Tennessee Code Title 41. Correctional Institutions and Inmates § 41-22-203

(a) The commissioner of transportation shall pay the commissioner of correction for the use of inmates employed under §§ 41-22-201 -- 41-22-204 out of the highway fund or any other fund under the commissioner of transportation's control. The commissioner of correction shall in turn, except as provided in this part, pay the moneys so received into the state treasury, where they shall be credited to the department of correction.

(b) The rate of pay shall not exceed the department of correction expenditures necessary to enable such inmates to perform the contracted labor while ensuring adequate security, plus an additional amount to be determined by the commissioners of correction and transportation for the purpose of funding § 41-22-204, but not to exceed ten percent (10%) of the amount paid by the department of transportation to the department of correction.