HB 531 - SB 514
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 1, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
HB 531 - SB 514
SUMMARY OF BILL: Beginning in the 2026-27 school year, requires each local education
agency (LEA) and public charter school to provide age-appropriate instruction to students on how
to access, utilize, and critically evaluate various artificial intelligence (A.I.) tools within the curriculum
taught by the educator. Requires the DOE to issue guidance to LEAs and public charter schools on
how to implement A.I. instruction in schools and to provide a professional development program in
A.I. education for educators.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY26-27 $205,000
FY27-28 & Subsequent Years $40,000
Assumptions:
• The DOE will be required to issue guidance to LEAs and public charter schools which
includes the following instructional components:
o Introducing basic A.I. concepts;
o Demonstrating practical applications of A.I.;
o Teaching responsible A.I. usage;
o How to access relevant A.I. tools; and
o Developing critical thinking skills to analyze A.I.
• The DOE can provide guidance to implement age-appropriate instruction with existing
staff and resources, without an increase in state expenditures.
• The DOE will also be required to provide a professional development program in A.I.
education for educators.
• In order to develop a professional development program in A.I. education for educators,
the DOE will be required to contract with a content developer.
• From discussions with the Tennessee STEM Innovation Network and based on similar
work completed, it is estimated that content development will cost $150,000.
• The DOE will also be required to expand the department's existing professional
development platform TeachALL in order to add teachers and host content. The one-time
cost to expand TeachALL is estimated to be $15,000 and the recurring cost to host a
professional development course on TeachALL is estimated to be $40,000.
• The total increase in state expenditures is estimated to be $205,000 ($150,000 + $15,000 +
$40,000) in FY26-27 and $40,000 in FY27-28 and subsequent years.
HB 531 - SB 514 2
• LEAs and public charter schools will be able to provide age-appropriate instruction to
students on A.I. within existing resources such that any local fiscal impact is estimated to be
not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director