Amends TCA Title 49.

This bill requires the state board of education to determine the percentage of any increase in funds appropriated to the instructional salaries and wages component of the basic education program (BEP) and increase the minimum salary on the state salary schedule by that percentage, as discussed below. Present law provides the following: (1) When funds are appropriated through the BEP funding formula for instructional salaries and wages, all such funds must be expended by an LEA on instructional salaries and wages; and (2) If an LEA's average licensed salary exceeds the statewide average salary, such funds may also be expended on instructional benefits. This bill deletes the provision described above in item (2) and adds the following: (A) The state board of education must determine the percentage of any increase in funds appropriated to the instructional salaries and wages component of the BEP for a fiscal year, as compared to the funds appropriated to the instructional salaries and wages component of the BEP for the immediately preceding fiscal year; and (B) The state board must increase the minimum salary on the state salary schedule by that percentage, if any. ON MAY 3, 2021, THE SENATE ADOPTED AMENDMENT #1 AND PASSED SENATE BILL 1338, AS AMENDED. AMENDMENT #2 retains present law that authorizes the expenditure of BEP funds that were appropriated for instructional salaries and wages when an LEA's average licensed salary exceeds the statewide average salary.