- Cash Flow Projection
State of Tennessee
Inter–Agency Cash Flow Projection, November 2015 Through April 2017
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 a 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 November 2015 through April 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 $383.1 million (plus $68.5 million premium) and a $150 million (plus $22.5 million premium) bond sale for capital projects funding, 5% coupon in November 2015 and August 2016, 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.
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.
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