SB 6003 - HB 6003
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
January 24, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
SB 6003 - HB 6003
SUMMARY OF BILL: Creates the Hurricane Helene Interest Payment Fund for the
purpose of paying local governments’ interest costs up to five percent or the prime interest rate,
whichever is lower, for up to three years on money borrowed to pay eligible disaster recovery costs
related to Hurricane Helene. Eligibility is limited to local governments located in a county that was
included in the federal disaster declaration resulting from Hurricane Helene.
Creates the Governor’s Response and Recovery Fund for the purpose of responding to or
recovering from an emergency, including but not limited to agricultural recovery efforts related to an
emergency; unemployment assistance related to an emergency; and business recovery assistance
related to an emergency. Requires funds only be expended in response to Hurricane Helene or
another event for which the Governor declares a state of emergency or disaster declaration.
Authorizes the Tennessee Emergency Management Agency (TEMA) to expend funds from the
Governor’s Response and Recovery Fund in the form of grants or loans to third parties. Requires
TEMA to submit a report at least annually, to the Chairs of certain legislative committees detailing
the amount expended from the fund in the past year, the purposes for which such money was
expended, and the amount remaining in the fund.
FISCAL IMPACT:
STATE GOVERNMENT
REVENUE
Hurricane Helene Interest
Payment Fund
Governor’s Response and
Recovery Fund
FY25-26 $110,000,000 $100,000,000
EXPENDITURES General Fund
FY25-26 $210,000,000
OTHER FISCAL IMPACT
The timing and extent of expenditures from the Hurricane Helene Interest Payment Fund and
the Governor’s Response and Recovery Fund and associated increases in local government
revenue cannot be quantified with reasonable certainty. Additionally, the extent to which
funding from federal or other sources will be available for deposit to the two funds, if any, is
unknown.
SB 6003 - HB 6003 2
Assumptions:
• The precise amount to be deposited into the Hurricane Helene Interest Payment Fund and
the Governor’s Response and Recovery Fund is not yet known and is subject to specific
appropriation(s) of funds for such purposes as determined by the General Assembly.
• According to the proposed Georgia Amended Fiscal Year 2025 and Fiscal Year 2026 State Budget
Report, there is an approximate $350,000,000 in state expenditures for similar projects to
address damages associated to Hurricane Helene.
• Considering the population differences between Georgia and Tennessee, it is estimated that
the one-time increase in state expenditures from the General Fund, to be earmarked for the
proposed funds, will be approximately $210,000,000.
• The increase in state expenditures of $210,000,000 from the General Fund will be divided
between the two funds as follows: $110,000,000 will be deposited to the Hurricane Helene
Interest Payment Fund and $100,000,000 will be deposited to the Governor’s Response and
Recovery Fund.
• Monies from the Hurricane Helene Interest Payment Fund will be dispersed to eligible local
governments for the payment of the local governments’ interest costs for up to three years
on money borrowed to pay eligible disaster recovery costs related to Hurricane Helene. The
extent and timing of such payments are unknown.
• Moneys in the Governor’s Response and Recovery Fund may be expended in response to
Hurricane Helene or another future event for which the Governor declares a state of
emergency or disaster declaration.
• Due to multiple unknown variables, including but not limited to the extent of any funding
that will be made available to local governments versus other third parties, the extent of
such funding that will be expended in the form of loans versus grants, and the timing and
extent of future emergency or disaster events, the timing and extent of any expenditures
from the Governor’s Response and Recovery Fund and increases to local government
revenue cannot be quantified with reasonable certainty.
• It is further unknown whether any federal funds or funds from other sources will be
available to be deposited to either of the two funds. This fiscal analysis assumes no such
funding will be available.
• It is assumed that TEMA can disperse funds and submit the required annual report utilizing
existing resources and personnel.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director