Tennessee School Funding Guide 2026 | TISA Calculator & How TN Schools Get Money
💰 INTERACTIVE GUIDE

Understanding Tennessee School Funding

Calculate how much funding your student generates, explore TISA weights, and learn how Tennessee schools get their money.

By Sky Arnold • 15 min read • Updated Jan 2026
🧮 TISA Calculator 📊 Explore Weights 💵 Funding Sources 🔄 BEP vs TISA
$7,295
Base Per Student
$9,810
Avg w/ Local Match
$7B
State Budget 25-26
70/30
State/Local Split

Tennessee's school funding system changed dramatically in 2023 when TISA (Tennessee Investment in Student Achievement) replaced the 30-year-old BEP formula. Under TISA, funding follows the student — with extra dollars for those who need more support. Use the calculator below to see exactly how much funding a student generates.

🧮

TISA Funding Calculator

Select all that apply to see how much state funding a student generates for their school district.

1 Select Student Characteristics

Base Funding (All Students) Every TN public school student generates this amount
$7,295
Economically Disadvantaged Free/reduced lunch, foster care, homeless, migrant
+$1,824
Concentrated Poverty School School has high percentage of low-income students
+$365
English Learner Students acquiring English proficiency
+$1,459
Student with Disability Students with IEPs based on need level
+$1,094
Characteristics of Dyslexia Students identified with dyslexia characteristics
+$1,459
Gifted Student Identified for gifted/talented programs
+$1,094
Grades K-3 (Literacy) Direct funding for early literacy
+$500
Small District District has fewer than 1,000 students
+$365
Sparse District Rural district with low population density
+$365
Total Student Funding
$0
Generated for the school district

Funding Breakdown

Base Funding $0
Weighted Allocations $0
Direct Funding $0
Compared to state average ($9,810)
Select options above

Where Does School Funding Come From?

70% State
25% Local
5%
State Funds ~$7B through TISA formula
Local Funds Property & sales taxes
Federal Grants Title I, IDEA, etc.

Explore TISA Weights

Click any card to learn more about how each weight generates additional funding for students with specific needs.

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25%
+$1,824

Economically Disadvantaged

Additional funding for students from low-income families to address poverty-related educational challenges.

  • Free/reduced lunch eligible
  • Foster care students
  • Students experiencing homelessness
  • Migrant students
Click to expand
🌍
20-70%
+$1,459 to +$5,107

English Learners

Tiered funding based on English proficiency level to support language acquisition services.

  • Level 1-2: 20% (+$1,459)
  • Level 3: 50% (+$3,648)
  • Level 4: 70% (+$5,107)
  • Funding decreases as proficiency improves
Click to expand
📚
15-150%
+$1,094 to +$10,943

Unique Learning Needs

Students with disabilities receive funding across 10 tiers based on their IEP service requirements.

  • 10 funding tiers based on need
  • Determined by IEP services
  • Includes all disability categories
  • Can combine with other weights
Click to expand
🏫
5%
+$365

Concentrated Poverty

Schools with high percentages of economically disadvantaged students receive additional per-pupil funding.

  • Based on school-level poverty rate
  • Addresses compound challenges
  • Stacks with individual ED weight
  • Helps high-poverty schools
Click to expand
🎓
15%
+$1,094

Gifted Students

Additional funding for students identified as intellectually gifted for advanced learning opportunities.

  • Formally identified gifted students
  • Supports enrichment programs
  • Advanced learning materials
  • Specialized instruction
Click to expand
🏡
5% each
+$365 each

Small & Sparse Districts

Rural and small districts receive additional funding to address economies of scale challenges.

  • Small: Under 1,000 students
  • Sparse: Low population density
  • Can qualify for both (+$730)
  • Helps maintain rural schools
Click to expand

BEP vs. TISA: What Changed?

Tennessee completely overhauled its school funding approach in 2023. Here's how the two formulas compare:

Tennessee Investment in Student Achievement (2023-Present)

TISA is a student-based funding model where dollars follow the student based on their individual needs.

👤
Student-Centered Funding based on individual student needs
⚖️
Weighted Allocations Extra $ for students who need more support
🎯
Direct Funding 100% state-funded for priority areas
🏆
Outcomes Bonuses Rewards for student achievement gains

Basic Education Program (1992-2023)

BEP was a resource-based funding model that calculated costs based on 46 different input components.

📋
Resource-Based Funded teacher ratios, textbooks, etc.
🔢
46 Components Complex formula with many line items
❓
Less Transparent Difficult for public to understand
📊
Limited Weighting Less responsive to student needs

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Dive Deeper

TISA Explained: Full Deep Dive

Complete breakdown of base funding, weights, direct allocations, and outcomes funding.

Read More →

From BEP to TISA: The Shift

Why Tennessee changed its funding formula after 30 years.

