SB 1020 - HB 1162
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 22, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
SB 1020 - HB 1162
SUMMARY OF BILL: Authorizes a public charter school to operate outside the geographic
boundaries of the local education agency (LEA) in which the public charter school is authorized to
locate in its charter agreement under certain conditions.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• The proposed legislation authorizes a public charter school to operate outside the
geographic boundaries of the LEA in which the public charter school is authorized to
locate in its charter agreement, if the public charter school:
o Needs additional space, facilities, or buildings to serve the students of the public
charter school; and
o Enters into a written agreement for the lease of buildings or facilities, or portions
thereof, that are located in the same county as the LEA in which the public charter
school is authorized to locate in its charter agreement; provided, that the buildings
or facilities, or portions thereof, leased by the public charter school are used for
educational purposes.
• The proposed legislation further establishes that a public charter school that:
o Operates outside the geographic boundaries of the LEA specified in its charter
agreement is not open to students residing within the geographic boundaries of the
LEA in which the public charter school is operating unless the LEA has a policy
allowing out-of-district enrollment; and
o Is authorized by the Achievement School District is prohibited from enrolling
additional students residing within the geographic boundaries of an LEA in which
the public charter school is operating.
• It is assumed that any local expenditures resulting from the proposed legislation are in lieu
of expenditures that a public charter school would otherwise incur by acquiring additional
space, facilities, or buildings to serve the students of the school.
• It is further assumed that expanding the boundaries in which an existing charter school may
operate will not increase the number of charter schools. Any change in the average daily
membership in charter schools will be accounted for in the Tennessee Investment in
Student Achievement (TISA) funding formula as is any annual fluctuation in average daily
membership in public schools.
SB 1020 - HB 1162 2
• Public charter schools will be able to comply with the enrollment and operational
requirements within existing resources such that any fiscal impact is estimated to be not
significant.
• The expanded operating authority for public charter schools will not affect the TISA
funding formula.
• No impact to state government.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director