Terms Used In Tennessee Code 49-3-324

  • Board: means the board of education of any LEA. See Tennessee Code 49-3-302
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
  • Year: means a calendar year, unless otherwise expressed. See Tennessee Code 1-3-105

In any fiscal year in which an LEA is unable to operate, or to continue to operate, transportation services with available funds, the LEA may request a loan from any county or municipal fund that has sufficient anticipated end of year fund balance to finance the loan during the fiscal year, or from the state, in an amount adequate to operate transportation services for the school year. The loan must be approved by the county legislative body if a county board of education makes the request, or the municipal legislative body if a municipal board of education makes the request, and the comptroller of the treasury or the comptroller’s designee, in either case. The loan shall be with interest at the formula rate pursuant to § 47-14-105. The loan, both principal and interest, shall be repaid from the school operating funds of the LEA in the next fiscal year. If the state makes the loan and principal and interest are not repaid by the end of the fiscal year in which repayment is due, then the state shall withhold the amount due from state-shared revenue that would otherwise be distributed to the county, municipality or special school district.