Governor's innovation legacy may grow by McWhorter, Bryson efforts

ALL MEMBERS of Governor Bill Lee's Cabinet are doubtless aware that Lee's state budget recommendation for Fiscal Year 2027 must arrive the General Assembly by Feb. 1, 2026.

They are also aware that the General Appropriations Bill that emerges on Capitol Hill in winter 2026 will be the last that Gov. Lee will sign into law.

Election Day for Lee's successor is Nov. 3, 2026. The winner takes the oath of office Jan. 16, 2027, and begins the annual trek toward signing the General Appropriations Act for FY 2027.

In his 2025 State of the State Address, Gov. Lee asked, "If Tennessee has led the nation as a beacon of opportunity, security and freedom, why can’t we be the nation’s capital of innovation, too?

"Somebody is going to determine what the future looks like. That should be Tennessee," the Governor added. 

The state's now-unfolding FY27 budget cycle will directly and indirectly address the aspirations of the Governor and many Tennesseans.

Each Cabinet member has a vital role to play. Among those most engaged with the state's budget process are Jim Bryson and Stuart McWhorter.

This article highlights their roles in addressing both issues and opportunities as the Lee Administration enters its final stretch.

JIM BRYSON

Bryson currently serves as both State Budget Director and as Commissioner of the Department of Finance & Administration (F&A). He succeeded McWhorter in those roles.

As Budget Director, Bryson's responsibilities include budget development and review of strategic plans and performance standards prepared by each of the state's departments and agencies.

Bryson and F&A Chief Information Officer Kristin Darby co-chair the Tennessee Artificial Intelligence Advisory Council (the AI Council), which was created 16 months ago. VNC's AI Council coverage. 

The state's Tennessee Artificial Advisory Council Act (2024) requires the AI Council to complete and deliver a fully formed action plan not later than Dec. 31, 2028.

Interim progress reports are due each year in December. Barring an extension, the Act, itself, will self-repeal at yearend 2028.

The 24-member AI Council is directed to address the following items, at a minimum. (VNC edited list below is not rank-ordered.)

• The current state of artificial intelligence and its likely impact on this state's labor market conditions.
• How the labor market impact might reshape this state's key industries, occupations, and foundational skillsets.
• Initiatives to stimulate economic growth, create jobs, and enhance talent development in the face of AI-related changes.
• Legal regulations or policy changes needed to ensure the responsible and ethical use of artificial intelligence in this state, while protecting the rights of Tennessee citizens.
• Ways to encourage AI innovation and entrepreneurship and strategies to support workers displaced by artificial intelligence.
• Proposed policy changes related to workforce development, educational systems, and research by colleges and universities.
• An overview of goals, benefits, potential uses, and limitations of artificial intelligence systems.
• Recommended ways to promote transparency and accountability in use of AI technologies by measuring, monitoring and reporting outcomes and progress.
• Principles and values to guide artificial intelligence use in state and local governments.
• Governance framework with policies, procedures, and processes for the development, deployment, and use of AI by state and local governments.
• Evaluation of potentially beneficial use cases for deployment of AI tools and strategies by the state to improve government services.
• Risk analysis of potential threats to this state's key infrastructure from artificial intelligence technologies.
• Recommendations on how this state can support state and local government employees through the AI transition.
• Recommendations on how to position this state competitively to ensure its citizens capture full economic benefit from AI opportunities.
• Recommendations on how to responsibly leverage AI to improve the efficiency of state and local government services.

Among other speakers during the AI Council's Aug. 11 meeting was Prof. Vasileios Maroulas, associate vice chancellor and director of the AI Tennessee Initiative at the University of Tennessee Knoxville.

Maroulas reported on the AI Tennessee Initiative's large and already-growing role in the state's AI ecosystem and emphasized current and potential future synergies between the 30-month-old group's work and the AI Council's charter.

Near the end of the Council's Aug. 11 meeting, Bryson took pains to underscore the need for Council subcommittees to be extremely thorough in conveying interim results of their ongoing work, prior to Dec. 31. 

First acknowledging the astounding pace of global AI deployment, itself, Bryson urged AI Council members to "race" to get vital elements of reports and plans in front of Tennessee decision-makers.

He reminded Council members that if this year's report in December is not as complete as it can possibly be, unreported findings that require statutory and-or budget processing are unlikely to be addressed during development and passage of the FY 2027 budget.

Such a lapse, he said, could lead to side-tracking full, detailed consideration of some important findings and action proposals until 2027-28, or beyond.

Further sharpening the point, Bryson added: "We are in the waning days of the Governor's term. There are about 17 months left this term. There are several [Cabinet] commissioners on this panel who want to get things done. If we're going to do so, we need to get those things defined and established soon."

Bryson asked of Council members, "Please think about what's important that we get done now and that we must not 'put off until' or say 'Well, we can do it in six months or twelve months'. We need to do things now."

The Council is currently scheduled to meet again this year in plenary sessions Nov. 17 (first draft 2025 report) and Dec. 17 (final review). 

The entire video replay of the AI Council Meeting of Aug. 11 is online here. AI Council Home Page. VNC's previous AI Council coverage.

STUART MCWHORTER

Stuart McWhorter was Bryson's predecessor as Gov. Lee's first commissioner of Finance & Administration.

However, in 2022, Gov. Lee named McWhorter head of the state's Department of Economic & Community Development (TNECD), which brought with it the chairmanship of TNECD's de facto nonprofit subsidiary, Tennessee Technology Development Corporation dba Launch Tennessee.

