State Funding Board Adopts Revenue Estimates for Upcoming Year

From a press release:

The State Funding Board reached consensus Friday on the State’s revenue estimates for fiscal years 2010 and 2011. The board expects the revenue growth rates to range between -1.50% and -0.25% for fiscal year 2010 and 1.7 percent to 2.2 percent for fiscal year 2011.

The Funding Board’s revenue estimates are used by the administration and legislature in determining steps necessary to close the current year budget, ending June 30, 2010, and in preparing the budget for state government for the new fiscal year beginning July 1, 2010. The estimates are based on the assumption that there will be no increases or decreases in the state’s tax rates or its schedule of fees, fines or other charges.

On Monday, Funding Board members heard presentations from the Tennessee Department of Revenue, the General Assembly’s Fiscal Review Committee and Tennessee economists representing the three grand divisions of the state about their expectations for the revenue situation over the next fiscal year.

Following those presentations, the Funding Board staff worked throughout the week to develop a consensus for revenue estimates. Funding Board members chose to take a cautious approach.

“Estimating the state’s revenues is one of the most difficult tasks that we have,” said Comptroller Justin P. Wilson, who serves as the Funding Board’s Secretary. “But it’s also one of the most important tasks we have. We want these numbers to be as accurate as they possibly can be, given all of the unknown variables that go into economic forecasting.”

“With this economy, it is difficult to predict what’s going to happen this week, much less six to 18 months into the future,” said Treasurer David H. Lillard Jr., another Funding Board member. “There is some consensus that the economy is in the process of rebounding, but it is possible the recovery of state tax revenues will be constrained for a longer time because credit is tight for individuals and small businesses and the rate of personal savings is still high. Because of that uncertainty, I think most Tennesseans would agree it is prudent to be cautious in forecasting our estimates.”

“The Funding Board will continue to closely monitor Tennessee’s tax revenues each month. Another meeting will be held in the spring to review and possibly revise the estimates if conditions warrant that prior to final adoption of the Fiscal Year 2011 budget,” said Secretary of State Tre Hargett, another Funding Board member.

The Funding Board also estimated that the state lottery’s revenues will experience little to no growth over the next four fiscal years. The Board agreed on a range of lottery revenue projections that call for 0 percent to 1 percent growth through the fiscal year that ends June 30, 2014.

In addition to Wilson, Lillard and Hargett, the Funding Board members are Governor Phil Bredesen and Finance and Administration Commissioner David Goetz.

TN SCORE Announces Statewide Gubernatorial Forum on Education

The Tennessee County Commissioners Association is partnering with the Tennessee State Collaborative on Reforming Education (SCORE) and other partners to host next year's first statewide gubernatorial forum, focusing on education and economic development. The forum will be held on January 14, 2010, at 7:00 p.m. central time at the Curb Event Center on the Belmont University campus in Nashville. The forum will be broadcast live on CBS affilaites across the state.

If you are interested in attending this event in person, please contact me. Attendance will be limited, but our association will be able to provide tickets to interested officials.

Comptroller Extends Comment Period on Proposed Policy for Local Government Debt Management

Comptroller Justin P. Wilson has extended the deadline for providing public input on a model debt management policy for local governments until Jan. 8, 2010. Wilson initially set mid-December as a tentative deadline for collecting comments, but decided to extend the timetable a few more weeks to give people more time to respond.

After collecting more input from citizens, Wilson plans to submit a proposed model debt policy to the State Funding Board for consideration. If the Funding Board adopts the model debt policy, local governments throughout Tennessee may be required to develop and adopt debt policies of their own that are consistent with the model.

Wilson expects the model debt policy to make it easier for citizens and members of local governing bodies to get details about debt transactions, including the relationships between the parties involved in the transactions.

Wilson also expects the model debt policy to have provisions prohibiting an individual or company from representing more than one party in a local government bond transaction. For example, a local government’s financial advisor would be banned from also serving as the local government’s bond underwriter or bidding on the debt.

And Wilson expects all fees, relationships and contracts between companies, their employees and independent contractors to be disclosed under the new policy.

The full notice from the Comptroller can be viewed here. The notice includes a link to the proposed debt management policy.

Tennessee Unemployment Rate Down Slightly

Commissioner of Labor and Workforce Development James Neeley announced this week that Tennessee's unemployment rate for November was 10.3%, down 0.2% from October's rate.

For more details click here.

Special Session Planned on Education

In a press conference today, Gov. Bredesen announced plans to call the legislature into a special session in January to address education issues related to both k-12 education and higher education. The General Assembly was scheduled to reconvene in regular session on January 12. Now, when they return, the plan is to go immediately into a special session. The timing of the session is dictated by a need to have certain reforms in place in order to make application to the Federal Government for the so-called "race to the top" funds. According to the Governor, there are certain provisions in the law related to use and availability of data and the overall teacher evaluation process that need legislative changes in order to best position Tennessee to receive grants from this special Federal allocation. At stake is a potential grant in the hundreds of millions of dollars to Tennessee to advance reforms around four specific areas:

•Adopting standards and assessments that prepare students to succeed in college and the workplace and to compete in the global economy;
•Building data systems that measure student growth and success, and inform teachers and principals about how they can improve instruction;
•Recruiting, developing, rewarding, and retaining effective teachers and principals, especially where they are needed most; and
•Turning around our lowest-achieving schools.

For more information on Race to the Top, click here.

During his press conference, the Governor also indicated that the special session will include issues related to improving graduation rates in higher education institutions. These issues do not have the same short deadline as they are not related to the Race to the Top application. At any rate, it will require rapid action on behalf of the General Assembly to convene, get these proposals through education committees and subcommittees and voted on by the membership by the 19th.

Governor Expected to Call For Special Session

Governor Bredesen has called a press conference for this afternoon. He is expected to announce a call for a special legislative session to commence immediately upon the return of the General Assembly in January. Although there had been discussion that a special session could be called related to Worker's Compensation changes about to take effect, it is believed this call will relate to education reforms designed to position Tennessee better in the "Race to the Top" for additional Federal education dollars for innovation in K-12 education.

Court of Appeals Decision on E-mail and the Open Meetings Act

In a judicial challenge to a zoning decision by the Metro Nashville Council, plaintiffs challenged that the open meetings act was violated in part by metro council member e-mail correspondence related to the issue. The Court of Appeals found that the email correspondence constituted a violation of the Open
Meetings Act, but the legislative body engaged in a “new and substantial reconsideration” of the issues in the final meeting so as to cure the violation.

For a copy of the court's full decision, click here:
here.

Tennessee Waste Tire Task Force

Related to the post below, the TN Department of Environment and Conservation has been conducting a task force to look at issues relates to waste tire management. The task force has met twice this year. The department has a website related to the task force where you can find more information about this project and possible outcomes.


http://www.state.tn.us/environment/swm/tires/taskforce/

EPA Waste Tire Findings

Limited EPA Study Finds Low Level of Concern in Samples of Recycled Tires from Ballfield and Playground Surfaces

WASHINGTON - The U.S. Environmental Protection Agency has released results of a limited field monitoring study of artificial-turf playing fields and playgrounds constructed with recycled tire material or tire crumb. The study was intended to gain experience conducting field monitoring of recreational surfaces that contain tire crumb. EPA will use the information to help determine possible next steps to address questions regarding the safety of tire crumb infill in recreational fields.

"The limited data EPA collected during this study, which do not point to a concern, represent an important addition to the information gathered by various government agencies," said Peter Grevatt, director of EPA's Office of Children's Health Protection. "The study will help set the stage for a meeting this spring, where EPA will bring together officials from states and federal agencies to evaluate the existing body of science on this topic and determine what additional steps should be taken to ensure the safety of kids who play on these surfaces."

Recycled tire material, or "tire crumb," is used in many applications, including as a component in synthetic turf fields and playground installations. In response to concerns raised by the public, EPA conducted a limited "scoping study" of tire crumb, which consisted of collecting air and wipe samples at three locations near EPA laboratories at Raleigh, N.C., Athens, Ga., and Cincinnati, Ohio. Sampling also was conducted in the Washington, D.C. area.

The limited study, conducted in August through October 2008, found that the concentrations of materials that made up tire crumb were below levels considered harmful. However, given the limited nature of the study (limited number of constituents monitored, sample sites, and samples taken at each site) and the wide diversity of tire crumb material, it is not possible, without additional data, to extend the results beyond the four study sites to reach more comprehensive conclusions.

The study confirmed that most of the methods tested were accurate, reproducible and appropriate for measuring concentrations of tire crumb constituents and therefore can be used in future studies.

Study findings
Particulate matter, metals and volatile organic compound concentrations were measured in the air samples and compared with areas away from the turf fields (background levels). The levels found in air samples from the artificial turf were similar to background levels. No tire-related fibers were observed in the air samples. All air concentrations of particulate matter and lead were well below levels of concern. More than 90 percent of the lead in the tire crumb material was tightly bound and unavailable for absorption by users of the turf fields. Zinc, which is a known additive in tires, was found in tire crumb samples. However, air and surface wipe monitoring levels of zinc were found to be below levels of concern. EPA is aware that studies by other agencies were undertaken or completed while this survey was under way. EPA is planning a 2010 meeting with federal and state agencies to review all new study data and determine next steps.

