The Tennessee State Board of Education on July 30 adopted an emergency rule implementing a 2025 law that requires the state portion of per‑pupil funding from the Tennessee Investment in Student Achievement (TISA) formula to be paid directly to public charter schools. Mary Anne Dursky, a Tennessee Department of Education official, presented the rule change and the board approved it on first and final reading by roll call.

The emergency rule updates state board regulations to reflect Chapter 4 56 of the Public Acts of 2025 and to ensure the department can make the first TISA payment on or about Aug. 15, 2025. "It does not change the allocation to the public charter school," Dursky said, explaining the rule only changes which entity receives the state portion of the funds.

Board members pressed for timing and implementation details. State Board member Ryan Holt asked whether the change would alter the total dollars charter schools receive; Dursky replied it would not. Board members also asked how quickly local education agencies (LEAs) must disperse the local share. Dursky said the state will disburse the state portion to charters so it arrives on the 15th of each month with other TISA payments, and that authorizing LEAs are required to disperse the local funds at least nine times during the year and generally follow the same schedule as TISA payments.

Board discussion included expressions of concern that funds not be delayed once the state begins direct payments. Dursky and other board members said existing LEA disbursement schedules are expected to continue and that the structural change should not create additional delay. The department recommended approval of the emergency rule on first and final reading; the State Board staff concurred.

The board approved the item by roll call vote with eight ayes and no recorded nays. The rule will be filed as an emergency rule to allow implementation before the first TISA payments and a permanent version will be offered for first reading at the State Board quarterly meeting on Aug. 15, 2025; the department will hold a rulemaking hearing for public comment between first and final readings.

The changes also require the TISA guide to include an explanation of how a public charter school may dispute an alleged error in an allocation to its authorizer and the procedures the authorizer must follow. Dursky noted that federal allocations — including IDEA and ESEA funds — remain subject to appropriate federal allocation rules and are not changed by this state rule.

Board action at the special called meeting fulfilled the stated purpose for convening; the chair declared the meeting adjourned after the vote.