Thursday, April 24, 2014

Tennessee money problems
Tennessee prides itself in having low taxes, no income tax etc. But the lack of revenue also creates problems. The Volunteer state prides itself on building roads with revenue not borrowing money for construction The federal Highway Trust Fund is nearly bankrupt so Tennessee is looking for new ways to raise money for roads. Tennessee Department of Transportation Commissioner John Schroer says the fuel tax is outmoded because cars are getting better mileage and the state is collecting fewer tax dollars. He is arguing for a usage fee for each vehicle based on how many miles are traveled And how much the vehicle weighs While cars do little damage commercial rigs cause cause lots of damage . Half of the state’s transportation budget is funded by money from the Highway Trust Fund, and it’s nearly out of money so Tennessee is facing a bleak future for road projects. Schroer says other states make transportation a priority and provide more state dollars for roads. The federal tax on gasoline is 18.4 cents per gallon, the same rate since 1993. The diesel tax is 24.4 cents per gallon. Tennessee has a 21.4 cents-per-gallon tax on gasoline and a tax of 18.4 cents-per-gallon on diesel fuel, much lower than the national average. At the same time state auditors report numerous problems with the state's unemployment system. An audit found at least $181 million in jobless benefits were improperly paid out. But this year's version found that the amount had ballooned to $181 million. To those in jail, who have died, or are employed. At the same time, people with legitimate claims to unemployment, have to deal with a phone system that is overloaded. Only about 15 percent of callers get through to state offices and that is on average after nearly an hour of waiting. State officials say the issue is technological ……a 43-year-old computer system.


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