For more information on artificial turf follow this link: http://www.epa.gov/nerl/features/tire_crumbs.html

Changes Coming to Governmental Fund Balance Reporting

The Division of County Audit recently sent our association a memorandum detailing the impact of a new Governmental Accounting Standard that is effective for fiscal year July 1, 2010 to June 30, 2011. GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, must be taken into account as you begin preparing your next budget in the spring of 2010. This leaves a very short window of opportunity for county governments to prepare for implementation. GASB Statement No. 54 will affect all county governments in the State of Tennessee regardless of size or complexity.

GASB Statement No. 54 will have a significant effect on the operations of county governments in the following ways:

1. The definitions and titles of all fund balance classifications currently in use are changed. Use of the words “reserves”, “designations”, and “undesignated fund balance” will no longer be acceptable. These old and familiar terms will be replaced by the terms Nonspendable, Restricted, Committed, Assigned, and Unassigned. Each of these new classification terms has a specific definition. The Uniform Chart of Accounts will need to be changed to accommodate these changes. This in turn will affect the monthly and annual closing process.
2. The definitions of special revenue funds and debt service funds have changed. This means that in some counties, a limited number of special revenue funds may need to be closed and combined with the General Fund. Direct purchases of capital assets from a Debt Service Fund will not be permitted.
3. In most cases, Rainy-Day Funds will need to be closed into the General Fund.
4. Encumbrances will no longer be presented as a reservation of Fund Balance.
5. The county’s policies for classifying revenues as restricted, committed, or assigned will need to be developed and disclosed in the notes to the financial statements.
6. When auditors find it necessary to propose significant audit adjustments to correct fund balances not properly classified under Statement No. 54, auditing standards require that the auditor publish the misstatement as a material weakness in internal control.

The intent of GASB Statement No. 54 was to enhance the usefulness of fund balance information by requiring all local governments to utilize the same classifications and definitions for reporting purposes. An important secondary effect will be to limit the number of special revenue funds that counties establish and to encourage the use of the General Fund to account for routine government operations.

In accounting literature, County Commissioners are described as “those charged with governance”. Those charged with governance” is further defined as “the person(s) with responsibility for overseeing the strategic direction of the entity and obligations related to the accountability of the entity”. County Commissioners who take their oversight responsibilities seriously will need to lead their governments through the implementation of GASB Statement No. 54. At a minimum, County Commissioners should require that financial managers (County Mayors, Finance Directors, Highway Superintendents, Directors of Schools, etc.) receive training related to Statement No. 54 and that these managers report to the county commission about the status of the implementation process. Both the Division of County Audit and the County Technical Assistance Service are available as resources to assist county governments in compliance with this new standard.

Department of Treasury Announces 2010 Employer Seminars for Local Governments Participating in TCRS

The Tennessee Consolidated Retirement System (TCRS) performs actuarial valuations every two years for participating political subdivisions. In an effort to help these political subdivisions understand the employer rate changes and additional information about TCRS, seminars are behing held across the state in January. Dates and Locations for these meetings are as follows:

January 13 - Jackson City Hall
January 14 - Henry County Medical Center
January 21 - Cookeville City Hall
January 22 - Williamson County Agriculture Center
Janaury 26 - Jonesborough Visitor Center
January 27 - Sevierville Civic Center
January 28 - Chattanooga State Office Building

Gov. Bredesen Names Gayle Ray as Commissioner of Corrections

Last week, Governor Phil Bredesen appointed Gayle Ray to be the next Commissioner of the Department of Correction. Ray will assume her new role on January 1, 2010, following the departure of current Correction Commissioner George Little, who announced he will leave Bredesen's cabinet on December 31 to become chief administrative officer for newly-elected Memphis Mayor AC Wharton. Ray currently serves as deputy commissioner in the Department of Correction. She served as Davidson County sheriff from 1994 to 2002.

Business Tax Administration Shifts to Department of Revenue

This past legislative session, the 106th General Assembly enacted Public Chapter 530, shifting the administration and collection of business tax from local municipalities and counties to the Department of Revenue. With this change, the Department of Revenue will use its resources and experience in tax administration to collect the business tax. The hope is that this shift will result in greater efficiency in the collection process and increased revenue for the State and for local governments.

“This undertaking is a true partnership between state and the local governments,” said Commissioner Reagan Farr. “While increasing revenue through improved tax compliance, we also plan on simplifying the tax process for business owners including developing a new, simplified tax return and initiating major education programs.”

Beginning with Classification 1 taxpayers, due Feb. 28, 2010, all business tax returns will now be filed with the Tennessee Department of Revenue. Businesses will continue to obtain business licenses from the county clerks and/or municipal officials.

The Department of Revenue is working closely with local municipalities and counties to make this transition a smooth process. The department is currently gathering registration data from the counties and cities to register the business owners and mail out tax returns by the end of 2009. More information is available at the Department of Revenue’s Web site www.TN.gov/revenue.

County Officials Meet with the Governor to Discuss Upcoming Year

The following link connects you to an article from the Sparta Expositor that reports on a meeting of a small contingent of county officials with Governor Bredesen. The county officials met to discuss state and local government fiscal challenges as the Governor begins preparing what is expected to be a very challenging budget. Past TCCA President Wallace Austin (White County Commissioner) attended the meeting to represent county commissioners and is quoted in the article.

To read the full story, click here.

National Article on Consolidation of Local Governments

Click here

to access an article in the USA Today newspaper reporting on new efforts under consideration to consolidate local governments as a cost saving measure during dire economic times.

Commissioner Little to Leave Post at Department of Corrections

NASHVILLE - Governor Phil Bredesen announced today that George Little, commissioner of the Tennessee Department of Correction, will leave his Cabinet position effective December 31, 2009. Bredesen appointed Little in October 2005.

Statement from Commissioner George Little:

"It has been a pleasure to serve the citizens of Tennessee and Governor Bredesen as the Commissioner of Correction for the past four years. Under the Governor's leadership, the department has made tremendous progress in ensuring public safety and restoring the public's confidence in state government. I appreciate the opportunity to have been a part of this administration and to contribute to its accomplishments.

"I am honored to have worked alongside a talented and dedicated team of correctional system professionals. I know they will continue to efficiently manage the facilities and programs that house, supervise and rehabilitate convicted offenders in Tennessee."

Statement from Governor Phil Bredesen:

"Commissioner Little has guided the Department of Correction with a thoughtful, professional and steady hand, and I appreciate his service to the state of Tennessee. Over the past four years, he has led the department through a number of initiatives to keep our communities safe while fulfilling its mission to manage the state's correctional system.

"George has been a valuable member of my Cabinet and I wish him well in his future endeavors.

"We will immediately begin the process of identifying a highly-qualified candidate to succeed him in this important role. I am committed to continuing the progress he and his team have accomplished as we move through this transition and prepare to address the challenges that face the department and the state of Tennessee."

GASB 34 Compliance - Message from the Comptroller

Comptroller Justin Wilson recently addressed the TN General Assembly to notify members of an accomplishment by local governments in Tennessee:

"I want to share the good news that, thanks to the hard work and dedication of the General Assembly and local government officials, Tennessee is now one of the very few states where there is 100 percent compliance by local governments with the Governmental Accounting Standards Board (GASB) Statement No. 34. All local governments in Tennessee are now in compliance with this standard. This is a milestone achievement and should be a source of pride for all Tennesseans.

The purpose of GASB Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments, was to make government financial statements more user-friendly for people who access government financial information, to help states and local governments make better operating decisions and to make it easier to compare financial information from different state and local governments.

The Government Accounting Standards Board is responsible for establishing accounting standards for state and local governments in the United States. GASB Statement No. 34 was issued in June 1999 and is considered one of the most far-reaching – if not the most far-reaching – accounting standard ever issued by GASB. This standard is extremely detailed and difficult to implement.

The State of Tennessee implemented Statement No.34 for the fiscal year ended June 30, 2002, as required by the standard. However, due to the complexity of the standard, many local governments in Tennessee had difficulty complying and weren’t able to present financial statements in conformity with generally accepted accounting principles (GAAP).

In 2003, my predecessor as Comptroller, John Morgan, suggested a process for helping local governments achieve compliance with GASB Statement No. 34 and in May 2004 the General Assembly established a special joint committee that focused on financial accounting and reporting standards. The committee recommended legislation, later approved by the General Assembly, known as the Local Government Modernization Act of 2005. The purpose of the legislation was and is to ensure that local governments in Tennessee maintain adequate accounting records and comply with GAAP. Compliance with GAAP would help ensure local governments maintain their bond ratings.

When I became Comptroller, I made 100 percent compliance a priority of this office. As of June 30, 2009, every county and city in Tennessee has implemented this standard, a remarkable accomplishment for which each and every Tennessean can be proud.


Please join me in extending our congratulations to our local governments and officials."

Lawsuits Over Determination of Bail in Tennessee Counties

Several counties in Tennessee have been sued over the process used to determine bail. A federal district judge in Nashville granted class action status to the group of plaintiffs. The lawsuit alleges that bail is not being determined on an individual basis and is therefore arbitrary. For more on this legal action, see the USA Today article here.

