THURSDAY, MAY 10, 2012 Tennessee to cut grocery sales tax on July 1 (Chattanooga Times FreePress/Sher)

A quarter-penny reduction in Tennessees state sales tax on groceries goes into effect July 1, state Revenue Department officials are reminding businesses. The cut, enacted by the General Assembly last month, trims the current sales tax from 5.5 percent to 5.25 percent. That comes to an average saving per person of about $3.40 a year. The bill was formally sent today to Republican Gov. Bill Haslam, who proposed the reduction and is expected to sign it. The state is giving up $22 million in revenue through the move. Haslam intends to come back with another quarter cent reduction next year which take the rate to 5 percent on food. Local sales taxes, which can be as high as 2.75 percent are not affected. http://www.timesfreepress.com/news/2012/may/09/tennessee-cut-grocery-sales-tax-july-1/?local

Haslam offers $15K reward in missing sisters case (Associated Press)

Governor Bill Haslam has issued a $15,000 reward for information leading to an arrest in the case of a man suspected of killing a Tennessee woman and her teenage daughter and fleeing with her two younger girls. Heavily-armed FBI agents and authorities from Mississippi and Tennessee continued to search W ednesday for 35-year-old Adam Mayes. The bodies of 31-year-old Jo Ann Bain and 14-year-old Adrienne Bain were found last week behind the mobile home in northern Mississippi where Mayes lived. The FBI said Tuesday that authorities were hopeful the two young girls 12-year-old Alexandria Bain and 8-year-old Kyliyah Bain were still alive. Investigators believed the two youngest daughters were still with Mayes. Haslams reward is in addition to $50,000 offered by the FBI and U.S. Marshals Service and $6,000 from the Tennessee Bureau of Investigation. http://www.theleafchronicle.com/article/20120509/NEWS01/305090025/Haslam-offers-15K-reward-missingsisters-case

Haslam Offers $15K Reward for Kidnapping Info (TN Report)

Tennessee Gov. Bill Haslam today announced a reward for information in the Bain Family kidnapping case out of Hardeman County, Tenn. Haslam is offering $15,000 for information leading to the apprehension, arrest and conviction or the person or persons who have committed, attempted to commit or conspired to commit the kidnapping of JoAnn Bain and her three children Kyliyah, Alexandria and Adrienne Bain. In addition, should another party issue a reward for information leading to a conviction; the state will match the reward up to $5,000. Twenty-Fifth Judicial District Attorney General Mike Dunavant made the reward request. It is my sincerest hope that this reward will lead to new information that brings those responsible for this crime to justice, Haslam said. JoAnn, 31, and her daughters were reported missing from their Whiteville, Tenn. home on April 27, 2012. http://tnreport.com/blog/2012/05/09/haslam-offers-15k-reward-for-kidnapping-info/

Governor offers additional reward for capture of Adam Mayes (Herald-Courier)

This morning Tennessee Governor Bill Haslam issued a $15,000 reward for information leading to an arrest in the case of a man suspected of killing a Tennessee woman and her teenage daughter and fleeing with her two younger girls. Kidnapping suspect Adam Mayes was caught by a convenience store security camera just three days after Jo Ann Bain and her three daughters were last seen. The bodies of 31-year-old Jo Ann Bain and 14year-old Adrienne Bain were found last week behind the mobile home in northern Mississippi where Mayes lived. FBI agents say they're hopeful the two young girls - 12-year-old Alexandria Bain and 8-year-old Kyliyah Bain were still alive. Investigators believe they're still with Mayes. Haslam's reward is in addition to $50,000 offered by the FBI and U.S. Marshals service and $6,000 from the Tennessee Bureau of Investigation.

http://www2.tricities.com/news/2012/may/09/governor-offers-additional-reward-capture-adam-may-ar-1903127/

Haslam to sign No Child Left Behind waiver (WBIR-TV Knoxville)

Thursday, Governor Bill Haslam will sign a bill into law that gives Tennessee schools a way around the No Child Left Behind rules. President Obama granted 10 waivers to a total of ten states, including Tennessee. No Child Left Behind set benchmarks for schools to become completely proficient in reading and math by 2014. Governor Haslam says the law had good intentions, but it set the bar too high too quickly. http://www.wbir.com/news/article/219456/2/Haslam-to-sign-No-Child-Left-Behind-waiver

Haslam signs bills toughening standards for unemployment benefits (TN/W ilson)
Three measures tightening eligibility standards for people to receive state unemployment benefits was signed into law by Gov. Bill Haslam W ednesday. The series of bills, centered around a bill called the Unemployment Insurance Accountability Act, makes it more difficult for individuals fired with cause to receive benefits. It also requires unemployment recipients to apply for at least three jobs every week or go to a local career center and then submit detailed information to verify these applications. The systems changes will greatly benefit small businesses, and ensure that the trust fund financing unemployment benefits will remain solvent, said the legislations main proponent, Lt. Gov. Ron Ramsey, R-Blountville. It will protect the integrity of the process yet at the same time make sure that those who truly need the benefits are really getting the benefits, he said before the signing. http://www.tennessean.com/article/20120509/NEWS0201/305090163/Gov-Bill-Haslam-signs-bills-tougheningstandards-receiving-unemployment-benefits?odyssey=nav%7Chead

Haslam Signs Off On Unemployment Benefits Overhaul (WPLN-Radio Nashville)

Governor Bill Haslam has signed off on an overhaul to jobless benefits in Tennessee. The package tamps down on possible abuses from people collecting unemployment. The new law wants to make sure people getting unemployment checks arent passing up chances for a new job. It will require them to prove theyre looking for work each week, while auditing thousands of claimants a month Jim Brown is state director for the National Federation of Independent Business. Brown says it will eventually help lower the tax employers pay into the states jobless fund. Its not an instant fix, but over time youre going to see small business owners have some relief, and theyre going to hire more. The measure would also kick people off unemployment if they lose a chance to get hired by failing a drug test, or refusing to take one. http://wpln.org/?p=37085

Haslam signs bill allowing local referendums on municipal schools (CA/Locker)

