►
Description
House Finance, Ways, & Means Committee- Budget Hearing- March 1, 2020
A
A
A
So
members,
you
have
the
information
on
your
dashboard
for
all
the
presentation
documents.
So
with
that
we
are
without
objection
out
of
session
and
going
into
our
presentations
and
first
up
we
have
the
department
of
economic
and
community
development
with
commissioner
roth
and
his
team.
So
if
you
would
come
forward,
commissioner.
C
Madam
chair,
you
met
you
could
obviously
the
we've
got
a
live
mic.
Yes
well
in
the
interest
of
everyone's
time
good
morning,
my
name
is
bobby
roth
and
I
have
the
great
privilege
of
serving,
as
our
commissioner
of
economic
and
community
development,
for
the
state
of
tennessee
to
my
right
is
paul.
Vanderveer
one
of
our
assistant
commissioners
responsible
for
our
senior
policy
and
also
operations
to
my
left,
is
alan
borden.
C
C
C
So
we
wanted
to
share
a
little
bit
about
what
covet
has
meant
to
our
department.
I
think
the
great
news
is.
We
can
say
that
we
have
remained
open
for
business,
and
so
we
hope
we
haven't
missed
any
any
steps
here.
At
the
same
time,
we
can
tell
you
where
we
have
experienced
a
little
bit
of
a
shortfall
we'll
talk
about
that
when
it
comes
to
foreign
direct
investment
here
in
a
minute.
C
But
what
you'll
see
here
is
these
are
the
projects
and
what
we
decided
is
we
wanted
to
take
a
snapshot
of
2020
and
we're
defining
2020
as
our
calendar
year.
So
that's
january,
1
through
december
31st,
and
what
we
wanted
to
do
is
give
you
a
snapshot
of
our
most
recent
report
card
and
then
we
wanted
to
level
set
it
against
the
last
three
years
using
the
three
year
average.
And
what
you'll
note
here
is
that
in
2020
we
did
land
successfully
96
projects
about
14
400,
new
jobs.
C
As
you're
aware,
we
have
offices
and
representations
in
approximately
10
countries,
two
in
asia
and
then
eight
represented
in
europe,
and
what
you'll
note
here
is
that
in
2020
19
projects
down
49
percent
based
on
the
rolling
average,
we
were
able
to
land
those
19
projects
and
3
200
new
jobs
as
far
as
our
rural
projects.
This
is
another
important
data
point
for
us.
C
Again,
what
you'll
note,
though,
when
we
compare
2020
to
the
trailing
three
years,
our
project
numbers
were
down,
30,
somewhat
36
percent
and
then
broadband
you're
very
familiar.
This
is
a
been
a.
You
guys
were
way
ahead
of
the
curve
years
ago,
when
you
created
your
broadband
accessibility
act
and
what
you'll
note
here
is
thanks
to
the
cares
dollars.
C
Last
year,
61
million
was
available
for
funding
crystal
and
her
team
put
basically
lit
up,
58
58
000
tennesseans
across
58
counties,
and
I
think
what
we've
all
discovered
is
with
covid
the
real
importance
of
the
broadband
when
I
think
of
telecommuting,
and
I
think
of
e-commerce
and
small
business
and
entrepreneurism
and
telemedicine
k
through
12.
Just
it's
the
thought
of
not
having
broadband
is
just
unfannible.
C
C
C
As
we
all
know,
governor
lee
mentioned
at
the
state
of
the
state,
the
200
million
dollar
broadband
initiative,
so
that
is
a
non-recurring
one-time
and
then
we
have
our
fast
track
grant
program
but
which
he
has
proposed
at
95
million
and
then
the
re-funding
of
our
rio
program
to
the
tune
of
21.1
million
dollars
as
far
as
proposed
reductions.
These
are
the
reductions
that
we
did
propose.
These
are
the
reductions.
C
I
can
simply
say
this
to
you.
These
proposed
reductions.
We
feel
strongly
that
will
not
impact
the
quality
of
the
work.
We
do
not
only
at
ecd
but
the
stakeholders
across
our
state,
and
you
can
see
they
total
4.7
million
dollars,
rounding
up,
of
which
3
million
of
that
is
coming
out
of
our
fast
track
grant
program.
C
What
we
can
tell
you
is
that,
as
part
of
that
reopening
we
do
see
a
very
robust
pipeline,
one
like
we've
not
seen
in
a
while,
but
nonetheless
that's
to
say
that
we're
going
to
continue
to
do
our
job
with
98
full-time
positions
and,
ladies
and
gentlemen,
that
wraps
up
our
brief
presentation
from
ecd
and
our
team.
We
are
prepared
for
your
questions.
A
B
Thank
you,
madam
chair,
commissioner.
Rolf
I've
got
a
question
or
two
about
your
fast
track
program.
The
proposed
budget
has
a
hundred
and
two
million
dollars
allocated
for
that
program,
which
is
actually
about
the
same
as
it's
been
in
recent
years,
but
most
of
this
is
one-time,
non-recurring
funding.
I
think
only
seven
million
of
this
amount
is
recurring
funding
and
a
couple
of
years
ago
that
that
recurring
amount
was
higher.
It
was,
I
think,
25
million.
Yes,
sir,
how
does
this
shift
in
funding
for
this
program
from
recurring
to
non-recurring
effect?
It's
effective.
C
Well,
mr
vice
chair,
the
good
news
is
thanks
to
your
support.
We
have
been
able
to
fund
every
project
that
we've
pursued.
You
are
correct
up
until
I
think.
A
year
ago
there
was
a
25
million
dollar
recurring
revenue
component.
We've
always
advocated
for
more
of
that.
At
the
same
time,
we
recognize
the
way
the
budgets
are
or
are
put
together,
and
so
we
are
now
down
to
seven
million
of
recurring.
C
B
B
D
D
Where's
sammy
he's
back
there
in
the
back
being
humble
back
there,
commissioner
just
wanted
to
talk
a
little
bit
about
broadband.
Yes,
we
had
a
good
meeting
last
week
and
I
appreciate
you
and
your
team
and
leader
gant,
pulling
that
together
and
just
the
time
we're
able
to
spend
just
regarding
clarity.
But
can
you
speak
to
just
the
the
number
the
200
million
dollar
number?
D
I
know
the
expectation
from
your
department
was
a
a
probably
a
lower
number
and
the
governor
and
his
budget
had
proposed
200
million
dollars
and
based
on
what's
been
spent
over
the
last
couple
of
years
and
that
200
million
I
know,
there's
been
some
questions
about.
Is
there
even
a
demand
for
200
million?
Can
you
just
speak
to
that
specifically
in
the
demand
of
that
200
million?
And
if
that's
an
annual,
an
annual
spin
we're
going
to
spend
that
now
or
if
you
see
that
being
spread
out
over
the
next
couple
of
years.
Yes,
sir.
C
C
And
so
that
is
based
on
the
data
today,
that
there
are
500
or
so
thousand
tennesseans
that
have
inadequate
broadband,
whether
they
have,
when
I
say
inadequate,
sir
I'm
talking
about-
and
you
would
know
these
these
data
points,
but
at
least
broadband
that
has
enough
bandwidth
to
allow
telemedicine
to
route
tele
marketing,
telecommuting,
anything
and
everything
when
it
comes
to
education.
So
crystal
ivy
is
our
all
broadband
person,
sir,
and
so
crystal.
E
Yeah
absolutely
thank
you,
commissioner.
Thank
you
representatives,
so
in
terms
of
the
demand
that
you
asked
about
for
the
the
200
million
in
the
first
couple
of
years
of
the
grant
program,
you're
right,
we've
typically
had
appropriated
about
15
or
20
million
dollars,
or
so
and
and
the
demand
has
far
exceeded
the
amount
of
funding
that
we've
had
available.
Typically,
we
fund
about
a
quarter
to
a
third
of
the
grant
applications
that
we
receive
every
year.
E
So
certainly
the
program
continues
to
be
very
popular
and
I
think
there
continues
to
be
a
demand
there
with
the
200
million
dollars.
We
did
a
calculation
based
on
the
number
of
tennesseans
lacking
broadband
today
and
how
much
approximately
we've
spent
to
fund
the
homes
that
we've
served
in
the
first
few
years
of
the
program
we
came
to
about
400
million
four
to
five
hundred
million
dollars
that
it
would
take
to
serve
the
rest
of
the
state
with
broadband
access.
E
The
current
process
that
we
use
now
for
the
grant
program
is
that
we
require
a
50
50
match
from
broadband
providers,
so
we
do
require
a
pretty
significant
skin
in
the
game.
From
the
broadband
companies
themselves,
and
so
that's
kind
of
how
we
we
came
from
the
400
million
down
to
the
200
million-
is
that
we'd
like
to
continue
to
require
a
match
from
the
broadband
providers?.
E
A
D
Speaking
from
speaking
from
a
perspective,
I've
got
fiber
to
my
home,
I'm
in
a
very
urban
area,
but
looking
at
more
rural
areas,
and
I've
got
multiple
colleagues
that
that
serve
rural
communities
just
sitting
here
right
beside
me.
If
the
goal
is
to
provide
broadband
access
to
everyone,
we
have
to
redefine
what
underserved
and
unserved
is
unserved
unserved
right
now.
Based
on
our
conversations,
am
I
correct
in
saying
that
unserved
you
would
classify
anybody
with
10,
meg
or
less
as
being
unserved.
D
And
so
I
think
it's
extremely
important
that
we
look
at
this
from
an
unserved
perspective
and
we
have
to
operate
from
a
new
definition
of
unserved.
Because,
again,
when
I
go
to
s,
if
I
go
to
anybody
who
has
no
broadband
access
now-
and
I
tell
them-
I
can
get
you
six
meg
dsl,
I
tell
you-
I
could
get
you
a
wireless
connection
with
eight
meg
down
four
meg
up
with
an
sla
that
guarantees
99.9
uptime.
Anybody
I
go
to,
they
would
be
able
to
do
telemedicine.
D
It's
used
right
here
in
downtown
nashville
and
ecd
can
play
a
vital
role
in
pulling
large
entities
together,
windstream
and
iris,
who
is
the
largest
fan,
fiber
transport
provider
in
tennessee.
They
have
more
dark
fiber
in
the
ground
than
anybody
in
the
state,
and
it
is
a
tennessee
company.
They
only
serve
tennessee,
and
so
we
have
to
be
really
outside
the
box
and
we
have.
D
We
can
take
350
million
dollars
and
if
we
utilize
that
the
right
way
and
pull
the
right
partners
in
and
look
at
the
definitions
differently
that
are
defined
now,
we
can
cover
everybody
plus
some
plus
utilizing
that
to
make
to
upgrade
know.
Some
of
these
providers
are
wanting
to
use
this
to
upgrade
existing
networks,
and
that
can
be
part
of
it.
D
But
I
believe
that
almost
like,
with
our
vaccination
rollout,
that
has
to
be
1b
and
we
have
to
look
at
1a
unserved
and
changing
the
definition
and
going
to
those
in
johnny
shaw's
district,
william
lambert's
district,
who
got
nothing.
If
that's
the
goal,
we
got
to
bring
them
something,
and
if
it's
not
10
meg,
that's
okay,
because
this
is
a
work
in
progress.
And
so
thank
you,
madam
chair.
I
just
wanted
that
on
the
record
crystal.
D
F
G
Representative
paul
vandermeer,
the
insurance
companies
bought
200
worth
of
tax
credits
a
number
of
years
ago.
They
are
finishing,
cashing
those
in
at
this
point,
there's
about
400
000
left
for
them
to
cash
in
as
they
cash
those
in
those
are
funded
through
that
money
to
our
budget.
That
goes
back
to
the
department
of
revenue
to
cover
those.
F
Thank
you,
chair,
lady
and
commissioner.
It's
certainly
good
to
see
you
and
your
friends.
I
would
have
already
bragged
on
sammy,
but
unfortunately,
chairman
zachary
beat
me
to
it.
So
certainly
good
to
see
everybody
just
got
a
quick
question
when
looking
at
some
of
the
things,
maybe
that
that
I
just
quite
frankly
don't
see
in
this
budget
is
last
year
the
174
thousand
dollars
for
the
development
districts.
F
I
think
most
of
us
understand
and
know
the
vital
role
that
these
development
districts
play
in
our
communities
and
so,
of
course
the
174
was
left
out
last
year.
We
put
it
back
in
there
non-recurring
and
then
I
I
don't
see
it
in
there
again.
Is
that
correct
and
just
curious,
maybe
why
that
was
not
included.
C
Yes,
sir,
so
the
development
districts
last
year
when
the
world
did
stop,
we
did
have
to.
We
were
faced
with
some
very
hard
decisions,
and
so
we
did
reduce
the
funding
there.
As
you
just
stated,
it
was
refunded.
I
can
simply
share
with
you
that
this
was
what
the
governor
had
recommended,
sir.
In
the
budget.
Okay,.
F
H
D
C
Right
and
they
are
a
great
federal
partner
and
what
we
did
was
we
looked
at
what
their
funding
dues,
if
historically
allowed,
and
so
the
short
answer
is
when
we
took
the
last
three
years
of
their
their
dues
fluctuate
year
over
year,
and
so
we
found
that,
for
example,
we
may
budget
a
dollar
and
then,
when
we
finally
get
our
dues
bill,
it's
95
cents
and
I'm
just
making
that
up.
For
the
point
of
the
conversation.
C
What
we're
talking
about
here
is
we
have
cut
some
dollars
out
of
there,
but
that
will
not
cut
services
and
those
would
have
just
again
because
those
funding
partners,
their
dues
change
every
year.
We've
got
enough
money
in
the
budget
to
make
sure
that
we
don't
cut
services
and
we
meet
those
obligations.
A
Another
thing
that
I
don't
see
in
the
budget
is
sbir
funding
for
launch
tennessee,
and
I
know
I
have
been
maybe
some
of
my
colleagues
on
this
committee
may
have
been
receiving
a
number
of
emails
from
folks
who
are
interested
who've
either
gotten
that
sort
of
funding
in
the
past
they
qualify
for
that
funding.
It
does
bring
with
it
a
federal,
I
think,
a
one-to-one
match.
C
Ma'am
so
madam
chair,
we
are
that
is
part
of
our
launch
tennessee,
our
early
stage,
ecosystem
partner
that
that
you
guys
have
funded
forever
for
us,
and
so
we
thank
you
for
that.
