Official Summary Text
Present law generally requires that the funding a student generates under TISA base funding,
weighted allocations, and direct allocations must be administered and allocated by the department of education to the LEA in which the student is a member for the duration of the student's membership in the LEA. This bill adds an exception so that the st
a
te share of the funding a public charter school student generates for an LEA under TISA base funding, weighted allocations, and direct allocations must not be allocated to the LEA, but must be allocated directly to the public charter school.
This bill ap
plies to public charter schools the present law requirements for LEAs to repay school funds erroneously distributed or misappropriated or illegally expended. This bill requires the commissioner of education, in consultation with the comptroller of the tr
e
asury, to develop, revise as necessary, and prescribe a standardized system of financial accounting and reporting for all public charter schools, including appropriate forms or other documentation. This system must be designed to facilitate year-to-year
a
nd agency-to-agency comparison, as well as adequately indicating the sources and uses of all funds received by each public charter school. This bill requires the commissioner to review the fiscal public school records in all public charter schools to the
end that the expenditure of funds is properly accounted for and safeguarded. This bill authorizes the commissioner to require public charter schools that receive allocations of state education funding to comply with one or more of the requirements establ
i
shed for LEAs in present law concerning local fiscal accounting and reporting.
Present law requires a local board of education shall allocate to a charter school an amount equal to:
(1) The total of the state and local student-generated funds for memb
er students in the charter school for the prior year in alignment with the TISA;
(2) The average per pupil local funds received by the district in the current school year above those required by the TISA for each member student in the charter school in t
he prior year;
(3) The per student state and local funds received by the LEA for member students in the charter school in the current school year beyond the prior year's membership; and
(4) All appropriate allocations under federal law or regulation,
including, but not limited to, IDEA and ESEA funds.
This bill revises (1) and (2) to the following:
(1) The local student-generated funds for member students in the public charter school for the prior year in alignment with the TISA; and
(2) The ave
rage per pupil state and local funds received by the district in the current school year above those required by the TISA for each member student in the public charter school in the prior year.
This bill requires that versions of the TISA guide published
on or after the date that this bill becomes a law explain how a public charter school may dispute an alleged error in an allocation made to an LEA.
ON MARCH 6, 2025, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1019, AS AMENDED.
AMENDMENT #1
makes the following revisions:
Revises the provision requiring the TISA guide to explain how a public charter school may dispute an alleged error in an allocation to its authorizer by also requiring the guide to explain the procedures the authorizer must take.
Revises the provision requiring the state share of the funding a public charter school student generates for an LEA to be allocated directly to the public charter school to, instead, (i) be allocated to the LEA and (ii) disbursed directly to the public charter school by the department of education unless the public charter school is authorized by the Tennessee public charter school commission or by the achievement school district, in which case such funds must be disbursed to the commission or achievement school district.
Adds that all funds, federal, state, and local, generated or received by an LEA must be properly accounted for in the official financial records of the LEA. Payment of funds to a public charter school by the state on behalf of an LEA must be recorded in the LEA's financial records in the appropriate revenue and expenditure categories.
Removes the provision requiring the commissioner of education, in consultation with the comptroller of the treasury, to develop, revise as necessary, and prescribe a standardized system of financial accounting and reporting for all public charter schools, including appropriate forms or other documentation.
Removes the provision requiring the commissioner of education to review the fiscal public school records in all public charter schools to the end that the expenditure of funds, whether for current operation and maintenance purposes, capital outlay purposes, and other school purposes, are properly accounted for and safeguarded.
Removes the provision authorizing the commissioner of education to require public charter schools that receive allocations of state education funding to comply with one or more of the requirements established for LEAs, as the commissioner deems appropriate or applicable.
ON
APRIL 22, 2025, THE HOUSE SUBSTITUTED SENATE BILL 1019 FOR HOUSE BILL 1163, ADOPTED AMENDMENT #2, AND PASSED SENATE BILL 1019, AS AMENDED.
AMENDMENT #2 increases from
October, February, and June,
to
October, December, February, April, and June
, the minim
um months in which an
LEA
is required to
adjust local payments to public charter schools based on changes in revenue, student membership, or student services
.
