Committee shortens extension for Tennessee State Veterans Home Board, cites audit follow-up
March 18, 2026 | 2026 Legislature TN, Tennessee
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The Tennessee Senate Government Operations Committee voted March 18 to adopt an amendment to Senate Bill 1562 that reduces the length of a statutory extension for the Tennessee State Veterans Home Board and to forward the amended bill to the Senate calendar.
As introduced, the bill extended the board through June 30, 2029, and required the board to report back to the Government Operations Committee by Dec. 31, 2026, on progress addressing findings in a December 2025 performance audit. The committee adopted amendment 015742, which reduces the extension period from three years to two years to allow more frequent oversight and a closer fiscal review.
Panel testimony and audit context: Ed Harris, executive director of Tennessee State Veterans Homes, thanked auditors and summarized the homes' response to six audit findings. He described high occupancy at most homes (about 90–91% at Murfreesboro compared with a statewide nursing-home average of about 73%) and said the Cleveland home produced large losses because certification and construction delays prevented billing. Harris told the committee that, for the Cleveland situation, "we have $4,300,000 in expenses and we only have $583,000 in revenue," which he attributed to delayed certification.
Harris said that if the Arlington facility opens without the certification delays that affected Cleveland, the system should be "in the black" entity-wide and estimated substantial completion of Arlington around June 21, with first residents roughly 30 days after turnover, subject to completion of safety fixes and federal recognitions by CMS and the VA. He also stated that project funding was allocated about three years ago, with roughly 35% of project funds from state/local partners and 65% from the U.S. Department of Veterans Affairs.
Committee action: The clerk recorded a unanimous 9–0 vote to place the amended SB 1562 on the calendar. Chairman Jackson and committee members said they would bring the matter back in two years for review and thanked the veterans' representatives for their work.
What's next: The amended bill moves to the Senate calendar; committee members required the board to report back by Dec. 31, 2026, on progress addressing audit findings.
As introduced, the bill extended the board through June 30, 2029, and required the board to report back to the Government Operations Committee by Dec. 31, 2026, on progress addressing findings in a December 2025 performance audit. The committee adopted amendment 015742, which reduces the extension period from three years to two years to allow more frequent oversight and a closer fiscal review.
Panel testimony and audit context: Ed Harris, executive director of Tennessee State Veterans Homes, thanked auditors and summarized the homes' response to six audit findings. He described high occupancy at most homes (about 90–91% at Murfreesboro compared with a statewide nursing-home average of about 73%) and said the Cleveland home produced large losses because certification and construction delays prevented billing. Harris told the committee that, for the Cleveland situation, "we have $4,300,000 in expenses and we only have $583,000 in revenue," which he attributed to delayed certification.
Harris said that if the Arlington facility opens without the certification delays that affected Cleveland, the system should be "in the black" entity-wide and estimated substantial completion of Arlington around June 21, with first residents roughly 30 days after turnover, subject to completion of safety fixes and federal recognitions by CMS and the VA. He also stated that project funding was allocated about three years ago, with roughly 35% of project funds from state/local partners and 65% from the U.S. Department of Veterans Affairs.
Committee action: The clerk recorded a unanimous 9–0 vote to place the amended SB 1562 on the calendar. Chairman Jackson and committee members said they would bring the matter back in two years for review and thanked the veterans' representatives for their work.
What's next: The amended bill moves to the Senate calendar; committee members required the board to report back by Dec. 31, 2026, on progress addressing audit findings.
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