SB 1340 - HB 1348
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
March 13, 2025
Fiscal Analyst: Laura Moore | Email: laura.moore@capitol.tn.gov | Phone: 615-741-2564
SB 1340 - HB 1348
SUMMARY OF BILL: Requires the Tennessee Higher Education Commission (THEC) to
review and update the outcomes-based funding formula model at least once every five years to
provide incentives for institutions that offer programs leading to job placement in high-demand
fields in this state.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• Pursuant to Tenn. Code Ann. § 49-7-202(f)(1) THEC is required to develop and utilize an
outcomes-based funding formula model to ensure the fair and equitable distribution and
use of public funds among state institutions of higher education.
• As part of THEC’s regular duties, the Commission can update and comply with the
provisions of the proposed legislation within existing resources.
• The total available funding to higher education institutions will not change as a result of the
proposed legislation; however, portions of funding could shift from some institutions to
other institutions, as a result of reallocating funds from the addition of the new variable to
the funding formula.
• The precise shift in funding, if any, is dependent upon future actions taken by THEC
relative to the funding formula, and the institutions relative to programs offered that result
in job placement in high-demand fields. Any shifts in funding could vary from year to year
among the institutions; as a result, the precise fiscal impacts to the institutions cannot be
determined with reasonable certainty. However, the overall impact on state revenue and
expenditures will be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director