NOW IS THE TIME FOR FORRESTER TO EXIT

Tennessee Democrats are facing a political crisis of epic proportions in the coming months. And right now, it doesn’t look good.

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So, who will replace Freeman as TNDP Treasurer?

This just in: Reports from Nashville and Knoxville appear to confirm that just when we thought the TNDP's status couldn't get much worse, we were wrong. If my sources are correct, two things happened last night that make it so. First, Forrester decided to schedule a conference call of the State Democratic Party's Executive Committee. A fine move indeed, especially with all of the problems facing the state party (see original posts below). But wait, Forrester scheduled the call - supposedly to include prominent Democrats from Mountain City to Memphis - at the same time in which the Governor was giving his important budget address to the General Assembly. How's that for deference to the titular head of the Tennessee Democratic Party who is also the top-elected Democrat in the state?

Second, apparently fearing that Doug Horne will decide to kick them out of their nice Nashville digs or actually ask them to pay rent for a change (due to his refusal to be part of their glaring ineptidude), Forrester-Freeman and their equally inept minions on the Executive Committee have decided . . . drumroll please . . . to move the TNDP's offices and headquarters to the Steamfitters Unions' digs in, of all places, Antioch, TN. So, in a span of 30 minutes, Forrester was able to insult the Governor and move the TNDP offices where (if it wants to broaden it's base) it should never be: at a union headquarters. Is this the progress Forrester et al have been talking about? So, "we're broke, so we're going to let the big ole union take care of us." Folks, I love unions. My grandfather was a coal miner and was in the UMW when John L. Lewis was running the show in the 30's. Unions saved American workers and their familes in the 30's, 40's, and 50's, but if the Democratic Party is determined to "broaden its base," a terrific and necessary idea, we can't do it by tying ourselves more closely than ever to big labor. Even moderate Republicans and Independent-minded voters have one thing in common - a dislike of big labor's influence on the Democratic Party. This is not the way to go.

Original Post

According to an Associated Press report, Federal Election Commission disclosures show that the Tennessee Democratic Party is struggling to raise money. The TNDP’s first financial disclosure of the Chip Forrester era shows the party only managed to raise about $31,000 in February under Forrester and new Treasurer Bill Freeman, compared to about $211,000 raised in the same month of predecessor Gray Sasser’s stint in charge of the party. That’s just 14% of what Sasser raised in February ‘07. Sasser raised 7 times more than Forrester-Freeman during the same period. The 2006 elections were a wash, the economy was bad in 2007, and Sasser was a new chairman. So, why did he raise so much more money than Forrester-Freeman?

Governor Bredesen wants to repeal the tax exemption for family-owned noncorporate entities (known as FONCE) that own commercial real estate. Bredesen calls it a “fairly outrageous loophole” which benefits a few wealthy families, giving them an unfair advantage over other commercial real estate investors. According to the State's Revenue Commissioner, closing the loophole would generate at least $15 million in much-needed money for the state, while other estimates put the number at triple that amount. Also, state records show that $1 billion worth of exempted commercial rental properties owned by FONCEs are owned by non-resident investors.

In the midst of his effort to repeal the FONCE tax exemption, Bredesen is receiving little support from Gary Odom, House Democratic leader, Chip Forrester, new Chair of the Tennessee Democratic Party and himself an income tax proponent, and Bill Freeman, new state Democratic Party treasurer, who happens to be one of the beneficiaries of the exemption. Asked by Nashville’s Pith in the Wind whether he thinks lawmakers should close the loophole, Forrester replied,

"I really don't know." Forrester added, "[t]hat's sort of a legislative matter. . . and I think I'll stay out of the middle of that one." Forrester was asked about Freeman, and replied, "I haven't spoken with him. I'd be uncomfortable speaking for him on it until I know where he stands . . . I'd like to ask him first before I speak on his behalf. I'd be glad to talk to him and get back to you."

So, with Republicans lining up to oppose this repeal of a tax break for the rich and with Tennessee Democrats presented with a great opportunity to show voters that they represent working Tennesseans, the state Democratic Party Chair has decided to remain neutral on a bill proposed by a Democratic governor to make the rich pay their fair share of taxes. And what’s Forrester's rationale? Supporting the Governor’s plan to close the FONCE exemption might upset Freeman, Forrester’s new red-giving treasurer and bud of Odom. How can Forrester reconcile his support for an income tax with his apparent opposition to closing a tax loophole for the super wealthy. Aren't Democrats supposed to be for the little guy?

Bottom line: the chairman of the Tennessee Democratic Party, a man elected on the heels of President Obama’s sweeping “Change We Need” victory, won’t support a Democratic Governor, often maligned as too GOP-friendly, in his effort to close a tax loophole for the wealthy. If Forrester and Freeman are actually trying to patch up their on-going feud with Bredesen, me thinks this is not the way to go about it.

Jeff Woods over at the Nashville Scene is reporting that Democratic Party chair Chip Forrester allegedly “has put down the rebellion against his hand-picked treasurer, Bill Freeman.” Woods says that

one of Freeman's main antagonists on the party's executive committee, Larry Mullins, a Morristown farmer and businessman, says he's giving up the fight. Mullins helped circulate a resolution calling for Freeman's ouster for his history of giving to Republicans.

It should be noted, however, that the facts included in this report are a bit dated and other party insiders are not so sure the storm is over. The report refers to a conference call and states that during the call, no motion was made seeking Freeman’s resignation. Actually, the call was not an Executive Committee call at all, rather, it was between so-called “District Chairs” from the three Grand Divisions, and it occurred a week ago, before the resolution began circulating and before rank and file Democrats began calling the TNDP headquarters complaining about Freeman.

The fact is that most Democrats, even some Executive Committee members, are still unaware of Freeman's record of giving to the GOP. And I’m still hearing about it from Democrats at every Democrat meeting I attend as well as from rank and file Democrats everyday. A meeting is being organized for this Saturday morning by Democrats in East Tennessee who are seeking answers about Freeman. The purpose is to seek another Executive Committee vote, after giving every member a history of Freeman's giving to GOP candidates, or sign a resolution asking for Freeman's resignation or impeachment.

The report by Woods is being criticized by many in Nashville as Forrester’s latest spin on the story. Until the Executive Committee actually convenes another meeting, it would seem that rumors of an end to the so-called "rebellion" are premature.

Mullins stated:

“I just don't think there are enough people on the executive committee who are strong enough to stand up and do what's right."

If Freeman stays on-board, you’re likely to see a breach within the party that will not disappear until Forrester and Freeman are both gone, affecting the 2010 elections.

Jeff Woods at the Nashville Scene writes:

Democratic insiders are questioning whether new party treasurer Bill Freeman can withstand outrage over his history of campaign giving to Republicans. "All those contributions just look awful," one party executive committee member tells Pith. "This is just very contentious. This whole thing, it's like it's on steroids. I don't see how Freeman can hang on."

Party chair Chip Forrester, whose own support is tenuous, isn't strong enough to fend off Freeman's critics on the executive committee should they demand the treasurer's ouster, according to these sources. "Chip is a lightning rod in a ****storm," one insider says. If any of Forrester's dreamy supporters desert him over Freeman, Forrester would have little choice but to dump the real-estate developer, these sources say. "He just can't afford to lose any of his own people over this."

According to Woods, when asked if he would quit, Freeman responded: