House Bill 1516 amends Tennessee Code Annotated to establish new provisions regarding municipal budgets, particularly for municipalities that have established a Local Education Agency (LEA). The bill stipulates that if the municipal legislative body and the governing body of the LEA cannot agree on a budget by August 31, the LEA's budget will default to the minimum required to meet local match and maintenance of effort provisions under the Tennessee Investment in Student Achievement (TISA). Additionally, if this impasse occurs for three consecutive fiscal years, the LEA's budget must include a mandatory increase of three percent from local sources, unless the LEA fails to submit its budget proposal by May 1 during any of those years.

Furthermore, the bill introduces a provision that allows a municipal legislative body to continue using the previous fiscal year's operating budget if a new budget is not adopted by the start of the new fiscal year. This continuing budget can remain in effect for up to three months, subject to approval from the comptroller of the treasury under extraordinary circumstances. The bill also deletes Section 6-56-210 from the current law, which may have contained previous budgetary provisions. The act is set to take effect upon becoming law.

Statutes affected:
Introduced: 6-56-210