Treasury flags EMIF funding trouble and seeks oversight role for THDA debt

Treasury staff told the committee the Electronic Monitoring Indigent Fund (EMIF) continues to face recurring funding shortfalls: recurring revenue averages about $350,000 while annual expenses run roughly $1–2 million, and Treasury requested recurring funding that the governor did not recommend. Staff said they are seeing some reductions in claims but existing claim tails extend 12–24 months, which keeps expenditures elevated.

Treasurer also said Treasury plans to revoke an older memorandum of understanding that delegated debt-management responsibilities to the Tennessee Housing Development Agency (THDA) and to take a more active role in managing THDA's cash flow and debt portfolio. "That amount of debt is greater than the general obligation debt of the state," the treasurer said, noting the agency now manages billions in revenue bond debt and that Treasury wants more structural oversight of cash flow and debt management to reduce contingent reputational risk for the state.

Members questioned administrative cost levels in EMIF and asked about steps to reduce admin spending; Treasury staff described three administrative cost components (claims management system, adjudicators and internal indirect costs) and said they are bringing some adjudicator functions in-house to realize savings. The department's budget and requested positions for cash-flow management were approved by the committee.