TN HB2182

Counties and municipalities experiencing population-based funding reductions will have cuts phased in over five years rather than implemented immediately.

First year of population loss limits funding reduction to 20% of the total projected loss, increasing by 20% each subsequent year until fully aligned with certified population.

Department of Revenue must apply a mitigation factor ensuring no local government realizes more than 20% of its total annual population-based revenue loss in the first year.

If a jurisdiction's population increases during the phase-in period, the department must recalculate the base loss and adjust accordingly.

Effective date: July 1, 2026.