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TennesseeSB 1592114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1 and Title 6, Chapter 56, Part 2, relative to municipal budgets.

Sponsored By: Sponsor information unavailable

Signed by Governor

Municipal Government

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

School funding protected during municipal budget disputes

Beginning April 21, 2026, Tennessee municipalities with their own school agency face a default school budget rule. If municipal lawmakers and the school board fail to adopt a school budget by August 31, minimum funding applies. That minimum covers the required local share and maintenance of effort under Tennessee Investment in Student Achievement funding rules. After three straight fiscal years at this minimum, the third-year budget adds 3% of that year's required local-source school funding. The increase does not apply if the school board missed the May 1 budget proposal deadline in any of those years.

Municipal services continue with temporary spending limits

Beginning April 21, 2026, a municipality without a budget on its fiscal year's first day automatically continues last year's budget and spending ordinance. This temporary budget lasts up to two months. Funded agencies cannot commit more each month than that month's prior-year allotment. Municipal lawmakers can authorize extra commitments by ordinance, but must identify a funding source equal to the excess. The extra amount becomes part of the final budget. Municipalities can amend the temporary budget through regular budget procedures for debt payments, court-ordered costs, and other necessary changes. A one-time third-month extension requires extraordinary circumstances and approval from the Tennessee Comptroller or a designee. Municipalities must submit reasons by the second month's 15th day; the Comptroller must decide within seven business days of receiving them or requested additional information. No extension can go beyond the third month's last day. The law also repeals Tennessee Code Annotated § 6-56-210; the supplied text does not explain that section's former rules.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 132 • No: 0

House vote • 4/21/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/21/2026

Yes: 91 • No: 0

Senate vote • 2/12/2026

FLOOR VOTE: Motion to Adopt 2/12/2026

Yes: 32 • No: 0

Senate vote • 2/3/2026

SENATE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Effective date(s) 05/22/2026

    5/27/2026

  2. Pub. Ch. 1071

    5/27/2026

  3. Signed by Governor.

    5/22/2026Senate

  4. Transmitted to Governor for action.

    5/11/2026Senate

  5. Signed by H. Speaker

    5/7/2026House

  6. Signed by Senate Speaker

    4/30/2026Senate

  7. Enrolled and ready for signatures

    4/27/2026Senate

  8. Passed H., Ayes 91, Nays 0, PNV 0

    4/21/2026House

  9. Subst. for comp. HB.

    4/21/2026House

  10. Rcvd. from S., held on H. desk.

    2/19/2026House

  11. Engrossed; ready for transmission to House

    2/12/2026Senate

  12. Passed Senate, Ayes 32, Nays 0

    2/12/2026Senate

  13. Placed on Senate Consent Calendar 2 for 2/12/2026

    2/10/2026Senate

  14. Recommended for passage, refer to Senate Calendar Committee

    2/3/2026Senate

  15. Placed on Senate State and Local Government Committee calendar for 2/3/2026

    1/28/2026Senate

  16. Placed on Senate State and Local Government Committee calendar for 1/27/2026

    1/21/2026Senate

  17. Passed on Second Consideration, refer to Senate State and Local Government Committee

    1/14/2026Senate

  18. Introduced, Passed on First Consideration

    1/13/2026Senate

  19. Filed for introduction

    1/12/2026Senate

Bill Text

  • Enrolled / Public Chapter

    PDF

  • Fiscal Note

    PDF

  • Introduced

    PDF

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