That
reduction
we
had
originally
recommended
that,
but
that
was
a
reduction
that
came
from
the
governor's
office
and
the
fna
team.
A
Well,
as
chairman
hicks
mentioned
on
the
development
districts,
that
that's
something
that
I
look
forward
with
this
committee
to
perhaps
restoring
in
the
budget,
because
I
think
number
one-
it's
money
well
spent
and
number
two.
We
have,
as
I
understand
a
number
of
businesses
in
the
pipeline,
small
businesses
who
would
qualify
for
these
funds,
who
have
proven
their
capability
to
use
them
in
in
a
when
we're
in
an
environment
where
small
business
is
really
under
attack.
A
From
all
the
results
of
a
pandemic,
then
finding
ways
to
help
those
folks
be
successful
seems
to
me
to
be
an
important
function
of
of
launch
tennessee
and
just
of
you
know,
as
a
previous
governor
always
said,
the
state
doesn't
create
jobs,
but
what
we
can
do
is
create
an
environment
for
those
jobs
to
be
created,
and
it
seems
to
me
that
sbir
is
a
good
tool
to
have
in
that
toolbox,
so
again
to
beat
that
dead
horse.
We'll
look
at
with
the
help
of
this
committee.
Perhaps
restoring
some
of
that
funding.
A
A
I
can't
remember
if
it
was
20
million
for
a
wastewater
treatment
and
the
question
was
asked-
and
I
know
it
was
asked
because
I
asked
it
is
this-
is
this
the
last
you
know?
Is
this
all
there's
going
to
be,
and
this
time
I
see
that
there's
another
15
million
dollars
ask
included
in
the
governor's
budget
and
it's
identified
as
cost
of
the
wastewater
project.
So
I'm
assuming
that
some
kind
of
increase
over
what
we
initially
thought
the
cost
was
going
to
be.
C
C
C
C
C
And
so
I
think,
that's
part
of
the
conversation.
I
think
the
best
news
is
governor
lee
and
his
team
have
engaged
all
of
less
than
60
days
ago,
a
site
consultant
team
to
provide
a
swot
analysis,
that's
independent
and
objective,
and
so
that
exercise
is
underway.
As
we
speak,
I
can
tell
you
that
we
are
our
challenges
in
marketing
the
mega
site.
C
Now,
when
we
debate,
if
you
will
what
is
described
as
shovel
ready,
we
would
argue
we
have
the
funding
and
the
resources
in
hand
that
we
can
and
will
be
shovel
ready
when
that
asset
is
ready
to
come
online
or
that
manufacturing
plant.
So
we
feel,
like
we've
done
a
lot
of
things,
including,
as
you
know,
getting
the
the
proper
permitting
and
then
all
of
those
easements,
all
those
private
easements
where
the
pipeline
is
going
to
run
across
private
property.
So
we
would
argue
we.
C
Made
and
completed
all
those
tasks
and
we're
good
to
go
there
again.
I
think
what
the
governor's
office
is
trying
to
determine
is
before
we
start
spending
those
kinds
of
dollars.
Let's
back
up
a
minute
and
let's
identify
what
that
first
users
demands
are
going
to
be,
and
I
think
that's
probably
where
there
have
been
the
challenges.
A
C
Yes,
ma'am,
so
the
task
order
that
was
released
by
general
services.
I
believe
it
was
a
hundred
day
task
order
and
while
the
site
consultant
said
that
they
would
have
that
report
ready
inside
of
a
hundred
days,
I
can
share
with
you
that
they
continue
to
work
diligently
to
wrap
up
that
work.
But
I
think
they've
been
very
mindful
of
trying
to
be
factual
about
gathering
all
of
the
information
and
all
of
the
facts.
A
C
A
C
J
Thank
you
chairman.
Thank
you,
commissioner,
for
coming
just
as
a
follow-up
to
her
discussion.
This
is
this
task
order
that
you
did.
Does
it
incorporate
any
background
data
as
it
relates
to
employees
workforce
as
it
relates
to
if
you
were
to
land
someone
there?
The
reason
why
I'm
concerned
about
it
is
there
are
other
large
projects
outside
of
our
state
borders
that
seem
to
be
pulling
a
population
base
outside
of
our
state
in
order
to
fill
those
jobs.
J
C
J
C
G
A
K
Thank
you,
madam
chairman.
Thank
you,
commissioner.
My
question
may
somewhat
not
be
for
your
department,
but
my
concern
is
the
businesses
that
we
already
have
and,
of
course,
you've
got
business
expansion,
one
of
the
things
that
we're
facing
right
now
in
our
country.
As
we
see
a
changing
world
before
us
is
raw
materials
are
becoming
allocated,
they're
getting
the
supply
chain
has
been
disrupted
and
there's
many
of
our
current
businesses
that
are
facing
layoffs,
not
because
they
don't
have
orders,
but
because
they
can't
get
raw
material.
K
The
shipment
coming
from
overseas
has
tripled
in
price
petroleum.
In
my
business
we
use
foam
rubber,
which
is
a
petroleum-based
component
and
price
we've
had
within
the
last
few
months.
We've
had
like
four
price
increases.
Lumber
is
an
extreme
shortage.
We've
got
all
of
these
things
going
on
and
I'm
just
wondering
what,
if
anything,
that
your
department
could
do
in
helping
sustain
these
businesses
that
are
struggling
right
now,
as
I
said
not
because
they
don't
have
orders,
not
because
people
don't
work,
but
simply
because
raw
materials
are
just
becoming
a
shortage.
K
Part
of
that
has
to
do
with
some
of
the
executive
decisions.
That's
going
on
in
washington,
cutting
off
the
the
pipeline
for
fuel
and
different
things,
and
I'm
seeing
a
tremendous
burden
now
placed
upon
existing
businesses
and
what
they're
going
to
do
about
this-
and
this
is
not
just
a
small
business.
C
C
How
do
you
get
there
and
how
do
we
get
there
sooner
rather
than
later,
because
you
are
right
in
that
particular
case.
We
know
what
you
know:
tennessee
is
home
to
close
to
a
thousand
automotive
suppliers.
It's
about
150,
000
tennesseans,
at
work
in
this
in
this
supply
chain.
So
it's
very
real
to
us
as
well.
C
How
do
we
at
ecd
solve,
for?
I
can
tell
you
what
we
learned
a
couple
of
years
ago,
and
that
is
that
trade
policy
is
made.
It
was
made
at
1600,
pennsylvania
avenue
and,
unfortunately,
no
matter
what
we
were
able
to
communicate
or
articulate.
Now
remember
when
one
out
of
three
projects
we
recruit
are
foreign
direct
investment
companies.
K
K
H
H
The
success
of
this
project
is
vital
to
our
western
grand
division,
as
you
well
know,
and
we
want
to
be
efficient
and
effective
in
how
we
secure
a
tenant
for
this
area.
I
have
learned
a
great
deal.
We've
had
many
conversations
and-
and
I
have
with
your
staff
and
I've
learned
a
great
deal
about
how
this
has
progressed
over
the
years,
and
I
want
to
continue
my
involvement
in
making
the
best
use
of
this
property
for
the
constituents
of
our
state.
H
J
Yes,
I'm
sorry,
I
just
a
follow-up
to
the
chairman,
baum's
original
question
about
fast-track
monies.
I
I
don't
know
if
you
said
this,
I
was
just
wondering
as
somebody
some
business
develop
myself.
I
like
the
idea
of
knowing
there's
recurring
dollars
out
there
that
I
can
invest.
It
does
seem
like
over
the
last
several
years,
we've
taken
fast
track
money,
moved
it
from
recurring
dollars
to
non-recurring
dollars.
There
is
some
volatility
in
doing
that.
J
I
personally
think,
especially
when
we're
making
so
many
investments
in
in
95
counties
across
the
state
as
it
relates
to
this
money.
Are
you
concerned
at
all
about
this
being
reoccurring
or
focusing
more
on
non-recurring
money
than
reoccurring
money
as
it
relates
to
fast
track,
or
it
doesn't
matter
to
you.
C
Well,
no,
sir,
we
would
love
for
as
much
recurring
dollars
to
be
in
that
fast
track
bucket,
but
we
also
recognizes
the
demands
on
capital
across
the
state
and
the
decisions
that
you
guys
are
faced
with.
So
the
short
answer
is:
while
we
would
love
more,
we
accept
the
amount,
but
I
think
what
I
want
to
articulate
to
this
group
is:
we
have
not
ever
had
a
project
where
this
body
has
not
been
supportive
and
provided
the
resources
through
supplementals
or
capital
grants.
Sir.
So
we
we're
grateful
for
that.
J
Yeah,
I
think
that's
a
great
question.
I
do
know
that
alan
and
his
team
is
working
diligently
across
the
strait
to
try
to
a
state
to
try
to
deploy
these
revenues,
and
so
I'm
I
have
some
trepidation
that
this
divergence
from
reoccurring
dollars
to
non-reoccurring
dollars
in
particularly
when
we
have
a
year
where
financially,
we
can't
supplement
it
with
non-recurring
money
and
keep
the
numbers
as
high
as
they
have
been
in
the
past.
And
so
that's
something
I'm
going
to
continue
to
look
at.
J
A
And
just
to
follow
up
on
that,
you
had
said
originally,
I
think
in
the
original
response
to
chairman
baum
that,
as
rightly
you
should,
if
you
make
a
commitment
to
a
company
and
the
company
is
going
to
take,
you
know
their
first
year's
infrastructure.
Their
second
year
is
equipment
purchasing
their
30
years,
they're,
finally
training.
So
you
have
a
three-year
commitment
with
fast
track
dollars
that
you
go
ahead
and
set.
Those
aside
so
help
me
understand
how
that
works.
If
you
have
only
7
million.
C
Now.
The
great
news
about
how
we
do
this
in
tennessee
is
that
when
we're
recruiting
companies,
our
formulary
is
based
on
a
per
net
new
job
being
created,
and
so,
if
a
company
comes
to
tennessee
and
says
we're
going
to
create,
for
the
sake
of
this
conversation,
a
thousand
new
jobs
and
if
our
average
fast-track
commitment
for
the
sake
of
this
conversation
is
five
thousand
dollars
per
net
new
job.
C
That,
I
believe,
is
a
five
million
dollar
commitment,
so
we
would
make
that
commitment.
The
company
would
sign
an
accountability
agreement,
so
they
would
be
legally
bound
as
they
take
down
those
dollars.
These
are
reimbursable
dollars,
so
they
have
to
spend
the
money
first
and
then
they
come
to
the
state
and
ecd
to
be
reimbursed,
and
then
some
of
these
projects
take
a
couple
of
years
to
construct
and
so
those
we
fund
based
on
when
they
present
their
their
reimbursement
documents.
C
Other
states
have
different
formularies
and
probably
the
one
that
is
most
competitive
are
states
that
have
personal
income
taxes
and
believe
it
or
not.
A
company
will
come
to
their
state
and
if
they
calculate
what
that
individual's
personal
income
tax
is
over
a
10-year
period,
the
state
will
collect
that
person's
personal
income
taxes
and
then
rebate
those
dollars
to
that
company
over
a
10-year
period,
and
I
don't
want
to
get
too
technical.
C
But
I
can
just
tell
you
that
just
strikes
us
as
offensive
and
I'm
sorry,
but
why
should
my
employees
be
funding
my
incentives
that
are
going
to
the
states,
so
they
can
come
back
to
my
employer
and
I'm
not
going
to
debate
that
for
this
conversation.
But
I
can
say
right
now
what
you've
allowed
us
to
what
you
funded
and
how
the
program
works.
Today,
we've
had
an
enormous
amount
of
success
in
continuing
to
allow
tennessee
to
lead
the
southeast
when
it
comes
to
the
creation
of
new
jobs.
A
I
think,
given
the
circumstances
of
this
year,
seeing
the
while
there
were
some
negative
percentages
and
in
terms
of
you
know,
measuring
against
past
years,
I
certainly
would
count
2020
very
successful
for
tennessee,
and
I
know
that's
because
of
the
great
work
that
you
all
have
done
and
hopefully
because
some
of
the
work
that
we
have
done
as
a
general
assembly
and
as
administration
to
give
you
the
tools
that
you
need
to
do
that.
So
we
look
forward
to
continuing
to
work
with
you
to
bring
jobs
to
all
of
tennessee,
all
of
our
grand
divisions.
A
We
just
want
to
make
sure
that
we
use
the
dollars.
They
are
not
our
dollars
their
taxpayer
dollars
and
we
want
to
make
sure
that
we
use
those
in
the
best
way
possible
to
get
the
best
return
on
investment
for
all
tennesseans,
and
I
know
that
you
all
work
hard
every
day
to
make
sure
that
happens.
So,
thank
you
again.
C
Madam
chair,
one
final
closing,
if
I
could
certainly
on
behalf
of
the
100
colleagues,
I
work
with
every
day
at
ecd,
I
can
tell
you
we
ask
every
one
of
them
to
be
forward-facing
and
be
customer
focused
and
with
the
pandemic.
The
good
news
is,
we
were
able
to
not
miss
a
beat,
except
the
numbers
are
down
what
I
can
just
leave
you
with.
As
far
as
a
closing
observation
is
really
honor
about
january
1st
of
this
year,
it's
like
the
world
is
starting
to
reopen
again
now.
A
Thank
you
again
and
again.
I
think
that
that
pipeline,
hopefully
the
things
that
that
have
been
done
in
tennessee,
to
make
us
a
very
business
friendly
state,
are
paying
off.
In
terms
of
you
know,
I've
read
an
article
or
a
number
of
articles
actually
about
tennessee
being
attractive,
not
only
retirees
or
interested
in
coming
here,
because
we
have
no
income
tax,
but
also
just
because
of
the
business
climate
that
that
again,
the
legislature
as
a
whole
working
with
this
administration
and
the
ones
before
it
have.
A
You
know,
worked
together
to
perpetrate
in
tennessee,
so
that
we're
hoping
that
we're
helping
you
bring
that
business
and
not
only
bring
in
and
have
them
knock
on
the
door,
but
have
them
sign
on
the
dotted
line.
So
we
look
forward
to
hearing
from
you
next
year
about
all
the
great
successes
in
2021
from
that
pent-up
demand.
I
A
A
The
conversation
seems
to
be
quickly
deteriorating,
so
I
will.
I
will
call
us
back,
call
us
back
to
order
and
welcome
the
folks
from
the
department
of
transportation
who
are
here
this
morning.
