MSCS presents $177.6 million FY‑26 budget amendment as state redirects charter TISA payments
Summary
Chief Langston told the board the November amendment reduces the district’s budget by $177,615,007 — largely because the state is now sending the TISA portion directly to charter schools — and outlined fund‑by‑fund adjustments and several new positions funded from trued‑up grants.
Chief Langston presented a November 2025 budget amendment that would reduce Memphis‑Shelby County Schools’ total budget by $177,615,007, from $2,018,542,823 to $1,840,927,816.
Langston said the largest change is in the general fund, which is decreasing by $155,057,936 primarily because the state portion of TISA (Tennessee’s school funding formula) is now being disbursed directly to charter schools rather than passing through the district. "That was included in our budget when we initially did it," Langston said, "so now we're decreasing the revenues and expenditures for the direct payment that goes to charter schools." (Chief Langston.)
The amendment also adjusts other funds: the capital improvement fund increases by $140,279 to support emergency projects funded from fund balance; the district reduced some state and federal grant estimates after year‑end truing (including a $24.8 million reduction tied to Head Start funding not received), and reduced non‑federal special revenue by about $5,017,378 while adding a $2,500,000 state special education preschool grant.
Langston said the district will add positions tied to the amendment, including an attendance and discipline adviser, two data analysts, 10 safety and security monitors and supervisory staff for a real‑time safety center, three associate emotional‑learning advisers and three liaisons in homeless services paid from a Title I set‑aside. He described the positions as responses to operational needs and to funds that became available when grants were trued up.
Board members pressed for detail on the charter funding change. Langston explained the district had operated as a pass‑through agent for charter allocations but under new state statutes the state will send the TISA portion directly to charters; the district will continue to pass local (county) portions. "You'll see we still have about $109,000,000 under the general fund, where we have the local portion," he said. "The state is sending their money directly to the charters instead of it being a pass‑through for us." (Chief Langston.)
Members asked how the district would 'true up' funding and respond if enrollment changes mid‑year. Langston and administration staff said true‑ups occur quarterly at the state level and the district monitors movements and adjusts pass‑throughs accordingly.
Next steps: Administration presented the amendment for committee review and questions; board members asked for additional detail in follow‑up materials and for any fiscal notes tied to legislative proposals that could affect district revenue.