Gov. Bill Haslam has signed into law the bill paving the way for Shelby County suburban cities to hold referendums this year on creating new municipal school districts. House Bill 1105 also allows the cities to hold school board elections for the new school systems if voters approve them in the referendums, which are likely to be scheduled on Aug. 2, the day of the statewide primary election and local general elections. The bill does not advance lifting the statewide ban on new municipal school districts in Shelby County; that occurs in August 2013 when the merger of the Memphis City and Shelby County school systems becomes final. It does, however, allow the suburban cities to take steps toward the creation of their own school systems prior to lifting the ban moves that were blocked by a state attorney general's opinion in early April that concluded state law prohibited any movement toward their creation until the ban is actually lifted. http://www.commercialappeal.com/news/2012/may/09/haslam-signs-bill-allowing-local-referendums-munic/? CID=happeningnow (SUBSCRIPTION)

Haslam's First (Potential) Veto (Metro Pulse)

The Family Action of Tennessee group, headed by former state Sen. David Fowler, is continuing to ask its members to write, call, and e-mail Gov. Bill Haslam, asking him not to follow through on his plan to veto an antiVanderbilt University piece of legislation as he has promised. Since the Legislature is no longer in session, a veto kills the bill and it cannot be overridden. The conservative group objects to Vanderbilts policy of requiring all organizations on campus to allow all comers to join and participate. They claim Vanderbilt objects to Christian ministries on campus having a policy that only Christians can serve in leadership positions. The conservatives in 2

the Legislature agreed and passed legislation, based on the private universitys hospital receiving state funds for the poor and indigent. Some legislators are not upset by Haslams veto and believe passing the bill was enough a shot across the bowand that Vanderbilt might review the policy before next years session. http://www.metropulse.com/news/2012/may/09/haslams-first-potential-veto/

States first lady praises young readers (Johnson City Press)

For the past year Tennessee first lady Crissy Haslam has been traveling to 10 elementary schools across the state to encourage third-graders to read more. On Wednesday, she made a final visit to Happy Valley Elementary School to remind the students to keep reading during the summer. Her visits to elementary schools during the past year have been in support of the Read 20 campaign, that encourages children to read 20 minutes per day on their own. Haslams focus has been on third-graders because of the need to become proficient readers before going on to the science and other higher grade courses that require the students to read at an adequate level. In 2011, only 44 percent of third-graders scored proficient or above in reading. The state Department of Education has set a goal for 60 percent of all third-graders to read at a proficient level or above by 2014. Haslam was very impressed by one reading feat the Happy Valley boys and girls had accomplished. They proudly claimed they had read 51,0000 books this year. http://www.johnsoncitypress.com/News/article.php? id=100206#ixzz1uSon7HZy

Tenn. First Lady visits 3rd graders at HVES (Elizabethton Star)

With the school year coming to a close for students in Carter County, the 3rd grade class at Happy Valley Elementary School received a special visitor to congratulate them for reading over 50,000 books this year. Tennessee First Lady Crissy Haslam paid a visit to the school Wednesday afternoon to speak to the students and to read a portion of one of her favorite childrens books. Earlier in the year, Haslam traveled to Carter County to speak with teachers, students and parents. Before the start of a schoolwide assembly on her first visit, the First Lady of Tennessee joined parents and teachers for a luncheon and a question-and-answer session on the current state of education in Tennessee. In May of 2011, Haslam announced that she would be developing a partnership with several schools in Tennessee to focus on improving literacy and reading comprehension levels. The Read 20 program that Haslam has sponsored this year encourages students to read a book for at least 20 minutes every day. http://www.starhq.com/2012/05/09/tenn-first-lady-visits-3rd-graders-at-hves/

Tennessee hopes to lure more movie productions with incentive changes (MBJ)
The Tennessee Film Entertainment and Music Commission is anticipating an extra $2 million for the states film incentive program thanks to changes in the film funding grant formula. The changes were made to foster a friendlier environment for local film productions. They include an incentive for projects with budgets over $200,000 that will allow filmmakers to receive grants for up to 25 percent of the money the productions spend in Tennessee. A previous grant system awarded grants of 17 percent and tax credits of 15 percent to projects with budgets of $1 million or more. The changes also streamline the process of incentives for film projects, making the TFEMC a one-stop shop for those incentives, Mark Norris, R-Collierville, said in a statement. Norris sponsored the repeal of the original refundable tax credit W e recognize the importance of the film industry not only to the economy of the state but to the welfare of countless Tennesseans whose livelihoods depend on it, Norris said. http://www.bizjournals.com/memphis/news/2012/05/09/tennessee-hopes-to-lure-more-movie.html

Big Rock man charged with TennCare 'doctor shopping' (Leaf Chronicle)
A Stewart County man is charged in Montgomery County with TennCare fraud involving doctor shopping, or going to multiple doctors in a short time-frame to obtain prescription drugs. The Office of Inspector General, with assistance from the Montgomery County Sheriffs Office, announced the arrest of William B. Singleteary, 39, of Big Rock. He is charged with three counts of fraudulently using TennCare to obtain a controlled substance by doctor shopping, in this case, for the painkillers Oxycodone and Morphine, with the physician office visits paid for by TennCare. This type of criminal activity is serious business, but the Office of Inspector General is going after these cases in all 95 counties in Tennessee, Inspector General Deborah Y. Faulkner said. Health care providers and their employees are great at spotting these cases, and they are as committed as we are to stop TennCare fraud. The Stewart County Sheriffs Department served Singleteary with the charges when he 3

appeared in a Stewart County General Sessions Court on unrelated charges. He was held in the Stewart County Jail until the Montgomery County Sheriffs Office could take him into custody and transport him to the Montgomery County Jail to be booked. http://www.theleafchronicle.com/article/20120509/NEWS01/305090020/Big-Rock-man-charged-TennCaredoctor-shopping-

TBI asked to investigate allegations against Kingsport police chief (Times-News)

