Finance committee hears budget amendment from Finance & Administration outlining nonrecurring investments in housing, health, safety and technology

NASHVILLE — The Tennessee Department of Finance & Administration presented a budget amendment to the House Finance, Ways and Means Committee on March 24 that relies largely on nonrecurring revenues and includes a mix of program, public-safety and capital investments.

"We expect to hit our $19,220,000,000 in general fund taxes and be right at that number," Commissioner Jim Bryson told the committee, characterizing current fiscal assumptions as slow but steady growth. Bryson introduced Director David Thurman and Assistant Director Alex Heumann before the department walked members through the amendment.

Key line items and commitments in the amendment include:
- Education: renewal of K–12 school-safety grants distributed on an ADM basis and funding to keep Imagination Library book distributions at current levels; a higher-education cybersecurity partnership with Middle Tennessee State University.
- Housing: a Department of Disabilities and Aging pilot housing assistance grant using $1,000,000 from DDA reserves matched by $1,000,000 in private funds to develop several homes for individuals with disabilities, leased at or below 80% of fair-market rent for at least 10 years. "We would put in $1,000,000 from their reserves...the developer would put in $1,000,000," Bryson said; Director David Thurman added the program would likely create five or six homes.
- Health and social services: $20,000,000 to cover increased reimbursements to rural health clinics at 100% of cost (a federally determined designation), additional staffing funding for the Health Facilities Commission using CMP reserves, $10,000,000 for Tennessee Strong Family Pregnancy Center grants, and funding to offset burial and disposition costs for stillborn children.
- Public safety: $9,700,000 for the Tennessee Safe initiative (a coordinated statewide task force), restoration of House of Worship security grants, and 32 statewide TBI positions for intelligence analysts and law-enforcement support.
- Technology and capital: $2,200,000 for a new lab information system to replace one sunsetting December 2026, recruiting software for DOHR, DHS user-acceptance testing and AI improvements for customer service, and an additional $23,000,000 to extend a quantum network connecting Chattanooga and the University of Tennessee, Knoxville. Capital items include a likely Montgomery County bridge replacement to serve a major economic site and a Bicentennial Mall history wall update.

Committee members pressed for more detail on reserves and recurring impacts. "Current reserve is about $6,000,000 right now," Assistant Director Alex Heumann said when asked about DDA reserves. Commissioner Bryson said TennCare shared savings used in the amendment total $281,800,000 and cautioned those shared‑savings dollars have been treated as nonrecurring in prior years: "The shared savings has been running around $300,000,000 a year over the last few years...those were all nonrecurring dollars because we don't know how long we'll see those year in and year out."

On infrastructure, Bryson said a recently discovered federal determination flagged a Montgomery County bridge as not having adequate weight-bearing capacity; the amendment includes funding to make the facility's transportation access possible for a nearby large economic investment.

Members also questioned audit costs (Shelby County Schools audit) and bond-servicing capacity; Bryson said staff would provide follow-up figures. The commissioner closed by thanking the committee and staff and noted it may be his last appearance in that role before personnel changes.

What happens next
Committee members requested follow-up materials on several items (DDA reserves, details on stillborn funding, Shelby County Schools audit totals, and confirmation on bridge replacement scope). The AA will be incorporated into the budget process as the legislature moves toward final budget votes.