HB 401

Present law provides that t he Tennessee investment in student achievement formula (TISA) is a student-based funding formula established as the system for funding education for K-12 public schools. This bill adds that TIS A also funds pre-K students with special education needs and peer models. Present law requires t he comptroller of the treasury, through the comptroller's office of research and education accountability, to review and study TISA to determine the effectiveness of state expenditures on K-12 education. This bill requ ires the comptroller to review and study state expenditures on education in general, instead of only K-12. FAST-GROWTH STIPENDS Present law provides that a local education agency ( LEA ) that experiences growth in excess of 1.25%, as compared to the prior year, is eligible for a fast-growth stipend equal to the increase in allocations in excess of 1.25%. Subject to available appropriations, an LEA that experiences a verage daily membership ( ADM ) growth in non-virtual schools exceeding 2% for each year of a three-consecutive-year period is eligible for an infrastructure stipend. The infrastructure stipend is a per-student flat dollar amount based on the number of member students in non-virtual schools in the LEA for the current school year in excess of a 2% ADM growth in non-virtual schools from the prior year. This bill provides that a n LEA's receipt of TISA funding in any school year for pre-K students with special education needs and peer models who were enrolled in the LEA's pre-K program in the imme diately preceding school year must not affect the amount of state funds the LEA receives for fast-growth stipends. For purposes of this bill, a "pre-K student with special education needs "" i s a child between three and five with a disability, who is enroll ed in a pre-K class in an LEA or public charter school with the peer models required to educate the child in the least restrictive environment, and for whom the LEA or public charter school must provide a free appropriate public education, pursuant to the Individuals with Disabilities Education Act . ""Peer model"" means a child without a disability who is in the same classroom as a pre-K student with special education needs . APPLICATION This bill applies to the 2025-2026 school year and each subsequent school year ."