Tennessee Investment in Student Achievement (TISA)

Plain English Breakdown

The official source material does not specify exact details on how infrastructure stipends are calculated beyond mentioning square footage and student growth.

Tennessee Investment in Student Achievement (TISA) Funding

This bill changes how Tennessee allocates education funding, focusing on real-time enrollment data for continuous adjustments throughout the year.

What This Bill Does

• Requires the Department of Education to create rules for direct allocation amounts based on square footage needed per student.
• Establishes a process for local education agencies (LEAs) to provide real-time enrollment data, allowing funding adjustments continuously throughout the year.
• Changes infrastructure stipends to be based on both student growth and classroom space needs.
• Ensures that charter school students receive their state funding no later than when LEAs are required to pay them.

Who It Names or Affects

• Local education agencies (LEAs) in Tennessee
• Charter schools in Tennessee

Terms To Know

Direct allocation amounts

The specific funding given to local education agencies based on the needs of their students.

Infrastructure stipend

Additional funds provided to schools for infrastructure improvements, especially when there is significant student growth.

Limits and Unknowns

• The bill does not provide specific funding amounts; it requires future appropriations.
• It applies only if the bill becomes law and receives necessary funding from the state budget.

Official Summary Text

TISA FUNDING ALLO
CATIONS

Under present law, f
unding allocations made pursuant to
state law regarding base funding, weighted allocations, and direct allocations under the Tennessee Investment in Student Achievement Act (TISA)
are based on data collected for an LEA during
the immediately preceding school year.

Beginning with the 2025-2026 school year and applying to subsequent school years, this bill requires, instead, that the
department promulgate rules to set the direct allocation amounts generated pursuant to this
bil
l.
Before the department begins the rulemaking process, the department
must
submit the proposed direct allocation amounts to the state board. The state board
must
issue a positive, neutral, or negative recommendation for the proposed direct allocation am
ounts. The state board's recommendation for the proposed direct allocation amounts must be included in the filing of the rule with the office of the secretary of state.

This bill provides that d
irect allocation amounts under this
bill
are generated bas
ed on the amount of square footage of classroom space needed for a student. For the 2025-2026 school year, the direct allocation amounts must be based on the formula that was used to calculate the basic education program allocations for capital outlay an
d
cost of operations adjustments in the 2022-2023 school year, adjusted for the rate of inflation.

This bill provides that f
unding allocations made pursuant to this
bill
are based on data collected for an LEA during the immediately preceding school year a
nd real-time enrollment reports that LEAs submit to the department. The department
must
establish a process for all LEAs to provide real-time enrollment data to the department. Funding allocations must be adjusted continuously throughout the year in resp
onse to the real-time funding reports.

FAST-GROWTH STIPENDS

Present law provides that the
infrastructure stipend is a per-student flat dollar amount based on the number of member students in non-virtual schools in the LEA for the current school year in
excess of a
2
percent ADM growth in non-virtual schools from the prior year.

This bill provides, instead, that the
infrastructure stipend is a dollar amount based on the number of member students in non-virtual schools in the LEA for the current school y
ear in excess of a
2
percent ADM growth in non-virtual schools from the prior year and the amount of square footage of classroom space needed for such member students, based on the formula adopted under
this bill
, in relation to the LEA's total student pop
ulation and school building square footage.

DISTRIBUTION OF FUNDS

Present law requires the
commissioner
of education
and each local government
to
distribute allocated education funding periodically throughout the school year according to a schedule esta
blished by the commissioners of education and finance and administration, subject to all applicable restrictions prescribed by law.
This bill adds that t
he distribution schedule must provide that allocations of education funding to LEAs for the state's pe
r student funding for charter school students are made no later than the date by which LEAs are required to pay charter schools for each student.

Current Bill Text

<BillNo> <Sponsor>

HOUSE BILL 146
By Sparks

HB0146
001575
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
relative to education funding.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-3-105(f), is amended by deleting
the subsection and substituting the following:
(f)
(1) The department shall promulgate rules in accordance with the
Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to set the
direct allocation amounts generated pursuant to this subsection (f). Before the
department begins the rulemaking process, the department shall submit the
proposed direct allocation amounts to the state board. The state board shall
issue a positive, neutral, or negative recommendation for the proposed direct
allocation amounts. The state board's recommendation for the proposed direct
allocation amounts must be included in the filing of the rule with the office of the
secretary of state.
(2) Direct allocation amounts under this subsection (f) are generated
based on the amount of square footage of classroom space needed for a
student. For the 2025-2026 school year, the direct allocation amounts under this
subsection (f) must be based on the formula that was used to calculate the basic
education program allocations for capital outlay and cost of operations
adjustments in the 2022-2023 school year, adjusted for the rate of inflation.
(g) Funding allocations made pursuant to this section are based on data
collected for an LEA during the immediately preceding school year and real-time

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enrollment reports that LEAs submit to the department. The department shall establish
a process for all LEAs to provide real-time enrollment data to the department. Funding
allocations must be adjusted continuously throughout the year in response to the real-
time funding reports.
SECTION 2. Tennessee Code Annotated, Section 49-3-107(c), is amended by deleting
the second sentence in the subsection and substituting the following:
The infrastructure stipend is a dollar amount based on the number of member students
in non-virtual schools in the LEA for the current school year in excess of a two percent
(2%) ADM growth in non-virtual schools from the prior year and the amount of square
footage of classroom space needed for such member students, based on the formula
adopted under § 49-3-105(f), in relation to the LEA's total student population and school
building square footage.
SECTION 3. Tennessee Code Annotated, Section 49-3-108(a), is amended by adding
the following immediately after the existing language in the subsection:
The distribution schedule must provide that allocations of education funding to LEAs for
the state's per student funding for charter school students are made no later than the
date by which LEAs are required to pay charter schools for each student.
SECTION 4.
It is the intention of this act that:
(1) The appropriation of state funds for fast growth stipends under § 49-
3-107 is increased to ensure that students throughout this state have access to
quality education; and
(2) An amount of state funds is appropriated to fully fund fast growth
infrastructure stipends.

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SECTION 5. This act is not an appropriation of funds, and funds must not be obligated
or expended pursuant to this act unless the funds are specifically appropriated by the general
appropriations act.
SECTION 6. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to the 2025-2026 school year and subsequent school years.