What Was the BEP?
The Basic Education Program (BEP) was a resource-based funding formula. Unlike TISA's student-based approach where each student generates a dollar amount, the BEP calculated funding based on the expected costs for a set of resources — primarily staffing — deemed necessary to provide a "basic" level of education.
For each school district, the formula determined how many teachers, administrators, counselors, and other personnel were needed based on student enrollment (measured by Average Daily Membership, or ADM). The state then calculated the costs for these positions plus associated classroom and operational expenses.
BEP's Three Funding Categories
The BEP divided education costs into three main categories, each with a different state/local funding split:
Instructional Components
Teachers, principals, supervisors, librarians, and instructional assistants
70% State / 30% LocalClassroom Components
Textbooks, supplies, equipment, and technology
75% State / 25% LocalNon-Classroom Components
Transportation, maintenance, utilities, and administration
50% State / 50% LocalBEP Timeline
Why Was the BEP Replaced?
Despite serving Tennessee for three decades, the BEP faced growing criticism that ultimately led to its replacement:
Key Criticisms of the BEP
- Complexity and Lack of Transparency: The formula was difficult for parents and even educators to understand, making it hard to follow how funds were distributed.
- Inadequate Focus on Student Needs: As a resource-based model, it didn't effectively account for the varying costs of educating students with different needs (low-income, disabilities, English learners).
- Rigidity: Funding tied to specific staffing ratios wasn't always aligned with the most effective strategies for improving student outcomes.
- Overall Inadequacy: Tennessee consistently ranked near the bottom nationally in per-student spending, raising questions about whether the BEP provided sufficient resources.
- Equity Concerns: Critics argued the formula didn't adequately address funding disparities between wealthy and poor districts.
These concerns, combined with Tennessee's low national rankings (around 44th in per-student spending, 38th in teacher pay), created the momentum for comprehensive reform that resulted in TISA.
To understand how the new formula works differently, see: From BEP to TISA: Understanding the Shift.

