In win for Gov. Bill Lee, Tennessee lawmakers pass major education funding overhaul

Editor's note: This story has been updated to correct the partisan breakdown of the vote. 

Despite initial skepticism from even key Republican leaders, Gov. Bill Lee has convinced the legislature to do what hasn't been done in three decades: revamp how the state funds K-12 education.

Lee's new K-12 education funding plan would add an additional $1 billion statewide to education funding and change how that money is distributed across the Volunteer State. Under the new plan the Tennessee's education pie is growing to around $9 billion in state and local funds. 

“Today is a tremendous day for Tennessee students," Lee said in a statement. "After months of engagement with thousands of Tennesseans, our state will have a new, innovative K-12 funding formula that improves public education by putting kids first. I commend the General Assembly for their partnership and desire to move Tennessee public education to a new frontier.”

The Senate passed the bill the 26-5 and in the House it passed 63-24.

The vote wasn’t purely along party lines, with six Republicans voting against the legislation and five Democrats voting in favor.

There was also last-minute drama with the legislation as Republicans in the House used their supermajority to cut off debate before the Democrats had the ability to present several amendments to the legislation when the bill was first brought up Wednesday.

Education Commissioner Penny Schwinn and Gov. Bill Lee held a second news conference in a week on the state's efforts to revamp how it funds education on Thursday, Feb. 10, 2022 at the Tennessee state Capitol in Nashville.

Rep. Bo Mitchell, D-Nashville, could be heard yelling, "You should be ashamed," as the debate was cut off. Frustration has mounted in recent days among Democratic lawmakers after House leadership shuttered debate on a number of high-profile bills.

Rep. Mark White, R-Memphis, told The Tennessean the debate was cut short because many of the amendments the Democrats wanted to present were "duplicates," and had already been discussed and voted on in the committee process. 

The House and Senate passed different versions of the bill on Wednesday. This allowed Democrats in the House a chance to comment on Thursday when the bill was brought back up for a final vote. 

Democratic opposition centered on the formula not doing enough to increase education funding in the state. 

For years, Tennessee has ranked among the bottom of states in the nation based on per pupil funding levels. Tennessee spends about $9,600 per student, while the national average is $14,500, according to the Education Law Center.

"This formula should be pushing us to spend whatever is adequate is for our kids," said Senate Minority Leader Jeff Yarbro, D-Nashville.

How is TISA designed 

The final votes this week come three months after Lee and Education Commissioner Penny Schwinn unveiled the details of the Tennessee Investment in Student Achievement

The legislation, state officials say, is a cumulation of months of collecting public feedback and reviewing policy recommendations from 18 subcommittees launched last fall to guide the process.

But education advocacy groups like the State Collaborative on Reforming Education and the Education Trust in Tennessee have been pushing for funding reform for years.

The new student-weighted funding formula replaces the Basic Education Program, or BEP, adopted in 1992 on the heels of court-ordered funding reform. 

Related:Gov. Bill Lee's education plan set for final passage after clearing House, Senate committees

More:How Tennessee's new education plan is changing the share of the pie for school districts

Critics on both sides of the aisle have called the BEP antiquated and Tennessee's largest school districts, Nashville and Memphis, have argued it is inadequate in an five-year-old lawsuit against the state.

The new formula provides a base allocation of $6,860 per student — though critics point out that is still less than what Lee's controversial school voucher program would have provided per student, which is about $7,300.

The new formula allocates additional funding, or weights, for students from specific populations, such as English language learners or students living in poverty, as well as provides direct funding allocations for things like early literacy and tutoring. Depending on the specific needs of students, per-pupil funding could move well past $10,000.

A key weight for charter school students was removed before the legislation passed, angering charter school opponents but also thwarting local communities' concerns that they would be on the hook for increased funding for charter schools. 

How will this effect local school districts

Whether local communities will have to increase their local share of the education funding pie has been the biggest source of contention for local leaders and state officials alike.

Most schools will receive additional funding under the plan. But one of the challenges the Lee administration has faced has been questions are about the share local districts will receive and how much local governments must contribute. 

State of the State:Gov. Bill Lee outlines $1B more for education, new conservative initiatives in annual State of the State

For instance, an analysis by The Tennessean found by changing the way money is divided, nearly two-thirds of school districts, although receiving more in actual dollars, are receiving a lower percentage of state funds than under the previous formula. 

Metro Nashville Public Schools representatives continue to decry the funding the district will be allocated.

Under the old formula, Nashville received roughly $1 out of $17 the state put towards education under the old formula. But under the new equation, that number drops to $1 out of $19.

An amendment was added to allow Nashville, Anderson County, Shelby County, and Williamson County to receive additional funds under a cost differential factor formula. 

Cost differential factor provides districts access to additional money if they're district has a higher cost living than the state average

The bill now heads to Lee desk for approval.

Adam Friedman is The Tennessean’s state government and politics reporter. Reach him by email at afriedman@tennessean.com.

Meghan Mangrum covers education for the USA TODAY Network — Tennessee. Contact her at mmangrum@tennessean.com. Follow her on Twitter @memangrum.

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