An e-mail alleging misconduct by Kingsport Police Chief Gale Osborne has made its way to multiple city officials, with the Tennessee Bureau of Investigation soon to be involved. Meanwhile, Osborne says he was acting on the orders of a judge to protect a juvenile's inheritance, following the death of their caregiver and dispute over their belongings. Sullivan County District Attorney General Barry Staubus says he has reviewed the allegations and spoke with Kingsport Mayor Dennis Phillips. On Wednesday afternoon he said he plans to request the TBI investigate the matter, which revolves around Chief Osborne's alleged misuse of police facilities and forces. Citing the TBI's involvement, he declined further comment. The claims of misconduct were made in an e-mail sent Tuesday evening. It says Osborne used both on-duty and off-duty officers to conduct his personal business at a rental property he owns including the removal of the tenant's belongings. http://www.timesnews.net/article/9046396/tbi-asked-to-investigate-allegations-against-kingsport-police-chief

No early appeal date for recall effort of mayor (Times Free-Press/Hightower)

The Tennessee Court of Appeals on W ednesday denied an early hearing to permit a recall election of Chattanooga Mayor Ron Littlefield. The court brief states that Citizens to Recall Mayor Littlefield and the Hamilton County Election Commission should have asked a trial court, rather than the appeals court, to reinstate a recall election. I guess you can read between the lines and say we wont have an election in August, said Jim Folkner, of Citizens to Recall Mayor Littlefield. Folkner, along with Charles Wysong and Darrell Silvey, filed a motion to expedite almost two weeks ago to expedite an appeal hearing on the recall. Circuit Court Judge Jeff Hollingsworth ruled in February against the recall effort and issued an injunction stopping an August recall election. The recall effort began two years ago when three groups Citizens to Recall Mayor Littlefield, Chattanooga Organized for Action and the Chattanooga Tea Party began a petition drive. The recall effort has been mired in court since then. Hal North, Littlefields attorney, said Wednesday the appeal is whimsical and nonsensical, with a regular mayoral election slated just 10 months from now in March 2013. http://www.timesfreepress.com/news/2012/may/10/no-early-appeal-date-recall-effort-mayor/?local

Ramsey: Compromise Possible Over Controversial Gun Bill (WPLN-Radio Nash)

Lieutenant Governor Ron Ramsey says Tennessee has not heard the last of a fight over whether workers can keep guns in their cars on company lots. Ramsey thinks a compromise might be hashed out now that the years session is over. Ramsey was asked what unresolved issues he thinks will come up again, and immediately pointed to the guns-in-parking-lots bill. This spring the measure threatened to make Republicans weigh gun rights against concerns from businesses. Ramsey argues now a compromise is possible, because cooler heads will now have time to prevail. I want to make sure that we work something out between now and the time we come back, and we can ratchet the rhetoric down. We can ratchet the name-calling down and actually come up with a common-sense piece of legislation. It got completely out of hand. The proposal never reached a floor vote, prompting the president of the Tennessee Firearms Association to call for the political crucifixion of a top GOP lawmaker. And a National Rifle Association lobbyist complained of being disregarded by Republican leaders, saying the NRA wouldnt forget it in this falls election. http://wpln.org/?p=37087

What's at stake in the legislature's covert war on Planned Parenthood (Nash Scene)
It's not even noon, yet Stratford High School's Room 2008 is already uncomfortably warm. About 20 sophomores and juniors fan their gleaming faces with folders and miscellaneous papers, surrounded by giant posters lining the room. On one, cartoon sperm swim around a Venn diagram comparing male and female sex organs. One kid says a friend told him a condom was part of the male anatomy. A few chuckles break out, but by and large the kids are alright. "That's interesting," says Lyndsey Godwin, a Planned Parenthood education and training instructor who regularly visits schools across the Metro Nashville Public School District to teach hormonally charged young adults the ins-and-outs of reproductive health. "But totally incorrect." Godwin proceeds to discuss 4

a wide array of topics, from avoiding risky sexual behavior to more philosophical questions. One question clearly strikes a chord. "When do you know you're ready to have sex?" Godwin asks. Silence falls over the room. Then, at once, an explosion of answers. "One at a time, please," Godwin chides. http://www.nashvillescene.com/nashville/whats-at-stake-in-the-legislatures-covert-war-on-plannedparenthood/Content?oid=2865081

Sen. Mark Norris Talks Schools and Film (WHBQ-TV Memphis)

Bill Haslam is the Governor of Tennessee. But, as the Senate majority whip of the recently concluded General Assembly session, Collierville Republican Mark Norris proved again he is straw "that stirs the drink" as its unmatched legislative powerbroker. W hen asked about Haslam's hesitation to sign into law two passed measures to lift the ban on municipal school districts in Shelby County and allow those municipalities to hold their own referendums on whether they want to create their own school systems, Norris dodged any appearance of conflict with the Governor. "He is pleased I think that the Transition Planning Commission is to complete its report several months before any votes will be taken. So, he takes some reassurance in that. I just think he's giving it thoughtful favorable consideration," said Norris. In fostering the school bills, Norris deftly warded off criticism of perceived Nashville interference in the transition process his own 2011 Norris-Todd legislation put into place as a mechanism to aide the school merger. I asked him on Tuesday if he's been pleased with the TPC's work so far. http://www.myfoxmemphis.com/dpp/news/education/sen.-mark-norris-talks-schools-and-film-rpt-20120509

Primary Hostilities (TN Report)

Legislators may have fled Capitol Hill this week for the friendly confines of their home districts, but many of them face election opponents wholl be looking to cast their leadership and voting records in as unflattering a light as possible. Twenty-six out of 33 legislative primary races this year are match-ups between GOP incumbents. Ten sitting Democratic lawmakers also face primary elections and as a result of redistricting, in four races against fellow incumbents. The primary election is Aug. 2. http://tnreport.com/blog/2012/05/04/primary-hostilities/

State Hoops Prevent Corvette Expos Return (Metro Pulse)

