House Bill 348 amends Tennessee Code Annotated, Section 49-3-314, to establish new provisions regarding local government funding for local education agencies (LEAs). Specifically, it introduces a requirement that if a local government adopts a budget that includes the necessary local funding for an LEA but fails to allocate the full amount, the local government must allocate the shortfall in the following fiscal year. This provision aims to ensure that LEAs receive the funding they are budgeted for, even if the local government does not fully appropriate the funds in the initial year.

Additionally, the bill stipulates that any funds allocated to address a local funding shortfall will be classified as a nonrecurring expenditure. It also changes the method for determining the maintenance of local funding effort for subsequent fiscal years, basing it on the amount budgeted for the previous year rather than the amount actually allocated. This amendment is designed to provide more stability and predictability in funding for LEAs, ensuring they are not adversely affected by local government budgeting decisions. The act will take effect upon becoming law.

Statutes affected:
Introduced: 49-3-314(c), 49-3-314