STATE OF TENNESSEE The Budget FISCAL YEAR 2007-2008 Volume 1 Phil Bredesen, Governor Phil Bredesen, Governor Table of Contents The Budget (more detailed contents tables appear under each tab) Introduction ....................................................................................................................................................xi Transmittal Letter, Governor Bredesen to the General Assembly...................................................... xiii Transmittal Letter, Commissioner of Finance and Administration to Governor Bredesen ..................xv Budget Highlights.............................................................................................................................. xvii The Budget Document: Introduction .................................................................................................xxix The Budget Process ......................................................................................................................... xxxii Performance-Based Budget ........................................................................................................... xxxvii Basis of Budgeting and Accounting ......................................................................................................xl Tennessee Program History............................................................................................................... xliv Budget Overview: Summary Statements and Charts..................................................................................A-1 State Tax Revenues .................................................................................................................................. A-35 Financial Statements................................................................................................................................. A-89 Capital Outlay and Facilities Program.................................................................................................... A-103 State Taxpayers Budget.......................................................................................................................... A-123 Program Statements by Functional Area.....................................................................................................B-1 Tennessee State Government Organizational Chart ...........................................................................B-3 Funds by Program Area (Pie Chart) ...................................................................................................B-5 General Government.........................................................................................................................B-13 Introduction ...........................................................................................................................B-15 Total Personnel and Funding.................................................................................................B-17 Improvements for Fiscal Year 2007-2008.............................................................................B-18 Program Statements...............................................................................................................B-26 Legislature .................................................................................................................B-26 Fiscal Review Committee ..........................................................................................B-29 Secretary of State .......................................................................................................B-30 Comptroller of the Treasury.......................................................................................B-36 Treasury Department .................................................................................................B-44 Claims and Compensation .........................................................................................B-46 Executive Department................................................................................................B-48 Human Rights Commission .......................................................................................B-49 Tennessee Regulatory Authority................................................................................B-50 Advisory Commission on Intergovernmental Relations ............................................B-51 Department of Finance and Administration...............................................................B-52 Department of Personnel............................................................................................B-62 Department of General Services ................................................................................B-65 Department of Veterans Affairs.................................................................................B-72 vii Table of Contents The Budget Program Statements (cont’d) Department of Revenue .............................................................................................B-73 Miscellaneous Appropriations ...................................................................................B-79 Emergency and Contingency Fund............................................................................B-80 State Building Commission .......................................................................................B-81 Education ..........................................................................................................................................B-83 Introduction ...........................................................................................................................B-85 Total Personnel and Funding.................................................................................................B-87 Improvements (K-12 Education and Higher Education) for Fiscal Year 2007-2008............B-88 Program Statements...............................................................................................................B-98 Department of Education ...........................................................................................B-98 Higher Education .....................................................................................................B-116 Health and Social Services .............................................................................................................B-147 Introduction .........................................................................................................................B-149 Total Personnel and Funding...............................................................................................B-151 Improvements for Fiscal Year 2007-2008...........................................................................B-152 Program Statements.............................................................................................................B-162 Commission on Children and Youth........................................................................B-162 Commission on Aging and Disability......................................................................B-163 Health Services and Development Agency..............................................................B-164 Department of Finance and Administration - TennCare Program ...........................B-165 Department of Mental Health and Developmental Disabilities ...............................B-169 Department of Health...............................................................................................B-176 Department of Finance and Administration, Division of Mental Retardation Services.......................................................................................B-189 Department of Human Services ...............................................................................B-196 Cover Tennessee Health Care Programs..................................................................B-205 Department of Children’s Services..........................................................................B-208 Law, Safety, and Correction ...........................................................................................................B-217 Introduction .........................................................................................................................B-219 Total Personnel and Funding...............................................................................................B-221 Improvements for Fiscal Year 2007-2008...........................................................................B-222 Program Statements.............................................................................................................B-229 Court System............................................................................................................B-229 Attorney General and Reporter................................................................................B-237 District Attorneys General Conference....................................................................B-239 District Public Defenders Conference......................................................................B-241 Office of the Post-Conviction Defender ..................................................................B-243 viii Table of Contents The Budget Program Statements (cont’d) Alcoholic Beverage Commission.............................................................................B-244 Tennessee Rehabilitative Initiative in Correction (TRICOR)..................................B-245