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SB 2386

Local Education Agencies - As introduced, allows a nonprofit or for-profit entity that operates an adult high school under a contract with a local board of education to receive state and local funding in years subsequent to the first year of the adult high school's operation based on current enrollment numbers that are reported and adjusted no less than three times per year. - Amends TCA Title 49.

114th Regular Session (2025-2026) Introduced by Raumesh Akbari

Allows private nonprofit/for-profit adult high schools contracted with school boards to receive state and local funding adjusted quarterly based on current enrollment numbers.

Assigned to General Subcommittee of Senate Education Committee
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Bill Summary · SB 2386

Legislative bill overview

SB 2386 allows private nonprofit and for-profit entities operating adult high schools under contracts with local school boards to receive state and local funding based on updated enrollment data reported at least three times yearly. Currently, funding formulas may not adjust frequently enough to reflect actual student populations. The bill amends Tennessee's education code to create more dynamic funding allocation for these contracted programs.

Why is this important

Adult high school programs serve non-traditional students who may have dropped out or need flexible scheduling. More frequent enrollment-based funding adjustments could incentivize operators to maintain accurate enrollment records and allow schools to scale resources with actual student populations. However, this ties public dollars more closely to private entity performance and creates potential financial volatility for school budgets.

Potential points of contention

  • Accountability and oversight: Ensuring private operators maintain quality standards and don't inflate enrollment numbers to maximize funding requires robust auditing mechanisms that may be unclear in the bill
  • Public funding for private entities: Directing state and local education dollars to for-profit companies raises concerns about privatization and whether competitive contracting processes are sufficiently transparent
  • Funding stability: Quarterly enrollment adjustments could create unpredictable budget fluctuations for school districts, making long-term planning difficult compared to stable annual funding models

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

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