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TN SB0614

TN SB0614
AN ACT to amend Tennessee Code Annotated, Section 49-3-314, relative to education finance.


summary

Introduced
01/31/2025
In Committee
Crossed Over
04/14/2025
Passed
Dead

Introduced Session

Potential new amendment
114th General Assembly

Bill Summary

As introduced, requires, if a local government adopts a budget that includes the required maintenance of effort for education funding but fails to appropriate or allocate the full amount budgeted to the LEA, the local government, in the following fiscal year, to appropriate and allocate the unfunded portion to the LEA; specifies that the maintenance of local funding effort required for a fiscal year following a fiscal year in which the local government failed to appropriate or allocate the full amount budgeted to the LEA must be determined based on the amount budgeted to the LEA for the previous fiscal year instead of the amount actually appropriated or allocated to the LEA by the local government. - Amends TCA Section 49-3-314.

AI Summary

This bill amends Tennessee education finance law to address situations where local governments do not fully fund their budgeted education maintenance of effort (MOE). Specifically, if a local government adopts a budget for education funding but fails to allocate the full budgeted amount to the Local Education Agency (LEA), they will be required to appropriate the unfunded portion in the following fiscal year. The bill also stipulates that for the fiscal year after a funding shortfall, the maintenance of local funding effort will be calculated based on the originally budgeted amount, not the actual amount previously allocated. This means that if a local government falls short of its education funding commitment in one year, it must not only make up the difference in the next year but also calculate its future funding baseline using the original budgeted amount. The legislation applies to fiscal year 2025-2026 and subsequent years, with the funds to correct a local funding shortfall classified as a nonrecurring expenditure. The act takes effect immediately upon becoming law.

Committee Categories

Budget and Finance, Education

Sponsors (1)

Last Action

Rcvd. from S., held on H. desk. (on 04/15/2025)

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