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.