Energy Efficient Schools Initiative

Grants from the Energy Efficient Schools Initiative (EESI) have been announced. According to this article from the Chattanooga Times Free Press, Rhea and Polk County are among those receiving grants. The EESI is funded with $90 million in excess lottery money. This initiative was supported by TCCA and other county associations two years ago when it passed the General Assembly.

For more information about the EESI, see the Department of Education's website www.tn.gov/eesi/.

Tracking National Unemployment

The link listed below connects you to a telling map that tracks unemployment rates by county throughout the nation from January of 2007 to September of 2009.


http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html

State Budget Hearings Concluded Yesterday

The Governor's preliminary budget hearings concluded yeterday afternoon. We are working through the presentations to identify areas that could potentially impact county government. As has been noted before, to access streaming audio and video of the hearings, go to http://www.tennesseeanytime.org/gov/budget/.

Comptroller's Update on Revenues

The State Comptroller's office has issued an update on the state's tax collections reflecting October's figures. That report is posted on our main website here:
http://www.tncountycommissioners.org/files/Investor_Update_November_2009.pdf

Archived reports are available through the Comptroller's site:

http://www.tn.gov/comptroller/

The reports are under the tab for "Investor Information" and are arranged by fiscal year.

Tennessee Behind in Revenue, but It Could Be Much Worse

According to a nationwide survey of states, Tennessee is one of at least 35 states that are behind in revenue collections during this budget year. However, Tenessee's revenue gap is only 0.7% of the general fund budget. Of those states experiencing a gap, only Florida has a smaller gap at 0.6%. Arizona was worst at 20.5%.

For the full report, go to the Center on Budget and Policy Priorities website at this link: http://www.cbpp.org/cms/?fa=view&id=711

NACo Publications on County Economic Status

According to the National Association of Counties, the nation’s midsize and smaller counties are experiencing the full effects of the down economy and are struggling to cope with declining revenues. The latest survey results published by NACo can be accessed here The survey includes responses from three Tennessee Counties: Campbell, Gibson and Scott.

Nearly half of the responding counties, 47 percent, said that their anticipated budget shortfall was worse than expected and 4 out of 5 respondents (82 percent) said the shortfalls will continue into their next fiscal year. Further, the survey showed that counties are taking any and all actions to cope with sharply declining revenues – from travel restrictions and delaying purchases to more drastic actions such as cutting services, increasing taxes, furloughs and layoffs.

One hundred thirty eight counties from 34 states responded to the survey in late October sent randomly to 1,500 counties across the country. The sample group was made up primarily of midsize to smaller counties by population. The survey showed how counties are taking an “all of the above” approach to address shrinking revenues and continue to provide essential public services. For example, less severe budget actions counties are taking include:

• delaying purchases or repairs (60 percent of responding counties);
• delaying capital investments (54 percent);
• use of rainy day/reserve funds (44 percent);
• travel restrictions (41 percent); and

However, a significant number of responding counties said they are taking more severe actions to cope with declining revenues, including:

• salary and/or pay freezes (59 percent);
• hiring freezes (49 percent);
• increasing property taxes (15 percent).
• layoffs (26 percent); and
• furloughs (12 percent).

Other actions include renegotiating labor contracts (13 percent), increasing the local option sales tax rate (2 percent), reorganizing county fleets (13 percent) and implementing four-day work weeks (7 percent).

The NACo survey also aimed to determine how counties are being affected by the $787 billion American Recovery and Reinvestment Act which was signed into law by President Obama in February. About two-thirds of the responding counties (61 percent) said they expect to receive funding as a result of the Recovery Act. However, most counties said they have received less than half of the expected funds so far. The majority of anticipated funds are through the new Energy Efficiency and Conservation Block Grant program, the Community Development Block Grant Program, and various transportation programs.

America’s metropolitan counties are suffering with declining revenues as well. An October 2008 NACo survey of larger counties (more than 100,000 residents) found that two-thirds of those responding counties anticipated a shortfall this fiscal year resulting in budget fix remedies such as salary and hiring freezes, service cutbacks, furloughs and layoffs. (See survey links below)

Related resources:
A previous report on this topic from a June 2009 survey is available here and another report from October 2008 is available here.

Additionally, NACo also has available a report from June 2008 on foreclosures and their impact on counties here.

Commercial Appeal reports on the First Day of Budget Hearings

In a worst-case scenario, the state budget could face over a $1 billion gap between rising non-discretionary spending and the tax revenue available to fund those programs. See the full article on the first day's budget hearings from Rick Locker, the legislative beat writer for the Memphis Commercial Appeal
here.

Governor's Budget Hearings Begin

The Governor's budget hearings began this morning with the proposed budget for the Department of Education. Several other Commissioners will present proposed department budgets today and over the coming days. For a full schedule of these hearings and to access live streaming audio and video of the hearings, go to http://www.tennesseeanytime.org/gov/budget/.

In case you miss some of the hearings, you can also access archives of the meetings.

Bredesen to Hold Open State Budget Hearings

Governor Phil Bredesen will hold his eighth round of open state budget hearings beginning Monday, November 16, at the State Capitol in the Executive Conference Room. The hearings can also be viewed live at www.tn.gov. The schedule for department budget hearings is as follows:

Monday, November 16
10:45 a.m. – 11:45 a.m. Education
11:45 a.m. - 12 p.m. Books from Birth Foundation

1:30 p.m. – 2:15 p.m. Correction
2:15 p.m. – 2:45 p.m. Revenue

3 p.m. – 3:30 p.m. Veterans Affairs
3:30 p.m. – 4 p.m. Military

4:15 p.m. – 5 p.m. Environment and Conservation
5 p.m. – 5:30 p.m. Cover Tennessee

Wednesday, November 18
1:30 p.m. – 2 p.m. Finance and Administration
2 p.m. – 2:45 p.m. Commerce and Insurance

3 p.m. – 3:45 p.m. Economic and Community Development
4 p.m. – 5 p.m. Bureau of TennCare
5 p.m. – 5:30 p.m. Tourist Development

Thursday, November 19
12:30 p.m. – 1 p.m. Safety
1 pm. – 1:45 p.m. Division of Intellectual Disabilities Services
1:45 p.m. – 2:30 p.m. Human Services
3:30 p.m. – 4 p.m. Labor and Workforce Development

Friday, November 20
12:30 p.m. – 2 p.m. Higher Education
2 p.m. – 2:30 p.m. Tennessee Education Lottery Corporation
2:30 p.m. – 3 p.m. Agriculture
3:15 p.m. – 4:15 p.m. Children’s Services

Monday, November 23
12:30 p.m. – 2:30 p.m. Health
2:30 p.m. – 3 p.m. Tennessee Bureau of Investigation
3:15 p.m. – 4 p.m. Mental Health and Developmental Disabilities
4 p.m. – 4:30 p.m. Transportation
4:30 p.m. – 5 p.m. General Services
5 p.m. – 5:30 p.m. Human Resources

October Revenues Continue Downward Trend

For the third consecutive month in the fiscal year that began July 1, state tax collections fell below budgeted estimates. Finance & Administration Commissioner Dave Goetz today announced that state revenue collections for October were $698.2 million, which is 1.53% below October 2008 collections. October collections reflect consumer spending in September.

“October is the 17th consecutive month in which sales tax collections have experienced negative growth,” Goetz said.

October collections were $31.7 million less than the budgeted estimate. The general fund was under collected by $24.2 million and the four other funds were under collected by $7.5 million.

Sales tax collections were $38.6 million less than the estimate for October. The October growth rate was negative 7.80 %. Year-to-date the growth rate is negative 8.47%.

Franchise and excise combined collections for October were $11.9 million, and they were $9.6 million above the budgeted estimate of $2.3 million.

Gasoline and motor fuel collections were $2.1 million more than the budgeted estimate of $71.8 million. However, the sales tax allocation to the Transportation Equity Fund was a negative $7.8 million. The net result was a shortfall in the highway fund estimate.

Year-to date collections for three months were $101.3 million less than the budgeted estimate. The general fund was under collected by $88.2 million and the four other funds were under collected by $13.1 million.

UPDATE:
According to a news report by Tom Humphreys of the Knoxville News Sentinel (find the article here), while these collections failed to meet estimates of the Department of Finance and Administration, they exceed a different set of estimates used by the Fiscal Review Committee of the legislature. The Fiscal Review Committee and the Department basically project similar revenue collections for the entire fiscal year, but they differ when it comes to projected revenues by month. Fiscal Review projected lower collections than F&A for the first 3 months, but then their estimates are higher for the period of November through April. The projections are fairly similar for the last quarter of the year. At any rate, the first two months collections were behind both sets of estimates. However, if Fiscal Review's month by month projections are more accurate, then revenues are not as far off pace as reported by F&A.

TCCA Survey Responses

Thanks to all of you for sending the compensation and benefits survey back so quickly. We have already received 25 responses back and they continue to come in. Hopefully we are on pace to get the results back and have them compiled in time to include the information in our December newsletter.

NACo Publication: What do County Commissioners Do All Day?

The National Association of Counties has put out a two page pamphlet on what it means to be a county commissioner.

Find it here.

