Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
Courts 302.27 Admin. Office of the Courts $747,800 $400,000 ($347,800) -46.5% Court Improvement grants are for two federal fiscal years. According to
the AOC, the timing of the grants was recently changed, resulting in
federal revenue for FY09-10 to appear to be doubled. In reality, grant
revenue has remained stable.
Claims and 313.03 Criminal Injuries Compensation $5,181,000 $3,700,000 ($1,481,000) -28.6% ARRA funding of $1,472,800 in federal FY08-09. Federal funding for state
Compensation FY10-11 is calculated at 60 percent of state funding in federal FY08-09.
State funding was reduced in federal FY08-09 due to ARRA funding;
therefore, the base to determine federal funding in state FY10-11 was
reduced. There is no reduction of services relative to this reduction for
FY10-11.
313.10 Risk Management Fund $5,850,000 $0 ($5,850,000) -100.0% During FY09-10, FEMA designated $5,850,000 in response to the 2010
May flooding in Tennessee, a federally declared disaster. This funding
was administered through the Risk Management Fund. There is no
reduction in services to state agencies or the general public in FY10-11.
Commissions 316.11 Tenn. Regulatory Authority $844,400 $587,900 ($256,500) -30.4% Changes in federal revenue are due to a timing issue in how they are
accounted for in Edison. Of the $844,441 in FY09-10, $266,958 was for
FY08-09 activity and $577,484 was for FY09-10 activity. With $587,900
budgeted in FY10-11, the difference is actually an increase of $10,416.
316.25 Arts Commission $1,300,900 $1,086,500 ($214,400) -16.5% A one-time ARRA grant of $321,800 to protect and preserve jobs in the
nonprofit art sector in FY09-10. Eleven arts organizations have had to find
alternative funding for threatened positions and reduce positions and
associated programs.
Finance and 317.03 Office for Information Resources $125,000 $0 ($125,000) -100.0% One-time grant for the U.S. Geological Survey, CFDA 15.808.
Administration
Page 1
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
317.05 Division of Accounts $7,200 $0 ($7,200) -100.0% The federal Cash Management Improvement Act allows the Division of
Accounts to bill a certain amount of time to federal grants when compiling
the annual financial report. There will be no impact as a result of the lost
funding.
Veterans Affairs 323.00 Veterans Affairs $459,900 $392,700 ($67,200) -14.6% Amount is based on number of burials annually. Precisely estimating the
number of burials annually is difficult. There will be no reduction in
services. Funding will be adjusted as needed for burials.
Environment and 327.01 Administrative Services $2,957,400 $2,500,400 ($457,000) -15.5% According to TDEC, there have been no significant reductions in federally
Conservation funded programs in FY10-11 based on funds awarded to the Department.
One-time grant money is awarded for specific projects. Precise estimates
are difficult for projects resulting in over-collections and under-collections
each year.
327.12 Tennessee State Parks $259,600 $1,000 ($258,600) -99.6% See above. No reduction in programs.
327.20 State Lands Acquisition Fund $2,000 $0 ($2,000) -100.0% See above. No reduction in programs.
327.30 Environment Administration $159,500 $0 ($159,500) -100.0% See above. No reduction in programs.
327.32 Radiological Health $82,100 $70,700 ($11,400) -13.9% See above. No reduction in programs.
327.37 Abandoned Lands $25,000 $0 ($25,000) -100.0% See above. No reduction in programs.
327.40 Groundwater Protection $54,100 $0 ($54,100) -100.0% See above. No reduction in programs.
327.45 Office of Environmental $334,300 $272,000 ($62,300) -18.6% See above. No reduction in programs.
Assistance
Page 2
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
TWRA 328.03 Wetlands Acquisition Fund $50,700 $0 ($50,700) -100.0% One-time grant money was used to purchase land along the Wolf River in
West Tennessee. One-time grants are applied for as needed for wetland
acquisition. There is no impact on the Department or programs.
