Rules & Regulations of the State of Tennessee
Title 0520 - Education
Subtitle 0520-12 - Department of Education Office of the Commissioner
Chapter 0520-12-05 - Tennessee Investment in Student Achievement (TISA)
Section 0520-12-05-.09 - COST DIFFERENTIAL FACTOR ELIGIBILITY AND CALCULATION

Current through September 24, 2024

(1) Subject to annual appropriations by the Tennessee General Assembly and in accordance with T.C.A. § 49-3-108(d)(2), the Department shall disburse Cost Differential Factor (CDF) grants to an LEA located in a county in which the cost of living is greater than the statewide average. An LEA is deemed located in a county in which the cost of living is greater than the statewide average and eligible for a CDF grant if the LEA is located in a county for which the ratio between the county's non-governmental wages and the statewide non-governmental wages is greater than one (1), as calculated by the Boyd Center for Business and Economic Research (CBER) at the University of Tennessee.

(2) The Department shall calculate CDF grant amounts for eligible LEAs by using the following methodology:

(a) In each county with a CDF ratio greater than one (1), as determined annually by CBER, the Department will multiply the CDF ratio by the sum of the Base Funding Amount, weighted allocations, and direct funding TISA allocations generated by Students within the given county for a given school year. If the county includes multiple LEAs, then the total allocations of all components listed above for LEAs within the county will be summed and multiplied against the county's CDF.

(b) The Department shall total the resulting sums for all counties with a CDF above one (1) and divide each individual county's sum over the state total of eligible LEAs, generating a proportional share of the total state value.

(c) The Department shall then multiply the proportional share for each county by the total funding allocation available for CDF grants to determine the grant funding level for the county. If the county includes multiple LEAs, the county total will be distributed out to included LEAs proportional to each LEA's relative share of the total county funds used above.

(3) The Department shall calculate the amount of CDF grants annually based on CBER data, appropriations, and TISA allocations. Grants shall be disbursed in equal amounts ten (10) times throughout the funding year in alignment with the payments of TISA allocations. Grant amounts shall not be adjusted within the year of the award.

Authority: T.C.A. §§ 49-3-103(c), 49-3-108(d), 49-3-109, and 49-3-115.

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