HB 676 - SB 705 FISCAL NOTE Fiscal Review Committee Tennessee General Assembly February 28, 2025 Fiscal Analyst: Alan Hampton | Email: alan.hampton@capitol.tn.gov | Phone: 615-741-2564 HB 676 - SB 705 SUMMARY OF BILL: Requires the Department of Education (DOE) to provide teachers of state special schools eligibility to accumulate and use leave in the same manner as public school teachers and eligibility for paid family leave in accordance with Tenn. Code Ann. § 8-50-814. Requires any percentage increase to the salary schedule of a local education agency (LEA) where a state special school is located to also result in an equivalent percentage increase to the salary schedule for that state special school. If the General Assembly appropriates monies in the budget for salaries, raises, bonuses, or other incentives for public school teachers and other licensed personnel employed in an LEA or public charter school, requires the DOE to expend an equivalent amount for the teachers and other licensed personnel employed in the state special schools managed and controlled by the DOE. FISCAL IMPACT: STATE GOVERNMENT Expenditures General Fund FY25-26 & Subsequent Years $950,800 Assumptions: • There are four state special schools which include: the Tennessee School for the Blind, the Tennessee School for the Deaf, the West Tennessee School for the Deaf, and the Alvin C. York Agricultural Institute. • Current law requires teachers in the state special schools to be paid on a comparable basis with teachers in the geographic districts where the state special schools are located. • The state special schools have 196 positions that utilize the teacher salary schedule pursuant to Tenn. Code Ann. § 49-3-306(a)(3). • Pursuant to Tenn. Code Ann. § 49-3-306(a)(3), the state salary schedule for teachers must establish a base salary that is no less than: o $42,000 for the 2023-2024 school year; o $44,500 for the 2024-2025 school year; o $47,000 for the 2025-2026 school year; and o $50,000 for the 2026-2027 school year • The current salaries and benefits for these 196 positions is estimated to be $19,707,315 ($14,817,530 salary + $4,889,785 benefits). • Based on historical salary increases for teachers in the geographic counties where the state special schools are located, including the required salary increases for FY25-26, in order to HB 676 - SB 705 2 keep state special schools on a comparable scale with teachers in the geographic region, the increase in state expenditures is estimated to be $950,800 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