Why TISA? The Shift to Student-Centered Funding
The transition from the BEP to TISA was driven by a recognized need for a more adequate, equitable, and transparent funding system. The BEP, a complex resource-based formula, was often criticized for not sufficiently addressing the varying needs of diverse student populations and for lacking clarity.
TISA aims to rectify these shortcomings by allocating greater funding to school districts serving larger numbers of students who traditionally require more support, such as those from low-income backgrounds, English Learners (ELs), and students with disabilities. The fundamental principle of TISA is that funding should follow the student, with adjustments made to reflect the actual costs associated with educating every child to their full potential.
💡 Key Principle
Under TISA, every student generates funding. Students with specific needs generate additional funding through weighted allocations. This ensures resources flow to where they're needed most.
Core Goals of the TISA Act
The TISA Act is built upon several key objectives for Tennessee's education system:
- To support and improve third-grade reading proficiency across the state
- To prepare high school graduates to successfully transition into a postsecondary program or career of their choice
- To provide all students, irrespective of their circumstances or location, with the necessary resources to achieve academic success
How TISA Works: The Four Components
TISA's student-based model calculates funding for school districts through several key components:
Base Funding Amount
Every public school student generates a foundational base funding amount. For 2025-26, this base amount is $7,295 per student. This per-pupil allocation forms the starting point for determining a district's overall funding.
Weighted Allocations
Additional funding is provided for students with specific characteristics or needs. These "weights" are percentages applied to the base amount — and a student can qualify for multiple weights simultaneously.
Direct Allocations
Funds provided by the state at 100% for specific statewide programs or educational priorities, such as literacy initiatives, career and technical education, and charter school students.
Outcomes-Based Funding
Additional funding awarded to districts that demonstrate significant improvements in student achievement, such as gains in graduation rates or proficiency on state assessments.
Understanding TISA's Weighted Allocations
Recognizing that different students require different levels of support, TISA incorporates "weights" that provide additional funding on top of the base amount. These weights are percentages applied to the base amount, and a student can generate funding from multiple weights if they meet the criteria for more than one category.
| Student Category | Weight | Additional Funding (2025-26) |
|---|---|---|
| Economically Disadvantaged | 25% | +$1,824 per student |
| Concentrated Poverty | 5% | +$365 per student |
| Small Districts | 5% | +$365 per student |
| Sparse Districts | 5% | +$365 per student |
| Unique Learning Needs | 15-150% | +$1,094 to $10,943 per student |
For a detailed breakdown of each weight category, see our guide: Understanding TISA's Weights.
State and Local Contributions
Under TISA, the state is responsible for funding 70% of the combined base and weighted allocations for each district. The remaining 30% is the local share, which is determined by the school district's "fiscal capacity" — its ability to raise local revenue, typically through property and sales taxes.
This mechanism aims to ensure a degree of equity, requiring wealthier districts to contribute a larger local share. Learn more in our guide: The Role of Local Funding in Tennessee Education.
Direct Allocations: Priority Areas
TISA includes direct allocations — funds provided by the state at 100% for specific statewide programs:
- K-3 Literacy Programs — Supporting early reading success
- Grade 4 Literacy Support — Continued literacy intervention
- Career & Technical Education (CTE) — Workforce readiness programs
- ACT Testing — Funding for grades 11 and 12
- Charter School Students — Dedicated funding stream
Outcomes-Based Funding
TISA introduces the potential for outcomes-based funding, allowing additional dollars to be awarded to school districts that demonstrate significant improvements in student achievement. Districts meeting specific targets can receive a 10% weighted bonus, with larger bonuses for improvements among English learners, economically disadvantaged students, and students with disabilities.
Key outcome areas include:
- Third-grade ELA TCAP proficiency (goal: 70% "on track" or "mastered")
- Graduation rates
- Postsecondary readiness