A state regulation is preventing Knoxville from returning the popular Corvette Expo to Chilhowee Park, once a successful event at the venue. One of the key elements of the show is the auction of a Corvette. Under a new auction law, passed in 2008, you cannot hold a car auction off premise. W hen the law was passed it did not affect the Corvette Expoit was grandfathered in and was then located in Sevier County. But to move the event back to Knoxville requires Expo organizers to get a variance from state regulations. It requires extensive paperwork and it would have to be approved by a board which meets quarterly. Because of the hassle, the time constraints, and the unknown outcome, the Expo decided to stay in Sevier County this year. The Knoxville Tourism and Sports Corp. is staying in touch and trying to find a solution for the future. http://www.metropulse.com/news/2012/may/09/state-hoops-prevent-corvette-expos-return/

It's Always Something (Memphis Flyer)

No sooner has one divisive issue on the Shelby County Commission reached something of a consensus than another has sprung up to bedevil the contentious body that, more than any other, represents the diverse points of view within greater Shelby County. W hen Terry Roland, the Millington conservative who has clashed with his fellow suburban Republicans on redistricting issues, presented Plan 2-J for one more go-around last week in committee, he was explicit about one of his reasons for doing so. "What we have now is not a battle over the districts, it's a battle of charter over state," he said. Elaborating on that, he expressed a fear of adverse consequences for the commission, which has been unable to achieve the two-thirds majority on a redistricting plan required by the county charter, if the redistricting issue has to be resolved in the court of Chancellor Arnold Goldin. There had arisen a dispute on the commission regarding the issue of whether the super-majority provisions of the county charter could be overridden by a state law requiring only a simple majority for redistricting plans. http://www.memphisflyer.com/memphis/its-always-something/Content?oid=3179905

County budget committee reviews court budgets (State Gazette)

The Dyer County Budget Committee spent day four of its monthlong budget review dissecting the various county 5

court budgets including: the County Clerk, Chancery, General Sessions, Drug, Juvenile and Circuit Court budgets. Also discussed was the budget for the Agriculture Extension Office. The committee has been swiftly moving along this year with each county department head presenting their budget. This new strategy has allowed committee members to ask questions of the department heads as well as offer suggestions on how to trim their budget if necessary. Commissioner Benny Spain, who serves as chairman of the budget committee, has explained to each department head that the committee is currently not approving or disapproving budgets, just gathering information. Tuesday's meeting began with a presentation by Tim Campbell, county director for the UT Extension Office, on the mission of his office. According to materials provided by Campbell, his office provides education, research and public service in agriculture in related areas to students, producers and consumers in Tennessee. The mission of the extension office, which has been in Dyersburg since 1912, is to release research-generated information to the public in order to improve the quality of life for local citizens. http://www.stategazette.com/story/1846839.html

Rep. Diane Black seeks to protect state immigration laws (Tennessean/Bewley)

The House on W ednesday passed a measure by Republican Rep. Diane Black that would prevent the Obama administration from challenging state immigration laws in court. The measure, an amendment to a bill that would fund the Justice and Commerce Departments and other agencies for fiscal 2013, passed 238-173. It would forbid the Justice Department from spending money on lawsuits challenging state immigration laws. There are over 10 million unauthorized aliens in this country, and states must be able to enforce the law if the federal government refuses to, Black said on the House floor Tuesday. The states should not have to live in fear of federal retribution for trying to keep their citizens safe. Blacks amendment came to the floor just two weeks after Arizonas controversial immigration law made its way to the U.S. Supreme Court. The Justice Department said that law which gives the police broad power to detain people suspected of being in the country illegally conflicts with federal immigration policy. Five states have passed similar laws, and the Justice Department has filed suit against three of them: Alabama, South Carolina and Utah. Georgia and Indiana also have passed laws. Parts of the laws are on hold pending the Supreme Courts ruling, which is expected in June. http://www.tennessean.com/article/20120510/NEWS02/305100041/Rep-Diane-Black-seeks-protect-stateimmigration-laws?odyssey=tab|topnews|text|News

Fleischmann-Bhalla-Wamp debate set for May 21 (Times Free-Press/Carroll)

U.S. Rep. Chuck Fleischmann and two of his challengers, Ron Bhalla and Weston Wamp, said they will participate in a 3rd Congressional District Republican primary debate sponsored by the Chattanooga Times Free Press and WRCB Channel 3. Scottie Mayfield rejected an invitation to the May 21 debate. A campaign spokesman, Joe Hendrix, emailed a statement to the newspaper W ednesday. "Scottie believes the majority of those who attend debates have already made up their mind who they are going to vote for," Hendrix wrote. "The issues are not where the candidates differ, it's experience." This will be the second candidate forum Mayfield has shunned in two weeks. In late April, the Athens, Tenn., dairy executive was the only 3rd District Republican candidate to decline an upcoming Chattanooga Tea Party debate. Hendrix added that Mayfield has "public appearances nearly every day for the next month," but declined to name them. The appearances are not listed on the campaign website, Facebook page or Twitter feed. http://www.timesfreepress.com/news/2012/may/10/debate-set-for-may-21/?local

Scottie Mayfield wont join TFP/WRCB 3rd District debate (Times Free-Press)
U.S. Rep. Chuck Fleischmann and two of his challengers, Ron Bhalla and Weston Wamp, said they would participate in a 3rd Congressional District Republican primary debate sponsored by the Chattanooga Times Free Press and WRCB-TV. Scottie Mayfield rejected an invitation to the May 21 debate. A campaign spokesman, Joe Hendrix, emailed a statement to the newspaper Wednesday. Scottie believes the majority of those who attend debates have already made up their mind who they are going to vote for, Hendrix wrote. The issues are not where the candidates differ, its experience. This will be the second debate invitation Mayfield has shunned in two weeks. In late April, the Athens, Tenn., dairy executive was the only 3rd District Republican candidate to decline an upcoming Chattanooga Tea Party debate. Mayfield recently described debates as divisive, and a recent YouTube video showed him saying he must get elected to Congress before explaining his legislative goals. http://www.timesfreepress.com/news/2012/may/09/scottie-mayfield-wont-join-chattanooga-times-free-/?local

Postal Service to keep rural offices open (Jackson Sun)

