Republican lawmakers vacate full Tennessee State University board over Democratic objections

House GOP leadership ask Tennessee comptroller to review Nashville's federal COVID-19 relief spending

Natalie Allison
Nashville Tennessean

A week after Gov. Bill Lee wrote to Nashville's mayor criticizing his management of federal coronavirus relief funding, Tennessee's House speaker is now seeking to take the city's leader to task, prompting Democrats to call the effort a "witch hunt."

House Speaker Cameron Sexton, R-Crossville, on Thursday wrote to the state comptroller of the treasury, Justin Wilson, asking that his office conduct a "thorough review" of how Nashville has spent federal COVID-19 relief money.

In the letter, Sexton noted how Mayor John Cooper, despite receiving $121 million in direct federal funding to help with pandemic-related expenses, recently asked Lee for $82 million from the state's share of federal aid.

The letter was also signed by other members of House Republican leadership.

"Despite this significant federal funding allocation, recent reports suggest Nashville is one of the slowest recovering municipalities in the entire nation," Sexton said. "It is evident that part of the city's current economic struggles are the result of policies put in place by local officials, which have slowed business recovery efforts."

Nashville Mayor John Cooper delivers the State of Metro Address from the Council Chambers at the Metro Courthouse Tuesday, March 31, 2020 in Nashville, Tenn.

Sexton, critical like Lee of Nashville moving much slower than the rest of the state to dial back coronavirus-related business restrictions, was referencing the Opportunity Insights economic tracker that ranked Nashville having the highest decrease in consumer spending compared to January, a 33.6% drop.

Lee noted the ranking at a recent news briefing.

In a statement Friday, Cooper's spokesperson Chris Song noted that "every dollar" of the city's allocation of federal relief funds has been approved by the Metro Council, and business leaders on Nashville's COVID-19 Financial Oversight Committee have provided recommendations on distribution.

"We welcome the comptroller’s audit," Song said. "Metro has established an independent committee of business leaders that has set a standard for cities and states across the nation in the spending and allocation of CARES Act funds."

Song called the committee a "national model for matching need with scarce resources" through a "transparent, equitable, people-first process."

He added that Nashville's federal relief funds have been used to "address the greatest need in our community," such as assisting residents with food and housing, job placement assistance, and supporting small businesses.

House Democratic Caucus Chairman Mike Stewart, D-Nashville, fired back at the request for a review.

"This is a transparent effort by Republicans to use state money to push a political agenda," Stewart said. "They know that Nashville has responded appropriately to the deadly COVID-19 pandemic and that this contrasts with the slow, half-hearted response by Republicans at the state and national level. 

"Instead of starting a witch hunt into non-existent issues, Governor Lee and other Republicans should be coming to the table to create ways to help get this virus under control and get everyone back to work permanently."

In an interview afterward, Sexton countered that the state can't hand out "blank checks" and "bailouts for mismanagement."

"I think spending $20 million on hazard pay when they're not giving businesses any money is kind of a red flag on priorities," Sexton said of Nashville.

Asked if he had any concerns about the state's management of federal relief money by handing out various no-bid contracts pursuant to Lee's emergency orders, Sexton said he believed the governor had handled it well. 

He also said if the state is going to give any additional money to a city such as Nashville, they need to distribute it to other places as well.

"We can't just give it to them solely," Sexton said. "That’s a slap in the face to Memphis and Knoxville and Chattanooga and Paris, Tennessee."

In the letter, Sexton also suggested that the federal Coronavirus Relief Fund dollars the city received may have "further contributed to Nashville's sluggish economic recovery process." He also pointed out that Nashville received $10 million in state grant funding through the budget passed this summer.

Cameron Sexton begins his first day as House speaker on Tuesday, Jan. 14, 2020.

John Dunn, spokesman for Wilson, said Friday the comptroller's office had already begun working on gathering and reviewing the information requested. They'll provide a report to Sexton's office upon completion.

Dunn said the review process requires less time and resources than a formal audit. Doug Kufner, spokesman for Sexton, said Friday they anticipate the review will be complete in a couple weeks.

Sexton told the comptroller's office the review was necessary in order to provide legislative members "reliable data and an adequate explanation" of Nashville's coronavirus relief spending.

Lee declined Cooper's initial request for a portion of the state's federal funds, instructing the mayor to first spend the remainder of Nashville's unallocated relief dollars to help the city's small businesses.

He said he expected to meet with Cooper, though as of Wednesday said that had not yet occurred.

Reach Natalie Allison at nallison@tennessean.com. Follow her on Twitter at @natalie_allison.

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