Section 0520-12-05-.07 - FAST-GROWTH ELIGIBILITY AND CALCULATION(1) Subject to annual appropriations by the Tennessee General Assembly, the Department shall provide stipends to LEAs experiencing fast growth in accordance with T.C.A. § 49-3-107. Funds appropriated for stipends must first be allocated for fast-growth stipends pursuant to Subparagraph (1)(a). If the funds appropriated for stipends exceed the amount required to fund fast-growth stipends pursuant to Subparagraph (1)(a), then the excess funds must next be allocated to fund infrastructure stipends pursuant to Subparagraph (1)(b). If the funds appropriated for stipends exceed the amount required to fund stipends pursuant to Subparagraphs (1)(a) and (1)(b), then the Department may lower the percentage in Subparagraph (1)(a) to ensure that all funds appropriated are allocated and disbursed to LEAs. (a) An LEA that experiences growth in the total allocation generated by Students in non-virtual schools in the LEA pursuant to T.C.A. § 49-3-105 in the current year in excess of 1.25 percent (1.25%), as compared to the prior year, is eligible for a fast-growth stipend equal to the increase in allocations in excess of 1.25 percent (1.25%). If the funds appropriated are insufficient to provide for an LEA's fast-growth stipend, then the Commissioner shall apply a pro rata reduction to the stipend amount each LEA is otherwise eligible to receive. The Department shall determine which LEAs are eligible for fast-growth stipends and disburse them in accordance with the following procedural steps: 1. The Department shall run the TISA for a given school year using prior year data, excluding outcome bonuses and removing virtual schools ADM, to establish a fast-growth baseline allocation.2. The Department shall run the TISA using current school year data, excluding outcome bonuses and virtual schools ADM, at five (5) points throughout the year to meet the distribution timeline detailed in Subparagraph (a)(5) below to measure growth with each run capturing all closed reporting periods within the current school year.3. For each of the calculations conducted pursuant to Step 2, the Department shall compare the resulting TISA allocation to the baseline allocation from Step 1. A current year allocation that is more than 1.25 percent (1.25%) higher than the baseline will qualify the LEA for a fast-growth stipend.4. For each LEA eligible for a fast-growth stipend, the initial amount of the stipend shall be the state portion of the difference of the growth measure run compared to the baseline allocation in excess of 1.25 percent (1.25%).5. The Department shall distribute fast-growth stipends to eligible LEAs in separate payments of one-fifth (1/5) of the full value of the difference as derived in Steps 3 and 4. Payments will be made on or before the 15th of the month in November, January, March, May, and July. The final July calculation will be a reconciliation of the verified reporting periods of the recently completed school year averaged together, mirroring the overall TISA calculation process.6. If the value of Part 4. of Subparagraph (1)(a) totaled for all eligible LEAs is in excess of the appropriation for fast-growth stipends, then the Department shall pro-rate the value of each LEA's award to ensure all funds are awarded in proportion to LEAs' initial amounts.7. If the value of Part 4. of Subparagraph (1)(a) totaled for all eligible LEAs is less than the appropriation for fast-growth stipends and all eligible infrastructure stipends have been distributed, then the Department shall lower the threshold for eligibility for fast-growth stipends from 1.25 percent (1.25%) until such time that all available funds have been disbursed.8. The Department shall disburse fast-growth stipends with the TISA payments following each identified reporting period verification date.9. Fast-growth stipends are calculated within each academic year and are not considered recurring grants to LEAs.10. The fast-growth stipend shall be fully funded by the state and not require additional Local Contribution funds.(b) Subject to available appropriations, an LEA that experiences ADM growth in non-virtual schools exceeding two percent (2%) for each year of a three-consecutive-year period is eligible for an infrastructure stipend. The infrastructure stipend is a per-Student flat dollar amount based on the number of member Students in non-virtual schools in the LEA for each school year in excess of a two percent (2%) ADM growth in non-virtual schools from the prior school year. An infrastructure stipend in a given year must be uniform for all eligible LEAs. The Department shall determine which LEAs are eligible for infrastructure stipends and distribute them to LEAs in accordance with the following procedural steps: 1. The Department shall compare the LEA's non-virtual school ADM value used in the TISA Base Funding Amount allocations for the three (3) prior school years. If the non-virtual school ADM value increased in each of the three (3) school years by more than two percent (2%) compared to the prior school year, then the LEA is eligible for an infrastructure stipend.2. The Department shall determine how many ADMs above the two percent (2%) growth threshold each LEA reported for the current school year compared to the prior year.3. The Department shall determine each LEA's proportional share of the allocated infrastructure stipend funding by taking the total of each LEA's total ADMs determined in Part 2. of Subparagraph (1)(b) over the total of all eligible LEAs' total ADMs determined in Part 2. of Subparagraph (1)(b).4. As part of the annual budget process, the Department shall recommend to the Governor a maximum amount of funding to be made available for infrastructure stipends based on growth across the state. The final amount will be determined by the General Assembly through the appropriations process.5. The Department shall multiply each LEA's proportional share determined in Part 3. of Subparagraph (1)(b) by the overall allocation available for infrastructure stipends to set the award level for each eligible LEA.6. The Department shall issue infrastructure stipends as a single payment to eligible LEAs in October of each year in which funds are appropriated by the Tennessee General Assembly for this purpose.7. The Department shall calculate infrastructure stipends within each school year, and Infrastructure stipends are not considered recurring grants to LEAs.8. The infrastructure stipend shall be fully funded by the state and not require additional Local Contribution Funds.Tenn. Comp. R. & Regs. 0520-12-05-.07
New rules filed November 17, 2022; effective 2/15/2023.Authority: T.C.A. §§ 49-3-103(c), 49-3-107, and 49-3-115.