TN HB0348

Local governments that budget for required maintenance of local funding effort but fail to actually appropriate or allocate the full amount to their Local Education Agency (LEA) must provide the unfunded portion in the following fiscal year

Applies beginning fiscal year 2025-2026 and all subsequent fiscal years

Funds appropriated to correct a local funding shortfall are classified as nonrecurring expenditures

Future maintenance of effort requirements will be calculated based on the amount budgeted to the LEA, not the amount actually appropriated, preventing local governments from reducing their baseline through underfunding

Takes effect immediately upon becoming law