Summary Of Changes To The BEP - | Nashville News, Weather & Sports

Summary Of Changes To The BEP


Change 1: Change the way we measure a county's ability to contribute toward the cost of education (Fiscal Capacity)


  • Determined by a complex statistical regression equation that attempts to

calculate a county's revenues that can be raised and applied to education

  • No longer provides the best representation of local capacity to raise revenue

for schools

  • Has begun to produce questionable results on how education dollars are


Proposed change

  • Move to a simpler method that is based on measuring two factors - property

and sales tax

  • These two factors represent more than 90% of the amount of local revenue

available for education

Change 2: Eliminate the CDF


  • The "Cost Differential Factor" is a mechanism that inflates salary dollars for certain systems
  • CDF attempts to calculate wage competitiveness in a local work force
  • Calculation is based on an analysis of 90+ industry subgroupings
  • Purpose is to evaluate the wage levels in other industries that could compete with teacher salaries in a county; has moved away from original intent
  • Only 17 systems benefit from the CDF currently

Proposed change

  • CDF is eliminated
  • Redirect funds that have gone into the CDF to funding cost of increasing state share of teacher salaries
  • Increasing state share of teacher salaries to 75% from 65%

Change 3: Increase state's share of instructional funding to 75%


  • State currently provides 65% of the funds needed to pay teachers in Tennessee. The remaining 35% is provided by local governments
  • Funding for teacher salaries represents the largest share of all BEP dollars

Proposed change

  • Adjust formula to place a greater portion of the responsibility for funding teacher salaries on the state
  • State will assume a greater share of funding for salaries - increasing from 65/35 state-local share to 75/25
  • "Maintenance of Effort" statute still applies: local systems must maintain current level of funding

Change 4: Increase unit cost for teacher pay


  • Current unit cost figure for teacher salaries is not yet reflective of "real world cost"
  • Increases financial burden on local governments to fund teacher salaries for positions outside the BEP
  • Allows for greater disparity in teacher pay among school systems

Proposed change

  • Move the unit cost for teacher pay toward a higher target that more accurately reflects "real world cost"
  • Teacher pay is reviewed annually, just as other education costs, i.e.textbooks
  • Migrate unit cost from approximately 36,700 to a target of $40,000
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