Thank
you
for
joining
us
on
a
monday
morning
and
commissioner
whoever's
gonna
start
off
just
feel
free
to
begin,
and
I
would
ask
each
of
you
if
you
have
different
speakers,
if
you
would
just
identify
yourself
for
the
record
before
you
begin
to
speak
the
first
time
so
with
that,
commissioner.
M
It
says
off
is
that
working
now,
okay,
chair
lady
hazelwood,
thank
you
for
allowing
us
to
be
here
this
morning
to
present
our
budget.
As
this
is
the
fy
22
budget
presentation.
I
would
like
to
have
joe
galbato
go
through
that
with
you
to
my
right,
though,
is
mr
paul
deggs.
Our
chief
engineer,
joel
galbato
to
my
left
is
a
chief
financial
officer,
so
you
you
recognize
these
faces.
One
face
you
may
not
recognize
this
morning
is
mr
preston
elliott.
M
I
All
right
good
morning,
thank
you
chairman,
thank
you
committee,
so
we'll
try
to
make
this
as
quick
as
possible.
Allow
plenty
of
time
for
questions.
So
are
you
guys
going
to
work
the
slides
for
us?
Yes,
okay,
yeah,
all
right,
so
our
first
slide
is
a
high
level
look
at
the
variances
fiscal
21
versus
fiscal
22.
As
you
can
see,
on
the
federal
side,
we
will
be
down
six
million
dollars
on
the
state
side,
we'll
be
up
almost
114
million
and
on
the
local
revenue
side
will
be
about
the
same.
I
So
the
next
three
slides.
We
will
talk
about
the
variances
in
a
little
bit
more
detail
on
the
federal
side,
pretty
simple
to
understand.
So
the
cares
act
has
some
spillover
funds
from
fiscal
20
to
fiscal
21.,
there's
no
such
spillover
in
fiscal
22.
Therefore,
the
variance
on
the
state
side
a
little
more
busy,
but
worth
talking
about
so
our
state
user
fees,
the
user
fees
are
defined
as
gas,
diesel
special
petroleum
and
vehicle
registration.
I
They
will
be
down
year
over
year
about
23
million
dollars.
So
when
the
funding
board
put
all
the
projections
together
in
fiscal
21,
we
felt
that
they
were
a
little
bit
aggressive
and
I
actually
will
discuss
more
of
that
in
about
two
slides
and
you'll,
see
what
we're
talking
about
this.
The
number
that
they
put
forth
for
fiscal
22
seems
to
be
much
more
reasonable
and
again
we'll
talk
about
that
in
two
slides.
I
The
next
three
bullet
points
talk
about
the
three
initiatives
that
the
governor
wanted
as
far
as
general
fund
infusions
into
tdot.
He
wanted
85
million
into
our
rail
program,
40
million
into
our
aeronautics
program
and
10
million
in
the
aeronautics
economic
development
fund
and
then
on
the
local
slide.
Again,
local
revenue
will
be
about
the
same
year
over
year,
based
on
the
projects
that
we
think
are
going
to
come
in.
I
So
if
we
go
to
the
next
slide,
which
is
the
reasonability
slide,
so
I
know
this
slide's
a
bit
busy,
but
I
can
take
you
through
it
to
make
it
very
very
clear,
so
we
wanted
fiscal
19
actuals
up
there,
so
that
you
could
see
what
it
looked
like
in
a
non-coveted
world.
We
put
fiscal
20
up
there,
because
that
has
two
months
of
covet
impact
to
tdot,
and
then
you
see
our
budgets
for
21
and
proposed
from
22..
I
I
The
funding
board,
as
you
can
see
in
fiscal
22,
has
dropped
the
numbers
from
534
to
514
in
recognition
of
covid.
We
are
concerned
about
that
number
just
because,
as
of
today,
our
gas
is
trending
toward
480
million
or
so
on
the
diesel
side.
The
good
news
is
diesel,
really
was
not
impacted
by
covet
at
all.
The
186
million
that
you
saw
in
fiscal
19
grew
to
210
million
in
fiscal
20..
I
The
special
petroleum
number,
that
is,
the
1.4
cent
fee.
You
have
one
cent
fee
on
petroleum
and
all
volatile
fuels
and
a
four-tenths
environmental
insurance
fee
for
underground
storage
tank
regulation.
That's
always
hanging
in
the
mid
30s
and
that's
where
it's
at
on
vehicle
registration.
It
was
also
impacted
by
kova.
I
I
so
that
65
million
is
composed
of
a
one-time
one-time
payments
from
two
particular
railroads
on
the
old
taxes,
the
old
excise
to
the
new
excise
tax
and
the
old
sales
tax
that
was
39
million.
Without
that
39
million
that
65
becomes
26
24
on
air
and
to
unreal
on
the
next
slide.
This
is
the
brag
slide.
We
like
to
we'd
like
to
tout
at
tdot.
I
So
we
want
to
move
forward
next.
Few
slides
will
talk
a
little
bit
on
the
federal
side,
so
you
can
understand
where
we
stand
today
on
the
fast
act.
As
you
remember
last
year,
we
didn't
expect
them
to
pass
a
long-term
bill
and
they
didn't
do
that.
I
want
to
in
part
on
the
committee
that
long-term
funding
is
imperative
for
not
just
tennessee
but
all
state
transportation
departments,
because
it
helps
us
with
our
continuity
of
project
planning.
I
But
as
your
chief
financial
officer,
I
would
say
just
as
important,
if
not
more
important
is
stable
and
reliable
funding
so
in
washington.
The
highway
trust
fund
today
gives
out
more
than
it
takes
in
if
it
takes
out
more
than
takes
in
at
some
point,
it
requires
one-time,
arbitrary
general
fund,
infusions
in
september
20.
It
required
14
billion
dollars.
I
It's
estimated
that
to
do
another
long-term
bill,
it
could
be
upwards
of
100
billion
dollars
of
general
fund
money
coming
in,
which
is
sizeable,
but
be
that
as
it
may,
we
are
all
hoping
for
a
long-term
funding
package
and
we
wanted
to
focus
on
formula
funding
rather
than
one
time
our.
You
know
arbitrary
grants
and
then
last
we
always
like
to
thank
the
legislature
previous
legislatures,
our
previous
governors
and
our
current
governor
for
keeping
us
debt
free,
as
as
only
as
one
of
only
five
states-
that's
debt
free.
I
All
right
so,
as
you
all
know,
we're
funded
federally
by
federal,
highway,
federal
transit
and
federal
aviation.
The
cares
act
did
not
give
any
money
to
federal
highway,
but
they
did
give
money
to
federal,
transit
and
federal
aviation.
So
this
slide
talks
about
what
happened
so
on
the
karex
side
for
transit,
232
million
dollars
came
to
tennessee,
and
the
vast
majority
of
that
came
to
the
big,
the
big
cities,
memphis
nashville,
knoxville
and
chattanooga,
but
195
came
to
our
small
urban
and
rural
agents,
transit
agencies
and
it
was
used.
I
The
the
intent
was
to
use
it
for
operating
expenses.
Obviously,
with
fair
box
revenues
being
down
with
revenues
being
down,
they
needed
something
to
keep
them
going
and
that's
what
karezak
did
the
next
slide?
Actually
the
same,
the
same
scenario
happens
with
federal
aviation.
125
million
came
to
the
state
of
tennessee
for
aviation,
most
of
that
to
the
major
air
carrier
airports,
but
about
four
and
a
half
million
came
to
us
for
general
for
the
general
aviation
folks.
They
use
it
for
operating
expenses,
but
they
can
also
use
it
for
the
federal
match.
I
So,
as
I
said,
we
got
nothing
as
far
as
federal
highway
from
the
cares
act,
but
this
backstop
funding,
the
latest
coronavirus
thing,
gave
us
some
money.
Now
we
want
to
be
very
careful
with
everybody
so
that
they
understand
this
is
not
stimulus.
This
is
not
money
on
top
to
do
extra
things.
This
is
to
fill
the
gap
that
we
are
for
us
losing
our
state
user
user
fees.
I
So,
as
I
said
before,
we've
collected
fewer
dollars
in
fiscal
20
than
we
had
anticipated
because
of
corona.
That
was
33
million
dollars.
Right
now,
we're
anticipating
that
we
will
be
down
from
budget
about
75
million.
We
think
that
will
continue
in
fiscal
22
as
well.
So
when
all
is
said
and
done,
fiscal
20,
21
and
22,
we
will
be
down
anywhere
from
180
million
to
220
million
dollars.
L
Sure
sure
paul
diggs,
I'm
a
chief
engineer
with
the
department,
so
one
of
the
things
that
we
had
to
do
if
you'll
recall
mr
galbata
had
mentioned
that
we
we
had
a
budget
that
was
prepared
prior
to
covet,
hitting
for
the
current
fiscal
year
or
for
the
last
fiscal
year
and
the
current
fiscal
year,
so
we
had
to
actually
go
through
and
make
cuts
in
our
budget.
So
we
looked
at
several
areas
in
the
department.
L
One
was
just
in
our
routine
maintenance
area,
so
some
of
the
routine
maintenance
activities
we
do
grass
mowing.
For
instance,
we
cut
a
cycle
out
of
our
grass
mowing
for
the
calendar
year
21,
you
know
grass
mowing
contracts.
We
also
looked
at
just.
We
had
a
small
structures,
replacement
or
small
small
culvert
replacement
program.
L
Does
you
know
things
six
and
eight
foot
wide
culverts
under
roads
and
stuff
like
that
and
just
some
odds
and
ends?
So
it's
about
10
million
dollars
that
we
cut
out
of
that
budget.
We
so
one
of
the
things
we're
doing
with
some
of
those
cuts
is
trying
to
restore
areas
that
we
cut.
We
also
in
we
had
a
transit
capital
grant
assistance
program
and
we
worked
with
the
the
transit
providers
in
tennessee
and
we're
able
to
re
re-en.
L
We
just
opened
bids
and
awarded
in
february
as
an
example
of
a
project
like
that,
but
we
also
wanted
to
look
at.
Where
are
we
having
some
areas
to
where
state
of
good
repair
is
an
issue?
So
we're
looking
at
some
of
the
some
of
the
large
bridges,
primarily
on
the
interstate
system
that
are-
and
these
are
improve,
act
projects
as
well
and
so
we're
going
to
tackle
a
couple
of
those
and
then
we've
got
some
concrete
rehabilitation
in
memphis,
for
instance,
on
the
north
side
of
memphis
on
I-40.
L
We
have
some
concrete
pavement
that,
if
you've
driven
through
there,
it
is
reminiscent
of
what
I-440,
maybe
look
like
over
in
knoxville.
A
piece
of
640
and
just
most
of
most
of
our
system
has
an
asphalt
roadway.
But
when
concrete
pavement
gets
to
the
end
of
its
useful
life,
you
have
to
put
a
much
larger
investment
in.
So
we
want
to
do
some
of
that
with
those
and
then
about
20
million
dollars
for
for
safety
type
projects
out
there.
I
I
I
So
in
2020
we
put
360
million
toward
bridge
repair
and
resurfacing.
We
increased
that
to
430
million
dollars
in
the
current
year,
because
paul's
engineering
staff
analyzed
and
to
keep
it
in
the
same
state.
It
was
a
previous
year
was
going
to
require
more
more
work.
So
we
do
that
and
we
put
our
money
where
our
mouth
is.
I
We
were
very
disturbed
on
on
the
number.
The
second
bullet
point
on
the
fatalities
continue
to
grow
grow
on
our
roadways
up,
90
or
so
every
year
it's
not
acceptable
on
the
headcount
reduction.
We
did
comply
with
the
legislative
directive.
We
reduced
20
heads
at
tdot,
based
on
that
I'll
remind
you
all
that
we
reduced
63
a
couple
years
ago
for
the
same
ask,
but
in
addition
to
that,
we
continue
to
give
heads
to
different
state
agencies
for
the
shared
service
initiative.
I
So
the
department
of
human
resources
received
six
of
our
head
count
for
the
transactional
personnel
sts
received
16
of
our
personnel
for
the
workstation
consolidation,
folks
and
department
of
finance
administration
received
25
of
our
heads
for
the
centralized
accounting
initiative
we're
in
good
weather
today,
but
a
couple
weeks
ago.
It
wasn't
so
good.
I
So,
rather
than
have
three
four
five
people
in
a
vehicle
we
might
have
only
had
one,
maybe
two:
we
had
cleaning
supplies,
we
had
ppe,
so
we
did.
We
did
the
best
we
could
and
we
think
we've
done
a
good
job
and
I
want
to
brag
on
our
information
technology
folks
for
the
folks,
like
myself,
in
administration
across
the
street,
when
the
governor
gave
the
directive
along
with
commissioner
to
go
home.
I
We
many
many
years
ago
all
had
laptops
tablets
connectivity
to
our
files,
so
we
went
home
and
and
pretty
much
conducted
business
as
usual
or
as
the
new
usual
many
other
departments
of
transportation
across
the
country
were
just
trying
to
grapple
to
get
computers
back.
So
we
were
proud
of
our
folks
and
then
I
think
you
know
we
have
a
big
focus
on
safety,
and
I
know
commissioner,
wants
to
talk
about
that.
So
with
that,
I
guess
we'll
turn
it
over
to
the
committee
and
answer
any
questions.
You've
got.
M
Yes,
ma'am
I'll,
just
briefly
touch
on
that
it
won't
take,
but
a
minute,
as
joe
said,
the
road
fatalities
continue
to
treat
trend
up
as
far
as
actual
numbers.
From
year
to
year.
We
can
continue
to
work
with
the
department
of
safety
on
how
we
can
best
help
them.
Our
mission
statement
is
safe
and
reliable
transportation,
so
we
we
are
continuing
to
be
concerned
with
that.
M
One
thing
I
will
mention
to
this
group
here:
there
is
a
work
zone
safety
group
that
we
put
together
back
in
back
in
june,
jay
norris,
who
heads
up
our
department
of
safety
within
tdot.
We've
got
a
working
group
between
us,
the
tennessee
road
builders
and
also
the
department
of
safety
to
address
concerns
and
ways.
We
can
make
the
actual
work
zones
themselves
for
our
people,
as
well
as
the
driving
public
going
through
those
areas
make
them
make
them
a
safer
place
as
far
as
ways
we
can
do
that.
M
A
A
J
Thank
you
chairman.
Thank
you,
commissioner,
and
team
for
being
here
today.
