2002 Tennessee Gubernatorial Election
Hilleary was considered a logical choice for the Republican gubernatorial nomination in 2002, withstanding a challenge from the party's moderate wing made by Jim Henry, former minority leader in the Tennessee House of Representatives and former mayor of Kingston. Henry's race was largely supported and financed by members of the inner circle of unpopular outgoing GOP governor Don Sundquist, a fact resented by many grassroots activists, and Hilleary defeated him by a wide margin.
Hilleary's opponent in the general election was Phil Bredesen, a multimillionaire former mayor of Nashville. At first, Bredesen agreed to be bound by a relatively new Tennessee state law limiting the amount of money one could contribute to one's own campaign for elective office. However, the state attorney general subsequently issued an opinion that such a law was unconstitutional and hence unenforceable, as the United States Supreme Court had previously ruled a similar federal law with regard to federal campaigns. Faced with huge and potentially overwhelming resources against him, Hilleary reversed his previous position on PACs and began to actively solicit donations from them.
One of the major issues of the race was TennCare, the huge state-supported managed care program that had supplanted Medicaid in Tennessee. Hilleary displayed a high level of knowledge about this issue in a debate between the two, despite the fact that Bredesen had made most of his fortune as a managed health care executive. However, polling seemed to indicate that one of the major factors with public support of Bredesen was his knowledge of this issue. Bredesen was also a moderate Democrat; Republican charges against "ultra-liberal Democrats" could not be made to stick to him with any real degree of success. Another problem for Hilleary was that Bredesen showed himself able to raise support in East Tennessee (Hilleary's home region) far more readily than could previous Democratic candidates, especially considering that Bredesen was from Nashville. In addition, questions were raised regarding Hilleary's performance as a member of the House Budget Committee.
Hilleary nonetheless received over 48% of the vote. Bredesen defeated him largely by doing far better than expected in heavily Republican East Tennessee. For instance, Bredesen carried Knox County, the largest county in East Tennessee, by a few hundred votes; in contrast, George W. Bush won Knox County two years later by over 40,000 votes.
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