Current Bill Text
Read the full stored bill text
HOUSE BILL 1163
By Stevens
SENATE BILL 1019
By White
SB1019
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AN ACT to amend Chapter __ of the Public Acts of 2025
(1st Ex. Sess. – SB 6001 / HB 6004); and
Tennessee Code Annotated, Title 49, Chapter 13
and Title 49, Chapter 3, relative to education
funding for public charter schools.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-3-103(d)(3), is amended by
adding the language "or public charter school" after the language "Explain how an LEA".
SECTION 2. Tennessee Code Annotated, Section 49-3-105, is amended by deleting
subsection (d) and substituting instead the following:
(d)
(1) The funding that a student generates pursuant to this section must be
administered and allocated by the department to the LEA in which the student is
a member for the duration of the student's membership in the LEA, except that:
(A) The funding a student generates pursuant to subdivision
(c)(3) must not be allocated to the LEA, but must be maintained by the
department; and
(B) The state share of the funding a public charter school student
generates for an LEA pursuant to this section must not be allocated to the
LEA, but must be allocated directly to the public charter school.
(2) A student's membership in an LEA begins on the first day of the
student's membership and ends on the last day of the student's membership in
the LEA, except that the membership of a student who graduates early is
extended to the student's expected graduation date for funding purposes.
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SECTION 3. Tennessee Code Annotated, Section 49-3-316, is amended by adding the
language "or public charter school" after the language "LEA" wherever it appears in subsection
(c) and by adding the following as a new subsection:
(f)
(1) The commissioner, in consultation with the comptroller of the
treasury, shall develop, revise as necessary, and prescribe a standardized
system of financial accounting and reporting for all public charter schools,
including appropriate forms or other documentation. This system must be
designed to facilitate year-to-year and agency-to-agency comparison, as well as
adequately indicating the sources and uses of all funds received by each public
charter school. The commissioner shall review the fiscal public school records in
all public charter schools to the end that the expenditure of funds, whether for
current operation and maintenance purposes, capital outlay purposes, and other
school purposes, are properly accounted for and safeguarded.
(2) The commissioner may require public charter schools that receive
allocations of state education funding pursuant to part 1 of this chapter or
otherwise to comply with one (1) or more of the requirements established for
LEAs in this section, as the commissioner deems appropriate or applicable.
SECTION 4. Tennessee Code Annotated, Section 49-13-112, is amended by deleting
subsection (a) and substituting instead the following:
(a)
(1) A local board of education shall allocate to the public charter school
an amount equal to:
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(A) The local student-generated funds for member students in the
public charter school for the prior year in alignment with the TISA
pursuant to chapter 3, part 1 of this title;
(B) The average per pupil state and local funds received by the
district in the current school year above those required by the TISA for
each member student in the public charter school in the prior year;
(C) The per student state and local funds received by the LEA for
member students in the public charter school in the current school year
beyond the prior year's membership; and
(D) All appropriate allocations under federal law or regulation,
including, but not limited to, IDEA and ESEA funds.
(2) The department of education shall allocate directly to the public
charter school an amount equal to the state student-generated funds for member
students in the public charter school for the prior year in alignment with the TISA
pursuant to chapter 3, part 1 of this title.
(3) Federal funds received by the LEA must be disbursed to public
charter schools authorized by the LEA by either joint agreement on shared
services by individual public charter schools or sub-grants to a public charter
school for the public charter school's equitable share of the federal grant based
on eligible students. The allocation must be made in accordance with the
policies and procedures developed by the department of education.
(4) Each LEA shall include as part of its budget submitted pursuant to §
49-2-203, the per pupil amount of local money it will pass through to public
charter schools during the upcoming school year, including all calculations listed
in this section. Allocations to public charter schools during that year must be
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based on the calculated amounts. The LEA shall distribute the portion of local
funds it expects to receive in no fewer than nine (9) equal installments to public
charter schools in the same manner as state funds are distributed pursuant to
chapter 3 of this title. An LEA shall adjust local payments to public charter
schools, at a minimum, in October, February, and June, based on changes in
revenue, student membership, or student services. All funds received by a public
charter school must be spent according to the budget submitted or as otherwise
revised by the public charter school governing body, subject to the requirements
of state and federal law.
SECTION 5. Sections 1 and 3 of this act take effect upon becoming a law, the public
welfare requiring it. For rulemaking purposes, Sections 2 and 4 of this act take effect upon
becoming a law, the public welfare requiring it. For all other purposes, Sections 2 and 4 of this
act take effect July 1, 2025, the public welfare requiring it.