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Fiscal memos show initial plans and cost for universal school voucher bills

Tennessee Governor Bill Lee and House members filed legislation for a proposed school voucher program. It would provide public funds for private school tuition.

NASHVILLE, Tenn. — Fiscal memos 10News has reviewed from the Tennessee General Assembly outline the projected costs of two different school voucher proposals. 

Members of the House, the Senate and Tennessee Governor Bill Lee have filed separate universal school voucher bills. 10News has reviewed fiscal notes for the House and Governor Lee's proposal. 

Both fiscal memos said the "Education Freedom Scholarships," or school vouchers, would provide families with $7,075 per school year. The average private school tuition in Tennessee is $11,344, the fiscal note said, leaving families to make up the difference. 

"It is a choice," said Rep. Mark White (R-Shelby County), who sponsored the amendment in the House. "If the school they want to go to is more, then that's a choice they have to make."

The proposal in the Tennessee House would grant 20,000 scholarships in the first year, 24,000 in the second and 28,800 in the third. 

A fiscal analysis of the first three years showed it would cost the state $144 million in the first year, $177 million in the second and $219 million in extra funding in the third year. 

The House bill includes other changes to medical insurance for teachers, standardized assessments and teacher evaluations. 

"We're keeping school choice, as the governor has proposed, but also listened to some of the things that our public schools are saying," White said. 

Governor Lee's proposal would cost $144 million in the first year and $345 million in the years following, the fiscal analysis shows. That proposal doesn't have a limit to the eligible students in the years after the first. 

Earlier this month, seven district superintendents spoke with WBIR's John Becker about the state voucher proposal. Of the 7, none supported the idea. 

"They can say that's a different pot of money but we still get less dollars, because we're funded per student," said Dr. Mike Winstead, the Director of Schools in Maryville. 

Local school districts could miss out on $140 million in funding in the 2026-2027 school year under Gov. Lee's plan and $72 million by the 2026-2027 school year under the House plan. 

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