Bending to strong public opposition, the nearly bankrupt U.S. Postal Service on Wednesday backed off a plan to close thousands of rural post offices after May 15 and proposed keeping them open, but with shorter operating hours. The move to halt the shuttering of 3,700 low-revenue post offices followed months of dissent from rural states and lawmakers, who said the cost-cutting would hurt their communities most. In recent weeks, rising opposition led Postmaster General Patrick Donahoe to visit rural areas to ease fears about cuts that could slow delivery of prescription drugs, newspapers and other services. The agency also will announce new changes next week involving its proposal to close up to 252 mail processing centers. David W alton, regional spokesman for the postal service, said it is not clear yet what will happen with the mail processing changes that have been proposed for Jackson and Madison County. The changes announced W ednesday by the postal service are only for rural post offices, so nothing in Jacksons main offices will change for now, he said. We dont know anything about mail processing yet, Walton said. Were still in a holding pattern. http://www.jacksonsun.com/article/20120510/NEWS01/305100011/Postal-Service-keep-rural-offices-open-Mailprocessing-changes-announced-next-week

Postal Doors Staying Open (Wall Street Journal)

Faced with a public outcry and pushback from Congress, the United States Postal Service on Wednesday backed away from its plan to close as many as 3,700 rural post offices starting next week. "We've listened to our customers in rural America, and we've heard them loud and clear. They want to keep their post office open," said Postmaster General Patrick Donahoe. The financially distressed agency said it has instead identified 13,000 rural post offices where it can reduce hours or make other changes short of closuresuch as forging partnerships between post offices and local gas stations or corner storesfor estimated savings of about $500 million a year. That is more than it would have realized annually through the closures, the agency said. Some 21,000 local postmasters will be offered early retirement to wring further savings from the service. The new strategy, which will be implemented after meetings with communities, will take effect in September 2014. Still, the agency is bleeding record sums. The announcement pertains only to rural offices, so the agency could still look at closing other branches. In addition, the service has called for the closure of 223 mail-sorting plants and said it will soon announce "next steps" on that. http://online.wsj.com/article/SB10001424052702304203604577393923314272532.html?mod=ITP_pageone_1 (SUBSCRIPTION)

Postal Service Holds Back on Closings (Wall Street Journal)

The United States Postal Service said Wednesday that it would keep hundreds of small post offices open by reducing business hours or offering stamps and packaging in grocery stores, whittling down its ambitious plan to streamline its services and balance its books by closing thousands of post offices. Giving Congress more time to pass legislation to overhaul the financially struggling agency, the service held back from the wholesale closings of mostly rural post offices that it had proposed last year. The Postal Services hope is that Congress, given more time, will come up with a plan to overhaul the agency. But Wednesdays action signals that the Postal Service needs to move forward with staffing cuts. Patrick R. Donahoe, the postmaster general, said the latest plan would take two years to put into effect and would save about $500 million a year. That would not be nearly enough to fill its multibillion-dollar shortfalls, but it addresses objections from dozens of small communities where post offices were targeted for closing. The plan today will ensure rural communities will be served by the Postal Service, Mr. Donahoe said. It balances reducing cost with the need to serve rural America. http://www.nytimes.com/2012/05/10/us/politics/postal-service-holds-back-on-closures.html? _r=1&ref=todayspaper (SUBSCRIPTION)

Should States Be in the Liquor Business? (Stateline)

For about a year, Pennsylvania wine-lovers didnt have to go to a state-run Fine Wine & Good Spirits store to pick up a bottle of their favorite cabernet or sauvignon blanc. They could swing by the grocery store, like Americans in most states, with one major caveat: They had to purchase the wine from a state vending machine. To get their bottle out of the machine, they had to blow into a breathalyzer and wait for a state employee in a central office to verify their identity and sobriety. The Pennsylvania Liquor Control Boards initial attempt to modernize its retail operations with wine vending machines in grocery stores ended in September after a little more than a year of operation. An audit released last August found that the wine kiosks were inconvenient for customers and took in $1.12 million less than the cost of operating them. They frequently malfunctioned and 7

were shuttered on Sundays, the top sales day for grocery stores. Eighteen states have an agency charged with overseeing the wholesale or retail sale of liquor or wine, but only Pennsylvania and Utah exert complete control over all such sales. Now Pennsylvania is one of several states grappling with whether to modernize its system or get out of the alcohol business entirely. http://www.stateline.org/projects/stateline/headlines/should-states-be-in-the-liquor-business-85899386069

Chattanooga remains bright for factory jobs (Times Free-Press/Flessner)

Coming out of the worst recession in a half century, the Sunbelt has lost some of its manufacturing shine to the Midwest's Rustbelt, according to a new study of manufacturing trends among metropolitan cities. But Chattanooga remains a bright spot for more manufacturing employment, adding factory jobs in the past two years at the fastest pace of any MidSouth metro area. In the most recent two years for which employment data is available, metro Chattanooga added 3,500 manufacturing jobs for a nearly 13 percent gain in factory jobs. Chattanooga's growth rate since the recession ended has been more than twice the pace of manufacturing job gains in Nashville and Atlanta and more than four times the growth rate in other traditionally strong manufacturing cities of the South, including Birmingham, Memphis and Louisville. "Chattanooga is one of those metro areas that is benefiting by the resurgence we're seeing in manufacturing, and we think there are opportunities to even more growth," said Howard Wial, a Brookings Institution fellow and co-author of a study being released today on where manufacturing is growing in the United States. http://www.timesfreepress.com/news/2012/may/09/chattanooga-remains-bright-for-factory-jobs/? businesstnvalley

Nissan Breaks Ground on Joint Plant with Mercedes (WPLN-Radio Nashville)

Nissan is a few shovels-full of dirt closer to building engines for Mercedes-Benz in Tennessee. The Franklinbased automaker broke ground on a new manufacturing facility near its existing powertrain plant in Decherd Wednesday. The plan is to make 4-cylinder engines for Nissans luxury brand Infiniti that will also be used in a Mercedes model. Vice president of production Mark Swenson says its a new chapter for Nissan as well as Mercedes, which has never built engines in North America. This will be an alliance plant. I think thats important not only for the local community, job creations, but also for the company in terms of strategic direction. The factory will take about two years to construct. When its done the expansion could add as many as 400 workers. Around 800 people already work at Decherd, building engines for all U.S.-made Nissans as well as an Infiniti SUV. http://wpln.org/?p=37062