You
actually,
I
was
fixing
to
brag
on
those
tennessee
tech
engineers
just
got
to
see
paul
doug
sitting
there,
but
then
you
mentioned
one
young
man
there
jay
norris,
it's
also
a
tech
grad,
a
good
friend
of
mine.
I
appreciate
the
work
you
guys
are
doing.
I
noticed
the
governor
included
an
additional
85
million
dollars
in
the
budget
for
the
transportation
equity
fund,
as
relates
to
rail.
I
Okay
I'll
start
and
then
I'll
pass
it
over
to
preston.
That
goes
in
his
bureau.
As
far
as
what
we
collect
on
the
rail
side,
not
very
much
in
the
last
several
years
well
under
well.
Under
a
million
this
year
we
collected
2
million
of
rail
of
rail
revenue
and
then
an
extra
39
of
the
back
payment
that
we
talked
about.
I
But
what
this
85
is
meant
to
address
and
and
I'll
turn
it
over
to
preston
is
there
was
an
assessment
done
by
preston's
folks
of
the
needs
assessment
and
it
came
to
well
over
300
million
dollars,
but
to
get
rail
up
to
a
25
mile,
an
hour,
speed
limit
for
strains
and
get
the
bridges
in
good
shape.
That's
that's
really
what
what
it
was.
So
I
don't
know
if
you
want
to
expand.
N
So
the
last
time
a
needs
assessment
was
undertaken
was
in
2005
and
we
just
recently
completed
one
this
last
year
and
what
that
does
is
it
looks
at
the
there's
21
short
lines
throughout
the
state
of
tennessee
with
16
authorities
and
just
as
a
note,
they
they
touch
about
33,
rural
counties
and
nine
distressed
or
at-risk
counties.
So
the
the
needs
assessment
looked
at
a
variety
of
aspects.
It
looked
at
the
the
speed
that
trains
can
travel.
N
N
Only
about
46
of
that
short
line
system
does
that
today,
as
it
relates
to
that
that
capacity,
as
I
mentioned
to
you
in
terms
of
weight,
it's
a
it's
a
number
called
286,
it's
a
it's.
A
tonnage
of
weight
that
can
be
carried
across
and
we
find
about
about
41
of
that
system
doesn't
meet
that
threshold
as
an
example
and
then
the
last
part
on
the
structures.
As
I
mentioned
to
you,
we
there's
three
categories:
there's
poor,
fair
and
good,
and
the
fair
and
poor
account
for
about
61.
N
So
when
you
take
into
consideration
those
aspects
of
condition
that
equates
to
about
291
million
dollars
worth
of
need,
so
let
me
back
up
to
the
2005
study
how
we
distributed.
Those
dollars
were
largely
based
on
those
needs
and
those
needs
are,
are
essentially
maintenance.
So
what
we're
talking
about
here
is
that
85
million
is
allowing
for
us
to
catch
back
up
on
deferred
maintenance,
essentially
because
we
haven't
had
that
reliable,
steady
revenue,
source.
J
Well,
I'm
I'm
happy
to
see
that
you're
investing
additional
dollars
in
the
system.
I
know
chair
chair,
lady
weaver
has
a
bridge
on
the
rail
that
you
have
to
cross
before
you
can
get
to
three
or
four
other
districts
to
the
east,
and
so
it's
good
that
we're
doing
that.
You
mentioned
that
a
305
million
dollar
assessment
as
it
related
to
making
the
repairs
that
are
necessary
based
upon
the
assessment.
So
would
it
be
fair
to
say
that
this
only
gets
us
a
third
of
the
way
there
or.
N
J
Guess
sorry,
I've
got
one
more
question,
you
you
stated
or
we
saw
the
transportation
equity
fund.
There
was
143
thousand
dollars
that
came
in
in
tax
revenue,
but
it
also
that
revenue
last
year
dropped
to
forty
forty
one
thousand.
I
guess
my
question
is
is:
is
that
a
byproduct
of
decisions
that
we
make
or
is
it
coveted
related,
or
why
do
you
see
the
the
big
variant
there
we
do?
We
expect
to
see
it
come
back
up
or
is
it
going
to
be
there
again.
I
So
as
as
we
we
discussed
before
so
as
as
to
mention
so
we
are
enjoying
from
collecting
on
the
rail
side
because
of
the
two
lawsuits
there's
a
lawsuit
on
the
original
sales
tax,
that's
still
for
still
ongoing,
we're
hoping
it's
going
to
be
resolved
soon
and
then
on
the
new
cents
per
item,
the
17
cents.
So
we
do
today
there
is
30
million
dollars
or
so
in
an
escrow
fund
waiting
to
be
distributed,
but
we
will
not
be
distributed
to
tdot
until
we
get
resolution
of
those
lawsuits.
B
I
Sure
so
the
the
the
original
rail
tax
was
an
a
was
a
sales
tax,
a
percentage
and
that
I
think,
has
been
paul
correct
me
if
I'm
wrong,
I
think
we've
got
favorable
reviews
on
that,
but
it's
not
completely
solid.
Yet,
on
the
current
sales,
the
current
excise
tax,
it's
still
ongoing,
so
we're
enjoying
from
collecting
the
bringing
those
to
tita.
So
there's
about
30
million
30.1
million
in
escrow
today.
L
Yeah,
I
I
think
just
to
be
clear.
The
the
the
lawsuit
was
was
on
the
original
tax
was
brought.
It
was
an
equity
issue
that
the
class
one
rails
sued
over
this
body,
the
tennessee
general
assembly,
changed
the
law
as
a
result
of
that
lawsuit.
So
we
believe
that
you
know,
as
it
goes
to
the
courts,
that
we're
going
to
get
a
favorable
ruling
on
the
original
lawsuit.
L
But
it's
just
not
done
yet,
but
even
if
so,
if
we
do
get
a
favorable
ruling
we're
not
going
to
have
to,
then
we
don't
have
to
pay
back
a
bunch
of
money.
We
should
get
a
one-time
sum
of
maybe
30
million
dollars,
or
so
the
second
lawsuit
is
still
fairly
early.
I
guess,
if
you
will
in
the
the
process-
and
it
just
it
takes
years
to
go
through,
that
we're
largely
powerless
just
it's
kind
of
at
the
mercy
of
the
courts.
If
you
will
for
it
to
work
its
way
through.
F
Thank
you
all
for
being
here.
You
all
have
a
massive
amount
of
personnel,
a
massive
amount
of
projects
dealing
from
the
federal
government,
all
the
way
down
to
our
cities
and
local
counties,
and
I
just
appreciate
the
work
that
you
all
do
what
an
enormous
responsibility
that
you
provide
on
behalf
of
our
state.
So
thank
you
very
much
for
that.
M
We've
got
the
information
through
that,
as
far
as
what
our
needs
are
to
either
increase
the
level
of
our
the
quality
of
our
general
aviation
airports
or
keep
them
trending,
you
know
treading
water,
basically,
so
this
money
that
we're
going
to
get
the
40
million
will
be
split
between
the
air
carriers
getting
20
million
and
the
general
aviation
getting
20
million.
So
we've
got
about
65
or
so
general
aviation
airports
across
the
state,
so
20
million
will
not
really
get
us
trending
upwards.
F
Yeah,
thank
you
mike
cheers.
A
couple
follow-ups
will
that
be
a
grant-based
program
for
our
local
general
aviation
programs
there'll
be
grants
where
they
can
applaud
yeah,
okay,
then.
Finally,
I
guess
is
there
any
overlap
in
the
funds
for
the
federal
covert
relief
that
are
providing
any
money
toward
this
40
or
the
20
million?
I
I
I
didn't
mention
that
I
should
have
probably
done
that,
so
the
crr
ssa,
the
coronavirus
relief
act,
43.9
came
the
state
of
tennessee
42.8
came
to
the
major
airports,
the
air
carrier,
airports
1.1,
came
to
general
aviation,
so
it's
a
very
small
amount,
but
again
every
little
bit
helps
for
our
general
aviation.
That's
right.
M
Okay,
thank
you
very
much
tim,
so
I'll
expand
on
one
thing.
Our
aeronautics
group,
just
like
we
deliver
roads
and
bridges
area.
Aeronautics
groups
works
with
all
those
general
aviation
airports
across
the
state,
helping
them
through
the
process
of
the
grants
that
they
can
receive
out
there.
What
money
is
available
and
helping
them
with
the
quality
of
the
projects
that
they're
putting
in
out
there.
So
there's,
I
wouldn't
say,
there's
oversight,
but
there's
a
lot
of
work
that
our
group
does
with
them
just
to
help
them
through
that
process.
Great.
M
F
F
Fund
and
with
the
aim
to
impact
job
creation,
investment
opportunities
in
our
general
aviation
industry
through
grants
to
local
airports.
Two
questions,
first
of
all,
is
how
many
grants
will
likely
be
given
with
this
funding,
and
is
there
a
requirement
for
matching
funds
or
to
secure
other
funding
for
these
grants?.
I
So,
as
far
as
the
number
of
grants-
I'm
not
sure
chairman,
I
don't
know
how
many
I,
if,
if
you
want
the
stats
on
the
previous,
because
we
had
three
previous
aeronautics
economic
development
funds,
one
for
30,
one
for
20
and
one
for
six.
So
I
can
give
you
that
information.
So
I
have
no
idea
how
many
people
will
apply
for
the
10
million.
What
what
was
the
other.
I
J
F
I
F
F
F
Can
you
give
me
that
breakdown
one
more
time
we've
extended?
It
was
set
to
expire
on
the
on
the
prior
federal
fiscal
year,
but
it's
been
extended
for
a
year.
What
kind
of
an
impact
is
that
having
on
our
budgeting
and
are
we
in
danger
of
losing
any
federal
revenues?
Should
we
not
be
ready
to
spend
it
all.
I
Okay,
so
yes,
it's
a
good
question
sherman,
so
it
was
extended
one
year,
so
it
was
supposed
to
expire
september,
30th
of
20..
It's
now
going
to
expire
september,
30th
of
21..
What
they
did
was-
and
we
kept
this
in
our
budget.
We
anticipated
that
they
would
kick
the
can
down
the
road
and
the
funding
in
21
would
be
equivalent
to
fiscal
20,
and
so
that's
what
we've
done
we
have
as
far
as
we're
aware
of
there's
no
danger
of
losing
any
federal
funds.
I
F
A
good
follow-up.
Thank
you,
madam
chair.
As
we
look
at
this
as
well
hope
springs
eternal.
I
understand
the
optimism
there,
so
I
want
to
go
to
another
slide
where
we're
talking
the
discussion
items
slash
state
and
we
did
talk
briefly
about
the
fix
it
first
program.
36
excuse
me
360
million
to
430
million.
What's
the
source
of
those
funds,
and-
and
if
you
mentioned
it,
forgive
me,
but
what's
the
source
of
those
funds.
I
Well,
the
source
of
the
funds
that
those
are
state
funds
so,
but
we
have
about
of
that
430
million
about
100
million
estate
and
about
330
is
federal.
So
what
what
we
do
each
year?
We
you
know
when
paul
and
all
of
us
put
the
three-year
plan
together.
We
pull
that
money
off
the
top.
But
again,
there's
330
on
the
federal
side,
about
99
to
100
million
on
the
state
side,
and
that's
actually
broken
up
into
this
year,
be
about
280
million
on
resurfacing
and
about
150
on
bridge
repair.
F
And
last
follow-up:
I
promise
madam
chair
as
we're
talking
about
the
the
potential
over
collections
and
as
we're
looking
to
close
out
this
budget.
Are
we
looking
to
to
utilize
those
facility
maintenance,
maintenance
dollars
with
any
of
our
road
facilities,
and
I
know
we're
talking
about
a
lot
of
capital
improvements
to
to
buildings,
to
to
higher
ed
buildings
and
things
of
that
nature?
Are
we
having
discussions
about
any
transportation
facilities
that
need
some
ongoing
maintenance
and
improvements?
It's.
I
A
good
question-
and
thank
you
that's
that's
actually
part
of
the
governor's
mission-
is
to
cut
our
deferred
maintenance,
and
so
this
year
we
put
16
million
dollars
in
to
the
facilities.
So
we
and
we
spread
that
across
the
state,
whether
it's
in
strawberry
plains
in
memphis,
in
jackson,
in
middle
tennessee,
we've
got
16
million
dollars
worth
of
improvements
to
our
state
facilities
across
the
state.
L
Thank
you,
madam
chair
gentlemen,
good
to
see
y'all
today
hope
you
will
I've.
I
was
here
when
the
improve
act
passed
and
if
I
remember
right
paul,
commissioner,
there
was
close
to
a
thousand
projects
that
were
in
the
actual,
improve
act,
and
there
was
there
was
a
project
in
all
95
counties
in
tennessee
that
were
part
of
that.
That's
correct.
Can
you
bring
us
the
committee
up
to
speed?
Are
we
on
track?
Are
we
behind
where,
where
that
bill
that
we
passed
called
the
improved
act?
L
L
So
there's
a
1021
project
segments
out
of
the
962.
we
have
a
320
of
them
were
in
the
engineering
phase.
90
of
them
were
in
right
of
way.
92
in
construction.
We've
completed
122
of
them
and
about
397.
We
have
not
started
yet
and
when
I
say
not
started,
we
have
not
budgeted
the
engineering
work.
We
are
doing
the
conceptual
work
on
those
projects
to
to
get
the.
So
when
we're
ready
to
budget
the
engineering
that
we
can
go
right
to
work
and
we
don't
have
to
start
from
scratch.
L
So
if
you
do
the
math,
that's
about
61
of
the
projects
are
either
underway
or
completed
right
now.
Your
question
about
on
track
is
is
a
it
to
answer
that
question.
The
the
legislation
that
was
passed
is
is
not
indexed
to
inflation,
and
so
we
we're
seeing
about
five
percent
inflation
a
year
in
transportation
programs.
L
So
it's
hard
for
us
to
put
a
hard
completion
date,
but
at
the
time
we
were
thinking
that,
probably
between
15
and
20
years,
to
deliver
the
projects.
Here
we
are
going
into
the
the
fourth
year
of
its
implementation
and
we're
at
60
percent.
So
I
think
that
we're
doing
well
in
in
meeting
the
objectives
that
the
general
assembly
put
forth
in
the
in
the
legislation
and-
and
I
feel
pretty
good
now
if
we
can
find
you
know,
one-time
money,
grant
programs,
we
have
been
successful
in
the
last
several
years.
