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HB 2177

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 William Slater

Tennessee bill exempts charter schools from certain audits, protects their funding from reporting delays, and revises enrollment and replication processes.

Received from House, Passed on First Consideration
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Bill Summary · HB 2177

Legislative bill overview

HB 2177 modifies Tennessee's public charter school regulations by exempting certain schools from separate fund audits, protecting charter school funding if local education agencies delay financial reporting, and altering enrollment lottery and replication application processes. The bill amends multiple sections of Tennessee's education code governing charter schools and public education funding.

Why is this important

Charter school funding and operational oversight directly affect educational access and accountability in Tennessee. Changes to audit requirements, enrollment processes, and funding protections could influence charter school expansion, parental school choice options, and financial transparency in public education systems.

Potential points of contention

  • Audit exemptions: Reducing separate audits for certain school funds may lower oversight costs but could decrease financial transparency and accountability
  • Funding protection delays: Guaranteeing charter school funding even when districts miss reporting deadlines may remove incentives for timely financial compliance from local education agencies
  • Lottery process changes: Altering enrollment procedures could affect equitable access claims and may advantage certain student populations depending on implementation details

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

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