Daimler joins Nissan (Chattanooga Times Free-Press/Pare)

Another German automaker is putting down roots in Southeast Tennessee. Officials for Volkswagen rival Daimler on Wednesday joined Nissan at the ground breaking for a new plant that will create 400 jobs making engines for both companies. The factory, 60 miles northwest of Chattanooga, will build 4-cylinder engines for new MercedesBenz cars as well as Nissan's Infiniti luxury brand starting in 2014. The 310,000-square-foot plant to go up next to Nissan's existing powertrain factory that already employs 1,100 people. The factory is the most significant project of the 2010 partnership between the Renault-Nissan alliance and Daimler outside of Europe, said Carla Bailo, Nissan Americas' senior vice president of research and development. "This location ensures a direct supply of engines for the Mercedes-Benz C Class," she said, citing the sedan that will be built in Daimler's assembly plant in Vance, Ala., about 120 miles south of Decherd. Felyicia Jerald, communications manager for Mercedes-Benz U.S. International Inc. in Vance, said plans are to start production of the cars in Alabama in 2014. http://www.timesfreepress.com/news/2012/may/10/daimler-joins-nissan/?business

400 jobs coming to Southeast Tenn. at new engine manufacturing plant (TFP/Pare)
A new engine manufacturing plant for auto giants and partners Nissan and Daimler will create 400 new jobs, officials said today. Officials for the Japanese and German automakers broke ground on the new 310,000square-foot factory that will go up next to Nissans existing powertrain plant that already employs 1,100 people in Franklin County. The facility about 60 miles northwest of Chattanooga will make engines for Nissans luxury Infiniti brand and Mercedes Benz models. This is good for the people and economy of Tennessee, said Mark Swenson, Nissan Americas vice president of production engineering and component facilities. The investment 8

wasnt immediately announced for the plant thats slated to open in 2014. http://www.timesfreepress.com/news/2012/may/09/400-jobs-coming-southeast-tennessee-new-engine-man/? local

Home Sales Improve Just 2 Pct. (Memphis Daily News)

Shelby County home sales in April saw little change year over year, and more than half of total sales were valued at $100,000 or less. Memphis and its 34 ZIP codes registered 1,116 home sales last month, up 2 percent from 1,094 recorded in April 2011, according to real estate information company Chandler Reports, www.chandlerreports.com . Year to date, however, residential sales are up 14 percent for the first four months of this year (4,294) compared to the same period last year (3,752). While 57 percent of home sales were valued at $100,000 or lower, Aprils report included a few bright spots. Total sales revenue for April was $137 million, a 16 percent boost from $118 million seen during April 2011. Average sales prices for the month were not only up 14 percent from last year, but 18 of the countys ZIP codes saw year-over-year increases in average sales prices. http://www.memphisdailynews.com/news/2012/may/10/home-sales-improve-just-2-pct/

April Home Sales Pick Up 25 Percent (W PLN-Radio Nashville)

April was another strong month for home sales, according to the Greater Nashville Association of Realtors. Closings were up 25 percent. GNAR says its more than just a seasonal uptick. Closings have improved by nearly 25 percent year-to-date. Last month, prices improved as well. The median home is selling for $165,000, up $6,000 from the same period last year. Condo prices, however, did take a dip. Sallie Simmons with Zeitlin & Co. has been working deals with both buyers and sellers and says she sees stability in the regions housing market. Sellers seem to be satisfied by what theyre selling their house for today versus a year or two ago. And I feel like buyers still feel like they have options and are able to get very favorable interest rates and loans. Home sales are expected to keep pace this month, with pending deals up over last year. http://wpln.org/?p=37066

Hostess warns its 18k US employees of potential layoffs (Memphis Biz Journal)
Hostess Brands Inc. has sent potential layoff notices, under the federal WARN act, to all 18,000 employees across the U.S., a company spokesman says. Irving, Texas-based Hostess, maker of the iconic Twinkie and Wonder Bread, is currently under Chapter 11 bankruptcy protection. "The notices were sent to alert employees that a sale or wind down of the company is possible in the future," spokesman Erick Halvorson said in a statement. "Our goal is still to emerge from bankruptcy as a growing company. There are no immediate actions being taken to sell or wind down the company." Hostess operates a manufacturing facility at 400 Monroe Avenue near Downtown Memphis, where it employs 244 people, according to Memphis Business Journal research. http://www.bizjournals.com/memphis/news/2012/05/09/hostess-warns-its-18k-us-employees-of.html

Hostess warns workers, including 251 here, they face unemployment (CA/Risher)
Hostess Brands' 251 Memphis employees are among 18,500 nationally who've been put on notice they could lose jobs in the company's bankruptcy restructuring. The Irving, Texas, company filed "conditional" layoff notices Wednesday with the Tennessee Department of Labor and Workforce Development that the Memphis workforce is at risk. "Last Friday, we mailed conditional W ARN notices to all 18,500 Hostess Brands employees around the country," Hostess spokesman Erik Halvorson said. "The notices were sent to alert employees that a sale or wind down of the company is possible in the future. However, our goal is still to emerge from bankruptcy as a growing company and there are no immediate actions being taken to sell or wind down the company. We are simply fulfilling our requirements by sending these notices." Layoff notices are required under the federal Worker Adjustment and Retraining Notification (WARN) Act. Notice also was sent to Memphis Mayor A C Wharton and Shelby County Mayor Mark Luttrell. http://www.commercialappeal.com/news/2012/may/09/hostess-brand-tells-workers-including-more-250-mem/ (SUBSCRIPTION)

