SB 42 – HB 557
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 8, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
SB 42 – HB 557
SUMMARY OF BILL: Establishes the “State Disaster Relief Program” (Program), a state
grant program to assist counties affected by natural disasters where the county has declared a state
of emergency, but the damages do not qualify for federal disaster relief. Establishes a maximum
annual grant award of $250,000 per county, per fiscal year, and the available uses of such funds.
Requires the Tennessee Emergency Management Agency (TEMA) evaluate grant requests,
determine the amount of each award, and disburse it. The total amount of grants is limited to the
availability of funds allocated to the program in the annual General Appropriations Act.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 $3,169,700
FY26-27 & Subsequent Years $3,156,700
Total Positions Required: 2
LOCAL GOVERNMENT
REVENUE Permissive
FY25-26 and Subsequent Years $3,000,000
EXPENDITURES Permissive
FY25-26 & Subsequent Years $3,000,000
Assumptions:
• The number of county emergency management agencies that will seek grants through this
Program is unknown.
• The TEMA only tracks and aids those larger events that meet the federal threshold and,
therefore, meet the criteria for grants from the Federal Emergency Management
Association (FEMA).
• Based on information available on FEMA’s website, for the 10-year period between January
24, 2015 - January 23, 2025, 31 total federal disasters have been declared in Tennessee, due
to the following:
o 12 – severe storms
o 5 – fires
o 4 – tornadoes
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o 3 – other
o 2 – floods
o 2 – tropical storms
o 2 – severe ice storm
o 1 – winter storm
• This averages out to approximately 3.1 disasters per year that have been declared in
Tennessee in the past 10 years (31 disasters / 10 years).
• In order to meet the current federal disaster threshold, as defined in the federal Stafford Act
(Act), a disaster must meet both a state threshold, or approximately $9,800,000, and a local
threshold, which is approximately $132,000.
• It is assumed that the majority of disasters meet the federal threshold for disaster relief and
such would be solely utilized in most instances, instead of this program; however, it is
estimated that there will local, smaller disasters that do not meet the aforementioned
threshold, which will qualify it for this grant assistance.
• Federal disaster declarations in Tennessee grew, from 18 declarations between 2005-2014,
to 31 declarations between 2015-2024, reflecting a 72 percent rise in recognized
emergencies.
• Given the rise in federal disaster declarations over the past two decades, it is assumed that
at least four county emergency agencies per year, per grand division, or 12 emergency
agencies annually (4 counties x 3 grand divisions) in the state will seek assistance from this
new grant program. It is assumed that the full $250,000 will be awarded in each instance.
• There will be a recurring increase in state expenditures of $3,000,000 ($250,000 grant x 12
counties) in FY25-26 and subsequent years.
• There will be a recurring permissive increase in local revenue and expenditures of
$3,000,000. It is assumed that county emergency agencies will utilize this funding to
supplement local spending that would otherwise take place in the absence of this legislation.
Therefore, any additional impact on local government expenditures will be not significant.
• Based on information provided by TEMA, the agency currently includes two main recovery
program functions: the Public Assistance (PA) program and the Unmet Recovery Needs
Branch.
• The agency’s PA team is currently managing 23 open federally declared disasters, with
Tennessee experiencing disaster declarations at record levels. These ongoing efforts fully
allocate existing PA staff, leaving no capacity to implement or support a new state disaster
grant program.
• The Unmet Recovery Needs Branch focuses on connecting individuals with unmet needs
from federal Individual Assistance to nonprofit organizations for aid. It does not oversee
grant programs or address non-federally declared disasters. As a result, it lacks both the
capacity and the scope to manage a new state-level disaster grant program.
• As the intent of the legislation is to provide counties and towns with funding, additional
staff will be required to manage the Program, as there is no existing program ability within
TEMA for this capability. Implementing the new grant Program will require developing
procedures, contracting templates, and administrative plans. Two new positions will be
needed to handle application review, fund disbursement, and compliance monitoring.
• This will require two additional Emergency Management Special-3 (EMS) positions
beginning in FY25-26. The total recurring increase in state expenditures is as follows:
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Title Salary Benefits
#
Positions Total
EMS 3 $60,336 $18,038 2 $156,748
• There will be a one-time increase in state expenditures in FY25-26 of $13,000 for personnel
equipment ($6,500 equipment x 2 positions).
• The total increase in state expenditures in FY25-26 is estimated to be $3,169,748
($3,000,000 grant funds + $156,748 personnel + $13,000 in equipment).
• The total increase in state expenditures in FY26-27 and subsequent years is estimated to be
$3,156,748 ($3,000,000 grant funds + $156,748 personnel).
•
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director