In Unusual Move, State To Sell Bonds for Incentive Package

Tennessee will take an unusual step to pay for the incentive package which helped lure the new Hemlock Semiconductor plant to Clarksville.

Finance Commissioner Dave Goetz says the state will go to the bond market to raise $92 million dollars to fund the incentive package.

Goetz says many states sell bonds for economic purposes. It’s just been something Tennessee has never done. Usually the state pays for such packages out of its operating cash.

“This is a change in policy, and so, you know, I mean, this is … subject to a good discussion, but we believe it’s the best course to take.”

This year the budget is under such pressure that the money for incentives could only come out of the Rainy Day Fund, which is supposed to be for emergencies.

Goetz says the state needs to move quickly to recoup money already spent and to be sure to close out accounts properly by the end of the fiscal year.

Authorization to sell bonds must be approved by the General Assembly.

The state of Tennessee committed about $100 million in infrastructure development for the Hemlock site. The Clarksville plant expected to employ about 500 people.