Governor To Unveil $9B Funding Formula Based On Student Needs

By Sam Stockard, Tennessee Lookout

February 24, 2022

Using a projected $9 billion, Gov. Bill Lee’s proposed K-12 funding formula for fiscal 2023-24 would start the state’s 1 million students with a base amount of $6,860, then add more depending on individual needs ranging from economic disadvantages to disabilities.

Lee is seeking to replace the “complex” Basic Education Program with a simpler formula. But this one also has a wide variety of factors and percentages it uses to determine the amount of money that will go to every school district in the state based on the needs of each student.

The governor is introducing the plan Thursday at 11 a.m., as more than 80 districts are suing the state for more educational funds and arguments to be made before the Tennessee Supreme Court on his Education Savings Account program, which directs public funds to private schools.

Education Commissioner Penny Scwhinn gave a preview during an earlier Senate briefing.

Under Lee’s proposal, dubbed Tennessee Investment in Student Achievement, the more problems a student faces, the higher the funding. Students also could gain funding for showing success such as learning to read on grade level by the third grade and performing well on the ACT or industry tests in high school.

The money targeted to each student through more than 140 districts covers a range of situations.
For example, a student from an economically disadvantaged family living in a sparsely populated area and attending a small school district and with “unique” learning needs could have a funding total of $15,592. In contrast, a student who learns to read well by second grade and grapples only with a learning problem such as dyslexia could be targeted to receive a total of $8,732.

Funds would go through their school systems, and those projected totals are to be released Thursday.

Both Democrats and Republicans have raised questions about whether there is enough time in this legislative session, which is expected to recess in mid-April, to accurately evaluate Lee’s new funding proposal.

But with February coming to an end and the Legislature hoping to recess by mid-April to late April, the governor faces a difficult task.

“In the coming weeks, I look forward to working with our partners in the General Assembly to pass this important legislation and improve the way Tennessee funds public education for the first time in over 30 years,” Lee said in a statement.

School districts across the state would be required to publicly report funding and spending online, and they could run into a panel of lawmakers if they don’t do well.

The Tennessee Department of Education also would put together an academic analysis of each district annually in which the Comptroller’s Office could review districts showing poor performance.

The state is projecting $9 billion in total education funding for fiscal 2024 when the Tennessee Investment in Student Achievement is planned to take effect.

The Lee Administration hopes to pass it this year, even though the governor built in a hedge in case it doesn’t receive approval this session.

Republicans and Democrats have raised questions about whether lawmakers have enough time to review and digest the plan and vote on it this session.

Democrats contend the funding still falls far short of what is needed to bring Tennessee in line with neighboring states such as Alabama. They also argue this formula is just as complex as the BEP.

School districts would not be required to increase their portion of the funding formula, about 30%, for four years under the proposal, according to Education Commissioner Penny Schwinn. In fiscal 2026-27, local funding would increase similarly to what it does under the current Basic Education Program.

The governor is injecting some $1 billion into K-12 education this year, but $750 million of it will go toward technical education and relocating schools in floodplains. The following year, it would be directed to the funding formula.

Democrats say that even with the $1 billion Lee is injecting into K-12 education this year, Tennessee will still fall far short of funds used on education by neighboring states like Alabama.

Schwinn contended Wednesday if the Legislature were to put $1 billion directly into the funding formula this year it would require 25% of school districts to increase taxes to boost their portion of funding.

“TISA adds state funding without raising taxes,” Schwinn said.

Under the plan, $6.6 billion would go toward the base needs of students and cover funding for teacher salaries, nurses, counselors, principals and technology.

Another $1.8 billion would go toward factors such as economically disadvantaged, concentrated poverty, sparsely populated communities, small school districts and “unique” learning needs such as dyslexia and English language learning.

The plan targets $500 to improve literacy, $500 for literacy tutoring, an average of $5,000 per student to strengthen and expand career and technical education and $185 per student to pay for administrators on post-secondary assessments such as the ACT.

Another $100 million would go to student bonuses when they demonstrate success in learning to read on grade level at the end of the third grade, as well as good performance on the ACT and industry credential tests.

The governor promised to put $125 million toward teacher salaries in fiscal 2022-23. Questions are raised each year about whether those pay increases make it to teachers’ paychecks.

According to Schwinn, if those increases continue, they will be required to go to salary increases while “commensurate” raises would be made in starting salaries.

Tennessee Lookout is part of States Newsroom, a nonprofit network of state government news sites supported by grants and a coalition of donors.