TOSS Legislative ConferenceTOSS Legislative Conference Feb. 4, 2014Feb. 4, 2014

FY15 Budget Tennessee’s FY15 budget is very tight  $260 million in new money, $170 million short of revenue projections  Mandatory growth takes up all of the revenue growth and then some: TennCare: $180 million BEP growth: $47 million Health insurance costs for state employees: $40 million Rainy day fund contribution: $40 million  As a consequence, most agencies seeing some cuts in spending (including net loss of 664 state government positions) 2

FY15 Education Spending  $63 million salary increase for teachers 2 percent increase in state contribution to BEP salary component (in comparison, state employees to receive 1 percent increase) $14.5 million for salary equity  $47 million in BEP growth  Funding for additional grant programs, including $3 million in non- recurring funds for Family Resource Centers 3

BEP Task Force  New task force to review BEP formula over the next year  Precipitated by timing (7 years since last formula change) and general unease with current formula  Task force limited to looking at how to account for funding within current formula, not proposing significant new expenses 4

Opportunity Scholarships 5

Other Legislative Issues  Common Core State Standards and PARCC  Data  Textbook commission  Licensure and evaluation 6

Additional Major Issues  Higher education initiative  focus and accountability  accountability 7