State Retirement Fund Recovering

According to State Treasurer David Lillard (former Shelby County Commissioner and past president of TCCA), the state retirement fund has recovered a significant portion of the losses it suffered during the economic downturn. The pension fund fell from a high of $32 billion worth of assets in early 2008 to a low of $23 billion. The fund's assets are now worth approximately $28.5 billion, having recovered over 60% of its losses. These gains and losses can potentially impact future contribution rates for local governments participating in the Tennessee Consolidated Retirement System. It is widely expected that higher contribution rates will be required after the next assessment in order to shore up the fund, but improvements now will help soften the impact.

TN State School Bond Authority Finalizes Plans on School Construction Bonds

The TSSBA finalized plans to sell up to $184 million worth of Qualified School Construction Bonds (QSCBs) as part of a program created by the federal American Recovery and Reinvestment Act. The authority selected a bond underwriting team, approved a final bond resolution and finalized documents needed to move forward with the bond sale. The TSSBA had preliminarily approved the loans in September and, after some revisions in loan amounts and the addition of the City of Kingsport as a new borrower, the revised list of project loans were approved by the TSSBA.

The communities authorized to receive portions of the bond money will be required to spend the proceeds on qualified projects within three years of the bond sale and comply with federal Davis-Bacon regulations. The sale is expected to be completed with bond proceeds available for disbursement in early December. Additionally, the communities are required to enter into binding contracts for at least 10 percent of their allocation of the bond proceeds within six months after the bond sale.

TACIR Publication on School Capital Projects

TACIR’s latest publication, Capital Expenditures for Public Schools, is available on the Internet. The report finds that in the 5-year period centered on the year in which the smaller class-size mandate of the Education Improvement Act (EIA) of 1992 became a requirement (fiscal year 2001-02), Tennessee school systems spent

• $2,100,000,000 on capital projects; and
• $1,400,000 on debt service.

The TACIR report describes those expenditures and compares them to the growth in school enrollment, the increase in the number of schools, the condition of school buildings as reported to TACIR in its annual inventory of infrastructure needs, as well as the overall cost of needs reported in that inventory.

The report closes with a suggestion that the legislature consider expanding the authority of the Tennessee State School Bond Authority to extend its lending support to school systems. It also suggests that the state consider re-establishing technical and administrative assistance services for school capital outlay programs in the Department of Education. The full report is available here.

Video of Energy Block Grant Application Workshop Available On-line

ECD recently hosted two Energy and Efficiency Conservation Block Grant application workshops. The meetings reviewed the guidelines and application process and offered suggestions for completing a competitive application. It is my understanding that few county officials attended these workshops. These grants are the ones discussed in our membership meeting at the TCSA fall conference in Chattanooga and mentioned in some of our recent newsletters.

For those unable to attend the meetings, a video of the workshop is now available in three parts on ECD's YouTube Channel. You can find part one here: http://www.youtube.com/watch?v=SSFijORtFco There are links to parts 2 and 3 on that page.

County Commission Survey Going Out Today

The Tennessee County Commissioners Association periodically surveys all 95 counties to determine who currently chairs the commission, how often it meets and on which days it meets, the compensation paid to county commissioners and whether or not commissioners are eligible for county health insurance and retirement benefits. These surveys are being sent out today to chairs of county commissions and to county mayors. Please help to ensure these are filled out and returned promptly. County commissions across the state frequently ask the association for this information, so we try to keep it as accurate as possible to help you, our members. We hope to collect the data and make it available to you before the end of the year, but that is dependent upon how quickly we receive responses back.

Thanks for your assistance with this project.

Voter Confidence Act Lawsuit

Davidson County Chancellor Russell Perkins today denied an injunction to force the Secretary of State to comply with the Tennessee Voter Confidence Act immediately. For more information, see the Nashville City Paper article here:

http://nashvillecitypaper.com/content/city-news/chancellor-denies-injunction-paper-ballot-case

Possible Good Economic News for Tennessee

According to an analysis by the Federal Reserve Bank of Philadelphia, Tennessee is one of 7 states that has demonstrated an improvement over the last three month period in an economic index compiled by the bank. The bank developed a "conincident index" that creates a single statistic out of four factors used to determine economic conditions. The four state-level variables in each coincident index are nonfarm payroll employment, average hours worked in manufacturing, the unemployment rate, and wage and salary disbursements deflated by the consumer price index (U.S. city average). The trend for each state’s index is set to the trend of its gross domestic product (GDP), so long-term growth in the state’s index matches long-term growth in its GDP. For the Federal Reserve bank's analysis, click here.

A separate report by Stateline.org shows that 11 states and the District of Columbia are emerging from recession and that only Nevada is still in deep recession. Unfortunately Tennessee is not yet among those 11. The Stateline analysis can be found here. It is based on a Moody's analysis that includes an interactive "Recovery Status" map. The map can be found here. This map connects to a wealth of data. It shows Tennessee as "moderating." Clicking on the state on the map opens a forecast and a link to more information for ten metropolitan areas in the state. Of the ten, 9 are moderating and the Cleveland metropolitan area is listed as "recovering."

These reports are highly technical, but I offer them as a source of info for any county officials wanting to more closely track economic trends in our state and their communities.

Associated Press Economic Stress Index

There is a very interesting interactive map available here that has been created by the Associated Press to show economic stress on a county by county basis. The map uses statistics focused on unemployment, foreclosure and bankruptcy to measure overall stress levels. Unfortunately, many West Tennessee counties and several other rural Tennessee counties score very high on this stress measurement compared to the rest of the nation. It's not something we didn't already know, but it is chilling to see the big picture.

Education System Report Cards

Ironically, I signed my daughter's report card Tuesday, the same day the Tennessee Department of Education released its annual comprehensive report card on pre-K – 12 education. (She did much better on hers.) The Department of Education report card includes state, district and school-level information on achievement, demographics, and discipline. This year’s report card demonstrates fundamental changes to the calculations of Value Added and Achievement scores. The method of calculating scores and the scale used to determine letter grades have been revised to allow for a transition to the new standards and assessments required by the Tennessee Diploma Project.

“Because we have been on an aggressive path of improvement with the Tennessee Diploma Project, it was necessary to utilize this transition year to change our calculation methods and more accurately demonstrate student progress in an effort to pursue higher standards,” Education Commissioner Timothy Webb said.

Essentially this means some of our systems may get a bad grade this year compared to last year, but it is due to the fact that the test is much tougher. To see the full report and evaluate information on a state, school system, and individual school level, go to http://tn.gov/education/reportcard/index.shtml.

17 Months of Bad Revenue Collections

Speaking in East Tennessee, the Deputy Governor John Morgan indicated that Tennessee is on the verge of its 17th straight month of revenue declines. For the full article from the Knoxville News Sentinnel, click here.

Tennessee Manufacturing Job Losses

According to an article from the Memphis Business Journal, Tennessee lost more manufacturing jobs last year than in the previous twelve years. For the article, click here.

Residential Building Codes Presentation

At the TCSA annual conference in Chattanooga last month, there was a class dealing with building codes, planning and other land use issues. Members have requested copies of the power point presentations used in that class. We have copies of most of them. If you are interested, e-mail me at tcca.connor@tncounties.org and I'll be happy to forward them to you.

Tennessee Rural Opportunity Fund

Last legislative session an act was passed by the General Assembly to create the Tennessee Rural Opportunity Fund. This fund is a first-of-its-kind public-private partnership between Governor Bredesen's Administration, the Tennessee Bankers Association and its Member Banks, and Southeast Community Capital Corporation to create a $10,000,000 perpetual revolving loan fund for small, disadvantaged, and start-up businesses in rural communities throughout Tennessee. Once established, this fund will provide below market rate loans to targeted businesses in rural Tennessee in need of capital to facilitate business growth and job creation. The Fund will target businesses unable to access traditional credit due to lack of collateral, poor credit scores, inconsistent earnings, and being identified as a start-up business. The program is in development, but if you know of a someone in your county that could benefit from this opportunity, you may wish to pass this information on to them. Economic development in the current economic environment is very challenging, particularly in rural areas. For more information visit http://www.sccapital.org/funds/tn-rural-opportunity-fund.html

Comptroller's Update on State Revenues

Tenessee state tax collections for September once again failed to meet budget estimates. Overall revenues were $920.0 million, which is 5.7% less than collections for the same month last year. These collections were $41.8 million below budget. Sales tax makes up the bulk of the under-collection, coming in $37.8 million below estimates with a 9.4% decline over prior year's collections. The next few months will be interesting as the impact of the "Cash for Clunkers" program is determined and as we enter the point in the year where collections began to really drop last year. September gas tax collections, which were a bright spot last month, decreased by 5.7% and were off estimates by $7.6 million. For more detailed information about reveneus collections, you can go to the Department of Revenue's website here:

http://www.tennessee.gov/revenue/statistics/index.htm

Also, for a chart of the State's budget estimates for Fiscal Year 2009-2010, go to:

http://www.tngove/finance/bud/budget.html.

THDA 2009 Housing Market at a Glance Report

The Tennessee Housing Development Authority’s research team has created a snapshot of Tennessee’s housing market to provide you with valuable information about the housing stability in our state. This report provides detailed information on home sales, prices, foreclosures, affordability and homeownership levels in regions across the state.

You can download or view the report here.

TN SCORE Releases Final Report

The Tennessee State Collaborative on Reforming Education (SCORE)released its final report entitled "A Roadmap to Success: A Plan to Make Tennessee Schools #1 in the Southeast Within Five Years." The report details measurable steps Tennessee can take over the next five years to make its public schools the best in the Southeast. The report shows this goal is achievable if Tennessee makes the same kind of rapid student achievement gains that Florida and North Carolina made in the 1990s.

