2010 Tennessee Code
Title 49 - Education
Chapter 3 - Finances
Part 3 - Tennessee Education Finance Act of 1977
49-3-314 - Distribution of state funds.

49-3-314. Distribution of state funds.

(a)  (1)  State education finance funds shall be distributed annually to the LEAs by the commissioner according to the plan set out in subsection (b) and subject to all restrictions provided by law.

     (2)  In making distribution of state funds to the LEAs, no allowance shall be made by the state for any school in which the right to exercise authority of the respective local director of schools and the board is not as full and ample in all phases of the school program as in any other school of the LEA.

(b)  (1)  Approximately one tenth (1/10) of the estimated total of the state funds annually appropriated for the BEP shall be distributed on or about August 15, and on or about the fifteenth day of each succeeding month through April 15, and the amount of the remainder due each LEA for the school year shall be determined during June of such school year. The amount of the remainder due shall be determined on the basis of the records that each LEA has furnished the commissioner. The actual delivery of the warrant covering the final distribution to an LEA shall not be made until after all records required by the commissioner have been furnished. Before a full and complete settlement is made with any LEA for any year, all records and reports required by the commissioner shall be filed with the commissioner by the LEA.

     (2)  The disbursement of state funds annually appropriated for the school lunch program, as defined in § 49-3-313, shall be under rules and regulations prescribed by the commissioner, as approved by the state board.

(c)  In order for any LEA to receive state education finance funds as set forth in this part, the system shall meet the conditions and requirements set out in subdivisions (c)(1) and (2). In order to enforce those conditions and requirements, the commissioner may, in the commissioner's discretion, withhold a portion or all of the state education finance funds that the LEA is otherwise eligible to receive.

     (1)  No LEA shall use state funds to supplant total local current operating funds, excluding capital outlay and debt service. This subdivision (c)(1) shall not apply to a newly created LEA in any county where the county and city schools are being combined for a period of three (3) years after the creation of the LEA.

     (2)  (A)  Notwithstanding any other law to the contrary, for fiscal year 1992-1993 and any subsequent fiscal year, if state funding to the county for education is less than state funding to the county for education during the previous fiscal year, except that a reduction in funding based on fewer students in the county rather than actual funding cuts shall not be considered a reduction in funding for purposes of this provision, local funds that were appropriated and allocated to offset state funding reductions during any previous fiscal year are excluded from this maintenance of local funding effort requirement.

          (B)  It is the intent of subdivision (c)(2)(A) to allow local governments the option to appropriate and allocate funds to make up for state cuts without being subject to a continuation of funding effort requirement as to those funds for any year during which the state reinstates the funding, or restores the previous cuts, and during any subsequent year should the state fail to restore the funding cuts.

[Acts 1977, ch. 289, § 11; T.C.A., § 49-613; Acts 1984 (1st E.S.), ch. 6, § 14; 1987, ch. 280, §§ 2, 3; 1992, ch. 603, § 2; 2001, ch. 284, § 9.]