In Brief…
TennCare to restart annual income reviews post-pandemic – In the Senate Commerce and Insurance Committee, TennCare reported that it will resume its income verification process on April 1st after being suspended for three years due to the COVID-19 pandemic. TennCare says it is updating its renewal process to make it as easy as possible for enrollees to renew their plans. During the pandemic, the state received funds from the enhanced Federal Matching Assistance Program which suspended enrollment verification and prevented TennCare from removing enrollees who otherwise would have been ineligible. As a result, TennCare has record high enrollment. These federal funds will be phased out over 4 quarters in 2023 which will allow TennCare to remove ineligible enrollees.
2023 state budget outlook — The Senate Finance, Ways and Means Committee hosted the Sycamore Institute, a nonpartisan research center for Tennessee, for a presentation on the 2023 state budget projections. The presentation reviewed the historically high end-of-year budget surpluses the state has seen since 2021. The state funding board estimates that overcollections in 2023 will be around $2.6 billion more than the budgeted estimate of $19.6 billion. In 2024, surplus revenue is expected to reach $2.9 billion.
Another part of the presentation touched on Tennessee’s rainy-day fund, which is at historic highs. Just before the Great Recession, the fund had amassed about $1.1 billion before it was spent down to $422 million. Since then, the legislature has consistently replenished the fund, which is set to reach $3.1 billion in 2023. That includes both the reserve for revenue fluctuations and TennCare. The rainy-day fund alone could cover General Fund operations for a total of 62 days based on 2021 fund levels.
Legislation prohibiting irreversible medical procedures to change gender identity of child —
Legislation that would prohibit minors from undergoing irreversible and harmful medical procedures to change their gender identity is one step closer to becoming law. Senate Bill 1 was approved in the Health Committee last week. The bill seeks to ban medical interference that alters a child’s hormonal balance and procedures that remove body parts to enable the minor to identify as a gender different from their biological sex.
The legislation ensures that doctors can still prescribe hormone treatment to minors for medically necessary purposes and makes exceptions for children born with chromosomal anomalies or congenital defects. The legislation advances to the Senate Judiciary Committee.
Exploring alternative transportation funding sources — In our Senate Transportation & Safety Committee which I chair, we have presentations on programs that are currently in place in Tennessee as well as programs that are currently operating in other states. It is important for us to learn about all different types of transportation and safety issues.
Last week we had presentations by the Eastern Transportation Coalition (which Tennessee is a member) and the Reason Foundation. They presented on mileage- based user fees (MBUFs) and the voluntary pilots that are being done or have been done in a number of states. As new vehicles are significantly more fuel efficient, there will be decreased revenue from the fuel tax. Some states are projecting a 30% loss by 2030 coupled with a 50% loss of its purchasing power in the last 30 years.
There are a few states that have implemented these programs but usually in a way that their citizens have a choice. There are no bills filed that would put this in place in Tennessee and no current plans to do so.
Sexually explicit adult entertainment —
Senate Bill 3, which was approved in the Senate Judiciary Committee,
aims to protect children from being exposed to sexually explicit performances.
Under the bill, private establishments, such as bars or restaurants, that host sexually explicit shows must require patrons to show ID upon entry to ensure they are age 18 or older. Just as current law prohibits strip clubs from admitting children, this legislation would also prohibit sexually explicit adult entertainment from being performed on public property or any non-age-restricted private property where a minor could be present.
A violation of this bill would result in a Class A misdemeanor, and a second or subsequent offense would result in a Class E felony. The legislation now advances to the Senate floor to be considered by the full Senate.
