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2020 Op. Tenn. Att'y Gen. 1 (2020)

handle is hein.sag/sagtn0181 and id is 1 raw text is: 





                                STATE   OF  TENNESSEE
                   OFFICE OF THE ATTORNEY GENERAL

                                    January  10, 2020

                                    Opinion No. 20-01

Approval  Needed   to Change  Data  Sources  in TACIR Fiscal-Capacity Model for BEP
Funding  Formula

       Ouestion

       Whose  approval is required for changing the data sources in the Tennessee Advisory
Commission   on Intergovernmental Relations fiscal-capacity model used to equalize funding
through the Basic Education Program funding formula?

       Opinion

       Changes to the data sources in the Tennessee Advisory Commission on Intergovernmental
Relations fiscal-capacity model must be adopted by the State Board of Education and approved by
the Commissioners  of Education and Finance and Administration. Legislative approval is not
required for such changes, nor is approval of the BEP Review Committee.

                                       ANALYSIS

       The Basic Education Program (BEP) is the funding formula through which state education
dollars for the K-12 public school system are generated and distributed to Tennessee schools. The
BEP  formula has 45 separate components related to the basic needs of students, teachers, and
administrators within a school system and reflective of the various costs of providing a basic
education. The formula generates funding through these components.

       The funds generated under the BEP formula are distributed to the local school districts that
operate Tennessee's public schools. A portion of these funds is provided by the State at the
percentages set in Tenn. Code Ann. § 49-3-307(a)(2)(B).1 The remaining funds are provided by
local governments. Id.

       The  percentages in Tenn.  Code   Ann.  § 49-3-307(a)(2)(B) represent the average
percentages of state funding across all Tennessee's districts. But under the formula, districts do
not all receive the same percentage of state funding. That is because the BEP formula takes into
consideration the fiscal capacity of the various local governments, see Tenn. Code Ann. § 49-3-
307(a)(10), and allocates to each district a different percentage of state funding based on the unique
fiscal capacity of its local government. If a local government cannot generate significant tax
revenue, the State pays a greater percentage of that district's BEP funds as compared to the state

' The formula components are divided into four major categories: benefits, instructional, classroom, and non-
classroom. The State provides 70% of funding for instructional salaries and benefits, 75% of funding for classroom
components, and 50% of funding for non-classroom components. Tenn. Code Ann. § 49-3-307(a)(2)(B).

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