Tullahoma - Subject to local approval, allocates 3.8 percent of each annual operating budget, but not less than $1.5 million, to the maintenance of streets and roads within the city limits of the City of Tullahoma. - Amends Chapter 553 of the Acts of 1903.

114th Regular Session (2025-2026) Introduced by Janice Bowling

Allocates 3.8% of Tullahoma’s annual operating budget, at least $1.5 million, each year to maintain streets and roads within the city limits, starting 2025-2026.

Placed on Senate Local Calendar for 4/22/2026

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Purpose and Intent

SB 2726, companion to HB 2663, proposes to allocate a dedicated portion of the City of Tullahoma’s operating budget to fund the maintenance of streets and roads within city limits. The measure is designed to guarantee ongoing funding for road maintenance by earmarking a minimum dollar amount and a fixed percentage of annual operating budgets, beginning with the fiscal year 2025-2026.

Key Provisions

Funding Mechanism: Adds a new Sec. 34 to Chapter 553 of the Acts of 1903.

Beginning with the fiscal year 2025-2026, 3.8% (three and eight tenths percent) of each annual operating budget of the City of Tullahoma shall be appropriated for expenditures dedicated to maintaining streets and roads within the city.
The amount shall not be less than $1,500,000 (one million five hundred thousand dollars) in any year.

Effect on City Budgeting:

The provision establishes a fixed minimum annual street/road maintenance appropriation, calculated as 3.8% of the city’s operating budget, with a statutory floor of $1.5 million.
The funding is specifically restricted to maintenance of streets and roads within Tullahoma city limits.

Severability: Contains a standard severability clause ensuring that if any provision is invalid, the remainder remains in effect.

Local Approval Requirement: The bill does not take effect unless approved by a two-thirds vote of the Tullahoma City legislative body. Approval or rejection must be proclaimed by the presiding officer and certified to the Secretary of State.

Effective date for the measure’s approval process: the act becomes effective as soon as it is law, but its substantive implementation for funding requires local approval.

Affected Parties

City of Tullahoma: Primary beneficiary; the city’s annual budget will allocate 3.8% (with a $1.5 million annual floor) specifically to road and street maintenance within city limits.

Residents and Businesses in Tullahoma: Proceeds used for road maintenance aim to improve local streets, potentially affecting driving conditions, local infrastructure quality, and maintenance planning.

City Officials/Finance: Responsible for budgeting, reporting, and ensuring compliance with the 3.8% allocation and minimum floor.

Procedural and Timeline Aspects

Introduced and Filed: March 17, 2026.

First Consideration: March 19, 2026.

Second Consideration: March 23, 2026.

Current Status (as of action history): Placed on Senate Local Calendar for consideration on April 22, 2026.

Local Approval Requirement: The bill requires a two-thirds vote of the Tullahoma City Legislature to take effect. If approved, it would become law; otherwise, it does not apply.

Notes

The bill interacts with existing law (Chapter 553 of the Acts of 1903) and would amend it to codify a dedicated funding stream for municipal street maintenance in Tullahoma.

The funding approach provides budget predictability for road upkeep, subject to annual budget size and local political approval.

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