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TDEC defends ARPA reallocations as park investments and staffing requests draw scrutiny
Summary
TDEC deputies outlined requests for new park staff and capital for state parks and said the agency is reallocating stalled ARPA water/wastewater funds to other Tennessee projects rather than returning money to the federal government. Deputies told lawmakers they are prioritizing community-level spending and setting construction deadlines to keep projects on schedule.
The Tennessee Department of Environment and Conservation told the House Finance, Ways and Means Committee on Feb. 24 that it is reallocating a small amount of American Rescue Plan Act (ARPA) funds from local projects that cannot meet federal deadlines to other Tennessee projects instead of returning the funds to the U.S. Treasury.
"We reallocate it to keep it within Tennessee," Deputy Commissioner Karen Simo said, describing the agency’s effort to keep federal dollars in-state while working with grantees to meet construction and reimbursement timelines. Simo said only about $1.9 million has been formally returned so far and that reallocation is done in coordination with affected communities.
Deputy Commissioner Brian Clifford said the agency is requesting staffing and operational increases tied to Tennessee State Parks, including 29 new positions largely funded from park revenue. "The state now boasts 68 state parks," Clifford told the committee, asking members to support recurring recognition of revenue so parks can operate newly opened facilities.
Committee members pressed TDEC on ARPA deployment and timetable. Chairman Williams asked whether the department had intervened when local grantees were not progressing quickly enough; Simo and Atkins said TDEC has stepped in, reduced the number of construction projects flagged for ARPA reimbursement from 140 to 115, and is setting expectations that construction be complete by the end of July to allow grant contracts to close by Sept. 30 and invoices to be processed before the federal year-end.
Simo and Clifford said the agency prefers to move unobligated dollars among projects within the same community when possible and only reallocates outside the community when necessary. They also said proposed new park positions are expected to be self-funded through park revenues — lodges, campgrounds and hospitality operations — and that they will perform further revenue analyses before submitting recurring budget requests in future cycles.
The committee did not take votes on the request; members signaled interest in closer follow-up on ARPA timelines and reporting on reallocated funds.