Read More →

Understanding All TISA Weights

Detailed breakdown of every weight category and qualification.

Read More →

Local Funding & Fiscal Capacity

How the 30% local share is calculated for each district.

Read More →
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Understanding Tennessee School Funding: A Comprehensive Guide

Understanding Tennessee School Funding: A Comprehensive Guide for Citizens

By Sky Arnold | Published on June 16, 2025

Navigating the complexities of how public schools in Tennessee are funded can feel overwhelming. Yet, understanding this system is crucial for parents, educators, taxpayers, and community members who want to ensure every student has the resources they need to succeed. This guide aims to demystify Tennessee's school funding mechanisms, from historical foundations to the current landscape, and explain how these systems impact education across the Volunteer State. Our goal is to provide clear, factual information to help you engage in informed discussions about the future of education in Tennessee.

Where Does the Money Come From? Main Funding Sources

Public education in Tennessee is financed through a combination of funding sources, as outlined in state guidance documents:

  • State Funds: The largest portion of education funding comes from the state budget, appropriated annually by the Tennessee General Assembly. For the 2021-22 school year, for instance, over $5 billion was allocated to public school districts, primarily through the state's funding formula.
  • Local Funds: Local governments (counties and sometimes cities) are required to contribute to education funding, typically through revenues from property taxes, sales taxes, or other local levies. The amount of local contribution is influenced by the state's funding formula and the locality's capacity to raise revenue.
  • Federal Funds: The federal government provides grants to support specific student populations (like economically disadvantaged students or English Learners) or targeted need areas (such as teacher professional development or pandemic relief efforts).

Tennessee's School Funding Formulas: Past and Present

Tennessee has utilized different models over the years to distribute state and local funds to school districts.

The Basic Education Program (BEP): A Longstanding Foundation

For over 30 years, the Basic Education Program (BEP) was the primary funding formula for Tennessee's K-12 public schools. Generally considered a resource-based funding model, the BEP aimed to determine the funding level required for each school system to provide a common, basic level of service for all students, as detailed in primers from organizations like the EdLawCenter.

A core principle of the BEP was to adjust state funding based on a local school district's ability to raise its own revenue, known as "fiscal capacity." This was intended to promote equity, ensuring that districts with lower local wealth received a larger share of state aid. Over time, however, the BEP faced criticism for its complexity and a perceived lack of transparency, which made it difficult for the public to understand how funds were distributed and spent.

The Tennessee Investment in Student Achievement (TISA) Act: The Current Model

Effective July 1, 2023, the Tennessee Investment in Student Achievement (TISA) Act replaced the BEP as the state's primary K-12 education funding formula. TISA represents a shift towards a student-based funding model, designed to direct resources more specifically based on individual student needs. The Tennessee Department of Education (TDOE) provides numerous resources explaining this new approach.

Under TISA, funding follows the student. Each student generates a base funding amount (e.g., $6,860 for the 2023-2024 school year). In addition to the base amount, students can generate additional funding through "weighted allocations" if they have specific needs, such as being economically disadvantaged or having unique learning needs. TISA also includes direct allocations for specific state priorities and allows for potential outcomes-based funding to reward districts for improving student achievement.

Other Significant Funding Streams

Beyond the primary funding formula, Tennessee schools benefit from other sources, which you can learn more about in our guide to other key funding sources:

  • Tennessee Education Lottery Scholarships (HOPE): While primarily for postsecondary education, the lottery system's health impacts overall education discussions and perceptions of state investment.
  • Federal Grants: Programs like ESSER (Elementary and Secondary School Emergency Relief) provided significant, though temporary, funding boosts in response to the COVID-19 pandemic.
  • Education Freedom Scholarship Act: This program, funded in part by revenues from online gaming, provides scholarships for students to attend private schools. You can find official details on the TDOE's EFS Program page.

Key Challenges & Ongoing Debates in Tennessee School Funding

School funding is a perennially debated topic, with several key challenges and ongoing discussions in Tennessee:

  • Funding Adequacy: Is the overall amount of funding sufficient to meet the diverse needs of all students and provide a high-quality education?
  • Equity: Does the funding system ensure that resources are distributed fairly across all school districts, regardless of local wealth or geographic location?
  • Impact of Formula Changes: How do shifts from one funding model to another affect different types of school districts? A Comptroller's report found that while all districts received more state money in TISA's first year, the long-term impacts are still being evaluated.
  • State vs. Federal Roles: Debates sometimes arise over the balance of state and federal responsibilities in funding specific programs, as seen with discussions around summer food benefits.

How Tennesseans Can Get Involved & Find More Information

Understanding school funding is the first step toward advocating for strong public schools. Here’s how you can learn more and make your voice heard:

Dive Deeper Section

Dive Deeper into Tennessee School Funding

Explore these key aspects of how education is funded in our state for a more detailed understanding: