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Committee approves bond package adding $25 million for MTSU Murphy Center; lawmakers say state debt remains low
Summary
Members voted to advance House Bill 14-07, the bond authorization bill, which includes a $25 million general-obligation allocation for the MTSU Murphy Center and authorizations for multiple higher-education and state building projects. The committee was told the state's annual debt service remains low at about 1.76% of tax revenue.
The committee advanced House Bill 14-07, the state's bond bill, after adopting a committee amendment that adds $25 million in general obligation bond authorization for the Middle Tennessee State University Murphy Center.
Chairman Hicks told the committee the bond bill authorizes general-obligation bonds for a list of projects, including a new Woodland Hills facility for DCS, a Wilder secure facility, a TEMA operations center, renovations at ETSU's Brown Hall, construction at Tennessee Tech and a research modernization project at the University of Memphis, and an aviation campus replacement for TCAT Memphis. The chair said most of the bond authorizations this year are for higher-education capital projects that are non–revenue-generating.
Hicks also explained the General Assembly’s long-standing practice of appropriating recurring funds equal to 11% of the principal amount of authorized but unissued general obligation bonds; that figure is intended to combine an assumed 6% interest rate and a 5% principal payment schedule. He said that, with the newly authorized bonds, Tennessee "will continue to be a low debt state," estimating annual debt service at about 1.76% of tax revenue compared with 2.4% at the start of the Lee administration.
The committee voted to move House Bill 14-07 to calendar and rules; the clerk reported 26 ayes, 0 nays.
Ending: House Bill 14-07 moves to calendar and rules with the amendment adding $25 million for the MTSU Murphy Center. Committee discussion emphasized the higher-education focus of the package and noted TSSBA policy discussions about future bond-issuance rules.
