:35.031 And their perdiem. 19:35.031 --> 19:36.031 That's right. 19:36.031 --> 19:37.031 How do you manage that? 19:37.031 --> 19:39.031 Because it's not a ubiquitous group. 19:39.031 --> 19:40.031 Right. 19:40.031 --> 19:42.031 It's more of an art than a science. 19:42.031 --> 19:46.098 I try to listen a lot and respect positions like those 19:46.098 --> 19:47.098 differing opinions. 19:47.098 --> 19:50.131 And I think as a result, we tend to end up with a better work 19:50.131 --> 19:53.631 product in the final analysis. 19:53.631 --> 19:59.998 But by and large with a few percentage degrees of 19:59.998 --> 20:02.698 difference, we are all pulling in the same direction. 20:02.698 --> 20:06.364 I mean we are number one in the Southeast for job creation, 20:06.364 --> 20:07.364 the state of Tennessee. 20:07.364 --> 20:11.498 We have the lowest per capita debt of any state in the nation. 20:11.498 --> 20:15.264 Ther's a lot that is hard to argue with that kind of success. 20:15.264 --> 20:18.298 So you haven't felt pressure or undo pressure from, 20:18.298 --> 20:19.298 say, a tea party wing? 20:19.298 --> 20:21.298 I mean the media loves to say that. 20:21.298 --> 20:23.298 Tea Party's pushing Republicans farther to the right and farther 20:23.298 --> 20:24.298 to the right. 20:24.298 --> 20:26.431 No, I've found some misperceptions. 20:26.431 --> 20:28.864 I've found some lack of information and lack of 20:28.864 --> 20:31.264 understanding sometimes from different sectors where they 20:31.264 --> 20:34.931 don't know, perhaps we haven't communicated effectively enough 20:34.931 --> 20:37.831 all the good things that are happening become a success 20:37.831 --> 20:39.598 that's hard to argue with. 20:39.598 --> 20:42.331 We've reduced the size of government every year in the 20:42.331 --> 20:43.431 last three years. 20:43.431 --> 20:50.498 We've cut taxes -- not only the taxes on food but the death tax 20:50.498 --> 20:53.098 is being phased out by 2016. 20:53.098 --> 20:55.364 We repealed the gift tax. 20:55.364 --> 20:58.898 Really, you know, hundreds of millions of dollars in tax cuts. 20:58.898 --> 21:01.631 All the things that the most conservative among us.. 21:01.631 --> 21:04.364 In other words, workers comp was a big priority. 21:04.364 --> 21:06.798 The reform or whatever you think about it. 21:06.798 --> 21:10.431 But it was meant to be business friendly and recruit people in 21:10.431 --> 21:11.664 and reduce the complications. 21:11.664 --> 21:12.864 We've gone 20 minutes. 21:12.864 --> 21:14.864 We've barely talked about the schools. 21:14.864 --> 21:17.398 It is your signature legislation for better or worse. 21:17.398 --> 21:19.764 I think you would say for better. 21:19.764 --> 21:21.764 Are you happy with, satisfied with? 21:21.764 --> 21:24.964 What is your take on the state of kind of the deconsolidation 21:24.964 --> 21:28.364 of the schools and the evolution of where we were and where we 21:28.364 --> 21:29.364 are. 21:29.364 --> 21:32.398 I'm happy that the municipalities are moving 21:32.398 --> 21:34.998 forward with neighborhood schools. 21:34.998 --> 21:38.998 It's what their citizens and parents of these children wanted 21:38.998 --> 21:39.998 all along. 21:39.998 --> 21:42.998 I think that the education that's closer to the kids and 21:42.998 --> 21:44.998 their families is gonna be better for education. 21:44.998 --> 21:50.531 It's frustrating, sure, that it took three years instead of one 21:50.531 --> 21:55.131 or two as originally outlined in our legislation to accomplish/ 21:55.131 --> 21:58.231 But I think we're all gonna come out better for it in the final 21:58.231 --> 21:59.231 analysis. 21:59.231 --> 22:01.231 And I find very few people who disagree with that. 22:01.231 --> 22:05.631 There's been a sort of a, you know, 22:05.631 --> 22:09.231 a metamorphosis if you will of what used to be the city of 22:09.231 --> 22:10.231 Memphis schools. 