Year One: An Initial Boost for All Districts
One of the most immediate and significant impacts of TISA's rollout was an increase in state funding for K-12 education. In its first year (2023-24), the General Assembly invested an additional $1.16 billion of state funding through the TISA formula.
✓ Key Finding from Comptroller's Report
According to the Tennessee Comptroller's Office of Research and Education Accountability (OREA), all locally administered school districts received more state money in the first year of TISA than they did in the last year of the BEP.
A June 2024 OREA survey, with a 76% response rate from district directors, found that district leaders were "generally complimentary of the transition from the BEP to TISA, citing improvements such as increased funding and effective communication efforts by the Tennessee Department of Education (TDOE)."
How TISA Reshapes District Funding
Beyond a general increase, TISA's student-based model is designed to affect districts by channeling resources more strategically:
🎯 Focus on Student Needs
TISA allocates a base amount per student plus weighted funding for students with specific needs — economically disadvantaged, unique learning needs, concentrated poverty, and small/sparse districts.
📚 Direct Priority Funding
100% state-funded direct allocations support: K-3 literacy, Grade 4 literacy support, Career & Technical Education (CTE), ACT testing, and charter school students.
📈 Outcomes Incentives
Additional funding for districts meeting specific achievement targets, such as third-grade ELA proficiency improvements. Districts can earn a 10% weighted bonus.
Navigating the Transition: Key Provisions
Several TISA provisions help districts manage the transition:
- Hold Harmless Provision: For the first four years, the state covers funding gaps for districts that would receive less under TISA than their BEP baseline (100% in year 1, declining to 25% in year 4).
- Fast-Growth Stipend: Districts experiencing allocation growth exceeding 1.25% are eligible for additional support.
- Infrastructure Stipend: Per-student funding for districts with ADM growth exceeding 2%.
Real-World Challenges Remain
While TISA provides increased state funding, it doesn't exist in a vacuum. Districts still face complex local realities:
⚠️ Example: Hamilton County Schools
Despite TISA, Hamilton County Schools faced major budget challenges for FY25-26 due to local revenues not meeting approved levels and significant increases in operational costs like healthcare. This highlights that TISA is the mechanism for state funding, while local allocations depend on property and sales tax performance.
Ongoing Concerns About Tennessee Education Funding
Despite TISA's improvements, broader concerns persist:
- National Rankings: Tennessee continues to rank around 44th nationally in per-student spending and 38th in average teacher pay.
- Teacher Pay: TISA doesn't directly mandate teacher salary minimums or address teacher shortages.
- Local Tax Burden: Concerns about whether TISA could increase local tax requirements for some communities over time.
- Maintenance of Effort: State law prevents local communities from reducing funding contributions year-over-year.
