Why Tennessee’s state and local governance are the ‘gold standard’

• John Knubel is an author of several books and a currentky resides in Franklin, Tennessee.

We moved to Tennessee in 2013 to follow a 55-year-long career in the federal government and financial services industry— as apart of my passion to pass on a responsible, accountable, sustainable and transparent federal government and prosperous America to my children and my grandchildren.

It’s been refreshing to watch Tennessee’s government move towards these goals, but it’s been depressing — frightening even — to watch the government move in the opposite direction in our nation’s capital.

While in the private sector, I witnessed why American capital markets are the world’s “gold standard.” I’m still focused on applying that same gold standard to our federal Government; responsible auditing and financial controls processes, among other things.

To give you a flavor of the importance of auditing: If an organization— for profit or nonprofit, State or local Government — failed to meet this fundamental standard of having financial statements with an acceptable opinion, it would be unable to borrow and issue stock. The organization would also be subject to an immediate investigation.  

I led the Department of Housing and Urban Development as chief financial officer and also helped the Department of Defense comply with the Chief Financial Officers Act as well. This act mandates this standard of audit accountability be applied to all of the federal Government.

It took over 20 years for the federal government to achieve this, simply because Congress voted in the law and failed to follow up.

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A better life in Tennessee

Life in Tennessee is better. It’s been refreshing to participate in Tennessee’s culture of responsible state and local governance.  

To watch a transpartisan partnerships between both party’s lead Tennessee compared to that inside the beltway where each party is governed by factions with each competing for power to satisfy their parochial goals rather than pursuing the long-term benefit of the nation as a whole.   

Ranking 38th out of 50 in per capita income, according to a recent survey done by the U.S. News and World Report, Tennessee is not a wealthy state. We rank relatively low in education, 33rd out of 50, despite noted progress with the Tennessee Promise and Tennessee Reconnect programs. 

In the categories that make the state an attractive place for the young and ambitious people, we’re ranked fairly high: opportunity 21st out of 50, economy 16th out of 50, infrastructure 17th out of 50 and fiscal stability third out of 50.   

On the all-important tax side, taxes have been eliminated. State and county taxes are levied on sales rather than income, which encourages saving and inhibits the willingness to work and growth. The result has been an influx of people from the high-tax states— governed by liberal governors— including California, Illinois, Connecticut and Maryland.

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Tennessee is on the road to sustainable growth

Tennessee’s growth is well above the national average in both population and wealth. 

Governor Lee’s latest State of the State message supports these healthy trends emphasizing the ‘Informed Citizen’, improved education — both academic and skill based — private sector growth and freedom from obsessive government regulation. The volunteer state remains a leader in creating positive change.  

This introductory article was designed to start a discussion of what Tennessee is doing right compared to the disturbing trends evident in our federal Governance, which is marching towards socialism.

Tennessee is on a road towards increasing sustainable growth while being held hostage to a federal Government going in the opposite direction.  A federal government that is debasing our currency while sowing the seeds of inflation. 

A federal Government that has borrowed excessively while sustainable private sector growth has deteriorated from 4.5% during the decade after World War II to less than 2.5% today. 

These trends may constitute a clear and present danger to America, our national security and the entire world order.  A threat little understood by the most vulnerable who will suffer the most, Americans under 40 and the unborn.  

John Knubel is an author of several books including “America in 2020 Still a Superpower? The Path to Success.” He is a Naval Academy graduate and held various positions in the federal government and served as a bank executive. He resides in Franklin, Tennessee.