Committee advances rule to send state TISA funds directly to charter schools

State board staff told the joint committee the emergency rule is needed to make Public Chapter 456 effective this school year by directing the state share of TISA funding for charter students to charter schools rather than to local authorizers.

Nathan James of the State Board of Education said the rule tracks statutory language: "Public chapter 4 56 of this year requires the state share of funding, which a charter school student generates in the prior year through the Tennessee investment in student achievement or TISA formula, to be dispersed directly to the charter schools rather than to the authorizer, a local education agency," and staff described interim true‑ups in October, December, February, April and June and a final true up after expenditure reports.

Representatives asked how districts will account for funds they never physically receive; state staff said LEAs must still report the amounts their students generated and that the state will provide those figures for financial statements. Committee members also asked about potential differences in funding if a school is authorized by the Charter Commission rather than the LEA; staff said the funding a student generates does not change by authorizer, and the rule only changes the vehicle by which the state share is dispersed.

The committee voted to move the emergency rule forward with a positive recommendation; a permanent rule will be considered by the State Board on 2025‑11‑21.