The report contains a detailed roadmap of how to achieve this goal. This roadmap is based on four key strategies:
• Embrace High Standards
• Cultivate Strong Leaders
• Ensure Excellent Teachers
• Utilize Data To Enhance Student Learning

The report contains over 60 specific recommendations for how to pursue these four strategies, identifies who is responsible for implementing each of these specific recommendations, and details a timeline on which these recommendations can be completed. The plan requires no new state funding in the short-term, although four priorities for long-term state investment are identified.

The report concludes by identifying specific actions 14 different stakeholder groups can take to implement this plan. For example, the report details specific laws and policies that need to be passed or changed by the General Assembly and State Board of Education, specific areas where short-term investment from the business and philanthropic community can make a difference, and ideas for how superintendents, principals, and teachers can work together to improve student achievement.

For more information and to view an electronic copy of the SCORE final report, you may visit www.tennesseescore.org.

Energy Grants for Counties

Governor Phil Bredesen and Commissioner Matt Kisber of the Department of Economic and Community Development announced this month that $9.3 million in federal stimulus funds will be available to small- and medium-sized cities and counties through the Energy Efficiency and Conservation Block Grant Program. The competitive grants are available to assist local governments in conserving energy and reducing fossil fuel emissions. If you were at the fall conference in Chattanooga earlier this month, this is the program that was described by Dan Hawk during our membership meeting.

Areas of funding that will be given priority include: developing an overall energy efficiency and conservation strategy; retrofitting existing buildings with cost effective energy efficient measures; implementing renewable energy technologies on government buildings; and replacing traffic signals and street lighting with energy efficient lighting technologies.

The 17 largest cities and 10 largest counties in Tennessee may apply directly to the U.S. Department of Energy for EECBG funds. All other cities and counties may apply through the state of Tennessee by 5 p.m. CST on December 30, 2009.

Applications and more information about the program are available here.
The maximum grant amount will be $100,000 and partial funding may be awarded.

ECD will host two application workshops on Nov. 2, 2009 in Nashville at the Ellington Agricultural Center from 9 a.m. – 12 p.m. and again from 1 – 4 p.m. CST. The meeting will focus on the guidelines and application process and offer suggestions for making an application more competitive.

Applications will be scored based on the local government’s strategy, feasibility, readiness to proceed, impact, partnerships and the ability to extend funding impact beyond a one time use.

Office of Legislativie Budget Analysis Releases 2009 County by County Report

This detailed report, which attempts to estimate how state dollars are benefiting each county in the state, is now available online. You may access all ninety-five reports here

Please note these reports are an indicator of how state dollars are benefiting a particular county. Many of the funds listed in the report are administered by a state agency - not allocated directly to the county itself.

Items are reported in the following eight categories:
State Shared Taxes
K-12 Education
Health and Social Services
Law, Safety and Corrections
Recreation, Tourism and Preservation
Economic Development and Higher Education
Capital Outlay
Transportation

New Guidelines for Municipal and County Financing

The Tennessee State Funding Board has approved a sweeping set of changes implementing enhanced requirements to the guidelines that govern cities and counties that propose to enter into interest rate swaps and other exotic financial transactions.

The revised guidelines are aimed at eliminating potential conflicts of interest by prohibiting individuals or companies from representing more than one side in derivative transactions. These revisions require greater transparency in the way information is reported and communicated about the transactions and require comprehensive disclosure of fees paid.

Cities and counties will have to demonstrate that they employ people with sufficient expertise to understand these complex transactions, including a chief financial officer and an accountant. Cities and counties must also meet minimum outstanding debt requirements and have an audit committee and a capital improvement plan.

Communities that do not meet all the requirements laid out in the guidelines have the option of appearing before state Comptroller Justin P. Wilson or his staff to explain that they fully understand all the risks involved and can comply with their debt and derivative management policy and the ongoing risk monitoring and reporting requirements.

The guidelines can be viewed at the Comptroller’s web site here.

Request for Public Comment on Residential Sprinkler Systems

The Department of Commerce and Insurance has sent out the following notice seeking input from the public relating to the cost and effectiveness of sprinkler equipment in one-family and two-family dwellings in areas where residential sprinklers are in use.

"As directed by the General Assembly, the Department is conducting an analysis regarding the cost and effectiveness of sprinkler equipment in one-family and two-family dwellings in areas where residential sprinklers are in use and will report the results of such analysis to the general assembly on or before May 1, 2010.
The Department is specifically requesting input from nonprofit and business groups or organizations including, but not limited to, the Tennessee Fire Chiefs Association and the Home Builders Association of Tennessee.
It is requested that all written materials be provided to the Department by December 31, 2009."

If this issue has been of interest to your county you may send comments or concerns by e-mail, addressed to Jim.Pillow@tn.gov or by mail addressed to:

Jim Pillow
Assistant Commissioner
Tennessee Department of Commerce and Insurance
ATTN: Residential Sprinkler Analysis
500 James Robertson Parkway, 3rd Floor
Nashville, TN 37243.

TN County Commissioners Association Newsletters

This fall, TCCA started a new monthly E-mail Newsletter. Archives of the first issues can be found here. We will try and send these around the 15th to the 20th of each month once updates about the state revenue collections are available. The newsletter will include timely information and updates about new publications, training opportunities for county officials, grants, programs and news of developments impacting state and county government in Tennessee. If you would like to receive these newsletters automatically by e-mail, contact me at tcca.connor@tncounties.org. Feel free to share them with your fellow county commissioners. At the fall conference, one of our county commissioners even indicated that he forwarded the newsletters to constituents to provide his voters with more information about issues impacting Tenessee County Govnerments.

THDA Mortgage Program Report

The THDA research division has released a report on homeownership penetration in the counties across the state and the use of that agency’s loan programs. The report details the use of four different mortgage programs in Tennessee’s three grand divisions, by MSA and by county. These four programs include the Great Rate, Great Advantage, Great Start and New Start mortgages. For more information about these programs, THDA or the information in this report, contact Toni Harris at THDA via e-mail at THarris@thda.org or by phone at 615-815-2182. The report can be accessed
here.

New Officers Selected by the Membership

Much of the Board of Directors remained intact this year. While there has been some change in recent years, the board is relatively stable this year headed into the 2010 elections. New members include Thomas "Tank" Strickland as Knox County representative and Troy Beets of Roane County as President-Elect. Jim Westbrook of Weakley County assumed the Presidency at the meeting last week in Hamilton County. Treasurer Houston Naron of Williamson County and Secretary Marlene Steinbuck of Benton County round out the list of officers.

Thanks to President Wallace Austin for His Service

At the annual meeting last week, Wallace Austin of White County concluded his year of service as TCCA President. He will remain on our board as a past president as Jim Westbrook of Weakley County serves as association President for 2009-2010.

It has been a pleasure working with Wallace this year as I completed my second year as Executive Director of the County Commissioners Association. Many thanks to Wallace and our other officers and directors who give of their time in service to the association.

TCSA Annual Fall Conference Concludes in Chattanooga

The TCSA Fall Conference and Trade Show this year in Chattanooga was a huge success. Thanks to all of you who attended and participated in our board meetings, committee meetings, membership meetings, educational workshops and training programs. County Commissioners at the conference had opportunities to learn about a host of topics including Economic Development, Mental Health Issues, Land Use Regulations, the 2010 Census, and much more. The TCCA board met and discussed strategies and outlooks for the upcoming legislative session. Our nominating committee also made recommendations for officers and directors for the next year which were adopted by the membership (see article above).

The conference General Session included a panel of excellent speakers, including Commissioner Tim Webb of the Department of Education and Tom Kilgore, CEO of the Tennessee Valley Authority. We also heard a presentation on the recruitment of Volkswagon to the Chattanooga area. The final business meeting on Friday morning included a discussion by Tom Griscom, Editor/Publisher of the Chattanooga Times/Free Press on his impressions of the 2010 Gubernatorial Campaign so far.

Comptroller Report on New K-12 Standards

The Comptroller's Offices of Research and Education Accountability recently released a new legislative brief, More Rigorous Standards and New Graduation Requirements.

In January 2008, the Tennessee State Board of Education passed a new High School Policy requiring all students to complete the same graduation requirements; the previous policy defined separate paths for college-bound students and career-technical students. The State Board also adopted new K-12 standards in language arts, math, and science, representing more rigorous expectations for students. This brief details the main components of the new High School Policy and addresses the reasons behind the changes. It concludes with a section describing some of the challenges Tennessee will face in implementing these tougher standards and assessments.

The legislative brief may be viewed or downloaded here.

State Building Commission Approves West TN Megasite

Citing its potential to bring jobs to an economically-struggling area, the State Building Commission Executive Subcommittee gave its approval Tuesday to the West Tennessee “megasite” project.

The subcommittee’s vote clears the way for state officials to spend $40 million to purchase about 3,836 acres near Interstate 40 in southwest Haywood County. The site is envisioned as a future home for companies which will provide a new economic engine for West Tennessee.

