HB 16 – SB 141
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 7, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
HB 16 – SB 141
SUMMARY OF BILL: Creates the Student Pedestrian Protection Grant Fund (Fund) within
the General Fund. Requires the Department of Transportation (TDOT) to establish and manage a
student pedestrian protection grant program to provide local governments with grants for designing,
constructing, repairing, or replacing sidewalk infrastructure near public schools.
Authorizes TDOT to allocate funds competitively each fiscal year, with the Commissioner
responsible for proposing the program’s annual budget and setting criteria for awarding grants.
Requires funds may only be allocated or spent if the local government provides a matching amount,
as determined by the Commissioner, who will have the authority to allow part or all of the match to
be met through in-kind project work.
Requires each recipient local government of such grants to provide a quarterly report to TDOT
which details progress on use of such funds, as well as a final report once all such funds have been
expended. Requires TDOT, beginning October, 1, 2025, to annually prepare a report to the General
Assembly regarding the funds received and payments made by the Fund.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE Student Pedestrian Protection Grant Fund
FY25-26 & Subsequent Years $2,080,000
EXPENDITURES General Fund
Student Pedestrian
Protection Grant Fund
FY25-26 & Subsequent Years $2,080,000 $2,080,000
LOCAL GOVERNMENT
REVENUE Permissive
FY25-26 & Subsequent Years $2,080,000
EXPENDITURES Permissive
FY25-26 & Subsequent Years Up to $4,160,000
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Assumptions:
• The proposed legislation seeks to provide local entities with grants to design, construct, and
repair sidewalks around public schools.
• Based on the Congressional Research Office’s 2020 report titled School Construction and
Renovation: A Review of Federal Programs and Legislation, school construction costs are largely
covered by local and state governments, and in some instances, with the aid of federal
funding.
• In 2024, the Illinois Department of Transportation awarded $9,800,000 through the Safe
Routes to School program for local projects aimed at improving the safety and accessibility of
walking and biking routes to school.
• For the purpose of this fiscal analysis, Illinois was chosen for comparison due to its recent
implementation and similar structure. Using a current program provides a basis for
accounting for factors such as inflation and labor costs, which are likely to impact project
expenses and application trends in Tennessee.
• Illinois has 3,977 public schools and received 143 applications for the program,
representing approximately 3.6 percent of schools. [(143 applications / 3,977 schools) x
100]. In FY23-24, Illinois awarded funding to 47 projects, representing approximately 33
percent of applications (47 projects / 143 applications).
• Tennessee has 1,843 public schools.
• Adjusting the application rate to account for the fact that Tennessee has 53.7 percent fewer
schools than Illinois, the adjusted application rate is estimated at 1.67 percent [(3.6%
application rate x (1,843 TN schools / 3,977 IL schools)]. Based on this, approximately 31
schools in Tennessee are expected to apply annually (1,843 schools x 1.67%).
• Assuming that 33 percent of applications to TDOT are awarded to public schools,
approximately 10 public schools (31 applications x 33% awards) will receive funding
through this grant program annually.
• Illinois awarded an average of $208,511 per project ($9,800,000 total award / 47 projects).
• Assuming a per-project cost of $208,000, it is estimated that $2,080,000 annually will be
required to fund 10 projects (10 projects x $208,000 award per project).
• The proposed legislation is assumed to result in an increase to state expenditures of
$2,080,000 in FY25-26 and subsequent years to fund the Student Pedestrian Protection
Grant Fund.
• It is assumed that applications for the Student Pedestrian Protection Grant will decline as
initial funding addresses critical needs and reduces demand. However, the extent and timing
of this decline on state expenditures remains uncertain, as it will depend on factors such as
the pace of infrastructure completion and changing community priorities.
• The local match requirement is pursuant to the Commissioner’s decision, but for the
purpose of this analysis, it is assumed to be not greater than a 1:1 match. Local
governments will receive an increase in revenue of $2,080,000 through awarded grant
funding. As a result, the permissive increase in local expenditures is estimated to be up to
$4,160,000 ($2,080,000 x 2) in FY25-26 and subsequent years.
• It is further unknown whether any federal funds or funds from other sources will be
available to be deposited into the Fund. This fiscal analysis assumes no such funding will be
available.
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• The Transportation Alternatives Program within TDOT distributes federal grants to local
governments for transportation improvements, including updating ADA accessibility,
building sidewalks, and creating bike lanes. It is assumed that the Fund will be administered
within this program, allowing TDOT to manage the grant program and submit the required
quarterly report to the General Assembly using existing resources and personnel.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director