Department of General Services asks committee to approve $517.5 million in FY27 capital outlay requests
March 17, 2026 | 2026 Legislature TN, Tennessee
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The Department of General Services presented its FY2027 capital outlay request to the Senate Finance, Ways and Means Committee on March 17, asking for a total of $517,500,000 for capital improvements and maintenance.
Commissioner Andy Kidd and deputy staff described the package: 15 capital improvement projects totaling $467,800,000 and 15 capital maintenance projects totaling $49,700,000. The department highlighted a $165,000,000 project to construct five new welcome centers and four new rest areas and to renovate additional facilities. The presentation also spotlighted new state park projects (Buffalo River Blue Way State Park Visitor Center, David Crockett Birthplace reconstruction, Roaring Creek Visitor Center/McDonald Farm), a renovation of 220 French Landing, demolition of an old tuberculosis-era state lab tied to a new state lab opening, and an armory aviation support facility to relocate the Army National Guard's aviation unit to Smyrna.
Officials described cost pressures from construction inflation and presented procurement and bidding data: recent years show more bidders on state projects and improved award rates (roughly 88–91%), which the department said indicates projects are being funded to better match future award needs. Presenters said some projects will generate operating savings (for example, moving the Department of Children's Services out of a leased UBS building could save about $1.2 million annually).
Committee members asked for a location list for the welcome centers and more detail about the armory project (including why BNA would not renew a lease) and pressed whether STREAM project delivery and the State Building Commission policies constrain faster delivery methods. Department officials said they would provide location lists, that design-build methods could be considered but are governed by building commission policies, and that they will look at process improvements to reduce delays.
The committee did not vote on the capital package at the hearing and scheduled further consideration as part of ongoing budget work.
Commissioner Andy Kidd and deputy staff described the package: 15 capital improvement projects totaling $467,800,000 and 15 capital maintenance projects totaling $49,700,000. The department highlighted a $165,000,000 project to construct five new welcome centers and four new rest areas and to renovate additional facilities. The presentation also spotlighted new state park projects (Buffalo River Blue Way State Park Visitor Center, David Crockett Birthplace reconstruction, Roaring Creek Visitor Center/McDonald Farm), a renovation of 220 French Landing, demolition of an old tuberculosis-era state lab tied to a new state lab opening, and an armory aviation support facility to relocate the Army National Guard's aviation unit to Smyrna.
Officials described cost pressures from construction inflation and presented procurement and bidding data: recent years show more bidders on state projects and improved award rates (roughly 88–91%), which the department said indicates projects are being funded to better match future award needs. Presenters said some projects will generate operating savings (for example, moving the Department of Children's Services out of a leased UBS building could save about $1.2 million annually).
Committee members asked for a location list for the welcome centers and more detail about the armory project (including why BNA would not renew a lease) and pressed whether STREAM project delivery and the State Building Commission policies constrain faster delivery methods. Department officials said they would provide location lists, that design-build methods could be considered but are governed by building commission policies, and that they will look at process improvements to reduce delays.
The committee did not vote on the capital package at the hearing and scheduled further consideration as part of ongoing budget work.
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