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Subcommittee approves bond bill adding projects including MTSU Murphy Center
Summary
House Bill 1407, the bond authorization bill, was advanced to full Finance after the committee adopted an amendment expanding bond authorizations to include an additional $25 million for Middle Tennessee State University's Murphy Center and a list of capital projects across higher education and state facilities.
The Finance, Ways and Means Subcommittee on April 15 advanced House Bill 1407, the annual bond authorization bill, to the full Finance committee by a 13-0 vote after adopting an amendment to expand projects covered by the bond authorization.
Leader Lambert and Chairman Hicks described the bond bill as a vehicle authorizing general obligation bonds for a range of capital projects, including higher education facilities and state infrastructure. Chairman Hicks said amendment 1 added an additional $25 million of general obligation bonds for Middle Tennessee State University's Murphy Center.
Chairman Hicks listed projects included in the bond package: DCS new Woodland Hills and Wilder security facilities; a new emergency operations center for Tema; ATSU 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; library/archives renovation for the court system; and other higher education projects. The amendment specifically added the MTSU Murphy Center expansion into the bond authorization.
Chairman Hicks explained the state's practice regarding bond authorizations: the general assembly authorizes bond amounts but often does not issue the bonds; instead, recurring funds are appropriated equal to roughly 11% of authorized but unissued principal (combining assumed interest and principal payment). He said Tennessee remains a low-debt state, with annual debt service around 1.7% of tax revenue under the current authorization.
Deputy Speaker Zachary stated the state remains one of the lowest-debt states and noted indebtedness is lower than at the start of the current administration. The clerk recorded 13 ayes, 0 nos on advancing HB1407 to full Finance.
Why it matters: The bond bill authorizes borrowing capacity for capital projects across higher education and state facilities; the projects added or authorized influence campus and infrastructure planning and potential future debt service obligations.
What comes next: HB1407 moves to the full Finance committee for further consideration.