Nashville's LEAD charter group awarded $3.25M to support growth (City Paper)
Nashvilles LEAD Public Schools, a Metro charter organization, is set to receive $3.25 million from the Charter School Growth Fund-Tennessee to support LEADs planned growth and future expansion in Davidson County. This generous investment will help fulfill our promise to our first group of students and meet the demand from parents in Nashvilles most underserved communities to get a rigorous, college-preparatory education for their 9

children, LEAD Public Schools founder Jeremy Kane said. LEAD Public Schools currently manages three charter schools in Nashville: LEAD Academy, which operates a separate middle and high school; College Cameron Prep, a former traditional public middle school recently converted to a charter; and Brick Church College Prep, which will become the groups second charter-conversion middle school this fall. The $3.25 million investment will support LEADs three existing schools and help fund its plans to expand to five combination middle/high schools by 2016. LEAD, which currently enrolls approximately 650 at its three schools, hopes to eventually serve more than 4,700 Metro students in grades five through 12. http://nashvillecitypaper.com/content/city-news/nashvilles-lead-charter-group-awarded-325m-support-growth

Knox charter review panel OKs term-limits language (News-Sentinel/Donila)

The Knox County Charter Review Committee on Wednesday signed off on what members say defines exactly what a term in office actually is. Under the proposal approved on first reading, a term is a "full, elected four- or six-year period, depending on the length of the elected office as provided by this charter or Tennessee law." The committee must approve each proposed change to the charter twice before it goes to voters in either the August or November election. The definition the committee approved also states that "any partial service prior to the passage of this amendment shall not count in determining the length of service." That means, Knox County Sheriff Jimmy "J.J." Jones, Register of Deeds Sherry Witt and County Clerk Foster Arnett Jr. can run again for their respective offices in 2014. "If someone steps up in a time of crisis, then we shouldn't take that (the chance to run again) away from them," said committee member Randy Smith. Committee member Lisa Starbuck agreed, adding: "I have tremendous respect for someone who puts themselves out there. http://www.knoxnews.com/news/2012/may/09/knox-charter-review-panel-oks-term-limits/

Lenoir City schools recommended for SACS accreditation (News-Sentinel/Willett)

The Lenoir City School Board learned this week that the district has been recommended for accreditation by the Southern Association of Colleges and Schools. The recommendation followed an evaluation of the school systems procedures and practices by a quality assurance external review team. The SACS team, led by Dr. Linda Brown, met with more than 100 individuals in the district including parents, students, teachers and board members to evaluate the procedures for raising standards, continuous improvement and quality assurance. Dr. Brown described the district as "well beyond the norm," in most aspects, including transparency and the high visibility of schools Superintendent W ayne Miller. She also praised the district's Career Technology Center. In terms of improvement needed, Brown recommended that the school district establish formalized processes with regard to areas such as data collection and lesson planning. http://www.knoxnews.com/news/2012/may/09/lenoir-city-schools-recommended-for-sacs/

Security for schools stirs controversy (Commercial Appeal/Roberts)

Transition planning team rejects handing issue to Sheriff's Office Who will oversee school security in the consolidated Shelby County Schools district has turned into a thorny issue in a merger plan growing more complex by the week. On Wednesday, the Transition Planning Commission's logistics committee voted in favor of the blended security system that exists in both districts today. That means that security officers on the district payroll would continue to report to district officials, and sheriff's deputies who work in schools would continue to report to the Shelby County sheriff. The split 3-2 vote is expected to trigger discussion when the issue comes before the full TPC in several weeks. It has already generated two weeks of heated debate in the committee. In late April, members were prepared to make the same recommendation but recessed instead of adjourning to keep the item open for discussion. Part of the reason is Shelby County Mayor Mark Luttrell is strongly against a dual-reporting system. He wants all school security officers to report to the Shelby County Sheriff's Office with the understanding that the principal would be consulted in how disputes are settled. http://www.commercialappeal.com/news/2012/may/10/security-for-schools-stirs-controversy/ (SUBSCRIPTION)

Priest Lake levels dip to lowest ever for spring (Tennessean/Gang)

Early signs of drought raise concerns over water, wildlife The warm, dry spring has taken its toll on the Cumberland River Basin. J. Percy Priest Lake is 3.7 feet below normal, its lowest level ever for this time of year, the U.S. Army Corps of Engineers reported this week. Lake Barkley in Kentucky is 2.8 feet below normal. The low lake levels mean less water flows downstream into the Cumberland River. That could cause problems for power generation, water treatment and river navigation, experts said Wednesday. It also could harm fish and means boaters this summer should be on the lookout for hazards. Already, the low levels at J. Percy Priest Lake 10

have stopped power generation at the dam, said Ben Rohrbach, the Corps chief of hydrology and hydraulics in Nashville. Its only May. Summer hasnt started yet, Rohrbach said. We already are seeing signs of drought across the region. The Cumberland River Basin, or watershed, includes streams, rivers and lakes that flow into the Cumberland River. In addition to J. Percy Priest and Lake Barkley, Center Hill, Dale Hollow and Wolf Creek are part of the basin. Rohrbach said the Corps has had to reduce the flow of water out of J. Percy Priest Lake to a minimum, about 20 cubic feet of water per second. He said the ideal amount varies, but certainly we would desire to have more flowing through the Stones River. http://www.tennessean.com/article/20120510/NEWS01/305100049/Priest-Lake-levels-dip-lowest-ever-spring? odyssey=tab|topnews|text|News

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OPINION Ron Ramsey: Unemployment reform will clean up abuse (Tennessean)

Last fall, I traveled the state from Mountain City to Memphis on my Red Tape Tour, looking for ways to make job creation easier. Of all the state rules and regulations stifling job creation, complaints about Tennessees unemployment system dominated the conversation. Contrary to the insistence of the left, the vast majority of business owners do not enjoy laying off workers. Ive done it myself. It is a heartbreaking act for all concerned. But sometimes decisions have to be made for the good of a business so that only a few people lose their jobs rather than the scores of people laid off when a company collapses. No employer begrudges employees collecting unemployment insurance when they have been let go through no fault of their own. Times are tough, people are hurting and sometimes the next job is not waiting just around the corner. Thats what our unemployment system is for: to serve as a bridge from one opportunity to the next. Some however seek to abuse the system. http://www.tennessean.com/article/20120510/OPINION03/305100016/Unemployment-reform-will-clean-up11

abuse?odyssey=mod|newswell|text|Opinion|p

Editorial: Pilot program to help meet mental health needs (News-Sentinel)

