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Treasurer David Lillard’s budget approved; office presses for EMIF funding, more unclaimed‑property staff and Ares retirement system replacement
Summary
The Senate Finance, Ways and Means Committee approved the Tennessee Treasury Department’s FY 2026 budget in an 11‑0 roll‑call vote after Treasurer David Lillard outlined technology projects, unclaimed‑property workload and funding shortfalls in the electronic monitoring program.
The Senate Finance, Ways and Means Committee approved the Tennessee Treasury Department’s FY 2026 budget in an 11‑0 roll‑call vote after Treasurer David Lillard and senior staff outlined technology modernization, unclaimed property workload and funding gaps in the electronic monitoring program.
“I’m David Lillard, Tennessee state treasurer,” Lillard told the committee as he introduced the department’s request and the staff who would answer questions, including Deputy Treasurer Rick DeBray and accounting director Brian Derrick. The governor’s proposal included the department’s cost increases and transfers tied to recently passed education savings legislation.
Lillard highlighted three items the department requested but that did not appear in the governor’s recommendation: a recurring $2 million appropriation for the Electronic Monitoring Interlock Fund (EMIF), a $2 million base funding shift for the Criminal Injuries Compensation Fund, and $350,000 in unclaimed‑property revenue to fund three additional service‑counselor positions to handle rising claims.
The treasurer’s office said unclaimed‑property filings and receipts have increased notably; the division paid about 65,000 claims valued at more than $68 million in fiscal 2023 and more than 78,000 claims in fiscal 2024. Brian Derrick told the committee that SPIFF interest earnings have been “pretty good” this year and that the office had earned “upwards of $300,000,000 thus far,” projecting a possible $600 million to $700 million by year‑end.
The department also described use of $58.75 million in federal American Rescue Plan Act funds to support three technology initiatives, including a multi‑year retirement administrative system replacement referred to as Project Ares. Lillard asked the committee to consider a $200,000 recurring position for a director of agency and legislative affairs funded from departmental revenue to support outreach and legislative coordination.
Committee members asked for more detail on where unclaimed property claims originate and how the EMIF fee revenue stream performs across jurisdictions. Lillard and staff said unclaimed‑property filings come from annual holder reports from businesses and other entities, that return‑to‑owner activity is increasing with Tennessee’s economy, and that the EMIF revenue stream has not matched growing device‑utilization and program costs.
The committee approved the treasury budget on a recorded vote. Hale, Hensley, Johnson, Lamar, Powers, Rose, Stevens, Wally, Yeager, Yarbrough and Chairman Watson voted aye.
