CHAPTER NO. 936

SENATE BILL NO. 2227

By Atchley, Ramsey

Substituted for: House Bill No. 2212

By Davis, McDaniel

AN ACT To amend Tennessee Code Annotated, 49-3-351(d), relative to funding current year enrollment growth.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, 49-3-351(d), is amended by deleting the current text and substituting the following:

Notwithstanding any other section or law to the contrary, the basic education program of every local education agency will be calculated on the basis of prior year average daily membership (ADM), or full-time equivalent average daily membership (FTEADM), or identified and served special education students (I&S), with the following exceptions: If the LEA's current year ADM, FTEADM, and I&S, taken as a whole, exceeds by more than two percent (2%) the prior year's ADM, FTEADM, and I&S, taken as a whole, then that LEA's allocation of state funds shall be calculated on the basis of the current year ADM, FTEADM, and I&S less the first two percent (2%) by which it exceeds the prior year ADM, FTEADM, and I&S. The increased amount so calculated shall be distributed to the extent funds are appropriated for that specific purpose. If the funds appropriated for that purpose are insufficient to provide for the LEA's increased allocations, the commissioner shall apply a pro rata reduction to the increased amount each LEA is otherwise eligible to receive. In calculating the allocations under the basic education program formula, the Commissioner of Education, with the approval of the State Board of Education and the Commissioner of Finance and Administration, shall establish definitions of ADM, FTEADM, and I&S, which will be used to determine each LEA's basic education program funding. It is the legislative intent that the definitions so established approximate as closely as possible full year ADM, FTEADM, and I&S.

SECTION 2 . This act shall take effect on July 1, 1997, the public welfare requiring it.

PASSED: April 28, 1998

APPROVED this 11th day of May 1998