Correction 329.01 Administration $1,280,100 $1,114,500 ($165,600) -12.9% The amount of $1,280,100 is the actual revenue collected in FY09-10
recorded in the Edison system. The amount of $1,114,500 is the
budgeted revenue projection for FY10-11. The budget projections are
prepared a year in advance utilizing the most current information
available. The majority of DOC grants are not annual grants, but have a
grant period over multiple fiscal years. The funds remaining at the end of
each fiscal year are carried over into the next fiscal year until the grant
ends.
329.04 State Prosecutions $18,731,600 $0 ($18,731,600) -100.0% Expenditures of $18,731,600 were State Fiscal Stabilization Funds
(SFSF) that were used to offset the non-recurring budgeted state
appropriations.
329.22 Hardeman County Agreement - $28,177,000 $0 ($28,177,000) -100.0% Expenditures of $28,177,000 were State Fiscal Stabilization Funds
Whiteville (SFSF) that were used to offset the non-recurring budgeted state
appropriations.
Economic and 330.01 Administrative Services $189,000 $135,500 ($53,500) -28.3% No actual reduction in federal revenue. In FY09-10, approximately
Community Development $82,500 in revenue was recorded in 330.01 which should have been
recorded in 330.04 and 330.07. No reduction in programs.
Education (K-12) 331.02 Grants-In-Aid $4,906,200 $3,674,100 ($1,232,100) -25.1% All funding in this item reflects State Fiscal Stabilization Funds (SFSF).
Save the Children received $1,000,000 in federal funding in FY09-10.
This was funded in an equal amount in FY10-11 by non-recurring state
funds. Public Television received $3,036,800 in SFSF in FY09-10 and
$2,786,800 in FY10-11. State funding for Public Television brings the total
in each year to: $3,286,800 in FY09-10 and $3,536,800 in FY10-11.
Therefore, no reduction in programs.
Page 3
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
University of Tennessee 332.15 UT Institute for Public Service $699,900 $463,500 ($236,400) -33.8% Loss of State Fiscal Stabilization Funds (SFSF). This has resulted in
System position eliminations and reductions in training and technical services to
Tennessee manufacturers and community leaders.
332.16 UT Municipal Technical Advisory $151,200 $132,300 ($18,900) -12.5% Loss of federal State Fiscal Stabilization Funds (SFSF). This has resulted
Service in position eliminations and reductions in training and technical services
to Tennessee's 347 municipalities.
332.17 UT County Technical Assistance $118,700 $49,100 ($69,600) -58.6% Loss of federal State Fiscal Stabilization Funds (SFSF). This has resulted
Service in position eliminations and reductions in training and technical services
to Tennessee's 95 counties.
332.25 UT Agricultural Experiment $9,509,800 $7,116,800 ($2,393,000) -25.2% Loss of federal State Fiscal Stabilization Funds (SFSF). This has resulted
Station in position eliminations and reductions in training and technical services
to farmers, agribusiness, families, and communities in each of
Tennessee's 95 counties.
332.26 UT Agricultural Extension $11,114,400 $9,883,200 ($1,231,200) -11.1% Loss of federal State Fiscal Stabilization Funds (SFSF). This has resulted
Service in position eliminations and reductions in research in areas vital to
Tennessee agriculture and agribusiness, and conducted at UT
Experiment Stations in each of Tennessee's three grand divisions.
332.40 UT Chattanooga $7,183,300 $4,921,200 ($2,262,100) -31.5% Loss of federal State Fiscal Stabilization Funds (SFSF). This has resulted
in position eliminations and reductions to administration, student services,
and campus operations. Part of the funding has been offset through
tuition increases.
332.44 UT Martin $5,077,200 $3,066,000 ($2,011,200) -39.6% Loss of federal State Fiscal Stabilization Funds (SFSF). This has resulted
in position eliminations and reductions to administration, student services,
and campus operations. Part of the funding has been offset through
tuition increases.
Page 4
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
State University and 332.53 Southwest Tennessee $6,331,400 $31,400 ($6,300,000) -99.5% The $6,331,400 in FY 09-10 was ARRA federal stimulus funds. In FY10-
Community College Community College 11, these funds were reallocated to K-12 at the state level and replaced
System with non-recurring state appropriations. The $31,400 in FY10-11 reflects
the ARRA carryforward funds from FY09-10. The $6,300,000 difference
is the result of the reallocation of non-recurring federal ARRA stimulus
funds. No impact on programs.