Earlier this month, following his brief remarks before an informal meeting of the Nashville Innovation Alliance, McWhorter told VNC that he has for some time been very consciously stepping-up efforts to ensure continuity and momentum in maturing and value-producing programs supported by TNECD and-or LaunchTN.

McWhorter also acknowleged that his ramped-up push for continuity and acceleration of an array of programs contributed to his recent addition of Nathan Buttrey as his senior advisor and head of TNECD's Office of Innovation. Buttrey was director of corporate development for Nashville's Altitude Ventures.

McWhorter has not publicly displayed any interest in remaining at the TNECD helm for another full term, after Gov. Lee's departure.

However, when VNC recently asked whether or not he would be interested in continuing to serve with the TTDC/LaunchTN board as chairman after the Lee Administration ends, McWhorter first paused a moment to reflect, then said unequivocally that he would very much like to remain an active member of the TTDC/LTN board of directors.

Meanwhile, McWhorter and LaunchTN CEO Lindsey Cox have lots to say grace over within their closely aligned TNECD and TTDC/LTN domains. 

This recent TTDC/LTN Board packet illustrates the point. Highlights from there and elsewhere:

♦ High among LaunchTN staff priorities is the nonprofit's annual 3686 Festival and a high-profile startup pitch competition, this year at Cannery Hall in Nashville, Sept. 8-10.

♦ Soon after 3686 has ended, LaunchTN plans to disclose which group(s) it has chosen to create a regional entrepreneurship hub for the Southern Middle Tennessee. Previous coverage

♦ McWhorter also confirmed that he and Cox are actively considering how to step-up TTDC/LTN board engagement in ways that increase the nonprofit's leading role in and beyond Tennessee.

♦ VNC research indicates the LaunchTN board currently has seven board vacancies to fill. Selection of LaunchTN directors is heavily controlled by its authorizing legislation. Specialized expertise and personal fundraising capacity are typically among nonprofits' fundraising criteria when appointing directors.

♦ LaunchTN management reported during its July 17 quarterly board meeting that, incrementally over time, the team aims to fund the majority of its annual budget with non-State of Tennessee dollars.

♦ Asked about fundraising plans, LaunchTN VP-Development Emily Masters told VNC that LaunchTN is recruiting additional development staff and is "putting together a strategy for encouraging high net-worth individuals to make charitable donations" to support the 501c3. Related Nasdaq.

♦ TNECD and LaunchTN seem to have been making the most of the U.S. Treasury Department's SSBCI 2.0 funding of roughly $117MM for the lending and capital investment programs they administer side-by-side.

♦ The InvestTN side administered by LaunchTN now has a portfolio of 40 companies showing. That effort is managed by Eller Kelliher. Kelliher recently reported to the LaunchTN board that InvestTN had achieved a 7:1 current leverage ratio, reflecting traction in mobilizing private capital. Under the FundTN umbrella, a $40MM debt (loan) program administred by TNECD and backed by SSBCI is managed by five Community Development Financial Institutions (CDFIs).

♦ Technology Advancement Director Charles "Chuck" Layne leads LaunchTN's strategic innovation initiatives and commercialization programs. Last month, he updated the board on Federal funding authorizations and related initiatives.

♦ Simultaneously, LaunchTN is receiving responses to its RFP that invites proposals from qualified vendors to design, develop, and deploy the Tennessee Innovation Exchange (TNIX), a searchable digital platform that connects startup and industry partners with research and innovation assets at Tennessee research institutions.

♦ Last month, TNECD formally launched its Innovation and Research for Industry Success (IRIS) Grant Program, which Gov. Lee said is meant to signal that the "Volunteer State is the new frontier for America's greatest innovators." IRIS builds upon the state's 2023 Transportation Network Growth Opportunity (TNGO). The stated goal: Demonstrating that Tennessee is "a great place for companies to research, test and build for the future right here in their own backyard." Related.

♦ As proposed by Gov. Lee in early 2023 and initially budgeted for FY24, TNECD plays an administrative role in optimizing use of the $50MM Tennessee Nuclear Energy Supply Chain Investment Fund, which is linked to TNECD and strategically aligned with the Tennessee Nuclear Network (T2) within the East Tennessee Economic Council. ETEC says, "The high-tech innovation hub positions Tennessee to lead in enabling nuclear energy, Artificial Intelligence, and quantum computing."

♦ TNECD is also ramping-up a bit in the Aerospace and Defense sector, which has, according to TNECD, emerged as one of the state's strongest industries, with approximately 2,900 new jobs created and more than $575MM invested during the Lee administration. McWhorter has indicated he views this as fertile territory for further development. 

♦ The Lee Administration also recently highlighted its pursuit of U.S.- and ex-U.S.-based industrial prospects, and vowed to continue and possibly expand such pursuits. The state has long enjoyed renown as a leader in competition for employment generated by foreign direct investment (FDI) in Tennessee.

NOTES

The Governor's public annual budget reviews with individual Cabinet members have not yet been scheduled, but, in keeping with tradition, they are likely to convene this year during October-November. 

Watch Gov. Lee's YouTube message on Tennessee's opportunity to lead through innovation. Bill Lee via Wikipedia.

TN Innovation resources: ITIF | 2025 Innovation Report | RTI's 2023 Report | TN 2006 Innovation Roadmap | New Economy Strategies | Milken Institute | Brookings Institution | Panoramic | Kauffman | TNGO Initiative | TN Nuclear Energy Report | TNBIO report | TTDC LaunchTN Reports | White Housee AI Action plan.  

Since 1997, TTDC/LaunchTN's original legislation and its periodic sunset reviews have reaffirmed its existence. It was created by the Tennessee General Assembly and then-Gov. Don Sundquist. VNC

. last edited 1630 27 August 2025