State Revenue

For fiscal year 2005, over $125 million of the total operating revenue of the Board comes from the State of Tennessee. The largest component of State funding is the allocation received under the Basic Education Program (BEP). The BEP was created by the Education Improvement Act of 1992 as a means through which State school funds are allocated in order to achieve fiscal equalization among school districts. The membership of each district, as well as the ability of the local economy to pay for public education, are important factors in the BEP funding formula.