ARRA Compliance Checklist

The Tennessee Comptroller of the Treasury has released a memo entitled “American Recovery and Reinvestment Act (ARRA) Ten Steps to Compliance for Tennessee Counties.” This three page memo is in pdf. format and may be accessed here. The memo includes links to important websites related to ARRA funds and has a compliance checklist. If you have not already heard, ARRA funds, which your county, or one particular office in your county, may have applied for and received, come with a series of accountability and transparency provisions. This helpful memo from the Comptroller’s Office can be used to guide your county toward compliance with these requirements. Compliance with the checklist does not guarantee compliance with ARRA or other monitoring or auditing, however, it will help your county become informed about new requirements and responsibilities. If you have questions about these requirements, the UT County Technical Assistance Service has been working with county governments to help them comply.

Regional Meetings Conclude

Thanks to all of you who came out to one of our 8 regional meetings. They wrapped up last night at Henry Horton State Park in Marshall County. We had excellent attendance this year, good discussions and heard some great ideas and thoughts from county officials. Also this year we had wonderful participation from state legislators with numerous House and Senate members joining us at meetings across the state.

The association will continuing working to formulate its platform and set of legislative initiatives for next year as we move toward our annual fall conference in Chattanooga next month.

Regional Meetings Updates

The 2009 Regional Meetings are off to a great start. We've had good turnouts and good discussions at our first two meetings: Vol State Community College in Sumner County and Paris Landing State Park in Henry County. I want to say a special thank you as well to the state legislators who have been so kind as to join us at these meetings. Tomorrow morning I get on the road for East Tennessee and we have a three day swing through Jonesborough on September 1st, Knoxville on September 2nd and Cookeville on September 3rd.

I hope to see you at one of these events.

Upcoming Training for County Officials

The following is a schedule of classes offered by the UT County Techinical Assistance Service for county officials during September and October. If you are interested in attending a class or want more information about this training program, go to the CTAS website and click on the tab for "Training."

Five Essentials of Leadership
September 17 – Jackson (West TN Research and Education Center, 605 Airways Blvd)
September 22 – Knoxville (UT Conference Center, 600 Henley Street)
September 23 – Johnson City (Carnegie Hotel, 1216 W. State of Franklin Road)
September 29 – Franklin (Franklin Marriott, 700 Cool Springs Blvd)

Giving and Receiving Feedback
October 14 – Jackson (West TN Research and Education Center, 605 Airways Blvd)
October 15 – Franklin (Williamson County Ag Expo Park, 4215 Long Lane)
October 20 – Knoxville (UT Conference Center, 600 Henley Street)

Public Hearings on Residential Building Codes

The Department of Commerce and Insurance is holding a series of public hearings for comments on proposed residential building codes. The dates are as follows:

• October 8, 1 p.m. UT Conference Center, 600 Henley Street, 4th Floor Dining Room, Knoxville, Tennessee
• October 9, 9 a.m. Chattanooga Marriott at the Convention Center, Two Carter Plaza, Ballroom HIJ, Chattanooga, Tennessee
• October 13 1 p.m. UT West Tennessee Agricultural Center, 605 Airways Blvd, Room 150, Jackson, Tennessee
• October 15 1 p.m. Davy Crockett Building, 500 James Robertson Parkway, Room 160, Nashville, Tennessee

The meeting on October 9th is being held in conjunction with the TCSA Annual Fall Conference in Chattanooga. County officials attending that conference can easily attend that hearing which will be in the same facility where our conference is held. No specific code is being proposed at these meetings. The meetings are for the purpose of hearing public comments. As you know, legislation passed this last year that provides for the implementation of statewide residential building codes unless a county or municipality opts out of the law. In those cities and counties that do not opt out, the responsibility for enforcement may rest with the local government, or if the local government chooses not to enforce the codes, the building codes will be administered by the State Fire Marshall's Office.

Rural Technology Assistance Grants

The Tennessee Department of Economic and Community Development has announced a program of Rural Technology Assistance Grants. These funds are to be used for programs and services that increase technology usage and/or availability in rural counties. For the purpose of this program, rural counties are defined as those where all municipal populations are less than 20,000. The deadline for applications for a New Initiatives Grant Class is 4:30 p.m. September 10, 2009. This program will allocate $1.5 million through competitive grants for initiatives that address the expansion of broadband connectivity, decrease K-12 student to computer ratios or expand rural distance learning opportunities. More information about eligible programs, the grant review process and funding priorities is available at the website for the Department of Economic and Community Development under the heading "Rural Technology Grants".

CTAS Index of Acts for the 2009 Legislative Session

Every year, the legal staff at the UT County Techinical Assistance Service summarizes all legislation (both public and private acts) that relates to county government. This material is compiled into a publication called the Index of Acts.

The 2009 Index of Acts is now on the Legislative Information page of the CTAS website that can be found (here). These are basic summaries intended to give county officials notice of changes in the laws that affect their offices. As is noted by CTAS, prior to taking action based on these new laws, county officials should consult the actual text of the law or discuss them with their county attorney. The full text of all of the new laws can be found on the website of the Tennessee Secretary of State, listed by the public and private chapter numbers (here).

TN State School Bond Authority Announces New Program of Loans for School Construction

Notice was distributed this week by the State Comptroller's Office that the Tennessee State School Bond Auhtority (TSSBA) has approved a new program that will provide low- or no-interest loans of up to $20 million for school systems to build new schools or to rehabilitate or repair existing ones. These loans will be made from the proceeds of Qualified School Construction Bonds issued by the TSSBA. These bonds were created by the American Recovery and Reinvestment Act of 2009. Public Chapter 601 of the Acts of 2009 was passed by the Tennessee General Assembly to establish the Qualified School Construction Bonds Program in Tennessee. The total bonding authority available to Tennessee for 2009 is $184.6 million. Other than a portion of the funds which have been allocated Memphis and Nashville, eligibility is not dependent on size or poverty levels. The bulk of the funds are available for all other Tennessee school systems through a competitive process administered by TSSBA with assistance from the TN Advisory Commission on Intergovernmental Relations.

There is a short turn around on this process. The deadline for applications is 4:30 P.M. on August 21, 2009. An information session will be held on August 6, 2009 at 1:30 P.M. in Room 16 of the Legislative Plaza in Nashville. Instructions and application criteria are available here.

It is expected that applications will be reviewed and approved in September with the bonds sold the last week in October.

Tennessee SCORE Releases Interim Report on Education Reform

On July 30, 2009, the Tennessee State Collaborative on Reforming Education (TN SCORE)released an Interim Report entitled the "State of Education in Tennessee." The report provides a broad description of the K-12 education system in Tennessee and outlines the state's strengths and weaknesses. It also highlights 34 promising practices from districts across the state and includes a detailed profile on each of the state's 136 school districts. This is an interim report, with a final report and recommendations expected from the organization this fall. I'm excited that folks from group have approached the TCCA about participating in our regional meetings which begin next month. If you would like to find out more about this organization and read or download a copy of the report, go here.

Regional Meeting Dates and Locations Set

As happens every year, the TCCA will be conducting a series of regional dinner meetings across the state. These meetings usually run a couple of hours and provide an opportunity to discuss what happened this year, look forward to the issues of the next legislative session and focus on emerging issues impacting county governments. I hope you can attend one of these meetings in your area. Dinner is provided by the association at each meeting. All meetings begin at 6:30 p.m. local time. Folks usually begin arriving a little earlier to meet, network and socialize. More information will be forthcoming about our meeting agenda, but for now, here are the dates and locations:

August 25 Volunteer State Community College (Rochelle Conference Center), Sumner County
August 27 Paris Landing State Park, Henry County
September 1 Jonesborough Visitors Center, Washington County
September 2 City County Building, Knox County
September 3 Leslie Towne Center, Putnam County
September 8 UT Ag Extension Building, Madison County
September 10 Holiday Inn Mountain View, Bradley County
September 17 Henry Horton State Park, Marshall County

Legislative Session Wrap UP

A lot has happened since the last time I posted. At the close of the legislative session, the pace of activity gets hectic. It is hard to keep things updated here when that happens and I apologize for my being delinquent. The session went well into June, ending after the TSCA Post-Legislative Conference. Thankfully, we had a great conference in Gatlinburg. Even though every issue wasn't wrapped up at that time, we had a good indication of where many issues were going and were able to discuss these matters. We also had interesting presentations related to the American Recovery and Reinvestment Act and its impact on counties. You should have been receiving the Capitol Update, that reviewed where many of our issues ended up. Look for the upcoming edition of the Tennessee County News for more detail. Also, the County Techinical Assistance Service will be developing their annual Index of Acts that summarizes all legislation passed which affects counties. That will be posted on their website later this summer. I will link to it here when it becomes available.

TCSA Post Legislative Conference

As happens on rare occasions, it looks like this year the TCSA "Post" Legislative Conference will not be "post." Although it is likely the General Assembly will still be meeting in June, we will be meeting as well. There is registration information on our main association website including this form and an agenda available here. If you have not already registered, I encourage you to do so. To the extent possible, we will update you on the latest developments with the state legislature and there will also be updates and information about the federal Recovery Act.

I hope to see you there.

