Tennessee Senate Bill SB1783

Tennessee 2023-2024 Regular Session

• Introduced: 1/22/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 49; Title 49, Chapter 4 and Title 49, Chapter 7, relative to Tennessee Promise scholarship students.

Impact

The bill is expected to affect how completion grants are funded within the Tennessee Promise initiative. By creating a dedicated special account for these grants, it aims to provide a more reliable funding stream that ensures minimum balances are maintained for the program's longevity. Notably, funds from the account are earmarked solely for completion grants, indicating a focused approach to assisting students with their educational expenses, particularly in the later stages of their college experience.

Summary

Senate Bill 1783 seeks to amend existing Tennessee Code regarding the Tennessee Promise scholarship program by altering the allocation of funds from privilege taxes collected from sports wagering. Specifically, the bill reduces the percentage of tax revenue to be distributed for scholarships and establishes a completion grant special account intended to enhance financial support for students pursuing their education under this scholarship program. The adjustments include a shift from collecting 80% of the privilege tax to 75%, thereby impacting the overall budget for educational grants.

Sentiment

The reception of SB1783 among legislators and stakeholders reflects a measured optimism. Supporters argue that by establishing a dedicated account for completion grants, the bill will provide more structured support for students, thereby promoting higher education attainment in Tennessee. However, there are concerns raised about the reduction in tax revenue allocation, which could limit the resources available for scholarships, especially for those relying on these funds to complete their education.

Contention

Points of contention surrounding SB1783 primarily focus on the implications of reducing the percentage of privilege tax directed towards educational funding. Critics argue that while the formation of a special account is a positive step, the reduced allocation could hinder the program's effectiveness, particularly in meeting the needs of students requiring financial assistance. The disagreement highlights broader concerns regarding educational funding in Tennessee and how best to balance state revenue generation from sports wagering with the state's commitment to facilitating higher education access.