In 2011, three men plunged to their deaths from Summit Towers, the 12-story subsidized apartment building in downtown Knoxville. Two other residents committed suicide by other means last year. The deaths have raised concerns about the adequacy of mental health care in the area, especially in light of the pending closure of the state-operated Lakeshore Mental Health Institute. The rash of suicides underscores the desperate need for the state's plan for the area's mentally ill to succeed. The state Legislature has begun to give the effort a boost, approving during this year's session a pilot program that would make it possible for a judge to order supervised outpatient treatment under certain circumstances. Patterned on Kendra's Law in New York and laws in numerous other states, the measure would give families a way to get help for mentally ill relatives who are resistant to following treatment regimens on their own. People being treated for mental illnesses sometimes turn violent toward others when they stop taking medications. Others sink into despair so great they see no way out other than death. http://www.knoxnews.com/news/2012/may/10/editorial-pilot-program-to-help-meet-mental/

Editorial: Early Christmas for the well-off (Commercial Appeal)

Tax break for affluent Tennesseans: Let's hope those who benefit from phasing out the inheritance tax will be mindful of sharing the wealth. If you are rich the Tennessee legislature has done a good thing. No more inheritance tax on estates after 2015. That means when you die your heirs won't have to pay any taxes when they inherit your millions. Even if you are just pretty well-off, having an estate worth, say, $4.5 million at the time of death, your children and spouse will benefit some from the lack of an inheritance tax and the elimination of the state's gift tax. Fine. It's a nice bit of early Christmas from the legislature for the well-off. But some of the hyperbolic claims that this tax change will radically alter the economy of Tennessee simply are overblown. At an Economic Club speech in Memphis last month, Arthur Laffer, the brain behind the push to eliminate Tennessee's estate tax, blithely repeated his oft-made claim that the tax is the single greatest detriment to the state's economic growth. Conversely, Laffer has argued that eliminating the tax could lead to thousands of new jobs and the sale of many more goods and services. Are these claims true? http://www.commercialappeal.com/news/2012/may/10/editorials-early-christmas-for-the-well-off/ (SUBSCRIPTION)

Editorial: Fisk, TSU need game-changers in charge (Tennessean)

Tradition is an essential, core value at Fisk and Tennessee State universities. It also may be their Achilles heel. Nashvilles proud historically black universities one private, one public are each on the hunt for a new president at a time when the challenges for these schools are daunting. Fisk and TSU have tended to choose their leaders from longtime alumni and university administrators whose methods were considered tried and true. Thats a reasonable practice for institutions whose roots date to the 19th century. Unfortunately, the tried methods of running historically black colleges and universities (HBCUs) are no longer necessarily true. With a greater percentage of young African-American students opting to attend mainstream colleges and universities, funding and enrollees for HBCUs is tougher than ever. Take Fisk, whose enrollment has fallen from 800 in 2003 to around 550 today, and whose endowment is only about $20 million despite the schools $18 million annual operating budget. http://www.tennessean.com/article/20120510/OPINION01/305100014/Fisk-TSU-need-game-changers-charge? odyssey=mod|newswell|text|Opinion|p

Times Editorial: Mayfield, reluctant candidate (Chattanooga Times Free-Press)

A first-time candidate for office should grab every chance to promote his candidacy. Not Scottie Mayfield, the Athens businessman who is seeking the Republican nomination in Tennessee's 3rd District primary election. He's hiding from the public. First, he turned down the chance to appear at a Chattanooga Tea Party forum. Now, he's refused an invitation to face incumbent Chuck Fleischmann and challengers Weston Wamp and Ron Bhalla in a May 21 debate sponsored by The Chattanooga Times Free Press and WRCB-TV. Primary season is still in its infancy, but a disconcerting pattern is emerging from Mayfield's camp. The candidate avoids public debate and speaks only to friendly groups. That is the only explanation for the candidate's refusals -- and for an email to this paper from Joe Hendrix, Mayfield's campaign spokesman, regarding the May 21 event. "Scottie believes the 12

majority of those who attend debates have already made up their mind who they are going to vote for," Hendrix wrote. "The issues are not where the candidates differ, it's experience." Hendrix did write that Mayfield has several public appearances scheduled but declined to name them, adding that the candidate plans to "connect with undecided voters, one on one." Huh? http://www.timesfreepress.com/news/2012/may/10/mayfield-reluctant-candidate/?opiniontimes

Free-Press Editorial: W alking for Congress (Chattanooga Times Free-Press)

Tennessee milk and ice cream titan Scottie Mayfield's "run" to succeed fellow Republican Chuck Fleischmann as the 3rd District's representative to Congress thus far barely qualifies as a walk, and now it seems he's leaving the racetrack entirely to take a seat in the bleachers. Mayfield, who in late April declined an invitation to take part in a June 23 candidates' debate hosted by the Chattanooga Tea Party, now has turned down an invitation to a May 21 debate sponsored by the Times Free Press and WRCB-TV 3. Through Joe Hendrix, his communications director, Mayfield's emailed response to the invitation: "Scottie believes the majority of those who attend debates have already made up their mind who they are going to vote for. The issues are not where the candidates differ, it's experience. Scottie has public appearances nearly every day for the next month, and he intends to continue to talk about his proven record of job creation and connect with undecided voters, one on one." The extent of Mayfield's "proven record" of creating jobs appears to involve managing as many as 1,700 Mayfield Dairy employees and, beginning in 2007, letting about 250 of them go as milk prices fell. Well, lots of business owners have had to deal with similar challenges. http://www.timesfreepress.com/news/2012/may/10/walking-forcongress/?opinionfreepress

Clay Bennett Political Cartoon: Mayfield (Chattanooga Times Free-Press)

http://media.timesfreepress.com/img/news/tease/2012/05/09/120510_Mayfield_t618.jpg? ba5b5b122dd3d37cc13d83e92a6a0ec0d5bfa32a ###

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