Debating School Funding: Tennessee's Challenges & Perspectives | 2025
⚖️ PERSPECTIVES

Debating School Funding: Challenges & Perspectives

Despite TISA's improvements, significant debates continue about whether Tennessee invests enough in education.

While TISA added over $1 billion in new state funding and improved how dollars are distributed, broader concerns about Tennessee's education funding persist. Understanding these ongoing debates is essential for anyone seeking to engage with education policy in the Volunteer State.

Tennessee's National Rankings

Even with increased investment through TISA, Tennessee continues to rank near the bottom nationally on key education funding metrics:

44th
Per-Student Spending
Out of 50 states + DC
38th
Average Teacher Pay
Improved from prior years

Critics argue that TISA, while an improvement in structure, may not provide enough overall funding to significantly lift these rankings or address systemic underfunding.

Key Concerns in the Funding Debate

👩‍🏫 Teacher Pay & Shortages

TISA does not directly mandate teacher salary minimums or hiring levels. Critics argue the state underfunds these needs, contributing to teacher shortages and retention challenges.

🏠 Local Tax Burden

Some worry TISA could lead to increased local tax burden for some communities if the state's share effectively decreases or if overall funding is perceived as inadequate.

🏷️ Incentive to "Label" Students

Some legislators express concern that heavily weighted formulas might incentivize schools to identify more students for certain categories (like unique learning needs) to receive more funding.

📊 Adequacy Questions

The fundamental question: Is the total investment sufficient? Equity in distribution matters, but so does whether there's enough funding in the first place.

Different Perspectives

TISA Supporters Say

  • $1.16 billion in new funding is a historic investment
  • All districts received more than under BEP
  • Student-based model is more transparent and equitable
  • Weighted funding directs resources to students who need them most
  • Outcomes-based funding incentivizes improvement
  • Hold harmless provision protects districts during transition

Critics Argue

  • Tennessee still ranks near bottom nationally in spending
  • Teacher pay remains uncompetitive with neighboring states
  • Formula doesn't directly address teacher shortages
  • Local districts still face budget challenges
  • Overall funding may still be inadequate
  • Weighted system could create perverse incentives

The Adequacy vs. Equity Debate

Two related but distinct concepts are often conflated in funding debates:

💡 Understanding the Terms

Equity: Are funds distributed fairly based on student needs? TISA's weighted system aims to address this by directing more resources to students who require more support.

Adequacy: Is the total amount of funding sufficient? Even perfectly equitable distribution can't help if the overall pool is too small. Critics argue Tennessee's total investment — not just its distribution — needs to increase.

Accountability Under TISA

TISA introduces new accountability requirements:

  • Annual Reports: Districts must submit accountability reports to TDOE detailing how TISA funds support student achievement.
  • Outcomes Funding: Additional dollars are tied to district performance on specific metrics like third-grade reading proficiency.
  • Oversight Committees: The law establishes review committees to monitor implementation.

However, the Comptroller's Office noted that some requirements — such as annually convening an Outcomes Review Committee — were not fully met in TISA's first year, leading to recommendations for improvement.

The Path Forward

Evaluating the full effects of TISA on student achievement will require years of data. Key questions for ongoing debate include:

  • Will increased funding translate to improved student outcomes?
  • Can Tennessee improve its national rankings while maintaining fiscal responsibility?
  • How should the state balance investment in public schools with other education initiatives like voucher programs?
  • What role should local communities play in supplementing state funding?

Learn how to make your voice heard: Advocating for School Funding in Tennessee.

Frequently Asked Questions

Where does Tennessee rank in per-student education spending?
Tennessee consistently ranks around 44th nationally in per-student K-12 education spending. While TISA added over $1 billion in new state funding, critics argue this still doesn't bring Tennessee to adequate levels compared to other states.
What is Tennessee's national ranking for teacher pay?
Tennessee improved to approximately 38th nationally in average teacher pay for 2023-24, but still lags behind most states. TISA does not directly mandate teacher salary minimums, leaving compensation decisions to individual districts.
What are the main criticisms of TISA?
Critics argue TISA, while an improvement in structure, may not provide enough overall funding to significantly lift Tennessee's national rankings. Concerns include: inadequate teacher pay, potential increased local tax burden, and incentives that might encourage districts to over-identify students for weighted categories.
What is adequacy in school funding debates?
Adequacy refers to whether funding levels are sufficient to provide all students with the resources needed for a quality education. Debates center on whether Tennessee invests enough overall, regardless of how equitably funds are distributed.