Bill > HB1516

This bill establishes procedures to ensure continued funding for municipal operations and local education agencies (LEAs) in Tennessee when governing bodies cannot agree on budgets. Specifically, if a municipal legislative body and the LEA's governing body fail to agree on an LEA budget by August 31st, the LEA will automatically receive a minimum budget sufficient to meet state funding requirements, with a provision for a mandatory 3% increase in local funding if disagreements persist for three consecutive years, unless the LEA fails to submit its budget proposal on time. Additionally, if a municipal legislative body hasn't adopted its budget by the start of a fiscal year, the previous year's budget and appropriations will remain in effect by default, with limitations on monthly spending and the possibility of extensions for up to three months with approval from the comptroller of the treasury, provided certain conditions and justifications are met. The bill also repeals an existing section of Tennessee Code Annotated related to municipal budgets.

Budget and Finance, Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1516&ga=114