L
There
have
been
several
grant
programs
on
the
federal
side
that
we
we've
applied
for
lamar
avenue
and
memphis,
for,
for
instance,
was
you
know
it
was
included
in
the
improve
act
and
we
were
able
to
get
a
71
million
dollar
grant.
Now
it's
a
three
or
four
hundred
million
dollar
project,
but
71
million
dollars
is
a
lot
of
money.
So
we
we
keep
moving
forward
and
using
some
of
the
tools
that
general
assembly
has
provided
us
through
some
different
alternative
delivery
aspects
to
help
try
to
get
these
projects
going
quickly.
D
D
I
D
100
100,
which
obviously
doesn't
come
anywhere
close
to
covering
the
loss
of
gas
with
the
with
that
particular
vehicle.
So
can
you
tell
us
what
planning
and
updating
what
is
being
done
to
prepare
us
for
this
continued
effusion?
Now
that
we've
got
f-150s
tahoes
these
larger
vehicles
they're
electric?
What
are
we
doing
to
prepare
for
that?
Loss
of
revenue.
I
Now
we've
worked
with
the
university
of
tennessee
on
their
projections
and
they're
they're,
a
little
strong
as
far
as
where
they
think
we're
going
to
start
to
see
impact
would
be
fiscal,
25,
fiscal
26.,
so
we're
keeping
an
eye
on
it
right
now,
there's
really
not
much.
We
can
do
as
far
as
revenue
I
mean
we
will
have
to
recognize
it
and
lower
our
budgets.
I
But
at
this
point
the
the
infiltration
of
electric
vehicles
has
not
been
great
in
tennessee,
but
it
will
be
as
many
people
like
gm
are
going
to
stop
producing
combustion
engines
in
2035.
So
it's
just
a
matter
of
time,
but
at
this
point
we're
keeping
a
close
eye
on
it.
There
has
been
really
no
impact
on
the
revenue
so
far,
so.
I
One
actually
one
last
thing:
your
statement
is
absolutely
accurate,
so
as
far
as
an
electric
vehicle
generating
a
hundred
dollar
vehicle
registration
fee,
if
you
take
a
look
at
the
average
vehicle
in
tennessee
that
vehicle
as
far
as
federal
and
state
taxes
would
be
somewhere
around
290
to
300
dollars
a
year.
That's
and
that
that
assumes
a
13
500
mile
usage
and
21
miles
per
gallon.
As
far
as
average
average
miles
per
gallon.
M
So
I
will
tell
you
this
we're
having
a
lot
of
that
conversation
at
the
at
the
federal
level,
with
the
usdot
and
federal
highway,
and
also
our
trade
group
is
which
is
ashto.
That
represents
all
50
dots
across
the
state.
There
are
a
couple
of
states:
oregon
is
one
of
them.
Utah
is
one
of
them.
They're,
going
through
a
pilot
program
to
maybe
go
through
a
vehicle
miles,
travel
type
system
to
keep
up
with
your
mileage,
so
it
wouldn't
matter
whether
your
electric
vehicle
or
a
gas
vehicle
it
would
be.
M
There
is
big
brother
and
people
checking
on
people
and
how
you
know
where
they're
going
and
all
that
kind
of
stuff
there's
a
huge
concern
at
one
point
sometime
in
the
near
future,
because,
as
you
know,
gm
and
other
ones
are
are
switching
to
evs
a
lot
sooner
than
we're
expecting
and
the
state
of
tennessee
is
probably
the
largest
producer
of
evs
in
the
country
with
the
manufacturers
that
we
have
in
this
state.
Right
now,
so
that's
something
that's
that
hits
home
to
us
and
joe's
right.
A
O
O
However,
as
you
all
know
better
than
I
do
once
you
have
big
snow
like
that
and
you
plow
those
ropes,
you
get
a
thousand
potholes
in
addition
to
some
of
the
projects
in
the
rural
areas
of
west
tennessee
that
really
needed
to
be
worked
on
before
all
that
happened.
So
what
are
the
plans
right
now,
for,
I
guess
immediate
potholes,
as
well
as
bringing
some
of
those
rural
areas.
O
Someone
mentioned
that
the
improve
act
and
a
lot
of
folks
still
thought
when
they
paid
that
gas
tax
it
meant
they
were
going
to
immediately
get
some
of
their
roads
fixed.
We
knew
that
wasn't
the
case,
but
they
kind
of
and
and
so
we're
still
getting
calls
about
some
of
the
rural
areas,
rural
highways
and
the
rural
part
of
state
anything
in
the
hopper
to
to
stop
working
on
some
of
those
projects
right
away.
I'll.
M
Make
this
comment
as
far
as
the
project
spread
out
and
we
talked
about
projects
in
all
95
counties.
I
know
paul
and
his
group
and
joe
we
all
go
through
and
we've
started
that
process
now,
developing
that
three-year
plan
that
we're
going
to
bring
to
you
for
approval
and
paul,
and
his
group
does
a
really
good
job
from
my
perspective,
in
trying
to
spread
that
money
out,
basically
25
between
all
the
four
regions
and
we've
got
to
improve
that.
M
We
know
what
those
962
projects
are
and
it's
the
governor's
intent
that
we
try
and
knock
out
and
build
those
962
projects
as
fast
as
we
can
and
our
only
limitation.
There
is
the
money
that
we
receive
that
joe
that
joe
has
spoken
about
earlier
today,
but
and
even
taking
a
a
a
look
between
the
dollar
spent
between
rural
and
urban.
It's
about
50
between
it
may
differ
by
one
percent,
but
it's
basically
50
50
every
year.
M
We
can
only
go
so
far
with
the
monies
that
we
spend
each
year
so
and
on
the
potholes
I
mean
we're
trying
as
soon
as
our
guys
got
through
working
around
the
clock,
pushing
all
the
snow
and
ice
off
the
road.
They
were
back
on
potholes
the
next
day.
So
it's
going
to
be
a
full
court
press
and
with
the
impact
that
we
had
in
middle
tennessee
and
west
tennessee,
which
sometimes
we
don't
see
that
impact
from
snow
and
ice.
M
But
we've
had
it
wholly
across
the
state
this
year,
there's
going
to
be
a
big
input
and,
and
the
patches
that
we
put
in
right
now
are
coal
patches,
so
they're,
not
long-term,
but
until
those
asphalt
plants
coming
up
and
when
we
have
an
area,
that's
got
a
lot
of
potholes
together.
We're
going
to
mill
that
whole
area
up
and
just
repave
that
area,
but
where
we
can
with
the
hot
mix
when
we
come
we're
going
to
try
and
patch
those
holes
best
best,
we
can
as
soon
as
we
can
with
the
right
materials
paul.
L
Well,
you
know,
representative,
the
the
the
equity
issue
is
very
much
on
our
mind,
so
we
we
look
at
where
the
people
live
in
tennessee
and
where
the
roads
are
in
tennessee
and
and
it's
very
important
that
we
balance
that
so
one
of
the
things
that
when
we
put
our
our
resurfacing
program,
we
put
our
our
three-year
program
with
the
large
projects
together
we're
trying
to
get
that
balance
across
the
state.
So
we
look
both
the
geographical
spread
across
the
state
and
the
urban
and
rural
mix,
and
so
that
it
is
very
important.
O
Follow
up,
thank
you
well,
paul.
First
of
all,
you
know
we
like
to
just
bug
you.
You
know
that's
part
of
what
we'd
like
to
do,
but
I
I
appreciate
that
I
did
want
to
ask
how
much
involvement
do
the
road
builders
get
in
the
pothole
part,
or
do
they
just
do
the
paving?
Is
there
or
do
they
help
you
all
do
all
of
that.
L
When
we
get
out
of
the
winter
weather,
we
have
our
our
traditional
highway,
letting
so,
for
instance,
interstate
resurfacing
work.
We
let
those
projects
in
december,
so
they're
already
on
the
books
and
we'll
start
as
soon
as
the
weather
breaks
state
routes.
We
let
those
in
the
the
february.
So
we've
already
awarded
a
lot
of
february
work
for
this
this
summer.
So
for
february
and
march
we'll
let
a
lot
of
contracts.
L
We
will
have
another
round
of
resurfacing
contracts
in
the
june
july
lettings,
but
then
the
third
piece
is
through
the
department
of
general
services.
We
have
a
it's
a
basically
a
commodities
contract,
we
call
our
on-call
contract
and
it
works
two
ways
we
can
do.
We've
got
some
staff
that
have
can
do
light,
paving
if
I
need
to
do
a
small
patch
somewhere,
and
then
we
also
have
the
this
in
place
contract
to
where
we
in
this.
These
are
maintenance
dollars
to
where
we
contract
directly
with
with
contractors.
L
O
H
Todd
you
chairman
vaughan,
commissioner.
I
appreciate
you
and
your
team
being
here
today
and
I
think
my
comments
generally
are
probably
for
deputy
commissioner
teggs
and
they
revolve
around
the
safety
that
was
mentioned
earlier
and
some
just
some
observations
that
I've
had
so
the
the
response.
I
guess
I'm
looking
for
here
is
there's
not
a
lot
of
specifics,
but
just
to
know
that
you're,
aware
and
and
looking
into
these
issues,
one
is
bridge
approaches,
and
I've
talked
to
some
of
your
staff
already
about
some
things.
H
So
it
just
that's
a
concern,
and-
and
I
don't
know
if
that
comes
into
design
or
specifications,
but
that's
really
what
I'm
I'm
asking
for
is
for
you
to
really
review
that
and
look
at
how-
and
I
know
that's
years
ago
that
these
were
put
in
269,
not
all
that
long
ago,
and
it's
been
pretty
rough
since
day.
One
and
so
that's
a
concern.
H
Also
work
zones
have
been
mentioned
and
that
I've
noticed
the
transition
lanes
and
ramps
in
some
of
the
work
zones.
The
paving
and
and
just
the
angles
are
are
kind
of
rough
from
from
from
the
standpoint
of
a
driver,
and
I
just
would
like
for
you
to
look
into
that
a
little
bit
and
see
if
those
are
being
done
in
the
best
manner
proper
mess
manner
that
they
can
be
so
that
people
can
properly
make
those
transitions
and
safely
get
get
through
those
zones.
H
The
other
thing
is
spot
repairs,
I
guess
I'll
call
it.
I've
noticed
on
840
specifically
and
a
few
other
places
where
some
problem
spots
have
been
supposedly
repaired,
where
they'll
go
in
and
and
excavate
or
do
something
to
a
spot.
That's
been
rough
for
some
time
breaking
up
sinking
whatever
it
might
be,
and-
and
I
I
have
questioned
whether
the
repair
was
any
better
than
the
problem
it
was
supposed
to
fix.
H
I
don't
know
if
those
are
are
primarily
done
by
tdot
crews
or
by
contract,
but
again
that
may
come
back
to
design
and
specifications
and
and
follow
up
to
make
sure
that
those
are
done
properly
and
that
the
taxpayers
are
getting
the
best
bang
for
their
buck.
I
know
all
of
these
members
on
this
committee
are
no
different
than
myself.
H
We
get
a
lot
of
comments
about
things
like
that,
as
people
go
over
these
spots
and
they
see
a
contract
or
contractor,
possibly
working
on
them
and
then
come
back
later
and
find
that
they
really
hadn't
gotten
anything
for
their
money
and
that's
a
concern.
So
that's
really
just
more
of
a
comment
not
necessarily
expecting
any
kind
of
a
response
here,
but
just
long
term.
Looking
at
exactly
how
these
specifications
are
written,
how
the
contracts
are
let
and
then
how
the
inspections
and
follow-up
might
be
done.
Sure.
L
So,
just
just
as
a
real
quick
response,
so
certainly
we
from
a
high
level
safety
standpoint.
We
have
what's
called
a
strategic
highway
safety
plan
where
we
look
at
the
data
out
there,
where
are
crashes
occurring
where
fatalities
occurring
and
what
are
the
cause,
and
we
have
action
plans
for
the
the
various
types
we
you
know
you
have.
L
You
know
and
we
work
with
the
department
of
safety
and
others
as
well,
so
we're
looking
at
the
various
different
if
it's
an
intersection
safety,
if
it's
a
medium
crossovers,
if
it's
pedestrians,
there's
a
lot
of
different
areas
that
we
focus
on
as
far
as
the
construction
defect
issue,
I
will
note
that
bridge
ends
are
an
issue
all
across
the
country
and
we've
made
decisions
in
tennessee
to
to.
We
have
a
lot
of
what
we
call
jointless
bridges.
L
L
We
know
it
is
a
particularly
difficult
facility
for
for
these
types
of
issues,
but
I
I
can
look
across
the
department
network
for,
for
instance,
concrete
bridges
poured
in
the
1950s
the
the
constituency,
the
constituents
in
the
concrete,
those
are
crappy
bridges.
The
bridge
decks
come
to
come
apart.
We
put
a
lot
of
energy
on
those,
so
there's
decisions
that
are
made
on
the
specifications
when
projects
are
built
that
sometimes
you
have
to
deal
with
for
for
many
years.
L
L
Some
of
the
issues
we're
experiencing
on
840
are
those
some
pretty
large
fields
out
there
and
those
fields,
sometimes
move,
and
so
sometimes
all
we
can
do
is
a
temporary
patch
and
we
would
have
to
you
know
literally
dig
the
whole
road
up
to
to
do
a
you
know
a
complete
repair,
so
we
we
we
we
get
those
complaints
too
trust
me.
I
get
them
personally
as
well,
and
we
know
it's
an
issue
and
we
know
the
taxpayers
of
tennessee
want
high
quality
roads.
L
A
F
You,
mr
chairman,
I
just
want
to
thank
joe
dearing
and
also
steve
borden
in
region.
One
and
two,
those
of
us
that
live
in
the
chattanooga
region
certainly
appreciate
the
response
that
your
department
gave
in
the
last
few
weeks.
It's
professional
and
I
don't
want
to
overlook
that.
But
I
want
to
thank
the
department
for
their
prompt
and.
F
L
M
A
G
Thank
you,
madam
chair.
Thank
you,
mr
commissioner.
A
few
years
ago
I
had
a
bill
that
would
incentivize
companies
to
flip
trucks,
so
they
don't
sit
idle
and
we
went
to
the
department
of
department
thought
it
was
a
good
idea.
We
didn't
pass
the
bill,
but
one
of
the
things
that
came
out
of
that
from
the
department
was
this
disc,
this
discussion
around
autonomous
trucks
and
you
all
had
a
full
presentation
and
showed
three
or
four
trucks,
all
hooked
together
and
going
across
the
country.
