TN SB1592

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

Three consecutive years of budget disagreements trigger a mandatory 3% increase in local school funding for the third year, unless the LEA failed to submit its budget proposal by May 1 in any of those years

Municipalities without an adopted budget by the start of the fiscal year will automatically continue operating under the prior year's budget, with agencies prohibited from spending beyond comparable monthly allotments from the previous year

Continuing operating budgets may extend for up to 2 months, or 3 months with comptroller approval upon showing extraordinary circumstances; requests for a third month extension must be submitted by the 15th day of the second month

Deletes Tennessee Code Annotated Section 6-56-210 and takes effect immediately upon becoming law