SB 583 - HB 1004
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 13, 2025
Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564
SB 583 - HB 1004
SUMMARY OF BILL: Requires the Department of Education (DOE) to award grants to
eligible local education agencies (LEAs) to provide after school programs for eligible students
enrolled in the eligible LEA. Each eligible LEA that receives a grant must submit an annual report
to the relevant committees of the General Assembly. Establishes that an LEA that receives a grant
may apply to renew the grant in a subsequent year. Requires the DOE to, subject to available funds,
award a grant to an LEA that received a grant in the prior year, even if the LEA is no longer eligible
because the county juvenile offense rate for the county in which at least one public school is located
is not at least 10 percent higher than the statewide juvenile offense rate.
FISCAL IMPACT:
STATE GOVERNMENT
EXPENDITURES General Fund
FY25-26 > $282,500
FY26-27 & Subsequent Years > $272,500
LOCAL GOVERNMENT
REVENUE Permissive
FY25-26 & Subsequent Years > $272,500
EXPENDITURES Permissive
FY25-26 & Subsequent Years > $272,500
Assumptions:
• The proposed legislation requires the DOE to award grants to LEAs to provide after
school programs for public school students in grades kindergarten through 12. The grant
funds may be used to:
o Expand existing after school programs for eligible students;
o Provide new after school programs for eligible students; or
o Partner with an eligible nonprofit organization for the organization to operate after
school programs for eligible students.
• An “eligible LEA” is one that operates or serves as the charter authorizer for at least one
public school located in a county for which the county juvenile offense rate is at least 10
percent higher than the statewide juvenile offense rate.
SB 583 - HB 1004 2
• According to data from the 2022 Youth Crime Data Snapshot by the Tennessee Commission
on Youth, there are three LEAs that could meet the criteria: the Tennessee Charter School
Commission, Memphis-Shelby County Schools, and Metro Nashville Public Schools.
• Based on the DOE’s previous extended learning grants (21st Century Community Learning
Centers and Lottery for Education Afterschool Programs), LEAs will need approximately
$1,750 per participating student if they are providing transportation and $1,500 per
participating student if no transportation is provided.
• It is estimated that the average school will serve approximately 40-50 students. The cost for
each school grant is estimated to range from $60,000 to $87,500 which includes costs for
staffing, program administration, materials and supplies, and transportation.
• It is unknown precisely how many school grants will be awarded. To award a grant for one
after school program in each eligible LEA, the increase in state expenditures is estimated to
be $262,500 ($87,500 x 3) in FY25-26 and subsequent years.
• According to the DOE, in order to operate this program in the same manner as current
extended learning programs, there will be an additional recurring cost of $10,000 to contract
with an external organization to provide program data and evaluation services.
• The DOE will be required to develop new instruments in the grant management system to
manage the grant application and annual report. The one-time increase in state expenditures
is estimated to be $10,000 in FY25-26.
• The total increase in state expenditures is estimated to exceed $282,500 ($262,500 +
$10,000 + $10,000) in FY25-26 and exceed $272,500 ($262,500 + $10,000) in FY26-27 and
subsequent years.
• The total permissive increase in local revenue and expenditures is estimated to exceed
$272,500 in FY25-26 and subsequent years.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director