STATE OF EDUCATION FUNDING
Tennessee
Fair school funding systems ensure that districts, schools, and ultimately students receive significant additional funding according to their specific needs. Providing high-quality learning opportunities for students living in poverty, English learners, students with disabilities, and rural students requires additional resources.
The Tennessee Investment in Student Achievement (TISA) funding formula passed in 2022, replacing the state’s outdated resource-based funding formula. TISA will impact approximately $9B in state and local education funding starting in 2024. Each Tennessee student will qualify for $6,860 base amount and potentially additional money based on their needs through weights (e.g., students from low-income backgrounds, with disabilities, in rural schools, English learner). Also, districts can receive bonus funding based on performance on selected outcomes and based on particular programs or initiatives through direct funding.
More detail on TISA including an analysis of the individual components and weights is available through the Tennessee Alliance for Education Equity.
Learn more about
how Tennessee
funds students
According to Bellwether, “Tennessee’s new funding formula, called the Tennessee Investment in Student Achievement (TISA) Act, is designed to better meet the needs of the state’s nearly 1 million students. Passed in 2022, it replaces an outdated system that was neither adequate nor equitable…TISA replaces the BEP, a complex, decades-old funding formula that distributed state funds based on expected costs. The BEP largely ignored student needs and instead funded schools based on enrollment, staff-to-student ratios, and dozens of other line items such as textbooks. TISA, by contrast, allocates greater funding to school districts serving larger numbers of low-income students, ELs, and students with disabilities, since it costs more to support these students’ educational needs.”
| Category | Weight |
|---|---|
| TISA's FIVE WEIGHTED CATEGORIES (BASED ON STUDENT NEED) | |
| Economically disadvantaged students | 25% |
| Students living in areas of concentrated poverty | 5% |
| Students in sparsely populated communities | 5% |
| Students in smaller districts | 5% |
| Students with unique learning needs, including students with disabilities, ELs, and students with characteristics of dyslexia | 15% to 150% |
How fair is
Tennessee’s Funding?
Strong schools build strong communities, and that starts with fair and transparent funding. Our State Ratings Rubric shows how Tennessee is doing when it comes to making sure every student gets the resources they need to thrive. Using criteria grounded in research, best practices, and what we know works for students, we rate Tennessee across five key areas: whether the state funds students adequately, funds student needs equitably, funds districts appropriately, funds students transparently and effectively, and keeps public dollars in public schools.
To explore ratings across Southern states and learn more about the criteria we use, click here.
| Component | Description | Rating | Explanation |
|---|---|---|---|
| FUND STUDENTS ADEQUATELY | |||
| Funding Adequacy | Per student funding is at or above the national average ($16,645). | Red | Per student funding was $3,917 less than the national average in the 2021-22 school year. |
| Yearly Increases | Base funding for all students increases every year to account for inflation. | Green | The per-student base amount increased by 3.1% for the 2025-26 school year, from $7,075 to $7,295. |
| Progressive Tax Policies | The state maintains healthy revenue sources for schools. | Yellow | No major reforms to property, income, or sales tax in 2025. |
| FUND STUDENT NEEDS EQUITABLY | |||
| Student-Based Formula | The funding formula is primarily student-based. | Green | Primarily student-based formula. |
| Students from Low-Income Backgrounds | The state provides additional funds for students from low-income backgrounds. | Yellow | 25% weight. |
| English Learners | The state provides additional funds for English Learners. | Yellow | Three different weights based on English proficiency and years of support, ranging from 20% to 70%. |
| Students with Disabilities | The state provides additional funds for students with disabilities, based on their needs. | Green | Eight different weights based on the type of disability, ranging from 15% to 150%. |
| FUND DISTRICTS APPROPRIATELY | |||
| Cost Sharing | The state requires local governments to share the cost based on their ability to pay. | Yellow | Local governments contribute 30% on average, based on their revenue from property, sales, and other taxes. |
| Local Revenue Cap | The state limits wealthy districts from contributing excessively more than other districts. | Red | The state does not set a cap. |
| Rural Districts | Small districts and districts with few students per square mile ("sparse districts") receive additional funds. | Yellow | 5% weight for small districts and 5% weight for sparse districts. |
| Concentrated Poverty | Districts with high concentrations of poverty receive additional funds. | Yellow | 5% weight. |
| FUND STUDENTS TRANSPARENTLY & EFFECTIVELY | |||
| Formula Transparency | The funding formula is easy to understand and clearly explained. | Green | The formula is easy to understand, and the state education department publishes a clear and user-friendly school funding guide every year. |
| Funding Data | The state shares detailed, timely, and user-friendly public data on districts’ funding. | Yellow | Data is accessible and detailed, but not timely. |
| District Spending Plans | The state requires districts to share public reports about how they invest funds to meet students' needs. | Yellow | Local accountability reports do not show how specific investments relate to student groups with additional funding. |
| Formula Review | The state requires a clear, stakeholder-led process to evaluate the formula and recommend improvements. | Green | A review committee that includes legislators, educators, and district leaders will meet quarterly starting in 2026 to review the formula and provide recommendations. |
| FUND PUBLIC SCHOOLS EXCLUSIVELY | |||
| Vouchers | The state does not divert public funds to private schools through voucher programs, education savings accounts, or scholarship tax credits. | Red | The Education Freedom Scholarship program provides vouchers with near-universal eligibility and no accountability requirements. |
Who’s Who
in Tennessee
Legislature
The Tennessee General Assembly is the legislative body for the state of Tennessee. The General Assembly is a bicameral body composed of a House of Representatives with 99 members and a state Senate with 33 members. The state Senate has one standing Education Policy committee, and the House has two standing committees on education, one for Education Administration and one for Education Instruction. In 2024, the legislature will convene January 9, 2024.
State Superintendent of Education
The Tennessee Commissioner of Education is appointed by the governor. The commissioner oversees the Tennessee Department of Education and the state’s PK-12 schools.
State Board of Education
The Tennessee State Board of Education is composed of 11 members appointed by the governor. The board includes a member from each of the state’s nine congressional districts, a student member, and the executive director of the Tennessee Higher Education Commission, who serves as an ex-officio member. The board acts as the policy making body for Tennessee’s PK-12 schools