Pat Mitchell Announces Retirement

Many of you have known Pat Mitchell of the Tennessee County Services Association office for years. She has recently announced her pending retirement, effective the end of May. She has been the executive secretary to TCSA for the past 32 years, and has always been an integral part of the county associations. Pat has overseen countless events and meetings, always planning them to perfection and pulling them off without a hitch. I’m sure many of you have benefitted from the magic she works, sorting out registration problems at a hotel, sending you critical information about meetings, or just taking care of business in general. She will be greatly missed and difficult to replace. I hope you will join me in wishing her the very best in her retirement. She will be missed by all of us as well as countless county officials, both past and present, from all across the state.

Lack of Posts

As the legislature has stepped into high gear, it has become more challenging to have time to post updates on this site. Committee calendars are filling up with both bills and budget hearings. I will encourage you once again to frequent the CTAS website where there are regular Recovery Act updates. Many of these funding sources have short deadlines for application. I also encourage you to plan for attending the Post-Legislative Conference June 2 and 3 in Gatlinburg, Tennessee. Contact our office if you need registration information. There is a legitimate risk that the "post" legislative conference may not be "post." The Legislative Session may be continuing into June which may cause us to adjust conference schedules. Regardless, the conference will go on and information will be presented about what has happened this year.

Internet Forums for Governing Bodies

Last year, legislation passed that created a pilot project in Knox County to allow an internet forum for county commissioners to communicate with each other. This was in response to lawsuits and injunctions related to alleged violations of the open meetings act. The internet forum, which is open to public view, gives the commissioners a place to publically share information about issues before the county commission without circumventing the state's open meeting laws.

A bill is now on its way to the Governor for his signature that would extend this pilot project to cities, counties and school boards statewide. The bill is HB 533/SB832 by Rep. Dunn and Sen. McNally. The bill originally simply extended a sunset provision on the Knox County pilot project.

Essentially, as it passed, the bill allows governing bodies of cities, counties and school districts to set up a forum over the internet for sharing of information between members. There are several conditions that must be met and before using the site and you must file a plan with the office of open records on how you intend to comply with the conditions. The conditions are: 1) There must be public notice of an intent to use such a website; 2) The county must provide public access to the communications; 3) There must be control of who can communicate through the forum; 4) The posts must be archived for at least one year; and 5) Computers must be provided for public access at the public library, the courthouse or other public building so that someone without a computer or internet access can still have access to the forum.

Communication over this site cannot substitute for a meeting of the governing body, so this is not a form of teleconferencing or internet conferencing. But information shared between members of the governing body on the website will not be considered a violation of the open meetings act. I plan to get in touch with the Office of Open Records soon to see if they will be putting out any guidance on the law and what they want to see in plans filed with their office. When I get that, I’ll try and get it distributed to the counties. In the meantime, you may want to consider whether this could be a useful mechanism for your members of your county commission to become better informed about issues before they come before up in the meeting for consideration.

Comprehensive Recovery Act Overview

For those of you looking for more detail on all the funds in the Recovery Act, I can recommend a document produced by the Patton-Boggs consulting firm. It is available on their website www.pattonboggs.com. This overview is at the Federal level and does not provide any Tennessee specific information, but it does go department by department through the act and explains all the different programs funded, tells the level of funds available, the purpose for which the funds may be used, eligible applicants, deadlines, allocation method and any special criteria involved.

CTAS continues to provide regular updates on the recovery portion of their website as more information about specific programs in Tennessee becomes clearer. From my discussion with administration officials, there is hope that many of the details of how the Recovery Act funds may be distributed and spent should be available over the next few days. Continue to check the state site and the CTAS site for more information.

Information Sessions Scheduled For ARRA Law Enforcement Grants

With ARRA, the Byrne Justice Assistance "Direct" Grant Award will be available to many more local governments than usual. The Tennessee Association of Chiefs of Police (TACP) has teamed up with the Office of Criminal Justice Programs to bring informational seminars to three locations. County sheriffs and/or their representatives have been invited. OCJP will be available to answer questions. Agencies that have not an opportunity to apply and receive funds in the past are likely to be eligible for these monies. Additional information can be found at www.tacp.org. The three locations include: JACKSON - March 23 10am to 12noon at Highland Park Conference Center, 615 West Forest Avenue, Jackson (Next to Jackson General Hospital) NASHVILLE - March 25 2 offerings: 10am to 12noon and 1pm-3pm at Metro Nashville PD North Precinct, 2231 26th Avenue North, 615.862.4410 KNOXVILLE - March 26 12noon to 2pm at Knoxville Family Justice Center, 400 Harriet Tubman Street, Knoxville 37915.

Check the recovery section of the CTAS website for more updates and information on Recovery Act developments like this.

Disturbing Education Statistics

The Tenessee State Collaborative on Education Reform (SCORE) has released a sobering report of education facts for Tennessee. Included are findings like:

• 77% of Tennessee 8th graders are not proficient in math and 75% are not proficient in reading according to the National Assessment of Educational Progress.
• 21% of Tennesseans over the age of 18 cannot read well enough to fill out an application, read a food label, or read a simple story to a child.
• 67% of Tennesseans who receive a HOPE lottery scholarship fail to keep it for four years.

Click here for the full report.

This group was started by Sen. Bill Frist to begin a series of discussions on how to move education in Tennessee forward. The second meeting of its steering committee will be on Monday, March 23 in Nashville. The organization also holds town hall style meetings across the state. A recent event was held in Jackson on March 9. At that meeting, SCORE Executive Director Brad Smith and Tennessee State Board of Education Executive Director Gary Nixon heard from education leaders from that region about the challenges they are facing, solutions they have found that work, and advice on how SCORE can assist with local education reform efforts. One of the meeting's key takeaways was the importance of making education Tennesseans' top priority and helping raise students' expectations for themselves.

CTAS Debuts Recovery Act Portion of Webpage

The UT County Technical Assistance Service now has a portion of their website up and running that will direct county officials to information on the American Recovery and Reinvestment Act. To find the resources, go to the main CTAS page at http://www.ctas.tennessee.edu/ then click on the Recovery Act emblem in the upper right corner of the page. There you will find brief paragraphs describing elements of the act and linking you to different sources of information. Check this page regularly for updates.

Floodplain Protection

More than $145 million is being set aside to help Tennessee landowners restore thousands of acres of frequently flooded land to its natural state, according to the U.S. Department of Agriculture (USDA). The ARRA funds are available through the floodplain easement component of the Emergency Watershed Protection (EWP) Program. Landowners can sign up for the easements through March 27, 2009 at their local USDA Service Center. The funding includes both technical and financial assistance to restore the easements. The goal is to have all floodplain easements acquired and restored within 12-18 months. Additional information can be found at: http://www.tn.nrcs.usda.gov/.

Clean Diesel Programs

U.S. Environmental Protection Agency’s National Clean Diesel Campaign is the Diesel Emission Reduction Act (DERA) program will soon open its grant program, funded through ARRA. The deadline for proposals will be April 27, 2009. ARRA funding for DERA grants will focus on promoting economic recovery, preserving and/or creating jobs, and reducing diesel emissions. Early information about the DERA grant program can be found on the EPA National Clean Diesel Campaign website at www.epa.gov/otaq/eparecovery/prognational.htm. EPA Region IV estimates that approximately $19 million will be available for projects in the southeastern region.

Please check out the National Clean Diesel Campaign website if you are interested in looking for collaborative projects to serve your area. Some of the eligible projects, such as diesel retrofits, would provide 100 percent funding. DERA funds may also be used to cover the incremental cost of biodiesel above the cost of conventional diesel. It is expected that proposed projects could include a broad reach of diesel engines, including ports, airports, locomotives, agricultural pumps and off-road equipment as well as transit buses, school buses, etc. This could be an excellent opportunity to do some significant projects to address harmful diesel emissions, as well as to bring much needed stimulus funding into your area.

Estimates of Tennessee Recovery Act Funds

The state Department of Finance & Administration is continuing to revise its estimates of how much Tennessee will likely receive over the next two years from the American Recovery and Reinvestment Act of 2009 (ARRA) signed into law in February. Governor Bredesen and the Administration are using the $4.5 billion projections to help structure the 2009-2010 state budget, expected to be released to the General Assembly on March 23. The F&A estimates can be found at: http://tnrecovery.gov/030309-TN-Allocation-Summary.pdf

Education Recovery Act Funds to Be Distributed to States Soon

According to the U.S. Department of Education Website (see press release here), $44 billion dollars in funding should be sent to states within the next few weeks. An additional $49 billion will be distributed in 6 months. In Tennessee, these funds will primarily go to Title I schools and for IDEA (special education) purposes. The recovery act funds can be used to restore cuts to K-12 education, but since Tennessee has worked hard to avoid cutting BEP funding, we are not in the same position as many other states.

Tennessee has made and proposed substantial cuts to higher education, so the portions of recovery act funding that may be used to restore cuts will go more towards higher education in our state. Many county officials and state legislators have been asking about recovery funds that can be used for K-12 construction. There original House of Representatives version of the recovery act included $14 billion for k-12 construction. Unfortunately, none of these funds were included in the Senate version or the final conference committee version that became law.

State officials have been cautioning local school systems and directors of schools that these funds must be used carefully as the funding will cease after two years. They are encouraged to use the funds for non-recurring expenditures or to help delay or soften budget cuts. If a local school district uses these funds to pay new or existing teaching positions, they will have to find funds from other sources to replace this recovery act funding after two years.

