2023 Tennessee Code › Title 49 - EDUCATION (§§ 49-1-NEW — 49-50-1703) › Chapter 3 - FINANCES (§§ 49-3-101 — 49-3-2003) › Part 1 - TENNESSEE INVESTMENT IN STUDENT ACHIEVEMENT (§§ 49-3-101 — 49-3-115) › Section 49-3-105 - Base funding - Weighted allocations - Direct allocations

(a)
Each student generates a funding allocation that includes the following:
(1)
The base funding amount;
(2)
Weighted allocations for which the individual student satisfies the criteria established in subsection (b); and
(3)
Direct allocations for which the individual student satisfies the criteria established in subsection (c).
(b)
A student generates weighted allocations, none of which is mutually exclusive of another, as follows:
(1)
The weighted allocation for a student who is economically disadvantaged is twenty-five percent (25%);
(2)
The weighted allocation for a student who experiences concentrated poverty is five percent (5%);
(3)
The weighted allocation for a student who resides in a small district is five percent (5%);
(4)
The weighted allocation for a student who resides in a sparse district is five percent (5%); and
(5)
The department shall establish and categorize unique learning needs into ten (10) levels by rule based on the additional resources required to support each unique learning need. Before the department categorizes unique learning needs by rule, the department shall submit the proposed categorizations to the state board. The state board shall issue a positive, neutral, or negative recommendation for the proposed categorizations. The state board's recommendation for the proposed categorizations must be included in the filing of the rule with the office of the secretary of state. A student generates a weighted allocation for each of the student's unique learning needs as follows:
(A)
The weighted allocation for a level one (1) unique learning need is fifteen percent (15%);
(B)
The weighted allocation for a level two (2) unique learning need is twenty percent (20%);
(C)
The weighted allocation for a level three (3) unique learning need is forty percent (40%);
(D)
The weighted allocation for a level four (4) unique learning need is sixty percent (60%);
(E)
The weighted allocation for a level five (5) unique learning need is seventy percent (70%);
(F)
The weighted allocation for a level six (6) unique learning need is seventy-five percent (75%);
(G)
The weighted allocation for a level seven (7) unique learning need is eighty percent (80%);
(H)
The weighted allocation for a level eight (8) unique learning need is one hundred percent (100%);
(I)
The weighted allocation for a level nine (9) unique learning need is one-hundred twenty-five percent (125%); and
(J)
The weighted allocation for a level ten (10) unique learning need is one-hundred fifty percent (150%).
(c)
The department shall promulgate rules in accordance with the Uniform Administrative Procedures Act, compiled in title 4, chapter 5, to set the direct allocation amounts generated pursuant to this subsection (c). Before the department begins the rulemaking process, the department shall submit the proposed direct allocation amounts to the state board. The state board shall issue a positive, neutral, or negative recommendation for the proposed direct allocation amounts. The state board's recommendation for the proposed direct allocation amounts must be included in the filing of the rule with the office of the secretary of state. Direct allocation amounts are generated for the following students:
(1)
A rising fourth grade student who is determined to not be proficient in English language arts (ELA) based on the student achieving a performance level rating of "below" or "approaching" on the ELA portion of the student's most recent TCAP test;
(2)
(A)
A student assigned to the first year of a level one (1) career and technical program;
(B)
A student assigned to the second year of a level one (1) career and technical program;
(C)
A student assigned to the third year of a level one (1) career and technical program;
(D)
A student assigned to the fourth year of a level one (1) career and technical program;
(E)
A student assigned to the first year of a level two (2) career and technical program;
(F)
A student assigned to the second year of a level two (2) career and technical program;
(G)
A student assigned to the third year of a level two (2) career and technical program;
(H)
A student assigned to the fourth year of a level two (2) career and technical program;
(I)
A student assigned to the first year of a level three (3) career and technical program;
(J)
A student assigned to the second year of a level three (3) career and technical program;
(K)
A student assigned to the third year of a level three (3) career and technical program; and
(L)
A student assigned to the fourth year of a level three (3) career and technical program;
(3)
(A)
A junior or senior in high school who has not previously taken a postsecondary readiness assessment; and
(B)
A junior or senior in high school who has previously taken a postsecondary readiness assessment, but only once;
(4)
A student in any of the grades kindergarten through three (K-3); and
(5)
A student who attends a public charter school.
(d)
The funding that a student generates pursuant to this section must be administered and allocated by the department to the LEA in which the student is a member for the duration of the student's membership in the LEA, except that the funding a student generates pursuant to subdivision (c)(3) shall not be allocated to the LEA, but must be maintained by the department. A student's membership in an LEA begins on the first day of the student's membership and ends on the last day of the student's membership in the LEA, except that the membership of a student who graduates early is extended to the student's expected graduation date for funding purposes.
(e)
A portion of any annual increase in the base funding amount may be restricted by act of the general assembly for the sole purpose of providing salary increases to existing educators. If a portion of an annual increase in the base funding amount is restricted pursuant to this subsection (e), then an LEA or public charter school must use the portion restricted to provide salary increases to existing educators. The state board shall increase the minimum salary on the state salary schedule, as appropriate, based on the amount of funds restricted for salary increases, if any.
(f)
Funding allocations made pursuant to this section are based on data collected for an LEA during the immediately preceding school year.
Added by 2022 Tenn. Acts, ch. 966, s 1, eff. 7/1/2023.