The BEP: A Look Back at Tennessee's Former School Funding Formula
📜 FUNDING HISTORY

The BEP: A Look Back

Understanding Tennessee's former Basic Education Program and why it was replaced after three decades.

1992 – 2023 31 Years of Tennessee School Funding

For over three decades, Tennessee's public schools were funded through the Basic Education Program (BEP). This resource-based formula was created in the early 1990s as part of the Education Improvement Act and served as the backbone of K-12 funding until TISA took its place in July 2023. Understanding the BEP's structure, evolution, and limitations helps explain why Tennessee chose to make a significant change.

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% Local
📚

Classroom Components

Textbooks, supplies, equipment, and technology

75% State / 25% Local
🏫

Non-Classroom Components

Transportation, maintenance, utilities, and administration

50% State / 50% Local

BEP Timeline

1992
The Basic Education Program (BEP) is established as part of the Education Improvement Act, creating Tennessee's first comprehensive K-12 funding formula.
2007
BEP 2.0 revisions add funding for at-risk students and fast-growth districts, attempting to address equity concerns while maintaining the resource-based structure.
2019-2021
Growing criticism of the BEP leads to legislative discussions about comprehensive funding reform.
2022
Governor Lee signs the Tennessee Investment in Student Achievement (TISA) Act, creating a new student-based formula with $1 billion+ in additional funding.
June 30, 2023
The BEP officially ends after 31 years of funding Tennessee schools.

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.

Frequently Asked Questions

What was the BEP in Tennessee?
The Basic Education Program (BEP) was Tennessee's K-12 education funding formula from 1992 to 2023. It was a resource-based model that calculated funding based on expected costs for staffing, services, and programs deemed necessary for a basic education.
When did the BEP end in Tennessee?
The BEP ended on June 30, 2023, when it was replaced by the Tennessee Investment in Student Achievement (TISA) Act, which took effect July 1, 2023.
Why was the BEP replaced?
The BEP was replaced due to criticisms including: complexity and lack of transparency, inadequate focus on individual student needs, rigidity in funding tied to staffing ratios, and concerns about overall funding adequacy that contributed to Tennessee's low national rankings.
What was BEP 2.0?
BEP 2.0 was a 2007 revision to the original BEP formula that added funding for at-risk students and fast-growth districts. It attempted to address some equity concerns but maintained the resource-based structure.