Bill > SB1592

This bill establishes processes to ensure continued funding for municipal operations and local education agencies (LEAs) in Tennessee when their respective governing bodies fail to agree on a budget. For LEAs, if the municipal legislative body and the LEA's governing body cannot agree on a budget by August 31st, the LEA's budget will automatically be set at the minimum required to meet state funding obligations, specifically the local match and maintenance of effort provisions of the Tennessee Investment in Student Achievement (TISA) program, which is a state funding formula for schools. However, if this deadlock occurs for three consecutive years, the LEA's budget for the third year must include a mandatory 3% increase in local funding, unless the LEA failed to submit its budget proposal by May 1st in any of those three years. For general municipal operations, if a municipal legislative body has not adopted a budget by the start of the fiscal year, the budget and appropriations from the previous fiscal year will remain in effect by default. This continuing budget cannot exceed the monthly spending of the prior year without specific authorization and a identified funding source, and it can only continue for the first two months of the fiscal year, or a third month with approval from the Comptroller of the Treasury, who oversees state finances, due to extraordinary circumstances. The bill also repeals an existing section of Tennessee Code Annotated related to municipal budgets.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1592&ga=114