G
F
Real
quick
just
want
to
thank
you,
commissioner,
you're
recently
in
the
community.
Thank
you
paul
and
your
whole
staff.
It's
we
can
always
brag
on
tdot.
At
least
I
can,
and
we
get
a
little
frustrated
sometimes
but
looks
like
jefferson
pike's
on
board.
I
think
we've
got
an
event
coming
up.
I
want
to
thank
my
mayor,
mayor,
reed
and
brian
hercules.
We've
been
working
on
that
for
many
many
years.
You've
traveled
that
road.
So
I'm
excited,
but
I
want
to
thank
you
your
help
truck
drivers.
F
A
All
right
that
completes
our
questions.
I
will
just
add
my
thanks
to
those
that
have
already
been
rendered
here
and
while
we
know,
as
mr
diggs
has
so
well
articulated,
nobody
has
ever
called
you
the
first
time
to
thank
you
for
fixing
a
pothole
or
a
bridge
abutment.
I'm
quite
sure
we
only
talk
about
the
negative,
but
we
appreciate
the
response
and
we
do
appreciate
the
good
roads
in
tennessee.
A
I
think
that's
one
of
the
the
many
reasons
and
good
roads
are
huge,
they're,
a
necessity
for
us
to
continue
to
attract
businesses
and
jobs
to
tennessee.
So
thank
you
for
what
you
do
in
in
helping
us
us
to
make
that
happen.
We're
going
to
move
on
now
to
our
next
presenters.
We
are
going
to
give
our
cleaning
folks
an
opportunity
to
sanitize,
so
we
can
be
coveted
safe
and
next
we
have.
A
A
P
We
also
have
our
chief
procurement
officer
for
the
state
of
tennessee,
mr
mike
perry
and
our
cfo,
mr
ron,
plum
with
us
today.
In
the
audience
we
have
chief
of
staff,
deputy
commissioner
tom
chester
assistant
commissioners,
david
roberson
and
tammy
golden,
and
then
of
course,
our
director
of
communications,
david
roberson,
we're
all
here
to
answer.
P
P
Our
governor's
office
of
diversity,
business
enterprise
is
located
within
the
cpo
and
I'm
very
happy
to
report,
and
I'm
sure
many
of
you
know
this
from
having
read
our
year-end
report.
We
broke
another
record
for
our
go
db
efforts
and
we
beat
our
record
by
11
spending,
almost
740
million
dollars
with
diverse
business
enterprises
across
the
state
this
past
year,
so
we're
very,
very
proud
of
that
department
and
we're
doing
really
well
this
year.
I
think
we're
on
track
to
have
another
record
setting
here.
P
Hopefully,
our
state
of
tennessee
real
estate
asset
management
group
operates,
manages
and
maintains
all
of
general
government
real
estate
assets,
it's
responsible
for
securing
a
safe,
comfortable
and
secure
working
environment
for
our
staff
and
for
the
public
to
visit.
We
also
manage
general
government's
capital,
improvement
and
capital
maintenance
projects.
P
P
We
also
have
a
variety
of
smaller
internal
support
offices
that
handle
our
department's
operational
needs.
So
before
I
begin
making
comments
on
the
budget
request,
I'd
like
to
give
you
an
idea
of
where
we
stand
currently
we're
all
familiar
with
the
fact
that
the
pandemic
has
created
an
environment,
unlike
anything
that
we've
ever
seen
in
the
past.
Certainly,
our
departments
and
and
agencies
across
state
government
have
encountered
barriers,
unexpected
barriers
in
delivering
their
services
to
the
state
of
tennessee,
but
we've
also
faced
barriers
in
helping
them.
P
In
cpo,
for
example,
it's
our
staff
who's
been
working
in
the
pit
alongside
tema
to
help
meet.
The
unmet
needs
that
we
have
for
all
the
emergency
purchases
that
were
created
by
the
pandemic.
We've
been
using
state
payment
cards
or
what
we
call
p
cards
and
that's
caused
dramatic
increase
in
the
workload
in
our
pcard
office.
P
Of
course,
our
state's
owned
and
these
buildings
have
remained
open
and
throughout
the
pandemic,
and
to
keep
these
buildings
safe.
We've
been
relying
on
our
facilities,
division
with
it
within
stream,
and
we've
been
following
cleaning
and
safety
protocols
recommended
not
only
by
the
cdc,
but
also
by
our
own
department
of
health,
with
our
agencies
having
more
employees
working
in
the
field
and
from
home
and
in
other
locations
during
the
pandemic,
our
departments
have
seen
a
reduced
need
for
their
motor
vehicle
fleet,
and
so
they
are
cutting
the
size
of
this
fleet.
P
We
have
been
facilitating
turn-ins
for
them
and
trying
to
redeploy
autos
that
may
be
able
to
be
used
in
other
departments
to
meet
those
needs
and
because
vam
also
sells
federal
surplus
property.
This
has
been
a
little
interesting,
but
in
mar
see
in
march
of
2020,
the
federal
government
no
longer
allowed
inspection
of
their
federal
property,
so
they
have
had
to
be
creative
in
how
they
find
out.
Information
about
this
property
determine
whether
it's
an
appropriate
condition
for
us
to
be
able
to
provide
to
tennesseans.
P
We
also
have
not
also
seen
an
increase
in
every
area
of
our
department.
However,
in
for
our
photographic
services
and
commercial
printing,
they
have
really
seen
a
reduction
in
the
volume
of
work
that
they've
been
doing.
As
you
can
imagine
for
those
kind
of
services,
it
really
depends
on
whether
you
have
events,
whether
you
have
activities
going
on
and
because
of
the
pandemic.
There
have
been
many
fewer
events
and
fewer
opportunities
to
be
able
to
use
photographic
services
or
commercial
printing,
and
that
is
a
challenge
for
us.
P
P
Buildings
remain
open
and
our
capital
improvement
and
capital
maintenance
projects
have
continued
moving
forward
and,
as
I'm
sure
these
committee
committee
members
may
have
noticed,
we've
had
several
high
profile
state
park
projects
that
have
concluded
we've
been
doing
lots
of
ground
breakings
and
ribbon
cuttings,
which
is
the
great
thing
about
construction.
During
this
we've
been
able
to
continue
moving
forward.
P
We
not
only
have
been
doing
that
in
state
parks,
projects
which
is
wonderful,
because
so
many
of
our
citizens
have
enjoyed
the
parks
during
this
pandemic.
A
lot
of
out-of-state
people
have
also
enjoyed
our
parks,
but
we've
also
got
some
right
here
in
nashville,
the
john
sevira
building
renovated
it's
beautiful.
If
you
haven't
seen
it,
I
encourage
you
to
do
that.
P
P
Also,
our
agencies
have
notified
us
during
this
period
that
they
are
ready
to
reduce
their
footprint
being
in
a
work
from
home,
environment
or
being
out
on
the
site
has
helped
them
understand
that
they
don't
need
as
much
real
estate
as
they
thought
they
did
so
they've
all
kind
of
come
to
us
and
said
you
know
we're
ready
to
reduce
our
footprint.
We're
really
ready
to
look
at
what
we
occupy
in
state
offices.
P
P
We
understand
the
need
to
keep
all
of
our
interactions
as
safe
as
possible,
so
we've
allowed
for
after
hours
turn
into
vehicles
that
are
no
longer
needed.
We've
enhanced
our
procedures
for
cleaning
and
sanitizing
our
vehicles
and
new
safety
protocols
for
those
who
do
visit
our
offices
on
centennial
boulevard
to
pick
up
the
surplus
property
that
they
may
want.
P
Our
document
solutions.
Division
is
responsible
for
processing
state
mail,
as
I
mentioned
earlier,
but
as
every
good
crisis
allows,
it
provides
an
opportunity
for
innovation,
and
this
is
one
of
those
cases.
We
are
no
longer
delivering
mail
building
to
building
like
we
did
in
the
past,
there's
just
too
much
potential
for
exposure
to
coven.
P
So
we've
been
doing
a
drive-by
drop-off
mail
service.
They
just
call-
and
let
us
know
that
they're
ready
for
their
mail
and
we
take
it
out
and
deliver
it
to
their
car.
We've
also
had
departments
and
agencies
who
have
asked
us
to
scan
their
mail
and
send
it
to
them
digitally
so.
We've
had
many
departments
and
agencies
doing
that,
and
then
we're
also
investigating
smart
lockers,
which
are
just
lockers.
P
That
would
be
at
the
base
of
the
building
in
the
lobby
area
and
we
would
take
the
mail
deliver
it
there
and
a
message
would
be
sent
to
them
that
their
mail
is
there
and
they
can
pick
that
up.
So
this
is
going
to
be
a
permanent
change,
we're
no
longer
going
to
be
delivering
mail
building
to
building
like
we
used
to
it
was
very
labor
intensive,
and
so
this
is
a
much
better
way
for
us
to
get
our
mail
to
our
sister
agencies
and
departments.
P
This
budget
also
contains
the
authorization
and
funding
for
374
positions
and
general
services,
as
I
mentioned
mentioned
earlier,
generates
revenue
from
billing
and
charging
other
departments
and
agencies
for
the
services
that
we
provide.
At
present,
we
are
not
proposing
any
additional
in
fee
increase
in
fees
or
charges
for
those
services,
so
we
have
a
state-funded
base
budget
reduction,
proposing
for
a
total
of
341
thousand.
We
only
have
one
program
for
what
we
can
do
that
for
and
that
is
going
to
be
in
stream.
P
H
A
P
P
So,
let's
get
to
our
proposed
capital
outlay
program.
We
have
94
projects,
totaling
495
million
dollars.
Those
are
properties
that
are
directly
managed
by
general
services
and
funded
through
the
facilities
revolving
fund
and
those
actually
within
the
jurisdiction
of
different
agencies
and
departments
of
these
94
projects.
34
are
capital
improvements,
totaling,
212
million
and
60
are
for
capital
maintenance,
totaling,
283
million.
P
P
P
Some
members
may
have
heard
me
tell
the
story
before
about
being
asked
about
deferred
maintenance
and
the
value
of
that
at
our
first
budget
hearing.
We
knew
the
value
of
our
deferred
maintenance
for
our
facility
revolving
fund.
We
did
not
know
that
for
the
remaining
balance
of
the
general
government
real
estate,
but
we
do
know
that
last
year,
when
I
was
here,
we
talked
about
the
fact
that
we
were
going
to
be
doing
a
facility
conditions
assessment
for
all
the
properties
across
the
general
government
portfolio.
P
We
have
completed
that
and
it
was
on
all
30
million
square
feet,
and
I
warned
you
then,
that
this
number
would
start
with
the
letter
b
and
it
does
the
number
for
our
deferred.
Maintenance
is
2.2
billion
dollars
for
the
30
million
square
feet,
keep
in
mind
that
that
does
not
include
higher
education
facilities,
but
that
is
exactly
why
we're
asking
for
an
additional
10
million
dollars
in
our
capital
maintenance
funding.
P
It
is
a
massive
debt.
You
got
to
pay
it
one
way
or
the
other.
You
either
run
your
buildings
to
the
end
of
useful
life
and
build
new
buildings,
or
you
decide
to
invest
in
the
buildings
that
you
have
and
that's
again,
why
we're
asking
for
this
additional
10
million
dollars
also
just
want
to
point
out
that
this
request
that
we're
making
today
also
helps
us
address
the
state's
deferred
maintenance
state's
deferred
maintenance
needs
in
other
ways,
for
example,
in
the
war
memorial
renovation,
that
building
is
almost
100
years
old.
P
We
had
know
that
we
have
sitting
over
there
right
now,
just
in
war
memorial,
74
million
dollars
worth
of
deferred
maintenance.
If
we
can
renovate
this
building
as
we
have
planned
and
that's
going
to
take
74
million
right
off
the
top
of
our
2.2
billion
dollars,
we
will
also
be
looking
at
our
as
we
do.
Our
project
tetris
eliminating
some
buildings
that
we
no
longer
need.
P
Those
buildings
have
big
deferred
maintenance
values
to
them
as
well,
and
when
those
buildings
are
removed
as
they,
since
they
are
not
part
of
our
long-term
master
plan
that
will
reduce
that
2.2
billion
as
well.
So
that
will
conclude
my
remarks
and
we'll
be
happy
to
answer
any
questions
that
you
have.
Thank
you.
B
Thank
you,
madam
chair.
Thank
you,
commissioner,
for
you
and
your
team
being
here
today.
Speaking
of
the
master
plan,
is
that
totally
completed
by
the
con
contractor?
I
heard
you
speak
earlier
about
different
phases
and
then
the
capital
projects
that
are
proposed
on
that.
How
does
that
fit
into
your
maintenance?
I
know
you
just
bro
briefly
spoke
on
that
and
then
second
part
of
the
question
is
just
some
of
the
numbers:
3
000
acres
of
excess
properties,
disk
shy
of
200
buildings.
B
P
The
master
plan
for
everyone's
information,
we
finished
phase
one
phase,
one
focused
on
what
we
call
capital
proper,
which
is
this
downtown
area,
and
it's
that's
really
been
our
focus
this
this
first
year,
midstream
of
the
master
plan
covet
hit.
We
had
to
kind
of
regroup
and
figure
out
what
was
next
and
what
that
really
meant
and
how
it
was
going
to
impact
our
master
plan
specifically
office
space
and
how
that
was
going
to
be
used.
P
We
have
legislative
members
on
our
master
plan
executive
committee,
leader,
lamberth
and
chairman
watson,
are
on
our
executive
committee,
so
we'd
like
to
start
the
process
back
up,
but
we're
also
trying
to
be
sensitive.
The
fact
that
you
guys
are
in
a
very
busy
part
of
your
year
so
we'll
be
regrouping
with
them
and
starting
on
that
broader
part
of
middle
tennessee
here
fairly
soon,
but
that's
the
how
the
master
plan
works
out
and
your
second
question
was
regarding
the
investments
that
we're
making
and
how
that
addresses,
deferred
maintenance.
P
Still,
I
think
we
all
know
if
you
have
a
2.2
billion
dollar
deficit
and
debt
on
your
deferred
maintenance,
an
extra
10
million
dollars,
it's
going
to
take
a
long
time
to
ever
catch
up.
So
that's
why
we're
proposing
that
we
do
some
renovations
war.