332.55 Pellissippi State Community $5,370,100 $1,097,100 ($4,273,000) 79.6% The FY10-11 total of $1,097,100 includes $85,000 in federal grants and
College contracts and $1,012,032 in unspent ARRA funds. The difference in
federal funding is due to a reduction in ARRA revenue. No impact on
programs.
332.65 ETSU College of Medicine $4,483,800 $1,683,100 ($2,800,700) -62.5% One-time ARRA funding, mostly spent in FY09-10. Since all ARRA for
FY10-11 was moved to one time state appropriation, the FY10-11
represents the unspent funds from prior years. No impact on programs.
332.67 ETSU Family Practice $413,100 $124,000 ($289,100) -70.0% One-time ARRA funding, mostly spent in FY09-10. Since all ARRA for
FY10-11 was moved to a one-time state appropriation, the FY10-11
represents the unspent funds from prior years. No impact on programs.
332.70 Austin Peay State University $7,471,400 $2,342,900 ($5,128,500) -68.6% APSU received and spent a large portion of the allocated federal stimulus
funding for FY09-10. While there was a small amount of ARRA
carryforward for FY10-11, this, plus the fact that the state removed the
FY10-11 ARRA allocation and replaced it with SFSF funds, are the
reasons the federal allocation was decreased. No impact on programs.
332.72 ETSU $11,702,500 $6,565,200 ($5,137,300) -43.9% One-time ARRA funding, mostly spent in FY09-10. Since all ARRA for
FY10-11 was moved to a one-time state appropriation, the FY10-11
represents the unspent from the prior years. No impact on programs.
Page 5
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
332.74 University of Memphis $20,938,400 $14,967,900 ($5,970,500) -28.5% One-time ARRA funding. No impact on programs.
332.75 MTSU $16,758,300 $12,642,400 ($4,115,900) -24.6% MTSU analyzed the drop in federal revenue and determined that it is
mainly due to the expenditure of ARRA funds. They spent the majority of
ARRA funds in FY09-10 and only carried forward funds already
committed to capital projects into FY10-11. No impact on programs.
332.77 TSU $12,565,500 $2,718,800 ($9,846,700) -78.4% The decline in federal funding for Tennessee State University is due to
the expenditure of most of the ARRA funds in FY09-10. TSU expended
$11,660,267 in federal stimulus funds in FY09-10. No impact on
programs.
332.78 Tennessee Tech $10,292,000 $3,268,900 ($7,023,100) -68.2% This reduction is the decrease in ARRA funds from FY09-10 to FY10-11.
There is a slight decrease in estimated Federal Indirect Cost revenues.
No impact on programs.
332.80 Chattanooga State Community $2,815,700 $1,756,300 ($1,059,400) -37.6% Chattanooga State's allotment of ARRA funds totaled $4,381,200.
College Chattanooga State spent $2,751,705 of the SFSF funds in FY09-10.
These funds were mainly spent on salaries and benefits, with $50,000
spent on scholarships. For FY10-11, Chattanooga State spent
$1,104,837 on salaries and benefits. The remaining $520,000 is to fund
the IMC redesign (capital project). No impact on programs.
Page 6
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
332.81 Cleveland State Community $1,263,200 $531,300 ($731,900) -57.9% Cleveland State Community College did not spend ARRA funds in FY08-
College 09. These funds in the amount of $531,300 were carried forward
to FY09-10. Cleveland State spent the majority of the funds allocated in
FY09-10 and the carry forward funds on an employee buyout,
closing the Vonore Site, and some equipment. The funds budgeted for
FY10-11 were carryover funds from 2009-10. The majority of this
amountis being spent on the modernization of science labs. No impact on
programs.
332.82 Columbia State Community $2,265,000 $33,500 ($2,231,500) -98.5% Columbia State spent the largest part of the ARRA funds by July of 2010.
College The carryforward for the FY10-11 year was approximately $18,100. No
impact on programs.
332.84 Dyersburg State Community $1,167,500 $457,400 ($710,100) -60.8% The $710,100 decline in federal funding between FY09-10 and FY10-11
College is $680,000 in ARRA funds due primarily to the change in non-recurring
appropriations and $30,100 in other funds. No impact on programs.
