Gov. Bredesen announces 'jobs cabinet' launch at Lipscomb

 | 07/29/2003

Bredesen on Lipscomb

"I just want to repeat what everybody here knows -- the job you and your team are doing in building this school's reputation as a high quality institution of higher learning," Tenn. Gov. Phil Bredesen told Lipscomb University President Steve Flatt during the Business Leadership Council luncheon. "I am, for those of you who don't already know, a huge fan of this university, a huge fan of Steve Flatt's. This, to me, is what a university should be, living in the community and taking part. I've enjoyed my relationship [with the university] through the years and hope to continue it."

Gov. Phil Bredesen (D-Tenn.) meets with a large contingent of media representatives following his address to the to approximately 320 members of the Business Leadership Council. Boult, Cummings, Conners and Berry PLC helped sponsor the luncheon.(Lipscomb University Photos by Amber R. Stacey.)

Gov. Phil Bredesen's "jobs cabinet" begins a statewide tour Wednesday in Lawrenceburg as it tries to determine the economic development needs of specific regions across the state.

Speaking to Lipscomb University's Business Leadership Cabinet Tuesday in Nashville, Bredesen said he and a "significant portion of the cabinet" would work with regional leaders to determine the best economic growth strategies for specific regions.

Because of Tennessee's size and diversity, no single economic strategy that will fit all areas of the state, Bredesen said.

"To be successful at job recruitment and job retention, we need to be settling down regionally and figuring out what are the strengths, what are the weaknesses, what are the opportunities in this region and really honing down what we're doing to be very specific to different areas," he said.

He said any community in Tennessee could benefit from a well-designed regional development plan. The goal of the jobs cabinet is to ensure that every part of Tennessee "gets a piece of the action" as the economy grows and to preserve the state's urban and rural heritage.

"We can't preserve that unless we make sure that young people in these rural communities have access to jobs as they grow and get into the workforce, and therefore, can stay in these communities, raise their families and commit themselves to life in these communities. That's a real challenge, and something we're working very hard on," Bredesen said.

The overall economy remains uncertain and it may still be "a while" before significant improvement occurs. Despite the uncertainty, there are opportunities for economic growth and in the meantime, state government is learning how to manage itself most efficiently, he said.

"I hate to admit it, but when I had my own businesses, I ran them better during tough times. That's when you figure out what you're really about, what strategies are most likely to yield success. That's what we're trying to do in economic development right now," Bredesen said.

He noted that in the six months since he became governor there have been nine announcements of companies coming to Tennessee resulting in 4,000 new jobs in the automotive, health care and technology sectors.

At the top of the list is Nissan's decision to relocate its Pathfinder production to its Smyrna plant, resulting in 1,500 new jobs. Verizon Wireless is bringing another 1,000 new jobs to the Murfreesboro area.

Although the jobless rate has crept up to 5.3 percent from 5.1 percent at this time last year, that's better performance than many states are experiencing.

"I don't like to see it going in that direction, but compared to what's going on in so many other parts of the country, it actually is a wonderful testimony to the wonderful jobs environment we have here in our state," Bredesen said.

The wealth of the state is in businesses and organizations that provide jobs, and in "hard-working Tennesseans" with well-paying jobs and futures. Because "eight and a half of every ten new jobs" are generated in an existing business, enhancing existing business is vital to the state's economy, Bredesen said.

"With that in mind, one of my fundamental missions as governor is to work to grow the economy by recruiting and helping to grow high-quality jobs and high-quality employers in our state," he said.

Tennessee has "a great deal to offer" to businesses, he said - convenient transportation network, low tax environment, competitive economic development programs, available real estate and a skilled work force "with an incredible work ethic."

The state's professional and supportive business environment was largely responsible for the success of his companies and is central to new business recruitment, he said.

Bredesen said that keeping the state's "fiscal house in order" is fundamental to a stable business environment. This year's budget included "some painful cuts," he said, but did not include new taxes and provided more funding for education.

"Our message to the business community is this: The work we're doing on the budget will help give Tennessee the stability it needs to be a good place for companies to grow and to invest and to prosper.

"We want our state to be known as a stable place that's conducive to business and job creation, and not one that faces a new and unstoppable budget crisis every year," Bredesen said.

In response to questions, Bredesen said that TennCare is "hogtied with consent decrees" that resulted from lawsuits. "We have to get out from under those if we hope to make TennCare work," he said.

He also said getting pharmaceutical costs under control and bringing a "centralized protocol" to specific diseases such as diabetes would result in better care at lower costs.

When asked about his position on a personal income tax, Bredesen said the one-cent sales tax increase passed by the General Assembly provided the same amount of funding that a personal income tax would have, and that a "low tax environment" is attractive idea.

He reminded the audience that he is committed to his pledge to not ask for major new taxes during his first term. On the basis of his experience as governor so far, he is "not real warm to the subject" of an income tax.