Why the Change? Limitations of the BEP
The Basic Education Program (BEP), implemented in the early 1990s, was a resource-based formula. It aimed to provide funding for the resources (like staffing, services, and programs) deemed necessary for a basic level of education. While it served Tennessee for many years, the BEP faced growing criticism:
- Complexity and Lack of Transparency: The BEP was an intricate formula with numerous components, making it difficult for the public to understand how funds were distributed.
- Inadequate Focus on Student Needs: As a resource-based model, it wasn't highly responsive to the specific, varying needs of individual students.
- Rigidity: Funding tied to specific staffing ratios wasn't always aligned with the most effective strategies for improving student outcomes.
- Equity Concerns: Concerns persisted about whether the BEP truly provided equitable funding across all districts.
BEP vs. TISA: Key Differences
| Feature | BEP (1992-2023) | TISA (2023-Present) |
|---|---|---|
| Funding Model | Resource-Based | Student-Based |
| Core Allocation | Based on expected costs for staffing/resources | Each student generates $7,295 (2025-26) |
| Student Needs | Limited adjustments for at-risk students | Multiple weighted categories (15-150% additional) |
| Transparency | Complex, difficult to understand | Designed to be clearer and more transparent |
| State/Local Split | Varied by category (50-75% state) | 70% state / 30% local (base + weights) |
| Outcomes Focus | Primarily resource-focused | Includes outcomes-based funding bonuses |
The Transition Timeline
Benefits of TISA Over BEP
- Funding follows individual students
- Clear weighted allocations for specific needs
- More transparent formula
- Outcomes-based funding incentives
- $1 billion+ additional state investment
- All districts received more in Year 1
- Complex and hard to understand
- Resource-based, not student-based
- Limited adjustments for student needs
- Rigid funding categories
- Tennessee ranked low in per-student spending
- Equity concerns persisted
The Hold Harmless Provision
To ensure a smooth transition, TISA includes a "hold harmless" provision that protects districts that might have received less under TISA than their BEP baseline:
📅 Hold Harmless Schedule
Year 1 (2023-24): 100% of the difference covered
Year 2 (2024-25): 75% of the difference covered
Year 3 (2025-26): 50% of the difference covered
Year 4 (2026-27): 25% of the difference covered
This helps stabilize budgets during the transition and ensures no district experiences a sudden funding cliff. Learn more about how TISA is affecting districts: TISA's Impact on Tennessee Districts.