332.88 Motlow State Community $1,913,800 $14,900 ($1,898,900) -99.2% Motlow State used the majority of ARRA funds in FY09-10 for a Voluntary
College Buy-Out Plan. Therefore, in FY10-11, there was only a small remaining
balance of ARRA funds. The funds that were originally designated as
ARRA for FY10-11 were changed to unrestricted state appropriations.
Motlow State has no ARRA funds to carryforward into FY11-12. No
impact on programs.
332.90 Roane State Community College $3,167,300 $228,200 ($2,939,100) -92.8% Roane State's reductions were due to a decrease of $3,106,000 in ARRA
funding and an increase of $167,200 in federal indirect cost revenue due
to the receipt of a large federal grant. No impact on programs.
332.94 Volunteer State Community $1,892,200 $1,545,700 ($346,500) -18.3% The variance for Volunteer State is primarily due to ARRA scholarships
College awarded. No impact on programs.
Page 7
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
332.96 Walters State Community $2,114,700 $548,800 ($1,565,900) -74.0% The difference is due to a $1,500,000 reduction in ARRA funds and a
College $50,000 reduction in indirect cost recoveries. No impact on programs.
332.98 Tennessee Technology Centers $7,297,500 $1,838,800 ($5,458,700) -74.8% It appears that the difference for the TTCs is the changing of ARRA
funding to non-recurring state appropriations. The balance represents
Perkins funding. No impact on programs.
Commerce and 335.07 Fire Service and Codes $49,700 $25,000 ($24,700) -49.7% Decrease is due to timing issue with federal fiscal year versus state fiscal
Insurance Enforcement Academy year. The academy receives $28,000 in federal grants annually for
training services. When training is provided can also impact the timing of
funding. There is no impact on training services.
Labor and Workforce 337.07 Workforce Development $106,590,000 $87,813,300 ($18,776,700) -17.6% The adult program to assist unemployed/underemployed with career
Development planning and job search has experienced a 12.6 percent decrease in
funding. The youth program, which assists disadvantaged youth ages 14
to 21 with employment counseling and assistance, has experienced a 13
percent decrease in funding. The dislocated worker program has
experienced a 17.8 percent decreae in funding. This program assists
people who have lost their jobs through no fault of their own. The Senior
Community Service Employment Program has experienced a 20.8
percent reduction. There is a reduction in services; however, the
Department of Labor and Worforce Development indicates that data on
precise numbers of people served in 2010 will not be available until
October 2011.
337.10 Employment Security $73,863,000 $63,900,400 ($9,962,600) -13.5% Decrease is due to offsetting budgeting of federal Reed Act dollars which
are accounted for as current services in the State budget rather than
federal revenue. Increasing current services revenue negatively impacts
the amount that may be budgeted as federal. No impact on the
employment security program.
Page 8
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
Mental Health 339.03 Community Alcohol and Drug $37,564,200 $33,086,400 ($4,477,800) -11.9% Funding for Access to Recovery for persons with substance abuse
Abuse Services disorders. The state was not chosen to receive an additional grant for this
purpose. Treatment services have been reduced due to the reduction in
funding.
339.11 Middle Tennessee Mental $2,402,700 $2,121,800 ($280,900) -11.7% Funding for Medicare recipients was reduced. Services to Medicare
Health Institute recipients (days of service provided) have been reduced at this facility.
339.12 Western Mental Health Institute $3,152,200 $2,108,500 ($1,043,700) -33.1% Funding for Medicare recipients was reduced. Services to Medicare
recipients (days of service provided) have been reduced at this facility.
Military 341.09 TEMA Disaster Relief Grants $23,322,400 $5,000,000 ($18,322,400) -78.6% Each year, $5,000,000 is budgeted for disaster relief. In FY09-10, the
amount of disaster relief grants increased as needed. No impact on
programs.
