HB 808 - SB 1197
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 27, 2025
Fiscal Analyst: Justin Billingsley | Email: justin.billingsley@capitol.tn.gov | Phone: 615-741-2564
HB 808 - SB 1197
SUMMARY OF BILL: Authorizes a county, by resolution of its legislative body (CLB),
which during the previous fiscal year experienced substantial characteristics of economic distress, as
determined by the Department of Economic and Community Development (ECD), to forego the
automatic increase in minimum compensation for county officials provided in state law. Specifies
that if the ECD determines that any county, having adopted such resolution, no longer is
experiencing substantial characteristics of economic distress, or if county officials take office
following the next county election after such resolution was adopted, the compensation of such
officials must be increased to the level it would have been if not for such resolution.
Requires the ECD to determine each county’s level of economic distress no later than July 1 of each
year based upon unemployment, per capita income, and poverty levels using statistical data prepared
by any agency of the state or federal government.
FISCAL IMPACT:
OTHER FISCAL IMPACT
Due to multiple unknown variables, any permissive decrease in local government expenditures
cannot be determined with reasonable certainty.
Assumptions:
• The minimum compensation of county officers is established in Tenn. Code Ann. § 8-24-
102(b), and is progressive in relation to the population of the respective county. These
amounts were established in FY01-02.
• Pursuant to Tenn. Code Ann. § 8-24-102(d), since FY02-03, these minimum compensation
amounts have been adjusted annually, based on various factors.
• This legislation will authorize a CLB to pass a resolution to effectively forego these
compensation increases, if such county experienced substantial characteristics of economic
distress, as determined by the ECD.
• Adoption of a resolution will occur at a regularly scheduled meeting of the CLB, resulting in
no significant increase in local expenditures.
• Based on information provided by the County Technical Assistance Service (CTAS), this
legislation could impact county officials in the following counties, which, in FY24-25,
experienced substantial characteristics of economic distress: Bledsoe, Cocke, Grundy,
Hancock, Hardeman, Haywood, Lake, Perry, and Scott.
HB 808 - SB 1197 2
• It is unknown which, if any, of the aforementioned CLBs will choose to pass a resolution to
forego such minimum compensation increases.
• Additionally, it is unknown when any of the aforementioned counties will no longer
experience characteristics of economic distress, which, upon determination by ECD, would
require such officials’ compensation to be increased to the level it would have been if not
for such resolution.
• Based on information provided by CTAS, if every county aforementioned were to pass a
resolution to forego such minimum compensation increases, this legislation would result in
a decrease in local government expenditures in FY25-26 of $264,821.
• Due to the inability to determine the future actions of the various CLBs, any such decrease
in local expenditures cannot be determined with reasonable certainty.
• According to information provided by the ECD, it can provide determination of each
county’s level of economic distress, as required by this legislation, utilizing existing
resources.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director