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SB 2351

Education - As introduced, allows certain schools to be exempt from conducting separate audits of certain school funds; establishes that if a local education agency fails to submit a financial report before December 1 of the following fiscal year, then the per pupil funding allocated to the public charter school shall not decrease; changes the enrollment lottery process for public charter schools; changes the requirements for public charter school replication applications; makes various other changes. - Amends TCA Title 9; Title 49, Chapter 13; Title 49, Chapter 2; Title 49, Chapter 3 and Title 49, Chapter 1, Part 3.

114th Regular Session (2025-2026) Introduced by Bo Watson

Tennessee bill exempts certain charter schools from audits, protects their funding if districts miss reporting deadlines, and modifies charter enrollment and expansion rules.

Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 8, Nays 1 PNV 1
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Bill Summary · SB 2351

Legislative bill overview

SB 2351 modifies Tennessee's public charter school regulations by reducing audit requirements for certain schools, protecting charter school per-pupil funding if local education agencies delay financial reporting, and changing enrollment lottery and replication application processes for charter schools.

Why is this important

These changes affect how charter schools operate and receive funding, potentially streamlining their administrative burden while altering competition dynamics in school choice systems. The funding protection mechanism could shift financial risk from charter schools to traditional public school districts if reporting deadlines are missed.

Potential points of contention

  • Audit exemptions: Reducing separate audits may improve efficiency for charter operators but could raise accountability concerns about financial oversight and transparency in use of public funds
  • Funding protection mechanism: Creates potential perverse incentive for districts to delay financial reporting, and shifts financial consequences onto districts rather than charter schools for administrative failures
  • Lottery and replication changes: Modifications to enrollment and expansion processes may advantage certain charter operators or affect equitable access to school choice for families, depending on implementation details

Compiled from official sources — confirm details with the bill’s official record.

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