S&P Global recently released its "2020 Update of Institutional Framework for U.S. Local Governments." Once again, Tennessee is one of just three states to receive an overall score of very strong across all categories.
The decisions made by the General Assembly have made it possible for Tennessee to achieve this rating. For decades, our state legislators have provided a strong legal and practical environment in which our local governments operate.
S&P Global identified some of the typical characteristics of states with a very strong framework for its local governments. These characteristics exemplify the state of Tennessee.
Tennessee ensures fiscal transparency by requiring annual audits of its local governments and by requiring compliance with Generally Accepted Accounting Principles (GAAP).
Tennessee's cities and counties are less susceptible to voter initiatives that automatically alter revenues or expenditures.
The General Assembly does not frequently mandate unfunded expenditures.
Tennessee, through the Comptroller's Office, provides support to local governments in fiscal distress and does not allow its local governments to file for bankruptcy.
The full report from S&P Global can be found below.