TN State Board of Education

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The Basic Education Program (BEP)

Overview of the Basic Education Program (BEP)
The Basic Education Program (BEP) is the funding formula through which state education dollars are generated and distributed to Tennessee schools. Click here for a general and non-technical overview of the BEP.

The BEP "Blue Book"
The Board annually reviews and approves school system allocations generated through the BEP formula. The BEP Blue Book (updated for 2008) is a commonly referenced document outlining, in technical detail, the major categories and components of the BEP.

The BEP Review Committee
Tennessee Code Annotated 49-1-302(4)(a) specifies that the State Board of Education shall establish a review committee for the Tennessee basic education program (BEP). This committee is directed to meet at least four times a year and regularly review the BEP components including the preparation of an annual report on or before November 1 of each year.

Copies of the most recent reports and minutes are available below.

2007 BEP Review Committee Annual Report

2007 Total Teacher Compensation Analysis:
Total Teacher Compensation Analysis
Regional Salary Disparity Analysis

Governor Bredesen's "BEP 2.0" speech (May 3, 2007). You can also listen to a portion of the address here.

FY 2007 BEP Allocations

2006 BEP Review Committee Annual Report
2006 Report Summary (Presentation)

Oct. 23, 2006 BEP Review Committee Meeting Minutes (FINAL)
Oct. 11, 2006 BEP Review Committee Meeting Minutes (FINAL)
Sep. 28, 2006 BEP Review Committee Meeting Minutes
Aug. 30, 2006 BEP Review Committee Meeting Minutes

Apr. 2006: BEP Resolution presented to the Board, with the approval of the commisioners of education and finance and administration. This resolution was presented to the legislature for approval.

Jan. 2006 Presentation to Select Oversight Committee
2005 BEP Review Committee Annual Report

October 17 , 2005 BEP Review Committee Meeting Minutes
September 16, 2005 BEP Review Committee Meeting Minutes
August 24 , 2005 BEP Review Committee Meeting Minutes
July 21, 2005, BEP Review Committee Meeting Minutes

2004 BEP Review Committee Annual Report

General Overview of the BEP

The funds generated by the BEP are what the state has defined as sufficient to provide a basic level of education for Tennessee students. This basic level of funding includes both a state share of the BEP and a local share of the BEP.
The BEP has three major categories (instruction, classroom, and non-classroom), each made up of separate components related to the basic needs of students, teachers, and administrators within a school system.
Student enrollment (average daily membership) is the primary driver of funds generated by the BEP.
There are 45 BEP components most of which are based on student enrollment (ADM). For example, students per teacher, assistant principals per school, or dollars per student for textbooks.
Unit cost adjustments (salary, health benefits, insurance) are essential to maintaining a similar level of funding from year to year, due to inflation. For example, in 2006 over 100 million new state dollars were required to maintain full funding of the BEP.
The funds generated by the BEP are divided into state and local shares for each of the three major categories (instructional, classroom, non-classroom).
The state and local share for each school system is based on an equalization formula that is applied to the BEP. This equalization formula is the primary factor in determining how much of the BEP is supported by the state vs. the local district.
The equalization formula is driven primarily by property values and sales tax, applied at a county level. For example, the state and local equalization shares for County System A would be the exact same state and local shares for City System A, within the same county.
All local school systems are free to raise additional education dollars beyond the funds generated by the BEP.

Contact Information

Art Fuller, Research Associate
State Board of Education
art.fuller@state.tn.us
(615) 532-2822