SCORE report finds Tennessee’s new school funding formula has had a ‘positive impact’ on schools

A stock image of money 

A new memo from the State Collaborative on Reforming Education (SCORE) says the Tennessee Investment in Student Achievement (TISA) school funding formula has had a “positive impact” on schools’ efforts to improve student outcomes.

According to the memo, the historic passage of the TISA legislation in 2022 led to a recurring $1 billion additional investment in Tennessee’s K-12 public education system and a new student-based funding model to replace the state’s old K-12 funding formula known as the Basic Education Program (BEP), which had been in place for 30 years. The report added that the TISA formula is more transparent and aligned to student need, and increases overall funding for schools. The current funding formula is also less complex than the BEP funding formula, the memo said.

“Tennessee should remain committed to the TISA funding formula as a foundational policy that supports success for all students in school, careers, and life,” an email to Tennessee Firefly about the memo read.

The memo noted that under the current formula, schools can receive “outcome bonuses” that incentivize district performance, among other improvements. It said districts that achieve specific success targets can receive a 10 percent weighted bonus, as well as larger bonuses for districts that improve performance among English learners, economically disadvantaged students, and students with disabilities.

The report added that other important components of TISA include its support for educator salaries, as well as giving the General Assembly the authority to set aside portions of base funding for improving teacher salaries. In addition, TISA includes a provision to ensure that no district experiences a decline of more than 5 percent in total TISA allocations and enables schools to invest more in college and career readiness programming.  

“The BEP was created at a time when only one-fifth of U.S. jobs required a college degree. Today, more than half of jobs in Tennessee require some type of postsecondary credential beyond a high school diploma. Tennessee needed explicit funding for college and career readiness to reflect the demands and realities of the state’s education system and economy,” the memo added.

The memo said education policymakers should take steps in the years ahead to “maximize the potential of innovative TISA components, such as career and technical education direct funding and outcome bonuses. It also recommended giving education leaders more guidance around data systems and expenditure reporting, as well as efforts to “engage more stakeholders to develop strategic budgeting approaches that respond to unique district and school needs.”

“These strategies for supporting and strengthening TISA implementation will ensure the funding formula continues to further Tennessee’s goal of equipping students for lifelong success,” the memo read.