School budget includes teacher pay hike
DUANE CROSS
MCO Publisher•Editor
The Moore County Board of Education is advancing a bold new budget for the 2025-26 fiscal year that raises the minimum teacher salary to $50,000. However, this comes with a significant local tax increase and growing concerns about how state funding formulas are affecting rural school districts.
The proposed school budget, recently approved by the county’s Budget Committee and now awaiting full Metro Council approval, features an overhaul of the district’s teacher salary schedule. The new scale aligns all teacher salaries with the state-mandated minimum of $50,000 a year ahead of the required 2026-27 deadline.
“This is a total revamp,” Director of Schools Chad Moorehead said Monday, noting that the updated schedule meets the state’s new base salary requirements and adjusts the entire step schedule to align with state minimums. The budget also includes a 3% pay raise for support staff, mirroring raises proposed for county employees.
The Cost: A 25.72 Cent Property Tax Increase
To fund the new salary schedule and meet state-required financial benchmarks – including the state’s maintenance of effort (MOE) and fund balance tests – the district must raise its local tax rate from the current 65.27 cents to 90.99 cents, which is an increase of 25.72 cents per $100 of assessed property value.
The hike remains necessary despite an increase in state funding estimates through the Tennessee Investment in Student Achievement (TISA) formula. Officials explained that although the April TISA projections came in slightly higher than March’s, the budget conservatively uses the March estimate, anticipating potential downward revisions later in the year.
TISA’s Uneven Impact on Rural Counties
Moore County is not alone in feeling the pressure. School directors across Tennessee are expressing concern about how TISA – the state’s new education funding formula, which replaced the long-standing BEP system – is impacting rural districts.
“Between some unfunded mandates and the fact that our local penny now brings in less revenue, we were always headed toward a tax increase,” Moorehead said. “But TISA hasn’t been friendly to our district, especially in the first year.”
While some neighboring districts are waiting until the 2026-27 deadline to implement the $50,000 minimum salary, Moore County’s decision to act early mirrors a growing trend among smaller districts trying to stay competitive in teacher recruitment.
“Our salary schedule has been the lowest in the area,” Moorehead added. “So, this isn’t a negative thing.”
What is TISA?
The Tennessee Investment in Student Achievement (TISA) is the state’s K–12 public school funding formula, enacted in 2022 to replace the decades-old Basic Education Program (BEP). TISA marks a transition from a resource-based model to a student-centered approach, aiming to allocate funds based on individual student needs and characteristics.
Key Components of TISA
TISA’s funding structure comprises four main components:
• Base Funding: A foundational amount allocated per student to cover essential educational expenses, such as teacher salaries, instructional materials, and transportation. The base funding for the 2024–25 school year is $7,075 per student.
• Weighted Funding: Additional funds are provided for students with specific needs, including:
- 25% extra for economically disadvantaged students
- 5% for students in concentrated poverty
- 5% for students in small districts (fewer than 1,000 students)
- 5% for students in sparse districts (less than 25 students per square mile)
- 15% to 150% for students with unique learning needs, such as disabilities or English language learners
• Direct Funding: Targeted allocations for particular programs and priorities, including career and technical education (CTE), early literacy initiatives, and support for rapidly growing districts.
• Outcomes-Based Funding: Incentives for districts based on student performance, such as achieving proficiency in third-grade reading or meeting college and career readiness benchmarks, including ACT scores or industry certifications.
Funding Responsibilities
Under TISA, the state covers 70% of the base and weighted funding, while local governments are responsible for the remaining 30%. The state fully funds direct and outcomes-based funding components.
Impact on Rural Districts
While TISA aims to provide equitable funding, some rural districts have expressed concerns about its effectiveness in addressing their unique challenges. For instance, Moore County officials have noted that despite the formula’s intentions, their district has faced financial strain due to unfunded mandates and a decrease in local revenue per tax penny. These factors may lead to significant local tax increases needed to meet state requirements and fund mandated salary increases.
TISA represents a significant overhaul of Tennessee’s education funding, concentrating on student needs and performance. However, its implementation has revealed the complexities of guaranteeing equitable support across diverse districts, mainly rural areas.
Concerns with TISA
Opponents of the Tennessee Investment in Student Achievement (TISA) funding formula have raised several concerns since its enactment in 2022. While TISA aims to allocate education funds based on individual student needs, critics argue that it may not effectively address the challenges faced by specific districts, particularly those that are rural and underfunded.
Key Concerns Raised by Opponents
1. Insufficient Funding and Implementation Challenges
Critics contend that TISA does not adequately increase overall education funding. For instance, while the formula allows for teacher raises, the allocated funds may lead to only modest increases that fail to keep pace with inflation and rising living costs. This situation could exacerbate existing teacher shortages and hinder efforts to improve student achievement.
2. Potential Burden on Rural Districts
Rural school districts express concern that TISA’s reliance on local funding contributions could strain their limited tax bases. The formula’s change in calculating local contributions may disadvantage these districts, potentially leading to funding shortfalls and increasing pressure on local governments to raise taxes.
3. Lack of Transparency and Rapid Implementation
Some lawmakers and education stakeholders argue that TISA was implemented too swiftly, lacking sufficient time for thorough analysis and public input. They also advocate for greater transparency in how funds are allocated and utilized, stressing the need for clear guidelines to ensure that resources effectively support student needs.
4. Concerns About Charter School Funding
There is concern that TISA may divert funds from traditional public schools to charter schools, potentially undermining the financial stability of public education systems. Opponents worry that this shift could result in reduced resources for public school students, particularly in districts already facing financial challenges.
5. Accountability Measures and Oversight
The introduction of new accountability measures under TISA, such as the potential for legislative committees to oversee districts with low-performing schools, raises concerns about increased state intervention. Critics argue that these measures could lead to punitive actions rather than supportive strategies aimed at improving educational outcomes.
While TISA represents a significant shift in Tennessee’s approach to education funding, its implementation has sparked debate among educators, lawmakers, and community members. Addressing opponents’ concerns will ensure that the formula effectively supports all students, particularly those in rural and underfunded districts.
