TOSS Legislative Conference

Feb. 4, 2014

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FY15 Budget

Tennessee’s FY15 budget is very tight

$260 million in new money, $170 million short of revenue projections

Mandatory growth takes up all of the revenue growth and then some:• TennCare: $180 million• BEP growth: $47 million• Health insurance costs for state employees: $40 million• Rainy day fund contribution: $40 million

As a consequence, most agencies seeing some cuts in spending (including net loss of 664 state government positions)

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FY15 Education Spending

$63 million salary increase for teachers• 2 percent increase in state contribution to BEP salary

component (in comparison, state employees to receive 1 percent increase)

• $14.5 million for salary equity

$47 million in BEP growth

Funding for additional grant programs, including $3 million in non-recurring funds for Family Resource Centers

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BEP Task Force

New task force to review BEP formula over the next year

Precipitated by timing (7 years since last formula change) and general unease with current formula

Task force limited to looking at how to account for funding within current formula, not proposing significant new expenses

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Opportunity Scholarships

Governor’s Proposal Senate Proposal

Bill number SB 0196/HB 0190 SB 2025/HB 1908

Student eligibility

Zoned to attend or enrolled in school in the bottom 5% of overall achievement, and eligible for free or reduced price lunch

Zoned to attend or enrolled in school in the bottom 10% of overall achievement, and eligible for free or reduced price lunch

If spaces remain, open to all students located in counties containing at least one school in the bottom 10%

School eligibility

Category I, II, III non-public schools Category I, II, III, IV non-public schools

Number of scholarships

2014-15: 5,000 scholarships2015-16: 7,500 scholarships2016-17: 10,000 scholarships2017-18 and after: 20,000 scholarships

2014-15: 5,000 scholarships2015-16: 10,000 scholarships2016-17 and after: 20,000 scholarships

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Other Legislative Issues

Common Core State Standards and PARCC

Data

Textbook commission

Licensure and evaluation

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Additional Major Issues

Higher education initiative

2013-14 focus and accountability

2014-15 accountability