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Department of General Services presents $719 million capital outlay plan; includes library renovation, youth centers and emergency operations center request
Summary
The Department of General Services presented a proposed FY26 capital outlay program of more than $719 million to the Senate Finance Ways and Means Committee, highlighting renovation of the Old Library and Archives, youth development center construction for the Department of Children's Services, a proposed new emergency operations center and continued state-park work.
The Department of General Services (DGS) told the Senate Finance Ways and Means Committee on March 18 it is proposing a capital outlay program totaling more than $719 million for fiscal 2026, a package that mixes capital improvement projects and capital maintenance work.
Matt Van Epps, commissioner of the Department of General Services, said the DGS STREAM division proposed 16 capital improvement projects totaling about $572 million and 31 capital maintenance projects totaling about $147 million. "We're proposing a capital outlay program totaling over $719,000,000 for the FY '26 capital budget," Van Epps said.
Deputy Commissioner John Hall and other DGS staff outlined several high-cost requests included in the packet. Those highlights included:
- A request of approximately $139.5 million to renovate the Old Library and Archives building, including removing west-side stacks, constructing office space for administrative offices of the courts and providing a secure connection to the Supreme Court building; DGS said $134 million of the request would be financed with bonds if approved.
- A $3.5 million additional allocation for a State Capitol roof, windows and doors project to bring total project appropriation to about $28 million; work would include replacing 209 windows, about 15 exterior wooden doors and replacing the copper roof with pre-patinated copper.
- An $81.1 million capital request to complete work for Department of Children's Services (DCS) facilities, completing a previously authorized package that DGS summarized as funding construction for three new youth development centers and associated assessment and intake facilities.
- A $275.4 million request to build a new Tennessee Emergency Management Agency (TEMA) operations center and administration building on the Joint Forces Headquarters campus; DGS said the proposed facility would provide about 75,000 square feet of space, a modern emergency operations center, training and planning space, and upgraded technology and communications capabilities.
- Capital projects for the Department of Environment and Conservation (TDEC), including continued development of standalone state parks and a capital request of about $21.4 million for work at Devil's Backbone State Park in Lewis County and initial capital improvements for three proposed state park sites.
DGS fiscal staff described the state's capital budgeting process, including how funds are held in the capital project fund and drawn down as projects incur costs. Michael Winston, fiscal officer for DGS, told members that the capital project fund is typically held until projects draw on the funds and that Finance & Administration handles financing and bond questions.
The committee also heard an update on Blue Oval City infrastructure from Clay Bright of the Megasite Authority of West Tennessee. Bright reported several state-delivered infrastructure elements are complete or in service: the Tennessee College of Applied Technology (TCAT) building opened June 14, 2024; DGS completed the water treatment plant, wastewater treatment plant, related pipeline and pump station; water service to Ford began in November 2023 and sewer service was accepted in July 2024. Bright said the authority completed a rate study and has begun invoicing Ford for full rates to prevent operating at a deficit after a statutory deadline in December 2026; he said Ford and other on-site suppliers currently use a small share of the system's capacity.
Why it matters: The capital outlay package includes several multi‑year projects and major single-project requests that would be financed with a mix of cash and bonded debt if approved. The TEMA, DCS and state park projects would change the state's capital obligations and long-term maintenance responsibilities; the Blue Oval City infrastructure update shows completed state investments tied to a large private manufacturing project.
What’s next: DGS said detailed design work will proceed for projects that receive appropriation; bond financing and cash-flow timing will be determined through Finance & Administration and the Treasury as projects advance.
