SENATE BILL 614
By Hensley
HOUSE BILL 348
By Hurt
HB0348
001003
- 1 -
AN ACT to amend Tennessee Code Annotated, Section
49-3-314, relative to education finance.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 49-3-314(c), is amended by adding
the following as a new subdivision:
(5)
(A) Notwithstanding a law to the contrary, for fiscal year 2025-2026 and
any subsequent fiscal year, if a local government adopts a budget that includes
the maintenance of local funding effort required under this section but fails to
appropriate or allocate the full amount budgeted to the LEA, then the local
government shall appropriate and allocate the unfunded portion to the LEA in the
following fiscal year.
(B) Funds appropriated under subdivision (c)(5)(A) to correct a local
funding shortfall must be considered a nonrecurring expenditure under
subdivision (c)(4). The maintenance of local funding effort required for a fiscal
year following a fiscal year in which the local government failed to appropriate or
allocate the full amount budgeted to the LEA must be determined based on the
amount budgeted to the LEA for the previous fiscal year instead of the amount
actually appropriated or allocated to the LEA by the local government.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.