Funding is a critical factor in the success of public schools. In Tennessee, cities and counties predominantly fund school facility needs through property and sales tax revenues. However, the introduction of the Tennessee Investment in Student Achievement (TISA) public school funding formula represents a significant shift, marking the first public education funding model update in over 30 years. TISA transitions the state to a student-based funding approach designed to address the unique needs of every learner.
Previously, Tennessee's funding formula, the Basic Education Program (BEP), took a one-size-fits-all or “flat rate” approach. In contrast, TISA offers a specialized breakdown, allocating funds based on specific student needs rather than a uniform amount per student. Districts are responsible for 30% of the base and weighted funding amounts generated by TISA, while the state provides the other 70%. However, for direct funding and outcomes components, the state provides 100% of the funds.
Navigating the new TISA funding formula is a group endeavor. Our team at Wold seeks to be a resource for districts across Tennessee to help stakeholders understand the impact the formula may have on how school facilities maximize student experiences. Below, we’re sharing how the four components of TISA funding can influence districts’ decisions on long-term facility maintenance and engineering projects.
Under TISA, base funding provides each student with a foundational amount to ensure they receive educational support by meeting schools’ core operational needs. Base funding covers essential educational expenses, including teacher salaries, school facilities, materials and transportation. Determined by Tennessee’s General Assembly (GA), this consistent per-student funding promotes predictable budgeting and resource allocation, helping districts plan for routine expenses and maintenance.
For the 2024-25 TISA allocations, the base funding amount is $7,075 per Average Daily Membership (ADM). One of the core metrics of the TISA formula that informs most funding sources, ADM considers a student’s enrollment and daily class assignment for each of nine reporting periods throughout the year rather than measuring raw numbers of students. In each period, a student’s enrollment can be counted with a value of 0.5, 0.75 or 1 depending on when they are enrolled and the rigor of their schedule.
Recognizing that some students require more resources than others, weighted funding takes needs into account for all students, including those who are economically disadvantaged, experience concentrated poverty or attend school in a small or sparse district, and adjusts the funding amount accordingly. Additionally, support for students who have unique learning needs, including disabilities, English learner status or characteristics of dyslexia, will affect a school’s funding formula. Each category has a different weight in total funding per child, ensuring districts with higher concentrations of students with specialized needs or abilities can support them. Weighted funding allows districts to create more tailored educational environments and invest in specialized staff, adaptive materials and targeted programs to better address students’ needs. To calculate the funding value of the weight, the weight percentage for a given category is multiplied by the base funding amount.
Some educational programs and initiatives, such as Charter School facilities, may require additional financial support. Direct funding seeks to address these needs by offering flat dollar figures for key programs, unlike weighted funding, which adjusts the base amount. Direct funding provides $500 per ADM for each K-3 student and rising 4th grader in need of additional literacy support. This component also supports investment in postsecondary education, including administration of the ACT postsecondary readiness assessment with $93 for each test and enrollment in CTE programs with $5,000 per CTE ADM.
Schools may receive additional support through outcomes funding, which incentivizes academic achievement by rewarding schools for meeting specific benchmarks. By linking funding to educational outcomes, districts are encouraged to prioritize and achieve higher performance. For the coming school year, these benchmarks include success in English Language Arts (ELA) for elementary schoolers, proficiency in ELA and math for middle schoolers and scores for Early Post-Secondary Credit Opportunity tests. Based on achievement of these benchmarks and students’ status for being economically disadvantaged, English learners or having disabilities, students can generate up to 20% of the base amount in additional funds.
As school officials look to maximize funds and create supportive educational environments, the TISA funding formula is a crucial resource in financial planning. Our team leverages expertise in funding opportunities like this to help fund facilities maintenance projects as we work with districts to identify long-term needs and help school officials align the district’s goals with the facilities that support them. By conducting comprehensive facility assessments and educational adequacy reports, we help districts determine how to get the most out of their spaces during maintenance or renovation projects while continuing to provide excellent educational environments for students, teachers and other school community members.
Additionally, our in-house engineering team has extensive expertise to ensure all building aspects are taken into consideration throughout the process. Wold knows efficiency underscores the facility maintenance process – from operating sustainable engineering systems to ensuring efficient use of funds – and we look forward to helping districts across the state strategize around the new funding formula.
For more information on how Wold can assist with facility maintenance planning, click here to read more about our process. Please don’t hesitate to reach out to our Brentwood or Jackson offices to further discuss how our team can support your district’s architecture and engineering needs within the new TISA funding formula.