22:10.231 --> 22:13.464 We're not ending up with just the inverse of what we had 22:13.464 --> 22:16.498 before because what was Memphis City Schools had a lot of 22:16.498 --> 22:19.031 difficulties that have now been purged if you will. 22:19.031 --> 22:21.798 And you know because we've talked about it a lot. 22:21.798 --> 22:24.564 And sometimes, you know, viewers get frustrated when we talk 22:24.564 --> 22:25.964 about the schools so much. 22:25.964 --> 22:28.198 But it's just hundreds of millions of dollars. 22:28.198 --> 22:29.564 It's sort of the future. 22:29.564 --> 22:31.564 It's an economic development issue. 22:31.564 --> 22:32.664 It's a recruitment issue. 22:32.664 --> 22:34.064 It's a population shift issue. 22:34.064 --> 22:36.798 So, it's just been, you know, a tremendous story with all these 22:36.798 --> 22:37.798 different angles. 22:37.798 --> 22:41.264 And I do hear people say -- Well we're just back to where we 22:41.264 --> 22:43.264 were, suburban schools and city schools. 22:43.264 --> 22:45.698 But it's really not that because on so many levels, 22:45.698 --> 22:47.931 it is five or six different suburbam schools. 22:47.931 --> 22:50.131 And Millington is a very different place than 22:50.131 --> 22:51.131 Collierville. 22:51.131 --> 22:53.131 Different income levels and different residents and 22:53.131 --> 22:54.131 different economic base. 22:54.131 --> 22:56.131 The city school system has been.. 22:56.131 --> 22:58.764 I think most people who will calm down and kind of look at it 22:58.764 --> 23:00.764 say it's been pretty transformed. 23:00.764 --> 23:03.464 You got the state A-S-D running the worst schools and making 23:03.464 --> 23:04.464 some head way. 23:04.464 --> 23:08.631 The city has put in this new innovatino zone type district 23:08.631 --> 23:10.631 within a district thats making some head way. 23:10.631 --> 23:11.631 And all these charter schools.. 23:11.631 --> 23:12.631 I mean I've said it. 23:12.631 --> 23:14.631 I guess I'm editorializing for a second. 23:14.631 --> 23:16.631 Are gonna change the face for better and worse. 23:16.631 --> 23:17.631 Not all are gonna work out. 23:17.631 --> 23:19.698 But over the next five, ten years, 23:19.698 --> 23:20.931 it's a whole different deal. 23:20.931 --> 23:23.098 There's a whole lot more flexibility. 23:23.098 --> 23:27.664 The schools, the delivery system I think as a result will be, 23:27.664 --> 23:31.664 for lack of a better term, more nimble in it's ability to meet 23:31.664 --> 23:35.231 the particularized needs to the students they're teaching. 23:35.231 --> 23:38.331 We learned the hard way that one size doesn't fit all. 23:38.331 --> 23:41.631 And that's really all we advocated for the last ten or 15 23:41.631 --> 23:45.631 years is we needed the freedom to be able to individualize 23:45.631 --> 23:49.298 teaching to get to kids where they need it most and in the 23:49.298 --> 23:51.298 ways that they understand and will advance. 23:51.298 --> 23:53.398 And we're now seeing, you know, Tennessee is in the lead right 23:53.398 --> 24:01.031 now nationwide in advancement in test scores. 24:01.031 --> 24:03.031 And we're really making great strides. 24:03.031 --> 24:05.031 But there's a lot more work to do. 24:05.031 --> 24:07.031 If you talk to Chris Barbeck and folks at the Achievement School 24:07.031 --> 24:09.031 District, they'll tell you that right now, 24:09.031 --> 24:11.031 Memphis Tennessee is known as teacher town. 24:11.031 --> 24:13.031 This is the place that teachers want to be. 24:13.031 --> 24:15.031 Memphis Teacher Residency Program is moving it to 24:15.031 --> 24:16.031 Crosstown. 24:16.031 --> 24:18.031 And that's another thing that, you know, 24:18.031 --> 24:20.031 there was so much going on with schools and education reform 24:20.031 --> 24:22.031 that, you know, everyone would say -- Well thats Norris Todd, 24:22.031 --> 24:23.031 the bill that you authored. 