Tennessee legislation · 114th General Assembly
Tennessee HB1516: AN ACT to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1 and Title 6, Chapter 56, Part 2, relative to municipal budgets.
Status: Chaptered, May 27, 2026
Fiscal Summary OTHER FISCAL IMPACT Based upon multiple unknown variables, any impact to local government cannot be determined with reasonable certainty. Bill Summary Present law provides that if for any reason a budget ordinance is not adopted prior to the beginning of the next fiscal year, then the appropriations for the last fiscal year becomes the appropriations for the next fiscal year, until the adoption of the new budget ordinance. This bill removes this provision and, instead, determines the budget as described below. If the municipal legislative body and the governing body of a local education agency LEA established by a municipality ("LEA") fail to agree upon a budget for the LEA by August 31 of any year, then, by operation of law, this bill provides that the budget for the LEA is equal to the minimum budget required to comply with the local match and maintenance of effort provisions of the TISA. However, if for three consecutive fiscal years the municipal legislative body and the governing body of the LEA fail to agree upon a budget and the LEA receives the minimum required funding for that fiscal year in accordance with these provisions, then the budget for the LEA for the third fiscal year must include a mandatory increase that is equivalent to 3% of the required funding from local sources for schools. However, this increase is not required if during any of the three consecutive fiscal years the governing body of the LEA failed to submit its budget proposal to the municipal legislative body by May 1. If a municipal legislative body has not adopted a budget by the first day of any fiscal year, and until a final operating budget is adopted, this bill generally provides that the operating budget for the fiscal year just ended and the appropriation ordinance for the fiscal year just ended continues in effect by op
What the bill says
An act to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1 and Title 6, Chapter 56, Part 2, relative to municipal budgets.
From the introduced text:
AN ACT to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1 and Title 6, Chapter 56, Part 2, relative to municipal budgets. SECTION 1. Tennessee Code Annotated, Title 6, Chapter 56, Part 1, is amended by adding the following as a new section: (a) This section applies to all municipalities that have established an LEA, as defined in § 49-1-103, pursuant to § 49-2-401. (b) If the municipal legislative body and the governing body of the LEA fail to agree upon a budget for the LEA by August 31 of any year, then, by operation of law, the budget for the LEA is equal to the minimum budget required to comply with the local match and maintenance of effort provisions of the TISA, as defined in § 49-3-104. However, if for three (3) consecutive fiscal years the municipal legislative body and the governing body of the LEA fail to agree upon a budget and the LEA receives the minimum required funding for that fiscal year in accordance with this subsection (b), then the budget for the LEA for the third fiscal year must include a mandatory increase that is equivalent to three percent (3%) of the required funding from local sources for schools; provided, however, that this increase is not required if during any of the three (3) …
Sponsors
- Moon, Jerome (R, 8) · primary sponsor
- Wright, Dave (R, 19)
Latest actions
- : Comp. became Pub. Ch. 1071
- : Comp. SB subst.
- : H. Placed on Regular Calendar for 4/20/2026
- : Placed on cal. Calendar & Rules Committee for 4/16/2026
- : Rec. for pass; ref to Calendar & Rules Committee
- : Placed on cal. Finance, Ways, and Means Committee for 4/15/2026
- : Rec for pass by s/c ref. to Finance, Ways, and Means Committee
- : Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/15/2026
- : Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
- : Placed behind the budget
Votes
- FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION (April 21, 2026): 91 yea, 0 nay, passed
- HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee (April 17, 2026): 13 yea, 0 nay, passed
- HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass; ref to Finance, Ways, and Means Committee (April 17, 2026): 26 yea, 0 nay, passed
- FLOOR VOTE: Motion to Adopt (February 12, 2026): 32 yea, 0 nay, passed
- HOUSE STATE & LOCAL GOVERNMENT COMMITTEE: Rec. for pass; ref to Finance, Ways, and Means Committee (February 11, 2026): 21 yea, 0 nay, passed
- HOUSE CITIES & COUNTIES SUBCOMMITTEE: Rec. for pass by s/c ref. to State & Local Government Committee (February 4, 2026): 7 yea, 0 nay, passed
Subjects: Archives, Publications, My Bills
Common questions
- What is HB1516?
- HB1516 is a bill in the Tennessee Legislature (114th General Assembly): AN ACT to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1 and Title 6, Chapter 56, Part 2, relative to municipal budgets.
- What does HB1516 do?
- In its own words: An act to amend Tennessee Code Annotated, Title 6, Chapter 56, Part 1 and Title 6, Chapter 56, Part 2, relative to municipal budgets.
- What is the status of HB1516?
- Chaptered as of May 27, 2026. Latest action: Comp. became Pub. Ch. 1071 (May 27, 2026).
- Who sponsored HB1516?
- Moon, Jerome (R, 8), with 1 co-sponsor.
- Where is the official record for HB1516?
- On the Tennessee Legislature website: https://wapp.capitol.tn.gov/apps/BillInfo/Default?BillNumber=HB1516&GA=114
Source: official Tennessee record. Tracked by Delilah, AI for legislation across all 50 states and Congress.