Senate Bill 2072, known as the "Better Spending, Better Schools Act of 2026," seeks to improve financial transparency and accountability within Tennessee's education system. The bill requires Local Education Agencies (LEAs), public charter schools, and private schools to submit both planning and budgetary reports for the upcoming school year, as well as expenditure reports for the previous school year, to the Office of Research and Education Accountability (OREA) and the Department of Education by August 1 each year. The Department is responsible for creating standardized forms for these reports, which must detail budgets, revenue estimates, and projected expenditures across various categories, including instructional and personnel costs.

Moreover, the bill mandates that expenditure reports be made publicly available on the state report card, which will also display the total amount of state funds allocated to each school and the total indebtedness of the LEA or public charter school. The reports must disaggregate expenditures by type and source of revenue—local, state, federal, or private—and indicate whether the funds are recurring or nonrecurring. The legislation aims to enhance financial management and accountability in educational institutions, with the act taking effect upon becoming law for policy development, while other provisions will be implemented on October 1, 2026.