SB 2385

Present establishes the Tennessee investment in student achievement formula (TISA) as the system for funding education for K-12 public schools. As part of TISA, each student generates a funding allocation that includes (i) a base funding amount, (ii) we ighted allocations for which the individual student satisfies certain criteria, and (iii) direct allocations for which the individual student satisfies certain criteria. TISA provides for a 25% weighted allocation for a student who is economically disadv an taged. Present law defines "economically disadvantaged"" to mean a homeless, foster, runaway, or migrant student or a student eligible for free or reduced-price school meals or milk through the direct certification eligibility guidelines established in fe deral law. This bill expands the definition of ""economically disadvantaged to include a student who is (i) a medicaid beneficiary or (ii) from a household that receives benefits under the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy Fam ilies, or the Food Distribution Program on Indian Reservations. TISA ALLOCATIONS Beginning with TISA allocations for the 2027-2028 school year, this bill requires the department of education (""department"") to allocate additional funds to a local education agency (""LEA"") if an LEA's TISA allocation for the current school year is less than the LEA's TISA allocation for the immediately preceding school year, and the reduction is due to a reduction in the LEA's weighted allocations based on the amount of economically disadvantaged students. Such an additional allocation must be equal to t he weighted allocations generated by the LEA for the immediately preceding school year. However, any additional funds provided to a LEA pursuant to this provision must be solely state funded. Present law prohibits an LEA's allocated education funding from decreasing more than 5% from one year to the next year. The department is required to allocate additional funds to such an LEA in an amount to bring the decrease to 5%. Additionally, prese nt law requires the department to allocate additional funds to an LEA if their TISA allocation is less than the previous school year, and the school has experienced disenrollment. This bill requires the department to allocate additional funds based on a lo wer amount of economically disadvantaged students to an LEA before considering whether the LEA is eligible for additional allocations pursuant to this program. This bill provides that the additional TISA allocation provisions pertaining to economically disadvantaged students, as described above, are repealed on July 1, 2030. EVERY STUDENT SUCCEEDS PLAN No later than January 1, 2027, this bill requires the department to submit a request to the United States department of education to amend this state's Every Student Succeeds Act (ESSA) plan to change the definition of the economically disadvantaged subg roup to include all students who are directly certified to receive free lunch without having to complete the household application and that homeless, runaway, and migrant children and children from households that receive benefits under the Supplemental N ut rition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), the Food Distribution Program on Indian Reservations (FDPIR), or TennCare, are deemed ""categorically eligible"" for free school meals and are directly certified. ON APRIL 21, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2485, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, require the TISA review committee to complete all of the following by November 1, 2026:  Review how economically disadvantaged students have been identified in this state in each of the immediately preceding 10 years.  Review how other states identify and fund economically disadvantaged students in public schools.  Include in its annual report recommendations for how this state may revise the ways in which it identifies economically disadvantaged students to ensure this state is accurately identifying the students in need of additional resources and recommendations for how this state may better support economically disadvantaged students through the TISA."