June 2021 Hot Topic — The BEP: How does it affect the Davidson County School System?

June 2021 Hot Topic — The BEP: How does it affect the Davidson County School System?

Hot Topics

Speaker: Katie Cour, President and CEO of the Nashville Public Foundation

Ms. Cour addressed the League about the Foundation’s efforts to raise awareness about problems with state support of public schools. The Basic Education Program (BEP) is Tennessee’s formula used to allocate state dollars to local school systems. Developed in response to a 1988 lawsuit waged against the state government by 88 rural school systems, the BEP was created to improve the equity of funding for all school systems.

In recent years, however, the formula has come under fire for providing too little funding to schools generally, particularly those in the state’s urban systems. The BEP has four basic components: Instructional Salaries and Wages, Instructional Benefits, Classroom Components, and Non-Classroom Components. Within these larger categories are many smaller ones, such as teachers, principals, assistant principals, school nurses, counselors as well as instructional supplies. As state officials are quick to point out, however, the BEP is a funding formula not a spending plan. This means that the formula generates certain amounts of money, but the local governments have some discretion in how it’s actually spent. In addition to state funding, state law requires local governments to contribute to public school funding; the required amounts vary according to each local government’s ability to pay. Overall, the state funds about 66% of the BEP’s total, and local governments fund about 33%. Because Nashville can raise more revenue than most other counties, however, it’s also expected to contribute more to its schools. At the same time, many
of Metro’s students are more expensive to educate than students in other places, because of a higher number of economically disadvantaged, non-English-speaking children and special education students. Consequently, Metro receives less state revenue, but must spend more than many other systems to educate its students.

Ms. Cour pointed out some of the BEP’s flaws particularly as they impact Metro Schools:

  • The formula consistently underestimates the resources needed to run a school. For example, the actual number of personnel generated by the formula is about 11,000 positions less than what schools actually have. Nurses and Assistant Principals are particularly underfunded.
  • The salary amount used in the formula is a state average. Because the cost of living in Nashville is so much higher than in other parts of the state, the local government must contribute much larger amounts to hire teachers than other places. Metro pays $21,000,000 for teachers’ salaries over what the BEP generates.
  • Overall, the BEP formula generates per pupil funding that is less than most other states; Tennessee ranks 44 th in the nation. The Education Law Center gives Tennessee an “F” in funding efforts for the percentage of GDP invested in education.
  • So what does the Nashville Public Education Foundation recommend that the state do to address these funding challenges?

  • Adopt the recommendations of the BEP Review Committee, an advisory body of educational professionals and state officials. Each year the committee makes suggestions to improve the funding formula, but the General Assembly rarely adopts them.
  • Migrate to a student-driven formula with an appropriate base, with weights added for more expensive students.
  • Increase funding generally. Possible sources include limiting present exemptions to the sales tax, as well as drawing from the increased revenues now collected from taxes on internet sales.
  • The BEP was a major component of the Education Improvement Act, a wide-ranging piece of legislation passed in 1992 after two years of intense discussion by the General Assembly. Perhaps it’s time to focus on Tennessee’s children and their educational needs once more. The Foundation will rolling out additional materials later this summer to raise awareness about this issue