Tennessee should increase funding for economically disadvantaged students, key committee says

The Tennessee Education Investment Board's top committee has advised lawmakers to revise the state's school funding formula to better account for economically disadvantaged students, according to a report released on Wednesday. The suggestion comes amid ongoing concerns that TISA, or the Tennessee Investment in Student Achievement funding formula, is currently undercounting these students.

TISA currently relies on data from benefits programs such as the Supplemental Nutrition Assistance Program, but the committee recommends incorporating Medicaid eligibility data to more accurately identify low-income households. By doing so, an estimated 120,000 additional students could be classified as economically disadvantaged, representing a significant increase in funding for districts.

For instance, in Anderson County, where 29% of students are currently classified as economically disadvantaged, expanding TISA to include Medicaid eligibility would raise that figure to 46% of students, resulting in a nearly 58% boost in funding for low-income students, based on estimates from EdTrust Tennessee, an advocacy group.

However, adopting this policy change would also entail higher costs for the state, estimated at $233 million annually. Tennessee would need to cover $163 million of this expense, with local governments funding the remaining $69 million. Committee members suggest that lawmakers could gradually implement the revised formula to mitigate the financial burden.

The committee further recommends that the state increase funding for school infrastructure, mental health resources, and special education prekindergarten classes. Senator London Lamar, a Memphis Democrat, voiced his support for the committee's proposals, highlighting Tennessee's low investment in public school students compared to other states. Lamar emphasized that the budget challenge is not a matter of insufficient funds, but rather a matter of prioritization.