Tennessee

NCAI Region: Southeast

State Public Education Department: Tennessee Department of Education

State Average Per Pupil Funding: $9,605

Charter Support Organizations: Tennessee Charter School Center

Year Charter Law Enacted: 2002

2020 Model Law Ranking: 25

Estimated Number of Charter Schools: 114

Estimated Number of Charter Students: 40,524

Tennessee law requires the state department of education to annually calculate and reserve from payments to districts with one or more charter schools the amount of state funding required under the basic education program (BEP) for capital outlay as a non-classroom component and to distribute that amount directly to each charter school its per pupil share as determined by its prior year average daily membership, except that the per-pupil share of any charter school in its first year of operation must be based on the anticipated enrollment in the charter agreement. The law further provides that a district must include in the local share of funds paid to a charter school the required district match for the state funds generated under the BEP for capital outlay as a non-classroom component. The amount of these allotments vary by the district in which a charter school is located. Currently, the allotment is between approximately $215 and $315 per pupil. In 2017, a public charter school facilities program was created to award grants and loans for qualifying capital projects. $18 million was initially appropriated for this fund, $6 million each year for three years. For Fiscal Year 2020, this amount was increased to $12 million per year.
The law requires an LEA having underutilized and vacant properties to make the properties available for use by charter schools operating in the LEA. The law provides that a charter school may not be required to pay a base rent for the use of any underutilized and vacant property owned or operated by the LEA and may only be required to remit payment for the maintenance and operational costs associated with the occupancy of the property or space.
Furthermore, by October 1 of each year, the law requires any LEA in which one or more charter schools operates to annually catalog all vacant properties owned or operated by the LEA and all vacant space within any educational facility owned or operated by the LEA. The law requires the LEA to submit a comprehensive listing of all such properties and space to the state department of education, which must make an LEA’s list available to any charter school operating in the LEA or to any sponsor seeking to establish a public charter school in the LEA.
Charter school advocates in the state have negotiated directly with Shelby County Schools to provide free facilities to high-quality charter schools and at or below market rates for those high-quality charter schools that want to purchase buildings.
The law provides that charter schools that have the support of their local taxing authority are eligible to access tax-exempt financing through the Tennessee Local Development Authority.
Public charter schools may seek their own bond funding for facilities (with the chartering authority’s approval) or may have their request included with an LEA’s bond request.
According to charter school advocates in the state, it would be unconstitutional for the state to pledge the moral obligation of the state to help charter schools obtain more favorable bond financing terms.
The Tennessee Charter School Center secured credit enhancement support for the state’s charter schools via a grant through the federal Credit Enhancement for Charter School Facilities Program. This grant will allow the state to leverage $8 million for up to $50 million in support for public charter school facilities in the state.