Tennessee’s long-anticipated school funding plan is poised to alter public education as we know it — maybe.
Referred to as the Tennessee Investment in Student Achievement, or TISA, the new model is designed to simplify school funding by allocating money based on student needs. That’s a radical shift from how the state currently funds public education through the Basic Education Program, or BEP, which generally distributes money based on school district needs.
But some lawmakers and school advocates find the new plan underwhelming, arguing that the bill overlooks key areas — like how the state calculates local capacity or defines students in poverty.
The state Department of Education spent last fall collecting public feedback and policy recommendations from school leaders, parent advocates, lawmakers and teachers. TISA was built around three priorities: empower each student to read proficiently by third grade, prepare each high school graduate for postsecondary success and provide resources needed to all students to ensure they succeed.
“For the first time in 30 years, we have a unique opportunity to replace Tennessee’s outdated K-12 funding formula with a modern, student-focused approach,” Gov. Bill Lee wrote in a statement earlier this month.
Lee vowed to invest a $1 billion more dollars in education, increasing funding to $9 billion. If the bill is signed into law, as expected, it’ll take effect beginning the 2023-24 school year.
The school funding bill passed in the Senate by a 26-5 vote.
Key changes:
- Extra money for kids who need it
Arguably the hallmark of the new plan, schools will receive additional money to support students living in poverty, English language learners, students with disabilities and those living in rural school districts.
The dollar amount varies based on the need and what kinds of services a student requires. For example, economically disadvantaged students will generate $1,715 per pupil while students living in small or sparse districts will generate $343 per pupil. Schools that serve English learners or students with disabilities could get anywhere between $1,029 to $10,290.
- Push to improve early literacy
It’s no surprise that early literacy is a focal point in the bill. Tennessee has long been concerned about the number of young children who aren’t reading on grade level by the time they’re in third grade.
The new plan adds roughly $152 million for students in kindergarten through third grade and some in fourth grade to receive literacy supports like tutoring and paraprofessionals. But it’s important to keep in mind that schools have discretion on how to spend this sum of money.
- Accountability committee
Since the bill’s inception, education commissioner Penny Schwinn has emphasized that the proposal isn’t a spending plan, meaning the state can’t generally mandate school districts to spend funds one way or another.
Instead, the formula contains a provision that starting in 2026, districts with less than 70% of third graders perform “on track” or “mastered” in their English Language Arts exam will be eligible for state review.
The education commissioner along with other state officials will then decide whether districts should be assigned to complete “professional development training” on how to improve student performance.
As of last year, only 32 percent of third graders statewide read proficiently but Schwinn reassured lawmakers that only districts that show little to no improvement will likely receive state intervention.
- Fast growing districts
Under the new plan, school systems that see their student enrollment grow by more than 1.25% from the previous year will receive extra funding. Districts that are growing at a rate of 2% for three consecutive years can also generate an infrastructure stipend to keep up with their growth.
- Extra money for student performance
Details about how much money high-preforming student outcomes will generate are yet to be decided. But the group divvying up those funds will be comprised of three superintendents, a teacher, three lawmakers, the chair of the state board of education, a parent, a private business leader, a school board member and a general resident of the state.
What got left out?
- Expanded definition of economically disadvantaged students
Although the new plan is a considerable feat for schools that serve students living in poverty, some education advocates worry that the eligibility requirements may exclude some children.
Right now, the state identifies economically disadvantaged students by looking at which families qualify for federal benefits like SNAP (food stamps) and TANF, are experiencing homelessness or are navigating the foster care system. That won’t change in the new plan.
But some argue that the current measure fails to take into account undocumented families or those who live in counties with higher costs of living. Rep. Sam McKenzie, D-Knoxville, introduced an amendment to qualify families who participate in TennCare, which some advocates say would offer a more accurate count of students in need. But the bill passed the House before the amendment could be discussed.
- Inflation
Rep. Mike Stewart, D-Nashville, raised concerns that the new plan doesn’t automatically increase school funding over time like the current model. Instead, the formula will require legislative action to put more money into schools. (The funding could also technically grow if the state’s student population expands.) Stewart worries that bureaucracy could potentially lead to schools being underfunded again in the future. His amendment to tie school funding to inflation was tabled in both the House and Senate.
- Pre-K funding
The bill solely focuses on students in grades K-12, meaning early childhood resources will be funded separately. Pre-K opportunities have become a growing issue in the state. Recently, the State of Preschool 2021 report found that Tennessee ranks 29th in the country when it comes to state spending for pre-K services.
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