Tennessee Senators Talk State Efficiency as Blackburn Plans 'Tennessee-Style DOGE' Review

Tennessee Senators Talk State Efficiency as Blackburn Plans ‘Tennessee-Style DOGE’ Review

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As Tennessee enters its new budget cycle, Gov.-elect Marsha Blackburn is setting a clear course for state operations, signaling that a “Tennessee-style DOGE” review will be among her first acts in office.

Modeled after the federal Department of Government Efficiency, the initiative aims to scrutinize state spending, consolidate programs, and tighten procurement processes. The proposal comes at a moment when state legislators are balancing the desire for lean government against the realities of a $58 billion highway infrastructure backlog and a looming shortfall in lottery-funded scholarship proceeds.

The push for a top-down efficiency audit was a focal point during The Sycamore Institute’s annual summit this past Friday.

“Every dollar is a taxpayer dollar, and the legislators really want to work with me on this so that we’re eliminating positions that are not filled, programs that have outlived their usefulness, reviewing contracting, holding nonprofits accountable for the taxpayer money that they get,” Blackburn stated following her victory.

State Sen. John Stevens, a Huntingdon Republican and vice chair of the Senate Finance, Ways and Means Committee, emphasized that re-evaluating state practices is a perennial necessity. “Even if it isn’t a lot of money (saved) … we better be sure that what we’re taking your money and spending it on is efficient and it’s meeting your needs,” Stevens noted during the panel.

He pointed specifically to the TennCare Bureau as a candidate for technical modernization, suggesting that artificial intelligence could potentially automate document review and categorization to reduce manual labor demands.

Senate Minority Leader Raumesh Akbari, a Memphis Democrat, cautioned that such shifts must be handled with care, particularly regarding the economic stability of smaller communities where government offices serve as primary employers. “What does that do for a small town where the majority of the people work at that one government office?”

Akbari asked. “So it has to be smart, and it has to be balanced.” She reminded attendees that state departments have been operating under lean, downsized budget mandates since the administration of Gov. Bill Haslam.

The stakes for these efficiency efforts extend beyond internal payroll. Tennessee is facing significant fiscal pressure from the federal level, including new requirements under the One Big Beautiful Bill Act.

Beginning in October 2027, states that exceed a 6% error rate in the Supplemental Nutrition Assistance Program (SNAP) will face federal financial penalties. For Tennessee, the math is stark: depending on 2026 fiscal year performance, the state may be on the hook for between $162 million and $171 million in penalties, alongside increased administrative costs.

Peter Muller, a senior officer in financial risk management at The Pew Charitable Trusts, noted that states are increasingly viewing AI as a tool for accuracy rather than just a cost-cutting mechanism.

“The way the matching funds are set up, the more accurate your SNAP determinations or SNAP payments are, the lower your state’s matching rate is going to be,” Muller explained. By investing in the administration of these programs, the state aims to avoid the heavy federal penalties that loom on the 2027 horizon.

The federal precedent for these types of efficiency drives offers a complex case study. A review by the Cato Institute found that the federal DOGE initiative did not meaningfully reduce overall federal spending, as most expenditures are mandated by Congress.

While the federal government did see a 9% reduction in its workforce, a report from the Government Accountability Office highlighted that the efforts cost approximately $6.7 billion in deferred resignation payouts. Furthermore, while the federal workforce dropped by more than 258,000 since January 2025 according to federal data, agencies began backfilling thousands of those positions, illustrating the difficulty of maintaining permanent staff reductions in complex administrative environments.

Tennessee Senators Talk State Efficiency as Blackburn Plans 'Tennessee-Style DOGE' Review

For Akbari, the goal of efficiency should be measured by the constituent experience rather than just ledger totals. She pointed to the hidden costs of poverty, where navigating bureaucratic hurdles—such as taking time off work or relying on public transit to visit government offices that may lack necessary paperwork—creates a cycle of inefficiency for the public.

“If you engage in these services, you have to take time off from work. You might have to take two buses so that you can go sit in an office where they might not have the paperwork you need, and you have to repeat that process,” she said.

As the State Funding Board begins its initial economic forecast presentations, the tension between cutting costs and maintaining service delivery will define the upcoming legislative session. Whether the state can leverage technology to improve accessibility while simultaneously satisfying the mandate for a leaner bureaucracy remains the central question for the Blackburn administration.

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