Comptroller adopts budget and debt manual updates and acknowledges FEMA disaster loans

The State Funding Board approved updates to the Tennessee budget and debt manuals intended to align comptroller guidance with recent legislative changes and industry standards, and acknowledged two FEMA‑linked operating loans for local governments.

Steve Osborne, assistant director for local government finance in the Comptroller of the Treasury's office, outlined several changes to the budget manual: clarifying the comptroller's budget certificate process, capping municipal continuation budgets at two months under a recent law, making school budgets default to last year if not adopted by Sept. 1, and updating the liability distress metric to industry standards.

On the debt manual, Osborne described revisions to the security pledge guidance for grant anticipation notes, added guidance for utilities issuing interfund loans, moved the refunding submission process to a fillable PDF, and clarified the financial data required for utility plans of finance. "First item of change is to clarify and add clarity to the comptroller's budget certificate process," Osborne said.

The board adopted both manuals by voice vote with no opposition recorded. The comptroller's office said the updates largely implement statutory changes recently passed by the General Assembly and standardize certain submission processes for local governments.

Separately, the board acknowledged FEMA-related emergency financial items presented by the comptroller's office. Osborne reported McNairy County received approval for a $400,000 interfund loan with a two‑year maturity after damage from Winter Storm Fern, and the city of Fairview received a $2,750,000 bank loan with a three‑year maturity; these were acknowledged as operating loans permitted when FEMA declares a disaster.

The board adjourned following these acknowledgements.