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SB 2072

Local Education Agencies - As introduced, requires each LEA and public charter school to submit an expenditure report to the office of research and education accountability in the office of the comptroller of the treasury and to the department of education by August 1 each year; requires the department to make the expenditure report submitted by each LEA and public charter school available to the public by posting the report on the state report card. - Amends TCA Title 4; Title 8; Title 49 and Title 67.

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

Requires LEAs and public charter schools to publicly report annual expenditures and next-year planning/budget data on a standardized form, posted on the state report card.

Recommended for passage, refer to Senate Calendar Committee
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Bill Summary · SB 2072

Summary of SB 2072 / HB 2121 (Better Spending, Better Schools Act of 2026)

Proposed in the 114th Tennessee General Assembly, this bill introduces standardized annual reporting requirements for local education agencies (LEAs) and public charter schools, with public posting of the data on the state report card.

Purpose and intent

  • To increase transparency and accountability of school spending.
  • To require LEAs and public charter schools to report annual expenditures and planning/budget information to state agencies.
  • To publish expenditure data publicly on the state report card and display related funding details (TISA allocations and local contributions).

Key provisions

Reporting requirements

  • Each LEA and public charter school must submit:
    • An expenditure report for the immediately preceding school year.
    • A planning and budgetary report for the upcoming (next) school year.
  • Submission deadline: by August 1 each year.
  • Recipients:
    • Office of Research and Education Accountability (OREA) in the Comptroller’s Office.
    • Tennessee Department of Education (DOE).

Standardized reporting form

  • DOE must develop a standardized form to be used by all LEAs and public charter schools.
  • Required data categories (expenditure details for the preceding year):
    1. Instructional costs (e.g., teacher and instructional aide compensation; instructional materials, technology, or software that directly supports instruction).
    2. Student support service costs (e.g., counseling, mental health, social work, other student well-being services).
    3. School administrative costs (e.g., administrator salaries; office staff; administrative operations at the school).
    4. District administrative costs (e.g., director of schools’ compensation; central office staff; board-related expenses).
    5. Operation and maintenance costs (e.g., facilities upkeep, utilities, security, custodial services, student transportation).
    6. Professional development costs (e.g., trainings, workshops, certifications).
    7. Expenditures made using direct allocations to the LEA/charter (e.g., literacy programs for K-3, tutoring for 4th grade, CTE, postsecondary readiness assessments, and charter school facilities).
  • For the planning and budgetary report (upcoming year), the bill requires disclosure of the adopted budget, projected revenues and expenditures, and the same expenditure categories listed above.

Public posting and transparency

  • DOE must make each LEA’s and public charter school’s expenditure report publicly available by posting it on the state report card.
  • The state report card must display:
    • The total amount of state funds appropriated to each LEA/charter school through the Tennessee Investment in Student Achievement (TISA) formula.
    • The required local contribution for the applicable school year.
  • In the amended version, these posted reports would be maintained on the state report card for at least two consecutive school years.

Affected entities

  • Local Education Agencies (LEAs) in Tennessee.
  • Public charter schools operating within Tennessee.
  • State agencies: Office of Research and Education Accountability (OREA) and Department of Education (DOE).

Timelines and implementation

  • Effective date: Upon becoming law for policy development and adoption purposes; general effective date for other purposes is October 1, 2026.
  • Annual cycle: Expenditure and planning/budget reports due August 1 each year, covering the immediately preceding school year (and, for the planning/budget report, the upcoming year).

Fiscal impact (summary)

  • Estimated one-time costs to implement in FY26-27: $55,000 (DOE system modifications and state report card updates: $10,000 for ePlan adjustments + $45,000 for state report card enhancements).
  • Ongoing workload: Described as routine intake and recordkeeping; no additional auditing or review by OREA beyond receiving reports.
  • Training: DOE to provide training/assistance to schools within existing resources.

Notes

  • The fiscal notes indicate minimal ongoing costs beyond initial system changes.
  • The amended version of the fiscal memorandum adds planning/budget reporting and retention of posted reports for two years, with a phased implementation focusing on policy development first and broader applicability by October 2026.

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

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