From BEP to TISA: Understanding the Shift in Tennessee's School Funding Approach
By Sky Arnold | Published on June 16, 2025
For over three decades, the Basic Education Program (BEP) served as the backbone of K-12 public school funding in Tennessee. However, in 2022, the state legislature enacted the Tennessee Investment in Student Achievement (TISA) Act, ushering in a new era of student-based funding effective July 1, 2023. This transition represents a significant philosophical and mechanical shift in how education dollars are allocated across the Volunteer State. This article explores why Tennessee moved from the BEP to TISA, compares the core tenets of each formula, and discusses the intended benefits and potential challenges of this new approach.
For a comprehensive overview of school funding, visit our main guide: Understanding Tennessee School Funding. For a detailed breakdown of the current formula, see: TISA Explained: A Deep Dive into Tennessee's Student-Based Funding Formula.
Why the Change? Limitations of the Basic Education Program (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, often using student-to-resource ratios from the previous year. While it served Tennessee for many years and included mechanisms for equalization based on local fiscal capacity, the BEP faced growing criticism over time:
- Complexity and Lack of Transparency: The BEP was an intricate formula with numerous components, making it difficult for the public, and even some policymakers, to fully understand how funds were distributed and spent. This lack of clarity, as noted in analyses of the formula, often led to questions about fairness and efficiency.
- Inadequate Focus on Individual Student Needs: As a primarily resource-based model, the BEP was often seen as not sufficiently responsive to the diverse and varying needs of individual students. For example, while it included some adjustments for at-risk students (after the BEP 2.0 revisions), critics argued it didn't adequately fund the higher costs associated with educating students from low-income backgrounds, English Learners, or students with significant disabilities.
- Rigidity: Resource-based models can sometimes be less flexible in adapting to evolving educational best practices and the changing demographics of the student population. Funding tied to specific staffing ratios or resource categories might not always align with the most effective strategies for improving student outcomes.
- Equity Concerns: Despite equalization efforts, concerns persisted about whether the BEP truly provided equitable funding across all districts, particularly for those serving high concentrations of students requiring more intensive support.
Enter TISA: A Move Towards Student-Centered Funding
The Tennessee Investment in Student Achievement (TISA) Act was designed to address the perceived shortcomings of the BEP by shifting to a student-based funding model. The core philosophy behind TISA is that funding should "follow the student," with allocations directly tied to individual student enrollment and adjusted based on specific student needs and characteristics.
The stated goals of TISA, according to the County Technical Assistance Service (CTAS), include improving adequacy, equity, and transparency in school funding, with a focus on:
- Supporting third-grade reading proficiency.
- Preparing high school graduates for postsecondary success or careers.
- Providing all students with the resources they need to succeed, regardless of their circumstances.
BEP vs. TISA: Key Differences at a Glance
| Feature | Basic Education Program (BEP) | Tennessee Investment in Student Achievement (TISA) |
|---|---|---|
| Funding Model Type | Primarily Resource-Based | Student-Based |
| Core Allocation Method | Funded based on resources deemed necessary (staffing ratios, program costs) using prior year's Average Daily Memberships (ADMs). | Each student generates a base funding amount (e.g., $6,860 for 2023-24). |
| Addressing Student Needs | Some adjustments (e.g., for at-risk students after BEP 2.0), but primarily focused on overall resource allocation. | Utilizes "weights" to provide additional funding for students with specific needs (economically disadvantaged, unique learning needs, concentrated poverty, small/sparse districts). |
| Transparency | Often criticized for complexity and lack of transparency. | Designed to be more transparent, with clearer explanations of how funds are allocated. |
| Flexibility | Could be rigid due to funding tied to specific resource categories. | Intended to offer more flexibility to districts in how they use funds to meet student needs, though direct allocations exist for specific state priorities. |
| State/Local Share | State and local shares varied by funding category (Instructional, Classroom, Non-Classroom) and were adjusted by local fiscal capacity. | State funds 70% of base and weighted allocations; local share (30%) determined by fiscal capacity. State funds 100% of direct allocations. |
Intended Benefits of the Shift to TISA
The move to a student-based formula like TISA is intended to bring several benefits:
- Improved Equity: By directly allocating more funds for students with greater needs (e.g., those in poverty, with disabilities, or English Learners), TISA aims to distribute resources more equitably across the state.
- Enhanced Transparency: A student-based formula with clear base amounts and defined weights is generally considered easier for the public and policymakers to understand compared to complex resource-based calculations. The Tennessee Department of Education actively provides guides and explanations for TISA.
- Greater Focus on Student Outcomes: While the BEP was primarily about providing resources, TISA incorporates elements of outcomes-based funding, potentially incentivizing districts to improve student achievement in areas like third-grade literacy and postsecondary readiness.
- Increased Adequacy (Goal): Proponents hope that by better targeting funds to student needs, the overall funding provided will be more adequate to meet the actual costs of educating all students effectively.
Challenges and Considerations During the Transition
Any major shift in a state's funding formula comes with challenges and requires careful management:
- "Hold Harmless" Provision: TISA includes a multi-year "hold harmless" provision to cushion the impact on districts that might initially receive less funding under TISA than they did under the BEP baseline. This helps stabilize budgets during the transition but also means the full financial impact of TISA unfolds gradually.
- Data Accuracy and Collection: Student-based formulas rely heavily on accurate and timely data regarding student enrollment and characteristics (e.g., economic status, disability). Ensuring robust data systems is crucial. TISA generally uses data from the prior school year for allocations.
- Capacity of Districts: School districts need the capacity to understand the new formula, manage their budgets effectively under the new system, and strategically allocate resources to meet the needs identified by the TISA weights.
- Ongoing Evaluation and Adjustment: No funding formula is perfect from the outset. Continuous monitoring, evaluation of TISA's impact on student outcomes and equity, and a willingness to make adjustments will be necessary. The State Comptroller's Office is tasked with evaluating the formula's effects.
- Public Understanding and Engagement: Ensuring that parents, educators, and community members understand the new formula and its implications is vital for informed public discourse and support for public education.
Conclusion: A New Chapter in Tennessee School Funding
The transition from the BEP to TISA marks a significant new chapter in how Tennessee invests in its students. By moving to a student-centered model, the state aims to create a more equitable, transparent, and adequate funding system that better supports the diverse needs of all learners. While the full impact will unfold over several years, understanding this shift is crucial for anyone invested in the future of public education in Tennessee.
The Tennessee Firefly will continue to monitor the implementation of TISA and its effects on schools and students across the state. For more foundational information, please refer to our main guide: Understanding Tennessee School Funding.