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SB 1019

Education, Dept. of - As enacted, requires the department to allocate the state share of the Tennessee investment in student achievement formula funds generated by student members of a public charter school in the prior school year directly to the public charter school instead of allocating such funds to the local education agency in which the public charter school is located. - Amends Chapter __ of the Public Acts of 2025 (1st Ex. Sess. – SB 6001 / HB 6004); and TCA Title 49, Chapter 13 and Title 49, Chapter 3.

114th Regular Session (2025-2026)

Tennessee will now send state education funding directly to charter schools instead of through local districts, based on student enrollment numbers from the prior year.

Pub. Ch. 456
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Bill Summary · SB 1019

Legislative bill overview

SB 1019 changes how Tennessee distributes state education funding for charter school students. Rather than sending charter school funding through local school districts, the state will now allocate the Tennessee Investment in Student Achievement (TISA) formula funds directly to charter schools based on their prior-year enrollment.

Why is this important

This affects how roughly $5-7 billion in annual education funding flows through Tennessee's school system. Charter schools gain direct access to state dollars without district intermediaries, potentially accelerating their growth, while traditional public school districts lose funding proportional to students who leave for charters—creating budget pressures for districts serving remaining students.

Potential points of contention

  • District financial strain: Local districts lose per-pupil funding when students enroll in charters, potentially forcing cuts to programs, staff, or services for remaining students with less flexibility to adjust
  • Equity and oversight concerns: Direct funding bypasses district oversight mechanisms; charter schools may vary in accountability, special education services, or compliance with state standards
  • Charter school expansion incentives: The funding change removes a financial barrier to charter growth, which some view as healthy competition and others as destabilizing public education infrastructure

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

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