CTAS Budget and Financial Managment Training

The County Technical Assistance Service is offering extensive training to county officials on operating budgets, capital budgets and debt management over the months of March and April. The classes are being offered in Franklin, Jackson, Dunlap, Cookeville, Knoxville, and Johnson City. For more information on times, dates and locations, see the CTAS website at http://www.ctas.tennessee.edu/.

As an experiment, one of these classes is being held in the evening to make it more convenient for county commissioners to attend. On March 30, there will be a training session on managing county debt at the West Tennessee Research and Education Center, 605 Airways Blvd., Jackson, from 6:30 p.m. to 8:30 p.m. Dinner will be provided at the meeting site starting at 5:30 p.m.

This session will discuss (1) proper processes and procedures for accounting of debt; (2) where to find the data on debt; (3) how projects should be funded and how to borrow; (4) policies and committee considerations; and (5) best practices in debt management.

An extended version of this class will also be held at the same location on March 31 from 8:00 a.m. – noon for all county officials. Managing the county's debt and finances is becoming increasingly difficult in the current economy and I encourage any county commissioners who are interested to contact CTAS for more information about these training opportunities.

On-line Recovery Resources

The best information regarding the American Recovery and Reinvestment Act is availble through on-line resources. The details regarding this legislation are developing so rapidly and changing so continuously that it is hard to have accurate information in any other format.

I have posted links on here before to different organizations and agencies that were monitoring the legislation as it was being developed. Now there are significant new Federal and State resources on-line specifically dedicated to administration of these funds.

The first place to start is http://www.recovery.gov/., the primary federal site for recovery information. Tennessee is in the process of developing its own site for state recovery information which can be found at www.tn.gov/recovery. In addition, there is another website designed specifically to help governments and organizations find and apply for grants related to the recovery act at http://www.grants.gov/. For information regarding education related recovery funds, you can get data at http://www.ed.gov/. Other Federal departments and agencies as also providing information related to aspects of the act that they oversee. Sorting through all this may end up leaving a local official overwhelmed. I'm working with the UT County Technical Assistance Service to develop a resource that will help sort out those elements of the Recovery Act that most directly affect Tennessee Counties and make that information more accessible.

Check here and the CTAS website frequently for more information on this topic.

Recovery Resources and Information

The American Recovery and Reinvestment Act that passed in February is creating significant interest in local communities and continues to be the buzz at the State Capitol. The large and complicated legislation is now being interpreted through volumes of federal rules and regulations. State administrations and agencies are sorting through these ever-changing guidelines to determine how the funds can be made available to help.

On Monday of this week, Governor Phil Bredesen named Charles L. Harrison, CPA, CGFM, as Special Assistant to the Governor for Recovery Act Administration. Harrison will lead the state’s implementation of the American Recovery and Reinvestment Act of 2009.

“I am extremely pleased to have someone of Charles Harrison’s experience and qualifications to lead our implementation of this important Act,” said Bredesen. “The financial and project management expertise he brings to our efforts will help ensure the funds that come to Tennessee are used to their full potential and that we are complying with the rigorous requirements of the Act for accountability and transparency in its implementation.”

Harrison, who is licensed as a Certified Public Accountant in the state of Tennessee and is a Certified Government Financial Manager, has served as the assistant to the state’s Comptroller of the Treasury since 1985. In that position he was directly involved with the financial management of state project and contracts, provided accounting, budgeting, information systems and human resources support to the Office of the Comptroller, and advised state departments regarding procurement and contracting issues.

“Charles is uniquely qualified for this role,” said Deputy to the Governor John Morgan, who served as Comptroller of the Treasury from 1999 to January of this year. “His management skills and familiarity with Tennessee state government will allow him to move with the expedience that Governor Bredesen and the federal government expect in implementing the American Recovery and Reinvestment Act.”

Harrison will lead a state ARRA task force that includes representatives of Finance and Administration’s budget and information resources divisions, the Office of State Policy and Planning, and designated representatives from state agencies involved in implementation of the Act.

I have discussed with the Deputy Governor the need for local government associations and agencies to be involved and work cooperatively with this new state office to help disseminate information to county and city governments. In the coming weeks, as more information becomes available, I will be working with CTAS to find the best ways to get this important information to you.

Unemployment Continues to Worsen

Tennessee counties continue to struggle with rising unemployment. Two thirds of Tennessee Counties now have double digit unemploment rates based on January estimates. For more on this issue, see this article in the Nashville Business Journal.

For a detailed breakdown of January unemployment figures on a county by county basis, see this report hosted by the Chattanooga Times Free Press.

Tennessee SCORE

Last Monday (March 2), the Tennessee SCORE hosted its first statewide meeting at the First Amendment Center in Nashville. At the meeting, former Governors Michael Easley of North Carolina and Jeb Bush of Florida spoke about their experiences with education reform efforts in their states. In a very candid and informative session, they shared lessons they learned from their respecitve education reform efforts in Florida and North Carolina, both of which resulted in significant improvements in student acheivement. Read more about the meeting here, here, and here. These links tie you into the Tennessee SCORE website.

County Government Day Conference

It was a busy week last week as we had around 450 county officials in town for the annual county government day event in addition to the usual legislative hearings and committees. Included among the conference attendees were approximately 150 county commissioners from across the state. They took part in our TCCA board meeting and membership meeting and had opportunities to meet and greet with state legislators. At our Wednesday morning breakfast we were honored to have Governor Phil Bredesen, Lieutenant Governor Ron Ramsey and Speaker of the House Kent Williams there to address county officials. We were also joined by many other legislators at our breakfast.

More than 100 of the county officials in town also took advantage of a special session we organized on Wednesday to hear an update from state and federal departments and agencies on the Economic Recovery Act. Officials from the Governor’s Office, the State Departments of Transportation, Education, Economic and Community Development and Environment and Conservation and the United States Department of Agriculture Rural Development office presented an update on the American Recovery and Reinvestment Act of 2009 (often referred to as the federal economic stimulus legislation). The speakers outlined in general terms the funds that would be available to Tennessee and how such funds are planned to be distributed. A recurring message from the speakers was that the details of this legislation are still being sorted out as various federal departments and agencies continue to develop rules and regulations for the administration of the funds. If you would like more information about the Recovery and Reinvestment Act, contact our office via e-mail at tcca.connor@tncounties.org or by phone at (615) 532-3767 to request copies of a handout we distributed.

Unemployment Figures

New updates on un-employment in Tennessee show that it has now reached 8.6% for January which is a full point higher than December and three points higher than the same month last year. As I get individual county figures, I will try to make those available here.

See an article on this issue from Nashville Public Radio here:
http://wpln.org/newstranscripts/?p=4935

Tennessee SCORE

Yesterday I attended a press conference held by former U.S. Senator Bill Frist and Governor Phil Bredesen. They were kicking off a new initiative called the Tennessee State Collaborative on Reforming Education (SCORE). This program is an initiative to jumpstart long-term educational change in Tennessee to ensure that every child graduates high school prepared for college or a career. In the fall of 2008, Governor Phil Bredesen set a high bar for Tennessee's K-12 education system with the Tennessee Diploma Project, and SCORE will focus on jumpstarting reforms that will help Tennessee schools, teachers, and students meet this bar.

According to their website, SCORE intends to achieve this goal by (1) developing a strategic plan for K-12 education reform in Tennessee via a statewide Steering Committee of key stakeholders (2) launching a number of Project Teams to initiate both statewide and local education projects and (3) running a grassroots campaign to promote the state's new standards, identify education activists across the state, and create converastions among local community leaders about how each community can improve its local schools.

The Tennessee County Services Association and its affiliates (including the Tennessee County Commissioners Association) are partnering with this effort to pursue positive reforms and improvements to K-12 education in Tennessee. For more information on this initiative, check out its website at: http://www.tennesseescore.org/.

Tennessee General Assembly on Pace for Over 2000 Bills

An important deadline passed yesterday for the state legislature. After Thursday, each Senator may only file 9 more bills, apart from certain exceptions allowed in the rules. With 33 Senators, this means approximately 300 more bills may be filed between now and February 26, which is final bill filing deadline for both Houses. While at the start of the week only a few hundred bills had been filed in each chamber, the total reached 1,948 in the Senate and 1,420 in the House as of 3:00 on Friday. This puts the General Assembly on pace for a little over 2000 bills which has been fairly typical in recent years. As these bills are reviewed I will keep you up to date on legislation of particular interest to county government.

Federal Economic Stimulus Legislation

Today, the U.S. House of Representatives passed a $787 billion economic stimulus bill that was the result of House and Senate negotiations. A vote in the Senate could come today or tomorrow, putting the bill on track for a signature by the original deadline of President's Day. Estimates on how much of this money may come to Tennessee vary and probably do not reflect a detailed analysis of the final version of the 1000+ page piece of legislation. A couple of on-line sources for information on the stimulus bill are the Center for Budget and Policy Priorities at http://www.cbpp.org/ or the site for Federal Funds Information for States, http://www.ffis.org/

As details about funding for Tennessee emerge, we will disseminate this to you as quickly as possible. We have tentatively talked with officials in the Bredesen administration about having a panel speak to county officials at the County Government Day event that TSCA is holding in Nashville on March 3 and 4. This is dependent on whether enough information and accurate analysis is available to pass on to you by then.