TN HB1516

Municipalities with local education agencies (LEAs) that fail to agree on a school budget by August 31 will automatically fund the LEA at the minimum level required for TISA local match and maintenance of effort compliance.

Three consecutive years of budget disagreement triggers a mandatory 3% increase in local school funding, unless the LEA failed to submit its budget proposal to the municipality by May 1 in any of those years.

Municipalities that fail to adopt a budget by the start of the fiscal year will automatically continue operating under the previous year's budget, with monthly spending capped at prior-year levels unless otherwise authorized.

Continuing budgets may remain in effect for up to 2 months, with a possible third month extension requiring comptroller approval based on extraordinary circumstances; extensions cannot exceed 3 months total.

Deletes existing Section 6-56-210 of Tennessee Code and takes effect immediately upon becoming law.