TENN. LAWMAKERS APPROVE BUDGET WITH NO AD TAX

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(July 13, 2001) -- Tennessee lawmakers today approved a budget that relies on three years of money taken from settlements with tobacco companies instead of either new sales taxes on advertising and other services or a new state income tax.

Protestors shouting "No new taxes" gathered at the Capitol and broke windows at the Capitol.

Gov. Don Sundquist, however, warned he may veto the budget, which makes some big cuts in state programs and would force major tuition hikes.

State officials also warned that by taking all the tobacco money in one year the legislature could be setting itself up for an even bigger tax battle next year. -- Ira Teinowitz

Copyright July 2001, Crain Communications Inc.

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