24:23.031 --> 24:25.031 But actually, there were all these parallel issues of 24:25.031 --> 24:28.498 changing, you know, the way tenure and seniority and the 24:28.498 --> 24:29.498 negotiating. 24:29.498 --> 24:31.498 Again, teachers unions don't like it. 24:31.498 --> 24:34.498 I won't take a stand on that but it was a radical change that 24:34.498 --> 24:37.464 sort of got missed, the change in the way teachers would be 24:37.464 --> 24:40.898 paid, signed, negotiate contracts had nothing to do with 24:40.898 --> 24:41.898 Norris Todd. 24:41.898 --> 24:43.898 It just happened at the same time. 24:43.898 --> 24:44.898 That's right. 24:44.898 --> 24:45.898 And we needed to move up. 24:45.898 --> 24:47.898 I mean we're going from almost at the bottom of the pile 24:47.898 --> 24:48.898 nationwide. 24:48.898 --> 24:49.898 We're now moving on up. 24:49.898 --> 24:51.231 And that's what we need to do. 24:51.231 --> 24:53.231 And we've got a lot further to go. 24:53.231 --> 24:55.231 We got just a minute and a half left. 24:55.231 --> 24:56.898 You -- Annexation moritorium. 24:56.898 --> 24:58.198 You chair that commission. 24:58.198 --> 25:00.698 I think you guys just recently came out and said let's keep 25:00.698 --> 25:02.698 that moritorium in place for another year. 25:02.698 --> 25:06.464 It's all part of the old public chapter 1101 and the growth 25:06.464 --> 25:07.464 planning act. 25:07.464 --> 25:10.631 And now whether the general assembly agrees with that or 25:10.631 --> 25:13.698 whether they forge ahead to amend the law to allow everybody 25:13.698 --> 25:17.798 to vote on annexation rather than annexation by ordinance. 25:17.798 --> 25:19.798 I mean there are a lot of us who favor that. 25:19.798 --> 25:20.798 Favor which? 25:20.798 --> 25:22.698 Favor the right to vote. 25:22.698 --> 25:23.698 I'm one of them. 25:23.698 --> 25:25.831 But as chairman of the advisory commission, 25:25.831 --> 25:29.098 I also realize that their collateral issues and 25:29.098 --> 25:32.164 ramifications that go along with that with the city's been 25:32.164 --> 25:34.931 counting on it's right to expand in an urban growth area and all 25:34.931 --> 25:36.931 of a sudden, the general assembly takes it away. 25:36.931 --> 25:41.198 What if any affect does that have on the city's growth plan, 25:41.198 --> 25:42.198 you know? 25:42.198 --> 25:43.198 Just a couple more. 25:43.198 --> 25:44.198 Just 30 seconds here. 25:44.198 --> 25:46.198 Guns, guns in bars, guns in restaurants. 25:46.198 --> 25:48.198 Where else are we putting or not putting guns in the next 25:48.198 --> 25:49.198 session? 25:49.198 --> 25:50.198 Any ideas? 25:50.198 --> 25:52.998 I think we keep them where ever folks have the right to keep and 25:52.998 --> 25:53.998 bear them. 25:53.998 --> 25:55.998 But are there any new places that are gonna be allowed? 25:55.998 --> 25:59.764 Somebody will file legislation about it because they always do. 25:59.764 --> 26:02.164 But the second amendment will be upheld, 26:02.164 --> 26:03.198 I assure you. 26:03.198 --> 26:04.198 And any..? 26:04.198 --> 26:06.198 Lasy year there was some big funding I think you were very 26:06.198 --> 26:09.798 proud of for the medical school here at UT and for the 26:09.798 --> 26:10.898 University of Memphis. 26:10.898 --> 26:12.398 Anything more on that front? 26:12.398 --> 26:15.531 No, we continue to work on higher ed though and stay tuned. 26:15.531 --> 26:16.531 Have me back and I'll tell you. 26:16.531 --> 26:17.531 We will. 26:17.531 --> 26:18.531 Thanks for joining us. 26:18.531 --> 26:19.598 Thank you for joining us. 26:19.598 --> 26:20.764 Join us again next week. 26:20.764 --> 26:21.998 Goodnight. 26:21.998 --> 26:27.998 CLOSED CAPTIONING PROVIDED BY WKNO - MEMPHIS.