AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 49 and Title 67, relative to education.

Tennessee schools must publish financial reports

Beginning October 1, 2026, Tennessee school districts and public charter schools face new yearly financial reporting rules. By August 1 each year, they must submit two standard reports to the state education department and comptroller’s research office. One covers the coming school year’s adopted budget, expected revenue, and planned spending. The other covers the previous school year’s actual spending. Spending categories cover instruction, staff pay and benefits, student support, school and district administration, facilities and transportation, and staff training. They also cover spending from direct funding allocations, such as literacy services, tutoring, career education, and charter facilities. Reports separate revenue and spending by funding type and source, including local, state, and federal money, and recurring versus one-time funds. They list prior-year grants and reimbursements by type and source, including private sources, and whether schools will seek them again. The department must post reports on the state report card for at least two consecutive school years. The report card must show state school funding through Tennessee Investment in Student Achievement and required local contributions. It must also show debt as of the last school day, separated by type, term, and purpose. Debt includes outstanding bonds, loans, lease-purchase agreements, and other debt instruments. Policy authority starts upon enactment; the department sets forms, standards, assistance, and submission procedures without required formal administrative rulemaking. The law does not directly change household taxes, benefits, or school eligibility.