HB 686 - SB 1172
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 28, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
HB 686 - SB 1172
SUMMARY OF BILL: Enacts the African American Cultural and Historical Grant Act.
Establishes the African American Cultural and Historical Grant Fund for the purpose of supporting
capital projects at facilities in this state that highlight the contributions, culture, and history of
African Americans. Requires the Tennessee Historical Commission (THC) to administer the Fund,
which shall be composed of funds appropriated by the General Assembly, gifts, grants, and other
donations. Establishes that monies in the Fund will not revert to the General Fund, but
carryforward to be expended for the purposes provided in this act.
Requires THC, subject to the availability of funds, to allocate and disperse grants to entities and
facilities to effectuate this act. Establishes that monies in the fund may be used by the THC for
program administration, marketing, and program evaluation; however, such expenses are prohibited
from exceeding five percent of the total amount appropriated for the program in any fiscal year.
Requires the THC to submit an annual report on the status of the program and grant allocations to
the Finance, Ways, and Means Committees of the Senate and the House annually, starting March 1,
2026.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE African American Cultural and Historical Grant Fund
FY25-26 & Subsequent Years $475,000
EXPENDITURES General Fund African American Cultural
and Historical Grant Fund
FY25-26 $583,500 $475,000
FY26-27 & Subsequent Years $581,500 $475,000
Total Positions Required: 1
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Assumptions:
• The THC is administratively attached to the Department of Environment and Conservation
(TDEC)
• Based on information provided by TDEC, the THC will require one additional employee to
administer the African American Cultural and Historical Grant Fund, as the THC does not
currently administer any funds such as the one created by this legislation
• Such new position will be required to review all applicants for grants and award such grants
in accordance with this act and subsequent guidelines established by the THC.
• This legislation will require one additional TDEC – Grants Program Manager position
beginning in FY25-26. The recurring cost of state expenditures is as follows:
Title Salary Benefits
Supplies
and Travel
#
Positions Total
Grants
Program
Manager $75,720 $20,590 $10,200 1 $106,510
• There will be one-time increase of expenditures of $2,000 for a computer and related
equipment.
• There will be an increase in state expenditures in FY25-26 of $108,510 ($106,510 + $2,000).
• There will be a recurring increase in state expenditures in FY26-27 and subsequent years of
$106,510.
• This legislation prohibits total expenses for administration, marketing, and program
evaluation from exceeding five percent of total amount appropriated to the program in any
fiscal year.
• The level of appropriations for the program in any given year is unknown. However, the
African American Cultural Heritage Action Fund, a program of the National Trust for
Historic Preservation, announced, on June 19, 2023, grants totaling $3,800,000 to protect
and preserve 40 sites across the country representing African American history.
• It is assumed that the program created pursuant to this legislation will be sufficiently funded
to provide grants to five such sites at a similar level, resulting in a recurring increase in state
expenditures of $475,000 [($3,800,000 / 40) x 5].
• Since the allocation of five percent of appropriated fund will not be sufficient to cover the
expenditures of the additional position, it is assumed that such expenditures will be funded
on a recurring basis by General Fund appropriations and all funding appropriated to the
African American Cultural and Historical Grant Fund will be utilized for grants for projects
that highlight the contributions, culture, and history of African Americans.
• Therefore, the total increase in state expenditures from the General Fund will be $583,510
in FY25-26 ($108,510 + $475,000) and $581,510 in FY26-27 and subsequent years ($106,510
+ $475,000).
• The total increase in state revenue and an equivalent increase in state expenditures from the
African American Cultural and Historical Grant Fund will be $475,000 in FY25-26 and
subsequent years. The amount of gifts, grants, and other donations to the fund is unknown
but is assumed to be not significant.
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CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director