HB 20 – SB 293 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 27, 2025 Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564 HB 20 – SB 293 SUMMARY OF BILL: Establishes that the State Guard (SG) is a separate entity within the Military Department (DOM) for budgetary purposes. FISCAL IMPACT: STATE GOVERNMENT REVENUE Military Department Administration Fund State Guard Fund FY25-26 & Subsequent Years ($67,000) $67,000 EXPENDITURES Military Department Administration Fund State Guard Fund FY25-26 & Subsequent Years ($67,000) $67,000 Assumptions: • The SG conducts annual training to ensure personnel are proficient in military occupational skills relevant to current needs, such as cyber defense, medical support, and other specialized areas. These activities also cover sustenance costs, including meals, during training sessions. Additionally, the SG organizes a higher-education event to foster professional development for leaders and provides targeted training for specialized teams within the organization. • Based on estimates provided by the DOM, these activities are projected to incur $67,000 in recurring costs. • Currently, the SG is not budgeted as a standalone entity; its funding is included within the DOM’s Administrative Fund. • The proposed legislation would reallocate expenditures by shifting funds from the Administrative Fund to establish a dedicated State Guard Fund. This change is not expected to result in additional expenditures beyond the proposed budgetary reallocation. Consequently, the Military Department Administration Fund will see a $67,000 reduction in revenue, while the State Guard Fund will receive a corresponding increase in FY25-26 and subsequent years. HB 20 – SB 293 2 CERTIFICATION: The information contained herein is true and correct to the best of my knowledge. Bojan Savic, Executive Director