Tennessee Moves Closer To Spending Full $3.7B Allocation In Federal ARPA Funds

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The Center Square [By Jon Styf] –

Tennessee has committed to spending $3.4 billion of the $3.7 billion allocated to the state under the American Rescue Plan Act.

The latest proposals for the nearly $300 million in remaining ARPA funds include $58.8 million for three projects including a digital pension system revamp from the Department of Treasury, $32.3 million for a Tennessee State Food and Animal Services Center and $5 million to upgrade equipment and systems at Department of Agriculture labs.

Tennessee officials spent $2.36 billion of the federal CARES Act funds allocated for the state for economic relief from the COVID-19 pandemic.

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The projects were presented to the state’s Financial Stimulus Accountability Group and are still under consideration. If all were approved, nearly $202 million would remain for the state to assign.

The Department of Treasury’s largest request is $51.3 million for what it calls Project ARIS to find and then implement a new system to administer the state’s pension system. The department currently uses a program called Concord.

“With emerging technologies, legislative requirements, and increased operational demand, TCRS and Treasury Information Systems realizes risks with Concord and necessity to pursue opportunities in updating or replacing,” the proposal reads. “This project will analyze and outline target state product requirements, evaluate product viability and vendor options, and implement the decided course.”

Treasury is also requesting $4 million for informational systems upgrades and infrastructure to maintain remote connectivity at the highest level starting with $2.7 million to make work stations and servers work better in a virtual work environment.

It is also requesting $3.3 million for new applications and data visualization tools.

The new Tennessee State Food & Animal Services Center will include 60,000 square feet in three new facilities including a Food and Animal Sciences building with 14 research labs that will house research, academic, and extension programs.

It will also include a center for Food Safety and Process Innovation and a Sensory Science and Product Development Center that will include test kitchens, sensory booths, sensory panel suites and incubation suites.

The bulk of the state’s already assigned $3.4 billion in ARPA spending came in what the FSAG called the Tennessee Resiliency Plan, which assigned $3.1 billion in spending with $1.85 billion of it going to sewer, water and broadband expansion work. Then $628 million was assigned to improve local and state public health facilities and $624 million for the economic recovery of businesses.

An important part of the process for Tennessee was taking on meaningful projects while aiming at spending on items that would have otherwise required state funds and projects that would not require ongoing spending after the ARPA and CARES Act funds.

“The funds that we are receiving are one-time funds, and we are working to make sure they are paid on one-time expenses,” Tennessee Department of Finance and Administration Commissioner Butch Eley said while introducing the resiliency plan in the fall.

The group recently assigned $230 million in health care grants, which will prioritize rural hospitals and projects that will affect prioritized by community need. There should be a full rollout of applications for the grants should happen by June with awards coming in about January.

ARPA funds must be assigned to projects by 2024 with the spending completed by 2026.

About the Author: Jon Styf, The Center Square Staff Reporter – Jon Styf is an award-winning editor and reporter who has worked in Illinois, Texas, Wisconsin, Florida and Michigan in local newsrooms over the past 20 years, working for Shaw Media, Hearst and several other companies. Follow Jon on Twitter @JonStyf.

2 thoughts on “Tennessee Moves Closer To Spending Full $3.7B Allocation In Federal ARPA Funds

  • May 31, 2022 at 7:54 pm
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    TENNESSEE REALLY NEEDS TO SEND THAT MONEY BACK. THEY ARE TURNING OUR STATE OVER TO THE FED. WE WILL NOT BE FREE MUCH LONGER IN THIS STATE. THE GOV. REALLY NEEDS TO GET OUT OF OFFICE AND WHO EVER IS BACKING HIM.

    Reply
  • June 18, 2022 at 7:08 pm
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    Agreed, John S.
    Lee is committed to doing all he can to flip Tennessee into a purple-battle-ground-state then push for Blue.
    I’d have to move to Florida to vote for a Tax-Paying-Citizens-Governor .
    Lee’s pursuit of federal funds is appalling & embarrassing.
    Also lok at the Memphis Blue Oval build out special tax funded doomed Ecar/battery site.
    Hey, Billy are u going to build more coal fired plants to charge up all those environmentally hazardous waiting to explode batteries.
    Billy is anyone in your socialist cabinet reviewing options to switch state & county vehicles to compressed gas fuel.
    Currently looking at moving lock-stock & company to Florida panhandle

    Reply

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