Guber forum: Harwell and Boyd clash on ECD grants; Fitzhugh criticizes Dean

In a gubernatorial candidate forum Tuesday, House Speaker Beth Harwell promised, if elected, to reject any state-funded financial incentives for businesses moving into Middle Tennessee, reports The Tennessean. Fellow Republican candidate Randy Boyd, a former ECD commissioner, rejected the idea.

On the Democratic side, House Minority Leader Craig Fitzhugh criticized his primary opponent, former Nashville Mayor Karl Dean, on his handling of federal relief funding after a 2010 flood hit the city.

Harwell said that instead of providing state grants to the booming Nashville area, she would as governor focus on providing financial benefits to companies locating in rural areas.

Harwell’s answer came in response to a question about whether the state should do more to help the less populated areas of Tennessee.

The other candidates, which also included Knoxville entrepreneur Randy Boyd and Williamson County businessman Bill Lee — both Republicans — and Fitzhugh and Dean, all agreed rural areas need more help from the state.

Lee said the state’s rural areas are at risk of “losing a way of life” without action by the next governor, while touting a plan he introduced earlier in his campaign.

Fitzhugh said he would like to ask students what it would take to bring younger generations back to Tennessee.

In a follow up interview, Boyd said he completely disagreed with Harwell’s plan to halt incentives for businesses looking to move to Middle Tennessee

“A company that’s looking to open a thousand person office in downtown Nashville isn’t choosing between downtown Nashville and Ripley. They’re choosing between Nashville and Atlanta,” he said. 

Harwell doubled down, saying the state didn’t offer incentives to businesses to come to Nashville while rejecting the notion that such a policy would prevent a company like Alliance Bernstein, which last week announced it was relocating to Nashville, from coming to the Volunteer State.

Harwell said the company decided to come because lawmakers changed the tax code, which she said was different than offering incentives. (The company also is receiving $17.5 million in state incentive money. Previous post HERE.)

U.S. Rep. Diane Black, R-Gallatin, was the lone top-tier candidate to not attend Tuesday’s forum.

… Among the few differences between Dean and Fitzhugh came when Fitzhugh said he was “shocked” when he read that federal money was used to pay for an outdoor music facility.

“That’s where we lose the public trust,” Fitzhugh said.

Dean said the minority leader was wrong.

“We went through a natural disaster after a great recession and this city came together in a way and perhaps he can’t understand but we got back up on our feet,” Dean said to rare applause from the audience.

Note: The Fitzhugh campaign also sent out a news release on Dean and the flood money. Here it is:

Nashville, TN – At tonight’s televised gubernatorial debate, Minority Leader Craig Fitzhugh called on former Nashville Mayor Karl Dean to explain his administration’s decision to divert $7.4 million in federal disaster relief away from 2010 flood victims and toward the construction of the Ascend Amphitheatre in downtown Nashville.

Earlier this month, WSMV (Nashville NBC affiliate) reported on an investigation in to how the Dean administration diverted $7.4 million dollars from the HUD Disaster Relief fund toward the construction of a new downtown amphitheater along the Cumberland River. The WSMV report shared the story of flood victims who never got the help they needed and exposed how the Dean administration diverted millions in disaster relief by apparently misleading Metro Councilmembers about the intended use of the funds.

Official Statement from Minority Leader Craig Fitzhugh

“With all due respect, building a riverfront attraction with disaster relief does not fit my definition of fiscal responsibility,” said Minority Leader Craig Fitzhugh. “I was disappointed to hear how the Dean administration abandoned flood victims in order to divert over seven million dollars in disaster relief to corporate cronies, contractors and consultants who had cozy relationships with the administration.

“These funds were specifically designated to help 2010 flood victims with down payment assistance, rehab assistance and neighborhood clean-up. 52 counties across West and Middle Tennessee were declared federal disaster areas, including rural areas like Lauderdale County where I am from. There were homeowners who needed help and didn’t get it, people who drained out retirement accounts waiting for help that never arrived.”

“Taxpayers deserve to know their tax dollars are being used as intended, not diverted off to political cronies. As your next governor, I will insist on full transparency when it comes to spending your tax dollars, because I know who pays the bills. You deserve a governor you can trust, plain and simple.”

5 Responses to Guber forum: Harwell and Boyd clash on ECD grants; Fitzhugh criticizes Dean

  • Avatar
    James White says:

    “Beth Harwell promised, if elected, to reject any state-funded financial incentives for businesses moving into Middle Tennessee,” … as the House leader, why didn’t she stop all of sate-funding (our taxes) given to any and all businesses moving to Tennessee ?

  • Avatar
    Doug Gilbert says:

    Speaker Harwell does not control the voting members. If they vote for these incentives she can not stop that. Majority rules

  • Avatar
    James White says:

    She at least could have voted no.

  • Avatar
    Kay White says:

    I agree that a Governor does not make the laws but has a great deal of influence on many of the legislators. We need businesses in Tennessee and if it takes Tax Incentatives to lure them here, I can only hope that we can also provide the businesses with qualified workers. This is all the more reason that we need to incorporate more trade skills into our high schools. Lets be ready and lets show the businesses willing to look at Tennessee, all of the options! The Location is their choice!

    About Dean using the money allotted for disaster relief for victims – Fitzhugh is CORRECT! An immediate investigation should be launched into this action. Also I would suggest that those in need band together and bring a “Class Action” lawsuit against Dean. This is nothing short of stealing! This is more crooked politics and we sure do not need any more of this in Tennessee – we have seen enough of the political force with the Gas Tax, unfair testing and incorporation of Common Core in our “Peerson Publishing” format downloaded into our “Microsoft” notebooks in all of our schools – funny thing that Gov. Haslam and Bill Gates are friends of a sort? Think on this! Peerson Publishing is located in Great Britian, check out who owns them! Wake up Tennesseans!

  • Avatar
    James White says:

    We do not need trade skill in High School. We need to Educate. If businesses need trade schools, let them maintain them. It is NOT the purpose of government to train you to be an employee.

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