Tennessee Code Title 49. Education § 49-3-351

(a) State funds appropriated for the BEP, kindergarten through grade twelve (K-12), shall be allocated pursuant to the formula devised by the state board of education pursuant to § 49-1-302 .  The programs funded through this formula are the Tennessee BEP.

(1) The formula shall also include increased funding for inclusion of a capital outlay component and cost of operations adjustments.  This requirement shall be implemented the first year of the Tennessee BEP.

(2) The Tennessee BEP shall include requirements prescribed by state law, regulations, rules and other required costs.

(3) Before any subsequent amendment or revision to the components of the formula of the Tennessee BEP shall become effective, it shall be submitted to the education committee of the senate and the education administration and planning committee of the house of representatives for review and recommendation, and shall be approved by resolutions of the senate and house of representatives, but approval shall be on the complete plan or revision and shall not be subject to amendment of the plan or revision.

(b) Notwithstanding any other law to the contrary, except for direct appropriations in support of the career ladder program, compiled in chapter 5, part 50 of this title, the only procedure for the funding of the BEP, kindergarten through grade twelve (K-12), shall be as provided in the formula prescribed in this section, and to the extent that funds are appropriated for that purpose by the general assembly.

(c) All funds generated for the BEP shall be spent on BEP components.

(d) Notwithstanding any other section or law to the contrary, the BEP of every LEA will be calculated on the basis of prior year ADM, or FTEADM, or identified and served special education students (I&S), with the following exceptions:  if the LEA's current year ADM, FTEADM, and I&S, taken as a whole, exceeds by more than two percent (2%) the prior year's ADM, FTEADM, and I&S, taken as a whole, then that LEA's allocation of state funds shall be calculated on the basis of the current year’s ADM, FTEADM, and I&S less the first two percent (2%) by which it exceeds the prior year’s ADM, FTEADM, and I&S.  The increased amount so calculated shall be distributed to the extent funds are appropriated for that specific purpose.  If the funds appropriated for that purpose are insufficient to provide for the LEA's increased allocations, the commissioner shall apply a pro rata reduction to the increased amount each LEA is otherwise eligible to receive.  If the funds appropriated for that purpose exceed the amount required to fund growth in excess of two percent (2%), then that percentage may be lowered to a percentage that may ensure that all funds appropriated are allocated and disbursed to LEAs.  An estimated fifty percent (50%) of the appropriated amount shall be distributed to such an eligible LEA by February 1, with the remainder, subject to any adjustment of numbers by the department of education that may affect the remaining amount, to be distributed by the following June 30.  In calculating the allocations under the BEP formula, the commissioner, with the approval of the state board of education and the commissioner of finance and administration, shall establish definitions of ADM, FTEADM, and I&S, which will be used to determine each LEA's BEP funding.  It is the legislative intent that the definitions so established approximate as closely as possible full year ADM, FTEADM, and I&S.


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