Memorials,
I
said:
had:
has
74
million
dollars
worth
of
deferred
maintenance
in
it?
So
that's
going
to
come
out
once
we
do
the
renovation
we
do.
We
have
money
this
year
for
the
design
and
the
construction
in
the
budget.
P
We
also
have
a
couple
of
other
buildings
that
would
be
part
of
project
tetris,
which
is
our
implementation
plan
for
the
master
plan,
and
it
calls
for
disposing
of
a
couple
of
properties
that
are
not
core
to
what
we
do
in
state
government.
When
we
could
talk
about
one
of
those
buildings.
I
think
you
all
know.
Citizens
applause
has
been
sitting
there
empty
for
over
two
years
now,
and
it
costs
us
about
a
million
and
a
half
to
two
million
dollars
a
year
for
that
building
to
sit
there.
So
that
would
be.
P
That
is
a
building
that
the
master
plan
has
proposed
disposing
of.
So
that
would
also
reduce
some
of
our
our
deferred
maintenance,
and
I
think
the
last
thing
you
asked
about
was
properties,
and
that
really
goes
into
another
project,
we're
working
on
called
steps
and
that's
the
state
of
tennessee.
What's
the
eps.
P
And
if
you
don't
have
a
long-range
plan
and
that
property's
been
sitting
there
and
not
been
doing
anything
for
a
while.
It's
it's
time
to
get
surplus
and
put
it
back
into
the
hands
of
the
private
sector,
or
perhaps
another
governmental
entity,
a
local
government
and
get
it
into
higher
and
better
use.
So
we've
been
working
all
year
on
that
particular
project
and
really
excited
to
see
it.
Roll
out.
K
P
P
So
this
is
additional
money
to
continue
the
design,
work
and
the
into
address
infrastructure
there.
It
will
be
a
phased
project,
but
if
the
goal
is
to
move
several
departments
coming
together
department
of
corrections,
it
would
be
the
department
of
homeland
safety
and
security
safety
and
homeland
security.
I
should
say-
and
then
of
course
toleda,
which
is
the
tennessee.
P
He
knows
the
acronyms
better
than
I
do
so,
we'll
be
moving
all
of
those
over
to
property
at
cockrell
bend
that
is
located
adjacent
to
river
riverbend,
maximum
security,
prison
and
the
reason
we're
doing
this
is
because
all
of
these
facilities
that
these
organizations
were
operating
out
of
are
are
well
frankly
beyond
their
useful
life,
and
they
all
need
the
same
kinds
of
things.
They
all
need
a
driving
track.
They
all
need
shoot
houses
to
practice
in.
They
all
need
training,
academy
kind
of
things.
K
G
Yes,
sir,
the
29.5
million
is
actually
towards
the
firing
range,
so
that
was
the
first
facility
that
the
agencies
have
asked
for
just
to
bring
all
those
together
and
then
also
some
of
the
buildings
that
were
on
the
old
tennessee
state
prison
site,
so
we're
going
to
bring
them
out
there
and
effectively
build
a
warehouse
for
them.
The
other
23
million
dollars
that
we've
asked
for
this
year
is
for
the
design
of
the
entire
campus
plus
the
start
of
all
of
that
infrastructure.
K
P
F
Thank
you,
madam
chair,
and
I
think
you
answered
my
question
about
the
office
space
reduction
plan
when
you
discussed
the
tetris
with
with
representative
ogles
earlier
so
I'll,
not
go
down
that
road,
but
I
realize
that
all
95
counties
must
have
a
department
of
human
services
presence
in
them,
and
that
is
a
substantial
cost.
Can
can
you
give
us
right
now
or
give
us
later
some
somehow
to
break
down
buildings
we
own
versus
leases?
We
have
I'm
guessing
that
90
plus
of
those
counties
are
a
lease
type
situation
off
the
top
of
your
head.
P
P
The
one
thing
I
do
think
that
I
probably
should
have
pointed
out
regarding
project
tetris
is
it
is
an
aggressive
plan,
but
our
objective
is
to
reduce
about
600
little
over
600
000
square
feet
of
own
property
and
the
beauty
of
the
plan
is
we're
going
to
be
getting
out
of
almost
300
000
square
feet
of
leases
across
the
state,
so
but
they'll
always
be
needs
for
us
to
do
leasing
in
some
of
these
smaller
counties
versus
owning
properties.
It
just
makes
more
sense
for
the
tennessee
state
of
tennessee.
B
Thank
you,
madam
chairman,
thank
you,
commissioner,
for
being
here
and
your
staff.
In
this
year,
there's
a
two
million
dollar
recurring:
pardon
your
budget
to
increase
the
facilities
revolving
funds,
specifically
rent
rates
in
davidson
county
in
recent
years,
multiple
rents
increases
have
gone
up
and
it
looks
like
from
as
of
this
summer,
there's
about
95
million
dollars
in
that
fund.
What
is
this
needed
for?
Why
the
increase
so.
P
I'll
start
the
answer,
and
then
I'll
probably
turn
it
over
to
cfo
or
deputy
commissioner
john
hall
to
finish
the
answer.
So
what
we
do
is
we
review
the
rental
rates
wherever
we're
part,
have
properties
that
are
located
within
the
facility
revolving
fund
just
to
make
sure,
because
the
objective
is
to
charge
a
market
rate,
and
so
we
have
to
look
at
that
every
year.
P
You
think
that
davidson
county
might
be
slowing
down
just
a
little
bit
because
of
the
pandemic,
and-
and
there
is
a
lot
of
office
space
coming
online
in
davidson
county,
but
a
lot
of
it's
already
spoken
for
when
they
quote
the
number
of
the
amount
of
office
space
and
the
square
footage
that's
coming
online.
A
great
deal
of
that
is
amazon,
which
is
already
spoken
for,
so
the
lease
rates
continue
to
go
up.
We
just
want
to
make
sure
that
we're
keeping
and
we're
in
line
with
whatever
the
lease
rates
are
in
whatever
vicinity.
G
Ron
plum
the
amount
of
money
that
we've
requested
for
the
recurring
dollars
in
the
first
budget,
we're
just
going
to
keep
up
with
the
increase
in
the
davidson
county
leases
that
we've
seen
and
that's
not
really
the
driving
matter
behind
the
large
95
million
dollar
unobligated
balance
in
the
first
preserve.
But
we
that's
another
larger
topic.
But
but
this
is
the
2
million
is,
is
right,
is
targeted
for
the
just
keeping
up
with
the
lease
rates
locally
in
this
county.
P
A
J
P
J
J
Okay,
do
you
do
this
is
a
question.
I
ask
other
departments
when
they
come
here
and
talk
about
capital
projects
and
particularly
higher
education.
We've
seen
the
cost
of
construction
go
up
a
considerable
considerable
amount
this
year,
20
about
22
percent,
even
in
rural
areas
where
I
live,
and
in
nashville
it's
gotten
worse,
particularly
with
the
cost
of
steel,
concrete
wood
products.
J
Does
your
numbers
and
the
numbers
you
suggest
through
the
state
building
commission,
take
into
consideration
any
of
these
increases,
or
do
we
expect
these
departments
to
come
back
after
you've?
Let
the
designs
out
and
gotten
contracts
or
estimates
back
from
those
applicable
contractors
that
that
you're
relatively
comfortable
with
the
costs
that
you've
associated
with
them.
P
Yeah,
we
absolutely
take
that
into
consideration.
In
fact,
we
have
a
percentage
every
year
that
we
apply
to
an
estimate
and
we
increase
that
estimate
automatically
by
that
percentage
to
make
sure
that
we're
covering
those
potential
increases
and
just
to
tell
you
the
last-
I
guess
for
like
how
long
john
last
six
months
or
so
we've
hit
our
bid
target
85
of
the
time.
J
P
Good
question,
so
we've
obviously
done
a
lot
of
talking
with
consultants,
our
consultant,
who
did
the
master
plan.
We've
also
talked
with.
We
even
visited
our
office
furniture
manufacturer
to
ask
them.
What
are
you
designing
for
the
office
of
the
future?
What
does
that?
Look
like
and
we've
also
surveyed
different
staff
members?
O
Thank
you,
madam
chair,
and
I'd
be
brief.
Thank
you,
commissioner.
Thank
you
all
for
being
here.
You
mentioned
earlier
in
your
presentation
about
relaxing
procurement
projects,
and
this
may
be
something
you
need
to
get
me.
Can
you
talk
about
that
now,
as
that
would
be
something
you
just
need
to
get
the
chairman
to
give
to
us?
Well,.
P
F
Yes,
representative
shaw:
what
the
commission
was
referring
to
is
in
order
to
maintain
competitive
bidding
in
an
emergency
situation
that
we've
been
in.
For
the
last
year,
we
were
able
to
craft
some
expedited
procurement
policies
that
allowed
us
to
still
do
competitive,
sealed
bids,
but
do
it
on
a
rapid
pace.
Q
A
A
A
A
Q
Before
I
get
into
our
department
operations,
let
me
just
lay
out
a
few
basic
budget
facts
and
answer
the
questions
that
you've
laid
out
to
departments.
We
have
no
supplemental
funding
requests.
There
are
no
reductions
made
to
the
base
budget,
no
proposed
capital
operating
improvements,
no
anticipated
loss
or
increase
of
one-time
funding.
Q
We
did
not
receive,
we
do
not
receive
any
federal
funding
regarding
changes
in
services
or
programs
offered.
I
would
note
the
following:
in
recent
years,
we
created
and
continued
to
develop
our
large
bank
regulatory
group
that
supervises
our
three
largest
banks
that
together
hold
the
majority
of
assets
in
our
banking
system
that
includes
any
bank
over
10
billion
in
assets
and
we're
in
the
process
of
shifting
current
resources
to
establish
an
I.t
regulatory
group
to
enhance
our
ability
to
assess
the
I.t
operations
of
financial
institutions
at
the
governor's
direction.
Q
Q
The
most
important
thing
we
can
do
at
this
time
and
the
most
cost
effective,
is
to
do
everything
we
can
to
retain
experienced
staff.
Specific
focal
points
will
be
bank
examiners,
trust
supervision
and
creating
an
I.t
regulatory
group.
Now
let
me
tell
you
what
we
do
with
the
budget
that
you
authorize
for
us.
Q
For
years
we
had
challenges
in
right-sizing,
our
examiner
workforce
in
the
non-deposit
area,
where
we
regulate
non-bank,
mortgage
companies,
finance
companies
and
hundreds
of
small
dollar
lenders,
for
instance,
during
the
great
economic
downturn
of
10
years
ago,
we
had
tremendous
volatility
in
the
number
of
licensees,
such
as
in
the
mortgage
industry
and
licensees
left.
The
business
in
large
numbers
in
a
short
period
of
time,
which
produced
great
challenges
in
managing
our
examiner
workforce,
which
in
part
was
funded
by
exam
fees.
Q
Q
Q
Let
me
wind
up
by
discussing
the
greatest
challenge
in
opportunity
for
the
department,
which
is
the
unprecedented
growth
in
the
banking
and
trust
industries
and
the
impact
on
our
mission
with
regard
to
the
condition
of
banks
and
credit
unions.
The
great
majority
of
tennessee
state
chartered
institutions
are
healthy,
serving
the
economic
needs
of
the
state
thanks
to
prudent
management
throughout
the
state.
Q
The
tennessee
banking
system
remains
stable,
supporting
the
economic
needs
of
citizens
and
communities
despite
a
global
pandemic
and
a
temporary
economic
shutdown,
and
this
is
what
I
think
our
challenge
is
on
one
hand,
we
have
unprecedented
growth
in
the
banking
system,
that,
in
a
normal
environment,
can
change,
challenge
our
capacity
to
appropriately
assess
and
supervise
these
industries.
But
when
you
overlay
a
covenant
environment
on
top
of
it,
then
our
work
can
become
more
complicated.
Q
Our
initial
response
to
coven
19
was
to
pause
our
exams
for
a
brief
time
to
give
institutions
the
opportunity
to
focus
on
supporting
their
communities
and
that's
exactly
what
they
did.
Banks
pushed
out
nearly
nine
billion
dollars
in
paycheck
protection
program
loans
last
year
and
a
second
wave
of
relief
is
underway.
Today,
institutions
altered
their
operations
as
well
to
continue
providing
services
in
the
safest
way
possible
for
citizens.
Q
Q
Q
Those
exams
may
last,
on
average,
about
two
to
three
weeks,
depending
on
size
and
issues
so,
depending
on
the
large
bank
review
topics,
we're
pulling
from
the
same
examiner
pool
to
handle
large
bank
reviews,
as
well
as
community
bank
exams,
which
can
present
a
challenge
to
our
resources.
As
we
seek
to
enhance
our
regulatory
capabilities
for
all
banks,
from
the
largest
to
the
smallest
and
because
of
the
efficiencies
we've
been
able
to
achieve,
we've
been
able
to
reduce
our
annual
fees
on
the
great
majority
of
institutions
that
we
supervise.
Q
The
growth
in
the
banking
system
is
providing
the
needed
revenue
base
to
support
an
appropriate
level
of
regulation
which
facilitates
financial
institutions
serving
the
economic
needs
of
the
state.
Our
regulation
approach
is
tailored
to
facilitate
economic
development,
not
hold
it
back
and
we've
eliminated
seven
non-bank
department
positions.
A
H
Thank
you,
madam
chair.
I
appreciate
you
being
here
and-
and
I
always
learn
a
lot
from
presentations
like
this,
and
because
this
isn't
certainly
an
area
that
I
know
very
little
about,
but
some
things
that
you
that
I've
understood
involving
off-site
examinations
that
you
have
you
plan
to
maybe
permanently
conduct
off-site
exams
and
then
maybe
75
of
all
your
exams
will
be
off-site.
So
I'm
wondering
this
year.
How
was
able
the
agency
able
to
do
this?
How
was
it
funded
was
it?
Q
We
had
a
four-year
goal
to
to
really
increase
that
over
four
years,
but
we
went
from
you
know,
roughly
let's
say
40
to
50,
maybe
off-site
work
to
a
hundred
percent
in
a
few
weeks
rather
than
four
years,
and
so
I
can't
say
enough
about
the
work
that
our
folks
have
done
in
being
able
to
go
to
offsite
to
work
with
our
federal
counterparts
on
the
depository
side,
because
the
fdic
federal
reserve
ncua
for
credit
unions.
They
were
all
doing
the
same
thing
and
we
have
some
joint
efforts
with
those
agencies.
