HB 35

Present law provides that it is the intent of the state to assist financially with the development of regional plans for economic development and for coordination of activities for economic development. The board for the Memphis area association of governments, composed of the Fayette, Lauderdale, Shelby, and Tipton counties and the municipalities located within those counties, has been created as provided in the Development District Act of 1965 , and when the local governments have indicated a willingness to contribute financially by adopting a budget requiring a certain per capita assessment, the state must match the local contributions. Present law requires the local contributions to the Memphis area a ssociation of governments to be based upon, in the case of counties, an amount not to exceed 21¢ per capita based on the latest decennial census, one half of which may be contributed by local incorporated cities or by other private, public or semipublic b o dies. However, no county is required to contribute more than $12,500 annually. The aggregate of such funds may also be used for purposes of matching various federal programs of assistance for planning and development. Counties and municipalities may par ticipate independently of each other in financing the activities of the board. Cities and counties are specifically authorized to appropriate and expend funds for carrying out the purposes of this law. This bill deletes the above provisions. DEVELOPMEN T DISTRICTS Present law provides that it is the intent of the state to assist financially with the development of regional plans for economic development and other regional plans, activities, and programs authorized by the Development District Act of 196 5 and other statutes and for coordination of activities. The boards of the eight other development districts established as the First Tennessee development district, the East Tennessee development district, the Southeast Tennessee development district, t h e Upper Cumberland development district, the South Central Tennessee development district, the Southwest Tennessee development district, the Greater Nashville regional council and the Northwest Tennessee development district have been created as provided i n existing law. This bill adds a ninth development district, known as the MidSouth development district. STATE BUDGET Present law requires, when the local governments have indicated a willingness to contribute financially to the development districts by adopting a budget establishing a certain per capita assessment, the state to include in its budget under the department of economic and community development, or its state functional equivalent, a separate line item for the funding of the activities of the development districts. Any appropriations of state funds made to the development districts by the general assembly must not be reduced, except in conjunction with an across the board percentage reduction applicable to multiple state government depart m ents and agencies. This bill changes the present law and requires, instead, that this state include in its budget under the department of economic and community development, or its state functional equivalent, a separate line item for the funding of the activities of the development districts in an amount equal to 50¢ per capita based on the stat e' s latest yearly population estimate or decennial census figure, whichever is more recent, as reported by the federal department of commerce, bureau of the censu s or its federal functional equivalent. APPROPRIATIONS Present law requires the amount of state funding to each development district must be based upon the per capita assessment established by the individual development district boards. The per capita assessment and corresponding state funding levels for the nine development districts are as follows:  For a 1-5 ¢ per capita assessment, an annual state appropriation of $40,000 ;  For a 6-10 ¢ per capita assessment, an annual state appropriation of $70,000 ;  For a 11-15 ¢ per capita assessment, an annual state appropriation of $100,000 ;  For a 16-20 ¢ per capita assessment, an annual state appropriation of $150,000 ;  For a 21-30 ¢ per capita assessment, an annual state appropriation of $180,000 ; and  For a 31 ¢ and over, as may be approved by the individual development district board, an annual state appropriation of $200,000 . This bill changes the present law by requiring, instead, that the amount of state funding to each development district be based upon the per capita assessment established by the individual development district boards with any remaining funds distributed based on a formula determined by the department of economic and community development in coordination with the development districts to includ e considerations for each district's size in terms of population and the number of counties served and for regional variations in cost of living. The per capita assessment and corresponding state funding levels for the nine development districts are as fo l lows:  For a 1-20 ¢ per capita assessment, an annual state appropriation of $295,000 ;  For a 21-30 ¢ per capita assessment, an annual state appropriation of $340,000 ; and  For a 31 ¢ and over, as may be approved by the individual development district board, an annual state appropriation of $370,000 .