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State and Local Finance

The Office of State and Local Finance manages the financial functions of state and local governments.

Major functions of the Office of State and Local Finance include:

  • Managing the state’s debt programs; and
  • Providing assistance, oversight, and review for certain debt issuances, budgets, and investments of local governmental entities.

 The Office of State and Local Finance serves as staff to the following boards:

The State Funding Board (SFB) is the entity authorized to issue all general obligation debt that has been approved by the General Assembly. As a part of the state’s budget process, the SFB develops consensus ranges of estimates of state revenue for the current fiscal year and the next succeeding fiscal year to be presented to the Governor and the Chairs of the Senate and House Finance, Ways and Means Committees. The SFB is also charged with the establishment of policy guidelines for the investment of State funds. In addition, local governments are required to submit Other Post Employment Benefit (OPEB) trust agreements to the SFB for approval.

The Tennessee Local Development Authority (TLDA) is authorized to issue bonds and provide loans to:

  • Local governments for sewage treatment, waterworks and capital projects, firefighting equipment, and airport facilities;
  • Certain small businesses for pollution control equipment;
  • Agricultural enterprises;
  • Not-for-profit organizations that provide certain intellectual disability, alcohol, and drug services; and
  • Local government units for financing construction of capital outlay projects for K-12 educational facilities.

TLDA also approves loans through the Clean Water and Drinking Water State Revolving Fund Loan Programs. Additionally, TLDA is responsible for the approval of loans to local governments from the Transportation State Infrastructure Fund, a $2 million revolving loan fund for transportation infrastructure projects throughout the state. Loans from the State Infrastructure Fund are administered in conjunction with the Tennessee Department of Transportation. 

The Tennessee State School Bond Authority (TSSBA) is authorized to issue bonds and notes to finance higher education facilities projects for the universities under the University of Tennessee system and other state universities as well as for the state community colleges and colleges of applied technology. In addition, TSSBA is authorized to issue debt to provide funds for the making of student loans by the Tennessee Student Assistance Corporation.

State and Local Finance Leadership

Sandra N. Thompson (Bio) Director 615.747.5380
Sheila Reed Assistant Director,
Local Finance 615.401.7906