State of Tennessee
Inter–Agency Cash Flow Projection, May 2016 Through October 2017

CASH FLOW METHODOLOGY AND ASSUMPTIONS:

TCA 9-4-610 created the Tennessee interagency cash flow committee, as an interagency committee, for the purpose of establishing, compiling and maintaining an eighteen-month forward rolling cash flow projection that projects on a monthly basis all material sources and all material uses of pooled investment fund cash projected to be received and expended by the state.

This projection includes the state’s General, Special Revenue, Education, Highway, Capital Projects and Debt Service funds.  (For purposes of presentation the state’s general and special revenue funds have been combined.)  Due to the self-supporting and/or restrictive nature of the use of their resources, the state’s lottery, academic scholars, permanent, proprietary and fiduciary funds have been excluded.

The portion of cash estimated to be restricted is based on an approximate four year average.  For purposes of this projection, funds restricted represent amounts where constraints placed on the resources are either externally imposed or imposed by law through constitutional provisions or enabling legislation; and, amounts that can only be used for the specific purposes determined by the formal action of the state’s highest level of decision making authority.

State tax estimates (including licenses, fines and fees) for the months May 2016 through October 2017, are based in part on the official revenue estimates of the department of finance and administration, with monthly allocations based on historical collection patterns.

This projection assumes a $150 million (plus $22.5 million premium) and a $150 million (plus $20.0 million premium) bond sale for capital projects funding, 5% coupon in August 2016 and August 2017, respectively.

Departmental revenue and expenditure projections have been developed using a hybrid forecasting methodology, i.e. historical trending has been combined with knowledge-based forecasting in order to address new programs and non-recurring items for which there was no history to look back on.

Interdepartmental activity (including transfers) between state departments used in this projection has not been eliminated for purposes of this projection.  The net impact on the combined projected cash flows being zero.

The beginning and ending cash and investment balances are inclusive of the state’s general fund Reserve for Revenue Fluctuations (rainy day) stabilization account. 

*Unaudited

 

Interagency Cash Flow Projection Chart, May 2016 through Octoberl 2017*

Interagency Cash Flow Projection Graph, May 2016 through October 2017 (To Be Released Soon)*

*Unaudited

Updated: 11/23/2017

Cash Flow Projection Disclaimer

Tenn. Code Ann. §9-4-610(f) requires the State Treasurer to post monthly on the Treasury Department’s website the latest version of the State of Tennessee’s cash flow projection and any notes or explanatory statements accompanying such projection.  This website provides access to the electronic version of information compiled by the Interagency Cash Flow Committee regarding the cash flow projection. Your access and use of this site is subject to the following terms and conditions and all applicable laws. By accessing this site and the information contained therein, you accept these terms and conditions without limitation or qualification.

All information contained in this website is obtained from sources believed to be accurate and reliable. Due to the possibility of human or mechanical error as well as other factors, this information is provided "as is" without warranty of any kind and the State Treasurer makes no representation, express or implied, as to the accuracy, reliability or completeness of this other information, or the timeliness of any information on this website.

The information contained at this website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein. This website and the information contained herein do not constitute an offer to sell or the solicitation of an offer to buy any securities. The State currently anticipates that the disclosure documents prepared from time to time in connection with the offering and sale of securities by it may contain information updating or supplementing some of the information presented at this website. In addition, certain financial information and operating data, as well as information regarding certain material developments respecting the State and securities from time to time issued by it, may be filed with the Municipal Securities Rulemaking Board. The State in its discretion will determine whether to include such updated information on its website or to otherwise supplement, update or modify the information at this website.

The information at this website may contain statements which, to the extent they are not recitations of historical fact, constitute "forward-looking statements." In this respect, the words "estimate", "project", "anticipate", "expect", "intend", "believe" and similar expressions are intended to identify forward-looking statements. A number of important factors affecting the State and its affairs could cause actual results to differ materially from those stated in the forward-looking statements.

The information in each document or file at this website is dated as of the date or dates indicated, and the State disclaims any duty or obligation either to update the information contained at this website or to maintain the availability of such information. In addition, the State may remove any of this information from this website at any time.

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