Oak Ridge Today

Fleischmann, DesJarlais, Duncan vote ‘no’ on bill to reopen government, raise debt limit

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Barack Obama and House Democratic Leaders

President Barack Obama meets with House Minority Leader Nancy Pelosi and other members of the House Democratic leadership in the Oval Office on Oct. 15. (Official White House photo by Pete Souza)

The epic budget battle that resulted in the first U.S. government shutdown in 17 years and led the nation to the brink of default again ended late Wednesday.

President Barack Obama signed the legislation reopening the federal government and raising the debt ceiling early Thursday morning, a few hours after it passed the House and Senate, and federal workers were told to report to work Thursday, ending a 16-day shutdown.

“We’ll begin reopening our government immediately,” Obama said in remarks before the House passed the bill. “And we can begin to lift this cloud of uncertainty and unease from our businesses and from the American people.”

Officials at the U.S. Department of Energy and National Nuclear Security Administration weren’t immediately available to comment early Thursday morning on the impact on federal facilities in Oak Ridge, where workers have been preparing for shutdowns and furloughs, including at Oak Ridge National Laboratory and Y-12 National Security Complex.

U.S. Representative Chuck Fleischmann

Chuck Fleischmann

Senators Lamar Alexander and Bob Corker, both Tennessee Republicans, voted for the last-minute, short-term agreement, which keeps the government open through Jan. 15 and raises the federal government’s debt ceiling through Feb. 7.

Tennessee’s two Democratic representatives also voted for it, while all seven Republican representatives—including East Tennessee congressmen Chuck Fleischmann, John J. Duncan Jr., and Scott DesJarlais—voted against it. [Read more…]

Council gives schools $250,000, school shutdown avoided

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Bruce Borchers and Mark Watson

During a special meeting Tuesday, Oak Ridge municipal officials agreed to give the city school system an extra $250,000 to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 school shutdown. Pictured above are Oak Ridge Schools Superintendent Bruce Borchers, left, and City Manager Mark Watson, who recommended the extra funding on Tuesday. (File photo)

In a short special meeting Tuesday, the Oak Ridge City Council agreed to give the city’s schools $250,000 to allow the system to avoid a potential loss of millions of dollars in state funding and avert a possible Oct. 1 shutdown.

The one-time transfer will come from higher-than-expected sales tax revenues in Roane County.

The vote was 4-1-1. Oak Ridge Mayor Tom Beehan, Mayor Pro Tem Jane Miller, and Council members Chuck Hope and Charlie Hensley voted in favor of the extra funding, which had been recommended by City Manager Mark Watson. [Read more…]

Guest column: Council member proposes alternatives to raising water, sewer rates

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Trina Baughn

Trina Baughn

On Sept. 9, your Oak Ridge City Council will likely vote to approve additional water and sewer rate increases. When combined with the last two increases, the average user’s bill will have spiked 62 percent in just 34 months. Subsequently, should council adopt the fully proposed schedule through 2019, most residents and businesses will be paying double what they were paying prior to the initial increase imposed in May 2012.

These increases are to pay for the $33 million of debt that the city incurred in the last two years in addition to a projected $15 million more that Public Works says is still needed. We are continuing to borrow without limits and without regard for your ability to pay such astronomical bills.

Much of this debt could have been reduced or avoided all together had your city government taken the U.S. Environmental Protection Agency up on the many opportunities they gave us to make corrections. (See my Feb. 24 post at trinabaughn.com entitled, “The Rest of the EPA Mandate Story.”) Unfortunately, we’ve screwed up so many times that we were too fearful to pursue leniencies that are now being afforded to many cities across the nation. So, while others have 20-25 years to comply and can spread out costs to minimize the hit their ratepayers will take, Oak Ridge has just five years and is forcing the entire burden on its residents and businesses. [Read more…]

Baughn request: Sell golf course, Chamber property; request payments from tax-exempt organizations

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Trina Baughn

Trina Baughn

Note: This story was updated at 11:38 p.m.

Oak Ridge City Council member Trina Baughn has proposed that the city sell Centennial Golf Course, and terminate the lease agreement with the Chamber of Commerce and sell the property.

Those proposals would convert city-owned assets into taxable properties, Baughn said.

Baughn has also asked the seven-member Council to consider setting up a team that could negotiate voluntary payment-in-lieu-of-taxes agreements with tax-exempt organizations that “are most able to afford paying for city services that are currently paid for by the taxpayer.” Those organizations could include Methodist Medical Center of Oak Ridge, Oak Ridge Utility District, Tech 2020, Roane State Community College, and the University of Tennessee, Baughn said in a May 5 e-mail to Oak Ridge City Manager Mark Watson and City Clerk Diana Stanley. [Read more…]

Guest column: Strategizing a path to prosperity

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Trina Baughn

Trina Baughn

The problem

This month, the Oak Ridge City Council will establish your property tax rate for 2014 via the approval of our annual city budget. And though it appears that taxes will remain flat, our excessive spending levels are unsustainable and continue to hinder our ability to compete with surrounding communities.

