Local Government, General - As introduced, requires that a reduction of the allocations and distributions of certain tax and other revenues to counties and municipalities due to a population loss based on the revised populations certified by the department of economic and community development be implemented incrementally in 20 percent increments over a five-year period. - Amends TCA Title 4, Chapter 3; Title 4, Chapter 49; Section 9-16-101; Title 54, Chapter 4; Title 55, Chapter 4; Title 57, Chapter 5, Part 2; Title 57, Chapter 3, Part 3 and Title 67.

SB 2200 requires Tennessee to gradually reduce state funding to counties and municipalities that experience population declines, rather than making immediate cuts. Instead of applying the full funding reduction at once, the state must phase it in over five years with 20% reductions each year (20% in year one, 40% total by year two, etc.), until the allocation matches the new population. This applies to local governments affected by annual population certifications from the Department of Economic and Community Development. The law also mandates recalculating reductions if a jurisdiction's population rebounds during the phase-in period. The bill takes effect July 1, 2026.