HUNTINGDON, Tenn. — State Sen. John Stevens outlined several pieces of legislation at his annual Capital Talk event Friday morning, March 13, including a measure concerning how local sales tax revenue is distributed to school districts with virtual school programs in Carroll County.
A light crowd attended the event at the Carroll County Civic Center in Huntingdon, due mostly to the Huntingdon Fillies competing in the TSSAA Class 2A basketball tournament.
Carroll County Chamber of Commerce hosted the event and held a ribbon-cutting ceremony for JM Well Service before Stevens spoke.
During his address, Stevens discussed Senate Bill 2188 (HB 2388) regarding the local option sales tax among Carroll County’s school districts.
Due to the success and enrollment of South Carroll’s statewide virtual school program, SB 2188 aims to prevent local sales tax dollars from being used for students who do not reside in Carroll County. South Carroll’s Director, Dr. Lisa Norris, has proposed collecting the sales tax from each student’s home county instead of not counting their virtual students at all.
For the other four Special School Districts in the county, time is of the essence. Collectively, they could see losses totaling hundreds of thousands of dollars if the legislation does not pass.
Stevens said that he met with the Tennessee Department of Education and legislative attorneys to draft an amendment to the bill that would restrict the state’s distribution and share of sales taxes to a formula that would only count students in the county or within the district.
He explained that South Carroll’s proposal to collect the sales tax from each student’s home county would effectively kill the bill since the current draft only affects Carroll County. Because of this, he is confident that it will pass and be enacted in July, as it is essentially a local bill now. SB 2188 will be on the Senate Education Committee calendar March 18.
Senate Bill 2247 aims to double the number of available scholarships within the Education Freedom Act. When asked about the long-term fiscal sustainability of the expansion, since he is the first Vice Chair of the Finance Ways and Means Committee, Stevens said the funding comes from one big pot and that the argument is invalid. He added that the state has put cost controls in place that differ from states like Arizona, so growth is controlled by the state completely.
“The argument people will take that scholarship funding takes away from local funding or public school funding doesn’t make any sense, because, in that argument, funding jails, prisons, and judge salaries would take away from local funding,” Sen. Stevens said.
Tennessee has guaranteed a permanent funding floor, meaning that even if enrollment in public schools decreases, their funding will not be lowered. If enrollment increases, districts will have the opportunity to increase that floor.
However, this can create funding disparities between districts with similar enrollment but different historical baselines.
This, added to how sales tax is affected by virtual school enrollment and TISA dollars not being adjusted for inflation, has increased tensions and prompted calls for immediate action.
Pharmacist Paul Motheral, owner of Motheral’s Super Drug in McKenzie, expressed concerns about prescription costs and Senate Bill 2040, which is primarily aimed at targeting the vertical integration of a pharmacy and a pharmacy benefit manager.
Curt Taylor, President of Carroll County Rescue Squad and employee with West Tennessee Public Utility District, thanked Stevens for his work over the last three years supporting the Rescue Squad, which allowed it to collect over $10 million in grants statewide. Taylor also thanked him for the support he gave on Senate Bill 1110, the Rescue Squad Recognition Act.
Stevens also spoke briefly about SB 2183, which is designed to stablize funding for the Tennessee Wildlife Resource Agency (TWRA) by redirecting 10% of the State’s Tennessee Valley Authority (TVA) payments in lieu of taxes into the agency’s wildlife resources fund. This would help reduce the TWRA’s need to increase hunting and fishing license fees to cover operations.
Hollow Rock-Bruceton Central High School student Oliver Bennett asked about opportunities for high school students to work directly with Sen. Stevens’ office.
Sen. Stevens then explained that he could serve as a page for the day or job shadow while he is still in high school. Internship opportunities are also available for college students.
Derek Horner, Vice President of Athletics at Bethel University spoke about the successes of their athletic programs. The men’s basketball team has traveled to Oklahoma while the women’s team is hosting the NAIA tournament’s first and second rounds for the second year in a row. The women’s team will be traveling to Talladega College in Talladega, Alabama.