Summer classes at UT could come to an end as lawmakers in Nashville have

two weeks to pass a budget that currently lacks funding, now that the

proposed state income tax will not be put to a vote.

Tennessee is facing a government shutdown if Gov. Don Sundquist, the House

and the Senate do not pass a budget by midnight, June 30.

UT President Wade Gilley fears there will be no other course of action but

to suspend all university activities if a shutdown does indeed

happen.

Gilley met with Phil Scheurer, vice-provost for operations, Thursday

afternoon to devise a plan of action just in case.

“All money and aid would be cut off from our faculty, staff, and students,”

Gilley said Thursday morning.

A plan should be firm by Monday morning.

The income tax deal had been approved Monday by the House and Senate

Conference Committee, but fell through in large part because of the

overwhelming protest from the citizen population.

Tim Burchett, R-Knoxville, opposed the tax because he believes it to be

“unconstitutional.”

Without the tax increase, the proposed budget would be $300 million short,

possibly affecting the amount of funding UT gets from the state.

Legislators must now start anew with a budget plan as July 1, the official

start of the fiscal year, is looming.

The decision came down surprisingly since the Senate had enough votes as of

Tuesday. Votes in the House wavered through the day, however, by afternoon

it was clear an official vote would not be taking place.

Sen. Bob Rochelle, who lobbied for an income tax for years, resigned from

the budget conference committee, citing a disillusionment with the whole

process.

“I cannot participate in actions that are hurtful to citizens of this

state, the children of this state and those citizens to come,” Rochelle

said.

It now appears Tennessee citizens, including students, will have to wait a

while for a budget to be approved.

An income tax had not been an issue when the House and the Senate

respectively did not include it in their committee-approved budgets. The

Senate budget had allotted more money for higher education and compared to

the Senate budget, the House budget cut another $50 million.

Gilley had acknowledged previously in the week he was pleased with the

funding increase, along with the staff and faculty increases allotted for

in the Senate’s budget.

He pointed out that his main concern, whether there was an income tax deal

or not, was UT.

“The University has not advocated any new taxes,” Gilley said. “Instead, we

have been focused on making a case for UT.”

Students must now adopt a wait-and-see policy as the budget is reworked

without the particular income tax.

During Wednesday’s session, legislators discussed using tobacco lawsuit

settlements to supplement the budget. There was also talk of using other

taxes, like a $200 million gross receipts tax.

Even if the General Assembly could agree on a fiscal plan, Gov. Sundquist

has ultimate veto power, which he assured legislators he will use if it is

a “patchwork” budget without any tax reform.

If there is a state government shutdown June 30 at midnight, hospitals,

prisons, and state universities could all suffer.

The full impact on UT is not immediately known, but like the rest of the

state universities, it is certainly not immune.

Attorney General Paul G. Summers warned the senate floor on Tuesday that

all summer classes would come to an abrupt end.

UT staff and students can breathe one small sigh of relief. On Wednesday,

Senators in the House-Senate Conference Committee voted to continue to

support the initial budget approved on June 7 by the Senate Finance

Committee that increased funding.

“I still avidly support any and all help for the University,” said

Burchett. “I have a high commitment to the university.”

Burchett feels that the university has been ignored.

“All the money that should be going to higher education has been going to

TennCare,” Burchett said.

The matter of paying for the funding is still up in the air. However, if

proceedings by the General Assembly take longer than July 1, nothing will

seem to avoid the cancellation of summer classes. The repercussions of

cancellation would not just affect students currently enrolled in this

term.

“Certainly the disruptions would carry over into the Fall term,” Gilley

said. “Planning would be severely affected and students would not be able

to enroll.”