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Subcommittee advances bond authorization bill adding $25 million for MTSU project and multiple campus and infrastructure projects
Summary
House Bill 1407, the bond authorization bill, was advanced to full finance 13‑0 after committee adoption of an amendment adding $25 million in general obligation bonds for the MTSU Murphy Center. The bill lists a range of higher education and infrastructure projects and the chair outlined the state's low overall debt burden.
The Finance Ways and Means Subcommittee voted 13‑0 to advance House Bill 1407, the general obligation bond authorization bill, to the full Finance Committee after adopting an amendment that adds $25,000,000 for the Middle Tennessee State University (MTSU) Murphy Center.
Leader Lambert introduced the bill and the committee adopted an amendment (drafting code 6615) that Chairman Hicks described as adding Murphy Center bonding into the bill. "That particular amendment expands the bond amount to include an additional $25,000,000 worth of general obligation bonds for MTSU's Murphy Center," Chairman Hicks said.
Chairman Hicks outlined major projects included in the bond authorization: new facilities and renovations across state agencies and higher education institutions. He listed projects that include a DCS Woodland Hills and Wilder security facility, a new TEMA emergency operations center, ETSU Brown Hall renovation, Tennessee Tech construction/manufacturing building, University of Memphis research modernization, TCAT Memphis aviation campus replacement, UT‑Knoxville chemistry building, UT‑Martin college of business and global affairs, and AOC library and archives renovations. TDOT bond authorization was also included.
Hicks explained the state's longstanding debt practice: although the bill authorizes bonds, Tennessee typically does not immediately issue the full authorized amount. Instead, the general assembly appropriates recurring funds equal to 11% of the principal amount of authorized but unissued general obligation bonds (an assumption combining an estimated 6% interest and 5% principal payment). With the newly authorized bonds, Hicks said the state's annual debt service would remain about 1.7% of tax revenue, down from approximately 2.4% when the current administration began, and the state would continue to be among the lowest‑debt states.
Deputy Speaker Zachary echoed the chair's point, saying the state remains one of the lowest indebted states even with the new bonding. After brief discussion and no further questions, the clerk recorded 13 ayes and 0 nos and the chair announced that House Bill 14‑07 "moves to full finance."
The subcommittee did not issue bonds at the hearing; it authorized bonding authority for future issuance and advanced the bill to full Finance Committee for additional consideration and potential final passage.
