Education Funding

Cigarette-Tax Increase to Raise School Funds

By Lesli A. Maxwell — June 19, 2007 1 min read
  • Save to favorites
  • Print

The following offers highlights of the recent legislative sessions. Precollegiate enrollment figures are based on fall 2006 data reported by state officials for public elementary and secondary schools. The figures for precollegiate education spending do not include federal flow-through funds, unless noted.

Tennessee

Education initiatives dominated this year’s legislative session in Tennessee, keeping with an agenda outlined in January by Gov. Phil Bredesen to increase funding for public schools while demanding more accountability from them.

Gov. Phil Bredesen
Democrat
Senate:
16 Democrats
16 Republicans
1 Independent
House:
53 Democrats
46 Republicans
Enrollment:
921,000

A tripling of the state tax on cigarettes, approved by lawmakers this month, is expected to raise hundreds of millions of dollars for public education. Much of the revenue is to be spent at schools that serve high numbers of children deemed at risk of failure, such as English-language learners and low-income students. The 42-cent-per-pack increase, a priority for Gov. Bredesen, a Democrat, will boost the per-pack tax to 62 cents.

Lawmakers closed out the session last week with a vote to approve a $27.9 billion state budget for fiscal 2008. The spending document includes $25 million to expand Tennessee’s prekindergarten program for 4-year-olds by 250 classrooms statewide, bringing the total to nearly 800 classrooms.

The additional tax on cigarettes will pay for overhauling the state’s Basic Education Plan, the complex funding formula used to calculate the state and local shares for financing public schools. The new revenue will be used to help increase standards for student achievement, and provide for earlier interventions in schools that are failing to meet testing benchmarks. Some of the money also will be directed to fast-growing districts.

“We are raising the bar for education in Tennessee with these important reforms and the adoption of a funding source to sustain this progress,” the governor said in a statement.

The newly approved budget, which takes effect July 1, includes money to pay for a 3 percent pay raise for teachers around the state. Lawmakers also added $200 to student awards under the state’s lottery scholarship program, raising the award to $4,000 a year for four-year colleges and $2,000 a year for community colleges.

See Also

See other stories on education issues in Tennessee. See data on Tennessee’s public school system.

Related Tags:

A version of this article appeared in the June 20, 2007 edition of Education Week

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Stop the Drop: Turn Communication Into an Enrollment Booster
Turn everyday communication with families into powerful PR that builds trust, boosts reputation, and drives enrollment.
Content provided by TalkingPoints
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education Webinar
Integrating and Interpreting MTSS Data: How Districts Are Designing Systems That Identify Student Needs
Discover practical ways to organize MTSS data that enable timely, confident MTSS decisions, ensuring every student is seen and supported.
Content provided by Panorama Education
Artificial Intelligence Live Online Discussion A Seat at the Table: AI Could Be Your Thought Partner
How can educators prepare young people for an AI-powered workplace? Join our discussion on using AI as a cognitive companion.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Trump Slashed Billions for Education in 2025. See Our List of Affected Grants
We've tabulated the grant programs that have had awards terminated over the past year. See our list.
8 min read
Photo collage of 3 photos. Clockwise from left: Scarlett Rasmussen, 8, tosses a ball with other classmates underneath a play structure during recess at Parkside Elementary School on May 17, 2023, in Grants Pass, Ore. Chelsea Rasmussen has fought for more than a year for her daughter, Scarlett, to attend full days at Parkside. A proposed ban on transgender athletes playing female school sports in Utah would affect transgender girls like this 12-year-old swimmer seen at a pool in Utah on Feb. 22, 2021. A Morris-Union Jointure Commission student is seen playing a racing game in the e-sports lab at Morris-Union Jointure Commission in Warren, N.J., on Jan. 15, 2025.
Federal education grant terminations and disruptions during the Trump administration's first year touched programs training teachers, expanding social services in schools, bolstering school mental health services, and more. Affected grants were spread across more than a dozen federal agencies.
Clockwise from left: Lindsey Wasson; Michelle Gustafson for Education Week
Education Funding Rebuking Trump, Congress Moves to Maintain Most Federal Education Funding
Funding for key programs like Title I and IDEA are on track to remain level year over year.
8 min read
Photo collage of U.S. Capitol building and currency.
iStock
Education Funding In Trump's First Year, At Least $12 Billion in School Funding Disruptions
The administration's cuts to schools came through the Education Department and other agencies.
9 min read
Education Funding Schools Brace for Mid-Year Cuts as 'Big, Beautiful Bill' Changes Begin
State decisions on incorporating federal tax cuts into their own tax codes could strain school budgets.
7 min read
President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House on July 4, 2025, in Washington.
President Donald Trump signs his signature bill of tax breaks and spending cuts, the One Big Beautiful Bill Act, at the White House on July 4, 2025, in Washington. States are considering whether to incorporate the tax changes into their own tax codes, which will results in lower state revenue collections that could strain school budgets.
Evan Vucci/AP