HB 291 - SB 1077 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly March 13, 2025 Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564 HB 291 - SB 1077 SUMMARY OF BILL: Requires the Institute of American Civics (IAC) at the University of Tennessee, Knoxville (UT), to develop materials and curricula for one course in American government or American history that provides a comprehensive overview of particular major events and turning points of American history and government, and to distribute the materials and curricula to each public institution of higher education (public institution) in this state. Requires each public intuition that offers a baccalaureate degree to include the course beginning no later than the 2025-2026 academic year. Requires each student of a public institution to complete at least three semester hours of such a course in order to obtain a baccalaureate degree. Provides exceptions. Requires each governing board of a public institution to ensure that the requirements of this section are incorporated into the degree requirements of all baccalaureate degree programs offered by the public institutions in a manner that does not: (1) add to the total amount of credit hours for any degree; or (2) conflict with any school accreditation process. Requires each governing board to annually submit a report to certain committees of the General Assembly that provides proof of the public institutions’ compliance or incompliance with this legislation. FISCAL IMPACT: STATE GOVERNMENT EXPENDITURES University of Tennessee System Locally Governed Institutions FY25-26 $1,678,300 $2,162,600 FY26-27 & Subsequent Years $1,501,800 $2,162,600 Total Positions Required: 61 Assumptions: • According to UT, there will be a one-time cost of $128,000 to design and create the course materials, and to distribute them to the institutions in time for the upcoming academic year. There will be an additional one-time expenditure of $48,500 in programmatic costs related to implementation, including conducting instructional workshops for all relevant institutions and faculty. • The total one-time increase in expenditures to the IAC of UT is estimated to be $176,500 ($128,000 + $48,500) in FY25-26. HB 291 - SB 1077 2 • The proposed legislation requires all students seeking a baccalaureate degree at any public institution to complete this course. • Based on information provided by the public institutions, to accommodate the legislation’s requirements, each locally governed institution of higher education (LGIs) and the UT system will require additional staff to teach this course to all students. • Based on information provided by four of the six LGIs, it is estimated that each of the six LGIs will need an average of six new faculty members to teach the new course based on the number of enrolling undergraduate freshmen. A total of 36 (6 faculty x 6 LGIs) new faculty members will be needed beginning in FY25-26. The precise number needed at each institution will vary. • Based on information provided by UT, the UT system is estimated to need 25 new faculty members across four campuses beginning in FY25-26. • The new faculty members for the LGIs and UT are assumed to be a mix of full-time and adjunct professors and lecturers. The precise salary that each of those professionals will receive will vary and is not known with certainty. • This analysis assumes that each new faculty member will receive an average annual salary of $45,000, plus benefits, to teach the new course. • The increase in expenditures to the public institutions related to salary and benefits is estimated to be as follows: • The estimated increase in state expenditures to LGIs for the new course requirement is therefore estimated to be $2,162,646 in FY25-26 and subsequent years. • The estimated increase in state expenditures to UT for the new course requirement is estimated to be $1,678,338 ($1,501,838 total number faculty + $176,500 IAC) in FY25-26, and $1,501,838 (faculty) in FY26-27 and subsequent years. CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director Title Salary Benefits Positions Total LGIs $45,000 $15,074 36 $2,162,646 UT $45,000 $15,074 25 $1,501,838