HB 840 - SB 850
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 26, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
HB 840 - SB 850
SUMMARY OF BILL: Increases each General Assembly member’s monthly expense
allowance from, $1,250 to $2,250. Changes the date on which members receive an adjusted
increase to their monthly expense allowance from the date of the statewide general election in 2024,
to the date of the statewide general election in 2026, and on the date of the statewide general
election every two years thereafter. Effective November 3, 2026.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY26-27 $897,600
FY27-28 and Subsequent Years >$1,346,400
Assumptions:
• Pursuant to Tenn. Code Ann. § 3-1-106(f)(1), each member of the General Assembly is
paid a monthly allowance of $1,250 for expenses in connection with the member’s official
duties when away from the seat of government.
• Pursuant to Tenn. Code Ann. § 3-1-106(f)(3), on November 5, 2024, the date of the
statewide general election, and on the date of the statewide general election every two years
thereafter, the expense allowance established in subdivision (f)(1) must be adjusted to
reflect the percentage increase in the average consumer price index (CPI) for the two-year
period immediately preceding the statewide general election. Each such adjustment must be
rounded up to the nearest multiple of $100.
• As of the previous November 5, 2024 election, the Office of Legislative Administration
provides that members of the 114
th
General Assembly receive a $1,300 monthly allowance.
• Based on the U.S. Bureau of Labor Statistics website’s consumer price index historical table
for the U.S. City Average labeled “Consumer Price Index for All Urban Consumers” it can
be reasonably estimated that on November 3, 2026, the two-year CPI average will result in
the members receiving an increase of $100.
• Under current law, as a result of the $100 increase, members of the General Assembly will
receive a monthly allowance of $1,400 ($1,300 + $100) beginning November 3, 2026.
• The proposed legislation increases the monthly allowance from what would have been
$1,400 to $2,250 on November 3, 2026, resulting in an increase of $850 ($2,250 - $1,400)
per member per month for the 115
th
and 116
th
General Assembly members.
HB 840 - SB 850 2
• This legislation resumes future allowance increases using the consumer price index
percentages as outlined. As a result, future increases will be over a higher base amount than
under current law, resulting in an additional increase in state expenditures every subsequent
two years. The precise increase is dependent on future CPI averages and cannot be
reasonably determined.
• Due to an effective date of November 3, 2026, the increase in state expenditures is
estimated to be $897,600 [($850 x 132 members) x 8 months] in FY26-27 and exceed
$1,346,400 [($850 x 132 members) x 12 months] in FY27-28 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director