HB 332 - SB 867
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
April 2, 2025
Fiscal Analyst: Chris Higgins | Email: chris.higgins@capitol.tn.gov | Phone: 615-741-2564
HB 332 - SB 867
SUMMARY OF BILL: Enacts the Government Serves the People Act. Requires the
Commissioner of the Department of Finance and Administration (F&A) to designate a state official
as the state Government Service Delivery (GSD) Coordinator within F&A, who is responsible for
coordinating government-wide efforts to improve the delivery of benefits or services by agencies,
particularly with respect to high-impact service programs.
Requires the Commissioner to identify each agency that must comply with the legislation, and
requires each agency that is selected to designate an official to be responsible for the government
service delivery of the agency.
Requires the GSD Coordinator, in consultation with each lead agency service delivery official, to
develop and oversee the implementation of government-wide standards, policies, and guidelines for
services and programs provided by agencies. Requires the GSD Coordinator to collect and report
qualitative and quantitative information or data on government service delivery and to evaluate the
quality of government service delivery, including through the establishment of performance metrics.
Requires the Commissioner to provide an annual report to the Governor and the Speakers of the
Senate and the House of Representatives on government-wide current and future efforts to improve
government service delivery by agencies.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 $1,136,000
FY26-27 $1,936,000
FY27-28 & Subsequent Years $436,000
Total Positions Required: 1
OTHER FISCAL IMPACT
Passage of this legislation may result in additional increases in state expenditures if there are
agencies who are unable to comply with the requirements of the legislation utilizing existing
personnel and resources. The extent and timing of any additional increases in state expenditures
cannot be reasonably determined.
HB 332 - SB 867 2
Assumptions:
• The proposed legislation requires the Commissioner to appoint a state official as the GSD
Coordinator.
• An existing F&A employee cannot accommodate the additional responsibilities of a GSD
Coordinator.
• Therefore, F&A will require one additional STS Director 1 position, beginning in FY25-26.
• The recurring increase in state expenditures is as follows:
Title Salary Benefits # Positions Total
STS Director 1 $152,616 $33,347 1 $185,963
• The proposed legislation requires the GSD Coordinator to collect and report qualitative and
quantitative information or data on government service delivery from each designated
agency.
• F&A will need to implement new software systems for use by the GSD Coordinator and
designated agencies in order to comply with the legislation.
• Based on information provided by F&A, there will be one-time increase in expenditures in
FY25-26 of $500,000 for an implementation consultant and of $450,000 for development
and purchase of pilot software, and a one-time increase in expenditures of $1,500,000 in
FY26-27 to purchase the full software application.
• In addition to the implementation costs, F&A will experience a recurring increase of
$250,000 for software maintenance and renewals in FY26-27 and subsequent years.
• The total increase in state expenditures will be $1,135,963 ($185,963 + $500,000 +
$450,000) in FY25-26, and $1,935,963 ($185,963 + $1,500,000 + $250,000) in FY26-27.
• The total recurring increase in state expenditures will be $435,963 ($185,963 + $250,000) in
FY27-28 and subsequent years.
• It is unknown which agencies will be chosen for participation by the Commissioner. There
may be additional increases in state expenditures if there are agencies who are unable to
comply with the proposed legislation utilizing existing personnel and resources.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director