Health 343.03 Administrative Services $3,783,200 $1,165,900 ($2,617,300) -69.2% According to the Department, closing FY09-10 proved to be difficult due
to Edison system problems and time constraints placed on the closing
process. Therefore, the Department over-collected federal revenue
estimates in FY09-10 by not redistributing these funds to affected
divisions. This method of revenue collection did not harm any of the
Department's federal programs. With a better understanding of the
closing process in Edison, the Department plans on redistributing these
funds to affected programs in FY10-11.
343.09 Division of Animal Welfare $99,200 $29,900 ($69,300) -69.9% The Division of Animal Welfare was established to be funded solely
through dedicated fees from the licensure and regulation of commercial
breeders. However, in the Division's first year, the program received
SFSF/ARRA funds. In FY09-10, the Division purchased needed
equipment and vehicles from the $99,200 set aside for this purpose.
However, the program did not spend the entire amount of federal revenue
and requested that $29,900 be carried over into FY10-11 for this purpose.
The reduction in federal funding was anticipated and did not affect the
program.
Page 9
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
343.10 Health Related Boards $4,300 $0 ($4,300) -100.0% The actual number shown is an error the Department attempted to
correct during the closing process. However, this could not be
accomplished with the time constraints of closing. Therefore, the
Department corrected this item through the Edison journal process in
FY10-11. No programs were affected in this process.
343.52 Community and Medical $14,487,900 $11,155,600 ($3,332,300) -23.0% The decrease can be identified in two parts. First, the Bio-Terrorism
Services Hospital Preparedness grant was reorganized to another division within
the Department in FY10-11. In FY09-10, Community Medical Services
collected $6,064,500 in federal revenue for this purpose. Second, the
Department anticipates increased federal expenditures in FY10-11 of
approximately $3,000,000 for several existing grant programs and federal
carryover funds from the U.S. Economic Recovery Act. There is no
impact on these programs.
Human Services 345.13 Child Support $35,851,300 $31,897,500 ($3,953,800) -11.0% Prior to 2005, incentive funds could be used as matching funds to draw
down federal funding. The ARRA bill allowed this again in FY09-10, and
recorded incentive funds as federal. In FY10-11, incentive funds were
reported as "other" or "current services." There is no impact on the
program.
345.20 Child Care Benefits $189,149,000 $168,139,000 ($21,010,000) -11.1% ARRA funding was used for one-time expenditures for system upgrades
and improvements. No impact on program.
345.30 Family Assistance Services $121,527,200 $83,679,500 ($37,847,700) -31.1% ARRA funding was used for one-time expenditures for system upgrades
and imporvements. No impact on program.
Revenue 347.11 Information Technology $3,100 $0 ($3,100) -100.0% According to the Department of Revenue, the funding is paid by the IRS
Resource Division to the Department's Atlanta office. The funding is approved year-to-year
and is expected to be an amount of at least $3,100 in FY10-11 and FY11-
12. No impact on programs.
Page 10
Report on Federal Funding Reductions Pursuant to Tenn. Code Ann. § 3-7-110(a)
Prepared by Fiscal Review Committee Staff
Department Item Division FY09-10 FY10-11 (Decrease) Change Comments
Safety 349.01 Administration $2,600 $0 ($2,600) -100.0% Funding for administrative staff travel associated with the Commercial
Driver License grant in FY09-10. Revenue was projected under the Driver
License Division but the expenditure took place under Administration. No
impact on programs.
Children's Services 359.10 Administration $16,313,700 $6,397,500 ($9,916,200) -60.8% Reduction is non-recurring federal Title IV-E revenue from expenditures
associated with the Statewide Automated Child Welfare Information
System project for milestones met by contract vendor. No impact on
programs.
359.35 Needs Assessment $170,300 $0 ($170,300) -100.0% Reduction is from Social Service Block grant revenue transfer from DHS
to DCS in FY09-10 to help meet reversion requirement. No impact on
programs.
Transportation 451.00 Highway Maintenance $5,600 $0 ($5,600) -100.0% One-time specific project funding in FY09-10. No impact on programs.
480.00 State Highway Construction $727,368,800 $534,368,000 ($193,000,800) -26.5% Fluctuations in federal funding are normal for highway construction.
Funding for ARRA projects in FY09-10 decreased in FY10-11. There will
be no reduction in services.
Page 11