In spite of all the new developments happening as of late, if council approves the budget as proposed, residents and businesses will continue to feel the financial crunch for quite some time. Not only will we retain one of the highest property tax rates in the state, but we’ll also retain one of the largest per capita debt levels in the region. (At nearly $7,000 per person, we have more than four times that of Knox County residents and more than seven times that of Knoxville residents). A dozen more chicken places and grocery store relocations won’t make a dent in the average Oak Ridger’s bills.

If we are to make any kind of progress, we need a strategy that aims to increase revenue while reducing expenditures. This column will focus on increasing our revenue base. I will address budgetary inefficiencies and waste in a follow-up piece next week. [Read more…]

Possible TVA sale a bad idea, president’s budget fails on entitlements, Republican lawmakers say

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U.S. Senator Lamar Alexander

Lamar Alexander

U.S. Senator Bob Corker

Bob Corker

Republican lawmakers from Tennessee were critical of the budget proposal released by President Barack Obama on Wednesday, saying it was overdue and failed to responsibly address unsustainable spending on entitlement programs.

In a statement, U.S. Sen. Lamar Alexander said a proposal to consider selling the Tennessee Valley Authority could cost taxpayers money.

“This is one more bad idea in a budget full of bad ideas,” Alexander said. “There is today no federal taxpayer subsidy for TVA, period. There is by law no federal taxpayer liability for TVA debt. And after deducting its debt, selling TVA would probably cost taxpayers money.” [Read more…]

Guest column: The City Council should negotiate with EPA

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At its next meeting, the Oak Ridge City Council will consider whether to attempt to negotiate a better deal with the U.S. Environmental Protection Agency on the sewer upgrades or not.

About three and a half years ago, the EPA inspected the Oak Ridge sewer system and noted excessive rain water leaking into that system during storms. In April 2010, EPA sent the city a show cause letter which requested a face-to-face meeting to “show cause” why EPA should not intervene. Instead of meeting with EPA, the Council chose to phone in an informal response. Subsequently, EPA imposed a 20-page administrative order filled with expensive add-on requirements and a $170,000 civil penalty.

The total cost of the sewer improvements is in the neighborhood of $50 million. Paying for these improvements has so far required two major utility rate increases and a major increase in city debt. More rate hikes are likely.

[Read more…]

Letter: Asks City Council to create budget advisory board

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To the Editor:

Our city has over $168 million dollars in debt—that is a 168 with six zeroes after it.

We, as the citizens of Oak Ridge, owe this debt. The number sounds huge. But the size of this debt is actually not unbearable. It is like a mortgage, we just have to pay a little bit each year—and we can afford to.

But there is a key difference between this debt and a mortgage: With a mortgage, you pay off a little bit each year, and then you are done. Unfortunately, the city of Oak Ridge is not paying down its aggregate debt each year. Instead, the city is borrowing more money each year, just making the debt larger and larger.

[Read more…]

Alexander: President failed to lead on spending cuts; ORNL, UPF should be shielded

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U.S. Senator Lamar Alexander

Lamar Alexander

U.S. Senator Bob Corker

Bob Corker

U.S. Sen. Lamar Alexander on Thursday said the automatic federal spending cuts going into effect today demonstrate a failure of presidential leadership.

The senator also said he would like to minimize the impact of the cuts on important government institutions such as the Oak Ridge National Laboratory, student loans, and the proposed Uranium Processing Facility at the Y-12 Security Complex.

Congress and the White House approved the automatic, across-the-board cuts in discretionary and defense spending— known as sequestration—about 18 months ago in the Budget Control Act of 2011. Considered unpalatable by many, the cuts were meant to encourage Democrats and Republicans to compromise on deficit reduction efforts.

That hasn’t worked.

[Read more…]

Council approves $18 million in borrowing for sewer system repairs

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Trina Baughn

Trina Baughn

After more than an hour of discussion, the Oak Ridge City Council on Monday approved the borrowing of $18 million in low-interest state loans to help pay for a $23 million project to fix the municipal sewer system.

Council voted 6-1 to borrow the money at a 1.23 percent interest rate through the State Revolving Fund program, which is administered by the Tennessee Department of Environment and Conservation.

The work is being done to comply with a U.S. Environmental Protection Agency order that requires Oak Ridge to repair all sewer system overflows by Sept. 28, 2015.

[Read more…]

Alexander supports balanced budget amendment to U.S. Constitution

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U.S. Senator Lamar Alexander

U.S. Sen. Lamar Alexander

U.S. Sen. Lamar Alexander on Wednesday announced he will be an original cosponsor of a balanced budget amendment to the U.S. Constitution.

“For eight years as governor, I balanced Tennessee’s budget, and other states balance their budgets—I don’t see why Washington can’t do the same,” said Alexander, a Tennessee Republican.

The second-term senator said the federal government is borrowing 42 cents of every dollar it spends, and that’s money the country dosen’t have.

[Read more…]

Alexander, Fleischmann release statements on State of the Union

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U.S. Senator Lamar Alexander

U.S. Sen. Lamar Alexander

U.S. Representative Chuck Fleischmann

U.S. Rep. Chuck Fleischmann

In his State of the Union speech on Tuesday, President Barack Obama called for raising the minimum wage, doing more to fight global warming, and reducing the deficit through spending cuts and tax increases.

The president also called for voting on new gun laws, reforming Medicare and the tax code, and working with states to make high-quality preschool available to every child.

[Read more…]