Q
So
we
had
to
work
together.
We
work
with
sts
from
internal
I.t
standpoint
to
be
able
to
achieve
that
as
far
as
what
the
future
looks
like
so
we're
100
off
site
today
in
an
ideal
world,
I
don't
know
what
that
percentage
would
be,
but
I
do
believe
if
we
have
the
capacity
in
a
whatever
the
new
normal
looks
like
that
we
should
be
able
to.
We
do
need
to
do
some
of
that
work
on
site.
Q
Getting
our
examiner
team
working
from
home
has
been
a
tremendous
cost
saver
four
hundred
thousand
dollars
just
just
for
the
the
typical
travel
cost,
and
then
we
also
a
few
years
ago
established
a
leased
car
program
with
the
department
of
general
services
that
was
saving
us
thousands
of
dollars
on
an
annual
basis.
But
of
course
it
wasn't
in
this
kind
of
environment.
So
last
summer
we
turned
those
lease
cars
back
in
that's
another.
I
believe
400
000
or
so
savings
we're
also
going
to
be
looking
at
reducing
our
space
at
the
tennessee
tower.
Q
We've
already
put
the
appropriate
folks
on
notice
that
we
can
certainly
downsize
that
space
that
will
save
us
thousands
of
dollars
more.
So,
of
course,
the
reduction
in
the
number
of
positions
11
over
the
last
year
is
a
significant
savings
as
well.
So
probably
a
little
bit
over
a
million
dollars
on
an
annual
basis
for
us
is
a
significant
number
for
sure.
B
Thank
you,
madam
chairman.
Thank
you,
commissioner,
for
being
here
and
hello
to
your
staff.
You
all
do
such
a
fantastic
job
for
us
in
the
state
and
you're
one
of
those
departments
that,
when
you
do
a
good
job,
everything
runs
so
well.
Nobody
really
notices
that
you're
out
there
working
like
us
legislators,
but
you
we
know
that
you're
out
there
working
and
thank
you
for
all
that
you
do.
B
Q
With
respect
to
that
money,
we
have
a
plan,
a
salary
plan
that's
been
approved
because
of
coven
19.
We
delayed
implementation
of
that
for
a
few
months,
we're
now
in
the
process
of
implementing
it.
It's
a
little
bit
more
narrow
than
what
we
originally
projected
it
was
going
to
be.
One
of
the
things
we're
trying
to
do
is
determine
how
is
covenanting
affecting
the
industry.
How
is
that
going
to
affect
our
regulation
of
the
industry?
So
we
have
a
more
narrow
use
of
that
money.
Q
Q
Q
That's
too
high.
We've
got
to
do
better.
We
need
to
do
some
things
that
some
additional
things
with
respect
to
salary.
I
think
for
bank
examiners,
so
that's
going
to
be
in
an
upcoming
effort
for
us,
but
we
are
pushing
forward
some
salary
improvements
for
targeted
middle
and
senior
management
they're,
taking
on
additional
responsibilities.
Q
You
know
our
department
doesn't
look
that
much
different
than
five
years
ago
or
so
we
have
created
a
large
bank
group
to
take
to
take
on
the
regulation
of
our
three
largest
banks.
They
do
hold
the
majority
of
assets
in
the
system,
so
there's
a
lot
of
concentration
of
assets
in
three
institutions.
So
we've
created
a
large
bank
group.
We
are
creating
an
I.t
regulatory
group
as
well.
Q
You
know
there
was
a
nationwide
cyber
attack
that
you
know
folks
have
heard
about
reported
in
the
news
towards
end
of
last
year,
so
we're
enhancing
our
we've,
been
working
on
this
for
three
years:
we're
enhancing
our
activity
in
the
cyber
world
in
being
able
to
partner
with
institutions
to
make
sure
that
consumers
are
safe.
That
institutions
are
safe,
that
banking
is
safe
when
it's
online,
so
in
copen
19,
there's
more
online
activity,
as
you
can
imagine.
Q
So
this
is
one
of
the
ways
that
we
want
to
address
that
you
know
the
governor
has
a
tremendous
plan
with
respect
to
broadband
and
it's
coming
at
just
the
right
time
for
us,
because
what
we
see
out
of
cobin
19
is
an
increase
in
online
banking.
So,
if,
if
we
can
have
that
broadband
push
throughout
every
community
in
tennessee,
we
want
to
partner
with
institutions
to
help
that
happen
to
make
sure
that
rural
citizens
and
urban
citizens
everyone
has
that
opportunity
to
take
advantage
of
online
activity,
particularly
in
the
banking
world.
A
Q
Now,
previous
to
that,
we
had
applications
there.
There
are
constant
applications
that
affect
the
banking
system.
All
of
that
is
captured
now
in
this
repository
of
information,
in
a
way
that
we
can
track
applications,
and
we
can
understand
what
institutions
are
doing
from
an
activity
standpoint.
So
now
is
examinations
and
we're
well
on
our
way
there.
Q
Q
Q
B
G
F
So
when
does
full
implementation?
What
are
you
expecting
that
date
to
be
full
implementation
of
the
system?
I
guess
and
with
that
upon
full
implementation.
Do
you
think
the
four
four
and
a
half
million
I
mean?
Are
you
going
to
be
able
to
implement
within
that
those
those
guard
rails?
I
guess
that's
the
question.
Q
Now
here's
one
thing
that
we're
doing
is
trying
to
determine
if
there
are
some
functionality
that
maybe
we
don't
need
that
could
save
some
money
and
actually
up
the
implementation
date
to
move
it
to
move
it
forward.
So
we're
studying
that
right
now
to
see
if
we
can
bring
this
online
quicker
and
less
expensive,
but
right
now
it'd
be
2023,
probably
the
spring
okay.
A
Thank
you,
commissioner,
and
we
appreciate
you
being
here
and
again,
it's
been
a
trying
year
for
everyone,
but
I
thank
you
guys
for
stepping
up
and
figuring
out
a
way
to
do
your
job
with
the
institutions
and
and
I'm
really
am
excited
and
continue
to
be
excited
about
the
growth
and
trust
money
in
the
state.
That's
great
business.
Q
A
R
R
R
I'll
begin
by
taking
a
moment
to
address
the
impact
of
coven
19
on
our
operations
and
customers
cover
19
has
had
a
significant
impact
on
the
way
state
employees
serve
citizens
and
perform
their
work.
During
the
pandemic.
We
supported
the
expansion
of
work
from
home
from
less
than
22
percent
to
up
to
57
percent
of
the
total
state's
workforce
in
may
department
of
human
resources,
transitioned
100
of
our
department's
140
full-time
employees
to
a
work
from
home
setting.
R
R
We
also
played
a
key
role
in
facilitating
agile,
creative
responses
to
meet
the
needs
of
agencies
and
employees
to
respond
to
the
pandemic.
We
supported
the
department
of
health
to
recruit
and
temporarily
assign
more
than
250
employees
from
17
different
state
agencies
to
provide
covet
19
contact
tracing
support.
R
R
R
At
the
beginning
of
fiscal
year,
21
we
reduced
four
vacant
positions,
two
in
our
agency
resource
center
and
two
in
the
office
of
general
counsel.
As
part
of
the
20
million
vacancy
reduction
plan,
the
four
vacant
positions
had
a
cost
savings
of
two
hundred
and
twenty
nine
thousand
five
hundred
dollars.
In
addition,
as
we
transition
key
human
resources
and
talent
management
services
to
a
virtual
platform,
we
were
able
to
realize
savings
of
three
hundred:
seventy
five
thousand
four
hundred
dollars
in
learning
and
leadership,
development
opportunities
for
fiscal
year
22.
R
We
have
proposed
a
reduction
plan
that
include
375
400
dollars
in
cost
savings
as
a
result
of
transitioning
learning
and
leadership
development
events
to
a
virtual
setting
versus
the
traditional
in-person
setting
at
first.
This
transition
was
a
result
of
the
pandemic.
However,
the
positive
feedback
we
received
from
agencies
and
participants
support
this
as
a
viable,
more
efficient
delivery
platform
option
going
forward.
R
R
R
We
have
requested
related
department
of
human
resources,
workforce
capacity
needs
and
improvements,
workplace
harassment,
investigations,
we're
requesting
a
hundred
and
fifteen
thousand
four
hundred
dollars
for
one
position
to
provide
workplace
harassment,
investigations,
department
of
human
resources,
consistent
and
neutral
process
for
handling
workplace
discrimination
and
harassment.
Investigations
has
increased
the
demand
for
the
department
to
partner
on
investigation
claims.
R
R
Next
workplace
diversity
and
equity.
We're
requesting
265
800
for
two
positions
to
sustain
workforce,
diversity
and
equity
and
enrich
the
employee
experience
for
all
do
hr
is
the
lead
in
the
statewide
diversity
and
equity
efforts
by
leveraging
workforce
data
and
providing
a
comprehensive
approach
to
diversity
and
equity.
R
This
will
also
support
the
model
employer
program
that
assists
agencies
to
ensure
certain
employment
practices
in
regard
to
individuals
with
disabilities
that
are
part
of
state
government
recruiting
services,
we're
requesting
148
200
for
one
position
to
meet
the
statewide
demand
for
sourcing
and
recruiting
top
talent
requests
for
recruiting
services
have
increased
significantly
year
over
year.
The
division
is
increasing
its
strategic
work
to
reduce
turnover
and
source
top
talent,
such
as
sourcing
hard
to
fill,
addressing
classifications,
having
the
highest
turnover
and
providing
statewide
internship
programs.
R
R
In
fact,
this
year's
forbes
rank
the
forbes
magazine,
ranked
the
state
10th
best
in
tennessee,
and
there
are
20
20
america's
best
employers
by
state
report.
Our
fiscal
year,
22
budget
will
support
us
on
our
journey
to
be
the
best
again.
Thank
you
for
this
opportunity
to
share
the
department
of
human
resources
fiscal
year,
22
budget
requests.
This
concludes
my
prepared
remarks
and
I
welcome
any
questions
you
may
have.
F
Thank
you,
madam
chair.
I
know
that
is
that
the
department
has
requested
hundred
forty
eight
thousand
two
hundred
dollars
recurring
for
a
new
position
and
an
external
job
board
candidate
database
to
help
with
the
state's
recruiting
efforts
of
individuals
to
be
employees.
How
will
that
external
job
candidate
board
database
function.
R
E
K
R
Yes,
we
had
two
hundred
and
sixty
five
thousand
eight
hundred
dollars
for
two
positions
for
workplace
diversity
and
equity,
and
this
will,
as
we
lead,
that
initiative
for
statewide,
but
also
supports
the
model
employer,
choice
and
again.
This
is
a
program
that
ensure
that
certain
employment
practices
in
regards
to
individuals
with
disabilities
that
we
support
that.
K
Those
two
positions
totally
for
the
265
000,
yes,
sir,
so
you're
going
to
be
paying
to
two
people
that
amount
of
salary.
No
that's
combined.
Two
people
combined
are
going
to
split
that
salary.
Yes,
sir,
to
teach
people
what
I'm
sorry,
this
diversity
and
equity
and
inclusion
is
not
something
that
we
need
to
be
spending
state
dollars
on
we're
programming,
people
to
believe
something
that
it's
propaganda
and
I'm
totally
against
that.
We
do
not
need
to
be
teaching
people
how
to
treat
others.
K
K
F
And
I,
the
timing
of
this
was
interesting,
but
we
just
received
a
letter
via
email.
I
think
the
entire
committee
probably
received
this
on
the
voluntary
separation
program
that
we
had
so
to
summarize,
the
email
at
least
my
understanding
of
it.
We
invested
about
50
million
dollars
last
year,
and
that
has
not
been
utilized
to
this
point
and
it
read
as
if
those
funds
might
be
shifted
to
a
different
type
of
program.
F
Our
hopes
last
year
was
that
we
would
invest
about
50
million
dollars
for
employees
that
chose
to
voluntarily
separate
from
the
state
of
tennessee.
We
would
be
able
to
utilize
that
money
for
additional
training
and
for
opportunities
for
them
to
move
on
to
better
and
brighter
futures
and
might
even
save
as
much
as
65
million
for
the
state
of
tennessee
in
that
swap.
So
where
is
that
program
now?
And
if
you
could
flesh
out
a
bit
the
email
that
we
just
received,
indicating
that
the
moneys
have
not
been
utilized
thus
far.
R
R
F
I
think,
mr
chairman,
commissioner,
thank
you.
I
guess
I'm
just
concerned
because
you
know
that's
a
significant
investment
on
the
part
of
this
body
in
the
state
of
tennessee.
It
was
done
during
a
time
in
which,
obviously,
we
had
a
very
tight
budget.
We
were
cutting
significantly
across
the
board,
but
the
purpose
of
that
plan
was
not
just
to
cut
the
budget.
It
was
an
opportunity
for
our
employees
that
chose
to
take
advantage
of
that,
and
it
would
also
save
the
state
a
significant
amount
of
funds.
F
I'm
I'm
concerned,
and
I
definitely
would
like
to
hear
more
about
how
those
funds
are
going
to
be
utilized
and
if
those
funds
are
not
going
to
be
utilized
for
vsps,
then
my
personal
opinion
would
be
is
that
that
needs
to
go
back
into
the
general
fund.
It
needs
to
go
back
to
the
taxpayers
of
tennessee.
It
needs
to
be
utilized
in
other
programs
if
there
are
other
programs
that
are
very
valuable.
I
trust
your
wisdom
and
experience
on
this.
F
R
R
So
that's
what
the
50
million
other
opportunities
when
we
talk
about
efficiency
is
that,
if
employed
decides
to
voluntarily
leave
state
government
we're
looking
to
reduce
that
position
which
will
give
us
a
savings
as
you
described.
It
may
also
be
an
opportunity
where
we
can
repurpose
a
position
to
a
lower
level
position
which,
to
your
point,
is
another
savings.
We
just
want
to
be
more
efficient
and
effective
in
how
we
operate.
But
to
your
point,
the
50
million
dollars
that
was
set
aside
will
is
to
be
used
for
the
voluntary
separation
program.
A
B
B
R
A
Commissioner
williams,
thank
you
and
your
team
for
being
here
today
and
for
providing
this
information
now
committee.
We
are
back
in
session
and
you'll
be
happy
to
know
that
completes
our
calendar
for
the
day.
Thank
you
very
much
for
you're
very
attentive
and
participatory
work
today,
and
we
will,
without
any
further
business,
seeing
none.